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Hundreds of millions of pounds of taxpayers’ money is at increased risk due to a failure to conduct sufficient checks on the now-collapsed finance firm that David Cameron lobbied for, a committee of MPs has found.

A a new report by the House of Commons’ Public Accounts Committee (PAC), on the lessons to be learned from the demise of Greensill Capital, the group of MPs have scrutinised a decision to allow the firm to be a lender under government-backed COVID support schemes.

The government-owned British Business Bank approved Greensill as a lender for both the Coronavirus Business Interruption Loan Scheme (CBILS), as well as the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Greensill loaned £400m under CLBILS, the maximum it was permitted to lend, and £18.5m under CBILS.

David Cameron and Lex Greensill on a trip to Saudi Arabia in January last year
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The ex-PM with the firm’s founder, Lex Greensill, on a trip to Saudi Arabia in January 2020

But in March this year, Greensill – who employed former prime minister Mr Cameron as an adviser – filed for insolvency.

In their report, the PAC found that “up to £335m of taxpayer money is at increased risk following the British Business Bank’s failure to conduct sufficient due diligence” into Greensill, when the firm applied to be an accredited lender under the COVID support schemes.

The MPs concluded that the Bank’s “approach to due diligence in accrediting Greensill was woefully inadequate” and criticised the Bank for striking the “wrong balance” between “making decisions quickly” during the pandemic and “protecting taxpayer interests”.

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“In the case of Greensill, the Bank was insufficiently curious about media reports questioning Greensill’s lending model, its over-exposure to borrowers, and ethical standards until problems were clear and hundreds of millions of taxpayers’ money left exposed,” their report added.

They also found that “a lack of information-sharing across government” had “once again hampered sound decision-making in government’s response to the pandemic and allowed Greensill access to taxpayer-funded schemes”.

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Cameron questioned over messages sent to ministers

The PAC also said the government had “not yet identified the broader lessons from its accreditation of Greensill or from its COVID-19 business support schemes” and added it was “essential that these lessons are identified”.

In further criticism of the Bank, the MPs said it had been “insufficiently curious when identifying where money lent through the schemes, including by Greensill, has ultimately gone”.

In a series of recommendations, the MPs called on the Bank to review its accreditation process, and for itself, the Treasury and the Department for Business, Energy and Industrial Strategy to publish a “full lessons-learned report” by July next year.

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Mr Cameron has been reported to have made about £7m during his two-and-a-half years’ part-time work for Greensill before its collapse, including a salary of £720,000 a year.

Earlier this year, the ex-prime minister was revealed to have bombarded ministers and officials – as well as the Bank of England – with WhatsApps, texts and emails in his pursuit of winning Greensill access to government-backed COVID support schemes.

Labour MP Dame Meg Hillier, chair of the PAC, said: “The British Business Bank only had to read the papers to be aware of serious questions about Greensill’s lending model, over-exposure to borrowers, and its ethical standards – yet it didn’t really start to delve into those issues until the problems were clear and hundreds of millions of taxpayers’ money was already at risk.

“It professed itself ‘very surprised’ to discover where these taxpayer-backed loans had gone on its watch, in contravention of its own lending and accreditation rules.”

A government spokesperson said: “The government was not involved in the decision to accredit Greensill.

“The decision was taken independently by the British Business Bank, in accordance with their usual procedures.”

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Vodafone internet services down for thousands of users

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Vodafone internet services down for thousands of users

Tens of thousands of Vodafone users are reporting problems with their internet

The outages began on Monday afternoon, according to the monitoring website DownDetector, which reported more than 130,000 issues with Vodafone connections.

A spokeswoman for the company said: “We are aware of a major issue on our network currently affecting broadband, 4G and 5G services.

“We appreciate our customers’ patience while we work to resolve this as soon as possible.”

The company has more than 18 million UK customers, with nearly 700,000 of those using Vodafone’s home broadband connection.

Vodafone users vented their frustration on social media.

“It’s like Vodafone has just been wiped off the earth. Not a single thing works,” said one X user.

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Vodafone users were shown an error message when trying to access the internet provider's app
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Vodafone users were shown an error message when trying to access the internet provider’s app

The Vodafone app also appeared to be down for users, with the company’s website briefly going down too.

The ‘network status checker’ on the website was also down, and when Sky News tried to test the customer helpline, it did not ring.

“There’s Vodafone down and then there’s Vodafone wiped off the face of the f***ing planet,” posted another X user.

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Jake Moore, global cybersecurity advisor at ESET, said the outage shows how reliant we are on modern infrastructure like mobile networks.

“Outages will always naturally raise early suspicions of a potential cyber incident, though current evidence points more towards an internal network failure than a confirmed attack,” said Mr Moore.

“The sudden outage, combined with the inability to access customer service lines, mirrors classic symptoms of a distributed denial-of-service (DDoS) attack, where attackers overwhelm the network so the site or systems collapse.

“However, malicious or not, this once again highlights our heavy reliance on digital infrastructure, especially in an age where we increasingly depend on mobile networks for everything,” he said.

“Ultimately, resilience is essential, whether the cause is a direct cyberattack, a supply chain issue or a critical internal error.”

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Lloyds estimates £1.95bn hit from motor finance scandal

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Lloyds estimates £1.95bn hit from motor finance scandal

Lloyds Banking Group has set aside a further £800m to cover estimated costs associated with the car finance mis-selling scandal.

The bank said the sum took its total provision to £1.95bn.

It had been assessing the impact since the Financial Conduct Authority (FCA) revealed last week it was consulting on a compensation scheme, with up to 14.2 million car finance agreements potentially eligible for payouts.

The regulator had previously found that many lenders failed to disclose commission paid to brokers, which could have led to customers paying more than they should have between April 2007 and November 2024.

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Eligible customers could receive an average of £700 each under the proposals.

Lloyds said on Monday that it would be contributing to the consultation to argue a number of points.

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It said: “The Group remains committed to ensuring customers receive appropriate redress where they suffered loss, however the Group does not believe that the proposed redress methodology outlined in the consultation document reflects the actual loss to the customer. Nor does it meet the objective of ensuring that consumers are compensated proportionately and reasonably where harm has been demonstrated.

“In addition, the approach to unfairness in the redress scheme does not align with the legal clarity provided by the recent Supreme Court judgment in Johnson, in which unfairness was assessed on a fact specific basis and against a non-exhaustive list of multiple factors. The Group will make representations to the FCA accordingly.”

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Shares in Lloyds, which fell last week when the bank warned of a potential “material” increase in its provisions, gained more than 0.5% on Monday.

The estimated compensation figure came in below the sum some financial analysts had predicted.

The shares remain more 50% up in the year to date.

Another listed lender exposed to car loan mis-selling is also expected to raise the amount it has set aside.

Close Brothers, which has a £165m provision currently, saw its shares tumble 7% when it admitted an increase was likely once its analysis of the compensation consultation documents was completed.

Car finance makes up approximately a quarter of its total loan book.

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Farming community responds to rumours of an inheritance tax U-turn

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Farming community responds to rumours of an inheritance tax U-turn

The budget may still be more than six weeks away, but rumours of U-turns and changes are already in full swing.

Over the last few days, there have been multiple reports that those inside Whitehall are considering tweaks to the controversial inheritance tax (IHT) reforms on farms announced this time last year.

Plans to introduce a 20% tax on estates worth more than £1m drew tens of thousands to protest in London, many fearing huge tax bills that would force small farms to sell up for good.

Now there are reports the tax threshold could be increased from £1m to £5m (£10m for a married couple) – a shift that would remove smaller farms from being liable to pay.

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From February: Farmers continue tax protest

Senior figures in farming have long believed a rise could be the solution to save the smaller farms and it would satisfy most.

However under the proposals, the 50% relief on IHT would be removed for farms above the new threshold.

That means bigger farms, responsible for producing a large amount of produce in our supermarkets, could bear the brunt of the tax burden with the Treasury potentially increasing revenues.

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Two senior farming figures told me today that while a threshold increase is welcome, it does nothing to solve an “insolvable” problem.

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Big farms have more land to sell, but then they become smaller farms and either produce less, or even divide up, to avoid the tax entirely.

Richard Cornock runs a small dairy farm in south Gloucestershire, which has been in his family since 1822.

Richard Cornock plans to pass his farm on to his son
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Richard Cornock plans to pass his farm on to his son


He hopes to pass it on to his son Harry, who is now 14 and training to become a farm manager.

“I’ve been under so much stress like most farmers worrying about this tax,” he said. “And I really hope they do push the boundaries on the thresholds, because the million pounds they propose at the moment is ridiculous.

“It’s been on my mind the whole time to be honest. I even looked into getting life insurance to insure my life and I can’t get it because I had a heart condition. And that was one way I thought I might be able to cover my kids…”

We paused our chat as he was too upset to continue – an illustration of the stress farmers like him have been under over the last 12 months.

Tens of thousands from the farming community took part in protests in London. Pic: Reuters
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Tens of thousands from the farming community took part in protests in London. Pic: Reuters

The government says it won’t comment on “speculation” about any possible changes, but it has previously defended the IHT reform, saying most estates would not pay and that those who will be liable can spread payments over a decade.

Labour is under pressure to do something to appease the angry farmers, a rural vote that turned from the Conservatives at the last election.

I ask Richard whether any tweak or row back on IHT will restore faith in Labour?

“The damage has been done,” he says.

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