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Labour says Rishi Sunak should be “honest” with the public by publishing documents which appear to show he had doubts about the Rwanda scheme to stop small boats from crossing the Channel.

Documents seen by Sky News suggest the prime minister was sceptical about government plans to send illegal migrants to the African country.

Mr Sunak expressed his doubts while he was chancellor in March 2022, shortly before the Rwanda scheme was first announced by Boris Johnson’s government.

The existence of the Number 10 briefing papers was widely reported on Saturday.

Now the Labour Party is urging Mr Sunak to “come clean”.

Watch Wilfred Frost’s live interview with Labour leader Sir Keir Starmer on the Sunday Morning With Trevor Phillips show on Sky News from 8.30am on Sunday.

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The papers revealed this weekend suggest the now prime minister had particular concerns about the costs of the scheme.

It has since been made public that the government has committed at least £400m to the Rwandan government, despite not a single person being removed to Rwanda.

The papers also appear to show Mr Sunak doubted the effectiveness of his now flagship policy, saying the then chancellor believed the “deterrent won’t work”.

A government source said Mr Sunak has put the Rwanda policy at the heart of his plan for government, and as chancellor, funded the scheme.

The government’s Rwanda Bill will return to the House of Commons this month.

Shadow home secretary Yvette Cooper speaking during the Labour Party Conference in Liverpool
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Shadow home secretary Yvette Cooper

Yvette Cooper, Labour’s shadow home secretary, said: “The more we hear about the government’s Rwanda scheme, the more obvious it becomes that this is an extortionate con that won’t fix the Tory chaos in our immigration system.

“The home secretary, the former immigration minister and now the prime minister clearly don’t believe the government’s plans will work.

“It’s time the Tory government was honest with the public, and publish both the papers outlining Rishi Sunak’s concerns and the full details of the cost of the scheme.

“In a few weeks’ time, the prime minister will ask his divided and sceptical backbench MPs to vote for a Rwanda scheme he clearly doesn’t believe in and which he refuses to set out the costs for.

“They should stop wasting time on this costly charade and adopt Labour’s plan to go after the criminal smuggling gangs, negotiating new security arrangements with Europe to better protect our borders and set up a new returns unit to ensure those with no right to be in the UK are swiftly removed.”

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After the reports about Mr Sunak’s doubts on Saturday, a government source said: “As chancellor, Rishi funded the Rwanda scheme and put it at the heart of his 10-point plan the month after becoming PM.

“Now he is passing the Rwanda Bill following the Supreme Court judgment to get flights off the ground.

“He is the first prime minister ever to oversee a reduction in small boat crossings, which were down by 36% last year.”

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

A growing rift has emerged in Washington, D.C., between the cryptocurrency industry and labor unions as lawmakers debate whether to ease rules allowing cryptocurrencies in 401(k) retirement accounts.

The dispute centers on proposed market structure legislation that would allow retirement accounts to gain exposure to crypto, a move labor groups say could expose workers to speculative risk. In a letter sent on Wednesday to the US Senate Banking Committee, the American Federation of Teachers argued that cryptocurrencies are too volatile for pension and retirement savings, warning that workers could face significant losses.

The letter drew immediate pushback from crypto investors and industry figures. “The American Federation of Teachers has somehow developed the most logically incoherent, least educated take one could possibly author on the matter of crypto market structure regulation,” a crypto investor said on X. 

Retirement, Pensions
The AFT letter to Congress opposes regulatory changes that would allow 401(k) retirement accounts to hold alternative assets, including cryptocurrency. Source: CNBC

In response to the letter, Castle Island Ventures partner Sean Judge said the bill would improve oversight and reduce systemic risk, while enabling pension funds to access an asset class that has delivered strong long-term returns.

Consensys attorney Bill Hughes said the AFT’s opposition to the crypto market structure bill was politically motivated, accusing the group of acting as an extension of Democratic lawmakers.

Retirement, Pensions
Funds held in US retirement accounts by type of account plan. Source: ICI

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Opposition to crypto in retirement and pension funds mounts

Proponents of allowing crypto in retirement portfolios, on the other hand, argue that it democratizes finance, while trade unions have voiced strong opposition to relaxing current regulations, claiming that crypto is too risky for traditional retirement plans.

“Unregulated, risky currencies and investments are not where we should put pensions and retirement savings. The wild, wild west is not what we need, whether it’s crypto, AI, or social media,” AFT president Randi Weingarten said on Thursday. 

The AFT represents 1.8 million teachers and educational professionals in the US and is one of the largest teachers’ unions in the country.

According to Better Markets, a nonprofit and nonpartisan advocacy organization, cryptocurrencies are too volatile for traditional retirement portfolios, and their high volatility can create time-horizon mismatches for pension investors seeking a predictable, low-volatility retirement plan.

Retirement, Pensions
Bitcoin and Ether volatility compared to other asset classes and stock indexes. Source: US Federal Reserve

In October, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) also wrote to Congress opposing provisions within the crypto market structure regulatory bill.

The AFL-CIO, the largest federation of trade unions in the US, wrote that cryptocurrencies are volatile and pose a systemic risk to pension funds and the broader financial system.

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