Your commercial news round-up: trade rules, tax cuts, TikTok music, HSBC fine

Reading time: three minutes

New EU trading rules cause concern and Jeremy Hunt falls short on plans to cut taxes in the spring. Plus, Universal Music has started to remove its songs from TikTok and HSBC faces a fine from the Bank of England. Find out more in this week’s commercial news round-up.

• Four years after Britain’s exit from the EU, new trade rules are set to be implemented on EU imports. These regulations have been in the works for a while and have been delayed five times. Checks will be carried out on all food, plant and animal imports. Currently, the main change is the introduction of “export health certificates” for “medium risk” animal products and plant products. Physical checks on meat will begin on 30 April, with fears that such checks will increase food prices for consumers. Currently, the UK imports 22% of its beef, 21% of its sheep meat and 49% of its pork. The British Meat Processors Association is concerned that “if the vets aren't able to sign off the documentation, consignments of meat may not even leave the factory, let alone get to a UK Border Control Post”.
   
• Jeremy Hunt has warned that there isn’t “scope for cutting taxes in the spring Budget”. Previously, he hinted that he was aiming to cut taxes in the spring, following cuts to National Insurance made in the autumn 2023. This announcement won’t come as a surprise to many, as last week, the Institute of Fiscal Studies (IFS) commented that the government needed an extra £1 billion to spend on the NHS, childcare and international aid. When asked about plans, Hunt explained that he’s awaiting the final numbers from the Office for Budget Responsibility (OBR). Recently, the chair of the OBR, Richard Hughes, criticised the government’s support, calling Hunt’s spending plans "a work of fiction", which "the government hasn't even bothered to write down". In response Hunt commented, “those words are wrong and they shouldn't have been said”.
   
• From politics to music: Universal Music has started removing millions of songs from TikTok from the 31 January 2024. Universal Music has stated that TikTok’s royalty payments are significantly less than what it receives from other social media sites. Therefore, when the contract expired at the end of January, users will no longer be able to access music from artists including Taylor Swift and Drake. Universal Muis said that it’s seeking "appropriate compensation for artists and songwriters" as well as protection “from the harmful effects of AI”.
   
• The Bank of England has fined HSBC for failing to protect customer deposits between 2015 and 2022. According to the bank's Prudential Regulation Authority (PRA), HSBC failed to accurately identify deposits eligible for Britain’s Financial Services Compensation Scheme (FSCS), which protects customer deposits up to the value of £85,000. The depositor protection rules state that banks must have systems in place to ensure financial information is correctly logged. However, HSBC Bank, which is a HSBC subsidiary, incorrectly marked 99% of its eligible beneficiary as ineligible for FSCS protection. Due to HSBC’s cooperation throughout the investigation, the fine was reduced from £96.5 million to £57.4 million. PRA Chief Executive Sam Woods said: "The serious failings in this case go to the heart of the PRA's safety and soundness objective. It’s vital that all banks comply fully with our requirements around preparedness for resolution.”

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