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Siemens, the German-based industrial technology giant, is this weekend leading a last-ditch rallying cry to save the CBI, the ailing business lobbying group.

Sky News has learnt that Siemens, which employs 11,000 people in Britain, is coordinating a letter among a group of CBI members to urge them to publicly endorse its survival.

The letter, which is to be sent to a national newspaper later on Sunday and which has been seen by Sky News, is understood to have been signed by Microsoft.

A small number of companies ranging in size from start-ups to giant corporate names have been asked to put their names to it, sources said on Sunday.

It has been written two days before a vote of CBI members will determine the Royal Charter-bearing organisation’s future as it grapples with a sexual misconduct scandal which has cut it adrift from government.

The Siemens-coordinated letter acknowledges its signatories’ revulsion at the allegations which have rocked the CBI, saying “it is clear the culture of the organisation fell far below expectations”.

This is at odds with the CBI’s own conclusion outlined in a prospectus published ahead of Tuesday’s extraordinary general meeting.

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The draft letter goes on to say: “At a time when the UK economy is facing strong economic headwinds and anaemia growth, and with a general election expected before the end of next year, it is vital that there is a credible voice representing all sectors and sizes of UK business.

“The CBI can do this. The next 18 months will be vital for the UK and as a group, we feel it is essential that a refocused, effective CBI re-establishes its ties with government and provides the voice that British business needs.”

Ministers and the Labour Party have refused to engage with the CBI while a police investigation into rape allegations is ongoing, a period which could last many months.

Jeremy Hunt, the chancellor, has said there is “no point” interacting with it after it was deserted in droves by leading corporate members such as Aviva and the John Lewis Partnership.

Public shows of corporate support have been conspicuously absent since the CBI was plunged into crisis.

However, in their joint letter, Siemens, Microsoft and their fellow signatories say they “believe that the CBI has recognised its failings and has a robust action plan in place to be delivered by a new leadership”.

Since the scandal engulfed the CBI in March, it has ousted its director-general, Tony Danker, and said it would accelerate a search for a new president.

“Of critical importance to us is that the CBI recognises that the necessary change will take a significant, ongoing and concerted effort to repair their culture and rebuild confidence,” the letter says.

“We see encouraging signs that this is recognised, the learnings as to what went wrong and why are being understood, and that a new culture is beginning to become embedded in the organisation.

“This is why we’re backing the CBI to change and move forward, and this group will vote to give the organisation a mandate to continue.

“This is not a blank cheque and we will hold the CBI to account in delivering on its action plans.”

A number of other members have expressed dissatisfaction with the CBI’s reform document, saying it had left them underwhelmed and that it had no financial or strategic plan for the CBI’s future.

To illustrate the apathy felt by many corporate members, PricewaterhouseCoopers, the UK’s biggest accountancy firm, does not plan to register a vote in next week’s ballot, according to insiders.

Sky News revealed last week that the board of the CBI had drafted in lawyers to prepare for a prospective insolvency filing ahead of the crunch vote.

An adverse outcome from a vote at next week’s extraordinary general meeting would leave directors with little choice but to begin a process to wind it up.

Next week’s EGM will take place on a ‘one member, one vote’ basis, with the CBI requiring a majority of votes cast in favour of a resolution expressing confidence in its ability to continue.

“Without a mandate from you, we have no future,” Rain Newton-Smith, the new director-general, has told members.

Siemens and Microsoft declined to comment, while the CBI has been contacted for comment.

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Woman and three teenagers arrested over M&S, Co-op and Harrods cyber attacks

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Woman and three teenagers arrested over M&S, Co-op and Harrods cyber attacks

Four people have been arrested by police investigating cyber attacks targeting M&S, Co-op and Harrods.

A 20-year-old woman and two males, both aged 19, and a male aged 17, were detained in London and the West Midlands this morning as part of a National Crime Agency (NCA) operation.

They were arrested at their homes on suspicion of Computer Misuse Act offences, blackmail, money laundering and participating in the activities of an organised crime group.

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Electronic devices were seized from the suspects and are currently being analysed by forensic experts.

M&S halted online orders, and shelves were empty in shops after the cyber attack on the retailer earlier this year.

The initial hack into the retailer’s systems took place in April through “sophisticated impersonation” involving a third party.

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Disruption is expected to continue at the retailer until the end of this month.

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Mickey Carroll in May answered why M&S cyber attack was so bad.

The Co-op and Harrods were also subsequently targeted by hackers.

Paul Foster, head of the NCA’s National cybercrime unit described the arrests as a “significant step” in their investigation, which remains “one of the Agency’s highest priorities”.

He added: “…our work continues, alongside partners in the UK and overseas, to ensure those responsible are identified and brought to justice.”

The National Crime Agency is keen to “signal” to “future victims” the “importance of seeking support and engaging with law enforcement”, stating that “the NCA and policing are here to help”.

The NCA has also thanked M&S, Co-op and Harrods for their support in their investigations.

The arrests, which took place early on Thursday morning, were supported by officers from the West Midlands Regional Organised Crime Unit and the East Midlands Special Operations Unit.

Earlier this week, the chairman of M&S told MPs that the hack had been “traumatic” and like an “out-of-body experience”.

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Archie Norman, however, refused to be drawn on whether the retailer had paid any ransom.

“We are not discussing any of the details of our interaction with the threat actor, including this subject, but that subject is fully shared with the NCA,” he said.

It is estimated that the cyber attack will cost M&S up to £300m this year.

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Days after M&S was attacked, the Co-op was targeted and forced to shut down some internal systems.

Harrods was then hacked, and also had to shut some systems despite its website and shops continuing to operate.

Of those arrested, a 17-year-old British male and a 19-year-old Latvian male were from the West Midlands.

A 19-year-old man was from London and a 20-year-old woman from Staffordshire.

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US-listed Ulta Beauty swoops on high street chain Space NK

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US-listed Ulta Beauty swoops on high street chain Space NK

A New York-listed company with a valuation of more than $21bn is to snap up Space NK, the British high street beauty chain.

Sky News has learnt that Ulta Beauty, which operates close to 1,500 stores, is on the verge of a deal to buy Space NK from existing owner Manzanita Capital.

Ulta Beauty is understood to have registered an acquisition vehicle at Companies House in recent weeks.

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The exact price being paid by Ulta was unclear on Thursday morning, although one source said it was likely to be well in excess of £300m.

Manzanita Capital, a private investment firm, engaged bankers at Raymond James to oversee an auction in April 2024.

The firm has owned Space NK for more than 20 years.

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Manzanita has also owned the French perfume house Diptyque and Susanne Kaufmann, an Austrian luxury skincare brand.

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Founded in 1993 by Nicky Kinnaird, Space NK – which is named after her initials – trades from dozens of stores and employs more than 1,000 people.

It specialises in high-end skincare and cosmetics products.

Manzanita previously explored a sale of Space NK in 2018, hiring Goldman Sachs to handle a strategic review, but opted not to proceed with a deal.

None of Ulta, Manzanita, Space NK and Raymond James could be reached for comment.

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Royal Mail to scrap second-class post on Saturdays and some weekdays

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Royal Mail to scrap second-class post on Saturdays and some weekdays

Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator.

From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said.

The post will still be delivered within three working days of collection from Monday to Friday.

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The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year.

Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time.

Those delivery targets are now being revised downwards.

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Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed.

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The sale of Royal Mail was approved in December

The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%.

A review of stamp prices has also been announced by Ofcom amid concerns over affordability, with a consultation set to be launched next year.

It’s good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m.

A welcome change?

Unsurprisingly, the company welcomed the announcement.

“It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service,” said Martin Seidenberg, the group chief executive of Royal Mail’s parent company, International Distribution Services.

“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”

Citizens Advice, however, doubted whether services would improve as a result of the changes.

“Today, Ofcom missed a major opportunity to bring about meaningful change,” said Tom MacInnes, the director of policy at Citizens Advice.

“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards.”

Acknowledging long delays “where letters have taken weeks to arrive”, Ofcom said it set Royal Mail new enforceable targets so 99% of mail has to be delivered no more than two days late.

Changing habits

Less than a third of letters are sent now than 20 years ago, and it is forecast to fall to about a fifth of the letters previously sent.

According to Ofcom research, people want reliability and affordability more than speedy delivery.

Royal Mail has been loss-making in recent years as revenues fell.

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In response to Ofcom’s changes, a government spokesperson said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth. With the way people use postal services having changed, it’s right the regulator has looked at this.

“We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK”.

Ofcom said it has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear their experiences implementing the changes.

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