Connect with us

Published

on

If one were to compile a list of some of the most prestigious blue-chip UK employers, it would probably include NatWest, BP, Shell, Aviva, the John Lewis Partnership, Virgin Media O2, WPP, Phoenix Group, BT, PwC, EY, Schroders and AstraZeneca.

Were that list to be enhanced with prestigious foreign-owned businesses that are major employers in the UK, and which enjoy a meaningful UK presence, it would probably extend to take in names such as BMW, Mastercard, Ford, Fidelity, Jaguar Land Rover and JP Morgan.

That underlines the crisis now engulfing the CBI.

All of those companies have either paused their engagement with the employers’ organisation or cancelled their membership altogether in the wake of the latest allegations consuming the CBI.

It was bad enough that the CBI felt obliged to dismiss its former director-general, Tony Danker, amid allegations of workplace misconduct.

What made it worse was a report in The Guardian, the newspaper that first published details of the allegations against Mr Danker, that a former CBI employee had filed a complaint that she was raped at a party hosted by the organisation back in 2019.

That has now been made worse still by a second woman coming forward to say she had been raped by colleagues while working for the CBI.

More on Cbi

Please use Chrome browser for a more accessible video player

Former CBI boss: ‘I’m a fall guy’

It is not now over-exaggerating to say that this has become an existential crisis for the CBI.

An organisation that has in the past proved an extremely effective lobbyist for business has now been twice hobbled – first by government ministers distancing themselves from it and now by members distancing themselves from it.

It is no coincidence that among the first companies to announce today that they were pausing or cancelling their involvement with the CBI were ones led by women: NatWest, whose chief executive is Dame Alison Rose; Aviva, whose chief executive is Amanda Blanc and the John Lewis Partnership, chaired by Dame Sharon White.

All three are role models for women in business and for female entrepreneurs.

All have devoted significant time, energy and expertise to advancing career opportunities for women in the workplace.

All three will have been dismayed – to put it lightly – at some of the horrifying allegations now being aired concerning the CBI.

Please use Chrome browser for a more accessible video player

CBI allegations a ‘wake up call’ to all businesses: former Siemens chief executive

The organisation has not helped itself.

The circumstances surrounding Mr Danker’s departure have not been properly explained by the CBI to the extent that Mr Danker himself gave an anguished interview with the BBC in which he effectively accused the organisation of subjecting him to a kangaroo court-style process.

This is partly because the organisation is currently rudderless.

Mr Danker’s successor, the former CBI chief economist Rain Newton-Smith, left more than a month ago to take up a senior position at Barclays and a date for her to return to the CBI has yet to be agreed. One wonders now if she will even do so.

It would be no surprise to learn that Ms Newton-Smith, who is currently mourning her father, the distinguished scientist William Newton-Smith, had decided to stay at Barclays after all. No one would blame her.

In the meantime, the organisation’s communications with the outside world have been fronted by its president Brian McBride, who gave an interview to the Financial Times last Saturday and one to BBC Radio 4’s Today programme on Wednesday.

Neither would be described, even by those retaining a modicum of sympathy for the CBI, as a triumph.

Read more from Sky News:
Wet weather adds to cost of living gloom as retail sales dip

MPs call for workers’ rights watchdog to bolster labour protections
Massive spike in concert and festival scams, report finds

It is hard to see how the CBI comes back from this. A once-distinguished and influential organisation has seen its reputation reduced to rubble in a matter of days.

That is not to say that an organisation like the CBI will not emerge from its ashes.

Please use Chrome browser for a more accessible video player

CBI feels ‘devastated’

Every advanced economy around the world boasts an organisation like the CBI, such as the US Chamber of Commerce, the Bundesverband der Deutschen Industrie or the Keidanren in Japan. If the CBI did not exist, someone would have to invent it.

And, as it happens, some business people are already thinking along those lines.

Simon Walker, the highly respected former director-general of the Institute of Directors, called in The Times today for the UK’s five leading business lobby groups – the IoD, the CBI, the British Chambers of Commerce, Make UK and the Federation of Small Businesses – to come together to form a unified organisation representing businesses large and small rather as the TUC represents the entire trade union movement.

These organisations enjoy some able leaders, such as Stephen Phipson at Make UK and Shevaun Haviland at the BCC, both of whom are perfectly capable of heading such an integrated body. As, for that matter, is Mr Walker himself.

A merger of these groupings feels like an idea whose time has come.

However, thanks to the fearsome reputational battering it has received in recent days, the CBI feels like an organisation whose time is up.

Continue Reading

Business

Discord hack shows dangers of online age checks as internet policing hopes put to the test

Published

on

By

Discord hack shows dangers of online age checks as internet policing hopes put to the test

Messaging platform Discord has said the official ID photos of around 70,000 users have been stolen by hackers.

The app, which is popular with gamers and teenagers, said the hackers targeted a firm responsible for verifying the ages of its users. Discord said its own platform was not breached.

The stolen data could include personal information, partial credit card numbers and messages with Discord’s customer service agents, the firm said.

No full credit card details, passwords or messages and activity beyond conversations with Discord customer support were leaked, it added.

Discord said it had revoked the third-party service’s access and was continuing to investigate. It said all affected users have been contacted.

“Looking ahead, we recommend impacted users stay alert when receiving messages or other communication that may seem suspicious,” it said.

Until recently, a hack like this could not have happened, because companies had no need to process and collect proofs of age.

More on Cyber Attacks

Now, so many governments are following the UK and introducing age verification for unsuitable or pornographic content that a company like Discord has to roll out age checks for a decent portion of its 200 million active users.

It’s a bit like the way that shops have to check your age if you’re buying alcohol – only because it’s online, it comes with a lot of additional complications.

Pic: Shutterstock
Image:
Pic: Shutterstock

A shop, for instance, won’t keep a copy of your passport once they’ve checked your age.

And it definitely won’t keep it in a massive (yet strangely light) safe along with thousands of other passport photocopies, stored right by its front door, ready to be taken.

Online, it’s surprisingly easy to do just that.

Read more on Sky News:
AI ‘distorting women online’
Pros and cons of digital IDs
Impact of new online safety rules

It’s worth noting that the age verification system used by Discord wasn’t hacked itself. That system asked people to take a photo of themselves, then used software to estimate their age. Once the check was complete, the image was immediately deleted.

The problem came with the appeals part of the process, which was supplied to Discord by an as-yet-unnamed third party.

If someone thought that the age verification system had wrongly barred them from Discord they could send in a picture of their ID to prove their age. This collection of images was hacked. As a result, Discord says, more than 70,000 IDs are now in the possession of hackers.

(The hackers themselves claim that the number is much bigger – 2,185,151 photos. Discord says this is wrong and the hackers are simply trying to extort money. It’s a messy situation.)

There are ways to make age verification safer. Companies could stop storing photo ID, for instance (although then it would be impossible to know for sure if their checks were correct).

And advocates of ID cards will point out that a proper government ID could avoid the need to send pictures of your passport simply to prove your age. You’d use your digital ID instead, which would stay safely on your device.

But the best way to stop data being hacked is not to collect it in the first place.

We’re at the start of a defining test – can governments actually police the internet? Or will the measures that are supposed to make us safer actually end up making us less secure?

Continue Reading

Business

Customers of five water firms are facing higher than expected hikes to bills

Published

on

By

Customers of five water firms are facing higher than expected hikes to bills

Customers of five water firms are facing higher than expected rises to their inflation-busting bills after the companies disputed limits imposed by the industry regulator.

The Competition and Markets Authority (CMA) was called in to review Ofwat’s determinations on what Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water could charge customers from 2025-30.

The CMA’s panel said on Thursday: “The group has provisionally decided to allow 21% – an additional £556m in revenue – of the total £2.7bn the five firms requested.

“This extra funding is expected to result in an average increase of 3% in bills for customers of the disputing companies, which is in addition to the 24% increase for customers of these companies expected as part of Ofwat’s original determination.”

Money latest: The generation that hates their job the most

The decision showed that Wessex household and business customers faced the largest increase – on top of the rise agreed by Ofwat – of 5%, leaving their average annual bills at £622.

South East and Southern customers will see rises of 4% and 3% respectively while Anglian and Northumbrian’s are set to soak up the lowest percentage increase of just 1%.

More from Money

South East had sought the biggest increase – 18% on top of the 18% hike it had been granted over the five-year period.

Please use Chrome browser for a more accessible video player

July: Water regulator Ofwat to be scrapped

The companies exercised their right to an appeal after Ofwat released its final determinations on what they could charge at the end of last year.

They essentially argued that they could not meet their regulatory requirements under the controls amid a rush to bolster crucial infrastructure including storm drains, water pipelines and storage capacity.

Crisis-hit Thames Water was initially among them but it later withdrew its objection pending the outcome of ongoing efforts to secure its financial future through a change of ownership.

Please use Chrome browser for a more accessible video player

Higher bills ‘part of the cost’ of water reform

Chair of the CMA’s independent panel, Kirstin Baker, said: “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.

“We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost.”

Ofwat, which has faced industry criticism in the past for an emphasis on keeping bills low at the expense of investment, is set to be replaced by a new super regulator under plans confirmed in the summer.

It has faced outrage on many fronts, especially over sewage spills, and allowing rewards for failure.

Water Minister Emma Hardy said in response to the CMA’s decision: “I understand the public’s anger over bill rises – that’s why I expect every water company to offer proper support to anyone struggling to pay.

“We’ve made sure that investment cash goes into infrastructure upgrades, not bonuses, and we’re creating a tough new regulator to clean up our waterways and restore trust in the system.

“We are laser focused on helping ease the cost of living pressure on households: we’ve frozen fuel duty, raised the minimum wage and pensions and brought down mortgage rates – putting more money in people’s pockets.”

Continue Reading

Business

Britain’s winter blackout risk the lowest in six years – but ‘tight’ days expected

Published

on

By

Britain's winter blackout risk the lowest in six years - but 'tight' days expected

Britain is at the lowest risk of a winter power blackout than at any point in the last six years, the national electricity grid operator has said.

Not since the pre-pandemic winter of 2019-2020 has the risk been so low, the National Energy System Operator (NESO) said.

It’s thanks to increased battery capacity to store and deploy excess power from windfarms, and a new subsea electricity cable to Ireland that came on stream in April.

The margins between expected demand and supply are now roughly three gas power stations greater than last year, the NESO said.

Please use Chrome browser for a more accessible video player

Renewables overtake coal for first time

It also comes as Britain and the world reached new records for green power.

For the first time, renewable energy produced more of the world’s electricity than coal in the first half of 2025, while in Britain, a record 54.5% of power came from renewables like solar and wind energy in the three months to June.

More renewable power can mean lower bills, as there’s less reliance on volatile oil and gas markets, which have remained elevated after the invasion of Ukraine and the Western attempt to wean off Russian fossil fuels.

“Renewables are lowering wholesale electricity prices by up to a quarter”, said Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit (ECIU) thinktank.

Read more:
Bank issues warning over AI bubble
Gold smashes past $4,000 per ounce

In a recent winter, British coal plants were fired up to meet capacity constraints when cold weather increased demand, but still weather conditions meant lower supply, as the wind didn’t blow.

Those plants have since been decommissioned.

But it may not be all plain sailing…

There will, however, be some “tight” days, the NESO said.

On such occasions, the NESO will tell electricity suppliers to up their output.

The times Britain is most likely to experience supply constraints are in early December or mid-January, the grid operator said.

The NESO had been owned by National Grid, a public company listed on the New York Stock Exchange, but was acquired by the government for £630m in 2023.

Continue Reading

Trending