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Kwasi Kwarteng, the business secretary, has ordered officials to launch a national security probe into the £2.6bn takeover of Ultra Electronics, a key supplier of military technology, by Cobham, the former London-listed defence group.

Sky News has learnt that Mr Kwarteng has told civil servants at the Department for Business, Energy and Industrial Strategy (BEIS) to monitor the proposed deal under the Enterprise Act.

The move comes days after Ultra said it was “minded to recommend” a £35.16-a-share offer from Cobham, which has been controversially owned since last year by the US-based private equity firm Advent International.

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A source said business secretary Kwasi Kwarteng is taking an active interest

Whitehall insiders said on Monday that a formal decision to intervene had not yet been taken, and that any enhanced review of the tie-up could take several months to complete.

A source close to Mr Kwarteng said: “Given the sensitivities of this proposed deal, the Business Secretary is taking an active interest.

“While no decisions have been taken, we’ll continue to monitor the transaction closely.”

The bid from Cobham has triggered protests because of its approach to breaking up and selling off parts of the group adopted by Advent since the takeover was concluded.

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Spokespeople for Advent insisted at the time of the deal that a break-up was not on the cards, but various assets have already been sold.

Ultra undertakes highly sensitive work such as the provision of advanced submarine-hunting sonar, and supplies military programmes including Typhoon fighter jets.

An Italian Air Force Eurofighter Typhoon fighter patrols over the Baltics during a NATO air policing mission from Zokniai air base near Siauliai February 10, 2015. Both Ultra Electronics and Cobham have technologies used in the Eurofighter Typhoon jet. REUTERS/Ints Kalnins/File Photo
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Ultra Electronics and Cobham both have technologies used in the Eurofighter Typhoon

The company is a FTSE-250 supplier of systems and components to both civil and defence customers, employing approximately 1700 people in the UK.

Cobham has until August 20 to formalise its bid for Ultra, which is now regarded as inevitable.

The government’s new National Security and Investment regime comes into force on 4 January next year, meaning that any national security review of the Ultra deal prior to that date would take place under existing Enterprise Act powers.

Under the Enterprise Act 2002, the business secretary has quasi-judicial powers to intervene in takeover deals on national security grounds.

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Post Office lawyer ‘takes no pride’ working for the company

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Post Office lawyer 'takes no pride' working for the company

A lawyer for the Post Office at the height of the Horizon IT scandal has told the public inquiry he feels “no pride” to be employed by the company.

Rodric Williams, a civil law specialist who joined the organisation in 2012, told the hearing he was “truly sorry” for being associated with the “greatest miscarriage of justice we’ve seen”.

A first day of evidence for the New Zealand national, now among three legal leads at the Post Office, saw Mr Williams admit a “bunker mentality” among staff in relation to the media’s coverage of the faulty Horizon IT system.

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In his second day, Mr Williams was pressed on what he knew about the Post Office’s ex-head of security John Scott allegedly shredding minutes from a meeting concerning Horizon bugs.

The inquiry heard the Post Office feared sub-postmasters who had been convicted of offences jumping on a “bandwagon” and challenging their convictions if damaging documents surfaced as part of the mediation process.

The word came as part of a 2013 meeting between the Post Office’s in-house and external lawyers, which read: “It was widely agreed that there was likely to be a ‘bandwagon’ approach in relation to defendants challenging their previous convictions.”

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Mr Williams was also accused of knowing “perfectly well” that the Post Office had “relied on a liar and a perjurer to convict innocent people” following expert evidence provided by leading Horizon engineer Gareth Jenkins in the trial of sub-postmistress Seema Misra.

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Seema Misra: It still gives me nightmares

She was suspended from her branch in 2008 and handed a 15-month prison sentence, while eight weeks pregnant, in November 2010 after being accused of stealing £74,000.

The inquiry heard how the Post Office received advice from external barrister Simon Clarke in 2013 suggesting an expert witness, Mr Jenkins, and the Post Office had “breached their duties” to the court, and subsequent advice suggested meeting minutes talking about Horizon bugs had been shredded.

Questioned on his views on the wrongful conviction of Mrs Misra, Mr Williams told the inquiry: “I take no pride, comfort or confidence in having worked for an employer that has engaged in conducting the greatest miscarriage of justice that we’ve seen, or however it has been described.

“I don’t know where to go with this – it’s awful that people with convictions had them, and had them for the length of time that they did.

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Review into Post Office system

“And for my part in that, I’m truly sorry that I’ve been associated with this. I’m truly sorry for that.”

Chairman Sir Wyn Williams interjected: “I think the point, Mr Williams, is at a moment in time, namely 2014, when on any sensible reading of Mr Clarke’s advice from July 2013, there was a problem about Mr Jenkins’s evidence, the Post Office and you personally appeared to still be asserting to the world that the conviction was safe, amongst other things, because expert evidence had been called and the jury, by inference, must have accepted it.

“Those two things don’t sit very easily together, do they?”

Rodric Williams gives evidence to the inquiry. Pic: POHI
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Rodric Williams also gave evidence on Thursday. Pic: POHI

Mr Williams replied: “No, they don’t, sir. No, they don’t.”

Addressing the destruction of meeting minutes in advice given to the organisation, Mr Clarke had written: “An instruction was then given that those emails and minutes should be, and have been, destroyed: the word ‘shredded’ was conveyed to me.”

Counsel to the inquiry Jason Beer KC asked: “Presumably you were quite shocked to read it?”

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Ex-Post Office boss under fire

The Post Office lawyer replied: “Yes.”

Mr Beer later asked: “What steps did you take to ensure that it was investigated in any way whatsoever?”

After the witness said he did not recall, the counsel to the inquiry continued: “Is the answer none?”

Mr Williams replied: “I can’t remember what happened at that time 11 years ago – so what I felt needed to be done or should be done I can’t recall now.”

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Following an interjection by chairman Sir Wyn Williams urging him to answer the question, Mr Beer continued: “Should the serious or very serious matters raised in Mr Clarke’s advice have been investigated by the Post Office?”

The witness said: “Yes.”

Asked if consideration was given to reporting the matter to the police, Mr Williams said: “I don’t believe so, no.”

Mr Beer continued: “Would you have been concerned if you found out that it was said to be the head of security that had given an instruction to shred documents?”

Mr Williams replied: “Yes.”

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Rishi Sunak pledges to remove benefits for people not taking jobs after 12 months

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Rishi Sunak pledges to remove benefits for people not taking jobs after 12 months

People who are fit to work but do not accept job offers will have their benefits taken away after 12 months, the prime minister has pledged.

Outlining his plans to reform the welfare system if the Conservatives win the next general election, Rishi Sunak said “unemployment support should be a safety net, never a choice” as he promised to “make sure that hard work is always rewarded”.

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Mr Sunak said his government would be “more ambitious about helping people back to work and more honest about the risk of over-medicalising the everyday challenges and worries of life” by introducing a raft of measures in the next parliament. They include:

• Removing benefits after 12 months for those deemed fit for work but who do not comply with conditions set by their work coach – such as accepting a job offer

• Tightening the work capability assessment so those with less severe conditions will be expected to seek employment

• A review of the fit note system to focus on what someone can do, to be carried out by independent assessors rather than GPs

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• Changes to the rules so someone working less than half of a full-time week will have to look for more work

• A consultation on PIP to look at eligibility changes and targeted support – such as offering talking therapies instead of cash payments

• The introduction of a new fraud bill to treat benefit fraud like tax fraud, with new powers to make seizures and arrests.

He insisted the changes were not about making the benefits system “less generous”, adding: “I’m not prepared to balance the books on the backs of the most vulnerable.

“Instead, the critical questions are about eligibility, about who should be entitled to support and what kind of supports best matches their needs.”

But Labour said it was the Tories’ handling of the NHS that had left people “locked out” of work, and a disabled charity called the measures “dangerous”.

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The latest data from the Office for National Statistics (ONS) shows 9.4 million people aged between 16 and 64 were “economically inactive”, with over 2.8 million citing long-term sickness as the reason.

Mr Sunak said 850,000 of them had been signed off since the COVID pandemic and half of those on long-term sickness said they had depression, with the biggest growth area being young people.

He also claimed the total being spent on benefits for people of working age with a disability or health condition had increased by almost two-thirds since the pandemic to £69bn – more than the entire budget for schools or policing.

“I will never dismiss or downplay the illnesses people have,” said the prime minister. “Anyone who has suffered mental ill health or had family and friends who have know these conditions are real and they matter.

“But just as it would be wrong to dismiss this growing trend, so it would be wrong to merely sit back and accept it because it’s too hard, too controversial, or for fear of causing offence.”

Rishi Sunak during his speech welfare reform.
Pic: PA
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Rishi Sunak during his speech on welfare reform. Pic: PA

The prime minister said he knew critics would accuse him of “lacking compassion”, but he insisted “the exact opposite is true”, adding: “There is nothing compassionate about leaving a generation of young people to sit in the dark before a flickering screen, watching as their dreams slip further from reach every passing day.

“And there is nothing fair about expecting taxpayers to support those who could work but choose not to.

“It doesn’t have to be like this. We can change. We must change.”

But Labour said the “root cause of economic activity” was down to the Tories’ failure on the health service, with record NHS waiting lists hitting people’s ability to get back in the workplace.

Acting shadow work and pensions secretary Alison McGovern said: “After 14 years of Tory misery, Rishi Sunak has set out his failed government’s appalling record for Britain: a record number of people locked out of work due to long-term sickness and an unsustainable spiralling benefits bill.

“Rather than a proper plan to get Britain working, all we heard today were sweeping questions and reheated proposals without any concrete answers.”

Liberal Democrat leader Sir Ed Davey called it “a desperate speech from a prime minister mired in sleaze and scandal”, adding: “Rishi Sunak is attempting to blame the British people for his own government’s failures on the economy and the NHS and it simply won’t wash.”

Meanwhile, disability charity Scope said the measures were a “full-on assault on disabled people”, adding they were “dangerous and risk leaving disabled people destitute”.

James Taylor, director of strategy at the charity, said calls were already “pouring in” to their helpline with people concerned about the impact on them, adding: “Sanctions and ending claims will only heap more misery on people at the sharp end of our cost of living crisis.”

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Tesla recalls thousands of Cybertrucks over jammed accelerator issue

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Tesla recalls thousands of Cybertrucks over jammed accelerator issue

Tesla has recalled more than 3,800 of its Cybertruck models following complaints that the accelerator pedal is at risk of getting stuck, US regulators have announced.

The National Highway Traffic Safety Administration (NHTSA) had contacted the carmaker, founded and run by Elon Musk, about the issue earlier in the week.

That was after a video came to light, on the billionaire entrepreneur’s X platform and TikTok, showing how a rubber cover attached to the accelerator could come loose, pinning the pedal down.

It has since been watched millions of times on both platforms.

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The interior of the Cybertruck. Pic: Tesla
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The interior of a Cybertruck. Pic: Tesla

Tesla was widely reported to have temporarily halted sales and deliveries after being contacted by the NHTSA.

The regulator said a total of 3,878 Cybertrucks were affected by the recall.

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Tesla started deliveries of its Cybertruck electric pickup truck late last year, after a two-year delay due to production problems and battery-supply constraints.

The EV maker will replace or repair the accelerator pedal assembly at no charge and owners will be notified through letters mailed to them in June, the NHTSA said.

Cybertruck owner Jose Martinez told Sky’s US partner network NBC News how he was driving his new Cybertruck of just six days on his local drag strip in southern California when the car started accelerating on its own.

He said: “The moment I let go of the brake, it would lurch forward at full throttle again.

“I had space where I could figure out what was going on. It wasn’t a situation where there were cars in front of me or a building or a tree.”

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He later filmed the video which went viral, to demonstrate the issue and said he had performed a temporary fix by simply removing the rubber cover on the pedal.

“Other than this, it’s a pretty solidly built car,” Martinez continued.

“I know saying ‘other than this’ makes it sound like it’s not major, and it is.”

“Because it is such a massive car, and it’s got such a great amount of power, I do feel like things in regard to safety definitely need to be a priority in getting it addressed and fixed,” he added.

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