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Anti-corruption campaigners have raised the alarm over what they say is the government's inadequate management of conflicts of interest, labelling it a "scandal waiting to happen." A report by the National Audit Office (NAO) revealed that two-thirds of public bodies lack information on managing these conflicts. The report highlighted that only one body was actively verifying compliance with mitigation measures. The UK ranks 28th out of 42 countries surveyed by the OECD regarding conflict management, meeting just 36% of the OECD's criteria. Dr Susan Hawley, executive director of Spotlight on Corruption, stressed the need for urgent action, saying: "It is critical the government takes urgent steps to ensure weak conflicts of interest rules are not contributing to this." The NAO's findings indicate that many organisations are unclear on declaration expectations and record-keeping, raising concerns about potential fraud and misuse of taxpayer funds.

 

The i

Charlie Edwards, the £130,000-a-year Director of Strategy at the National Crime Agency (NCA), was secretly dismissed for gross misconduct after a panel found he "acted inappropriately during a procurement exercise" and failed to declare hospitality from a company involved in the process. The incident is linked to the NCA's 10th anniversary celebrations, which later became the subject of a misconduct probe. The agency has faced criticism for a perceived culture of cover-up, particularly following revelations about another senior official, Steve Rodhouse, who was found guilty of misconduct three years ago after leaving a laptop containing details of highly sensitive operations against serious and organised crime in his car. The device was stolen while he attended the theatre with his wife. Critics of the NCA’s culture have urged the Home Secretary Yvette Cooper to launch “an immediate, high-level independent inquiry into the NCA's fitness for purpose.”

 

Daily Mail

The Serious Fraud Office (SFO) is investigating Thales Group for suspected bribery and corruption. The SFO's French equivalent, Parquet National Financier (PNF), is joining the inquiry. Nick Ephgrave, SFO director, said: “We will together rigorously pursue every avenue in our investigation into these serious allegations.” Thales, which employs over 7,000 staff in the UK, is best known for its defence contracts, including missile production and submarine sonar systems. The investigation follows searches of Thales offices in France, Spain, and the Netherlands. The company has confirmed its cooperation with both agencies, and has asserted compliance with all regulations.

 

The Times

The Guardian

The UK government has imposed financial sanctions on three prominent figures: Ukrainian billionaire Dmitry Firtash, Isabel dos Santos, daughter of Angola's former president, and Latvian oligarch Aivars Lembergs. The sanctions include asset freezes and travel bans, and are aimed at curbing corruption and the flow of illicit funds. Susan Hawley, executive director of Spotlight on Corruption, welcomed the sanctions, which she said underscore the UK's commitment to combatting corruption. Firtash is accused of extracting hundreds of millions from Ukraine, while dos Santos faces allegations of embezzling £350m. Lembergs has been jailed for bribery and money laundering. 

 

City AM

The Guardian

The Financial Conduct Authority (FCA) plans to extend the deadline for lenders to respond to customer complaints regarding car loan mis-selling. A court ruling last month deemed it unlawful for lenders to pay undisclosed commissions to car dealers, leading to a surge in complaints. The FCA is considering extending the response deadline to either 31 May 2025 or 4 December 2025, as lenders like Close Brothers and First Rand prepare to appeal the ruling. The compensation bill could reach £30bn, creating significant uncertainty for lenders and consumers alike. Meanwhile, Close Brothers has resumed its motor finance lending, updating its processes to ensure full disclosure of commission amounts and compliance verification for credit brokers.

 

City AM

The Guardian

Simon Hoare, the new chair of parliament’s public administration committee, tells the FT about his plans for an inquiry into scores of arm’s-length bodies amid concerns over accountability and transparency.

 

Financial Times

The UK is now at risk of being attacked by Russia after the government authorised Ukraine to use UK-made Storm Shadow missiles to hit targets inside Russia. Sir Keir Starmer’s move followed a decision by US President Joe Biden to authorise the use of US ATACMS. In response, Russia launched what is said to be a hypersonic intermediate-range ballistic missile at the eastern Ukrainian city of Dnipro. Vladimir Putin said “the military facilities of those countries that allow their weapons to be used against our facilities” were now a legitimate target for the Russian military. Putin earlier this week loosened the conditions of use for Russia’s nuclear weapons. Meanwhile, Andrei Kelin, Russian ambassador to the UK, told Sky News: “Britain and UK is now directly involved in this war, because this firing cannot happen without NATO staff, British staff as well.”

 

BBC News

The Daily Telegraph

The Times

Swedish battery maker Northvolt is filing for Chapter 11 bankruptcy after Europe’s main hope for countering Asian dominance in electric vehicle batteries failed to agree a last-minute rescue package with investors. "Northvolt's liquidity picture has become dire," the company said in its Chapter 11 petition filed in U.S. Bankruptcy Court in Houston. The company, which employs around 6,600 staff across seven countries, has about $30m of cash, which can support its operations for only about a week. It has $5.8bn in debts. Northvolt said it expects to complete the restructuring by the first quarter of 2025.

 

Financial Times

Reuters

Frasers Group has initiated a vote to remove Boohoo co-founder Mahmud Kamani amid ongoing concerns regarding the fast fashion retailer's future. The shareholder meeting, scheduled for 20 December, aims to approve Mike Ashley as Boohoo's new chief executive and implement significant leadership changes. Frasers, which holds 27% of Boohoo shares, argues that Kamani's leadership has been detrimental, stating that the company's poor financial results are "synonymous" with his tenure. Boohoo recently reported losses of £147m for the six months ending August, with sales down 15% to £620m.

 

Daily Mail

UK government borrowing reached £17.4bn in October, the second highest figure for the month since records began in 1993. The figure exceeded economists' expectations of £12.3bn and marked a £1.6bn increase from the previous year. Central government debt interest payments also surged to a record £9.1bn, exacerbating the fiscal challenges for Chancellor Rachel Reeves. Alex Kerr from Capital Economics remarked that the “disappointing” figures highlight the fiscal hurdles ahead, suggesting that tax increases may be necessary to support future spending.

 

The Guardian

UK manufacturing output has declined significantly over the three months leading to November, according to the Confederation of British Industry. A survey by the group revealed a 12% drop in output, with firms attributing this decline to "uncertainty around the UK Budget, the US elections and recent political instability in Europe." This political turbulence has resulted in many companies cutting or cancelling orders, further exacerbating the situation.

 

The i

Nish Kankiwala, the outgoing boss of John Lewis, has called for a "radical" overhaul of Britain's business rates system, citing a "two-handed grab" from private enterprise by the Chancellor. He warned that the group, which includes Waitrose, faces "tens of millions" in additional costs due to the recent Budget, which introduced a £25bn National Insurance tax increase and higher business rates. Kankiwala stated: "If they could delay the national insurance . . . and fundamentally bring forward a radical reshaping of business rates, I think that will make a massive difference." Retailers are bracing for a £140m rise in business rates in April, with over 80 leading retailers warning that the tax hike could lead to store closures and job losses.

 

Daily Mail

Commerzbank has appointed Carsten Schmitt as its new chief financial officer, a pivotal position as the bank navigates a potential merger with Italy's UniCredit. The role became available following Bettina Orlopp's promotion to chief executive officer, a move aimed at strengthening negotiations with UniCredit. Schmitt, who has over 20 years of experience at Commerzbank and previously served as executive vice president of group strategy and M&A at Danske Bank, will be instrumental in reshaping the bank's strategy, which is set to be unveiled in February.

 

Reuters

As European nations grapple with worker shortages due to aging populations, they are increasingly turning to foreign talent despite rising anti-immigration rhetoric. The European Union has identified 42 occupations facing labour shortages and is implementing strategies to attract skilled workers. Italy, for instance, plans to recruit 452,000 foreign workers from 2023 to 2025, and has acknowledged a need for 833,000. Similarly, Germany aims to issue 200,000 visas for skilled workers this year, and Chancellor Olaf Scholz has highlighted the need for foreign talent. Meanwhile, ASML, the Netherlands' largest company that manufactures semiconductor equipment, says its success depends on talented people, wherever they come from. "We have built our company with more than 100 nationalities," Christophe Fouquet, ASML's CEO, said last month. "Bringing talent from everywhere has been an absolute condition for success, and this has to continue."

 

Deutsche Welle (EN)

Research by the Payment Systems Regulator (PSR) indicates that 36% of fraud victims are now hesitant to adopt new money management methods. Vulnerable groups are particularly affected. Kate Fitzgerald, the PSR's head of policy, said: “APP fraud isn't just a financial setback, it affects people's confidence in payments and can leave them fearful of using digital platforms and retailers in the future.” The study, which surveyed over 1,500 individuals in August, found that only 53% of those who experienced authorised push payment (APP) fraud were reimbursed. With new mandatory rules in place, banks are required to reimburse victims of bank transfer scams, with an £85,000 limit. However, many victims still prioritise recovering their funds, with 67% stating that getting their money back is their top concern.

 

London Evening Standard