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Baroness Michelle Mone should “see sense” and not return to the House of Lords after she admitted she stands to financially gain from a government-linked PPE deal during the pandemic, a minister has told Sky News.

Baroness Mone told the BBC she lied about her links to a PPE firm that was awarded contracts worth hundreds of millions of pounds.

She took a leave of absence from the House of Lords in December 2022, saying she wanted to “clear her name”.

Politics latest: Baroness Mone ‘should have declared’ interest in PPE firm

Pressed by Sky News’ Kay Burley on whether someone who had admitted to lying should be allowed back into parliament, energy minister and Tory peer Martin Callanan said: “I would hope that she would see sense.”

The minister added: “It is a matter for her to decide… [but] I would hope she would not be coming back to the House of Lords.”

Asked if it was okay for a Tory peer to lie like Baroness Mone had admitted to, Prime Minister Rishi Sunak said there was “a limit” to what he could say due to legal proceedings.

But he insisted he and the government “take all these things incredibly seriously”.

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“Should an acknowledged liar have the rights to make laws for all of us?” asks @KayBurley

Michael Gove is also facing calls to answer questions before MPs over PPE firm Medpro after he was name-checked by Baroness Mone in her first major broadcast interview since the scandal emerged.

Baroness Mone, who was appointed to the Lords by David Cameron in 2015, said she contacted Mr Gove at the start of the pandemic following a “call to arms for all Lords, baronesses, MPs, senior civil servants, to help, because they needed massive quantities of PPE”.

Mr Gove was chancellor of the Duchy of Lancaster when the COVID pandemic struck.

Michael Gove  leaves 10 Downing Street
Pic:AP
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Pic: AP

“I just said, ‘We can help, and we want to help.’ And he was like, ‘Oh my goodness, this is amazing’,” Baroness Mone told the BBC.

Shadow cabinet office minister Nick Thomas-Symonds has now called on Mr Gove to answer questions following her claim.

In a letter to Mr Gove, he said: “This series of events has led to civil litigation and a National Crime Agency investigation.

“Yet these ongoing matters should not preclude you from addressing questions about your own involvement and the role of the government.

“Events so far expose a shocking recklessness by the Conservative government with regard to public money, and a sorry tale of incompetence in relation to the so-called ‘VIP Lane’ for procurement during the pandemic.”

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Mone admits ‘error’ by denying link to PPE firm

Mr Thomas-Symonds said Mr Gove should answer questions about the so-called “call to arms” and what further communications he had with Baroness Mone.

“The very least Conservative ministers owe is maximum possible transparency and there should be an urgent statement to parliament before the Christmas recess,” he added.

Read more from Sky News:
Who is Michelle Mone and what is the PPE controversy?
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Warnings of Christmas getaway delays – find out where hotspots are

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Labour on MedPro row

The National Crime Agency is investigating PPE Medpro, while the Department of Health and Social Care (DHSC) has since issued breach of contract proceedings over a 2020 deal on the supply of gowns.

In the BBC interview, Baroness Mone insisted that lying to the media is “not a crime”.

She admitted she stands to benefit from a deal between the government and the firm, which was awarded contracts worth more than £200m to supply PPE after she recommended it to ministers.

She also conceded she made an “error” in publicly denying her links to the firm.

She owned up to being is a beneficiary of her husband Doug Barrowman’s financial trusts, which hold around £60m of profit from the deal, but said the couple have been made “scapegoats” for the government’s wider PPE failings.

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Baroness Mone has repeatedly denied that she profited from the deal.

She told the BBC: “If one day, if, God forbid, my husband passes away before me, then I am a beneficiary, as well as his children and my children, so, yes, of course”.

The baroness added she did not mean to fool anyone, despite admitting the couple misled the press about their involvement.

Millions of gowns supplied by the company were never used by health services and the DHSC is still seeking to claw back some of the money.

The couple insist the gowns were supplied in accordance with the contract.

A DHSC spokesman said: “We do not comment on ongoing legal cases.”

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WH Smith buyer ‘faces 12-month ban’ on mass shop closures

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WH Smith buyer 'faces 12-month ban' on mass shop closures

The new owner of WH Smith’s high street chain has effectively been barred from launching a wave of mass store closures for at least 12 months amid plans for rapid restructurings at two other retailers it owns.

Sky News has learnt that WH Smith would have the right to cancel a year-long transitional services agreement (TSA) put in place with Modella Capital – which struck a deal to acquire the business in March – if it launched a company voluntary arrangement (CVA) before the first anniversary of the transaction’s completion.

The clause in the TSA, which enables Modella Capital to continue using WH Smith’s systems after it takes ownership, is significant, according to retail insiders.

WH Smith agreed to sell its 480 high street shops to Modella in a £76m deal, ending 233 years of high street history.

Modella plans to rebrand the chain under the name TG Jones after it takes control.

In recent weeks, Sky News has revealed plans drawn up by Modella to launch CVAs at both Hobbycraft and The Original Factory Shop, which it has owned for nine and three months respectively.

Both of those restructuring processes have put significant numbers of stores at risk, and industry executives say that, over time, a sizeable part of the WH Smith high street estate could also be at risk.

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A spokesman for Modella said: “We have a number of exciting plans for the future of TGJones.

“A CVA is not on the agenda, as it is a solvent business.”

WH Smith, which will become a pure-play travel retailer once the Modella deal completes, declined to comment further ahead of the completion of the sale.

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Hovis and Kingsmill-owners in talks about historic bread merger

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Hovis and Kingsmill-owners in talks about historic bread merger

The owners of Hovis and Kingsmill, two of Britain’s leading bread producers, are in talks about a historic merger amid a decades-long decline in the sale of supermarket loaves.

Sky News has learnt that Associated British Foods (ABF), the London-listed company which owns Kingsmill’s immediate parent, Allied Bakeries, and Hovis, which is owned by investment firm Endless, have been involved in prolonged discussions about a combination of the two businesses.

City sources said this weekend that the talks were ongoing, but that there was no certainty that a deal would be finalised.

Bankers are said to be working with both sides on the talks about a transaction.

A deal could be structured as an acquisition of Hovis by ABF, according to analysts, although details about the mechanics of a merger or the valuations attached to the two businesses were unclear this weekend.

ABF is also said to be exploring other options for the future of Allied Bakeries which do not include a deal with Hovis.

If completed, a merger would unite two of Britain’s best-known ambient food brands, with Allied Bakeries having been founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.

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Hovis traces its history back even further, having been created in 1890 when Herbert Grime scooped a £25 prize for coming up with the name Hovis, which was derived from the Latin ‘Hominis Vis’ – meaning strength of man.

Persistent inflation, competition from speciality bread producers and shifting consumer habits towards lower-carb diets have combined to impair the bread industry’s financial health in recent decades.

The impact of the war in Ukraine on wheat and flour prices has been among the factors increasing inflationary pressures on bread producers, according to the most recent set of accounts for Hovis filed at Companies House last year.

The overall UK bakery market is said to be worth about £5bn in annual sales, with the equivalent of 11m loaves being sold each day.

The principal obstacle facing a merger of Allied Bakeries, which also owns the Sunblest and Allinson’s bread brands, and Hovis would reside in its consequences for competition in the UK market.

Warburtons, the family-owned business which is the largest bakery group in Britain, is estimated to have a 34% share of the branded wrapped sliced bread sector in the UK, with Hovis on 24% and Allied on 17%, according to industry insiders.

A merger of Hovis and Kingsmill would give the combined group a larger share of that segment of the market, although one source said Warburtons’ overall turnover would remain larger because of the breadth of its product range.

Nevertheless, reducing the number of major supermarket bread suppliers from three to two would be a test of the Competition and Markets Authority’s approach to such industry-reshaping mergers at a time when the watchdog is under intense government scrutiny.

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In January, the government removed the CMA chairman, Marcus Bokkerink, as part of a push to reorient Britain’s economic regulators around growth-focused objectives.

An industry insider suggested that a joint venture involving the distribution networks of Hovis and Kingsmill was a possible, although less likely, alternative to a full-blown merger of the companies.

They added that a combined group could benefit from up to £50m of cost savings from such a tie-up.

In its interim results announcement this week, ABF said the performance of Allied Bakeries had continued to struggle.

“Allied Bakeries continues to face a very challenging market,” it said.

“We are evaluating strategic options for Allied Bakeries against this backdrop and we expect to provide an update in [the second half of] 2025.”

In a separate presentation to analysts, ABF described the losses at Allied as unsustainable.

The company does not disclose details of Allied Bakeries’ financial performance.

Allied also owns Speedibake, an own-label bread manufacturer.

Hovis has been owned by Endless, a prominent investor in British businesses, since 2020, having previously been owned by Mr Kipling-maker Premier Foods and the Gores family.

At the time of the most recent takeover, High Wycombe-based Hovis employed about 2,700 people and operated eight bakery sites and its own flour mill.

Hovis’s current chief executive, Jon Jenkins, is a former boss of Allied Milling and Baking.

This weekend, ABF and Endless both declined to comment.

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Struggling Aston Martin steers into fresh pay controversy

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Struggling Aston Martin steers into fresh pay controversy

Aston Martin is steering a path towards a twin-pronged pay row with shareholders as it grapples with the impact of President Trump’s tariffs on car manufacturers.

Sky News can reveal that the influential proxy voting adviser ISS is urging investors to vote against both of Aston Martin Lagonda Global Holdings’ remuneration votes at next week’s annual general meeting.

The pay policy vote, which is binding on the company, has attracted opposition from ISS because it proposes significant increases to potential bonus awards to Adrian Hallmark, the company’s new chief executive.

“Concerns are raised regarding the increased bonus maximums, which are built upon competitively[1]positioned salary levels and do not appear appropriate given the company’s recent performance,” ISS said in a report to clients.

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Aston Martin is also facing a meaningful vote against its pay report for last year – which is on an advisory basis only – because of the salaries awarded to Mr Hallmark and other executive directors.

The company’s shares have nearly halved in the last year, and it now has a market value of little more than £660m.

Despite the ISS recommendation, Aston Martin will win the vote by virtue of chairman Lawrence Stroll’s 33% shareholding.

The luxury car manufacturer has had a torrid time as a public company and now faces the headwinds of President Trump’s tariffs blitz.

This week it said it would limit exports to the US to offset the impact of the policy.

Aston Martin did not respond to a request for comment ahead of next Wednesday’s AGM.

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