Fujitsu won £1.4bn in new government contracts after court ruling on Post Office software bugs

MPs find Treasury-affiliated bodies have engaged Horizon firm since damning 2019 high court judgment

The Japanese technology company Fujitsu, whose flawed technology for the Post Office led to the wrongful prosecution of hundreds of subpostmasters, is confirmed to have held contracts worth more than £3.4bn linked to the Treasury since 2019.

Figures published by the Commons’ treasury committee show £1.4bn of contracts were awarded to Treasury-affiliated organisations after a high court ruling in December 2019 over the company’s software. The judgment found that “bugs, errors and defects” in Fujitsu’s Horizon system could cause shortfalls in Post Office branch accounts.

Continue reading...

Call for UK utility firms to face higher fines for ‘street scars’ on pavements

Government adviser says water and telecoms privatisation is to blame for disfiguring streets with concrete slabs

The government must increase fines on utility companies that dig up pavements for roadworks, then pour in concrete rather than fixing the mess, a government adviser has said.

Telecoms and water companies are creating “street scars” in a “wasteful process” that is marring British high streets, Nicholas Boys Smith, who chairs the Office for Place in the Department for Levelling Up, Housing and Communities has said in a report.

Continue reading...

South West Water under investigation over leaks and usage figures

Shares in owner Pennon Group fall as it says Ofwat has launched inquiry into South West Water

South West Water is being investigated by the industry regulator over whether it accurately reported leaks and figures showing how much water is used by its customers.

Pennon Group, which owns South West Water and Bristol Water Group, told its shareholders Ofwat had announced an investigation into the company’s operational performance during 2021 and 2022.

Continue reading...

Clover Moore warns NSW government against sale of state-owned land

Exclusive: Sydney’s lord mayor says plan to sell unused parcels in order to develop housing is ‘disappointing’

The lord mayor of Sydney, Clover Moore, has called a plan to rezone and develop underused state land as “really disappointing” despite the New South Wales premier, Chris Minns’ insistence that the government housing scheme did not amount to privatisation.

Moore said the state government should instead be focused on genuine investment in social and affordable housing, while thinking carefully before making any decisions to sell off land.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

State to take control of TransPennine Express after ongoing poor service

Northern rail network to be run by state-owned operator of last resort when contract expires on 28 May

TransPennine Express (TPE) is to be run by the state after ministers announced that the failing rail company would not have its contract renewed.

The transport secretary, Mark Harper, said the northern rail network would be run by the state-owned operator of last resort after passengers experienced disruption, cancellations and a significant decline in the extent and reliability of the service.

Continue reading...

Deadline to sell off UK government’s NatWest shares extended to 2025

Recent banking turmoil fuels decision to delay offloading portions of its remaining 41% stake

A plan to whittle down the government’s stake in NatWest has been extended by another two years, after weeks of banking turmoil that hit the lender’s shares and temporarily fuelled fears over a fresh financial crisis.

UK Government Investments (UKGI), which manages the shares on behalf of the Treasury, said the scheme to strategically sell portions of the British taxpayer’s shareholding – after NatWest’s near-£46bn state bailout in 2008 – would now run until August 2025.

Continue reading...

Thames Water’s real-time map confirms raw sewage discharges

Effluent in Gloucestershire river pinpointed by digital map as water companies accused of routinely pumping out waste to rivers

The market town of Fairford, nestling in the Cotswold hills, is perhaps best known for its church, which has the only complete set of mediaeval stained glass windows in England.

But thanks to a more modern phenomenon, an interactive digital map produced by Thames Water, the Gloucestershire town, with its traditional honey coloured limestone houses, is becoming better known for its continuous, gushing, raw sewage overflow.

Continue reading...

Chuka Umunna advises Czech tycoon accused of Royal Mail plot

Ex-Labour MP and former critic of privatisation risks claims of hypocrisy over advisory role with Daniel Křetínský

The MP turned banker, Chuka Umunna, is advising a Czech tycoon who was accused of planning a secret takeover of Royal Mail by union leaders.

The former Labour MP is one of a team of bankers working on Daniel Křetínský’s British business interests, many of which are held within Vesa Equity Investment, including a 23% stake in Royal Mail’s parent company, International Distributions Services (IDS).

Continue reading...

UK rail system described as ‘broken’ as 2022 data reveals extent of disruption

Delays and cancellations linked to 20 years of privatisation, rising costs and labour shortages worsened by pandemic, say experts

Rail passengers have been delayed or disrupted on more than half of all train services departing from 15 of Great Britain’s busiest stations in the last year, Guardian analysis shows, exposing what has been described as a “broken” railway system that cannot easily be fixed.

Experts said the figures – which show rail services in the north and Midlands as the hardest hit – demonstrated the impact of two decades of privatisation, which had increased costs and public subsidies, combined with labour shortages exacerbated by the pandemic.

Continue reading...

Labour delegates urged to back PR to end ‘trickle-down democracy’ – UK politics live

Latest updates: Labour delegate says current electoral system allows Tories to get away with measures like ‘protecting bankers’ bonuses’

In June, as the RMT union launched what has become an ongoing series of strikes, Keir Starmer ordered Labour frontbenchers and shadow ministerial aides not to join picket lines. This infuriated leftwing Labour MPs and some union leaders, notably Sharon Graham, the general secretary of Unite.

At one point it looked as if there might be a huge row at conference about whether shadow ministers should or should not be allowed to join picket lines. But, in an interview with the Today programme this morning, Graham suggested that a truce of sorts has been agreed – even if the two sides do not entirely see eye to eye.

My issue about this … isn’t necessarily around one person on a picket line because, quite frankly, that isn’t the issue. The issue is the mood music [ordering shadow ministers not to join picket lines] suggests. It suggests a mood music that being on the picket line is somehow a bad thing. It’s a naughty step situation.

The party who is there to stick up for workers should not give the impression – that’s the problem, it gives the impression – that they are saying picket lines are not the place to be. And I think that it was unfortunate. I think it was a mistake. I think, to be honest with you, Labour knows it was a mistake. And I don’t actually think it’s holdable.

When people go on strike it is a last resort at the end of negotiations. And I can quite understand how people are driven to that … I support the right of individuals to go on strike, I support the trade unions doing the job that they are doing in representing their members.

I’m incredibly disappointed that as delegates we’ve been excluded from this key part of the conference’s democratic process.

This is an unprecedented move silencing members’ voices. Our CLP sent us here to Liverpool to promote our motion on public ownership and a Green New Deal, but we’ve been unfairly denied that right.

Continue reading...

Calls to cut bonuses for UK water bosses until reservoirs built and leaks fixed

Multimillion-pound payouts should be shelved until investment put in to help country recover from drought

Water company bosses should be stripped of their multimillion pound bonuses until they fix leaks and build reservoirs, politicians and campaigners have said as the country is gripped by drought.

The current drought, in which parts of England are the driest they have been since records began after five consecutive months of below average rainfall, have led to homes running out of water, rivers turning dry and farmers facing crop failures, causing many to be outraged at the companies that have failed to invest in reservoirs, fix leaks and stop sewage pollution from their pipes.

Continue reading...

Tory leadership: Sunak frustrated government attempts to realise benefits of Brexit, Truss allies claim – UK politics live

Latest updates: foreign secretary’s supporters accuse former chancellor of resisting changes to EU regulation as sixth hustings looms

Gordon Brown, the former Labour prime minister, has used an article in today’s Guardian to propose that the government should halt the increases in the energy price cap planned for later this year and next year and, if necessary, take energy companies into public ownership to ensure that they keep prices down.

Alongside the Lib Dem plan, with which it has some similarities (they also want a price cap freeze, and more money raised through a windfall tax), it is the most radical and ambitious proposal on the table to tackle the energy bills crisis.

Continue reading...

Labour would fix ‘broken’ water and energy markets through regulation not nationalisation, says Starmer – UK politics live

Labour would, however, stick to plans to nationalise the railways if it won the next election, Starmer says

Polling from YouGov suggests that Liz Truss was perceived by Tory members to have outperformed Sunak on every issue covered in last night’s debate.

In particular, she led on Ukraine, cost of living and levelling up, although her lead was weaker on Brexit, the environment and taxation.

There are some lines on PA from Robert Buckland, the Wales secretary who is supporting Rishi Sunak for the Tory leadership, defending last night’s fierce TV showdown as “robust debate”.

There’s this balance to be struck between having a vigorous debate and being sort of almost too polite to each other.

I think it’s inevitable that you’re going to have candidates disagreeing, and frankly, we need to hear what the arguments are.

Continue reading...

Tory leadership: Liz Truss and Rishi Sunak clash in heated BBC debate – as it happened

Latest updates: final two candidates exchange blows over plans for cost of living, levelling up and China

Starmer says Labour’s approach to levelling up will be based on a practical plan, unlike the government’s.

And he says he was impressed by the approach of Olaf Scholz, the German chancellor, whom he met in Berlin recently. Starmer suggests Britain could learn from the way new battery factories are located in poor regions in Germany.

There will be no magic money tree economics with us.

Continue reading...

Tory ’revenge’ against Channel 4 could turn into bruising battle

Analysis: why ministers are risking political capital pushing ahead now with privatisation plan is unclear

According to one key individual involved in the battle for Channel 4’s future, the broadcaster is a “wonderful company doing a fantastic job”, it is performing well financially and plays a crucial role in supporting the British television ecosystem.

Curiously, that individual is Stephen Parkinson, a government minister arguing that the only solution to secure Channel 4’s future is to rapidly privatise it and sell it off to a commercial owner, possibly one based overseas.

Continue reading...

What you need to know about the privatisation of Channel 4

As the government presses ahead with the sale, what is the broadcaster worth and who would buy it?

The industry player most likely to buy Channel 4, with the least regulatory hurdles, is Discovery. The big US pay-TV company, which is merging with WarnerMedia, the parent company of CNN, HBO and the Hollywood studio behind the Batman and Harry Potter franchises, expressed interest the last time the broadcaster faced privatisation in 2016.

Continue reading...

UK has ‘sleepwalked’ into dysfunctional children’s social care market, says regulator

CMA finds local authorities are being forced to pay excessive fees for substandard privately run services

The UK has “sleepwalked” into a dysfunctional market for children’s social care with local authorities forced to pay excessive fees for privately run services that often fail to meet the needs of vulnerable children, an official report has concluded.

The Competition and Markets Authority (CMA) called for an overhaul of the £6.5bn UK market for children’s residential and foster care, saying it had found “significant problems” with the provision of the privately dominated services.

Continue reading...

Concern over ‘opaque’ Covid-related contracts awarded around world

UK among the countries in spotlight after spending more than £2.5bn on outsourcing

The UK has spent more than £2.5bn on services and equipment related to the Covid-19 pandemic, according to fresh analysis that raises concerns about “opaque” contracts around the world wasting money and putting lives at risk.

A report by the Open Contracting Partnership and Spend Network found governments had spent $130bn (£97bn) on pandemic-related contracts, including on PPE (personal protective equipment) and other medical supplies, out of an annual procurement spend of nearly $13tn.

Continue reading...

French parties unite in call for referendum on Macron’s airports sell-off

President accused of ‘flogging family silver’, as communists and Sarkozy MPs join forces

Emmanuel Macron’s plan for the biggest wave of French privatisations in a decade is under threat after opposition politicians took the unusual step of joining ranks to push for a referendum on the sale of Paris airports.

The centrist French president wants to sell the state’s controlling stake in Aéroports de Paris, the profitable operator of Charles de Gaulle and Orly airports, which are used by more than 100 million passengers each year. It would be among the biggest privatisation operations in French history, alongside Macron’s plans to sell other stakes in the national lottery as well as the gas and power group ENGIE.

Continue reading...