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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.

Politics latest: Minister breaks ranks over Tory donor row – as Sunak told to ‘grow a backbone’ and take action

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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Khan demands PM ‘grow a backbone’

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.”

Read more:
Who is Tory donor Frank Hester and what did he reportedly say about Diane Abbott?
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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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Specialist teams and online investigators deployed across England and Wales to tackle ‘national emergency’ of violence against women and girls

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Specialist teams and online investigators deployed across England and Wales to tackle 'national emergency' of violence against women and girls

Specialist investigation teams for rape and sexual offences are to be created across England and Wales as the home secretary declares violence against women and girls a “national emergency”.

Shabana Mahmood said the dedicated units will be in place across every force by 2029 as part of Labour’s violence against women and girls (VAWG) strategy due to be launched later this week.

The use of Domestic Abuse Protection Orders (DAPOs), which had been trialled in several areas, will also be rolled out across England and Wales. They are designed to target abusers by imposing curfews, electronic tags and exclusion zones.

The orders cover all forms of domestic abuse, including economic abuse, coercive and controlling behaviour, stalking and ‘honour’-based abuse. Breaching the terms can carry a prison term of up to five years.

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Govt ‘thinking again’ on abuse strategy

Nearly £2m will also be spent funding a network of officers to target offenders operating within the online space.

Teams will use covert and intelligence techniques to tackle violence against women and girls via apps and websites.

A similar undercover network funded by the Home Office to examine child sexual abuse has arrested over 1,700 perpetrators.

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Abuse is ‘national emergency’

Ms Mahmood said in a statement: “This government has declared violence against women and girls a national emergency.

“For too long, these crimes have been considered a fact of life. That’s not good enough. We will halve it in a decade.

“Today, we announce a range of measures to bear down on abusers, stopping them in their tracks. Rapists, sex offenders and abusers will have nowhere to hide.”

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Angiolini Inquiry: Recommendations are ‘not difficult’

The target to halve violence against women and girls in a decade is a Labour manifesto pledge.

The government said the measures build on existing policy, including facial recognition technology to identify offenders, improving protections for stalking victims, making strangulation a criminal offence and establishing domestic abuse specialists in 999 control rooms.

Read more from Sky News:
Demands for violence and abuse reforms
Women still feel unsafe on streets
Minister ‘clarifies’ violence strategy

Labour has ‘failed women’

But the Conservatives said Labour had “failed women” and “broken its promises” by delaying the publication of the violence against women and girls strategy.

Shadow home secretary Chris Philp said that Labour “shrinks from uncomfortable truths, voting against tougher sentences and presiding over falling sex-offender convictions. At every turn, Labour has failed women”.

Home Secretary Shabana Mahmood will be on Sunday Morning with Trevor Phillips on Sky News this morning from 8.30am.

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The Securities and Exchange Commission publishes crypto custody guide

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The Securities and Exchange Commission publishes crypto custody guide

The United States Securities and Exchange Commission (SEC) published a crypto wallet and custody guide investor bulletin on Friday, outlining best practices and common risks of different forms of crypto storage for the investing public.

The SEC’s bulletin lists the benefits and risks of different methods of crypto custody, including self-custody versus allowing a third-party to hold digital assets on behalf of the investor.

If investors choose third-party custody, they should understand the custodian’s policies, including whether it “rehypothecates” the assets held in custody by lending them out or if the service provider is commingling client assets in a single pool instead of holding the crypto in segregated customer accounts.

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The Bitcoin supply broken down by the type of custodial arrangement. Source: River

Crypto wallet types were also outlined in the SEC guide, which broke down the pros and cons of hot wallets, which are connected to the internet, and offline storage in cold wallets.

Hot wallets carry the risk of hacking and other cybersecurity threats, according to the SEC, while cold wallets carry the risk of permanent loss if the offline storage fails, a storage device is stolen, or the private keys are compromised. 

The SEC’s crypto custody guide highlights the sweeping regulatory change at the agency, which was hostile to digital assets and the crypto industry under former SEC Chairman Gary Gensler’s leadership.