China responsible for two ‘malicious’ cyber attack campaigns in UK, says Dowden

Published

2 years ago

March 25, 2024

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China “state-affiliated actors” have been blamed by the government for two “malicious” cyber attack campaigns in the UK.

Making a speech in the Commons, Deputy Prime Minister Oliver Dowden revealed the two incidents involved an attack on the Electoral Commission – responsible for overseeing elections and political finance – in 2021, and targeted attacks against China-sceptic MPs.

He confirmed the Foreign Office would be summoning the Chinese ambassador “to account for China’s conduct in these incidents”, and that the UK, alongside international partners such as the US, would be issuing sanctions.

Mr Dowden told MPs: “The cyber threat posed by China affiliated actors is real and it is serious, but it is more than equalled by our determination and resolve to resist it.

“That is how we defend ourselves and our precious democracy.”

But he faced condemnation from backbench Tories for not going far enough, with former immigration minister Robert Jenrick calling the actions of the UK government “feeble” and “derisory”, and foreign affairs committee chair Alicia Kearns deeming them “sadly insufficient”.

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According to the National Cyber Security Centre, the incident at the commission, discovered in 2022, saw the Electoral Roll compromised, including the names and addresses of tens of millions of voters.

But “reconnaissance activity” in 2021, targeting the accounts of former Tory leader Sir Iain Duncan Smith, former Conservative education minister Tim Loughton, crossbench peer Lord Alton of Liverpool and SNP MP Stewart McDonald was unsuccessful.

The latter of the campaigns was blamed on the APT31 group, also known as Judgement Panda or Zirconium, but a specific entity has not been named for the Electoral Commission attack.

However, the Foreign Office has confirmed it is placing sanctions on a front company, the Wuhan Xiaoruizhi Science and Technology Company, and two actors involved in the operations of APT31, Zhao Guangzong and Ni Gaobin – a move echoed by the US government.

Dowden: Attacks completely unacceptable

Mr Dowden said the two cyber attack campaigns were “completely unacceptable” and demonstrated “a clear and persistent pattern of behaviour that signal signals hostile intent from China”.

He added: “The UK does not accept that China’s relationship with the United Kingdom is set on a predetermined course. But this depends on the choices that China makes.

“That is why the Foreign Office will be summoning the Chinese ambassador to account for China’s conduct in these incidents.

“The UK’s policy towards China is anchored in our core national interests. Where it is consistent with these interests, we will engage with the Chinese government.

“But we will not hesitate to take robust actions wherever the Chinese government threatens the United Kingdom’s interests.”

But in response to the cyber attacks highlighted by the UK government, a Chinese Embassy spokesperson said the accusations were “completely fabricated and malicious slanders”.

They added: “China has always firmly fought all forms of cyber attacks according to law. China does not encourage, support or condone cyber attacks.

“At the same time, we oppose the politicisation of cyber security issues and the baseless denigration of other countries without factual evidence.

“We urge the relevant parties in the UK to stop spreading false information and stop their self-staged, anti-China political farce.”

Those MPs targeted by the attacks – all members of the Inter-Parliamentary Alliance on China (IPAC) who probe Beijing’s activities – were briefed by parliament’s director of security on Monday.

‘MPs will not be bullied into silence by Beijing’

Speaking at a press conference afterwards, Sir Iain said the group had been “subjected to harassment, impersonation and attempted hacking from China for some time”, but insisted MPs would not be “bullied into silence by Beijing”.

He called for a “watershed moment” from the government that would see the UK “take a stand for values of human rights and the international rules-based system on which we all depend”.

However, speaking in the Commons after Mr Dowden’s statement, Sir Iain described his words as “like an elephant giving birth to a mouse”, as he called for further sanctions on China – especially over its actions in Hong Kong – and for the country to be defined as a “threat”.

Foreign Secretary Lord Cameron has been briefing the 1922 Committee of backbench Conservative MPs on the measures, a number of whom have now publicly called for more robust action to be taken against China as a result of the cyber attacks.

Speaking to broadcasters afterwards, Mr Dowden addressed his critics by saying: “I would say this isn’t the end of the story. We will continue to take the necessary and proportionate steps to protect our democratic institutions.”

A clear reminder the cyber threat is constant

Tom Clarke

Science and technology editor

@t0mclark3

The fact China is attempting to spy on the UK and others online should come as no surprise.

This latest announcement from government is more of reminder that the activity is constant, and increasingly sophisticated.

The UK’s National Cyber Security Centre has now implicated a Chinese-backed hacking group APT31 of attempting to target a group of MPs.

There’s a clue in the name: Advanced Persistent Threat is cybersecurity speak for groups usually backed by governments.

A long list From APT16 to APT 41 are hacking groups each with their own techniques and target areas suspected of being run by the Chinese state.

It’s suggested APT 31 used “spear phishing” to attempt to spy on members of the Inter Parliamentary Alliance on China. The same as phishing – in which a malicious file, usually typically embedded in an innocent-looking link in a email – spear phishing is targeted at a specific individual or group.

We have less information on the hack of the Electoral Commission back in 2021, which has now also been attributed to China. In this instance the hackers are believed to have had persistent access to the Electoral Commission’s systems for months.

In response, the NCSC has updated guidance for political organisations and other institutions who could be at threat from such attacks, including updated guidance on sophisticated threat called “living off the land”.

This is a type of “fileless” attack that exploits native code used to manage server networks operated by large providers like Microsoft. Via an intrusion like a phishing attack, malicious code, disguised to look normal, is inserted straight into the target system’s operating instructions bypassing virus scanning software.

The danger of this type of attack is that it’s hard for online security teams to spot that an intrusion has happened, or to monitor the activity of hackers. Without very vigilant cybersecurity, hacks like this have been found to have persisted for long periods of time.

Last year Microsoft announced a “living off the land” attack by Chinese-backed hacker group Volt Typhoon had been used to infiltrate US utilities and critical infrastructure companies from 2021 onwards.

It is the latest incident to highlight growing pressure on Prime Minister Rishi Sunak from within his own party to take a tougher stance on China, having so far refused to brand the country a threat.

Speaking ahead of Mr Dowden’s statement, the prime minister said: “We’ve been very clear that the situation now is that China is behaving in an increasingly assertive way abroad, authoritarian at home and it represents an epoch-defining challenge, and also the greatest state-based threat to our economic security.

“So, it’s right that we take measures to protect ourselves, which is what we are doing.”

A Downing Street source also told Sky News Mr Sunak had “always had a robust position on China”, but it would “not be a sensible thing to do” to “cut all links” with Beijing, and instead the government took a “eyes wide open approach” to its activities.

Politics

Budget 2025: Hospitality pleads for ‘lifeline’ as Rachel Reeves accused of imposing ‘stealth tax’

Published

2 hours ago

November 29, 2025

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Budget 2025: Hospitality pleads for 'lifeline' as Rachel Reeves accused of imposing 'stealth tax'

Rachel Reeves has been accused of failing to “support the great British pub” as she promised in the budget, with owners facing skyrocketing business rates bills.

In her speech in the House of Commons on Wednesday, the chancellor said she was backing small businesses by introducing “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties – the lowest tax rates since 1991”.

But while the government gave itself the powers to discount the business rates bills for high street businesses through legislation earlier this year, the chancellor only implemented a reduction of a quarter of what the government is able to, and she is being accused of imposing a “stealth tax”.

It has left small retail, hospitality, and leisure businesses questioning whether their businesses will be viable beyond April next year.

A Treasury spokesperson said: “We’re protecting pubs, restaurants and cafes with the budget’s £4.3bn support package – capping bill rises so a typical independent pub will pay around £4,800 less next year than they otherwise would have.

“This comes on top of cutting licensing costs to help more venues offer pavement drinks and al fresco dining, maintaining our cut to alcohol duty on draught pints, and capping corporation tax.”

Business rates, which are a tax on commercial properties in England and Wales, are calculated through a complex formula of the value of the property, assessed by a government agency every three years, combined with a national “multiplier” set by the Treasury, giving a final cash amount.

Over the last few years, small businesses were given business rates relief of 75% to support them over the COVID pandemic, and Ms Reeves reduced that to 40% at last year’s budget.

The idea was that at the budget this year, the chancellor would remove that remaining relief in favour of reforming the business rates system to compensate for that drop, while shifting the tax burden on to much bigger businesses and companies like Amazon with lots of warehouse space.

However, the chancellor only announced a 5p in the pound discount for small retail, hospitality, and leisure businesses, rather than the assumed 20p drop which the government gave itself the powers to implement, and which trade bodies had been lobbying for.

On top of that, small businesses have seen the government-assessed value of their property increase dramatically, which wipes out the discount, and sees their business rates bill shoot far above what they had previously been paying.

One pub owner near Hull, Sam Caroll, has seen the assessed value of one of his two properties increase from £67,000 to £110,000 in just three years – a 64% increase.

He told Sky News that there is a “continual question” of business viability, and while he thinks they can “adapt” in the short term, “there will be a tipping point at some point”. Even at the moment, packing out their pubs seven nights a week, “it’s difficult for us to break even”, he said.

There will be a discount for small businesses to transition to the higher business rates level, but by year three, almost the full amount is expected to be payable, and Mr Carroll described it as “getting f***** slowly, instead of getting f***** overnight”.

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Sean Hughes, who owns multiple hospitality venues in St Albans, has also seen vast increases in the assessed value of his properties, and was sharply critical of the transitional arrangements the government is implementing.

He told Sky News: “Fundamental business rate reform was promised and we have total chaos. If [the system] was fair, why would they need transitional relief periods?”

A spokesperson of the Valuation Office Agency (VOA), which assesses the value of commercial properties for business rates purposes, told Sky News: “At the last revaluation, some sectors including hospitality were significantly affected by the pandemic, which resulted in much lower rateable values than they would have seen otherwise. Businesses that have now seen a recovery in trade are also likely to see an increase in their rateable value.”

However, Sky News has seen evidence of businesses whose assessed value did not decrease when assessed during the pandemic, but actually rose, and has risen dramatically this year.

Data compiled by the Pubs Advisory Service, shows that the number of pubs in the UK has decreased by nearly 5% in three years, but the average value of the properties has risen by an average of 36.82% per pub.

And analysis by UK Hospitality, the trade body that represents hospitality businesses, has found that over the next three years, the average pub will pay an extra £12,900 in business rates, even with the transitional arrangements, while an average hotel will see its bill soar by £205,200.

The body adds that by 2028/29, an average pub’s business rates will have increased by 76% and an average hotel’s by 115%, compared to 16% for a distribution warehouse like the ones the web giants use.

It’s not just the business rates rise that is worrying owners – it is the increase in employers’ national insurance implemented at the last budget, the increase in energy bills over the last few years, and the rise in the minimum wage, particularly for young people.

With the budget set to squeeze disposal income, there is little room for price increases to make up the shortfall either.

In a letter to the chancellor on Friday, Liberal Democrat deputy leader Daisy Cooper said small business owners “have been pushed to tears as they’re hit with the bombshell of higher business rates bills”, noting that “the government has chosen not to use the full powers it gave itself to throw high streets a lifeline”.

She added that businesses had been promised “permanently lower business rates”, but it appears the government has “broken yet another promise, by imposing a stealth tax not just on people, but on treasured high street businesses too”, and called on ministers to “throw our high streets and Britain’s hospitality sector a lifeline”.

Conservative shadow business secretary Andrew Griffith published his own analysis of the government’s budget measures on Friday morning, that found they will “hammer British pubs”.

Of the chancellor, he said: “She pretended in her budget speech to be supportive, whilst the true detail is that a combination of rate revaluations and scrapping reliefs will leave most pubs paying thousands of pounds more than they cannot afford.”

Kate Nicholls, Chair of UKHospitality, said in a statement: “The government promised in its manifesto that it would level the playing field between the high street and online giants. The plan in the budget to achieve this is quickly unravelling, and will deliver the exact opposite.”

She said they “repeatedly warned the Treasury” of the impending impacted of the value reassessment, but nonetheless, hospitality businesses are now facing “eye-watering increases”.

She added: “We agree with its reforms to deliver permanently lower business rates for hospitality and we appreciate the package of transitional relief, but its current proposal is not delivering lower bills. A 20p discount for hospitality would. We urge the chancellor to revisit.”

Politics

Polymarket puts December rate-cut odds at 87% as crypto stocks climb

Published

8 hours ago

November 28, 2025

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Polymarket puts December rate-cut odds at 87% as crypto stocks climb

Several crypto-linked stocks climbed on Friday as prediction-market odds of a December rate cut surged to 87% on Polymarket, the highest level this month.

Three US-listed Bitcoin miners led the rally, with Cleanspark, Riot Platforms and Cipher Mining all rising in the session and showing double-digit gains over the past five days.

Federal Reserve, United States, Predictions — *Probability of a US rate cut in December. Source:* *Polymarket*

Yahoo Finance data showed Circle, the issuer of USDC, jumped nearly 10% in early trading, while Michael Saylor’s Strategy and Coinbase notched more modest increases at the time of writing.

Bitcoin (BTC) was also up around 7% on the week, after dropping to around $82,000 on Nov. 21, according to CoinGecko data.

Much of the volatility in prediction-market pricing this month has been driven by comments from Federal Reserve officials.

On Oct. 29, Fed Chair Jerome Powell said a December cut was “not a foregone conclusion,” a remark investors took as hawkish — which means the Fed could delay rate cuts and keep conditions tight. Polymarket odds slipped from 89% the day before to as low as 22% by Nov. 20.

Sentiment shifted on Nov. 17 after Fed Governor Christopher Waller said the central bank should consider cutting rates next month, arguing that “the labor market is still weak and near stall speed” and that inflation is now “relatively close” to the Fed’s 2% target.

Prediction markets expand as demand surges

Prediction markets, such as Kalshi and Polymarket, which enable bettors to wager on the outcomes of real-world events, have expanded their reach and influence this year.

On Nov. 13, Polymarket inked a multi-year agreement with TKO Group Holdings to serve as the official prediction-market partner for the Ultimate Fighting Championships and Zuffa Boxing. The partnership came shortly after it partnered with North American fantasy sports operator PrizePicks.

The same month, Kalshi raised $1 billion from Sequoia Capital and CapitalG, pushing its valuation to $11 billion, according to a TechCrunch report citing a person familiar with the deal. The new round followed a $300 million raise in October.

On Nov. 19, rumors emerged that Coinbase is developing its own prediction-market platform after tech researcher Jane Manchun Wong posted screenshots of an unreleased site. Wong’s images indicated the product would be offered through Coinbase Financial Markets and backed by Kalshi.

On Wednesday, Robinhood said prediction markets have quickly become one of its fastest-growing revenue drivers, with more than one million users trading nine billion contracts since the product launched in March through a partnership with Kalshi.

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