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Rishi Sunak himself declared that 2024 will be an election year – at the least discreet location possible: a Christmas party for political journalists.

This year that election will be looming in the background of every issue, whether politicians intend it to or not.

The Conservatives – who were last ahead in the polls more than two years ago – are trying to defy the odds to win a historic fifth term in office in the teeth of a cost-of-living squeeze.

Labour leader Sir Keir Starmer is trying to convince voters that his party has changed after their worst result in more than 80 years.

The route to a Starmer victory would need to run through Scotland – where Labour are increasingly confident of winning seats from the SNP.

And the Liberal Democrats, decimated by their coalition with the Conservatives from 2010-2015, could play a key role in ousting them in their former heartlands.

Sunak has another challenge: the Reform party, whose support will be tested in by-elections looming in the coming weeks in heavily Brexit-supporting seats. They can chip away at the Conservative vote in key seats.

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Sunak and Starmer’s New Year’s messages

All of these dynamics help to explain why the government is celebrating its progress towards one of Sunak’s five priorities set out a year ago – to “stop the boats”.

He initially promised to “pass new laws to stop small boats, making sure that if you come to this country illegally, you are detained and swiftly removed”.

But it has been received as stopping crossings altogether, not least because Sunak keeps saying it and standing in front of the slogan which simply reads “stop the boats”.

Like “get Brexit done”, it’s an incredibly complex policy boiled down to three words – and it’s by no means clear ministers will come close to achieving it.

The number of migrants crossing the Channel is going in the right direction.

The 2023 total was 29,432, a drop of 36% on the previous year when it reached a record high of 45,477. But it’s still the second-highest number on record.

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‘When will you stop the boats?’

A new law was indeed passed – the Illegal Migration Act – but amid loud criticism from within the party, and the Rwanda policy was eventually ruled unlawful by the UK’s highest court.

Downing Street insists the fall in migrant crossings is down to government policies such as the returns agreement with Albania, which has seen the numbers of Albanians crossing the Channel plummet.

The Immigration Services Union, representing border staff, is planning for a rise in numbers this year. Many come from the world’s most unstable places – such as Afghanistan, Sudan and Syria.

How much will all of this count for in an election?

Small boats are a key dividing line with Labour, who oppose the Rwanda policy, which the prime minister is still determined to get off the ground in the coming months – via another law.

More voters tell pollsters that while they agree with Rwanda, most believe it is unworkable. Labour is the party currently more trusted on immigration.

Immigration polls well below the NHS and cost of living in terms of issues voters say are important for them, says Joe Twyman of Deltapoll.

“Immigration is by no means strong ground for the Conservatives to compete on,” he told Sky News.

“There are a lot of people out there who stopped voting Conservative because their mortgage rates went up and energy bills soared, but there are very few who will say ‘I’m back voting Conservative because of small boats’.”

The start of the year will see more announcements on cutting numbers of both irregular and legal migration – with new rules to prevent international students and health and care workers bringing family members with them to the UK.

But there are now just months to go to demonstrate success – or at least the road to it, and plenty of risks along the way.

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UK sanctions Kyrgyz banks, $9.3B crypto network tied to Russia

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UK sanctions Kyrgyz banks, .3B crypto network tied to Russia

UK sanctions Kyrgyz banks, .3B crypto network tied to Russia

The UK sanctioned Kyrgyz banks, crypto exchanges and individuals tied to Russia’s ruble-backed stablecoin.

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Gemini receives MiCA license in Malta after May derivatives approval

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Gemini receives MiCA license in Malta after May derivatives approval

Gemini receives MiCA license in Malta after May derivatives approval

The Winklevoss twins-owned Gemini exchange continues its expansion in Europe, securing a Markets in Crypto-Assets Regulation license in Malta.

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Surprise good news as government borrowing less than forecast

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Surprise good news as government borrowing less than forecast

The government borrowed the least amount of money in three years last month, official figures showed, in a surprise bout of good news for Chancellor Rachel Reeves.

Not since July 2021, in the midst of the COVID-19 pandemic, was state borrowing so low, according to data from the Office for National Statistics (ONS).

Increases in tax and national insurance receipts meant public sector net borrowing was £1.1bn in July, meaning there was a £1.1bn gap between government spending and income.

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That borrowing is less than half the figure (£2.6bn) expected by economists polled by the Reuters news agency, as self-assessed income tax was £600m higher than expected.

But borrowing was still £6bn higher in the first four months of the financial year, which started in April, than the same period in 2024.

Despite a £2.3bn drop in monthly borrowing when July 2025 is compared with July 2024, the state still spent more on the cost of that lending.

The amount of interest paid on government debt was £7.1bn, £200m more than a year earlier.

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The cost of government borrowing has increased in recent months as the interest rate investors demand on loans issued to the UK (bonds) rose.

At the start of the week, the government’s long-term borrowing cost, as measured by the interest rate on 30-year bonds (known as the gilt yield), closed at the highest level since 1998.

What does it mean for the chancellor?

The monthly borrowing data is in line with the predictions made by independent forecasters, the Office for Budget Responsibility (OBR).

It may not be as rosy a picture, however, as research firm Capital Economics point out the cumulative budget deficit, rather than a monthly figure, is £5.7bn above the OBR’s forecast.

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Are taxes going to rise?

This matters for the chancellor’s self-imposed fiscal rules, to bring down government debt and balance the budget by 2030, the firm said.

“The chancellor will probably need to raise taxes by £17bn to £27bn at the budget later this year,” Capital Economics’ UK economist Alex Kerr said.

Elevated self-assessment income tax receipts “may just reflect the timing of tax returns being recorded, and receipts in August may be weaker than expected”, he added.

Responding to the figures, Ms Reeves’s deputy, chief secretary to the Treasury, Darren Jones, said: “Far too much taxpayer money is spent on interest payments for the longstanding national debt.

“That’s why we’re driving down government borrowing over the course of the parliament – so working people don’t have to foot the bill and we can invest in better schools, hospitals, and services for working families.”

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