Sir Keir Starmer has called on Labour’s mayor in London to “reflect” on his decision to expand the Ultra Low Emission Zone (ULEZ) to the capital’s outer boroughs, after the impact of the policy on the Uxbridge and South Ruislip by-election.
Many had predicted Labour would overturn the 7,000 majority in Boris Johnson’s old seat in the west of the city after the former prime minister’s shock exit as an MP last month.
But throughout the campaign, it became clear Sadiq Khan’s plan for ULEZ had angered people on the doorstep.
The Tories clung on to the seat with a majority just shy of 500 votes – which was still a 6.7% swing towards Labour – and Rishi Sunak told reporters: “When there’s an actual choice on a matter of substance at stake, people vote Conservative.”
Speaking to reporters, Labour leader Sir Keir said the constituency was always “going to be tough” to win as it had never voted for his party.
But he said the ULEZ expansion was also a factor in “why we lost in Uxbridge”, adding: “We all need to reflect on that, including the mayor.”
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Mr Khan also said he was “disappointed” the party didn’t win the seat overnight.
But he insisted the decision to widen the ULEZ, due to come in next month, was “the right one”, adding: “It was a difficult decision to take. But just like nobody will accept drinking dirty water, why accept dirty air?”
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Khan: ‘ULEZ expansion difficult but right decision’
The ULEZ was first proposed by Mr Johnson during his stint as London mayor as a way to cut air pollution in the capital.
When he announced it in 2015, he said it was “an essential measure to help improve air quality in our city, protect the health of Londoners, and lengthen our lead as the greatest city on earth”.
The policy in its current form – which sees drivers having to pay a £12.50 daily fee to drive in the zone if their car does not meet emissions standards – currently covers central London and the areas up to, but not including, the North and South Circular Roads.
But Mr Khan plans to expand the zone up to the capital’s borders with Buckinghamshire, Essex, Hertfordshire, Kent and Surrey from the end of August.
Image: London’s Ultra Low Emissions Zone (ULEZ) is to be expanded in August
The mayor defended the by-election loss, saying: “I have lived in London my entire life [and] this seat has never been Labour since I’ve been alive, including in 1997 in the Tony Blair landslide and the subsequent by-election a few months later.
“But I am quite clear though, the policy to expand the Ultra Low Emission Zone is the right one.”
Mr Khan outlined the successes of the existing policy, saying there had been a toxicity reduction in central London of 50% since ULEZ began, and 20% for inner London boroughs.
He also said a third fewer children were being admitted to hospitals with asthma attacks.
“Four million Londoners are already benefiting,” the mayor added. “What about the other five million in outer London, where there is the largest number of premature deaths?
“The 10 boroughs with the largest number of premature deaths are in outer London [and] it is the poorest Londoners who are least likely to own a car that suffer the consequences.”
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Rayner blames ULEZ for Uxbridge defeat
Mr Khan said he had been “listening” to people’s concerns about the expansion, increasing the eligibility of people to be exempt – such as families on child benefit or small businesses who employ up to 50 people.
“We are going to carry on listening, making sure we monitor the situation,” he added.
“But the choice is simple. Do we kick the can down the road to clean up the air in London or do we take action?”
Aave Labs became one of the first major decentralized finance (DeFi) projects to secure authorization under Europe’s new Markets in Crypto-Assets (MiCA) regulation, allowing the company to offer regulated stablecoin ramps across the European Economic Area (EEA).
The approval enables “Push,” Aave Labs’ fiat-to-crypto service, to let users convert between euros and crypto assets, including the Aave protocol’s native stablecoin, GHO. The Central Bank of Ireland granted the authorization to Push Virtual Assets Ireland Limited, a wholly-owned subsidiary of Aave Labs.
The company selected Ireland for its European operations, signaling that the country is becoming a preferred hub for compliant onchain finance under MiCA. On June 25, the crypto exchange Kraken secured its MiCA authorization in Ireland, allowing it to expand its offerings across Europe.
The move came as global stablecoin supply surpassed $300 billion in 2025, signaling strong demand for fiat-pegged crypto assets. At the time of writing, CoinGecko data showed that the total stablecoin market cap across the crypto sector was at $312 billion.
Top stablecoins by market capitalization. Source: CoinGecko
Aave’s Push opens regulated access to GHO and other stablecoins
With its MiCA approval secured, Push will offer regulated on and off-ramps to GHO and other stablecoins integrated in Aave’s product suite.
According to Aave’s announcement, the conversion fees are set to zero, which is a competitive rate compared to the typical fee structure across legacy fintech providers and centralized exchanges (CEXs).
While the protocol introduced the product as a “zero-fee” solution, it did not specify whether this fee structure was permanent or tied to an introductory period.
Aave Labs said a compliant payment infrastructure is foundational to developers hoping to onboard mainstream users into DeFi.
By providing a predictable, audited pathway between euros and crypto assets, Push could reduce one of the biggest frictions in DeFi adoption: the dependence on CEXs for fiat-to-crypto conversions.
The ability for a DeFi-native organization to run a compliant fiat bridge represents a meaningful shift as the protocol supports tens of billions in stablecoin liquidity.
According to DefiLlama, Aave processed a volume of $542 million in the last 24 hours alone. The data aggregator also showed that the total value of assets borrowed by users from Aave’s lending pools exceeds $22.8 billion.
The acting chair of the Federal Deposit Insurance Corporation (FDIC), the regulatory body overseeing banks in the US, is reportedly considering guidance for tokenized deposit insurance and plans to launch an application process for stablecoins by year’s end.
Acting FDIC Chair Travis Hill, who has made bullish statements about tokenization in the past, told the Federal Reserve Bank of Philadelphia’s Fintech Conference on Thursday that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.
The FDIC protects depositors in the event of a bank failure and insures money in accounts at banks that are insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, as reported by Bloomberg.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the most prominent players in the space and launched a tokenized money market fund called BUIDL in 2024.
Stablecoin application regime by the end of the year
At the same time, Hill reportedly announced the agency is also working on a regime for stablecoin issuance and expects to issue a proposal for an application process by the end of 2025 as part of its duties in crafting rules under the GENIUS Act, according to Law360.
He said it’s still too early to know how many institutions will be interested, but the FDIC staff is working on the standards around capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been a high-growth area, with banks worldwide exploring this technology. The market capitalization of stablecoins is approximately $305 billion as of Friday, according to blockchain analytics platform DefiLlama.
Stablecoins have been a high-growth area this year, with a market capitalization of around $305 billion. Source: DefiLlama
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
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‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
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Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
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Wes Streeting: Faithful or traitor? Beth Rigby’s take
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.