Healthcare tycoon Hester swells Tory election warchest with £5m donation

Published

2 years ago

September 5, 2023

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A healthcare entrepreneur who ranks among Britain’s richest people and whose company has had close ties to the government has handed a £5m donation to the Conservative Party – one of the biggest in its recent history.

Sky News has learnt that Frank Hester, founder and chief executive of The Phoenix Partnership (TPP), has given the Tories a seven-figure sum that will provide the party with a significant boost to its general election war-chest.

The sum is likely to be disclosed in the latest quarterly data on political donations, which is expected to be published by the Electoral Commission later this week.

Based in Leeds, TPP describes itself as “a leading global provider of healthcare technology”.

It says it provides “vital clinical IT services in… more than 2,600 GP practices”.

During the pandemic, it was reported to have won a six-figure contract to supply data on vaccine uptake levels.

Mr Hester, who was awarded an OBE in 2015 for services to healthcare, has accompanied ministers on several overseas trade missions.

In 2013, he travelled to India with David Cameron, the then prime minister, as part of what was Britain’s biggest-ever trade delegation.

“This trip is worth a lot of money to us – it’s invaluable,” Mr Hester reportedly told the Financial Times during the trip.

“Being with the PM and UK Trade and Investment means we [see] the right people.”

The following year, Jeremy Hunt, the then health secretary, visited TPP’s headquarters, saying: “Technology is the key to 21st century personalised healthcare, so it is great to see companies like TPP leading the way with new software that will put [care home] residents in control of their health.”

This year’s Sunday Times Rich List estimated Mr Hester’s wealth at £415m, ranking him in joint 321st place.

Mr Hester’s donation is expected to be among a series of big payments disclosed in the latest Electoral Commission data.

In June, it emerged that the Egyptian-born billionaire Mohamed Mansour had handed the Tories £5m, which was reportedly the party’s biggest single donation since 2001.

The hedge fund founder Alan Howard gave £1m to the Tories earlier this year, Sky News revealed.

The party’s financial fortunes had to a degree fallen hostage to the splintering of Brexit sentiment in the parliamentary party and among its donors.

Boris Johnson was perceived as a leader with enormous financial pulling power, with wealthy donors under his leadership including the likes of Lord Bamford, the JCB tycoon, and Lord Cruddas, the CMC Markets founder.

However, both peers have lost their enthusiasm for funding the party since Mr Johnson’s departure, leaving its treasurers to seek alternatives to fill the funding gap.

It emerged earlier this year that Labour had also landed a new multimillion pound donation, from Gary Lubner, a former boss of Autoglass.

He told the FT that he wanted Sir Keir Starmer to lead the Labour Party into government and remain there for “a long time”.

The newspaper said he was expected to give around £5m to help fund its election campaign.

A Conservative Party spokesman declined to comment, while TPP did not respond to a series of emailed enquiries.

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Tesla approves $29bn share award to Elon Musk

Published

3 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

3 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

24 hours ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”