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The Labour Party has been accused of attempting to delay a high-profile trial against five of its former employees because the case could prove to be “embarrassing” ahead of the next general election.

The party is currently engaged in a protracted legal wrangle with five former employees whom it has accused of leaking a controversial report into how antisemitism complaints were handled under the leadership of Jeremy Corbyn.

It can also be revealed that to date, Labour has spent almost £1.5m on the ongoing legal action, which is currently going through the High Court.

Court documents seen by Sky News also reveal that Labour expects to spend a further £868,000, which could take the party’s own legal costs to the region of £2.4m.

It has previously been reported that the Labour Party could face a legal bill of between £3m and £4m if it loses the case and taking into account the combined costs for both sides.

Party sources have recently expressed concerns that such a costly legal case could dent the party’s election fund, with one member of the party’s ruling body, the National Executive Committee (NEC), telling The Guardian in August that costs were “spiralling out of control”.

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The source said Labour should be “questioning this monumental waste of members’ and affiliates’ money pursuing what appears to be a pointless political vendetta”.

“Candidates will be up in arms that we are gambling with the party finances needed to win their seats,” they added. “We need to have a laser focus on getting the Tories out.”

However, in September it was revealed that the party had secured a record level of funding between April and June this year, totalling almost £7.5m – just shy of the Tories £10m.

The latest figures show the party has received £11.9m in donations so far this year.

The revelations come just days before senior Labour figures and activists gather in Liverpool for the party’s annual conference and when it enjoys a near 20-point lead over the Conservatives in the polls.

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‘Jeremy Corbyn will not stand for Labour’

The court action against the five ex-employees – including Mr Corbyn’s former chief of staff Karie Murphy and his former director of communications Seumas Milne – was triggered after an internal report into the party’s handling of antisemitism complaints was leaked to the media in 2020.

The 860-page report contained a number of damaging claims, including that factional hostility towards Mr Corbyn contributed to “a litany of mistakes” that hindered the effective handling of complaints.

The investigation, which was completed in the last month of Mr Corbyn’s leadership, claimed to have found “no evidence” of antisemitism complaints being treated differently to other forms of complaint, or of current or former staff being “motivated by antisemitic intent”.

The report also contained thousands of private WhatsApp communications between former senior party officials that were often derogatory about Labour staff, members, and Corbyn-supporting MPs.

The party has accused the five former employees, which also include Georgie Robertson, Laura Murray and Harry Hayball, of leaking the confidential report to undermine the party, which they deny.

At a recent hearing in the High Court, the party requested that the trial be postponed until after the next general election, which is expected to be held in either the spring or autumn of next year and cannot be held any later than January 2025.

The five claim that the party’s wish to postpone the case until February next year at the earliest “is in fact heavily influenced by a desire to avoid, during an election period, litigation which will bring the Labour Party into the public eye in ways it might find embarrassing or uncomfortable, but which it has chosen to bring”.

Witness statements by Mr Hayball and Ms Robertson that were read out in court were critical of attempts to delay the trial, with the latter arguing that the legal proceedings had already put her life “on hold”.

“I am very anxious that the longer I am out of work, and therefore the bigger the gap in my CV, the harder it will be to attain employment, especially in a competitive field, even once my name has been cleared of the Labour Party’s serious allegations in these proceedings,” her witness statement read.

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In response, the Labour Party’s lawyers argued that the five could obtain “a major tactical advantage” if the trial date coincided with the general election.

“It would be unfair and wrong in principle to place the defendant [the Labour Party] in a position where it was required to prepare for and conduct a trial in this very complex and weighty litigation… whilst also having to perform its vital constitutional role of contesting a general election,” they said.

“It cannot effectively do both of these things at the same time.”

A Labour spokesperson said: “The party has conducted a wide-ranging and appropriately thorough investigation following the leak and is confident of the case it has presented to the court.”

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PM rejects Enoch Powell comparison after ‘island of strangers’ comment

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PM rejects Enoch Powell comparison after 'island of strangers' comment

Sir Keir Starmer has rejected the comparison to Enoch Powell after he said the UK was at risk of becoming an “island of strangers” if migration does not come down.

The prime minister’s official spokesperson said migrants have made a “massive contribution” to society but the Tories “lost control of the system” and that is the point he was making.

The remark has drawn criticism from Labour backbenchers, who have compared it to the late Conservative MP’s inflammatory 1968 “Rivers of Blood” speech.

In the speech, Mr Powell imagined a future multicultural Britain where the white population would find themselves “strangers in their own country” as a result of migration.

Among those to make the comparison was the former shadow chancellor John McDonnell, who said on X that “Talk of an “island of strangers” shockingly echoes the divisive language of Enoch Powell”.

However, the prime minister’s spokesperson said: “The PM rejects this comparison. He said that migrants have made a massive contribution to society.

“It is also right to say that between 2019 and 2024, the previous government lost control of the system. Migration needs to be controlled, fair and people that come here should integrate.”

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Enoch Powell. Pic: PA
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Enoch Powell. Pic: PA

Asked why the prime minister used such robust language, the spokesperson said he was not going to “shy away” from the issue of immigration and the British public want it to be reduced.

He added: “We have welcomed immigrants for decades, but it’s too high and must come down. Also, it’s important for our domestic skills system, which is good for our economy.”

What has the government announced?

Sir Keir made the comment at a news conference in which measures were announced to curb net migration, including banning care homes from recruiting overseas, new English language requirements for visa holders and stricter rules on gaining British citizenship.

The package is aimed at reducing the number of people coming to the UK by up to 100,000 per year, though the government has not officially set a target.

Who was Enoch Powell?

Enoch Powell was a Tory MP and the shadow defence secretary in the 1960s when a debate was raging about post-war immigration to Britain.

By the late 1960s, hundreds of thousands of Commonwealth citizens had exercised their legal right and settled in Britain, and it led to a quiet clampdown by the Labour government on immigration.

On 20 April 1968, Powell rose to his feet at a meeting of the Conservative Political Centre in Birmingham and declared Britons had “found themselves made strangers in their own country”.

Powell went on to say it had led to a shortage of hospital beds, school places, and “homes and neighbourhoods changed beyond recognition”.

He was swiftly kicked out of the shadow cabinet.

Net migration – the difference between the number of people immigrating and emigrating to a country – soared when the UK left the EU in January 2020.

It reached 903,000 in the year to June 2023 before falling to 728,000 in mid-2024. But that is still well above its pre-Brexit high of 329,000 in the year up to June 2015.

Sir Keir said parts of the UK’s economy “seem almost addicted to importing cheap labour” rather than investing in skills at home.

However, it is not clear how the government plans to boost the domestic workforce, amid a UK skills shortage and record numbers of people being out of work.

According to the ONS, there are 9.2 million people of working age in the UK who are economically inactive, including 1.8m 18-24 year olds.

The prime minister’s spokesperson said the government is “focused on upskilling British workers” and “especially helping young people in the job sector” but did not elaborate how.

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PM’s ‘tough’ migration policies explained

On care homes, he said, around 40,000 care workers came over on visas for jobs that did not exist, and companies can recruit from that pool.

Earlier, a number of Labour MPs came to the prime minister’s defence. Rother Valley MP Jake Richards said on X that Sir Keir is “absolutely right to warn of the risk of becoming an ‘island of strangers’.

“Millions of people across the country have similar concerns. This theme must be central to missions across immigration, employment, work and tackling neighbourhood deprivation,” he said.

Shadow justice secretary Robert Jenrick went further, telling Sky News he believes the UK “already is an island of strangers”, naming several areas “where we are a very divided and segregated society”.

However former Labour home secretary Lord David Blunkett criticised the rhetoric, saying in a speech at a University of Law graduation ceremony: “I never felt I lived in, or had a part to play in, a country of strangers.

“I thought welcoming people from across the world was a tribute to our society, where people want to make their homes, to build a life and their economy and to contribute to our society.

“I think we need to be kind to each other, but we need a much kinder national world as well.”

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Who PM was really trying to echo with ‘island of strangers’ speech

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Who PM was really trying to echo with 'island of strangers' speech

Sir Keir Starmer is getting used to falling out with some of his MPs over policy decisions – be it on the winter fuel allowance, his approach to the Israel-Hamas war in Gaza or welfare cuts.

But on Tuesday the prime minister found himself embroiled in a row with MPs over something entirely different – his language over immigration.

The prime minister’s argument that Britain “risked becoming an island of strangers” if immigration levels are not cut has sparked a backlash from some of his MPs, and the London mayor Sadiq Khan is alarmed that his own leader is using language similar to that of Enoch Powell.

Politics latest: Senior Labour figures distance themselves from PM’s speech

In his infamous 1968 Rivers Of Blood speech, Powell warned of a future where white people “found themselves made strangers in their own country”.

It was a speech that cost him his shadow cabinet job and made Powell one of the most divisive and controversial politicians in Britain. It is also a speech that the prime minister’s team is now frantically trying to distance itself against, with one insider telling me on Tuesday the PM’s team hadn’t realised the similarity and hadn’t intended the comparison.

The politician the prime minister was trying to channel was about as far away from Powell as you could get in the 1960s, when the debate of immigration and race relations raged. Sir Keir had wanted to echo former Labour home secretary Roy Jenkins who had always argued that immigration was good for Britain, but needed to be done at a speed the country could absorb.

Take this from Jenkins in the House of Commons in 1966: “Let there be no suggestion that immigration, in reasonable numbers, is a cross that we have to bear, and no pretence that if only those who have come could find jobs back at home our problems would be at an end.

“But it does not follow that we can absorb them without limit. We have to strike a balance. That is what we are trying to do and I feel that we have been reasonably successful in recent months. We cannot lay down absolute numerical quantities, but I think that we have struck a reasonable balance and also that in the past year we have made substantial progress towards producing a healthier atmosphere, in terms of integration, on both sides – amongst both the indigenous and the immigrant community.”

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PM’s ‘tough’ migration policies explained

One person familiar with No 10’s approach told me: “We want a more cohesive society, we are not trying to pick fights.

“But the last Conservative government let in 2.3 million immigrants [in the three years to June 2024] and during that time built about 600,000 homes. That creates competition between people and that is typically at the lower end of the market. Just issuing visas and creating a sense of an unfair system is not a way to build cohesiveness.”

If you look at polling from YouGov, it seems the prime minister is more in step with public mood than those in his party criticising him, with 41% of all voters polled on Tuesday about his “island of strangers” remarks agreeing with the sentiment and having no issue with the language.

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‘We need to reduce immigration’

But it is true too that Labour’s approach lands particularly well with Reform voters, with 61% of them supportive of the PM’s words.

Beyond the battle of language, there will be battles ahead too over whether the prime minister’s policies will help or hinder the economy.

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There has long been an assumption that higher net migration is positive of the economy and public finances, but there is growing concern in Number 10 that the benefits are being overstated, as it fails to take into account the additional resources needed for public services and the effect of lowering wages, which affects productivity growth – none of which is factored into the economic forecasts of the Office of Budget Responsibility.

There will be those in business that don’t like the cuts to visas. There will be those in government that will worry about the economic impact of cuts to visas – although the chancellor was on the front row for the prime minister’s speech on Monday. There will be those on the Labour left that will be uncomfortable about it.

I suspect the prime minister will be uncomfortable about the row over his language that has seen him attacked on both sides, as the left accuse him of trying to ape the far right and his opponents accuse him of being a “chameleon” for making the opposite argument on immigration when he was running for the Labour leadership in 2020.

But where his team think they are right is on the policy, and early polling suggests that voters from across the political divide broadly agree.

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SEC hacker counters prosecutors with 366-day sentencing recommendation

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SEC hacker counters prosecutors with 366-day sentencing recommendation

SEC hacker counters prosecutors with 366-day sentencing recommendation

Defense lawyers have asked a judge to sentence the person responsible for helping post a fake message announcing regulatory approval of Bitcoin exchange-traded funds to roughly a year in prison, countering prosecutors’ request for a two-year sentence.

In a May 13 filing in the US District Court for the District of Columbia, Eric Council Jr.’s legal team asked that he be sentenced to no more than one year and one day in prison following his guilty plea.

Council was part of a group that took control of the US Securities and Exchange Commission’s (SEC’s) X account in 2024 through a SIM swap attack, posting a message that suggested the regulator had approved spot Bitcoin (BTC) exchange-traded fund listings for the first time.

“A sentence of twelve months and one day serves the ends of justice,” said the May 13 filing. “It sufficiently punishes the defendant for his role in this case. It also promotes respect for the law and deters future criminal conduct.”

Washington, SEC, Hackers, Court, Crimes, SIM Swap
Eric Council Jr.’s sentencing recommendation, filed on May 13. Source: PACER

Council initially pleaded not guilty to the charges, but changed his plea to guilty in February on one count of conspiracy to commit aggravated identity theft and access device fraud. The judge overseeing the case, Amy Berman Jackson, also ordered prosecutors to “identify the felony and point to where that information can be found in the record” by May 13.

Prison sentence between 1 and 2 years?

The SEC hacker is scheduled to be sentenced on May 16. Prosecutors asked the judge to impose a two-year sentence on Council, saying he “profited through a sophisticated fraud scheme.” Court filings showed he earned roughly $50,000 through similar SIM swap attacks.

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Though Council’s case was likely winding down with his upcoming sentencing hearing, the DC court district could soon be under new leadership, potentially affecting the prosecution of crypto-related cases. On May 8, US President Donald Trump announced that Fox News host Jeanine Pirro would become the interim US attorney for the District of Columbia.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

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