MP’s firm won state grant

A TRAINING firm linked to scandal-hit London Capital & Finance was handed a state grant months after hiring Tory MP Johnny Mercer.

The Crucial Group – which teaches military veterans to work in cyber security – was given the cash in January as part of a £500,000 pay-out from the Department of Digital, Culture, Media and Sport.

Crucial hired Mercer as a nonexecutive director last September, and pays him £85,000 a year for 20 hours’ work a month.

The company, which is owned by Brighton businessman Paul Careless, has become embroiled in the collapse of LCF – which went bust earlier this year owing £237m to 11,500 savers who bought toxic bonds. Careless ran other firms, which were paid £58m for marketing the bonds. They were responsible for running call centres on behalf of LCF and advertising its products, which were described as ‘fully secured Isas’.

Crucial was given the Government handout from a DCMS fund designed to improve diversity in cyber security.

The firm claimed to have a particular focus on women, ethnic minorities and people with neurological problems. Trainees included veterans suffering from post-traumatic stress disorder.

Mercer described Crucial as ‘a good company doing good things for veterans’ employment’, and said he had nothing to do with the grant award. He said: ‘I was not involved in any lobbying or any conversations on anybody’s behalf – I did not even know that Crucial were applying for this grant, or that it was even available.’

There is no suggestion Mercer knew anything about LCF or has done anything wrong.

A DCMS spokesman said: ‘Funding from the Cyber Skills Immediate Impact Fund is allocated through a strict open and fair competition, with due diligence checks made against applications.’

DCMS sources added there was no evidence that Mercer was involved in any lobbying.

Crucial Group declined to comment.