Month: August 2024

A software provider is facing a potential £6 million fine following a 2022 ransomware attack that disrupted NHS and social care services across England.
The Information Commissioner’s Office (ICO) has provisionally concluded that Advanced Computer Software Group did not implement adequate measures to safeguard the personal data of 82,946 people affected by the breach, which included sensitive information.
Advanced provides IT and software services to various organisations, including the NHS and other health providers, functioning as a data processor. In August 2022, hackers gained access to the firm’s health and care systems through a customer account lacking multifactor authentication.
The cyberattack caused significant disruptions to critical services such as NHS 111, with data stolen including phone numbers, medical records, and details on how to access the homes of nearly 900 individuals receiving home care.
A leaked internal NHS England memo revealed that the attack had affected multiple NHS services, including urgent treatment centres and mental health providers, by taking essential software offline, posing a substantial challenge to these services.
Information Commissioner John Edwards emphasised the importance of prioritising information security: “Losing control of sensitive personal information will have been distressing for people who had no choice but to put their trust in health and care organisations. Not only was personal information compromised, but we have also seen reports that this incident caused disruption to some health services, disrupting their ability to deliver patient care.”
Edwards expressed hope that the fine would prompt companies to urgently improve their data protection measures. He added, “For an organisation trusted to handle a significant volume of sensitive and special category data, we have provisionally found serious failings in its approach to information security prior to this incident. We expect all organisations to take fundamental steps to secure their systems, such as regularly checking for vulnerabilities, implementing multifactor authentication, and keeping systems up to date with the latest security patches.”
The ICO’s findings are provisional, and the regulator will consider any representations from Advanced before reaching a final decision.
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NHS IT firm faces £6m fine over medical records hack

The delayed arrival of warm summer weather led to a rebound in UK retail sales in July, according to industry data, even as shoppers continued to avoid large purchases amid the ongoing cost of living crisis.
Data from the British Retail Consortium (BRC) indicated a 0.5% year-on-year increase in total UK retail sales for July. This marked a recovery from June’s disappointing performance, where cooler weather had kept consumers away from high street spending.
In July, consumers purchased summer clothing and health and beauty products, preparing for outings and holidays. However, spending on furniture and household appliances saw a decline as financially stretched consumers prioritised essentials over big-ticket items.
The Bank of England cut interest rates last week for the first time since the COVID-19 pandemic, following a sharp drop in inflation to the 2% target in May and June. Despite this, prices remain significantly higher than four years ago.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, commented: “Spending levels continue to be governed by whether households have been able to absorb the likes of mortgage and rent increases, or had to limit their spend elsewhere as a consequence. While summer staples, such as health, beauty, and gardening products have helped to drive retail sales growth both online and in-store in July, the upturn is likely much less than retailers were hoping for at this key time of the year.”
Additional data from Barclays revealed a 0.3% year-on-year decline in overall consumer card spending for July, as discretionary spending remained selective amid higher living costs. Barclays, which processes nearly 40% of UK credit and debit card transactions, also reported increased spending on health and beauty products due to the arrival of warmer weather and delayed summer sales, contributing to a modest retail recovery.
However, non-essential spending fell by 1.1%, with reductions in clothing, home improvements, and sports equipment purchases. Meanwhile, pubs and bars experienced a surge in spending as football fans gathered to watch England’s progress in the men’s Euro 2024 tournament. Despite losing to Spain, payments in pubs and bars almost tripled on 14 July, marking a 195.6% increase year-on-year, and making it the busiest Sunday for pubs in 2024 so far, with transaction volumes up 92.9% compared to the average Sunday.
In the service sector, the S&P Global UK services purchasing managers index (PMI) indicated a rise in demand in July at the fastest pace since May 2023. This survey, which excludes retail, is closely watched by the Bank of England and the Treasury for early economic indicators. The PMI rose to 52.5 in July from 52.1 in June, where any reading above 50.0 signals growth in private sector activity.
Joe Hayes, principal economist at S&P Global Market Intelligence, remarked: “With the general election period coming to an end at the start of July, survey data for last month showed the UK service sector enjoyed a modest rebound after a fairly subdued end to the second quarter. July’s accelerated expansion in sales activity crucially suggests business and consumer confidence has improved, and albeit only one month into the second half of 2024, the latest survey results bode well for a reasonable GDP growth in the third quarter.”
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Warm weather boosts UK retail sales in July, but big purchases still lag behind

PwC has seen a significant loss of major clients in China following pressure from Beijing, urging state-owned companies to sever ties due to the auditor’s involvement with the troubled property developer Evergrande.
Over the past few months, the Chinese Ministry of Finance has issued “window guidance” – informal, verbal instructions – to some of the largest state-owned financial institutions, advising them to end their relationships with PwC, Reuters reports.
Recent corporate filings reveal that prominent clients such as Bank of China, China Life Insurance, PICC, China Taiping Insurance, and China Cinda Asset Management have all parted ways with PwC. This trend has led to PwC losing over 30 companies listed on China’s stock market in 2023 alone.
These departures have resulted in significant financial losses for PwC, amounting to hundreds of millions of dollars in lost fees. For instance, Bank of China paid PwC $28 million last year for auditing services. In response, PwC China has initiated cost-cutting measures, including reducing headcount and partner pay.
The Ministry of Finance, which holds significant shares in many of China’s largest financial institutions and regulates auditors, is believed to be driving these changes. However, PwC partners in China remain uncertain whether these client losses are regulator-driven or independent decisions by the companies. PwC China has refrained from commenting on the situation.
PwC China, the third-largest network firm within the group with around 20,000 employees, has been under scrutiny for its 14-year tenure as Evergrande’s auditor. Evergrande, once China’s largest property developer, defaulted on over $300 billion in debt in 2021, causing widespread market panic and a series of defaults across the property sector.
Chinese regulators declared this year that Evergrande had committed fraud, overstating its sales by tens of billions of dollars between 2019 and 2020, and ordered the company to be liquidated.
In 2022, the Ministry of Finance advised Chinese firms to be “extremely cautious” about hiring auditors with recent fines or penalties. This directive is part of a broader strategy by Beijing to reduce reliance on the Big Four global accounting firms and promote local auditors from China or Hong Kong, aiming to enhance data security and diminish western influence.
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Over 30 Chinese firms cut ties with PwC amid Beijing’s pressure over Evergrande scandal

A US federal judge has ruled that Google violated monopoly laws by leveraging its market dominance in online searches to suppress competition, a landmark decision that could reshape the operations of America’s largest tech companies.
Handling approximately 90 per cent of global internet searches, Google exploited its leading position to exclude rivals, the court found. This ruling marks the first significant antitrust victory for the US Justice Department in over two decades.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” wrote Judge Amit P. Mehta in a comprehensive 276-page decision. This case is the initial ruling in a series of lawsuits targeting alleged technology monopolies.
In 2021, Google spent $26.3 billion to secure its search engine as the default on smartphones and web browsers, maintaining its dominant market share, the judge noted.
Mehta’s decision against Google, owned by Alphabet, sets the stage for a second trial to determine corrective measures, potentially including a ban on payments to smartphone manufacturers for setting Google as the default search engine.
The Justice Department accused Google of monopolistic practices and abusing its power for profit during the trial, which commenced in September.
Google CEO Sundar Pichai, in his testimony, acknowledged the critical importance of having Google set as the default search engine on various devices to retain user loyalty, stating, “We definitely see value.”
Google’s legal team refuted claims of anticompetitive behaviour, arguing that the default status had limited impact and that dissatisfied users could easily switch.
Initiated by the Trump administration, this case is one of five targeting the market dominance of tech giants. A second antitrust lawsuit was also filed against Facebook’s parent company Meta during Trump’s tenure. Under President Biden, additional cases have been brought against Google, Apple, and Amazon.
US Attorney General Merrick Garland hailed the ruling, stating: “This victory against Google is a historic win for the American people. No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”
Google intends to appeal the ruling. Kent Walker, Alphabet’s president of global affairs, commented: “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available. We appreciate the Court’s finding that Google is ‘the industry’s highest quality search engine, which has earned Google the trust of hundreds of millions of daily users’… Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal. As this process continues, we will remain focused on making products that people find helpful and easy to use.”
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Google found in breach of monopoly laws over online searches

A government scheme designed to promote innovation and boost the economy has lost over £4 billion to fraud and error since 2020, due to widespread abuse.
The research and development (R&D) tax credits scheme, intended to drive world-leading innovation, has been plagued by dubious claims, turning into what experts describe as a “wild west”. Claims included a window-cleaning firm’s “groundbreaking” method to hold a water bucket at height, a pub adding vegan and gluten-free options to its menu, and businesses redesigning their corporate websites.
According to HM Revenue and Customs’ (HMRC) annual report, the estimated cost of fraud and error in the scheme totalled more than £4.1 billion from 2020-21 to 2023-24. HMRC reported that the reliefs expenditure in 2023-24 was £7.7 billion.
This revelation comes as Chancellor Rachel Reeves pledges to crack down on tax fraud and non-compliance, with Labour aiming to recover £5 billion in tax revenues by the end of the current parliament. Tax officials labelled the fraud and error in R&D tax reliefs as “clearly unacceptable”, promising public action.
Colin Hailey, a technology tax expert, testified to Parliament about abuses in the scheme more than six years ago. He criticised the lack of proper vetting by HMRC and noted the role of agents claiming hefty commissions for filing these dubious claims. “It was the wild west. These advisers were cold-calling firms and saying, ‘you don’t think you’re doing R&D, but we can help you’,” Hailey said.
Companies from various sectors, including care homes, pubs, fitness centres, and dental clinics, were inundated with calls from agents urging them to apply for the tax credits. A tax consultancy claimed to have saved a hotel and pub in Chester £28,000 for “innovative menus, catering for vegan and gluten-free diets”.
HMRC did not confirm whether such claims were legitimate. However, a House of Lords finance bill subcommittee heard in November 2022 that some advisers boasted a 99% acceptance rate of claims by HMRC, referring to the scheme as “free money”.
Introduced in 2000 to address declining R&D spending in Britain, the scheme reduces a firm’s corporation tax bill or provides a direct payment if the claim represents a significant advance overcoming scientific or technological uncertainty.
HMRC’s annual accounts reveal that error and fraud in the scheme cost £1.127 billion in 2020-21, £1.337 billion in 2021-22, £1.051 billion in 2022-23, and £601 million in 2023-24. An analysis of claims for small and medium-sized firms in 2021-22 estimated that about one in four contained errors or fraud, marking it as one of the highest rates of non-compliance among government spending programmes.
In response, HMRC is now rigorously checking claims and increasing compliance inquiries to recoup some of the lost billions.
An HMRC spokesperson stated: “We generated a record £843.4bn in tax revenues last year, up 3.6% on the previous 12 months. With R&D claims, public money is at stake, and taxpayers rightly expect us to scrutinise them. We do that thoroughly and fairly, and the overwhelming majority of valid claims are paid on time. But the levels of non-compliance within these schemes are clearly unacceptable, and the public rightly expect us to take action. This includes better help, guidance, and processes, as well as decisive action against the minority who deliberately set out to abuse the schemes.”
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‘Free money’: £4bn lost to fraud and error on flagship HMRC ‘innovation’ scheme

Evolve Business Group, a Wigan-based specialist in managed network and IT solutions, has received a multi-million-pound investment from BGF, a leading growth capital investor in the UK and Ireland.
Founded in 2005, Evolve has built a solid reputation for helping businesses reduce costs and simplify service management across various sectors, including retail, hospitality, food-to-go (FTG), and petroleum franchises.
Over the past four years, Evolve has seen significant growth, with turnover rising from £6.8 million to a projected £20+ million this year. The company aims to double this figure within the next three years. The new funding from BGF will support Evolve’s ambitious plans for UK and international expansion, focusing particularly on the United States, where it currently operates over 1,000 sites in the fuel forecourt industry and plans to expand into the Quick Service Restaurant (QSR) sector.
The investment will also enable Evolve to enhance its infrastructure by establishing a new warehouse in Wigan, pursue further acquisitions to accelerate growth, and increase its national and international headcount by 40% over the next three years. Since 2020, Evolve has expanded its workforce from 23 to 117 employees.
Alan Stephenson-Brown, CEO of Evolve, commented: “Today’s announcement marks a pivotal moment in Evolve’s journey. The investment from BGF is not just a testament to our robust growth and the confidence of our investors; it’s also a strategic step forward in advancing our mission to innovate in our industry and take the pain out of connectivity for our customers. We are excited about the opportunities this investment will unlock and remain committed to delivering unparalleled value to our stakeholders.”
He added: “BGF has the right level of experience we need as an ambitious and fast-growth business, with the added benefits of a dedicated value creation team and strong network. Its strong reputation for supporting dynamic and exciting businesses on a wide range of growth strategies makes them an ideal partner as we enter the next phase of our growth journey.”
The deal was led by Pinesh Mehta and Josh Bean from BGF’s Manchester team. As part of the investment, Adrian Thirkill will join the board as non-executive chair. Thirkill, the former CEO of GCI, one of the UK’s largest privately-owned ICT service providers, brings extensive sector and strategic experience to the board.
BGF investor Pinesh Mehta added: “Evolve has a strong track record of achieving top-line growth through a loyal and longstanding customer base that spans 10 countries, with over 6,000 sites now managed by the business globally. That strength and depth, in both proposition and presence, is driven by a highly experienced management team who have the experience to scale a business in a robust marketplace that has significant potential. Business and support services is a sector that BGF understands inside and out, having invested more than £350 million, supporting over 50 businesses. Our credentials, combined with Evolve’s ambition and expertise, make this an extremely exciting deal, and we’re delighted to be joining the team as they embark on this exciting chapter.”
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Evolve Business Group secures multi-million-pound BGF investment to drive ambitious growth

GraphEnergyTech, a Cambridge spin-out pioneering alternative electrodes for solar panels, has secured £1 million in funding from an investment round led by Aramco Ventures, the venture capital arm of Saudi Aramco.
The company has developed a novel conductive graphene ink for solar panel electrodes, offering a more sustainable and cost-effective alternative to the silver traditionally used. This breakthrough technology is particularly significant as silver, while highly conductive, faces supply constraints amidst growing solar demand.
GraphEnergyTech’s conductive graphene ink, derived from a process adapted from the pharmaceutical industry, effectively replaces silver in solar cells. Given that silver accounts for almost 14% of global consumption for solar demand—a figure projected to rise—the industry is concerned about potential shortages. The University of New South Wales predicts that the solar sector could deplete 85-98% of the world’s silver reserves by 2050.
Dr Thomas Baumeler, CEO of GraphEnergyTech and a PhD graduate in solar energy, emphasised the company’s focus on solar panel manufacturers but highlighted potential applications in other sectors. “We are initially targeting solar panel manufacturers due to our expertise, but we are also exploring applications in batteries with a Korean partner,” Baumeler said.
GraphEnergyTech has garnered significant support from influential figures in the scientific community, including Michael Grätzel, a leading innovator in solar panel technology and Baumeler’s PhD supervisor. Grätzel’s involvement has opened doors for the company within the industry.
Uniquely, GraphEnergyTech is a dual spin-out from both the University of Cambridge, through the Cambridge Graphene Centre, and the Swiss Federal Institute of Technology Lausanne.
Frontier IP, an AIM-listed co-founder of GraphEnergyTech, which holds a 23.97% equity stake in the business, is expected to confirm the investment news on Monday.
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£1m boost for Cambridge spin-out behind solar panel innovation

Board Intelligence, a leading AI-driven firm enhancing boardroom performance, has sold a majority stake to Californian private equity house K1, valuing the London-based business at up to $300 million (£230 million).
This significant investment will see multimillion-pound payouts to founders Jennifer Sundberg, 44, and Pippa Begg, 40. The founders plan to leverage K1’s investment to drive the international expansion of the business they established in 2009.
Board Intelligence boasts a client base of 3,000, including prominent names like John Lewis, National Grid, and ITV. The company operates three primary divisions: an advisory consultancy service and two IT arms. One IT division manages a secure portal for distributing board papers, while the other offers an AI tool named Lucia, which assists boards in evaluating the balance of the reports they receive. “If you’re writing a report and it’s 100 per cent good news, that’s probably not a balanced report,” explained Begg.
Before K1’s investment, Sundberg, Begg, and their families owned 40% of the company, with 12% held by 120 employees, 8% by angel investors such as boardroom veteran Sir John Egan, and 41% by private equity firm Susquehanna, which is now exiting. Most existing shareholders are maintaining their stakes, except for one angel investor, the estate of the late Sir Mike Wilson, founder of St James’s Place.
While specific transaction terms were not disclosed, Board Intelligence has seen substantial growth, doubling its valuation from $100 million three years ago. Despite a loss of £859,000 in 2022, as reported in its latest Companies House filings, the company has since returned to profitability.
Sir John Egan, a former CEO of Jaguar and BAA, supported the company for its potential to streamline boardroom documentation. “I had just started work as a non-executive chairman and was appalled at the huge board packs — often 200 to 300 pages long — and also that, often, little thought had gone into what the board meeting itself was supposed to achieve,” he said.
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AI firm secures $300m valuation in major US private equity deal

Jeremy Hunt, the recently unseated chancellor, has dismissed accusations from Rachel Reeves regarding a supposed £22 billion fiscal gap as unfounded.
Despite stepping down from his position at No 11 Downing Street just a month ago, Hunt appears relieved and in good spirits as he addresses these claims.
In an interview with the Times, whilst relaxing at a café in Godalming, Surrey, Hunt seemed to relish his reprieve from the pressures of his former role. Yet, Reeves, his successor, has sought to undermine his legacy by accusing him of fiscal mismanagement. She asserts that Hunt’s policies have forced Labour into making unpopular decisions, including the cancellation of infrastructure projects and impending tax increases.
Hunt counters these allegations vigorously, labelling them as fictitious and a political manoeuvre. He highlights his historically cordial relationship with Reeves and expresses dismay at her tactics. He believes that her accusations are a significant misstep that the Conservative Party can exploit to challenge Labour’s justification for tax hikes in the upcoming budget.
To bolster his defence, Hunt has contacted Simon Case, the cabinet secretary, seeking clarity on the financial estimates approved just weeks before Reeves’s claims. He argues that if there had been such a substantial fiscal deficit, it would have been impossible for Treasury officials to overlook it or conceal it.
Addressing the notion of the alleged fiscal gap, Hunt points out that while pressures on public finances are perpetual, they are manageable through strategic planning and productivity improvements. He criticises Reeves for opting to implement £9.4 billion in public sector pay rises without addressing productivity inefficiencies, which he deems unsustainable.
Hunt also rebuffs claims regarding overspending on the asylum system and the use of the reserve fund. He criticises Labour’s decision to cancel the Rwanda scheme, arguing it has led to increased costs rather than savings.
Looking ahead, Hunt is preparing a counterattack while serving as shadow chancellor temporarily. He has urged the Conservative Party to address key issues such as immigration and the housing crisis to regain voter trust, particularly among younger demographics.
Reflecting on the Conservative Party’s recent electoral defeat, Hunt emphasises the need for strategic patience and learning from Labour’s approach under Keir Starmer. He remains confident in his own legacy, pointing to the current favourable economic indicators as evidence of his effective stewardship.
As the Conservative leadership contest unfolds, Hunt plans to return to the back benches, leaving his endorsement open but firmly advocating for policy-driven solutions to the party’s challenges.
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Hunt refutes Labour’s claims of fiscal ‘black hole’