Boris Johnson criticised by Lords committee for appointing too many peers

Published

2 years ago

July 17, 2023

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Boris Johnson has been criticised for the swelling size of the House of Lords and an imbalance in the political make-up of the upper chamber.

A report from the Lord Speaker’s committee on the size of the house highlighted Mr Johnson as showing “no interest” in trying to reduce the number of peers.

This follows a plan established in 2017 which aimed to manage the size of the House of Lords, which has now reached 824.

It was suggested six years ago that the Lords adopt a one-in, two-out system – for every two people left, only one is appointed.

While Theresa May “responded positively” to this, and “progress” was made up to 2019 in reducing the ermined headcount, the committee singles out Mr Johnson for criticism.

“Prime Minister Boris Johnson showed no interest in the issue of the size of the House,” the report said.

“While the number of departures from the House continued to be broadly in line with our benchmarks, the number of appointments far exceeded them and they were granted predominantly to members of his own party.”

The report also noted that the House of Lords Appointments Commission rejected more than half of Mr Johnson’s initial nominees, and raised concerns about the party balance in the Lords and the potential for Labour to appoint swathes of peers should they win the next election.

Labour peers currently make up just over 20% of the House of Lords, with this number still under 30% when bishops and crossbench – those not aligned with a specific party – members are not included in calculations.

To illustrate the rate of appointments in recent years, the committee noted that despite 175 deaths or departures in the period, 168 new peers were added.

Under their one-in, two-out formula, this number should have been 88 – but instead, 88 Conservatives peers alone have been added.

As part of its recommendations, the committee wants to see a cap on the membership of the Lords, which is currently unlimited, a fixed term for service – with a suggestion of 15 years, and a fair allocation of new appointments based on recent election results.

The report also singled out the way in which hereditary peers are still entering the Lords as incompatible with the modern age.

All 90 of the allocation are men, and there are no propriety checks on new entrants.

Hereditary peers – the remnant of the landed aristocracy who automatically take seats in the legislature – hold by-elections when one of the 90 slots becomes available.

The committee called for these elections to be scrapped.

The chair of the Lord Speaker’s committee on the size of the house, Lord Burns, said: “There is widespread support in the House of Lords for our core proposals, first published in 2017.

“We must now learn from the problems we have seen over the past six years which, if they were to continue, could see the House becoming even bigger than now.

“The political leadership should focus initially on putting in place a sustainable and fair method of allocating appointments.

“This will set the basis for a cap and a sustainable reduction in the size of the House.”

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The Lord Speaker, Lord McFall of Alcluith, said: “The scrutiny and revision role of the House of Lords is crucial to effective law-making, and this task is underpinned by the expertise and experience which individual peers bring to their work.

“This report by a cross-party committee of peers provides recommendations which would reinforce the reputation and effectiveness of the Lords. I hope they will be considered seriously and carefully.”

Politics

Chancellor to hold tariff crisis talks with top City executives

Published

3 hours ago

April 8, 2025

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Chancellor to hold tariff crisis talks with top City executives

Rachel Reeves will seek to gauge the unfolding impact of President Donald Trump’s tariffs blitz on Wednesday when she holds talks with some of the City’s top executives.

Sky News has learnt the chancellor will hold talks with bosses from companies including Hargreaves Lansdown, Legal & General, Lloyds Banking Group and M&G amid ongoing volatility in global financial markets.

Insiders said the talks had been convened to help frame the Treasury’s financial services growth and competitiveness strategy.

However, they acknowledged that the fallout from US tariffs, while not directly affecting most City employers, would feature prominently on Wednesday’s agenda.

“The chancellor will use this meeting to show leadership, building on her statement to the House earlier today, and reiterating that the government will act decisively to take the right decisions in our national interest and protect working people,” a Treasury insider said.

Ms Reeves would stress a commitment to working with international partners to reduce barriers to trade, while pursuing the best possible bilateral deal with the US, they added.

Charlie Nunn, the Lloyds boss; Antonio Simoes of L&G; and Dan Olley, Hargreaves Lansdown’s chief, will all attend the talks.

It will be the latest in a string of meetings the chancellor has held in recent weeks in a bid to boost economic growth.

Her budget last October sparked a furious backlash from the business community, while last month’s spring statement raised fresh fears about the possibility of further tax rises later this year.

None of the companies invited to Wednesday’s meeting would comment when approached by Sky News.

Politics

Crypto execs expect global banking push into Bitcoin by end of 2025

Published

7 hours ago

April 8, 2025

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Crypto execs expect global banking push into Bitcoin by end of 2025

Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.

Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.

According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.

“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.

Crypto adoption is not just about Trump

While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.

“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.

Banks, Paris, Bitcoin Regulation, Policy — Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph

Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:

“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”

“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.

Banks are no longer afraid of Bitcoin regulators

With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.

“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the US regulatory authorities,” he said, adding:

“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Politics

Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Published

10 hours ago

April 8, 2025

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Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.

Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.

However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.

“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:

“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”

“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.

China retaliates with new tariffs

Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.

In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.

China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.

Crypto markets watch trade outcome closely

As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.

Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.

Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.

“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:

“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”