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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.

Nadine Dorries
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Nadine Dorries was one of several people Mr Johnson nominated for a peerage who did not end up ennobled

Read more:
Eight people removed from Johnson’s peerages list

Labour plans to expand Lords with new peers
Adam Boulton: Sunak needs to clear the air after stench left by Johnson

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.

Lord Lebedev Pic: Parliament.tv
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Evgeny Lebedev, son of ex-KGB agent Alexander, was also put in the British legislature by Mr Johnson. Pic: Parliament.tv

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Boris Johnson ennobled his brother Jo. Pic: Parliament.tv

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.”

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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.