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Business Secretary Kemi Badenoch has said remarks allegedly made by a Tory donor about MP Diane Abbott were “racist”.
Frank Hester, who has donated £10m to the Conservatives, allegedly said Ms Abbott “should be shot”.
Mr Hester apologised for making “rude” comments but said his remarks “had nothing to do with her gender nor colour of skin”.
Ms Badenoch welcomed his apology and called for “space for forgiveness”.
On Tuesday, the Guardian reported that in 2019 Mr Hester said Ms Abbott – Britain’s longest-serving black MP – made him “want to hate all black women” and that she needed “to be shot”.
Ms Abbott, who is currently suspended from sitting as a Labour MP, said the comments were “frightening”.
Ms Badenoch becomes the most senior minister to call the alleged comments racist – going further than the official government response. Downing Street have called Mr Hester’s alleged comments “unacceptable” but without specifying why.
In a social media post, Ms Badenoch, who also serves as the equalities minister,said: “Hester’s 2019 comments, as reported, were racist.
“I welcome his apology. Abbott and I disagree on a lot. But the idea of linking criticism of her, to being a black woman is appalling.
“It’s never acceptable to conflate someone’s views with the colour of their skin.”
Earlier, health minister Maria Caulfield told the BBC she considered the comments to be racist and that she would not accept a donation from Mr Hester “if he made those comments”.
Labour party chair Anneliese Dodds said the alleged comments were “clearly, unequivocally racist and sexist”.
The BBC has not heard a recording, or been able to independently verify the alleged remarks.
Both Labour and the Liberal Democrats have called on the Conservatives to return Mr Hester’s donations.
Mr Hester is one of the Conservative’s biggest donors, having given them £5m last year and a further £5m through his company.
In November, he gifted Prime Minister Rishi Sunak the use of a helicopter for a political visit, valued at £15,000, according to parliamentary records.
Mr Hester is reported to have told a meeting at his company’s headquarters: “It’s like trying not to be racist but you see Diane Abbott on the TV, and you’re just like I hate, you just want to hate all black women because she’s there, and I don’t hate all black women at all, but I think she should be shot.”
In a statement released on Monday, Mr Hester’s company said he “accepts that he was rude about Diane Abbott in a private meeting several years ago but his criticism had nothing to do with her gender nor colour of skin”.
It added: “The Guardian is right when it quotes Frank saying he abhors racism, not least because he experienced it as the child of Irish immigrants in the 1970s.
“He rang Diane Abbott twice today to try to apologise directly for the hurt he has caused her, and is deeply sorry for his remarks.
“He wishes to make it clear that he regards racism as a poison which has no place in public life.”
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