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A parliamentary researcher who has been arrested on suspicion of spying for China has said he is “completely innocent”.

In a statement released by his lawyers, the man – who they did not name – said: “I feel forced to respond to the media accusations that I am a ‘Chinese spy’. It is wrong that I should be obliged to make any form of public comment on the misreporting that has taken place.

“However, given what has been reported, it is vital that it is known that I am completely innocent. I have spent my career to date trying to educate others about the challenge and threats presented by the Chinese Communist Party.

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“To do what has been claimed against me in extravagant news reporting would be against everything I stand for.”

On Monday afternoon, Commons Speaker Sir Lindsay Hoyle reassured MPs that the House “follows the same vetting procedures as the government” and parliamentary security “is working closely and effectively with other relevant authorities” – and keeping security arrangements under review.

Sir Lindsay said a small number of people were briefed about the arrest “on a strictly confidential basis” – and warned members against prejudicing future prosecutions by discussing the matter in the House.

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The researcher, who is in his 20s, is understood to have had links to security minister Tom Tugendhat, foreign affairs committee chairwoman Alicia Kearns and other senior Tory MPs.

Scotland Yard said he was arrested in Edinburgh on 13 March.

The Sunday Times revealed that another man, who is in his 30s, was also arrested in Oxfordshire on the same day.

Sir Lindsay said the pair were bailed until early in October.

Officers from the Metropolitan Police’s Counter Terrorism Command, which oversees espionage-related offences, are investigating.

Both men were held on suspicion of offences under section one of the Official Secrets Act 1911, which punishes offences that are said to be “prejudicial to the safety or interests of the state”.

They have been bailed until early October.

Their arrests led to Rishi Sunak confronting Chinese premier Li Qiang at the G20 summit in India on Sunday over “unacceptable” interference in democracy.

The incident has also thrown a spotlight on the government’s stance towards China and raised questions about whether it should adopt a tougher approach.

The prime minister has sought to adopt a more diplomatic stance towards Beijing than some of the more hawkish members of his cabinet and party, who want China to be officially classified as a threat.

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PM raised ‘concerns’ with China

This morning Business Secretary Kemi Badenoch echoed Mr Sunak’s approach, saying China should not be considered a “foe” but a “challenge”.

Ms Badenoch said the claims of spying were an “extremely serious concern” but we “shouldn’t be using language that makes people scared”.

Asked whether China should be described as a threat, Ms Badenoch told Sky News: “I would define it as a challenge.”

Pressed on whether China should be described as a “friend or a foe”, she replied: “We certainly should not be describing China as a foe – but we can describe it as a challenge.

“I don’t think we should be careless in terms of how we speak about other countries when these sorts of things happen.”

A denial from China is exactly what we have come to expect

China’s response to the news that two people in the UK have been arrested on suspicion of spying for Beijing is straight out of its normal playbook: straight, hard denial, with a dose of accusation thrown in.

In the words of Mao Ning, spokesperson for the Ministry of Foreign Affairs, “the so-called espionage in the UK is non-existent” and all part of a campaign of “false information” and “malicious framing of China”.

This is exactly the sort of denials we have come to expect when China finds itself accused.

Remember, for instance, the spy balloon incident? Even when the Americans had collected the balloon debris and had in their hands pretty hard evidence it was fitted with surveillance equipment, China stuck to its denials.

Admitting otherwise would contradict its claims to be a responsible global player.

The bigger question is how this affects the UK-China relationship going forward.

China really does not like these sort of public accusations that cause it to “lose-face” – a hugely important cultural thing here.

If the UK dwells on this too much, makes too many loud protestations or upgrades China’s status to “threat” as some British MPs would like, it would be entirely feasible, even likely, for China to further cool an already pretty chilly relationship.

The UK government, already facing pressure on the consistency of its China policy, would have to think seriously about how it would handle this sort of situation given China’s power, wealth and influence.

But former Lord Chancellor and Foreign Secretary Philip Hammond told Sky News that in his view, the UK should approach China “with our eyes wide open”.

“It’s not a surprise to me this morning and I hope it’s not a surprise to many people that China is spying on us,” he said.

He said “many people” were spying on the UK and that the government needed to be “robust in our response”.

But he added: “That doesn’t mean we should cut trade and investment ties, that we should simply go into a defensive crouch.”

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China denies spying against UK

The Chinese embassy in London issued a statement yesterday in which it described the incident as “completely fabricated” and “nothing but a malicious slander”.

It also urged Britain’s lawmakers to “stop anti-China political manipulation”.

Read more:
How worried should we be about Chinese ‘spying’ in parliament?
Has China’s economy run out of steam?

Labour’s shadow home secretary, Yvette Cooper, claimed security services warned about the dangers of spying “some time ago”.

She pointed to the “damning” report from the security and intelligence committee in July which said the government had “no strategy” to deal with China.

“We think there has to be a comprehensive strategy towards the risks, the challenges, and the threats from other states to our national security,” she said.

Asked if she believed China was a friend or foe, she said: “Well, the relationship is clearly complex.

“There are serious issues around the human rights abuses in China. There are serious issues around their approach and their role across the world. And we also have this trading relationship, as we’ve seen the rise of China. We have to deal with that. But in particular, we have to make sure we protect our own national security. That has to come first.”

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Sir Keir Starmer says US-UK trade talks ‘well advanced’ and rejects ‘knee-jerk’ response to Donald Trump tariffs

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Sir Keir Starmer says US-UK trade talks 'well advanced' and rejects 'knee-jerk' response to Donald Trump tariffs

Sir Keir Starmer has said US-UK trade talks are “well advanced” ahead of tariffs expected to be imposed by Donald Trump on the UK this week – but rejected a “knee-jerk” response.

Speaking to Sky News political editor Beth Rigby, the prime minister said the UK is “working hard on an economic deal” with the US and said “rapid progress” has been made on it ahead of tariffs expected to be imposed on Wednesday.

But, he admitted: “Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.

“But I have to act in the national interest and that means all options have to remain on the table.”

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Sir Keir added: “We are discussing economic deals. We’re well advanced.

“These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.”

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Keir Starmer

Downing Street said on Monday the UK is expecting to be hit by new US tariffs on Wednesday – branded “liberation day” by the US president – as a deal to exempt British goods would not be reached in time.

A 25% levy on car and car parts had already been announced but the new tariffs are expected to cover all exports to the US.

Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is “hopeful” the tariffs can be reversed soon.

But he warned: “The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.”

He added the government was taking a “calm-headed” approach in the hope a deal can be agreed but said it is only “reasonable” retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.

Read more:
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Starmer and Trump discuss US-UK ‘prosperity’ deal

Donald Trump speaks to reporters aboard Air Force One. Pic: Reuters
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Donald Trump speaks to reporters aboard Air Force One on Sunday. Pic: Reuters

Tariff announcement on Wednesday

Mr Trump has been threatening tariffs – import taxes – on countries with the biggest trade imbalances with the US.

However, over the weekend, he suggested the tariffs would hit all countries, but did not name them or reveal which industries would be targeted.

Read more: How Trump’s tariffs could affect the UK

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‘Everything on table over US tariffs’

Mr Trump will unveil his tariff plan on Wednesday afternoon at the first Rose Garden news conference of his second term, the White House press secretary said.

“Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” Karoline Leavitt said.

“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades. He’s doing this in the best interest of the American worker.”

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Trump’s tariffs: What can we expect?

Tariffs would cut UK economy by 1%

UK government forecaster the Office for Budget Responsibility (OBR) said a 20 percentage point increase in tariffs on UK goods and services would cut the size of the British economy by 1% and force tax rises this autumn.

Global markets remained flat or down on Monday in anticipation of the tariffs, with the FTSE 100 stock exchange trading about 1.3% lower on Monday, closing with a 0.9% loss.

On Wall Street, the S&P 500 rose 0.6% after a volatile day which saw it down as much as 1.7% in the morning.

However, the FTSE 100 is expected to open about 0.4% higher on Tuesday, while Asian markets also steadied, with Tokyo’s Nikkei 225 broadly unchanged after a 4% slump yesterday.

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Blockchain Association CEO will move to Solana advocacy group

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Blockchain Association CEO will move to Solana advocacy group

Blockchain Association CEO will move to Solana advocacy group

Kristin Smith, CEO of the US-based Blockchain Association, will be leaving the cryptocurrency advocacy group for the recently launched Solana Policy Institute.

In an April 1 notice, the Blockchain Association (BA) said Smith would be stepping down from her role as CEO on May 16. According to the association, the soon-to-be former CEO will become president of the Solana Policy Institute on May 19.

The association’s notice did not provide an apparent reason for the move to the Solana advocacy organization nor say who would lead the group after Smith’s departure. Cointelegraph reached out to the Blockchain Association for comment but did not receive a response at the time of publication.

Cryptocurrencies, United States, Solana, Policy

Blockchain Association CEO Kristin Smith’s April 1 announcement. Source: LinkedIn

Smith, who has worked at the BA since 2018 and was deputy chief of staff for former Montana Representative Denny Rehberg, will follow DeFi Education Fund CEO Miller Whitehouse-Levine, leaving his position to join the Solana Policy Institute as CEO. According to Whitehouse-Levine, the organization plans to educate US policymakers on Solana.

Related: Congress on track for stablecoin, market structure bills by August: Blockchain Association

With members from the crypto industry, including Coinbase, Ripple Labs, and Chainlink Labs, the BA has filed a lawsuit against the US Internal Revenue Service, challenging regulations requiring brokers to report crypto transactions. The group often criticized the US Securities and Exchange Commission under former chair Gary Gensler for its “regulation by enforcement” approach to crypto, resulting in steep legal fees for many companies.

Less than 48 hours after the Solana Policy Institute’s launch, it’s unclear what the group’s immediate goals may be for engaging with US lawmakers and advocating for the industry. The organization described itself as a non-partisan nonprofit group.

Magazine: Solana ‘will be a trillion-dollar asset’: Mert Mumtaz, X Hall of Flame

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Payouts for departing civil servants capped at £95,000 under voluntary exit scheme

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Payouts for departing civil servants capped at £95,000 under voluntary exit scheme

The most senior and long-serving civil servants could be offered a maximum of £95,000 to quit their jobs as part of a government efficiency drive.

Sky News reported last week that several government departments had started voluntary exit schemes for staff in a bid to make savings, including the Department for Environment and Rural Affairs, the Foreign Office and the Cabinet Office.

The Department for Health and Social Care and the Ministry of Housing and Local Government have yet to start schemes but it is expected they will, with the former already set to lose staff following the abolition of NHS England that was announced earlier this month.

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Rachel Reeves, the chancellor, confirmed in last week’s spring statement that the government was setting aside £150m to fund the voluntary exit schemes, which differ from voluntary redundancy in that they offer departments more flexibility around the terms offered to departing staff.

Ms Reeves said the funding would enable departments to reduce staffing numbers over the next two years, creating “significant savings” on staff employment costs.

A maximum limit for departing staff is usually set at one month per year of service capped at 21 months of pay or £95,000.

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Whitehall sources stressed the figure was “very much the maximum that could be offered” given that the average civil service salary is just over £30,000 per year.

Whitehall departments will need to bid for the money provided at the spring statement and match the £150m from their own budgets, bringing the total funding to £300m.

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Spring statement 2025 key takeaways

The Cabinet Office is understood to be targeting 400 employees in a scheme that was announced last year and will continue to run over this year.

A spokesman said each application to the scheme would be examined on a case-by-case basis to ensure “we retain critical skills and experience”.

It is up to each government department to decide how they operate their scheme.

The voluntary exit schemes form part of the government’s ambition to reduce bureaucracy and make the state more efficient amid a gloomy economic backdrop.

Ahead of the spring statement, Ms Reeves announced plans to cut civil service running costs by 15% by 2030, which ministers have said will save £2.2bn.

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The move could result in 10,000 civil service jobs being axed after numbers ballooned during the pandemic.

Ms Reeves hopes the cuts, which she said will be to “back office jobs” rather than frontline services, but civil service unions have raised concerns that government departments will inevitably lose skilled and experienced staff.

The cuts form part of a wider government agenda to streamline the civil service and the size of the British state, which Sir Keir Starmer criticised as “weaker than it has ever been”.

During the same speech, he announced that NHS England, the administrative body that runs the NHS, would also be scrapped to eliminate duplication and cut costs.

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