The government has “drawn a line” under the Frank Hester race row and shouldn’t have to give back the money he donated, Kemi Badenoch has said.
The business secretary, who was the first cabinet minister to break ranks and label his reported comments about Diane Abbott as racist last week, suggested she would be comfortable accepting further money from the Tory donor.
Speaking to Sky News, she said she decided to condemn the remarks ahead of her colleagues because as the equalities minister and the only black woman in cabinet “this was something that it was important that I spoke up about”.
Asked if she would feel comfortable accepting further donations from Mr Hester, she said: “I think if somebody has apologised and the comments appear to have been first of all very flippant, said a long time ago, I think it is fine for us to be able to accept and forgive and draw a line under it.
“Obviously, if something else happens in the future that might be something that we reconsider.
“In regards to donations to the party, people keep asking me, ‘do you think the money should be kept’? I have been very clear that, yes, I do think so.”
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Mr Hester, who donated £10m to the Tories last year, is reported to have said that left-wing MP Ms Abbott made him “want to hate all black women” and that she “should be shot”.
Ms Badenoch was the first cabinet minister to break ranks and say the comments were “racist” – though she added at the time that there should be space for “forgiveness”.
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Until this point, ministers had said the comments were “wrong” but did not go as far as calling them racist.
Downing Street had also refused to call the remarks “racist”, insisting instead that they were “unacceptable”.
Prime Minister Rishi Sunak later condemned the remarks as “racist and wrong”, but he has continued to face calls to return the money Mr Hester has donated and confirm whether a further £5m is in the pipeline.
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Sky News understands the government is “in talks” about this extra money which, if accepted, would take the amount Mr Hester has donated to the party in the last year to £15m.
In other media interviews this morning, Ms Badenoch branded continued interest in the story “pure media bubble speculation”, saying on BBC Breakfast that it is only dominating front pages because “you are not interested in the work that the government is doing”.
On LBC, she said: “This was something that happened five years ago. He wasn’t talking to Diane Abbott, it wasn’t even really about Diane Abbott.”
Ms Badenoch’s remarks reflect a government determined to move on from a row that dominated what some have dubbed Mr Sunak’s worst week in office.
The embattled prime minister has also faced rumours of a plot to replace himandthe defection of former Tory deputy chairman Lee Anderson to the Reform party.
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‘Sunak will still be Tory leader at next general election’
He is seeking to shift the political debate to the gradually improving economic outlook as he tries to shore up his leadership.
Launching a fightback last night, Mr Sunak vowed that 2024 “will be the year Britain bounces back” in comments released by Downing Street.
Later today he will set out reforms to boost apprenticeships and cut red tape for small businesses, at a conference in Warwickshire that is being hosted by Ms Badenoch.
Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.
It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.
But the prime minister looked to quell fears as he resisted calls to change course.
Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”
The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.
And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.
Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.
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He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”
Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.
Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.
However, that number has been questioned by several farming groups and the Conservatives.
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2:28
Farming industry is feeling ‘betrayed’ – NFU boss
Government figures ‘misleading’
The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.
The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.
Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.
Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.
Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.
APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).
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Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.
Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.
A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.
Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.
She voted against assisted dying in 2015 and said: “I haven’t changed my mind.
“I continue to think about this deeply. But my position hasn’t changed since 2015.”
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2:41
Details of end of life bill released
MPs will be given a free vote on the bill, so they will not be told how to vote by their party.
The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.
Ms Phillipson joins some other big names who have publicly said they are voting against the bill
These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.
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Border security minister Angela Eagle is also voting against the bill.
Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.
The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.
Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.
He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.
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Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.
It would only be allowed for terminally ill people who have been given six months to live.
Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.