Author: Whitestone Chambers

COVID 19 has caused a major change in the way people now handle money. Banks have had to transform their services to adapt to the new normal and many shops refuse cash payments altogether. The idea of a cashless society is not new but there has never been a more apt time to make the switch. Though it is unlikely cash will be phased out completely Whitestone predict that society will see a rise in the number of cashless payments being made. The pandemic has caused a shift in our attitudes towards cash with the WHO advising the public to use cashless/contactless methods to reduce the spread of the virus.[1] It is likely that these attitudes will “stick” long after the pandemic but is the world really prepared for a cashless society?

The benefits of going cashless have risen in the past 10 months with many believing that handling cash could increase the risk of transmission. The idea that money could be contaminated with the virus has led to consumers making the switch. Especially for the new plastic notes in the UK. Even before the pandemic, however, cashless payments were seen as a quick and efficient alternative to handling money. The only problem lies with security and potential fraud problems. As long as the public are using PINS and two-factor authentication methods then the risk posed remains low but the move towards contactless payment could change this. Physically entering your PIN on a card-reader holds a hygiene risk and in our new normal this will not keep up. This has led many to use contactless payment but this puts the user at a greater security risk. There is concern that contactless payment lacks the basic two-factor authentication to provide enough security to users. To combat both these concerns many card companies are looking into biometric technology to provide authorisation with a focus on hygiene. Visa is one of many companies that are trialling this technology by using biometric fingerprint cards that are fast and efficient.[2]

Despite the acceleration of cashless payments, it is unlikely cash will be phased out altogether anytime soon. Our world still is not ready for a cashless society with 1.3m people still unable to access a bank account.[3] Developed countries could probably make the transition but would still face opposition as consumer companies warn that the move could result in the marginalisation of certain groups. These could include those who are retired or low-income earners who have limited access to digital payments. COVID 19 might have changed the way we handle cash forever but it is unlikely that it will disappear. Morten Jorgensen, director of RBR, echoes a similar sentiment in his statement, “Cash is not going to disappear, but it will continue to decline, and Covid is accelerating that trend.”[4]

[1] https://www.pymnts.com/safety-and-security/2020/world-health-organization-cautions-against-cash-usage

[2] ttps://usa.visa.com/visa-everywhere/security/biometric-payment-card.html

[3] https://www.accesstocash.org.uk/media/1159/interim-report-final-web.pdf

[4] https://www.nytimes.com/2020/07/06/business/cashless-transactions.html 

© Whitestone Chambers

The Financial Conduct Authority (Appellant) v Arch Insurance (UK) Ltd and others; appeals to provide clarification over losses resulting from the COVID-19 pandemic.

Presided over by justices: Lord Reed (President), Lord Hodge (Deputy President), Lord Briggs, Lord Hamblen, Lord Leggatt. Judgment 15 January 2020.

Background to appeal:

The Financial Conduct Authority, (FCA), brought proceedings to court under the Financial Markets Test Case Scheme following an agreement made with eight insurance companies. The agreement set out to resolve issues of general importance on which immediately relevant English law was needed to aid guidance. The FCA proceeded to represent two policyholders with the main aim to use appeals to clarify whether a variety of insurance policy wordings cover or do not cover business interruption losses resulting from the COVID-19 pandemic and public health measures taken by UK authorities.

In response the court considered 21 sample insurance policy wordings and accepted most of FCA’S arguments about the effect of such wordings. However, not all of FCA’s appeals were accepted leading to six insurance companies appealing against the decision of the court on such matters and also responded to FCA’s appeal. Such companies included: (UK) Ltd (“Arch”), Argenta Syndicate Management Ltd (“Argenta”), Hiscox Insurance Company Ltd (“Hiscox”), MS Amlin Underwriting Ltd (“MS Amlin”), QBE UK Limited (“QBE”) and Royal & Sun Alliance Insurance Plc (“RSA”). The importance of the issues raised has led the appeals to proceed directly to the Supreme Court; bypassing the Court of Appeal.

The Supreme Court addressed the issues of appeals as follows:

1. The interpretation of “disease” clauses (which cover business interruption losses resulting from any occurrence of a notifiable disease within a specified distance of insured premises);

Ruling – Lord Hamblen and Lord Leggett accepted the insurers arguments that each case of illness sustained by a person as a result of COVID-19 is a separate “occurrence” and (ii) the clause only covers business interruption losses resulting from cases of disease which occur within the radius and that other disease clause wording should be interpreted in the same way.

2. The interpretation of “prevention of access” clauses (which cover business interruption losses resulting from public authority intervention preventing access to, or the use of, business premises) and “hybrid clauses” (which contain both disease and prevention of access elements) ;

Ruling: The Supreme Court rejected the court’s interpretation as to narrow and held that an instruction given by a public authority may amount to a restriction imposed if it carries the imminent threat of legal compulsion or is in mandatory and clear terms and indicates that compliance is required without recourse to legal powers. In relation to the Hiscox wording, which provided cover where business interruption loss is caused by the policy holder’s “inability to use” the insured premises, the Supreme Court agreed that inability rather than hindrance of use must be established but held that this requirement may be satisfied where a policyholder is unable to use the premised for a discrete business activity or is unable to use a discrete part of it’s premises for it’s business activities. The Supreme Court interpreters wording requiring “prevention of access” to the premises in a similar manner.

3. The question of what causal link must be shown between business interruption losses and the occurrence of a notifiable disease (or other insured peril specified in the relevant policy wording);

Ruling: It is sufficient for a policyholder to show that at the time of any Government measure there was at least one case of COVID-19 within the geographical area covered by the clause.

4. The effect of “trends” clauses (which prescribe a standard method of quantifying business interruption losses by comparing the performance of a business to an earlier period of trading)

Ruling: Held that these clauses should not be construed so as to take away cover provided by the insuring clauses and that the trends and circumstances for which the clauses require adjustments to be made do not include circumstances arising out of the same underlying or originating cause as the insured peril.

5. The significance in quantifying business interruption losses of effects of the pandemic on the business which occurred before the cover was triggered (“Pre-Trigger Losses”) .

Ruling: The Supreme Court rejected the court’s approach. In accordance with the interpretation of the trends clauses, adjustments should only be made to reflect circumstances affecting the business which are unconnected with COVID- 19.

 

A landmark ruling has taken place this month with two judges ruling in favour of free speech – even if it encompasses offensive language. The two judges, Lord Justice Bean and Mr Justice Warby, stated that, “freedom to speak only inoffensively is not worth having.” [1]The ruling comes at a time where being ‘woke’ and politically correct is upheld as a fundamental part of modern society. While being aware of social issues and misjustice is key to a democratic and fair society, the ruling does bring up the question of what actually constitutes free speech.

Lord Justice Bean and Mr Justice Warby’s ruling presided over the case of conservative mother, Katie Scottow, who had been brought to court after her offensive tweets regarding trans-woman, Stefanie Hayden. Scottow had originally been found guilty under the 2003 communications act for offensive and upsetting tweets aimed at Hayden that included the words, “pig in a wig,” and, “racist.” The previous ruling had been presided over by district judge Magaret Dodds, who at the time had handed Scottow a two-year conditional discharge and awarded £1000 compensation for the remarks. Now, 10 months later the charges have been overturned with Warby and Bean declaring that, “free speech encompasses the right to offend, and indeed to abuse another”.[2] Citing the 2003 communications act that Scottow had been charged on, the two judges decided that the relevant parts were not, “intended by Parliament to criminalise forms of expression, the content of which is no worse than annoying or inconvenient in nature.”[3]

The landmark ruling has turned the idea of free speech on its head, opening up questions about whether free speech should be able to encompass offensive language. It seems a balance has to be struck between remaining a liberal and democratic society, while also protecting the social rights of citizens. When asked about her thoughts on the ruling Scottow declared that, “it was necessary to enshrine one of the most fundamental rights of every living being in a democratic society.”[4] Stefanie Hayden, however, sees the ruling as a blow to the LGBTQ community, especially at a time where social equality is so needed.

[1] https://newsopener.com/uk/woke-folk-beware-freedom-of-speech-includes-the-right-to-offend-say-judges-in-landmark-ruling/

[2] https://newsopener.com/uk/woke-folk-beware-freedom-of-speech-includes-the-right-to-offend-say-judges-in-landmark-ruling/

[3] https://www.telegraph.co.uk/news/2020/12/17/exclusive-people-must-have-right-offend-without-facing-police/

[4] https://www.telegraph.co.uk/news/2020/12/17/exclusive-people-must-have-right-offend-without-facing-police/

© Whitestone Chambers

2020 has been a catastrophic year for airlines around the globe with major carriers being hit hard by the pandemic and subsequent lockdowns. This year has seen the Boeing’s 747 come to a close with many airlines retiring their fleets in the wake of the pandemic, as well as in a bid to fly greener aircraft. October 8^th marked British Airway’s last Boeing 747 flight and today Virgin Atlantic’s last 747 flight took off yesterday at 1pm. After its final flight, Virgin’s 747 will be retired to the North of America where it will join Atlas Air just as two of its sisters already have.

Marking the end of an era, the Boeing 747 has been an iconic aircraft for many carriers but it has a special history with Virgin. The airline has flown the 747 for 36 years, making it the company’s main form of passenger travel for over a decade. Aptly nicknamed, “Pretty Woman,” the 747 was the first of Virgin’s fleet to make the trip from Heathrow to New York 36 years ago and continues to remain a symbol of the skies. Virgin’s final flight with the 747 will give passengers an up-close and personal experience with a tour of the cabin, photos beside its iconic red engines and stories from some of the first 747 pilots. Though its retirement from Virgin’s fleet comes as a shock to many the airline is ready to look to the future, where cleaner travel is the aim. Corneel Coster, Chief Customer and Operating Officer at Virgin, commented on the airline’s future plans after the 747. “As the airline moves forward to a more sustainable fleet, Virgin Atlantic’s legion of 747s have now ceased operations in favour of cleaner, greener, twin engine aircraft, comprised of the Airbus A350-1000 and the Boeing 787-9 Dreamliner.  Each of these new planes is on average 30% more fuel efficient than the four-engine aircraft they replaced.”[1]

Coster’s announcement provides some celebration on the topic and the hope of a cleaner, greener future. Though this marks the end of an era with the 747, it also marks the beginning of a more fuel-efficient world where airlines start to take more responsibility for their contribution to global warming. One iconic chapter may be closing but it is just the start of Virgin’s greener future.

[1] https://corporate.virginatlantic.com/gb/en/media/press-releases/we-bid-farewell-to-our-iconic-boeing-747s.html

© Whitestone Chambers

A giant in the aerospace industry, Lockheed Martin’s plans for a spaceport in Scotland have been approved and will soon lead to the construction of a port in Shetland. The UK-based arm of the company plans to move its Pathfinder Launch operation to the Shetland site at Lamba Ness, the island of Unst. 2024 is the predicated date of completion and it is estimated that over 600 jobs could be created out of the move as well as a further 350 within Shetland. The spaceport is a promising move and will play an important role in the UK’s growing space sector. We explore what the move means for the UK’s role in the space industry as well as its impact on the prosperity of Britain.

The move of Pathfinder Launch to the Shetland site will greatly enhance the capabilities of Scottish space missions. Facilities under construction expect to enhance Scotland’s existing vertical launch capability including the creation of a vertical launch spaceport. The spaceport’s vertical design could enable rockets to carry up to 600kg satellites into space for orbit – all without passing over inhabited areas. Home to some of the world’s most innovative satellite manufacturers, Scotland already has a strong footing in the space industry, but this particular project could catapult the UK forward as a whole. The space race is still very much alive and with Britain up against countries like Norway and New Zealand, the new spaceport gives them an edge not only in future space missions but on a manufacturing level. Scotland is focused on the manufacture of small space satellites and this, coupled with its ability to host complementary spaceport launch sites in Sutherland and Shetland, places the UK in a strong position to become Europe’s leading small satellite launch destination.

Cementing the UK’s position as a leader in the space sector, Lockheed’s plans for expansion will also benefit Britain’s economy and community. The UK space market economy is expected to grow to £400 billion by 2030, aiding the government’s plan to grow space activities in the UK by 10%. This growth in space activities will have a knock-on effect on employment with the Shetland Centre anticipating 605 jobs to open up by 2024. The manufacturing and support services that underpin the move are also expected to create a further 150 jobs; all of which is a promising sign in our uncertain times. Iain Stewart, UK Government minister for Scotland, commented on the economic importance of the planned move stating, “our investment in Scottish spaceports is creating hundreds of secure and skilled jobs for people in Scotland.”[1]

The ambitious launch operation has already started to trigger a domino effect; both Space Hub Sutherland and Shetland Space Centre have attracted commercial interest. This has led to a greater commercial investment in Scotland’s spaceports as a whole, leading some companies like Orbex to take a keen interest. A British aerospace company, Orbex has already built a rocket design facility near Forres and Inverness and is expected to add a further 130 jobs to the space market.  With the first launch expected in 2022 with the Prime Rocket, this is only the start of Britain’s many developments within the space industry. A sentiment that is echoed by Nik Smith, UK county executive of Lockheed, who sees the project as an economic and scientific boost to Britain. “The transfer of our UK spaceflight operations to Shetland will not only broaden launch options available in the UK, but also ensure the economic benefits of these endeavours are felt more widely.

https://www.wired-gov.net/wg/news.nsf/articles/UK+Space+Agency+Shetland+spaceport+boosts+UKs+plans+for+launch+22102020134300?open

https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-54634943#:~:text=Lockheed%20Martin%20plans%20to%20launch,by%20the%20UK%20Space%20Agency

 

 

© Whitestone Chambers

Ahead of its PlayStation 5 release on November 12^th, Sony have updated the PS4 with a new theme. Centred around the BLM (Black Lives Matter) movement the theme is sleek and simple; gold lines run across the black screen with a fist and the words, Black Lives Matter. Free to download from the PlayStation store, the design delivers a clear message and hits home. 2020 has seen increasing levels of police brutality against black communities and on the 25^th May it all came to a head with the death of George Floyd. Sparking outrage among many, the death made the BLM movement better known and triggered a series of worldwide protests. Sony’s new theme speaks up for the movement and is a move that has signalled many others’ to do the same. It is not enough for companies to be silent – there must be clear support and vocalisation for BLM and communities that are attacked.

Sony’s new theme signals a need for companies to be more vocal about their ideals. The theme is only a small part of their involvement for BLM and they regularly show support for the movement across their social media platforms. In May Sony tweeted, “being silent about the violence and racism black people experience is being complicit. We stand in solidarity today and everyday with the black community.”[1] Their loud voice in the movement has created a wave with others’ in the gaming community including EA Games, Nintendo and Microsoft who have all shown their support. Sony have shown that using their platform to promote BLM and equality for all has a significant impact on the community and if companies around the globe would do the same – it could lead to big change.

The new BLM’S theme comes in preparation for their unveiling of PS5 in November. Users can expect a brand-new subscription feature called Game Help that will provide them with tips and tricks on what they are playing. The PS5 will be available in both the standard and digital edition and will cost between £300 to £400.

[1] https://www.givemesport.com/1609805-playstation-4-sony-release-new-black-lives-matter-theme-ahead-of-ps5-launch

© Whitestone Chambers

In a bid to instill confidence in passengers Heathrow Airport has deployed UV cleaning robots across its site. With travel corridor exemptions opening up the possibility of increased travel the airport wants to make sure passengers feel as safe as possible when using their services. A carefully thought-out plan has been constructed by the airport that combines stringent cleaning measures with technology to minimise the risk of COVID 19.

A spokesperson for Heathrow commented on how the robots would operate with ultraviolet rays being used to, “efficiently kill all viruses and bacteria.” [1] The number of robots set to be deployed is yet to be revealed but it’s thought they will operate in every section of the airport. The company has also introduced a wide range of cleaning measures to ensure passenger safety and reduce the risk of transmission. UV handrail technology will be deployed on all escalators and will act as a continuous disinfection system for hands. Services that are likely to be touched including door handles, trolleys and lift-buttons will all be fitted with self-cleaning antiviral wraps. To raise awareness of COVID 19 protocols the airport has also formed teams of hygiene-technicians who will be on hand to answer any questions and disinfect services. These teams will be responsible for providing feedback on the new measures being rolled out and the effect they have on passengers.

With travel set to increase Heathrow is determined to provide a safe environment for its colleagues and customers and the measures are effective immediately. While some countries are still excluded from the corridor exemption list the airport is looking to the future when travel fully resumes.

© Whitestone Chambers

[1]https://www.businesstraveller.com/business-travel/2020/07/15/heathrow-airport-deploys-cleaning-robots-to-kill-viruses/

The world has seen a sweeping change in the way we interact with one another and go about our daily activities. Since June 15th face coverings have been made mandatory on all public transport and this measure is soon set to evolve. With Britain opening up again, the government has announced that face coverings will be mandatory in all shops from the 24th July. The measure comes into force with the hopes of instilling more confidence and security in high-street shoppers and preventing a potential second wave.

Germany, Spain and Italy have already enforced such rules and the UK looks set to follow suit. The police will be working in conjunction with the government to enforce the guidance and ensure compliance. Those who refuse to wear a mask without a reasonable excuse can face a fine of up to £100 however there are exemptions. As on transport children under 11 and people with disabilities will not be required to wear coverings in shops. An updated and complete list of those exempt can be found on the government website.[1] Though the rule will help be enforced by police there is a need for general compliance and the public are expected to do their part.

With the 24th July more than a week away the PM and government are facing criticism over their delayed response to the use of coverings in shops. After guidance was issued that masks should be worn in crowded and public places, many have criticised the government for not taking action soon enough. Jonathan Ashworth, shadow health secretary, highlighted the need for faster and more decisive action from the government in a statement. “Many will ask why yet again have ministers been slow in making a decision in this pandemic”.[2] There is also concern over how the public will respond to the new measure. Though nearly half of Britain have reported wearing a mask in July[3] there are still those who find the measures to be an infringement on freedom and face coverings to be uncomfortable. Far from the government’s hope of getting more people back to the high-street, the measure could potentially see a decrease in customers with online shopping a much more comfortable option. Some have also seen the enforcement as a recognition of the danger of the virus and feel less inclined to go out and shop than they used to.

With the potential of a second wave looming the measure doesn’t seem unreasonable. We as a society are starting to adapt to a new normal and it’s only by doing this that we will be able to move forward and kickstart the economy again.

© Whitestone Chambers

https://www.gov.uk/government/publications/staying-safe-outside-your-home/staying-safe-outside-your-home

https://www.bbc.co.uk/news/uk-politics-53397617

https://www.bbc.co.uk/news/uk-53363032

 

Airbus has long been an advocate of using cleaner fuel in the aviation industry. During April the company was set to trial a jet run by hybrid electric engines but the plan was stopped early by the COVID crisis. With many airlines facing economic damage and a cut in employees the French government have introduced a plan to safeguard the aviation industry and have already provided €15bn to the sector.[1] As part of the deal the government wants to see more environmentally friendly jets being created. Biofuels and hydrogen are the current consideration but companies like Airbus are also looking into electric powered flights. The government’s goal is to have a fully carbon-neutral aircraft by 2035 alongside an electric powered jet by 2029.

CEO Guillaume Faury responded positively to the scheme and is set to deploy new technologies to meet the goal. Insisting that Airbus is, “committed to developing sustainable flight,”[2] Faury sees hydrogen as one of the most viable options for the company to work with. Creating fleets powered entirely by biofuels, however, is not an easy task. Despite Faury’s claims that hydrogen is, “one of the most promising technologies available,”[3] there are still concerns over hydrogen’s power in aviation. Though its power to weight ratio makes it a better option than electric-power, there is concern that redesigning aircrafts for this reason will make it infeasible for long-haul flights. AN EU backed study [4] also concluded that hydrogen alone will have little impact on decarbonisation efforts unless paired with new technologies across fleets.

Air travel accounts for up to 2.4%[5] of CO2 emissions globally and though COVID 19 has caused a temporary decrease in air traffic this is likely to rise. With travel corridor exemptions being reduced more and more people are going to start travelling again. Lockdown was only a temporary respite from carbon emissions and it is only with cleaner fuel options that we can reduce these emissions consistently.

© 2020 Whitestone Chambers

[1] https://www.euractiv.com/section/aerospace/news/airbus-ponders-hydrogens-flying-future/

[2] https://www.euractiv.com/section/aerospace/news/airbus-ponders-hydrogens-flying-future/

[3] https://www.euractiv.com/section/aerospace/news/airbus-ponders-hydrogens-flying-future/

[4]https://www.euractiv.com/wp-content/uploads/sites/2/2020/06/20200507_Hydrogen-Powered-  Aviation-report_FINAL-web-ID-8706035.pdf

[5]https://www.eesi.org/papers/view/fact-sheet-the-growth-in-greenhouse-gas-emissions-from-commercial-aviation#:~:text=EPA%20reports%20that%20aircraft%20contribute,total%20CO2%20emissions%20in%202018.