Closure of Nigel Farage’s bank account ‘predominantly a commercial decision’, review finds
An independent review into the closure of Nigel Farage’s Coutts account and the discussion of his banking with a journalist by the head of the bank has found “a number of shortcomings” in the closure process.
But law firm Travers Smith, which was commissioned by the board of NatWest to conduct the review, said the closure of Mr Farage‘s account, “was predominantly a commercial decision”.
“Coutts considered its relationship with Mr Farage to be commercially unviable because it was significantly lossmaking,” the review found.
In response to the key findings of the report, NatWest chairman Sir Howard Davies, said “a number of serious failings” were set out in the treatment of Mr Farage.
Shortcomings were also found in how the bank, which owns Coutts, communicated with the former UKIP and Brexit Party leader and how it treated his confidential information, according to the review.
The Financial Conduct Authority (FCA) said potential “regulatory breaches and a number of areas for improvement” were identified.
These include NatWest’s processes on how it considers potential account closures and customer complaints as well as the effectiveness of governance mechanisms.
NatWest’s share price fell to 173p on Friday – its lowest in more than two years. This came despite just published results showing £1.33bn in profit over the three months ending in September, 23% higher than at the same point a year before.
The share price fall, from 205.2p on Thursday evening, was the biggest fall since the 2016 Brexit vote.
Former chief executive Dame Alison Rose left the state-backed lender after she admitted making a “serious error of judgment” by speaking to a journalist about Farage’s banking at Coutts.
Dame Alison Rose
After the news piece was published Mr Farage released the findings of a subject access request, which suggested the move was taken partly because his views did not align with the firm’s “values”.
Key findings by Travers Smith are:
• The decision to close the account was lawful and was made in accordance with bank policies and processes.
• Dame Alison Rose played no part in the decision to close the account.
• Other factors were considered in the decision-making process: Coutts thought there could be reputational harm from Mr Farage holding an account, though these factors did not drive the decision.
• Mr Farage’s stated beliefs were not a determining factor in closing the account but those beliefs did support the decision.
• The way Mr Farage was informed of the closure of his account did not accord with the bank’s policies and processes, in particular when it came to giving reasons to customers involved in “non-financial crime exits”. No adequate reasons were given.
In response, Mr Farage said: “The report’s authors claim it was “predominantly a commercial decision” to close my accounts but, crucially, they also noted that evidence given to them by witnesses in relation to this episode was not entirely consistent.
“Travers Smith has taken a very mealy-mouthed approach to this complex issue. The law firm argues that my political views “not aligning with those of the bank” was not in itself a political decision. This is laughable.”
“Worse still, Travers Smith did not find “any evidence” that my “pro-Brexit stance were factors in the exit decision”. The word Brexit appeared no less than 86 times in my subject access request.
“The letters that were sent to me confirming the closures of my accounts without explanation were sent on a paper headed template usually reserved for those suspected of fraud.”
The Information Commissioner’s Office (ICO) earlier this week said there were two privacy breaches involved in Dame Alison’s disclosure to BBC News business editor Simon Jack.
A broader FCA review of banks closing accounts on the basis of customers’ political opinion found no evidence of the practice.
However, only closures between July 2022 and June 2023 were considered and more work to verify the data supplied by banks was needed as was examination as to why and when they close accounts due to reputational risk.
‘Minimal’
“Both Travers Smith and the Information Commissioner’s Office (ICO) have concluded that I inadvertently confirmed what had already been widely reported, that Mr Farage held an account at Coutts,” Dame Alison said on Friday morning.
“The ICO also concluded the ‘impact around this specific disclosure was minimal’.”
“Travers Smith is clear that “there was no leak of specific detailed financial information”. Travers Smith also confirmed I knew nothing about the comments made by Coutts staff about Mr Farage, which were deeply unpleasant and unfair.”
Europe’s largest airline has seen annual earnings drop by 16% after cutting air fares – but revealed a price hike as it seeks to return to growth.
Ryanair reported profits after tax fell to €1.61bn (£1.35bn) for the year to 31 March, down from €1.92bn (£1.61bn) in 2024, still the second highest on record.
On average, plane tickets were 7% cheaper during this period than the 12 months before, it said.
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There had been a 21% rise in fares in the year up to March 2024, which bosses had signalled was due to end.
Higher-for-longer interest rates and inflation in the first half of the year meant ticket prices had to come down, the budget carrier said.
But fares are already back on the rise, Ryanair’s chief executive Michael O’Leary said.
The airline “cautiously” expects to recover “most, but not all” of the fare decline, which he said will boost profits.
Demand for summer flights is “strong”, Mr O’Leary said, with peak fares “modestly” ahead of last year.
In recent months, that rebound has already been under way. Fares since April are on track to be “a mid-high teen per cent ahead” by the end of next month, compared with the same period last year.
That trend is expected to continue to July, August and September, Mr O’Leary said.
“While we cautiously expect to recover most, but not all of last year’s 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance,” he said.
“The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macro-economic shocks, conflict escalation in Ukraine and the Middle East and European air traffic control mismanagement/short staffing.”
Read more from Sky News:
UK and EU agree ‘Brexit reset’ trade deal
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Passenger numbers grew to a record 200 million on the back of cheaper fares, hitting a target that had been reduced due to delays in delivering new Boeing planes.
The US manufacturer has struggled with increased regulatory oversight after a door panel blew off an Alaska Airlines plane mid-flight in January last year. Strike action by staff had added to the delays.
The forecast for passenger numbers has been reduced again. Ryanair now aims to transport 206 million passengers in this financial year.
It hopes to reach 300 million passengers by 2034 and on Monday said it still expects to receive 300 new Boeing planes by 2033.
The UK and the EU have agreed a new post-Brexit “reset” trade deal after months of negotiations.
A UK government source said: “All in all, a good deal for all.”
The talks were the first since Boris Johnson agreed the initial Brexit deal in January 2020, when the UK left the EU.
Politics latest: Details of UK-EU deal emerge
Talks went “down to the wire”, with a breakthrough at about 10.30pm on Sunday ahead of a Monday 10am deadline, as UK fishing rights were, yet again, a major sticking point negotiators had to work through.
Sky News understands the EU wanted permanent access to UK waters for fishing, but they have agreed to access for 12 years.
There will be no change to the current access for UK fishing communities, with no reduction in British quotas or increase in the amount the EU is allowed to catch.
Fishing rights were a major part of the Brexit “leave” campaign, although fishing only accounts for 0.4% of GDP.
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UK-EU reset deal done
Details are expected later today on defence and security, which could feature an agreement allowing British firms access to a £125 billion EU defence.
The two sides were also looking at deals allowing British travellers to use e-gates at European airports and cutting red tape on food exports and animal/plant health for trade.
Sky News understands talks are continuing on a youth mobility scheme to allow people aged 18-30 in the UK and the EU to move freely between countries for a limited period of time.
Sir Keir Starmer promised in his 2024 election manifesto he would sign a new trade and security deal with the EU, and has embarked on a charm offensive across Europe since winning power.
Chancellor Rachel Reeves told a meeting of business leaders it had “not been easy” to reach a deal but said it would “make it easier” for UK businesses.
EU relations minister Nick Thomas Symonds said it was a “historic day”.
“Good for jobs, good for bills, good for borders,” he posted on X.
“And more…Britain back on the world stage, with a government in the service of working people.”
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Conservative leader Kemi Badenoch called the deal “very concerning” and said 12 years EU access for fishing is three times longer than the government wanted.
“We’re becoming a rule-taker from Brussels once again,” she said.
“And with no details on any cap or time limits on youth mobility, fears of free movement returning will only increase.”
Fishing was a major sticking point in the talks. Pic: PA
Reform UK leader and Brexiteer Nigel Farage described the deal as a “surrender”.
Business Secretary Jonathan Reynolds told Sky News details were still being worked out just three hours before the deadline.
With just over an hour to go before the 10am deadline, the EU ambassadors’ committee approved the deal, ahead of a summit with EU leaders in London this morning.
A news conference to announce the details of the deal is set for later.
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Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.
“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.
On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.
“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”
Politics latest: PM outlines ‘benefits’ for UK from closer EU ties
The government is set to host EU leaders in London on Monday.
Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”
But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.
“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.
“We have certainly been taking what I have called a ruthlessly pragmatic approach.”
On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.
Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.
Read more:
What could a UK-EU reset look like?
Starmer’s stance on immigration criticised
On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.
He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.
Turning to borders, the minister was asked if people would be able to move through queues at airports faster.
Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.
PM opens door to EU youth mobility scheme
A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.
The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.
Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.
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Lack of UK training ‘big driver of net migration’
When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.
Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”
Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.
The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.
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‘It’s going to be a bad deal’
Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”
Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.
“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.
“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”
He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”
Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”
He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.
“Frankly, what is at stake… is much more important than those specific issues,” he said.
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