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Five Labour mayors have come together to appeal to the prime minister not to scrap the northern leg of HS2, saying such a move would lead to “economic damage” across the regions.

The future of the high-speed rail line has been in doubt over recent days after reports Rishi Sunak and his Chancellor Jeremy Hunt were planning to cancel the line between Birmingham and Manchester due to soaring costs.

But in a joint statement London’s Sadiq Khan, Great Manchester’s Andy Burnham, West Yorkshire’s Tracy Brabin, South Yorkshire’s Oliver Coppard and Liverpool’s Steve Rotheram said that without delivering the project in full, the government would “leave swathes of the North with Victorian transport infrastructure that is unfit for purpose”.

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Mr Sunak did nothing to quell fears on Monday that he was preparing to either cancel or delay the line, and he has told allies he was not prepared to watch the cost continue to rise, according to The Times

The newspaper said he was concerned about a lack of cost controls and high salaries at the company overseeing the project after he was shown figures suggesting the overall price could top £100bn.

Mr Sunak is also said to be considering terminating the line in the west London suburb of Old Oak Common rather than in Euston, in the centre of the capital, to save money.

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But the announcement, which had been expected ahead of the Conservative Party conference this weekend, has yet to surface.

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Andy Burnham rages at HS2 scrapping rumours

In a statement released on Wednesday, the regional mayors said they had been “inundated” by concerns from businesses, and curtailing the line would mean HS2 would “fail to produce any meaningful economic benefit”.

“This government has said repeatedly that it is committed to levelling up in the Midlands and North,” they added.

“Failure to deliver HS2 and [Northern Powerhouse Rail] will leave swathes of the North with Victorian transport infrastructure that is unfit for purpose and cause huge economic damage in London and the South, where construction of the line has already begun.”

HS2 was first touted by Labour in 2009, but it was the coalition government that signed off on the plan, designed to connect the South, the Midlands and the North of England with state-of-the-art infrastructure.

If the Manchester leg is axed it would be the latest watering down of the project, with the eastern leg to Leeds scrapped entirely and work between Birmingham and Crewe delayed due to the impact of inflation.

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Rishi Sunak on HS2 ‘speculation’

Some estimates have put the total cost at over £100bn, while the project has been rated “unachievable” by the infrastructure watchdog.

But as they asked for a meeting with Mr Sunak, the mayors said: “The UK does not need a new line that only goes from Birmingham to Old Oak Common, which is six miles from central London. Birmingham does not want this. London does not want this. This does nothing for the North of England.

“The full Y-shaped HS2 plan was designed to deliver economic benefit right across the country not only between the North and London, but between Leeds, Sheffield, Manchester and Birmingham. All of these gains look set to be lost if media reports this week are to be believed.”

They added: “It has been suggested that around £25bn has already been spent on HS2. We agree on the importance of ensuring public money is well spent but it will be an international embarrassment and a national outrage if all this gets us is a line that leads to journeys slower than the current one between Birmingham and London and nothing more.”

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But it isn’t just Labour politicians angered by the possible downscaling of the project.

Tory former chancellor George Osborne and ex-Conservative deputy prime minister Lord Heseltine were among grandees warning that scrapping the Manchester route would be a “gross act of vandalism” which would mean “abandoning” the North and Midlands.

And Norman Baker, a former Lib Dem transport minister who signed off HS2 during the coalition government, called for an inquiry into the chaos of the project “to make sure it doesn’t happen again”.

Asked by Sky News on Wednesday whether HS2 would be given the green light to go to Manchester, Culture Secretary Lucy Frazer said it was “a decision for the chancellor”.

She added: “I’m sure the prime minister and chancellor listen to a wide variety of voices, but as you will know, it is the responsibility of government to keep all projects under consideration.

“And that is what the chancellor is doing, as he has done on all matters which are spending billions of pounds of taxpayer funding, looking at a whole range of projects to make sure they are value for money.”

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EU markets regulator says crypto may cause ‘broader stability issues’ as market grows

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EU markets regulator says crypto may cause ‘broader stability issues’ as market grows

EU markets regulator says crypto may cause ‘broader stability issues’ as market grows

The European Securities and Markets Authority (ESMA) has warned that crypto will increasingly threaten traditional financial markets’ stability as the industry grows and becomes more entwined with traditional finance players.

“We cannot rule out that future sharp drops in crypto prices could have knock-on effects on our financial system,” ESMA’s executive director Natasha Cazenave said in an April 8 statement to the Economic and Monetary Affairs Committee.

Cazenave noted, however, that crypto currently only accounts for 1% of global financial assets and is not yet significant enough to cause major “spillover effects” into traditional financial markets.

She warned that interconnections between crypto and traditional markets are rapidly growing — particularly in the more crypto-friendly US — and called for closer monitoring.

“Crypto-assets markets evolve quickly, in an often unpredictable manner, and we need to keep a close eye on these developments,” Cazenave said, adding:

“Turmoil, even in small markets, can originate or catalyze broader stability issues in our financial system.”

Cazenave’s concerns ranged from spot crypto exchange-traded funds and stablecoin use to hacks, scams and scandals — highlighting the recent $1.4 billion Bybit exploit and FTX’s collapse in November 2022.

The European Union has already implemented several measures to safeguard against crypto risks, most notably the Markets in Crypto-Assets (MiCA) regulation that was rolled out last year.

While Cazenave said MiCA marked a “breakthrough” for crypto regulation, she added that there is “no such thing as a safe crypto-asset” and that more rules may need to be implemented to mitigate future risks.

Related: EU could fine Elon Musk’s X $1B over illicit content, disinformation

Her comments come as both crypto and the stock markets have experienced double-digit falls over the last few weeks as the Trump administration continues to follow through on its tariff plans.

Europe lags US in crypto adoption

While crypto adoption has accelerated in the US, Cazenave noted that over 95% of European banks remain on the sidelines, with no involvement in crypto-related activities.

However, retail participation is on the rise, with an estimated 10% to 20% of European investors having crypto exposure, which is in line with growing global interest, Cazenave said.

Most reports measuring US crypto adoption suggest that the range of adoption is between 15% and 28% of the population.

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Shaquille O’Neal gets judge’s greenlight for $11M Astrals NFT settlement

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Shaquille O’Neal gets judge’s greenlight for M Astrals NFT settlement

Shaquille O’Neal gets judge’s greenlight for M Astrals NFT settlement

Former NBA star Shaquille O’Neal has been granted final court approval to settle a class-action lawsuit for $11 million with Astrals non-fungible token (NFT) buyers.

Florida federal court judge Federico Moreno granted approval of the settlement between O’Neal and the class group led by Daniel Harper in an April 1 order made available on April 8.

The deal created a fund of up to $11 million for eligible class members and awarded $2.9 million in attorney fees and costs. All those who purchased Astrals NFTs from May 2022 to Jan. 15 and those who purchased the project’s native GLXY tokens up until mid-January are eligible. 

“The fee sought by lead class counsel has been reviewed and approved as fair and reasonable by plaintiffs,” Moreno’s order read.

O’Neal was hit with the lawsuit in May 2023 over his founding and promotion of the Solana-based Astrals NFT project, which the suit claimed was an “offer and sale of unregistered securities.”

The class group said they bought Astrals NFTs and “suffered investment losses” due to O’Neal’s “conduct” in promoting the project.

In August, Judge Moreno recognized that the class suit had alleged that the former NBA player was a seller of the NFTs. O’Neal agreed to the settlement in November.

Shaquille O’Neal gets judge’s greenlight for $11M Astrals NFT settlement

Screenshot from court order on final settlement. Source: Courtlistener

NFT sales slump

The Astrals NFT collection consisted of 10,000 unique 3D digital collectibles created in April 2022 by the artist Damien Guimoneau in a Solana-based project that promoted a virtual world where users could socialize and play with others, including the basketball star. 

Related: NFT sales plunge 63% in Q1, but Pudgy Penguins, Doodles buck trend 

There has been no activity or sales from the collection for the past two years, according to NFT marketplace OpenSea. 

Overall, NFT sales are still in deep bear market territory, with just $27 million sold as of April 7, down from more than $2 billion per week at the end of 2021, according to CryptoSlam.

Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame

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Chancellor to hold tariff crisis talks with top City executives

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Chancellor to hold tariff crisis talks with top City executives

Rachel Reeves will seek to gauge the unfolding impact of President Donald Trump’s tariffs blitz on Wednesday when she holds talks with some of the City’s top executives.

Sky News has learnt the chancellor will hold talks with bosses from companies including Hargreaves Lansdown, Legal & General, Lloyds Banking Group and M&G amid ongoing volatility in global financial markets.

Insiders said the talks had been convened to help frame the Treasury’s financial services growth and competitiveness strategy.

However, they acknowledged that the fallout from US tariffs, while not directly affecting most City employers, would feature prominently on Wednesday’s agenda.

“The chancellor will use this meeting to show leadership, building on her statement to the House earlier today, and reiterating that the government will act decisively to take the right decisions in our national interest and protect working people,” a Treasury insider said.

Ms Reeves would stress a commitment to working with international partners to reduce barriers to trade, while pursuing the best possible bilateral deal with the US, they added.

Charlie Nunn, the Lloyds boss; Antonio Simoes of L&G; and Dan Olley, Hargreaves Lansdown’s chief, will all attend the talks.

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It will be the latest in a string of meetings the chancellor has held in recent weeks in a bid to boost economic growth.

Her budget last October sparked a furious backlash from the business community, while last month’s spring statement raised fresh fears about the possibility of further tax rises later this year.

None of the companies invited to Wednesday’s meeting would comment when approached by Sky News.

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