Conservative MPs on the right of the party have called on the government to scrap its Rwanda bill, just 24 hours before it is due to be voted on in parliament.
It comes as a number of Tory MPs revealed to Sky News’ deputy political editor Sam Coates that Number 10 is threatening to call an early election if they vote against the legislation in the Commons on Tuesday – though some were sceptical Downing Street would follow through.
The bill would declare Rwanda a safe country, and empower ministers to ignore parts of the Human Rights Act to limit any appeals against people being removed from the UK.
But the chairman of the European Research Group, Mark Francois, said the legislation had “so many holes in it” that the consensus from his wing of the party was to “pull the bill” and put forward a “revised version that works better”.
The so-called “five families” of Tory right-wing factions, representing around 100 MPs, were invited to a meeting on Monday to discuss legal advice on the legislation, led by the ERG – which became a household name in the Brexit years.
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In the summary of the ERG’s conclusions – put together by their so-called “star chamber” of legal experts – the group said: “The bill overall provides a partial and incomplete solution to the problem of legal challenges in the UK courts being used as stratagems to delay or defeat the removal of illegal migrants to Rwanda.
“The prime minister may well be right when he claims that this is the ‘toughest piece of migration legislation ever put forward by a UK government’, but we do not believe that it goes far enough to deliver the policy as intended.
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“Resolving, comprehensively, the issues raised by this analysis would require very significant amendments, some of which would potentially be outside the current title’s scope, and the final bill would look very different.”
Are there enough rebel MPs to bring down the Rwanda bill?
Just 29 Tory MPs need to vote against the bill – or 57 need to abstain – to kill it off.
We know there are around 100 MPs represented by the so-called “five families” of right-wing Tory factions, who have been the most vocal over stopping the boats.
Clearly, if all those MPs voted against or abstained on Tuesday, the bill would be toast.
But although they are often grouped together, it does not guarantee each faction will team up and come to the same conclusion.
At least two of the groups did not attend the ERG’s meeting this morning (despite being invited) to discuss the legal conclusions they had come to.
Also, even when a faction decides which way to vote, not all its signatories are guaranteed to follow suit. One member of the ERG has already publicly said he will vote for the bill, despite its flaws.
But remember, these aren’t the only groups on the Tory backbenchers, and Mr Sunak will need to keep in mind the more liberal One Nation collective too.
They also represent around 100 MPs, and if they deem the bill to have gone too far against our international human rights obligations, there is another swathe of politicians who could bring down the bill.
With around 200 MPs still debating their position with just 24 hours to go, its understandable why Mr Sunak might be nervous.
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In the ERG’s document, they listed numerous problems they had with the bill, including what they saw as a “limited disapplication” of the UK’s Human Rights Act and only “limited exclusions” of international human rights treaties.
The group did not say in their conclusions whether they planned to vote against the bill on Tuesday, or instead abstain on it to give them the chance to make amendments to the law at a later parliamentary stage.
But speaking later on Monday, Mr Francois said: “The feeling very much in the meeting is that the government would be best advised to pull the bill and to come up with a revised version that works better than this one, which has so many holes in it.
“In as much as there was a consensus, that was the consensus.”
He added: “We all want to stop the boats. There have been two legislative attempts at this already… that didn’t quite work so this is kind of three strikes and you’re out, isn’t it?
“What is really important if we are going to put a bill through parliament is to have a piece of legislation which is fit for purpose. As the bill is currently drafted, it isn’t.”
Image: Rishi Sunak’s plan to ‘stop the boats’ is under threat by his own MPs
His thoughts were echoed by the deputy chair of the ERG, and fellow Tory MP, David Jones, who added: “I don’t think the bill is easily amendable and really I think the government needs to review it and maybe consider a completely new piece of legislation.
“Because this leaves so many gaps in the legislation and so many ways that people could actually evade the legislation if they wanted to remain in this country.”
But posting on X – formerly known as Twitter – another ERG member and Tory MP, Michael Fabricant, said he would still vote in favour of the government bill, writing: “It is not perfect (no bill ever is), but I agree with its principle: to deter the slavers providing dangerous channel crossings. Amendments can then be made later in the usual way.”
Mr Francois confirmed right-wing MPs would be holding another meeting on Monday evening to decide on what action to take in the Commons.
Former immigration minister Robert Jenrick, who resigned last week over his opposition to the bill, will speak at the gathering.
New Conservatives co-chairman Danny Kruger also revealed the MPs would be having “further conversations with government over the course of the next 24 hours” – with Sky News understanding the PM will host a breakfast meeting with 20 or so of the right-wing group’s members on Tuesday morning.
At the same time, the more centrist faction of the Conservatives, known as the One Nation caucus, will also meet to discuss the bill, with reports some of their MPs think it goes too far in disavowing human rights legislation.
Meanwhile, Home Secretary James Cleverly held his own briefing for MPs on Monday afternoon to try to get them onboard.
Speaking to Sky News’ political editor Beth Rigby as he left the gathering, he said: “I’m determined to get [the bill] through. It’s important legislation and part of our plan to break the people smuggling that cost lives.”
Rwanda battle lines drawn – and it’s going to get ugly
Battle lines are now drawn on different sides of the Tory party, and the moment of conflict is fast approaching.
All sides are quite dug in. This is going to get ugly.
The European Research Group of Brexiteers has published its conclusions about Rishi Sunak’s emergency legislation.
They say it needs “very significant” changes – some of which might be outside the scope of this bill – to get their support.
This is a hard ask. Any legislation that emerges from such a negotiation would, they say, “look very different” to what was published by parliament last week
Rishi Sunak already says he went as far as he possibly could. Now this group wants him to go a lot further.
Although we do not yet know how Tory MPs will vote on the bill come Tuesday, this sets up a significant clash either this week or post-Christmas.
The ERG’s legal judgement now represents the formal view of the group, but it remains unclear how far their writ can go.
The New Conservatives – the post-2016 Tory right – the Northern Research Group and others were invited to this meeting but did not attend.
Yet it is hard to see many people in these groups not agreeing with this judgement, and at some point displaying their dissatisfaction in the division lobbies.
The clash could yet be deferred beyond Tuesday – we will find that out later. But this is very serious and it is unclear how Rishi Sunak deals with it.
Soon after the ERG’s conclusions were published, the government took the unusual move of publishing a summary of its legal advice this afternoon in light of “significant interest” and the “need to be as clear as possible for the public and parliamentarians”.
In the advice, it said completely blocking any court challenges – something right-wing Tory MPs are keen on – would be “a breach of international law and alien to the UK’s constitutional tradition of liberty and justice, where even in wartime the UK has maintained access to the courts in order that individuals can uphold their rights and freedoms”.
The document also said the government of Rwanda had been clear it would withdraw from the scheme if the UK breached its international obligations, which would “render the bill unable to work in achieving the policy intention of deterrence – as there would be no safe country for the purposes of removal”.
Publishing the advice was seen as an attempt by the government to woo MPs into supporting the bill, but the ERG’s latest statement deals that hope a massive blow.
Only 29 Tory MPs need to vote against the government – or 57 need to abstain – for the bill to be defeated when it comes to the Commons on Tuesday.
It would be the first time a government bill has fallen at the second reading since the 1980s.
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.
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.
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.
“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.
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.”
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.”
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.
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.”