Businessman Frank Hester has been widely condemned after the emergence of comments he allegedly made about Diane Abbott.
Hackney MP Ms Abbott has since responded, saying the Tory donor’s reported comments had put her in a “frightening” position.
But who is Mr Hester and what is he alleged to have said about Ms Abbott?
How Mr Hester made his fortune
The 58-year-old healthcare entrepreneur is founder and chief executive of The Phoenix Partnership (TPP).
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”.
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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, made last year’s Sunday Times Rich List with an estimated fortune of £415m.
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He was a computer programmer when he founded TTP in 1997 and was listed as one of the UK’s top 50 innovators in the national health publication Health Service Journal in 2013.
Huge donations to the Tories
Mr Hester donated £10m to the Tories last year, including a £5m donation to Rishi Sunak that came from him personally and another £5m that came from his healthcare software firm in November, Electoral Commission records show.
His ties to the party go back a long way.
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.”
Image: Frank Hester with former Tory leader and prime minister David Cameron
Image: Frank Hester chats with ex-Conservative PM Boris Johnson
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.”
What were his alleged remarks about Ms Abbott?
According to The Guardian, Mr Hester made remarks about Ms Abbott in 2019 during a meeting at his Leeds company headquarters.
In an article published on Monday, the publication reported he 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.”
How has Mr Hester responded?
A spokesperson for the entrepreneur released a statement saying: “Frank Hester accepts that he was rude about Diane Abbott in a private meeting several years ago but his criticism had nothing to do with her gender nor colour of skin.
“The Guardian is right when it quotes Frank saying he abhors racism, not least because he experienced it as the child of Irish immigrants in the 1970s.”
It added: “He rang Diane Abbott twice today to try to apologise directly for the hurt he has caused her, and is deeply sorry for his remarks.
“He wishes to make it clear that he regards racism as a poison which has no place in public life.”
How Ms Abbott responded
In her own statement, Ms Abbott, the UK’s first black woman to become an MP, detailed how “alarming” the alleged remarks were in light of the murder of two politicians since 2016.
“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.
“I am a single woman and that makes me vulnerable anyway. But to hear someone talking like this is worrying.”
Image: Diane Abbott
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.”
PM’s spokesperson says comments ‘unacceptable’ but ministers refuse to call them racist
Asked about the reported remarks at a regular briefing with journalists, Rishi Sunak’s spokesman said they were “clearly unacceptable”, but refused to say if they were racist.
Energy minister Graham Stuart told Sky News the remarks were “truly awful”.
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Graham Stuart MP said the alleged comments about Diane Abbott MP by Tory donor Frank Hester were ‘truly awful’, but says he
The PM’s spokesperson referred to Mr Stuart’s comments as he said: “I wouldn’t usually comment on alleged words, second-hand accounts, etcetera.
“But, as minister Stuart said this morning, what is alleged and reported to have been said is clearly unacceptable.”
He refused to be drawn on why they were unacceptable, adding: “I don’t have anything to add beyond what minister Stuart said this morning.”
Work and Pensions Secretary Mel Stride also told broadcasters the comments were “inappropriate”, but added: “I think the critical point here is I don’t think what he was saying was a gender-based or a race-based comment.”
Conservative MP and former chancellor Kwasi Kwarteng, however, said that the reported comments were “clearly racist and sexist”.
Calls for funds from Mr Hester to be returned
Sir Keir Starmer, London mayor Sadiq Khan and other political opponents of the Tories have demanded that the party return the money Mr Hester donated.
The Labour leader told ITV’s Lorraine: “The comments about Diane Abbott are just abhorrent.
“And Diane has been a trailblazer, she has paved the way for others, she’s probably faced more abuse than any other politician over the years on a sustained basis.
“And I’m sorry, this apology this morning that is pretending that what was said wasn’t racist or anything to do with the fact she’s a woman, I don’t buy that I’m afraid, and I think that it’s time the Tory party called it out and returned the money.”
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Khan demands PM ‘grow a backbone’
The PM has not directly commented on the demands, nor has the Conservative Party.
Asked if the party should return Mr Hester’s donations, Mr Stuart said: “We can’t cancel anybody from participation in public life, or indeed, donating to parties because they said something intemperate or wrong in their past.”
Over a third of people think Rachel Reeves exaggerated economic bad news in the run-up to the budget – twice as many as thought the chancellor was being honest, a new Sky News poll has found.
Some 37% told a YouGov-Sky News poll that Ms Reeves made out things were worse than they really are. This is much higher than the 18% who said she was broadly honest, and the 13% who said things were better than she presented.
This comes in an in-depth look at the public reaction to the budget by YouGov, which suggests widespread disenchantment in the performance of the chancellor.
Just 8% think the budget will leave the country as a whole better off, while 2% think it will leave them and their family better off.
Some 52% think the country will be worse off because of the budget, and 50% think they and their family will be worse off.
This suggests the prime minister and chancellor will struggle to sell last week’s set-piece as one that helps with the cost of living.
Some 20% think the budget worried too much about help for older people and didn’t have enough for younger people, while 23% think the reverse.
The poll found 57% think the chancellor broke Labour’s election promises, while 13% think she did not and 30% are not sure. Some 54% said the budget was unfair, including 16% of Labour voters.
And it arguably gets worse…
This comes as the latest Sky News-Times-YouGov poll showed Labour and the Tories are now neck and neck among voters.
The two parties are tied on 19% each, behind Reform UK on 26%. The Greens are on 16%, while the Liberal Democrats are on 14%.
This is broadly consistent with last week, suggesting the budget has not had a dramatic impact on people’s views.
However, the verdict on Labour’s economic competence has declined further post-budget.
Asked who they would trust with the economy, Labour are now on 10% – lower than Liz Truss, who oversaw the 2022 mini-budget, and also lower than Jeremy Corbyn in the 2019 election.
The Tories come top of the list of parties trusted on the economy on 17%, with Reform UK second on 13%, Greens on 8% and Lib Dems on 5%. Nearly half, 47%, don’t know or say none of them.
Only 57% of current Labour voters say the party would do the best job at managing the economy, falling to 25% among those who voted Labour in the 2024 election.
Some 63% of voters think Ms Reeves is doing a bad job, including 20% of current Labour voters, while just 11% of all voters think she is doing a good job.
A higher proportion – 69% – think Sir Keir Starmer is doing a bad job.
Paul Atkins, chair of the US Securities and Exchange Commission, said that the agency can continue advancing digital asset regulation without legislation from Congress, signaling his expectations for the industry in 2026.
In a CNBC interview released on Tuesday, Atkins said the SEC was providing “technical assistance” as Congress considered legislation for digital asset regulation, likely referring to the market structure bill working its way through the US Senate. Atkins said that although the agency’s operations were impacted by the longest US government shutdown in the country’s history, he continued to make progress on “rules that are focused on helping [the crypto] sector.”
“We have enough authority to drive forward,” said Atkins. “I’m looking forward to having an innovation exemption that we’ve been talking about now. We’ll be able to get that out in a month or so.”
SEC Chair Paul Atkins speaking on Tuesday before the NYSE opening bell. Source: Vimeo
Atkins, whom the US Senate confirmed to chair the SEC in April after his nomination by US President Donald Trump, has taken steps to reduce the number of enforcement actions against crypto companies, including by issuing no-action letters for decentralized physical infrastructure networks.
His actions align with many of the policy directives from the White House under Trump, who has issued several executive orders touching on crypto and blockchain.
The SEC chair rang the opening bell at the NYSE on Tuesday, outlining his plans for the agency “on the cusp of America’s 250th anniversary.”
US regulators are still awaiting progress on a market structure bill
Lawmakers on the US Senate Agriculture Committee and the Senate Banking Committee are taking steps to move forward with a digital asset market structure bill, which will outline the regulatory authority of agencies, including the SEC and Commodity Futures Trading Commission, over cryptocurrencies.
Senate Banking Chair Tim Scott said that the committee planned to have the bill ready for markup in December.
An official from the Bank of Russia suggested easing restrictions on cryptocurrencies in response to the sweeping sanctions imposed on the country.
According to a Monday report by local news outlet Kommersant, Bank of Russia First Deputy Governor Vladimir Chistyukhin said the regulator is discussing easing regulations for cryptocurrencies. He explicitly linked the rationale for this effort to the sanctions imposed on Russia by Western countries following its invasion of Ukraine in February 2022.
Chistyukhin said that easing the crypto rules is particularly relevant when Russia and Russians are subject to restrictions “on the use of normal currencies for making payments abroad.”
Chistyukhin said he expects Russia’s central bank to reach an agreement with the Ministry of Finance on this issue by the end of this month. The central issue being discussed is the removal of the requirement to meet the “super-qualified investor” criteria for buying and selling crypto with actual delivery. The requirement was introduced in late April when Russia’s finance ministry and central bank were launching a crypto exchange.
The super-qualified investor classification, created earlier this year, is defined by wealth and income thresholds of over 100 million rubles ($1.3 million) or an annual income of at least 50 million rubles.
This limits access to cryptocurrencies for transactions or investment to only the wealthiest few in Russian society. “We are discussing the feasibility of using ‘superquals’ in the new regulation of crypto assets,” Chistyukhin said, in an apparent shifting approach to the restrictive regulation.
Russia has been hit with sweeping Western sanctions for years, and regulators in the United States and Europe have increasingly targeted crypto-based efforts to evade those measures.
In late October, the European Union adopted its 19th sanctions package against Russia, including restrictions on cryptocurrency platforms. This also included sanctions against the A7A5 ruble-backed stablecoin, which EU authorities described as “a prominent tool for financing activities supporting the war of aggression.”