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A backbench Conservative MP is demanding a government probe into the Barclay family’s use of Middle East-based financing to regain control of The Daily Telegraph.

Sky News has learnt that Danny Kruger, the MP for Devizes, urged the culture secretary Lucy Frazer to issue a Public Interest Intervention Notice (PIIN) into the funding behind the Barclays’ efforts to repay more than £1bn owed to Lloyds Banking Group.

Describing the Telegraph titles as “a treasured national asset”, he warned: “If material influence over, or control of, a quality national newspaper was passed to an unknown foreign ruler at any time it would raise concerns, but at a heightened time of geopolitical turmoil I believe it is more important than ever that this deal…is given proper scrutiny.”

A PIIN would trigger an inquiry by Ofcom, the media regulator, and the Competition and Markets Authority, and could undermine the Barclays’ claim that their bid offers a swift resolution to the uncertainty surrounding the future of the Telegraph and Spectator.

In the letter, Mr Kruger wrote: “It has long been British Government policy that foreign investment into influential British media should be scrutinised through the use of Public Interest Intervention Notices, and I would urge you to take similar action in this case.”

He cited the Barclays’ decision not to disclose the identity of their backers during a court hearing in the British Virgin Islands last week as “[flying] in the face of the transparency of ownership that is normally demanded in a democratic society with a free press”.

Sky News revealed on Friday that First Abu Dhabi Bank, the UAE’s biggest lender, had agreed to provide financing to the family, although Sheikh Mansour bin Zayed Al Nahyan – the ultimate owner of a controlling stake in Manchester City Football Club – is said to be among those in talks to commit the underlying funds.

Mr Kruger questioned why “the amount of the loan from the anonymous funder is far beyond what The Telegraph and The Spectator could commercially support”.

“This raises concerning questions as to why the anonymous funder is willing to provide the loan, given the lack of commercial rationale for it, and the terms that may have been agreed between the Barclays family and the funder.

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“The Public Interest Intervention Notice (PIIN) process is designed to allow the Government to get to the bottom of these questions.”

He argued that the government had set a precedent by issuing a PIIN in relation to the acquisition of the Evening Standard and Independent titles in 2019 by “an investor with strong links to Saudi Arabia”.

People close to the Barclays dismissed the comparison, on the basis that their financing from Abu Dhabi backers would not involve either the sale of an equity stake or hand material governance rights or influence to them.

In a statement, a spokesman for the family said: “The Barclay family’s proposal to Lloyds Banking Group concerns the settlement of outstanding loans.

“There is no basis and no precedent for a PIIN being issued in relation to a debt transaction, and we are highly confident that the family’s proposal would not trigger any regulatory reviews regarding the ownership of the media assets.

“We continue to believe that our proposal offers Lloyds Banking Group and its shareholders the most compelling, straightforward and speedy resolution to this situation.”

Mr Kruger urged Ms Frazer to issue a PIIN “in the coming days so that His Majesty’s Government can get answers as to who exactly would take control of the Telegraph Media Group were this deal to go ahead”.

He added: “A PIIN would in no way pre-judge whether the money from an unnamed Emirati source is problematic, but would allow you to gather all the information required for you to assess the matter.

“This is critical to our democracy and ensuring a strong and free press in the UK.”

Lloyds has already kicked off an auction of the newspapers and The Spectator magazine, with Goldman Sachs retained to oversee talks with bidders.

Rival bidders for the Telegraph include the hedge fund billionaire Sir Paul Marshall, the former Daily Telegraph editor Sir William Lewis and Lord Rothermere, the Daily Mail proprietor.

Axel Springer, which publishes the German newspaper Die Welt, and London-listed media group National World have also registered their interest in the auction.

Until June, the newspapers were chaired by Aidan Barclay – the nephew of Sir Frederick Barclay, the octogenarian who along with late brother Sir David engineered the takeover of the Telegraph 19 years ago.

Lloyds had been locked in talks with the Barclays for years about refinancing loans made to them by HBOS prior to that bank’s rescue during the 2008 banking crisis.

The family’s debt to Lloyds also includes some funding tied to Very Group, the Barclay-owned online shopping business.

The Telegraph and Spectator sales are being overseen by a new crop of directors led by Mike McTighe, the boardroom veteran who chairs Openreach and IG Group, the financial trading firm.

Mr McTighe has been appointed chairman of Press Acquisitions and May Corporation, the respective parent companies of TMG and The Spectator (1828), which publish the media titles.

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Direct trains from UK to Germany ‘one step closer’, but nothing yet on journeys to Berlin

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Direct trains from UK to Germany 'one step closer', but nothing yet on journeys to Berlin

The UK has come a “step closer” to having direct, high-speed rail connections to Germany, the Department for Transport has said.

A partnership between international train operator Eurostar and German national rail company Deutsche Bahn (DB) has “set the foundation” for a fast rail connection between Britain and Europe’s largest economy, the businesses announced on Thursday.

It means the companies are exploring options to offer direct services between London and Cologne and Frankfurt.

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Such direct services would mean reaching Cologne in four hours, and Frankfurt in less than five from the capital city.

At present, rail passengers have to change trains in Brussels to reach those cities. It takes at least five-and-a-half hours to reach Frankfurt, and four-and-a-quarter hours to arrive in Cologne.

Cologne Central Station could soon be served by trains from the UK. Pic: AP
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Cologne Central Station could soon be served by trains from the UK. Pic: AP

The proposed services would use existing lines and infrastructure. Passengers would board a double-decker Eurostar in London, and be spared a change of trains on the continent.

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The ambition to create such links had already been announced, as had a plan to allow direct rail travel from London to Geneva, but the partnership between DB and Eurostar had not.

Will it definitely happen?

Details and technicalities are yet to be worked out, with the German train company highlighting that any services are contingent upon “the necessary technical, operational, and legal prerequisites being met”.

“Implementation by individual railway companies is considered extremely difficult,” DB said.

“Joint partnerships are therefore crucial.”

What about Berlin?

Nothing was announced for a direct service to Berlin on Thursday, despite Transport Secretary Heidi Alexander singling out the benefits and prospect of journeys from London to the German capital in July.

“The Brandenburg Gate, the Berlin Wall and Checkpoint Charlie – in just a matter of years, rail passengers in the UK could be able to visit these iconic sights direct from the comfort of a train, thanks to a direct connection linking London and Berlin,” she said at the time.

A high-speed Eurostar train heading towards France. File pic: PA
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A high-speed Eurostar train heading towards France. File pic: PA

Shorter journeys, like those to Frankfurt and Cologne, are seen as more commercially viable than the current 10-hour train journey time to Berlin.

Market studies conducted by Eurostar found travellers are comfortable with international rail journeys of up to six hours.

“Our research indicates that many would choose rail over air for trips within this timeframe,” Eurostar told Sky News. “This, combined with strong business and leisure demand on this route, is why we have prioritised London to Frankfurt.”

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The Department for Transport said the focus on the two German cities was a commercial decision by Eurostar and DB, and the UK-Germany rail taskforce, established over the summer, could pave the way for further route announcements.

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Energy grid £28bn upgrade to add £108 to household bills

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Energy grid £28bn upgrade to add £108 to household bills

The energy regulator has confirmed plans for a massive upgrade to the UK’s energy grids, adding £108 to customer bills by 2031.

Ofgem said on Thursday that the £28bn investment over the next five years would bolster resilience in the transition to a renewable energy future and that much of the bill would be offset by increased efficiency.

It pointed to estimated savings for households of around £80 because of the planned investment in gas and power infrastructure, leaving a net additional contribution of £28.

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Ofgem said the £28bn sum formed part of an estimated £90bn to be invested in the energy networks by 2031, with “adaptive” funding arrangements helping to shield customers from volatility in the market.

Most of the funding announced on Thursday will go towards maintaining gas networks, which will remain a key source of energy as green power capacity is built up further.

“Investing now to maintain world-class resilience and expand grid capacity is the most cost-effective way to harness clean power, support economic growth and protect the country from gas price shocks like the one seen in 2022”, Ofgem said.

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What’s driving energy prices higher?

Then, Russia’s invasion of Ukraine and Europe’s refusal to buy Russian gas in response, meant that energy bills hit unprecedented levels and gave birth to the wider cost-of-living crisis as higher energy costs were passed on across the economy.

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Ofgem made its announcement as costs of government energy policy and other upgrades make the biggest upwards contributions to household bills. However, the budget moved to take away some costs from April next year.

Ofgem boss Jonathan Brearley said: “The funding announced today will keep Britain’s energy network among the safest, most secure and resilient in the world. The investment will support the transition to new forms of energy and support new industrial customers to help drive economic growth and insulate us from volatile gas prices.

“But this is not investment at any price. Every pound must deliver value for consumers. Ofgem will hold network companies accountable for delivering on time and on budget, and we make no apologies for the efficiency challenge we’re setting as the industry scales up investment.

“We’ve built strong consumer protections into these contracts, meaning funds will only be released when needed and clawed back if not used. Households and businesses must get value for money, and we will ensure they do.”

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‘It’s either keep warm or eat’

A Department for Energy Security and Net Zero spokesperson said: “This government is taking action to bring down energy bills for families, with the budget taking an average £150 of costs off bills in April, and expanding our £150 Warm Home Discount to over six million families.

“Upgrading our gas and electricity networks after years of underinvestment is essential to keep the lights on and ensure energy security for our country. Without these plans, which were first set out under the previous government, costs would spiral and our security would be compromised.

“The only way to bring down bills for good and get off the fossil fuel rollercoaster is with this government’s mission to deliver clean homegrown that we control.”

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Stronger reforms called for over baby formula crisis

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Stronger reforms called for over baby formula crisis

The UK government is being urged to take even stronger action to tackle the ongoing crisis of families unable to afford baby formula milk. 

The prime minister backed limited reforms to the market to help parents save money but will not yet support more radical changes.

Sir Keir Starmer confirmed support for better public health messaging to inform parents that cheaper brands are nutritionally equivalent when compared with the most expensive.

A ban on spending store loyalty points on baby formula will also be lifted.

They were among recommendations made by the Competition and Markets Authority which investigated the baby formula industry and described the price rises in recent years as unjustifiable.

A newborn. File Pic: iStock
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A newborn. File Pic: iStock

In the House of Commons the prime minister said: “For too long parents have been pushed into spending more on infant formula.

“They were told they’re paying for better quality and left hundreds of pounds out of pocket.

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“I can announce today that we’re changing that. We will take action to give parents and carers the confidence to access infant formula at more affordable prices, with clearer guidance for retailers on helping new parents use loyalty points and vouchers together.”

It comes two-and-a-half years after a Sky News investigation revealed the extreme measures families were taking to feed their babies.

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Parents described how they had resorted to stealing to feed their infants, some were watering down formula milk or substituting it for condensed milk.

The British Pregnancy Advisory Service described the situation in 2023 as a “national scandal”.

Campaigners told Sky News the UK government needed to go further to address the crisis.

Co-founder of Feed UK Erin Williams told Sky News: “It is progress, they promised to look at this enormous nationwide problem and they have.

“At the moment women are still not routinely getting important information before giving birth – this should be given proactively to everybody and that will be a big win.

“The prime minister though needs to be tougher on the baby formula companies.

“Their marketing claims, their unjustified pricing – it’s stacked against families who just need to feed their babies safely.”

The UK government stopped short of accepting all of the recommendations made by the CMA.

More radical ideas such as a price cap on baby formula are not being considered.

Charities have also told Sky News the situations some families find themselves in have not eased.

Founder of the Hartlepool Baby Bank, Emilie De Bruijn, told Sky News the demand they see from desperate families is “constant and unmanageable”.

She said: “Parents are really feeling the pinch right now, and demands on baby banks are rising and it can feel quite relentless.

“We are pleased to see the extension of the National Breastfeeding Helpline alongside measures such as allowing parents to use points and vouchers.

“It is important that parents are supported to feed their children in whatever way they want and we hope that steps will continue to be taken to reduce the cost of formula and increase understanding that all brands are nutritionally the same.”

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