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Business Secretary Kemi Badenoch has said alleged comments made about Diane Abbott by a Tory donor were “racist” – but that there should be “space for forgiveness”.

Ms Badenoch is the first cabinet minister to use the term to describe Frank Hester‘s reported remarks about the former Labour MP, after government ministers including Graham Stuart and Mel Stride criticised the comments but did not call them racist.

Mr Hester allegedly said Ms Abbott made him “want to hate all black women” and that the MP “should be shot”, according to reports in the Guardian.

In a statement written on his behalf on Monday night, Mr Hester – who donated £10m to the Tories last year – said he was “deeply sorry” about the comments but said they had “nothing to do with her gender nor colour of skin”.

Rishi Sunak’s official spokesperson has described the remarks as “unacceptable” but also would not say if they he believed they were racist.

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But in a post on X, Ms Badenoch wrote: “Hester’s 2019 comments, as reported, were racist. I welcome his apology.

“Abbott and I disagree on a lot. But the idea of linking criticism of her, to being a black woman is appalling.

“It’s never acceptable to conflate someone’s views with the colour of their skin.”

She added: “MPs have a difficult job balancing multiple interests – often under threats of intimidation as we saw recently in parliament.

“Some people make flippant comments without thinking of this context.

“This is why there needs to be space for forgiveness where there is contrition.”

According to the Westminster Accounts project, a joint venture between Sky News and Tortoise Media to shine a light on how money works in politics, Mr Hester’s Phoenix Partnership has donated £5.1m to the Conservatives since the 2019 election and has also individually donated £5m.

The company also made a single donation of £15,900 to Mr Sunak. Dated 11 December 2023, the donation was categorised as “support linked to an MP but received by a local party organisation or indirectly via a central party organisation”.

The prime minister’s entry in the register of members’ financial interests said the donation involved the “provision of [a] helicopter to fly me to a political visit and event on 23 November 2023”.

According to The Guardian, Mr Hester made the remarks about Ms Abbott in 2019 during a meeting at his Leeds company headquarters.

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He reportedly said: “It’s like trying not to be racist but you see Diane Abbott on the TV, and you’re just like… you just want to hate all black women because she’s there.

“And I don’t hate all black women at all, but I think she should be shot.”

In a statement on Tuesday, Ms Abbott – the UK’s first black woman to become an MP – said Mr Hester’s comments had put her in a “frightening” position and that she found the remarks “alarming” following the murders of fellow politicians Jo Cox in 2016 and Sir David Amess in 2021.

“It is frightening,” said Ms Abbott. “I live in Hackney and do not drive, so I find myself, at weekends, popping on a bus or even walking places more than most MPs.

She added: “For all of my career as an MP I have thought it important not to live in a bubble, but to mix and mingle with ordinary people. The fact that two MPs have been murdered in recent years makes talk like this all the more alarming.”

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Opposition parties have strongly criticised the government’s response to Mr Hester’s alleged remarks, with London mayor Sadiq Khan saying it “beggars belief” that the Tories have “failed to call out” the remarks as “racist and misogynistic”.

Labour and the Liberal Democrats have also called on the Conservatives to return the money donated by Mr Hester.

Chair of the Labour Party, Anneliese Dodds, also told Sky News the party had been in touch with Ms Abbott and would “continue to make sure” her welfare was looked after.

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How Vietnam is using crypto to fix its FATF reputation

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How Vietnam is using crypto to fix its FATF reputation

How Vietnam is using crypto to fix its FATF reputation

Vietnam is leveraging crypto regulation to meet FATF standards, combat digital asset fraud and rebuild its international financial reputation.

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UAE Golden Visa is ‘being developed independently‘ — TON Foundation

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UAE Golden Visa is ‘being developed independently‘ — TON Foundation

UAE Golden Visa is ‘being developed independently‘ — TON Foundation

The TON Foundation distanced itself from initial Golden Visa claims, saying the move is an independent initiative with no official backing from the United Arab Emirates government.

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Building societies step up protest against Reeves’s cash ISA reforms

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Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

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The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

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“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

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In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

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