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The charts that prove Jack Monroe got the fastest rise in cheap food prices wrong Business

The ONS reviewed the figures after Ms Monroe raised concerns that poorer families were disproportionately feeling the pinch from faster increases in prices of valuable items.

His experimental data revealed that the prices of pasta, ground beef and bread jumped, but the cost of budget potatoes, cheese, pizza and fries fell.

Economy brand pasta was up 50% in the year to April and crisps were up 17%.

However, overall, the rate of inflation on low-priced items was broadly in line with the average product line, contrary to Ms. Monroe’s complaints.

Nonetheless, Ms Monroe claimed victory on Twitter, saying the numbers proved it is “much more expensive to be poor”.

She said: “I am very grateful to have been part of this process and hope that in the future, MPs who set the figures for increased benefits, as well as discussions around a living wage real, will take this disparity into account.”

Others questioned Ms Monroe’s interpretation of the new ONS figures. Robert Colvile, head of the Center for Policy Studies, said: “It may well be that the prices of more expensive pasta or bread, for example, have not risen as much, but that’s not in this data.”

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Source: www.telegraph.co.uk
This notice was published: 2022-05-30 10:52:17

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Electric cars should be subject to a ‘tire tax’, says air quality adviser Business

Boris Johnson brandished Mr Khan’s latest proposals ‘another tax on families and businesses and white vans and the like, is going to hit people just when we’re trying to put more money in their pockets’.

Professor Lewis, also chairman of the Department for Transport’s Science Advisory Council, said: “When everyone has a low-emission vehicle, low-emission zones become a helpless control lever in trying to manage air pollution. air.

“A world where we [have] congested roads full of electric cars [also] is not particularly appealing… Even though they are electric, [they] will generate a lot of particles.

“At some point in the future, when most of these cars are gone, a different form of air pollution control” will likely be needed, he added.

“We have to plan how we are going to handle vehicles in big cities like London in the future when we have a fleet of largely electrified vehicles.”

Luke Bosdet, a spokesperson for AA, said he opposed the idea of ​​an electric vehicle tax that would deter them from replacing traditional gasoline or diesel vehicles.

“Electric vehicles don’t produce emissions from their tailpipes,” he said. “They represent a huge leap forward. Technology will evolve to reduce everything that comes from the tires. You shouldn’t dissuade people from buying electric cars.

Mr Khan’s plan to expand the Ulez area to the outskirts of the capital is due to come to fruition in 2023. His campaign to tackle harmful emissions follows the tragic death of Ella Adoo-Kissi-Debrah, aged nine-year-old who became the first person in the UK to have air pollution listed as a cause of death.

Gareth Bacon, Tory MP for Orpington, has launched a petition to block the Mayor of London’s proposals.

He said: “If you are in the outskirts of London and you have a vehicle that does not meet the Ulez standard it will cost you and if you use this vehicle every day it will cost you an additional £ 4,500 a year . ”

A spokesman for the Mayor of London said: “Toxic air caused by traffic still leads to children growing up with stunted lungs and nearly 4,000 premature deaths a year – with the highest number of deaths attributable to air pollution in the outer boroughs of London, which the Ulez does not currently cover.The rate of improvement in air quality in the outskirts of London has also been slower than in central and central London. London.

“When evaluating the various options, the rising cost of living was a key consideration. With Londoners’ budgets under pressure, the mayor would not ask Londoners to pay more unless he is convinced it is justified to reduce pollution, save lives and protect health.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-30 09:19:07

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Nuclear security warning threatens to derail Johnson’s energy revolution Business

Prime Minister Boris Johnson has said he wants eight new reactors to be built by 2050 to replace shutting down generators and supply around 25% of projected electricity demand.

France’s state-owned EDF, which builds Hinkley and Sizewell, came under design pressure on its technology after China’s Taishan power station, which runs on an EPR reactor, shut down in July 2021 due to faults with the fuel rods.

The Austrian government has said Britain should properly investigate the issues at Taishan “to prevent the same or similar issue from occurring at the Sizewell C EPR”.

Government sources said the comments will be taken into account in deciding whether the project should go ahead.

An EDF spokesperson said: “We accept that there is a diversity of opinion on nuclear energy. The fact is that the EPR is a proven technology that has been thoroughly scrutinized by nuclear regulators in a number of countries, including the UK, who have approved it as safe.

Austria and other countries are allowed to comment on Britain’s nuclear plans under the Espoo Convention, an international agreement to ensure nations engage with each other on projects that could have consequences environmental issues for several countries.

Charlotte Nichols, Labor MP and member of Parliament’s Business, Energy and Industrial Strategy Committee, said Austrians should focus less on nuclear power in Britain and more on their dependence on electricity. regard to Russian energy imports.

She said: “The delivery of Hinkley Point C, Britain’s largest ever green infrastructure project, and the start-up of Sizewell C, are essential for the UK to reach net zero.

“If I was in the Austrian government, I would be more concerned about how much Russian gas they import.”
The Sizewell project is expected to generate huge investment in Suffolk.

A spokesperson for the Sizewell C Consortium, which represents suppliers working on the scheme, said: “The UK nuclear regulator, the ONR, is a respected global regulatory leader.

“We have full confidence in the proven design and safety of the EPR model, and the replication benefits it will bring to the UK; tens of thousands of skilled jobs across the country, billions of pounds worth of supply chain contracts for UK businesses and increased energy security.

A government spokesperson said: ‘The UK has strong and effective safety regulations for nuclear installations and plays a leading role in setting international safety standards.

“Our regulators would not allow the development or operation of a nuclear power plant at a site if it was not safe to do so.”

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 17:10:21

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Shanghai scrambles to avoid zero-Covid economic disaster Business

Supply was in danger of running out as suppliers to these companies were unable to continue operating, while exports plummeted after logistics systems, from trucks to ports and shipping, were shut down.

The latest figures show another 293 Covid cases in the country on May 28.

Beijing’s efforts to pull itself out of the pandemic have been difficult due to declining participation rates, especially among vulnerable older people, and a case where the country continues to use Chinese-made pharmaceuticals despite fears that they will not be as effective as those developed in the west.

According to Goldman Sachs, less than two-thirds of people over 60 have received booster doses.

Its data shows that at least nine cities, including Beijing and Shanghai and covering a tenth of the economy’s GDP, have been subject to full or partial shutdowns imposed since omicron arrived in the country.

Unemployment rose to 6.1%, against a target of 5.5%, and Goldman economists expect China’s GDP to grow 4% this year, well below the target which is also by 5.5%.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 17:21:10

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HSBC’s top investor backs free speech after ‘crazy’ climate banker suspended Business

Mr Kirk, head of responsible investing in HSBC’s asset management division, made his comments on climate change in a speech at a Financial Times conference. The speech was titled “Why Investors Don’t Need to Worry About Climate Risk”.

He said in the presentation that “there is always crazy work that tells me about the end of the world” and argued that catastrophic climate predictions were depleting resources and were unlikely to come true.

A slide from the presentation read: “Unsubstantiated, strident, partisan, self-serving, and apocalyptic warnings are ALWAYS wrong.”

Mr Kirk said: ‘The Mark Carneys of this world have to convince us all that every single one of us is wrong about climate risk. It’s possible, but it’s a big call to make.’

HSBC chief executive Noel Quinn then criticized the presentation, which was reportedly approved by senior HSBC executives.

In a post on LinkedIn, Mr Quinn said: “I strongly disagree with the remarks made to [this] FT Moral Money Summit of the week.

“They are inconsistent with HSBC’s strategy and do not reflect the views of HSBC’s senior management or HSBC Asset Management.

“We have a lot of work to do and I am determined that our team will not be distracted by the comments of the past week.”

Bill Winters, chief executive of Standard Chartered, another FTSE 100 bank, took a different view last week, warning that it has become “increasingly difficult to speak out against anything” and that employees “should speak up”.

He said, “Do I agree with opinions? No. Do I encourage free speech? Yes.”

L&G said it would remove companies from actively managed funds if they failed to meet its requirements for coal investments, carbon emissions reporting or their impact on deforestation. to address the risks posed by climate change.

HSBC declined to comment.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 14:13:44

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What is the exceptional tax and how does it work? Business

How will this work?

Mr Sunak is introducing a temporary 25% “energy profit tax” to reflect the “extraordinary profits” made by oil and gas companies.

They now face a headline tax rate of 65%, which is a combination of corporation tax – currently at 19% – existing additional levies and windfall profits tax. This figure is much higher than that of companies in other sectors which currently pay the 19% corporation tax. Some sectors have additional charges, such as an 8pc bank surcharge.

The new tax will only affect profits made after May 26, 2022 and will be “phased out when oil and gas prices return to historically more normal prices”.

Official documents accompanying the announcement indicate that it could last until 2026, with a clause removing the tax on December 31, 2025.

It is expected to bring in around £5billion in its first year, according to the Treasury, and will be calculated in a ‘similar manner’ to existing corporation tax. It will not apply to the electricity generation sector.

The levy also includes an investment allowance, which will try to incentivize these energy companies to spend money by offering 91p in tax relief for every pound invested.

In theory, oil and gas companies that significantly increase their investments would result in significant relief, which could partially offset the boost to Treasury coffers from the windfall tax.

How does the tax work in other countries?

It is not unprecedented. Other countries have already turned to windfall taxes to ease the pressure on household budgets.

Last September, when gas prices first soared, the left-wing government of Pedro Sanchez in Spain announced a one-off €3bn (£2.6bn) tax on ‘excess profits’ » energy companies to help pay for tax cuts for consumers.

Italy also imposed additional taxes on utility profits. Last month he announced a one-off 10% tax on some energy companies to fund household aid as the country relies heavily on Russian gas.

What has the UK done before?

It’s also not the first time the UK Treasury has launched a raid on companies with inflated profits.

In 1997, then-Chancellor Gordon Brown announced a windfall tax on the “excess profits” of public services following their privatization by previous Conservative governments. It aimed to rectify the “bad deal that customers and taxpayers got from the privatization of public services”.

The £5billion raised was used to fund an in-work welfare scheme known as the ‘New Deal’, which aimed to reduce unemployment.

Meanwhile, in 1981, Margaret Thatcher imposed a windfall 2.5% tax on banks as interest rates soared. It raised £400m, or around £3bn in today’s money.

What are the critics saying?

Opponents of windfall taxes warn it could hamper investment at a time when the UK is trying to increase spending to shore up the country’s energy supplies in the wake of Putin’s war.

BP chief executive Bernard Looney said a windfall tax “is not going to spur more investment” and many ministers agree. In March this year, Kwasi Kwarteng warned that the plans would be ‘a tax on jobs, destroy investment and add uncertainty to oil markets’.

Earlier this month, the business secretary added that the tax ‘doesn’t make sense’ if Britain is to encourage investment in the North Sea and have domestic energy supplies.

Many worry that it could also send the wrong signal to foreign investors if they think windfall profits could be targeted in the future.

Critics also point out that retirees often benefit from the profits of oil giants because pension funds own shares in them.

This article is updated with the latest information.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 07:10:42

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The purchase assistance program will close five months early Business

The Help to Buy housing grant scheme is due to close five months early for applications, dealing a blow to thousands of first-time buyers desperate to climb the housing ladder.

The loans scheme, which has handed out around £22bn of public funds since it was launched by George Osborne in 2013, will close to new applicants at the end of October.

Homebuilders – whose sales and share prices have been massively inflated by the grant – were told the program would end this fall rather than the end of next March in a call there. 11 days with Homes England, the quango responsible for new affordable housing.

Homes England deputy manager Kasia Locherty then shocked call participants by ordering them not to tell the public about the changes. All communication should be handled by the quango itself, Ms Locherty reportedly said.

An industry source said: ‘We were surprised and disappointed to be put in a position where we are not allowed to notify customers in a timely manner of its withdrawal.

“It’s such a popular government policy – and it also brings millions into the treasury. They don’t seem to have considered how upset young couples and families are going to be when they realize, at the last minute, that their first step on the housing ladder has just come up.

Homes England admitted updating their website to reflect the October 31 deadline after being contacted by the Telegraph about the decision. The quango added that it will be promoting the shutdown schedule on its social media in the coming weeks.

Final loan applications will be accepted in October and all will be processed over the following five months.

A government source said the October deadline would give customers enough time to legally finalize their home purchase before the scheme is fully liquidated at the end of March.

Backbench MP Sir Iain Duncan Smith, the former leader of the Conservative Party, called the decision “shameful”.

He said: “The government has trumpeted its positive results and is now turning a blind eye to an early closure. [It’s] far from being the action of a government wanting to make home ownership accessible to all.

Kevin Hollinrake, Conservative MP for Thirsk and Malton, and co-founder of Hunters Estate Agents, said he was not in favor of the purchase assistance scheme as it targeted new homes.

However, he said Homes England’s decision seemed “extraordinary”.

Mr Hollinrake added: “If they are ending something early that was supposed to last until March, that is clearly wrong. This work should be done in a coordinated way and not piecemeal. It should be done in accordance to government policy and government timelines.”

First unveiled by Mr. Osborne in his Spring 2013 budget and originally designed to last three years, Help to Buy was designed to help high-risk homebuyers left out of the real estate market.

The scheme – which was the biggest government intervention in the market since Margaret Thatcher sold council housing – allowed people to buy a home worth up to £600,000 with just a 5pc deposit . The government guarantees the next 15% of the loan for a fee, reducing potential losses for banks so they can offer cheaper mortgages.

In the years that followed, new derivations from the scheme included mortgage guarantees, co-ownership and Isas purchase assistance. In its first year of operation, one-fifth of new builds sold were purchased with support from the Purchase Assistance Program.

But rising interest rates and the country plunged into a cost of living crisis have raised fears that some borrowers may not be able to remortgage their loans.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 05:00:00

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the myth of tank supremacy was demolished in Ukraine Business

The Bayraktars destroyed all kinds of Russian targets, including missile systems that should have taken them down. It is even believed that Bayraktars or similar drones contributed significantly to the sinking of the Russian missile cruiser Moskva.

It is saying too much that there is no need for supersonic jets. We probably need it, for specialized tasks. But the idea that cheaper, simpler aircraft cannot be effective in modern, high-intensity warfare – even, as it is today, against the most powerful adversary possible in the world – has been very clearly exposed as a nonsense. The idea that the fast jet should be the standard airstrike platform was fatally undermined by the war in Ukraine.

The assumption that future military aircraft should be flown is now even more questionable than it already was. High-end missions of the Sead/Dead or Moskva type are best carried out without a pilot, by jet drones called “cruise missiles”. The same goes for daily strike tasks.

The RAF’s current plan to have a small handful of drones and as many manned fast jets as possible needs to be rethought. The RAF won’t do it alone. An Air Force without a significant number of combat aircrew could not long remain an independent service.

But what about the army?

Going back to conventional military wisdom, if neither side can take control of the skies, we go back to the vision of pre-smart weapons ground warfare of the 1980s: the vision that is still relevant in a large part of the British army.

According to this view, there is practically nothing that can stop a large, heavily equipped tank army, except another such tank army.

Soldiers believed for generations that heavy armored forces would overthrow lightly equipped opposition like “speed bumps”. Heavy Attackers may not be able to take cities quickly, but they will quickly bypass them, surrounding and cutting them off. Lightly equipped opposing defenders will be pierced and surrounded in their pockets by fast and irresistible armored thrusts. The supply lines of surrounded defenders will be cut and they can only expect defeat.

This view of land warfare is why the British Army still tragically persists in trying to organize itself into a heavy armored force similar to the one General Smith commanded in 1991. Another British general, a recent leader of the army, said your correspondent that it is because “you must have a good armyLewis”.

The Russian army is what the British army wants to be

The Battle of Ukraine has shown very clearly that the view of land warfare that “tanks dominate” is simply not true.

Russia’s invading forces were pretty much exactly what the British Army wanted to be. They had plenty of tanks, and their tanks were much more modern than the outnumbered Ukrainians, often a generation older. They had modern armored fighting vehicles for their infantry and plenty of self-propelled heavy artillery.

The Russians had also faced one of the sad realities of heavy armored forces. It is a reliable rule of thumb that even in good armies less than half of any given armored force will actually have working gear and be combat capable.

In 1991, the British Army theoretically had several armored divisions. Sending just one to the Gulf War should have been easy. In fact, however, General Smith tells us: “In the Gulf…I had all the up-to-date tanks of the British Army…I was also given almost all the tank engines in the inventory . The rest of the army had been stripped of its equipment.

The modern Russian military has dealt with this issue similarly by going into its brigades, which theoretically have multiple battalions, and taking all their best weapons, vehicles and soldiers to produce a single Battalion Tactical Group (BTG). Russia’s invading forces are made up of mostly these BTGs, much like Smith’s force in 1991 had all the decent equipment and spare parts of the British Army at the time.

Ukrainian tanks are few and mostly old. The Ukrainian infantry has old armored vehicles, or just trucks and vans in many cases. Ukrainian artillery during the invasion of Russia was scarce and often consisted of unprotected towed guns rather than armored self-propelled guns.

The Ukrainian front line troops were tough, mostly hardened Donbass veterans: but the Russian BTGs are also staffed with their best. The BTG are mainly made up of the new class of professional Russian soldiers “kontraktniki”. Short-lived conscripts who did not want to were mostly left behind in the units that were stripped to create the BTGs.

The invasion should have been a military picnic for the Russians, then, even without a victory in the sky. But that was not the case.

The elite, heavily armed and armored BTGs failed to even encircle Kharkiv just across the border, let alone Kyiv. They have withdrawn from both objectives and are only making the slowest and most painful progress in the southeast. They suffer terrible losses. Their mighty Main Battle Tanks (MBTs) were reduced to wreckage set ablaze in large numbers.

You don’t need a tank to beat a tank

This is very strange, as Western soldiers – including many British Army officers – have insisted for decades that the only thing worth sending against a modern MBT is an equally modern. The only weapon capable of reliably piercing the extremely tough armor of a MBT, we have long been told, is a specialized cannon, piercing heavy armor, firing hypervelocity penetrators. The only way to bring this gun into combat is to put it in a tank.

Armored soldiers will reluctantly admit that there are also shaped-charge explosive warheads, which can be placed on fairly small rockets and missiles: small enough for a soldier to carry and fire from the shoulder, or to be fired by drones, for example. But these things are not serious concerns, say the tank soldiers. The Russians have long used “explosive reactive armour”: this is a plate of explosive mounted on the outside of the tank that detonates when hit by a shaped charge warhead, disrupting the focused explosion of the warhead and rendering it harmless. .

That’s what the funny blocks stuck all over Russian tanks are. These blocks supposedly mean that the tank remains invincible and unstoppable by anything else on the battlefield except another tank.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-29 05:00:00

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Jamie Oliver recoups £2.4m after restaurant empire collapses Business

Celebrity chef Jamie Oliver has recouped £2.4million from the collapse of his Italian restaurant empire, company documents reveal, as chain suppliers are forced to swallow tens of millions of loss books.

Documents released by Interpath at the end of the administrative process show Mr Oliver’s holding company received an additional payment of £580,000 between last November and this month. This brings the total that has been paid to Jamie Oliver Holdings, a company majority owned by Mr Oliver, to £2.4million.

Interpath said it was a “significant shortfall” on the amount owed to Mr Oliver, who spent £25million trying to save the Italian chain in 2019.

However, the chain’s suppliers bore the brunt of the losses. Jamie’s Italian owed around £85m when he went bankrupt, including £21m in debt to a group of creditors including UK food producers and councils.

Unlike these other companies, Jamie Oliver Holdings was classified as a secured creditor and was therefore guaranteed to receive a portion of the debts owed to it.

Unsecured creditors, which include suppliers and advisers, received just £520,000 of the £21million owed to them.

One of its suppliers, Direct Meats, has previously described feeling “extremely disappointed with the companies falling into administration”. Filings last July, before Interpath asked creditors to submit their claims, suggested that at least one food supplier owed almost £800,000.

Jamie Oliver Group declined to comment.

The collapse of Jamie’s Italian came amid a downturn in the casual dining sector, with other companies such as Gaucho, Byron and Gourmet Burger Kitchen struggling.

Jamie Oliver’s Italian chain has been through a painful restructuring during which it got rid of unprofitable sites, in a bid to stay afloat. However, when it sank almost 1,000 jobs were lost, with the closure of 22 of its 25 UK restaurants described by Mr Oliver as ‘the hardest thing I have ever had to do’.

Mr Oliver said at the time: “I am deeply saddened by this outcome and would like to thank all the staff and our suppliers who have put their heart and soul into this business for over a decade. I appreciate how difficult it is for everyone affected.”

The three remaining UK restaurants – at Gatwick Airport – were bought by SSP out of administration.

Mr Oliver has since suggested he may seek to revive his UK restaurant empire, telling the Radio Times last year: “I’m watching for now but will definitely be back in the game.”

The news that the administrative process for Jamie’s Italian is now complete comes weeks after Mr Oliver found himself at the center of a cost of living dispute. He claimed the government was using the current squeeze on household incomes as an “excuse” to delay tackling obesity.

Earlier this month, Mr Oliver staged a protest outside Downing Street in which he denounced the government’s decision to end a ban on ‘buy one, get one free’ offers ( BOGOF) for junk food.

Boris Johnson said of the move: ‘If people can save on their food bills with certain deals, I think we just need to be flexible as we continue to tackle obesity.

Mr Oliver argued that the BOGOF deals were not helping household budgets. “This particular mechanism causes people to spend more of their income and waste more,” Oliver said. “Using the cost of living as an excuse is wrong, it’s completely unfair.”

Critics have argued, however, that many people rely on the deals for food, with Kantar figures showing more than a fifth of Britons are struggling to make ends meet. Some items have increased by more than 20% in price.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-28 15:00:00

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The National Lottery could be suspended for the first time in gaming history Business

A legal battle could bring the National Lottery to a halt for the first time in 30 years, robbing good causes and players of millions of pounds, the regulator has warned.

In court submissions seen by The Telegraph, the Gambling Commission said a legal challenge by Camelot against the loss of its lottery license could delay the handover to rival Allwyn on February 1, 2024.

In evidence before the High Court, John Tanner, the Commission’s executive director, warned that this could lead to Czech operator Allwyn having insufficient ‘implementation’ time, leading to a ‘real risk that there there is a period when the National Lottery does not work at all.

The Commission is seeking to overturn a court decision to suspend the transfer process pending the outcome of Camelot’s legal challenge after Allwyn was named the preferred candidate for the fourth license in March.

Camelot, the lottery operator since its inception in 1994, claimed the Commission had made its decision “seriously wrong” and, in its court findings, warned that it would effectively bankrupt the company and prevent it from bidding on other contracts internationally.

However, the Commission warned that Allwyn needed at least 19 months to prepare and complete the complex process of taking over the lottery operation, the first transfer from one company to another in its 30-year history. This would require it to start in June or July at the latest.

In his remarks, Mr Tanner said that as long as the Commission was prevented from reaching an ‘enabling agreement’ with Allwyn to start the ‘unprecedented and untested’ transfer process, there was a serious risk of disruption to the lottery .

He said: “While the Commission is not authorized to enter into the Enabling Agreement with Allwyn, the Commission and Allwyn will suffer material prejudice by being unable to commence significant steps towards the start of the fourth licence.

“This will almost certainly mean that at a minimum the National Lottery will not be operating to its full potential at the start of the fourth license term.

“Furthermore, there is a real risk in these circumstances that there will be, after the end of the third licence, a period when the National Lottery does not operate at all.”

He said the delays could jeopardize prize money and players’ money for good causes. Mr Tanner said: ‘There would be no contributions to good causes during any period when the National Lottery was not operating.

“The interests of participants would be adversely affected to the extent that winners of National Lottery games under the Third License [held by Camelot] may not be able, after the expiration of this license, to claim prizes.

A typical draw features 500,000 to 1.5 million prizes that can be claimed up to six months later. Camelot and Allwyn will need to agree on a process to honor “millions of outstanding prizes” and have earmarked funds to ensure no one loses, according to the Commission.

Even if there was a delay in the signing of the enabling agreement but no break in the operation of the lottery, the Commission warned that there could still be £1 billion less for good causes due to a shortfall in the beginning, compounded by a loss of interest on the money.

In its application, Allwyn proposed an implementation period of 22 months, including a three-month emergency period. The Commission warned that June 30, 2022 would be less than the minimum 19 months needed.

Mr Tanner said: “If the Commission is unable to complete the Enabling Agreement, it is almost inevitable that material and irreversible harm will be done to the National Lottery and good causes and there is a high risk that this harm will become significant.”

The decision is the latest salvo in one of the most heated contests for the lottery license in its 28-year history. In the lead up to the announcement, Allwyn and Camelot had appointed attorneys in preparation to challenge the outcome.

The premise of Camelot’s challenge is how a “risk factor” was applied to competitors’ bids. In the run-up to the announcement, MPs and rival bidders had questioned whether applying the risk factor, which affected 15% of the candidate’s final mark, would favor the incumbent.

Camelot has since argued that the regulator ruled out the use of the risk factor in the final award due to concerns, allowing Allwyn’s far more ambitious but potentially risky business plan to emerge victorious.

Allwyn had promised far higher returns to good causes despite plans to halve the price of a ticket for the National Lottery main draw.

In its submission to the court, Camelot warned: “Awarding the fourth license to Allwyn would effectively put [Camelot] bankrupt, and CUKL would likely be liquidated in due course.

He added: “The loss of the UK contract will significantly reduce Camelot Group’s ability to bid on and operate international lottery contracts in the years to come.”

A spokesperson for Camelot said: “We have made it clear in our representations to the Court that we believe there is no threat of suspension of the National Lottery in the period between the third and fourth licenses. Camelot has offered a number of possible solutions to the Court – including an interim license which has already been used in similar circumstances – which eliminates any such risk.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-28 15:00:00