Northern political leaders have warned the government will pass up huge economic benefits and betray promises to voters if, as expected, it cancels major rail projects including the eastern leg of HS2 and a new Manchester-Leeds line.
Boris Johnson will unveil a long-delayed integrated rail plan for the Midlands and the north of England today, billed as the largest ever investment in rail infrastructure with £96bn pledged to improve existing routes.
The plan is expected to confirm that HS2 will be curtailed – with its eastern leg extending to Leeds cancelled – and the Northern Powerhouse trans-Pennine route scrapped despite the prime minister having publicly promised to deliver both in the last two years.
Image: The eastern leg to Leeds is expected to be mothballed
In a press release that contained no details of the plan, the Department of Transport said the new plan had been drawn up “after it became clear that the full HS2 and Northern Powerhouse Rail schemes as originally proposed would not enter service until the early to mid-2040s”.
It said the new plans would deliver journey times “similar or faster” than the original HS2 and Manchester-Leeds schemes.
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The Northern Powerhouse Partnership said the cuts, which will see upgrades on the existing trans-Pennine line, will save just £4bn, and short-change commuters and businesses.
“Watering down Northern Powerhouse Rail for the sake of only 10% of the overall original budget of £39bn is unforgivably short-sighted from the Treasury,” said director Henri Murison.
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“We were promised a new line between Manchester and Leeds, which could have included a stop in Bradford, one of the UK’s most dynamic cities, where productivity is held back by woefully bad transport connections.
“Now it looks like we’re only getting an upgrade, which will do nothing to solve the capacity problem on this key stretch of the route.
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Is there going to be HS2 extension into Leeds?
“We won’t be hoodwinked into believing we’re getting £96bn for a transport revolution in the North.”
Susan Hinchcliffe, the leader of Bradford City Council, told Sky News she fears the city will be left behind without a new line and new station to better connect its 500,000 population to the region.
“I can’t believe they’ll make a decision that excludes Bradford from Northern Powerhouse Rail.
“There is such an opportunity here, we’re the biggest city in the UK not on a mainline train line and we’re also the youngest city in the UK, with 25% of the population under the age of 16.
“London to Reading takes 20 minutes, it’s the same distance as between Manchester and Bradford, which takes about an hour.
“We need that level of connectivity in the North, but it is also about the transformational impact of connecting the great cities of the North, including to each other and the impact that has on the city centre and towns where they’re located.
“New businesses coming up, better employment, people able to work in one part of the North and live in another, all that creates a much more dynamic and successful economy.
“People of the North are resigned to having a poor deal for many, many years.
“I believe we can be better, we should have better for the North, we shouldn’t be satisfied with a second class service in the north of England.”
The cuts will raise questions about the prime minister’s oft-quoted “levelling up” agenda, designed to spread wealth beyond southeast England, leaving him vulnerable to a charge of breaking a promise to new Conservative voters in the North.
In a statement, he said: “If we are to see levelling up in action now, we must rapidly transform the services that matter to people most.
“That’s why the Integrated Rail Plan will be the biggest transport investment programme in a century, delivering meaningful transport connections for more passengers across the country, more quickly – with both high-speed journeys and better local services, it will ensure no town or city is left behind.”
The shutdown of the US government entered its 38th day on Friday, with the Senate set to vote on a funding bill that could temporarily restore operations.
According to the US Senate’s calendar of business on Friday, the chamber will consider a House of Representatives continuing resolution to fund the government. It’s unclear whether the bill will cross the 60-vote threshold needed to pass in the Senate after numerous failed attempts in the previous weeks.
Amid the shutdown, Republican and Democratic lawmakers have reportedly continued discussions on the digital asset market structure bill. The legislation, passed as the CLARITY Act in the House in July and referred to as the Responsible Financial Innovation Act in the Senate, is expected to provide a comprehensive regulatory framework for cryptocurrencies in the US.
Although members of Congress have continued to receive paychecks during the shutdown — unlike many agencies, where staff have been furloughed and others are working without pay — any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown.
At the time of publication, it was unclear how much support Republicans may have gained from Democrats, who have held the line in demanding the extension of healthcare subsidies and reversing cuts from a July funding bill.
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Wyoming Senator Cynthia Lummis, one of the market structure bill’s most prominent advocates in Congress, said in August that Republicans planned to have the legislation through the Senate Banking Committee by the end of September, the Senate Agriculture Committee in October and signed into law by 2026.
Though reports suggested lawmakers on each committee were discussing terms for the bill, the timeline seemed less likely amid a government shutdown and the holidays approaching.
Japan’s financial regulator, the Financial Services Agency (FSA), endorsed a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.
In a Friday statement, the FSA announced the launch of its “Payment Innovation Project” as a response to progress in “the use of blockchain technology to enhance payments.” The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.
The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.
The participating companies are expected to ensure that users are protected and informed about the systems they use. “After the completion of the pilot project, the FSA plans to publish the results and conclusions,” the announcement reads.
The announcement follows the Monday launch of Tokyo-based fintech firm JPYC’s Japan-first yen-backed stablecoin, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.
Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.
Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.
At the same time, Japan’s securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.
The European Union is considering a partial halt to its landmark artificial intelligence laws in response to pressure from the US government and Big Tech companies.
The European Commission plans to ease part of its digital rulebook, including the AI Act that took effect last year, as part of a “simplification package” that is to be decided on Nov. 19, the Financial Times reported on Friday.
If approved, the proposed halt could allow generative AI providers currently operating in the market a one-year compliance grace period and delay enforcement of fines for violations of AI transparency rules until August 2027.
“When it comes to potentially delaying the implementation of targeted parts of the AI Act, a reflection is still ongoing,” the commission’s Thomas Regnier told Cointelegraph, adding that the EC is working on the digital omnibus to present it on Nov. 19.
EU’s AI Act entered into force in August 2024
The commission proposed the first EU AI law in April 2021, with the mission of establishing a risk-based AI classification system.
Passed by the European Parliament and the European Council in 2023, the European AI Act entered into force in August 2024, with provisions expected to be implemented gradually over the next six to 36 months.
An excerpt from the EU AI Act’s implementation timeline. Source: ArtificialIntelligenceAct.eu
According to the FT, a bulk of the provisions for high-risk AI systems, which can pose “serious risks” to health, safety or citizens’ fundamental rights, are set to come into effect in August 2026.
With the draft “simplification” proposal, companies breaching the rules on the highest-risk AI use could reportedly receive a “grace period” of one year.
The proposal is still subject to informal discussions within the commission and with EU states and could still change ahead of its adoption on Nov. 19, the report noted.
“Various options are being considered, but no formal decision has been taken at this stage,” the EC’s Regnier told Cointelegraph, adding: “The commission will always remain fully behind the AI Act and its objectives.”
“AI is an incredibly disruptive technology, the full implications of which we are still only just beginning to fully appreciate,” Mercuryo co-founder and CEO Petr Kozyakov said, adding:
“Ultimately, Europe’s competitiveness will depend on its ability to set high standards without creating barriers that may risk letting innovation take place elsewhere.”
The EU’s potential suspension of parts of the AI Act underscores Brussels’ evolving approach to digital regulation amid intensifying global competition from the US and China.