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The CBI has suspended all activity until June after major companies terminated their membership or suspended collaboration due to the scandal engulfing the business lobby group.

The rush for the exit door came after the Guardian newspaper reported that a second woman had made a rape allegation – against two male CBI co-workers – building on the series of historic serious misconduct claims to have engulfed the body in recent weeks.

Meta, John Lewis, NatWest, BT, BMW, ITV and Unilever were among the big names to take action.

Which businesses have quit or suspended membership of the CBI?

After a day of chaos, the CBI announced late on Friday that it would suspend all policy and membership activity until an extraordinary general meeting in June when they would put forward proposals to restructure the organisation.

“The CBI shares the shock and revulsion at the events that have taken place in our organisation, and at past failures that allowed these events to happen,” the group said in a statement.

“We are deeply sorry and express our profound regret to the women who have endured these horrific experiences,” they added.

Membership exodus

It came at the end of a bruising day which saw dozens of firms from across all sectors of business and industry pull their support from the group.

Banking giant NatWest Group said: “Following careful consideration, and having previously paused all activity, NatWest Group has today withdrawn its membership of the CBI with immediate effect.”

A spokesperson for Facebook owner Meta also confirmed that they had paused engagement with the CBI while the investigation is ongoing.

BT Group said: “In light of the appalling allegations made, BT Group has decided to suspend its membership of the CBI with immediate effect.”

CBI Statement in full

The CBI shares the shock and revulsion at the events that have taken place in our organisation, and at past failures that allowed these events to happen. We are deeply sorry and express our profound regret to the women who have endured these horrific experiences.

We have listened carefully to what our colleagues, members and stakeholders have said over recent days and weeks. We have heard loud and clear a demand for far reaching change.

We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose. As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an Extraordinary General Meeting (EGM) in June.

At the EGM we will put forward proposals for a refocused CBI to our membership for them to decide on the future role and purpose of the organisation. This work and the cultural reform will be the entire and urgent focus of the organisation over the coming weeks.

Our members have told us in recent days and weeks that they believe in the importance of a collective voice to inform national policy and the unique role that an organisation like the CBI can play in public life. But much needs to change if we are to win back their trust so we may continue to represent business at this critical time for the country.

We are taking steps to address our failings but recognise these are not yet sufficient to sustain the confidence of our colleagues, members and of the broader business community. We know it will take time to rebuild trust in our purpose and culture. And to give our team and former colleagues the space to heal.

Carmaker BMW joined the exodus late on Friday, saying they were “concerned by the allegations relating to the CBI. The Group has therefore decided to terminate its membership with immediate effect”.

They were joined by Rolls-Royce, who said: “In light of the recent allegations, which are deeply concerning, we are suspending all interaction with the CBI with immediate effect.”

A spokesperson for ITV told Sky News that the broadcaster “will pause engagement with the CBI with immediate effect and will not renew our contract with them”.

Unilever also confirmed that they were severing ties, saying: “Due to the very serious and ongoing allegations, we can confirm that we have suspended our membership of the CBI.”

The John Lewis Partnership had earlier cited “further very serious and ongoing allegations” as the reason for quitting the organisation.

It’s not exaggerating to call this an existential crisis for the CBI


Sky News Author Ian King Business Presenter

Ian King

Business presenter

@iankingsky

If one were to compile a list of some of the most prestigious blue-chip UK employers, it would probably include NatWest, BP, Shell, Aviva, the John Lewis Partnership, Virgin Media O2, WPP, Phoenix Group, BT, PwC, EY, Schroders and AstraZeneca.

Were that list to be enhanced with prestigious foreign-owned businesses that are major employers in the UK, and which enjoy a meaningful UK presence, it would probably extend to take in names such as BMW, Mastercard, Ford, Fidelity, Jaguar Land Rover and JP Morgan.

That underlines the crisis now engulfing the CBI. All of those companies have either paused their engagement with the employers organisation or cancelled their membership altogether in the wake of the latest allegations consuming the CBI.

It was bad enough that the CBI felt obliged to dismiss its former director-general, Tony Danker, amid allegations of workplace misconduct.

What made it worse was a report in The Guardian, the newspaper that first published details of the allegations against Mr Danker, that a former CBI employee had filed a complaint that she was raped at a party hosted by the organisation back in 2019.

That has now been made worse still by a second woman coming forward to say she had been raped by colleagues while working for the CBI.

It is not now over-exaggerating to say that this has become an existential crisis for the CBI.

Read the full analysis here

Insurers start the flight

Insurer Aviva was first to reveal its hand on Friday, just moments after Sky News reported that abrdn, the FTSE 100 fund manager, was also considering its position with the organisation.

Fellow insurers Phoenix Group and Zurich swelled the exodus alongside the industry body the ABI while Virgin Media O2 also confirmed it had terminated its membership.

Asda, accountancy giant PwC and National Grid later confirmed they had suspended all activity with the business lobby group while Lloyds Banking Group was also understood to have done the same.

An AstraZeneca spokesperson said: “Following these grave allegations, we have decided to pause our engagements with the CBI while these are investigated.”

“In light of the very serious allegations made, and the CBI‘s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK,” Aviva said.

“We have therefore regrettably terminated our membership with immediate effect.”

CBI president Brian McBride had previously admitted that a “handful” of its 190,000 members had departed since the crisis began.

Brian McBride
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Brian McBride was elected president of the CBI in June last year

They are known to have included, before Friday, the British Insurance Brokers’ Association.

Shell is understood to have suspended dealings with the CBI last week.

The potential departure of abrdn would be acutely embarrassing for Mr McBride personally as he currently serves as a non-executive director at the firm.

Sky’s City editor Mark Kleinman reported that the board had been debating whether to terminate its status as a CBI member once a CBI-commissioned review of sexual abuse allegations against staff members had been completed.

A source said that alternatively it could decide not to renew its membership when it expires at the end of this year.

A string of blue-chip companies, including Rolls-Royce and Marks & Spencer, have raised public concerns about the crisis.

Last week, the CBI sacked Tony Danker, its director general, after saying it had lost confidence in his ability to lead the organisation amid claims about his personal conduct.

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Tony Danker was sacked on 11 April

Mr Danker told the BBC this week he had been “thrown under the bus” and said the allegations against him did not merit his dismissal.

He also apologised for making a number of CBI employees “uncomfortable”.

Business leaders have lined up in recent weeks to denounce its handling of the crisis, saying it had been too slow to apologise and had erred by appointing an insider, Rain Newton-Smith, as Mr Danker’s successor.

Three employees have been suspended, while a police investigation is under way.

The CBI said this week that the second phase of an inquiry by the law firm Fox Williams would conclude imminently.

“The board will be communicating its response to this and other steps we are taking to bring about the wider change that is needed early next week,” the group said on Thursday.

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Met Police release footage as more than 1,000 arrests made using live facial recognition technology

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Met Police release footage as more than 1,000 arrests made using live facial recognition technology

More than 1,000 criminals, including a paedophile found with a six-year-old girl, have been arrested by the Metropolitan Police using live facial recognition (LFR) cameras.

David Cheneler, 73, was among 93 registered sex offenders held by Met officers using the controversial technology since the start of last year.

He was discovered with the girl after he was identified by a camera on a police van in Camberwell, south London, in January.

Cheneler, from Lewisham, was jailed for two years in May after admitting breaching his sexual harm prevention order by being with a child under the age of 14.

The Met said a total of 1,035 arrests have been made using live facial recognition technology – where live footage is recorded of people as they walk past, capturing their faces, which are then compared against a database of wanted offenders.

If a match is determined, the system creates an alert which is assessed by an officer, who may decide to speak to the person.

They include more than 100 people alleged to have been involved in serious violence against women and girls (VAWG) offences such as strangulation, stalking, domestic abuse, and rape.

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Adenola Akindutire admitted charges including robbery. Pic: Met Police
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Adenola Akindutire admitted charges including robbery. Pic: Met Police

Adenola Akindutire was stopped during an operation in Stratford and arrested over the machete robbery of a Rolex watch, which left the victim with life-changing injuries after the attack in Hayes, west London.

Police said the 22-year-old, who was linked to a similar incident and had been released on bail, was in possession of a false passport and could have evaded arrest if it wasn’t for the technology.

Akindutire, of no fixed address, admitted charges including robbery, attempted robbery, grievous bodily harm, possession of a false identity document and two counts of possession of a bladed article and faces sentencing at Isleworth Crown Court.

 Darren Dubarry was stopped on his bike. Pic: Met Police
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Darren Dubarry was stopped on his bike. Pic: Met Police

Darren Dubarry was caught with stolen designer clothes. Pic: Met Police
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Dubarry was caught with stolen designer clothes. Pic: Met Police

Darren Dubarry, 50, was already wanted for theft when he was caught with stolen designer clothing in Dalston, east London, after riding past an LFR camera on his bike.

The 50-year-old, from Stratford, east London, was fined after pleading guilty to handling stolen goods.

Lindsey Chiswick, the Met’s LFR lead, hailed the 1,000 arrest milestone as “a demonstration of how cutting-edge technology can make London safer by removing dangerous offenders from our streets”.

“Live Facial Recognition is a powerful tool, which is helping us deliver justice for victims, including those who have been subjected to horrendous offences, such as rape and serious assault,” she said.

“It is not only saving our officers’ valuable time but delivering faster, more accurate results to catch criminals – helping us be more efficient than ever before.”

The Met say “robust safeguards” are in place, which ensure no biometric data is retained from anyone who walks past an LFR camera who isn’t wanted by police.

Almost 2 million faces scanned

But human rights group Liberty is calling for new laws to be introduced to govern how police forces use the technology after Liberty Investigates found almost 1.9 million faces were scanned by the Met between January 2022 and March this year.

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Charlie Whelton, Liberty policy and campaigns officer, said: “We all want to feel safe in our communities, but technology is advancing quickly, and we need to make sure that our laws keep up.

“Any tech which has the potential to infringe on our rights in the way scanning and identifying millions of people does needs to have robust safeguards around its use to protect us all from abuse of power as we go about our daily lives.

“There is currently no overarching law governing police use of facial recognition in the UK, and we shouldn’t leave police forces to come up with these frameworks on their own.

“Almost two million faces have been scanned in London before Parliament has even decided what the laws should be.

“We need to catch up with other countries, and the law needs to catch up with the use. Parliament must legislate now and ensure that safeguards are in place to protect people’s rights where the police use this technology.”

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I’ve followed the PM wherever he goes in his first year in office – here’s what I’ve observed

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I've followed the PM wherever he goes in his first year in office - here's what I've observed

July 5 2024, 1pm: I remember the moment so clearly.

Keir Starmer stepped out of his sleek black car, grasped the hand of his wife Vic, dressed in Labour red, and walked towards a jubilant crowd of Labour staffers, activists and MPs waving union jacks and cheering a Labour prime minister into Downing Street for the first time in 14 years.

Starmer and his wife took an age to get to the big black door, as they embraced those who had helped them win this election – their children hidden in the crowd to watch their dad walk into Number 10.

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Keir Starmer, not the easiest public speaker, came to the podium and told the millions watching this moment the “country has voted decisively for change, for national renewal”.

He spoke about the “weariness at the heart of the nation” and “the lack of trust” in our politicians as a “wound” that “can only be healed by actions not words”. He added: “This will take a while but the work of change begins immediately.”

A loveless landslide

That was a day in which this prime minister made history. His was a victory on a scale that comes around but one every few decades.

He won the largest majority in a quarter of a century and with it a massive opportunity to become one of the most consequential prime ministers of modern Britain – alongside the likes of Margaret Thatcher or Tony Blair.

But within the win was a real challenge too.

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Starmer’s was a loveless landslide, won on a lower share of the vote than Blair in all of his three victories and 6 percentage points lower than the 40% Jeremy Corbyn secured in the 2017 general election.

It was the lowest vote share than any party forming a post-war majority government. Support for Labour was as shallow as it was wide.

In many ways then, it was a landslide built on shaky foundations: low public support, deep mistrust of politicians, unhappiness with the state of public services, squeezed living standards and public finances in a fragile state after the huge cost of the pandemic and persistent anaemic growth.

Put another way, the fundamentals of this Labour government, whatever Keir Starmer did, or didn’t do, were terrible. Blair came in on a new dawn. This Labour government, in many ways, inherited the scorched earth.

The one flash of anger I’ve seen

For the past year, I have followed Keir Starmer around wherever he goes. We have been to New York, Washington (twice), Germany (twice), Brazil, Samoa, Canada, Ukraine, the Netherlands and Brussels. I can’t even reel off the places we’ve been to around the UK – but suffice to say we’ve gone to all the nations and regions.

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Starmer pushed on scale of “landslide” election win

What I have witnessed in the past year is a prime minister who works relentlessly hard. When we flew for 27 hours non-stop to Samoa last autumn to the Commonwealth Heads of Government Meeting (CHOGM) summit, every time I looked up at the plane, I saw a solitary PM, his headlight shining on his hair, working away as the rest of us slept or watched films.

He also seems almost entirely unflappable. He rarely expresses emotion. The only time I have seen a flash of anger was when I questioned him about accepting freebies in a conversation that ended up involving his family, and when Elon Musk attacked Jess Phillips.

I have also witnessed him being buffeted by events in a way that he would not have foreseen. The arrival of Donald Trump into the White House has sucked the prime minister into a whirlwind of foreign crises that has distracted him from domestic events.

When he said over the weekend, as a way of explanation not an excuse, that he had been caught up in other matters and taken his eye off the ball when it came to the difficulties of welfare reform, much of Westminster scoffed, but I didn’t.

I had followed him around in the weeks leading up to that vote. We went from the G7 in Canada, to the Iran-Israel 12-day war, to the NATO summit in the Hague, as the prime minister dealt with, in turn, the grooming gangs inquiry decision, the US-UK trade deal, Donald Trump, de-escalation in the Middle East and a tricky G7 summit, the assisted dying vote, the Iran-Israel missile crisis.

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In September 2024, the PM defended taking £20k GCSE donation

He was taking so many phone calls on Sunday morning from Chequers, that he couldn’t get back to London for COBRA [national emergency meeting] because he couldn’t afford to not have a secure phone line for the hour-long drive back to Downing Street.

He travelled to NATO, launched the National Security Review and agreed to the defence alliance’s commitment to spend 5% of GDP on defence by 2035. So when he came back from the Hague into a full-blown welfare rebellion, I did have some sympathy for him – he simply hadn’t had the bandwidth to deal with the rebellion as it began to really gather steam.

Dealing with rebellion

Where I have less sympathy with the prime minister and his wider team is how they let it get to that point in the first place.

Keir Starmer wasn’t able to manage the latter stages of the rebellion, but the decisions made months earlier set it up in all its glory, while Downing Street’s refusal to heed the concerns of MPs gave it momentum to spiral into a full-blown crisis.

The whips gave warning after 120 MPs signed a letter complaining about the measures, the Work and Pensions Secretary Liz Kendall had done the same, but Starmer and Reeves were, in the words of one minister, “absolutist”.

“They assumed people complaining about stuff do it because they are weak, rather than because they are strong,” said the minister, who added that following the climbdown, figures in Number 10 “just seemed completely without knowledge of the gravity of it”.

That he marks his first anniversary with the humiliation of having to abandon his flagship welfare reforms or face defeat in the Commons – something that should be unfathomable in the first year of power with a majority that size – is disappointing.

To have got it that wrong, that quickly with your parliamentary party, is a clear blow to his authority and is potentially more chronic. I am not sure yet how he recovers.

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Welfare vote ‘a blow to the prime minister’

Keir Starmer said he wanted to rule country first, party second, but finds himself pinned by a party refusing to accept his centrist approach. Now, ministers tell MPs that there will be a financial consequence of the government’s decision to delay tightening the rules on claiming disability benefits beyond the end of 2026.

A shattered Rachel Reeves now has to find the £5bn she’d hoped to save another way. She will defend her fiscal rules, which leaves her the invidious choice of tax rises or spending cuts. Sit back and watch for the growing chorus of MPs that will argue Starmer needs to raise more taxes and pivot to the left.

That borrowing costs of UK debt spiked on Wednesday amid speculation that the chancellor might resign or be sacked, is a stark reminder that Rachel Reeves, who might be unpopular with MPs, is the markets’ last line of defence against spending-hungry Labour MPs. The party might not like her fiscal rules, but the markets do.

What’s on the horizon for year two?

The past week has set the tone now for the prime minister’s second year in office. Those around him admit that the parliamentary party is going to be harder to govern. For all talk of hard choices, they have forced the PM to back down from what were cast as essential welfare cuts and will probably calculate that they can move him again if they apply enough pressure.

There is also the financial fall-out, with recent days setting the scene for what is now shaping up to be another definitive budget for a chancellor who now has to fill a multi-billion black hole in the public finances.

But I would argue that the prime minister has misjudged the tone as he marks that first year. Faced with a clear crisis and blow to his leadership, instead of tackling that head on the prime minister sought to ignore it and try to plough on, embarking on his long-planned launch of the 10-year NHS plan to mark his year in office, as if the chancellor’s tears and massive Labour rebellions over the past 48 hours were mere trifles.

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Why was the chancellor crying at PMQs?

It was inevitable that this NHS launch would be overshadowed by the self-inflicted shambles over welfare and the chancellor’s distress, given this was the first public appearance of both of them since it had all blown up.

But when I asked the prime minister to explain how it had gone so wrong on welfare and how he intended to rebuild your trust and authority in your party, he completely ignored my question. Instead, he launched into a long list of Labour’s achievements in his first year: 4 million extra NHS appointments; free school meals to half a million more children; more free childcare; the biggest upgrade in employment rights for a generation; and the US, EU and India free trade deals.

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Starmer defends reaction to Reeves crying in PMQs

I can understand the point he was making and his frustration that his achievements are being lost in the maelstrom of the political drama. But equally, this is politics, and he is the prime minister. This is his story to tell, and blowing up your welfare reform on the anniversary week of your government is not the way to do it.

Is Starmer failing to articulate his mission?

For Starmer himself, he will do what I have seen him do before when he’s been on the ropes, dig in, learn from the errors and try to come back stronger. I have heard him in recent days talk about how he has always been underestimated and then proved he can do it – he is approaching this first term with the same grit.

If you ask his team, they will tell you that the prime minister and this government is still suffering from the unending pessimism that has pervaded our national consciousness; the sense politics doesn’t work for working people and the government is not on their side.

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Starmer knows what he needs to do: restore the social contract, so if you work hard you should get on in life. The spending review and its massive capital investment, the industrial strategy and strategic defence review – three pieces of work dedicated to investment and job creation – are all geared to trying to rebuild the country and give people a brighter future.

But equally, government has been, admit insiders, harder than they thought as they grapple with multiple crises facing the country – be that public services, prisons, welfare.

It has also lacked direction. Sir Keir would do well to focus on following his Northern Star. I think he has one – to give working people a better life and ordinary people the chance to fulfil their potential.

But somehow, the prime minister is failing to articulate his mission, and he knows that. When I asked him at the G7 summit in Canada what his biggest mistake of the first year was, he told me: “We haven’t always told our story as well as we should.”

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Beth Rigby asks the PM to reflect on a year in office

I go back to the Keir Starmer of July 5 2024. He came in on a landslide, he promised to change the country, he spoke of the lack of trust and the need to prove to the public that the government could make their lives better through actions not words.

In this second year, he is betting that the legislation he has passed and strategies he has launched will drive that process of change, and in doing so, build back belief.

But it is equally true that his task has become harder these past few weeks. He has spilled so much blood over welfare for so little gain, his first task is to reset the operation to better manage the party and rebuild support.

But bigger than that, he needs to find a way to not just tell his government’s story but sell his government’s story. He has four years left.

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Leaseholders to get rights to more easily challenge extortionate service charges

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Leaseholders to get rights to more easily challenge extortionate service charges

Leaseholders will be able to more easily challenge extortionate service charges, the government has said.

For those who are trapped in the midst of the leasehold scandal, the reforms cannot come soon enough.

They have been promised change for many years by successive governments and by Labour in opposition, so any progress will be welcome, but is it enough for those suffering financially?

It’s a complex problem but at the heart of it are service charges that go higher and higher in a way that is often inexplicable, unpredictable and opaque.

These are fees for building services and maintenance that are on top of the homeowner’s mortgage.

They often run into thousands of pounds, go way over the initial estimate and it is not clear why they are so high.

By forcing companies to be transparent about the fees they are charging, the government is hoping to tackle this.

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The reforms, which the government has said it will push through after a consultation, will receive standardised service charge documentation which spell out clear and detailed information about how their service charges are calculated and spent.

Housing minister Matthew Pennycook
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Housing minister Matthew Pennycook

Further reforms will stop leaseholders having to automatically pay for landlords’ litigation costs even where they have won their case.

According to housing minister Matthew Pennycook, the changes will enable homeowners to challenge unreasonable charges more easily.

He also believes it will put pressure on managing agents to bring fees down.

The government will also introduce a strict new qualification regime for managing agents to try to raise standards in the sector.

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Terraced housing and blocks of flats in west London. Pic: PA
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Terraced housing and blocks of flats in west London. Pic: PA

Mr Pennycook told Sky News: “The system has some inherent inequities in it that do allow leaseholders to be gouged and particularly when it comes to managing agents there are unscrupulous people out there.

“They are abusing leaseholders and there’s poor practice.

“The reforms we are announcing today and reforms that are to come are going to bear down managing agents and ensure the sector as a whole is properly regulated.”

Asked why it has taken a year to make this announcement, and why further changes could take much longer, he said: “We’ve got to take forward through primary legislation the wider reforms necessary to bring the system to an end.

“You can’t do that in 100 days but we are also determined to provide relief to existing leaseholders now.”

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