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British tech firms face a “serious risk” over the collapse of the UK arm of Silicon Valley Bank, the chancellor has warned, but said the government was “working at pace” to limit the damage.

Speaking to Sky News’ Sophy Ridge On Sunday programme, Jeremy Hunt said the government and the Bank of England were “absolutely determined” to do everything they could to help support the critical businesses.

He said he had been in talks over the weekend with Prime Minister Rishi Sunak and BoE governor Andrew Bailey to find a solution.

But Labour has argued the government need to offer more than “warm words” to companies affected

Jeremy Hunt wants to get parents back to work – Politics latest

The central bank announced on Friday that Silicon Valley Bank UK was set to enter insolvency, following action taken by its parent company in the US.

It was first reported by Sky News City editor Mark Kleinman

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While Silicon Valley Bank (SVB) has a limited presence in the UK and does not perform functions critical to the financial system, it has been warned its collapse could have a significant impact on tech start-ups.

Mr Hunt said: “The Bank of England has made it very clear there is no systemic risk to our financial system, so people should be reassured on that basis.

“But there is a serious risk to our technology and life sciences sectors.

“It happens to look after the money of some of our most promising and exciting businesses.

“I want to reassure people, I’ve been in discussions over the weekend until late last night with the prime minister, the governor of the Bank of England, many other people.

“We are working at pace on a solution we will bring forward very soon plans to make sure people are able to meet their cashflow requirements, pay their staff.

“But obviously what we want to do is to find a longer term solution that minimises or even avoids completely losses to some of our most promising companies.”

Silicon Valley Bank's headquarters are based in California
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The insolvency announcement came after SVB was put under US government control

He added: “The prime minister and I and the governor of the Bank of England are absolutely determined to do everything we can to protect these very, very important companies.

“We will come forward with a solution that helps those very, very important companies with things like payroll and their cash flow requirements, but we also want to put in place a longer-term solution so that their futures are secure.”

Asked if that could mean stepping in with taxpayers’ money, he said he did not “want to go into what the solution is”.

But Labour’s shadow chancellor Rachel Reeves told Ridge: “I am slightly concerned about the urgency that you heard from the chancellor there because when markets open tomorrow morning, a lot of businesses in the UK are not going to be clear about how they can pay the wages of their staff and whether their deposits with Silicon Valley Bank and their financing arrangements are still in place.

“So, I would urge the government to do more than offer warm words, but come forward with specific plans.”

Tory former chancellor Lord Hammond said: “It’s not going to affect many individuals in the UK because not many people bank with Silicon Valley Bank, but it is going to affect the very important fintech sector in our economy, where there’s a huge concentration around Silicon Valley Bank UK.

“There’s a lot of small early stage businesses that are quite important to this economy, quite important to keeping our financial services sector at the cutting edge, who will be very, very nervous today.

“This is a very important dynamic sector and we don’t want to see it suffer a massive own goal here.”

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Dom Hallas of the Coalition for a Digital Economy (COADEC) said: “It is clear this could have a significant impact on the UK’s tech start-up ecosystem.”

SVBUK said it will be put into insolvency from Sunday evening.

It is a subsidiary of Silicon Valley Bank (SVB) and was the first location it opened outside the US.

The insolvency announcement came after SVB was put under US government control on Friday afternoon in the biggest failure of a US bank since the 2008 financial crisis.

The BoE said the company will stop making payments and accepting deposits.

The move will allow depositors to be paid up to £85,000 from the deposit insurance scheme.

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More than 800,000 young children seeing social media content ‘designed to hook adults’, figures show

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More than 800,000 young children seeing social media content 'designed to hook adults', figures show

Children as young as three are “being fed content and algorithms designed to hook adults” on social media, a former education minister has warned.

Lord John Nash said analysis by the Centre for Social Justice (CSJ) suggesting more than 800,000 UK children aged between three and five were already engaging with social media was “deeply alarming”.

The peer, who served as minister for the school system between 2013 and 2017, said that “children who haven’t yet learned to read [are] being fed content and algorithms designed to hook adults”, which, he said, “should concern us all”.

He called for “a major public health campaign so parents better understand the damage being done, and legislation that raises the age limit for social media to 16 whilst holding tech giants to account when they fail to keep children off their platforms”.

The CSJ reached the figure by applying the latest population data to previous research by Ofcom.

The internet and communications watchdog found that almost four in 10 parents of a three to five year-old reported that their child uses at least one social media app or site.

With roughly 2.2 million children in this age group as of 2024, the CSJ said this suggests there could be 814,000 users of social media between three and five years old, a rise of around 220,000 users from the year before.

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Lord Nash is among those who have demanded the Children’s Wellbeing and Schools Bill ban under-16s from having access to social media, something that will become law in Australia next month.

From 10 December, social media platforms will have to take reasonable steps to prevent under-16s from having a social media account, in effect blocking them from platforms such as Meta’s Instagram, TikTok and Snap’s Snapchat.

Ministers hope it will protect children from harmful content and online predators.

But one teenager who is against the idea is suing the Australian government as, he says, the measure would make the internet more dangerous for young people, many of whom would ignore the ban.

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Noah Jones, 15, co-plaintiff in a High Court case said a better plan would be “cutting off the bad things about social media”, adding, “I most likely will get around the ban. I know a lot of my mates will”.

UK campaigners have called for stronger policies to stop students using phones in schools, which already have the power to ban phones.

The CSJ wants to see smartphones banned in all schools “to break the 24-hour cycle of phone use”, and said a public health campaign is needed “to highlight the harms of social media”.

Last week Health Secretary Wes Streeting said he worries “about the mind-numbing impact of doomscrolling on social media on young minds and our neurodevelopment”.

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Sudan’s RSF says it has captured Babanusa in West Kordofan

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Sudan's RSF says it has captured Babanusa in West Kordofan

Sudan’s paramilitary Rapid Support Forces says it has captured Babanusa, a transport junction in the south of the country, just a month after the fall of Al Fashir to the same group.

The RSF said in a statement the seizure of the city in West Kordofan state came as it repelled “a surprise attack” by the Sudanese army in what it called “a clear violation of the humanitarian truce”.

The paramilitary group added it had “liberated” the city in the state, which has become the latest frontline in the war in Sudan.

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Sky’s Yousra Elbagir explains the unfolding humanitarian crisis

It comes just over a month after the Sudanese Armed Forces (SAF) withdrew from military positions in the heart of Al Fashir, the capital of North Darfur, and the symbolic site was captured by the RSF with no resistance.

The RSF claimed at the time it had taken over the city and completed its military control of the Darfur region, where the administration of former US president Joe Biden has accused the group of committing genocide.

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Sky’s Africa correspondent Yousra Elbagir on why evidence suggests there is a genocide in Sudan.

The war between the Sudanese army and the RSF – who were once allies – started in Khartoum in April 2023 but has spread across the country.

About 12 million people are believed to have been displaced and at least 40,000 killed in the civil war, according to the World Health Organization (WHO) – but aid groups say the true death toll could be far greater.

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Tom Fletcher, the UN’s under-secretary-general for humanitarian affairs, recently told Sky’s The World With Yalda Hakim the situation was “horrifying”.

“It’s utterly grim right now – it’s the epicentre of suffering in the world,” he said of Sudan.

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The United States, the United Arab Emirates, Egypt and Saudi Arabia – known as the Quad – earlier in November proposed a plan for a three-month truce followed by peace talks.

The RSF responded by saying it had accepted the plan, but soon after attacked army territory with a barrage of drone strikes.

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Maduro says Venezuela ready to defend itself as US considers potential land attack

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Maduro says Venezuela ready to defend itself as US considers potential land attack

Nicolas Maduro has said Venezuelans are ready to defend their country as the US considers a land attack.

The president held a rally in Caracas amid heightened tensions with Donald Trump’s administration, which has been targeting what it says are boats carrying drug smugglers.

Mr Trump met his national security team on Monday evening, having warned last week that land strikes would start “very soon”.

An image of an alleged drug boat being targeted by the US military. Pic: Truth Social
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An image of an alleged drug boat being targeted by the US military. Pic: Truth Social

It’s not been confirmed what was discussed at the meeting, but White House press secretary Karoline Leavitt told reporters: “There’s many options at the president’s disposal that are on the table – and I’ll let him speak on those.”

US forces have carried out at least 21 strikes on boats it claims were carrying narcotics to its shores over the last few months, and the White House has accused Mr Maduro of being involved in the drugs trade – a claim he denies.

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‘The president has a right to take them out’

‘Psychological terrorism’

Mr Maduro – widely considered a dictator by the West – said on Monday that Venezuelans are ready “to defend [the country] and lead it to the path of peace”.

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“We have lived through 22 weeks of aggression that can only be described as psychological terrorism,” he said.

Venezuela has said the boat attacks, which have killed more than 80 people, amount to murder – and that Mr Trump’s true motivation is to oust Mr Maduro and access its oil.

Concerns have been raised over the legality of the US attacks, which the Pentagon has sought to justify by designating the gangs as foreign terror organisations.

Maduro was championed by supporters as he spoke on Monday. Pics: Reuters
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Maduro was championed by supporters as he spoke on Monday. Pics: Reuters

Controversy over US strikes

Tensions remain high over America’s large deployment in the Caribbean Sea and eastern Pacific, which includes its flagship aircraft carrier and thousands of troops.

The US has released videos of boats being blown up but has not provided evidence – such as photos of drugs – to support the smuggling claims.

Controversy also surrounds the first incident, on 2 September, in which 11 people were killed – with a follow-up strike targeting the boat after the first attack left two survivors in the water.

US media reported defence secretary Pete Hegseth gave an order that everyone on board should be killed.

However, there are concerns about the legality of the second strike if the survivors posed no threat.

Mr Hegseth dismissed the reporting as “fake news” and insisted all actions in the region are compliant with US and international law.

“Every trafficker we kill is affiliated with a Designated Terrorist Organization,” he said on X.

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Is US about to go to war with Venezuela?

Mr Trump said on Sunday he would not have wanted a second strike and that Mr Hegseth had denied giving such an order.

Ms Leavitt confirmed on Monday that the boat had been hit by a second strike – but denied Mr Hegseth gave the order for the follow-up.

Instead, she said he had authorised US navy vice admiral Frank Bradley to attack, and the admiral acted “well within his authority and the law, directing the engagement to ensure the boat was destroyed and the threat to the US was eliminated”.

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Trump: Maduro call neither ‘went well or badly’

As the US weighs its next steps, Mr Trump said on Sunday he had spoken to Mr Maduro by phone and that the conversation went neither “well or badly”.

In recent days, he also stated that Venezuela’s airspace should be considered closed – with the South American nation calling it a “colonial threat” and “illegal, and unjustified aggression”.

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