‘A total farce’: Labour furious as govt reveals cost of Rwanda asylum policy
Rishi Sunak is facing fresh pressure over his Rwanda policy after it emerged the scheme has already cost £240m, despite never being used.
The government spent a further £100m in the 2023-24 financial year while flights remained grounded amid a series of legal setbacks – on top of the £140m previously paid out.
According to a letter from the Home Office to committee chairs, ministers expect additional costs of £50m in the coming year, which would bring the total to £290m.
Politics – latest: Rwanda vote not about leadership, says Rishi Sunak
It came just hours after Mr Sunak vowed to “finish the job” of reviving his plan to deport some asylum seekers to Kigali – despite the prospect of a bitter parliamentary battle.
On the additional £100m shelled out this year, Downing Street said it was signed off by former home secretary Suella Braverman.
But those close to the sacked cabinet minister insist it was approved by the prime minister and was part of the original plan.
Downing Street has rejected any suggestion the prime minister had misled MPs over the money for Kigali insisting that the original agreement stated the deal “involves subsequent funding”.
A spokeswoman said: “It was always set out that there would be funding attached to what is an economic and migration partnership. And this further funding was part of that.”
Home Office official Matthew Rycroft wrote to Home Affairs Committee chair Dame Diana Johnson, and Public Accounts Committee chair Dame Meg Hillier, on Thursday.
His letter said: “Ministers have agreed that I can disclose now the payments so far in the 2023-24 financial year.
“There has been one payment of £100m, paid in April this year as part of the Economic Transformation and Integration Fund mentioned above.
“The UK government has not paid any more to the government of Rwanda thus far.
“This was entirely separate to the treaty – the government of Rwanda did not ask for any payment in order for a treaty to be signed, nor was any offered.”
Will it be crisis delayed rather than averted for Rishi Sunak?
If there’s one thing to take from the parliamentary Brexit battles of 2019, it’s that if there’s a possibility to kick the can down the road and avoid a damaging Commons defeat, the government of the day will almost always take it.
So it may prove to be next week when the Safety of Rwanda (Asylum and Immigration) Bill faces its first vote by MPs.
Torpedoing legislation at the first possible opportunity is not a usual tactic for rebel backbenchers anyway.
That’s because later stages allow the chance for changes to be put forward and compromises extracted.
The newly appointed legal migration minister signalled on Friday the government is open to discussion.
This potentially pushes the crunch moment back to early next year.
But what could the government offer to get rebels on side?
Many Tory MPs would like the “full fat” option of disregarding the European Convention on Human Rights (ECHR) in totality.
Rishi Sunak has already made it clear that is not on the table as he says it would cause Rwanda to pull out of the deal.
Some have cast doubt on that with one Tory source hostile to the prime minister saying “questions need to be asked about the statement the Rwandans have given on our country’s laws. Was it requested by number 10?”.
Junking the whole of the ECHR would undoubtedly prompt a backlash from other parts of the party though and potentially risk cabinet resignations.
A hardening of the drafting or insertion of more “notwithstanding” clauses seems more feasible.
Another tactic sometimes used in situations like these is to draw up a separate statement or memorandum re-emphasising and cementing parts of the bill that could be referred to in the legislative text.
Whether that goes far enough for MPs remains to be seen and will depend on how dogmatic and philosophical backbenchers want to be.
One final point.
Even if this bill passes the Commons, it will certainly get a rough ride in the Lords – where the Tories have no majority.
Complicating matters further is the proximity of the next election, a tight timetable the Institute for Government says makes it impossible for the prime minister to overrule peers using the Parliament Act.
Crisis delayed rather than crisis averted then and for Mr Sunak, with 2024 looking no easier than 2023.
Labour described the revelation as “incredible” – with shadow home secretary Yvette Cooper saying: “How many more blank cheques will Rishi Sunak write before the Tories come clean about this scheme being a total farce?
“Britain simply can’t afford more of this costly chaos from the Conservatives.”
But defending the growing bill, legal migration minister Tom Pursglove told Sky News: “When you consider that we are unacceptably spending £8m a day in the asylum system at the moment, it is a key part of our strategy to bring those costs down so I think this is the right investment to make that will help us achieve those objectives of saving lives at sea, stopping people drowning in the Channel, as well as getting those costs under control in a way I think taxpayers across the country want to see.”
Read more:
Rishi Sunak facing political fight of his life
He also signalled the government could be open to compromises with rebel Tory MPs to push through emergency legislation, which declares that Rwanda is a safe destination for asylum seekers in a bid to overcome legal obstacles.
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‘My patience has worn thin, right?’
But the bill has divided backbenchers with Conservative hardliners arguing it does not go far enough and pressing for it to effectively override international law, while MPs on the moderate side of the party are said to be “very nervous” about the implications of the proposed law.
Despite the public splits, Mr Pursglove said: “I think there is a unity of purpose among Conservative MPs that action does need to be taken that we do need to deliver on this.
“There will be parliamentary debates, there will be opportunities for people to bring amendments, the house will consider them in the normal way and as ministers we will engage constructively with parliamentarians around any concerns that they have and handle that in the way that we would any other piece of legislation.
“We will engage with colleagues around concerns that they have, but I am pretty clear that this plan is the right plan and we are determined to see it through.
“This is the right approach to move this issue forward.”
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New Rwanda bill: What now?
He added: “I do think parliamentarians across the House should come together to back this.
“If you really want to stop the small boat crossings, this is such a critical part of the plan I think all MPs should be getting in behind it.”
Mr Sunak has insisted his new law would end the “merry-go-round of legal challenges”.
MPs will get their first chance to debate and vote on the Safety of Rwanda (Asylum and Immigration) Bill on Tuesday.
The prime minister dismissed suggestions he will make it a confidence vote, meaning that MPs would have the whip withdrawn if they defied him.
Under the government’s plan first unveiled in April 2022, people who arrive in the UK by irregular means – such as on small boats – could be sent on a one-way trip to Rwanda, where the Kigali government would decide on their refugee status.
Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.
Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.
According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.
“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.
Crypto adoption is not just about Trump
While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.
“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.
Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph
Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:
“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”
“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.
Related: Ripple acquires crypto-friendly prime broker Hidden Road for $1.25B
Banks are no longer afraid of Bitcoin regulators
With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.
“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the US regulatory authorities,” he said, adding:
“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”
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Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.
Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.
However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.
“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:
“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”
Source: Raoul Pal
“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.
Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes
China retaliates with new tariffs
Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.
In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.
China overtakes the US in global trade. Source: Econovis
China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.
Crypto markets watch trade outcome closely
As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.
Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.
Related: Crypto market bottom likely by June despite tariff fears: Finance Redefined
Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.
“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:
“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”
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A Nigerian court has reportedly delayed the country’s tax evasion case against Binance until April 30 to give time for Nigeria’s tax authority to respond to a request from the crypto exchange.
Reuters reported on April 7 that a lawyer for Binance, Chukwuka Ikwuazom, asked a court the same day to invalidate an order allowing for court documents to be served to the company via email.
Binance doesn’t have an office in Nigeria and Ikwuazom claimed the Federal Inland Revenue Service (FIRS) didn’t get court permission to serve court documents to Binance outside the country.
“On the whole the order for the substituted service as granted by the court on February 11, 2025 on Binance who is … registered under the laws of Cayman Islands and resident in Cayman Islands is improper and should be set aside,” he said.
FIRS sued Binance in February, claiming the exchange owed $2 billion in back taxes and should be made to pay $79.5 billion for damages to the local economy as its its operations allegedly destabilized the country’s currency, the naira, which Binance denies.
It also reportedly alleged that Binance is liable to pay corporate income tax in Nigeria, as it has a “significant economic presence” there, with FIRS requesting a court order for the exchange to pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts along with a nearly a 27% interest rate on the unpaid taxes.
Nigeria’s legal history with Binance
In February 2024, Nigeria arrested and detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla on tax fraud and money laundering charges. The country dropped the tax charges against both in June and the remaining charge against Gambaryan in October.
Tigran Gambaryan (right) was seen in a September video struggling to walk into a courtroom in the Nigerian capital of Abuja. Source: X
Anjarwalla managed to slip his guards and escape Nigerian custody to Kenya in March last year and is apparently still at large.
Related: Binance exec shares details about release from Nigerian detention
Gambaryan, a US citizen, returned home in October after reports suggested his health had deteriorated during his detainment with reported cases of pneumonia, malaria and a herniated spinal disc that may need surgery.
Binance stopped its naira currency deposits and withdrawals in March 2024, effectively leaving the Nigerian market.
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