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British banks should abandon outdated ethical standards and increase lending to domestic defence manufacturers in a “patriotic” effort to ensure the UK can meet its security needs, defence suppliers have told Sky News.

The defence industry has long complained that environment, sustainability and governance (ESG) standards, intended to guide business impact on society, have prevented small and medium-sized companies (SMEs) raising finance.

With the government promising to increase defence spending to 2.5% of GDP, and the chancellor keen that SMEs in the sector should contribute increased growth, the industry believes ESG rules could hold British companies back.

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What a British Army vehicle is like

Lizzie Jones of Supacat, which manufactures military vehicles used by special forces and infantry, told Sky News: “We have absolutely felt the disinterest from banks to invest in the defence industry, which has been really hard to deal with over the last few years.

“We’re hoping that the tide is beginning to change, and that actually some of the patriotic feelings that we need the defence industry, particularly right now, will help persuade the banks that investing in defence industries is good for UK growth.”

The call for support from the defence industry comes as European military chiefs meet in London to discuss operational aspects of a proposed peacekeeping force in Ukraine.

Donald Trump’s return to the White House, and his demand that European NATO partners scale up defence and lead any security guarantees for Ukraine, has forced a re-examination of defence priorities.

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Rachel Reeves has sought to link increased spending to her growth agenda, and defence will form part of the industrial strategy due later this year.

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Defence spending boost ‘not a one-off thing’

Earlier this month a group of Labour MPs, and members of the defence select committee, called on banks to end “anti-defence” ESG guidelines in light of the US retreat from European security, and the need to increase support for Ukraine.

Improved access to finance is one of several demands from defence suppliers large and small, as the industry prepares for increased demand.

Certainty of contracts, a reduction in Ministry of Defence red tape, and access to cheap energy, skilled workers and critical minerals are all also required if the UK is to enjoy “sovereign capability” – the ability to build and deploy its own equipment, weapons and systems.

The call for a re-examination of ethical standards was echoed by one of the largest defence suppliers, Leonardo UK, the British arm of an Italian-listed multinational that manufactures helicopters and electronic warfare technology.

Chief executive Clive Higgins told Sky News: “The ESG agenda was really impacting small to medium enterprises where no banking was effectively taking place, and individuals couldn’t go get a bank account because they were in the defence sector.

“We’ve seen a real, really proactive response from the government over the last 12 months. I think we’re starting to see a shift in the tragic events going on in Ukraine, which helps people recognise the importance of defence at home, because that ensures we can enjoy the freedoms that you and I take for granted each day.”

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EU reveals ‘rearmament plan’

The UK Sustainable Finance Association, which represents a number of major investors and pension funds, rejected the argument that the defence industry is “underinvested”.

Chief executive James Alexander said: “The notion that defence firms’ low valuations and struggles for finance is because of ‘ESG’ criteria is nonsense.

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“The UK’s ‘ESG’ (or sustainable finance) regulations at no point prohibit defence investments. While some values-based (or ‘ethical’) investors may opt against investing in defence companies, they represent a small proportion of the financial system.

“Many financial institutions, including mainstream, sustainable investors, do invest in defence. Most critical to defence companies’ prospects, though, is government spending, as highlighted by the rise in several defence stocks this year, as the UK and European allies have understandably announced increases in defence spending.”

The Financial Conduct Authority said last month that its ESG reporting rules contain nothing “that prevents investment or finance for defence companies”, implying that divesting from or avoiding defence is a choice for institutions and their customers.

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Rail worker who protected passengers during mass stabbing on Huntingdon train discharged from hospital

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Rail worker who protected passengers during mass stabbing on Huntingdon train discharged from hospital

The train crew member who was seriously injured while trying to protect passengers during a mass stabbing has been discharged from hospital.

Samir Zitouni, 48, known as Sam, was working on board the London North Eastern Railway (LNER) train from Doncaster to London when the attack began in Cambridgeshire on Saturday 1 November.

LNER said Mr Zitouni, who has worked for the firm for more than 20 years, was credited with helping to save multiple lives.

Mr Zitouni had been in a critical condition, having suffered multiple injuries in the incident, but was discharged on Saturday.

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Mahmood praises rail worker

His family said: “We are so grateful for the outpouring of support from the public, and very touched by all the kind words about Sam’s brave actions on the night of the attack.

“While we are really happy to have him home, he still has a significant recovery ahead and we would now like to be left in privacy to care for him as a family.”

Earlier this month, LNER said he has been a “valued member” of staff for over 20 years, working on board as a customer experience host.

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Train mass stabbing: A timeline of events

David Horne, managing director at LNER, said: “In a moment of crisis, Sam did not hesitate as he stepped forward to protect those around him.

“His actions were incredibly brave, and we are so proud of him, and of all our colleagues who acted with such courage that evening. Our thoughts and prayers remain with Sam and his family. We will continue to support them and wish him a full and speedy recovery.”

The attack is understood to have started shortly after the train left Peterborough, with passengers pulling the emergency alarms on the LNER service.

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Police believe train attacker filmed waving knife

Train driver Andrew Johnson, who served in the Royal Navy for 17 years, contacted a signaller and requested an unscheduled stop at Huntingdon station.

11 people were treated in hospital after the mass stabbing – nine were initially reported as having life-threatening injuries.

Anthony Williams, 32, was remanded into custody at Peterborough Magistrates’ Court on November 3, charged with 10 counts of attempted murder over the incident.

He will appear at Cambridge Crown Court on 1 December.

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Donald Trump confirms he will sue the BBC over Panorama edit – despite broadcaster’s apology

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Donald Trump confirms he will sue the BBC over Panorama edit - despite broadcaster's apology

Donald Trump has said he will sue the BBC for between $1bn and $5bn over the editing of his speech on Panorama.

The US president confirmed he would be taking legal action against the broadcaster while on Air Force One overnight on Saturday.

“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he told reporters.

“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”

Mr Trump then told reporters he would discuss the matter with Prime Minister Sir Keir Starmer over the weekend, and claimed “the people of the UK are very angry about what happened… because it shows the BBC is fake news”.

The Daily Telegraph reported earlier this month that an internal memo raised concerns about the BBC’s editing of a speech made by Mr Trump on 6 January 2021, just before a mob rioted at the US Capitol building, on its flagship late-night news programme.

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BBC crisis: How did it happen?

The concerns regard clips spliced together from sections of the president’s speech to make it appear he told supporters he was going to walk to the US Capitol with them to “fight like hell” in the documentary Trump: A Second Chance?, which was broadcast by the BBC the week before last year’s US election.

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Following a backlash, both BBC director-general Tim Davie and BBC News chief executive Deborah Turness resigned from their roles.

‘No basis for defamation claim’

On Thursday, the broadcaster officially apologised to the president and added that it was an “error of judgement” and the programme will “not be broadcast again in this form on any BBC platforms”.

A spokesperson said that “the BBC sincerely regrets the manner in which the video clip was edited,” but they also added that “we strongly disagree there is a basis for a defamation claim”.

Earlier this week, Mr Trump’s lawyers threatened to sue the BBC for $1bn unless it apologised, retracted the clip, and compensated him.

The US president said he would sue the broadcaster for between $1bn and $5bn. File pic: PA
Image:
The US president said he would sue the broadcaster for between $1bn and $5bn. File pic: PA

Legal challenges

But legal experts have said that Mr Trump would face challenges taking the case to court in the UK or the US.

The deadline to bring the case to UK courts, where defamation damages rarely exceed £100,000 ($132,000), has already expired because the documentary aired in October 2024, which is more than one year.

Also because the documentary was not shown in the US, it would be hard to show that Americans thought less of the president because of a programme they could not watch.

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Sky’s Katie Spencer on what BBC bosses told staff on call over Trump row

Newsnight allegations

The BBC has said it was looking into fresh allegations, published in The Telegraph, that its Newsnight show also selectively edited footage of the same speech in a report broadcast in June 2022.

A BBC spokesperson said: “The BBC holds itself to the highest editorial standards. This matter has been brought to our attention and we are now looking into it.”

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Banksy art theft lands burglar with 13-month prison sentence

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Banksy art theft lands burglar with 13-month prison sentence

A man has been given a 13-month prison sentence for stealing Banksy’s famous Girl With Balloon print from a London gallery.

Larry Fraser, 49, of Beckton, east London, was sentenced on Friday after pleading guilty to one count of non-residential burglary at Kingston Crown Court on 9 October.

The print, one of the street artist‘s most famous, was stolen from a gallery in New Cavendish Street in London at around 11pm on 8 September last year.

The recovered artwork back in the gallery. Pic: Metropolitan Police
Image:
The recovered artwork back in the gallery. Pic: Metropolitan Police

Fraser used a hammer to smash his way through a glass entrance door at the Grove Gallery before stealing the artwork, which was valued at £270,000.

He concealed his identity with a mask, hooded jacket and gloves, but the Metropolitan Police’s Flying Squad was able to identify him and track him to a location streets away.

He was also caught on CCTV loading the artwork into a van before fleeing the scene.

A second man, 54-year-old James Love, was accused of being the getaway driver in the burglary, but cleared of stealing the print.

Larry Fraser. Pic: Metropolitan Police
Image:
Larry Fraser. Pic: Metropolitan Police

Damage to the Grove Gallery after the theft. Pic: Metropolitan Police
Image:
Damage to the Grove Gallery after the theft. Pic: Metropolitan Police

Fraser was arrested at his home address on 10 September, within 48 hours of the burglary, and charged the next day.

Officers were able to recover the artwork after executing a warrant on the Isle of Dogs. It has now been returned to the gallery.

Fraser pleaded to the court that he was struggling with a historic drug debt and agreed to steal the work “under a degree of pressure and fear”.

He said he did not know what he would be stealing, nor its value, until the day of the offence.

Fraser was caught on CCTV taking the artwork away from the gallery. Pic: Metropolitan Police
Image:
Fraser was caught on CCTV taking the artwork away from the gallery. Pic: Metropolitan Police

Jeffrey Israel, defending, said Fraser lived with his mother as her principal carer, and had only managed to “break his cycle of drug addiction” after his last prison sentence.

He added that it “would take a bold advocate” to suggest that the value of the print had increased by the burglary, but insisted “that is probably the reality”.

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Judge Anne Brown was unmoved, however, and said the offence was “simply too serious” for a suspended sentence.

“This is a brazen and serious non-domestic burglary,” she said.

“Whilst you did not know the precise value of the print, you obviously understood it to be very valuable.”

She added: “Whilst I am sure there was a high degree of planning, this was not your plan.”

However, Fraser may be eligible for immediate release due to time spent on electronic curfew.

Detective Chief Inspector Scott Mather, who led the Met’s investigation, said: “Banksy’s Girl With Balloon is known across the world – and we reacted immediately to not just bring Fraser to justice but also reunite the artwork with the gallery.

“The speed at which this took place is a testament to the tireless work of the flying squad officers – in total it took just four days for normality to be restored.”

The 2004 artwork was part of a £1.5m collection of 13 Banksy pieces at the gallery.

Gallery manager, Lindor Mehmetaj, said it was “remarkable” for the piece to have been recovered after the theft.

The 29-year-old said: “I was completely, completely shocked, but in a very, very positive way when the Flying Squad showed me the actual artwork.

“It’s very hard to put into words, the weight that comes off your shoulders.”

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