Britain’s ruling Conservative Party has been fined £17,800 ($23,547) for its failure to keep proper records over a donation to refurbish Prime Minister Boris Johnson’s flat.
The penalty was levied on the party in relation to a donation of £67,801.72 from Huntswood Associates Limited in October 2020, including £52,801.72 connected to the costs of refurbishment at 11 Downing Street.
The prime minister lives in the flat with his third wife Carrie Johnson, who gave birth to the couple’s second child on Thursday.
An investigation carried out by the Electoral Commission, an independent body which regulates public finances in the UK, found that the Tory party had failed to abide by laws on the reporting of any donations received.
“Our investigation into the Conservative Party found that the laws around the reporting and recording of donations were not followed,” said Louise Edwards, director of regulation at the Electoral Commission.
“We know that voters have concerns about the transparency of funding of political parties.
“Reporting requirements are in place so that the public can see where money is coming from, and inaccurate reporting risks undermining trust in the system.
“The party’s decisions and actions reflected serious failings in its compliance systems.
“As a large and well-resourced political party that employs compliance and finance experts, and that has substantial sums of money going through its accounts, the Conservative Party should have sufficiently robust systems in place to meet its legal reporting requirements.”
It was also found that the party's financial record on the payment of £52,801.72 that was made for the refurbishment “was not accurate".
The party was fined £16,250 for failing to report the full value of the donation and £1,550 for contravening the requirement to keep proper accounting records.
The refurbishment of the flat came after Mr Johnson moved into Downing Street in July 2019, and was reported to have cost about £200,000.
Mrs Johnson is believed to have chosen £850-a-roll gold wallpaper by designer Lulu Lytle to line the walls of the flat.
The fine is another blow to the Prime Minister’s authority as he reels from the scandal surrounding the alleged lockdown-breaking Christmas party at Downing Street last year.
Last week, news reports claimed the gathering was held on December 18, when social events were prohibited under coronavirus restrictions. Mr Johnson repeatedly refused to say whether a party had taken place, only saying “guidelines were followed at all times”.
On Tuesday a leaked video showed the prime minister’s then press secretary Allegra Stratton laughing and joking about a “fictional” festive party, at which aides were served cheese and wine and social distancing rules were not observed.
Following the leak, there was silence from the government on Wednesday morning and ministers pulled out of a series of scheduled media interviews. Mr Johnson broke his silence at the weekly session of Prime Minister’s Questions in the House of Commons by saying he was “furious” about the video and had ordered an internal investigation to determine whether a party was held. He apologised to the British public “for the offence it has caused up and down the country”.
But critics have warned the public’s trust in him has been damaged and a Sky News poll showed just 12 per cent of people think he is telling the truth about not knowing about a party.
Hours later, Ms Stratton resigned from her top role as the government’s spokeswoman for Cop26. In a tearful apology delivered outside her north London home, referring to comments she had made in the video making light of Covid rules, she said: “I will regret those remarks for the rest of my days.”
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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Read more from Aya Iskandarani
UAE currency: the story behind the money in your pockets
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Rating: 3/5
The Comeback: Elvis And The Story Of The 68 Special
Simon Goddard
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Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
The specs: 2018 GMC Terrain
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RESULT
Liverpool 4 Southampton 0
Jota (2', 32')
Thiago (37')
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Man of the match: Diogo Jota (Liverpool)
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