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Prime Minister Boris Johnson must apologise to the country for his handling of the Owen Paterson sleaze row, Sir Keir Starmer has said.

The Labour leader said Mr Johnson must also confirm that Mr Paterson, a former cabinet minister, will not be nominated for a peerage.

Ahead of an emergency Commons debate on standards at Westminster, Sir Keir said Mr Johnson needed to act to clean up politics.

It comes as former Tory deputy PM Michael Heseltine told Sky News he cannot “disagree” with Sir John Major’s assessment that recent behaviour of Mr Johnson’s government could be considered “politically corrupt”.

Sir Keir has also called for action against disgraced MP Rob Roberts, who was readmitted to the Conservative Party despite breaking parliament’s sexual misconduct policy.

Although he is back in the party, the Delyn MP sits as an independent in the Commons as the Conservative whip remains suspended.

A Commons debate last Monday was granted by Speaker Lindsay Hoyle following Tory attempts to block an immediate 30-day suspension for Mr Paterson over an “egregious” breach of lobbying rules.

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Conservative MPs were ordered to back the creation of a Tory-led committee to look again at Mr Paterson’s case and the whole standards system.

But after a backlash over the plan, the government performed a U-turn and Mr Paterson subsequently quit as an MP, leaving what he called the “cruel world of politics”.

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Heseltine: ‘This country has been misled’

After one of his shadow cabinet called on the PM to consider his position, Sir Keir said: “Boris Johnson needs to attend this debate, answer for his mistakes, apologise to the country and take action to undo the damage he has done.

“The country is yet to hear a word of contrition over his attempts to create one rule for him and his friends and another for everyone else. He must now come to the House and say sorry.

“And he needs to go beyond just words. Today, the prime minister must begin to clean out the filthy Augean stable he has created.”

The reference to cleaning the Augean stable will be familiar to the classics-loving prime minister, as it was one of the labours of Hercules.

Keir Starmer PMQs
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Sir Keir Starmer is preparing for a Commons showdown with Boris Johnson on Monday

Sir Keir, who will lead Labour’s response in the Commons debate, said Mr Johnson should confirm he will not nominate Mr Paterson “or any other MPs who have been handed suspensions from parliament” for a peerage.

He also urged Mr Johnson to work together on plans to throw Mr Roberts out of the Commons – a loophole meant the Delyn MP’s six-week suspension could not trigger the recall process which leads to a by-election.

Mr Roberts voted with Tory MPs for the plan to spare Mr Paterson an immediate suspension.

Sir Keir said: “It is disgraceful that Mr Roberts has been welcomed back as both a member of parliament and the Conservative Party despite having been found to have sexually harassed a junior member of staff.

“That he was able to aid and abet the prime minister in his attempts to corrupt British politics last week should be a source of shame to the Tories.

“The prime minister was prepared to rip up the system to save one of his disgraced MPs – why will he not take action to protect others from this one?”

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PM’s constituents give their verdict

Sir Keir also demanded a “full, transparent investigation” into how Randox – one of the firms that paid Mr Paterson – came to win COVID-19 testing contracts.

He said it was “vital the public has confidence that Owen Paterson’s paid advocacy did not influence these decisions”.

The parliamentary commissioner for standards’ investigation into Mr Paterson’s activities covered from October 2016 and February 2020, before the pandemic struck.

Conservative heavyweights have also attacked Mr Johnson’s government over the lobbying row.

Asked about ex-Tory PM Sir John’s comments that the current government is “corrupt”, Mr Heseltine told Sky News: “I don’t think you can disagree with that.”

He added: “The background is extremely uncomfortable because we’re going into a very difficult period.

“We’ve got the disaster of Brexit, we’ve got the environmental conference hanging by a thread in Glasgow, we’ve got the COVID situation, and there’s no doubt at all that people’s living standards by this time next year are going to look very, very different to those they enjoy today.

“This is a bad moment for the government by any standards.”

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‘PM should consider his position’ – Labour

The Liberal Democrats, who secured the emergency debate, have called for an independent statutory public inquiry into sleaze and corruption allegations.

The inquiry, which would have the power to summon witnesses and take evidence under oath, would examine not only the Paterson row but also the awarding of coronavirus contracts, whether Mr Johnson’s holidays were properly declared, and the refurbishment of his Downing Street flat.

The party also said that any MPs being investigated by the parliamentary commissioner for standards should not be able to vote or propose amendments to motions related to disciplinary issues.

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US SEC’s Crenshaw takes aim at crypto in final weeks at the agency

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US SEC's Crenshaw takes aim at crypto in final weeks at the agency

SEC Commissioner Caroline Crenshaw, expected to leave the agency in less than a month, used one of her final public speaking engagements to address the regulator’s response to digital assets.

Speaking at a Brookings Institution event on Thursday, Crenshaw said standards at the SEC had “eroded” in the last year, with “markets [starting] to look like casinos,” and “chaos” as the agency dismissed many years-long enforcement cases, reduced civil penalties and filed fewer actions overall.

The commissioner, expected to depart in January after her term officially ended in June 2024, also criticized many crypto users and the agency’s response to the markets.

Cryptocurrencies, Politics, SEC, Policies, Enforcement
SEC Commissioner Caroline Crenshaw speaking at a Brookings Institution event on Thursday. Source: Brookings

“People invest in crypto because they see some others getting rich overnight,” said Crenshaw. “Less visible are the more common stories of people losing their shirts. One thing that consistently puzzles me about crypto is what are cryptocurrency prices based on? Many, but not all, crypto purchasers are not trading based on economic fundamentals.”

She added:

“I think it’s safe to say [crypto purchasers are] speculating, reacting to hysteria from promoters, feeding a desire to gamble, wash trading to push up prices, or, as one Nobel laureate has posited, ‘betting on the popularity of the politicians who support or stand to benefit from the success of crypto.’” 

In contrast to Crenshaw’s remarks, SEC Chair Paul Atkins, Commissioner Hester Peirce and Commissioner Mark Uyeda have all publicly expressed their support for the agency’s approach to digital assets and the Trump administration’s direction of policy.

Peirce and Atkins spoke at a Blockchain Association Policy Summit this week to discuss crypto regulation and a path forward on market structure under consideration in the Senate.

Related: Crypto industry fears ‘vehemently anti crypto’ Caroline Crenshaw SEC vote

During the Thursday event’s question-and-answer session, Crenshaw expanded on her views of crypto, stating that it was a “tiny piece of the market,” and suggested that the SEC focus on other regulatory concerns. In addition, she expressed concern that the agency was heading toward giving crypto companies an exception from policies that applied to traditional finance.

“I do worry that as the crypto rules are perhaps implemented, or perhaps we just put out more guidance […] where we say they are not securities, where we loosen the basic fundamentals of the securities laws so that they can operate in our system, but without any of the guardrails that we have in place. I do worry that that can lead to more significant market contagion,” said Crenshaw.

The final throes of bipartisan financial regulators under Trump?

The departure of Crenshaw would leave the SEC with three Republican commissioners, two of whom were nominated by US President Donald Trump. As of Thursday, Trump had not made any announcements signaling that he ever planned to nominate another Democrat to the SEC, and Crenshaw said the agency’s staff had been reduced by about 20% in the last year.