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Sir Keir Starmer must use the Labour conference to show the nation he “has what it takes” to be prime minister, the leader of the GMB Union has said.

Gary Smith, who took over as general secretary earlier this year, told Sky News the Labour leader was “decent” and “committed”.

But he warned the party had become “disconnected from the concerns of ordinary working class people” and must still show it can “demonstrate common purpose”.

Gary Smith was elected general secretary of the GMB union in June 2021
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Gary Smith was elected general secretary of the GMB union in June

In a warning ahead of the conference in Brighton this weekend, Mr Smith urged the party to listen to the stories of working people, adding there were still some in Labour who “look down their nose”.

“I think what he’s got to do this week is sell his vision to the country, and demonstrate that Labour can come together with a common purpose, because if we don’t have common purpose, they cannot win,” Mr Smith told Sky News.

“It is up to him to demonstrate to the nation that he has what it takes to be a prime minister and I guess and that this is going to be a massive week for him”, he added.

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Sir Keir is currently in negotiations with trade unions over his plans to scrap Labour’s one member, one vote system for electing the party leader, in favour of a return to an electoral college made up of unions and affiliate organisations, MPs and party members.

Some of the more left wing trade unions, such as the TSSA and CWU, have already said they will not back the proposals, and former shadow chancellor John McDonnell has said the changes would “rip our party apart”.

But Mr Smith signalled he recognised the need for changes.

“The current situation, I am very clear, does not work for ordinary trade union members, and is part of the dis-location between the Labour Party and ordinary trade union members,” he said.

The GMB boss said he hoped trade unions would be able to reach a joint position on rule changes by Saturday.

However he warned “very few of our members are giving much time worrying about what’s happening in the internal machinations of the Labour Party”.

“I think what we have to grasp is that there are millions of trade unionists in this country who are totally disconnected from the democracy of Labour, people who pay a political levy, and we are going to have to sort this out,” he said.

Earlier, shadow communities secretary Steve Reed told Sky News “I’m not Mystic Meg and I can’t tell you exactly what is going to happen” when asked if he thought the rule changes would pass.

Mr Smith, who is one of the most sympathetic union leaders to the Labour leadership, says he has not yet read the 11,500 word essay Sir Keir has written setting out his vision for the future of the party.

However, he rejected one of the flagship ideas set out in the pamphlet, which calls for the UK to become mostly carbon neutral by 2030.

“I think a lot of the debate around energy and the environment has been fundamentally dishonest,” he said.

“The energy market is broken, energy is very complex, and I don’t think politicians have entirely grasped that. We have a national security issue unfolding around energy, around security supplies.

“And of course, industry is going to struggle with rising energy costs. Low paid people the length and breadth of the country will really struggle as bills go through the roof, early in the new year.”

“So I think it’s good to have an aspiration, but you have to have a plan, and you have to have a plan for jobs,” he added.

Mr Smith has said he will use the party conference in Brighton, the first he will attend as general secretary, to speak about the lives of working people.

In contrast, the newly-elected leader of the Unite union, Sharon Graham, has said she will not be attending because she wants to focus on resolving disputes on behalf of her members.

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Rachel Reeves signals she will break tax pledges – and gives strongest indication she will lift two-child cap

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Rachel Reeves signals she will break tax pledges - and gives strongest indication she will lift two-child cap

Rachel Reeves has signalled she is going to break her manifesto tax pledges at the budget – and has given her strongest indication yet she will lift the two-child benefit cap.

The chancellor said the world has changed in the year since the last budget, when she reiterated Labour’s manifesto promise not to raise national insurance, VAT or income tax on “working people”.

“It would, of course, be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending,” she told BBC 5Live.

“I have been very clear that we are looking at both taxes and spending,” she added.

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The chancellor also gave her strongest indication yet she will lift the two-child benefit cap at the budget on 26 November, saying it is not right a child is “penalised because they are in a bigger family”.

Ms Reeves blamed poor productivity and growth over the last few years on the previous government “always taking the easy option to cut investment in rail and road projects, in energy projects and digital infrastructure”.

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She said she promised during the election campaign to “bring stability back to our economy”.

Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA
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Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA

‘I’ll always do what’s right for UK’

“What I can promise now is I will always do what I think is right for our country, not the easy choice, but the thing that I think is necessary,” she added.

The chancellor blamed the UK’s lack of growth under her tenure on global conflicts, trade and tariffs over the past year.

In a dig at Donald Trump, who has imposed wide-ranging tariffs on countries around the world, she said: “The tariffs. I don’t think anyone could have foreseen when this government was elected last year that we were going to see these big increases in global tariffs and barriers to trade.

“And I have to be chancellor in the world as it is not necessarily the world as I would like it to be. But I have to respond to those challenges, and that’s the responsible thing to do.”

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What tax rises and spending cuts will Reeves announce at budget?
Gordon Brown ‘confident’ of two-child benefit cap change

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‘Shameful’ that 4.5m children in poverty

‘Children should not be penalised’

The government has, so far, resisted lifting the two-child benefit cap, which means a family can only claim child benefits for the first two children.

But, it is a contentious subject within Labour, with seven of its MPs suspended two weeks after the election for voting to scrap it, while others are aware it will cost £2.8bn to do so.

Former Labour prime minister and chancellor Gordon Brown has been pushing for Ms Reeves, who says he is her hero, to lift it.

She said she saw Mr Brown at Remembrance Sunday, where they “had a good chat and we’ve emailed each other just today”, as she revealed they speak regularly.

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Labour’s child benefit cap dilemma

Ms Reeves added Mr Brown and Sir Tony Blair were big heroes of hers because they did so much to lift children out of poverty – the reason she went into politics.

Pushed on whether she would lift the cap, she said: “I don’t think that it’s right that a child is penalised because they are in a bigger family, through no fault of their own. So we will take action on child poverty.”

Mr Brown earlier told Sky News’ Mornings with Ridge and Frost he was “confident” of a two-child benefit cap change at the budget.

The latest YouGov polling found 59% of the public are in favour of keeping the cap in place, and only 26% thought it should be abolished.

Shadow chancellor Sir Mel Stride said: “Rachel Reeves has borrowed, spent and taxed like there’s no tomorrow – and she’s coming back for more because she doesn’t have a plan or the strength to stand up to Labour’s backbenchers, who are now calling the shots.

“My message is clear: if Rachel Reeves reduces government spending – including the welfare bill, she doesn’t need to raise taxes again. “

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Senate Committee unveils crypto market structure bill draft

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Senate Committee unveils crypto market structure bill draft

The US Senate Agriculture Committee has released its long-awaited discussion draft of crypto market structure laws, bringing Congress closer to passing legislation outlining how the crypto sector will be regulated.

Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker released the draft on Monday, which includes brackets around sections of the bill that lawmakers are still negotiating.

The bill aims to outline the limits of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto. Only Congress can set the agencies’ regulatory boundaries, but both have shared guidance to companies about crypto under the Trump administration’s deregulation push.

“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers,”  Boozman said.

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Booker said the discussion draft “would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”

The House passed a similar bill, called the CLARITY Act, to the Senate in July, which would give the CFTC a central role in regulating crypto.

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