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A sitting mayor who was blocked by Labour from standing for a new regional role has quit the party in protest at Sir Keir Starmer’s leadership.

Jamie Driscoll, who was Labour’s North of Tyne mayor, said he had “no other choice” but to quit the party after he was barred from running as North East mayor last month.

He said he would now serve the region as an independent mayor.

In a letter to the Labour leader, Mr Driscoll accused Sir Keir of breaking “so many promises”, including plans to scrap tuition fees, watering down a £28bn commitment to tackle climate change and introducing universal free school meals.

He claimed the Labour leader told him in 2020 – when Sir Keir was running to lead the party – that “disciplining people to be united is going nowhere”.

He wrote: “You’ve U-turned on so many promises: £28 billion to tackle the climate emergency, free school meals, ending university tuition fees, reversing NHS privatisation; in fact, a list of broken promises too long to repeat in this letter.

“It is not grown-up politics to say Britain is broken, and then claim things are now so difficult we will abandon any plan to fix it. That is mental gymnastics worthy of Olympic gold.”

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Mr Driscoll added: “Worst of all, you’ve said you’re not interested in hope and change.

“Well, I am – Britain needs hope and change. Instead of London Labour HQ barring me from running, you could have used my work as a showcase of economic competence.”

The decision to bar Mr Driscoll from the longlist to be the next North East mayor – a role that was created as part of a £1.4bn devolution deal for the region – was immediately criticised by MPs on the left, including former shadow chancellor John McDonnell, who branded the news “staggering”.

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Driscoll told Sky News of his shock at Labour’s decision

Clive Lewis, the Labour MP for Norwich South, said he was “shocked by such sectarian behaviour”.

Sky News reported that Mr Driscoll’s candidacy was refused because he recently appeared at an event with the film director Ken Loach, who was expelled from the party in 2021 for claiming there had been a “purge” and “witch hunt” of Jeremy Corbyn supporters under Sir Keir Starmer’s leadership.

Asked about the controversy by Sophy Ridge on Sky News last month, Mr Driscoll refused to condemn controversial remarks made by Mr Loach about Jews, Israel and the Holocaust.

They include saying that Israel’s actions made a rise in antisemitism understandable, and replying that “all history” was up for discussion when asked if the Holocaust was unacceptable or if Israel’s founding was based on ethnic cleansing.

Mr Driscoll said this was a question for Mr Loach, and that he was “not a spokesman for Ken Loach”.

“My combined authority has adopted the… IHRA [International Holocaust Remembrance Alliance] definition of antisemitism,” he added.

“I’ve been on Jewish Labour Movement training, I work very closely with the Jewish Leadership Council… visit the synagogues in my region.”

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In a final swipe at Sir Keir, Mr Driscoll said key figures in the region had encouraged him to run as an independent, “saying they will vote for me because the North East needs an autonomous voice that’s not in hock to Westminster Party HQs”.

A Labour spokesperson said: “The Labour Party is delighted that local party members have selected Kim McGuinness as our candidate for the North East Mayoral election next year.

“With Keir Starmer as leader, the Labour Party is a changed party, relentlessly focussed on delivering for working people, and we make no apologies that Labour candidates are held to the highest standard.

“The Tories have let our region down, and as Labour mayor, Kim will be the strong voice the North East deserves.”

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Millionaire former Tory donor defects to Reform

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Millionaire former Tory donor defects to Reform

Millionaire Tory donor Malcolm Offord has defected to Reform UK, saying he would be campaigning “tirelessly” to “remove this rotten SNP government”.

Nigel Farage announced the former Conservative life peer’s defection during a rally in the Scottish town of Falkirk, where regular anti-immigration protests have taken place outside the Cladhan Hotel – which is being used to house asylum seekers.

Mr Farage, Reform UK’s leader, said he was “delighted” to welcome Greenock-born Lord Offord to Reform, describing his defection as “a brave and historic act”.

He added: “He will take Reform UK Scotland to a new level.”

During a speech, Lord Offord, who previously donated nearly £150,000 to the Tories, said he would be quitting the Conservative Party and giving up his place in the House of Lords as he prepares to campaign for a seat in Holyrood in May.

The 61-year-old said he wanted to restore Scotland to a “prosperous, happy, healthy country”.

“Scotland needs Reform and Reform is coming to Scotland,” he told the rally.

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“Today I can announce that I am resigning from the Conservative Party. Today I am joining Reform UK and today I announce my intention to stand for Reform in the Holyrood election in May next year.

“And that means that from today, for the next five months, day and night, I shall be campaigning with all of you tirelessly for two objectives.

“The first objective is to remove this rotten SNP government after 18 years, and the second is to present a positive vision for Scotland inside the UK, to restore Scotland to being a prosperous, proud, healthy and happy country.”

The latest defection comes as Mr Farage finds himself at the centre of allegations of racism dating back to his time in school.

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Claims made against Nigel Farage

Sky News reported on Saturday that a former schoolfriend of Mr Farage claimed he sang antisemitic songs to Jewish schoolmates – and had a “big issue with anyone called Patel”.

Jean-Pierre Lihou, 61, was initially friends with the Reform UK leader when he arrived at Dulwich College in the 1970s, at the time when Mr Farage is accused of saying antisemitic and other racist remarks by more than a dozen pupils.

Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.

Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.

A Reform UK spokesman accused Sky News of “scraping the barrel” and being “desperate to stop us winning the next election”.

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.

On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.

Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.

“I am even more concerned that the proposal makes ESMA responsible for both the authorisation and the supervision of CASPs, not only the supervision,” she told Cointelegraph.

The proposal still requires approval from the European Parliament and the Council, which are currently under negotiation. 

If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission, a concept first proposed by European Central Bank (ECB) President Christine Lagarde in 2023.

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EU plan to centralize licensing under ESMA creates crypto and fintech slowdown concerns

The proposal to “centralize” this oversight under a single regulatory body seeks to address the differences in national supervisory practices and uneven licensing regimes, but risks slowing down overall crypto industry development, Elisenda Fabrega, general counsel at Brickken asset tokenization platform, told Cointelegraph.

“Without adequate resources, this mandate may become unmanageable, leading to delays or overly cautious assessments that could disproportionately affect smaller or innovative firms.”

“Ultimately, the effectiveness of this reform will depend less on its legal form and more on its institutional execution,” including ESMA’s operational capacity, independence and cooperation “channels” with member states, she said.

Related: Grayscale Chainlink ETF draws $41M on debut, but not ‘blockbuster’

Global stock market value by country. Source: Visual Capitalist

The broader package aims to boost wealth creation for EU citizens by making the bloc’s capital markets more competitive with those of the US.

The US stock market is worth approximately $62 trillion, or 48% of the global equity market, while the EU stock market’s cumulative value sits around $11 trillion, representing 9% of the global share, according to data from Visual Capitalist.

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