Daniel Korski latest: Tory London mayoral hopeful drops out of race after groping claims

Downing Street described Daisy Goodwin’s groping allegation against Tory London mayoral hopeful Daniel Korski as “very serious”.

Asked if Rishi Sunak believes Mr Korski is a suitable candidate, the prime minister’s press secretary said: “As you know there are three candidates and the prime minister does not endorse any single one candidate.

“Obviously these allegations are very serious. They are allegations that have obviously been denied by Daniel Korski himself. They should be handled in the proper way.”

Rishi Sunak has encouraged other women to come forward following “very serious) groping allegations against a Tory mayoral candidate.

Daniel Korski has been accused of touching a TV producer’s breast in Downing Street.

Daisy Goodwin, who made the sensational accusation on Monday evening, says she has since has “been contacted by other women with some very interesting stories”.

She said she could not discuss the details “for legal reasons”, but added that they had made her feel “entirely justified” in naming him.

Asked if the prime minister would encourage those who feel they have been ill treated by members of government staff – former or present – to come forward, his spokeswoman said “of course”.

Downing Street also described the allegations as “very serious”.

Mr Sunak’s press secretary said: “Obviously these allegations are very serious. They are allegations that have obviously been denied by Daniel Korski himself. They should be handled in the proper way.”

Downing Street also said the “allegations should be dealt with by the appropriate authority and taken seriously.”

A number of Tory MP backers of Daniel Korski have now paused support for his London mayoral campaign in the wake of the groping allegation against him.

Children’s minister Claire Coutinho, who previously endorsed Mr Korski in the contest, said her support is “on pause” and described Ms Goodwin’s sexual assault allegation against Mr Korski is “serious and concerning”.

Skills minister Robert Halfon has also paused his support while former Tory health minister Lord Bethell, who had also endorsed Mr Korski, said he is “committed to support but keeping a watchful eye”.

As a sort of long-term real world experiment into the merits of running a basic utility in the private sector, the seemingly imminent emergency renationalisation of Thames Water suggests it was not a very good idea in the first place. Indeed, it may now be fairly judged as a failure – and an embarrassing one at that for the party responsible, writes Sean O’Grady.

Other water companies are available, as they say, and are not in as sorry a state as old father Thames’ corporate emanation, but the best that can be said about this episode is that it proves that life for a water company as a joint stock concern owned by shareholders doesn’t necessarily guarantee clean rivers, superb customer service and, indeed, even a steady reliable income for the owners.

Most private companies that are, like Thames Water, loaded up with too much debt and lumbered with questionable management go bust, sadly, and the fate of staff, assets, shareholders and customers are left to market forces. Yet in the case of a water company, for obvious reasons of supply and sanitation, it cannot be left to just close down.

Downing Street, which refused to be drawn on the Daniel Korski allegations, also urged that no conclusions be drawn over the claims.

Asked who Mr Sunak believes, his press secretary said: “I’m not going to get into ‘he said, she said’.

“The two parties are telling different stories, the proper processes should be followed and conclusions shouldn’t be drawn on until the processes are followed through.”

She said the vetting process for London mayoral candidates is carried out by the Conservative Party.

Asked if the PM was aware of any concerns before press reports, she said: “No, not that I’m aware of.”

Labour has ditched a pledge to control surging rents if it wins the next general election – nine months after endorsing the policy.

Lisa Nandy said in September that that she wanted to give local authorities the power to freeze rents, telling party conference: “Doing nothing is not an option.”

But speaking at a conference on Wednesday she described the approach as a “sticking plaster” and claimed it would increase homelessness.

Jon Stone reports.

Kemi Badenoch has said she is “very concerned” over fears that Thames Water could collapse.

The business secretary told Sky News it was important to make sure that the company “survives” as there was outstanding issues involving sewage disposal and keeping peoples water bills down.

It comes amid reports that the company is on the verge of going bust.

The utility giant is seeking to raise cash from investors as it struggles under a £14 billion debt pile, with the government said to be drawing up contingency plans for the firm’s emergency nationalisation.

The Bank of England’s forecasting model has become “unworkable” during Britain’s current inflation crisis, its chief economist has admitted.

Huw Pill conceded that the central bank’s model had produced misleading forecasts which failed to assess the ongoing impacts of the Ukraine war on prices and wages.

Speaking at the ECB forum on Wednesday, Mr Pill said the Bank used a model “based on last quarter century” when inflation expectations “were well anchored and there was little evidence of persistence”.

Adam Forrest reports.