Holding on to Uxbridge and South Ruislip on Friday morning at least gave Rishi Sunak a life jacket to cling to in the by-election wash-up – a 2-1 defeat rather than a 3-0.
Popping up in Uxbridge, the prime minister used his wafer-thin victory (winning Boris Johnson’s old seat by just 495 votes) to insist that the outcome of the next general election was “not a done deal”.
But these results won’t give the Conservatives much confidence that they are on course to avoid going under at the next general election.
Be it the Labour win in Selby and Ainsty, or the Liberal Democrat triumph in Somerton and Frome, the common thread in both these results are two opposition parties performing at levels matching by-election results in the dying days of the 1992-1997 Conservative government which came crashing down with the Tony Blair landslide.
That was an epochal election – and these results only reinforce the idea that the next one is likely to be too.
For Labour, the win in Selby is historic.
More on Conservatives
Related Topics:
It was the biggest ever Tory majority – more than 20,000 – overturned by Labour in a by-election, and the second biggest swing – 23.7 per cent – away from the Tories to Labour since the Second World War, beaten only by Tony Blair in Dudley West in 1994.
Sir Keir Starmer finds himself in the sort of territory – in the polls and in this election – that was claimed by Mr Blair ahead of this big victory.
Advertisement
He needs a swing of 12 per cent – Blair got a record 10.7 per cent swing in 1997 – to gain 124 seats and win a majority.
Selby is the Conservatives’ 249th most vulnerable seat and losing in a rural Tory stronghold like this will make Tories with majorities of 15,000 feel very unsure.
For the Lib Dems, winning Somerton and Frome is their fourth consecutive by-election win this parliament, a feat not achieved since the days of Paddy Ashdown in 1992-1997.
It has given the Lib Dems belief that they can rebuild in the West Country, having been nearly wiped out by the Tories after five years of coalition government in 2015.
Somerton was the Lib Dems’ 53rd most marginal seat in the 2019 general election, so they have plenty to go for into next year.
Please use Chrome browser for a more accessible video player
1:15
By-elections: What the results mean for UK politics
Sunak sees a way to destabilise Labour
For the Conservatives though, there is a glimmer of something in all of this.
One person in Mr Sunak’s top team told me that Uxbridge had given the prime minister hope that if he can pin Labour on issues of substance, there is an opportunity to create dividing lines between Labour and the Tories that gives Mr Sunak a chance.
“We’ll have a sharper political take next term, force Starmer out of the shadows and stop him being a grey man. In September you’ll be hearing more about wedge issues,” they said.
I’m told that Mr Sunak is not much of a “culture wars” PM, but will fight on issues where he believes he can disrupt Mr Starmer’s policies and put himself on the right side of voters.
Already the Tories are talking about Labour’s now diluted £28bn-a-year investment into green energy in order to deliver green power by 2030 as an obvious area to hit.
For Labour, the narrative would have of course been cleaner if Mr Sunak had lost all three by-elections.
But the results in some ways reinforce the patterns and political strategy we have seen since the Truss debacle and emergence of Sunak as PM – the Conservatives are miles behind in the polls, local and by-elections reinforce a likely change of power in the next general election and Labour can’t take anything for granted, with the top team borrowing Blair’s “warriors against complacency” in their approach from now to election day.
“The result might not be clean, but it is crystal clear,” says one senior Labour figure. “Selby shows how far we’ve come and the potential of what we can do.
“To win the trust of so many voters who have never voted for us in a strong Tory part of the country is remarkable.”
But it’s true too from Uxbridge that support can’t be taken for granted, and Labour can be de-stabilised when a campaign cuts through.
“Uxbridge shows that support from voters is conditional and if we don’t act in their interests they will not support us,” says the senior Labour figure. “We must put the voters first, our priorities must be the public’s.”
Image: Labour secured a historic victory in Selby and Ainsty
Sunak and Starmer will both double down
From sticking to the two-child cap on child benefit, to only making spending commitments that have been costed via other tax rises (such as ending non-dom status and charging VAT on private school fees), Labour is determined not to open up any flank on economic ill-discipline.
This, I’m told, is all about focus and convincing ‘small c’ Conservatives to come into the Labour column at the general election.
There will be no radicalism from Starmer that costs money.
Instead, he will try to signal “change” through policies that don’t cost money – reforming the planning system and devolution (although I think the Tories might target the green investment plan as an exposed flank).
The overall swing away from the Tories over these three by-elections of 21 per cent is obviously disastrous for Mr Sunak.
But he knows too his party won’t switch him out now – even those who don’t like or support him accept the Conservatives can’t change PM again – and so he will double down on his five pledges while sharpening up attack lines on his opponent.
This trio of by-elections reinforce that it is Mr Starmer with the most to lose and Mr Sunak with everything to win in the race for No 10.
We could be up to 18 months away from the short election campaign, but these leaders will be firing the starting guns on the long campaign in earnest in September.
General elections are always bloody and epochal ones are even more vicious. Strap in.
Bitcoin briefly lost all of its gains this year after the crypto markets bled over the weekend, despite the US government reopening on Thursday, which was expected to provide much-needed relief to the markets.
Bitcoin (BTC) fell to a low of $93,029 on Sunday, down 25% from its all-time high in October. It started the year at $93,507.
It has since rebounded to around $94,209, CoinGecko data shows.
Bitcoin’s price information, including the change in price since Jan. 1, 2025. Source: CoinGecko
This year was tipped to be a strong one for the crypto markets after US President Donald Trump was inaugurated on Jan. 20 and formed the most pro-crypto administration to date, which has followed through on most of his promises.
However, Trump’s war on tariffs and the US government shutdown — the latter of which ended on Thursday after a record 43 days — have contributed to multiple double-digit Bitcoin price pullbacks throughout the year.
Bitcoin whales have also slowed price rallies
Another key catalyst seen behind Bitcoin’s price slump has been OG Bitcoiners and whales selling off portions of their holdings, compressing upside even in light of positive industry developments.
However, Glassnode analysts last week said the “OG Whales Dumping” Bitcoin narrative isn’t as strong as it is made out to be, explaining that it is “normal bull-market behaviour,” particularly during the late stages of bull runs.
“This steady rise reflects increasing distribution pressure from older investor cohorts — a pattern typical of late-cycle profit-taking, not a sudden exodus of whales.”
Bitcoin isn’t alone — Ether (ETH) and Solana (SOL) are down 7.95% and 28.3% respectively from the start of 2025, while most altcoins have been hit even harder.
Four-year cycle thesis still not in effect, analyst says
Industry analysts are also speculating whether the four-year cycle thesis remains in effect, despite the crypto markets having far more institutional and regulatory backing compared to earlier market cycles.
Bitwise chief investment officer Matt Hougan is one of a few analysts who believe Bitcoin will boom in 2026 due to the “debasement trade” thesis playing out, while the broader markets will benefit from increased adoption in stablecoin, tokenization and decentralized finance.
“I think the underlying fundamentals are just so sound,” Hougan said last Wednesday.
“I just think those are too big to keep down. So I think 2026 will be a good year.”
Upbit operator Dunamu reported a surge in profitability for the third quarter of the year, posting 239 billion won ($165 million) in net income.
The figure marks an increase of more than 300% compared to the same period last year, which stood at $40 million, local news outlet Chosun Biz reported, citing regulatory filings with the Financial Supervisory Service.
The filing reportedly showed strong momentum across all key metrics. Consolidated revenue climbed to $266 million, up 35% from the previous quarter, while operating profit rose 54% to $162 million. Net income also jumped 145% quarter-over-quarter from $67 million.
The company attributed its improved performance to rising trading activity as global digital asset markets rebounded through 2024 and 2025.
Dunamu said investor confidence received a boost following regulatory developments in the United States, including the passage of the Genius Act, the Clarity Act and the Anti-CBDC Bill. These measures, the company said, contributed to renewed institutional participation and steadier market conditions.
Dunamu has faced heightened reporting requirements since 2022, when it was added to the list of corporations subject to external audit due to having more than 500 shareholders.
Notably, several major crypto firms experienced a revenue increase last quarter. Bitcoin mining company TeraWulf and Singapore-based cloud Bitcoin miner BitFuFu doubled their third-quarter revenue from the previous year.
As Cointelegraph reported, Naver Financial, the fintech arm of South Korea’s largest internet company, is preparing to acquire Dunamu. Naver reportedly plans to bring Dunamu in as a subsidiary through a share swap, with board approvals expected soon.
Upbit Korea is the largest crypto exchange in South Korea in terms of trading volume and customer base, according to CoinMarketCap.
Many Labour MPs have been left shellshocked after the chaotic political self-sabotage of the past week.
Bafflement, anger, disappointment, and sheer frustration are all on relatively open display at the circular firing squad which seems to have surrounded the prime minister.
The botched effort to flush out backroom plotters and force Wes Streeting to declare his loyalty ahead of the budget has instead led even previously loyal Starmerites to predict the PM could be forced out of office before the local elections in May.
“We have so many councillors coming up for election across the country,” one says, “and at the moment it looks like they’re going to be wiped out. That’s our base – we just can’t afford to lose them. I like Keir [Starmer] but there’s only a limited window left to turn things around. There’s a real question of urgency.”
Another criticised a “boys club” at No 10 who they claimed have “undermined” the prime minister and “forgotten they’re meant to be serving the British people.”
There’s clearly widespread muttering about what to do next – and even a degree of enviousness at the lack of a regicidal 1922 committee mechanism, as enjoyed by the Tories.
“Leadership speculation is destabilising,” one said. “But there’s really no obvious strategy. Andy Burnham isn’t even an MP. You’d need a stalking horse candidate and we don’t have one. There’s no 1922. It’s very messy.”
More on Labour
Related Topics:
Please use Chrome browser for a more accessible video player
0:54
Starmer’s faithfuls are ‘losing faith’
Others are gunning for the chancellor after months of careful pitch-rolling for manifesto-breaching tax rises in the budget were ripped up overnight.
“Her career is toast,” one told me. “Rachel has just lost all credibility. She screwed up on the manifesto. She screwed up on the last two fiscal events, costing the party huge amounts of support and leaving the economy stagnating.
“Having now walked everyone up the mountain of tax rises and made us vote to support them on the opposition day debate two days ago, she’s now worried her job is at risk and has bottled it.
“Talk to any major business or investor and they are holding off investing in the UK until it is clear what the UK’s tax policy is going to be, putting us in a situation where the chancellor is going to have to go through this all over again in six months – which just means no real economic growth for another six months.”
Please use Chrome browser for a more accessible video player
After less than 18 months in office, the government is stuck in a political morass largely of its own making.
Treasury sources have belatedly argued that the chancellor’s pre-budget change of heart on income tax is down to better-than-expected economic forecasts from the Office for Budget Responsibility.
That should be a cause of celebration. The question is whether she and the PM are now too damaged to make that case to the country – and rescue their benighted prospects.