Long gone are the days of Leave versus Remain. But the Conservative Party and its varied factions are still able to draw battle lines between one another when MPs face a crucial vote.
The bill passed its second reading in a crunch Commons vote just before Christmas.
But it will return for its next parliamentary stages on Tuesday and Wednesday this week – and the different factions are still causing the prime minister trouble.
So who are the different groups on the Tory benches? And what do they want?
European Research Group
This gang of MPs is the most well-known of the so-called “five families” of right-wing groups within the Conservative Party.
It became a household name during Brexit years, dominating the headlines with its own demands for exiting the EU, but has kept relatively quiet since the deal was done – except for calling key elements of the Windsor Framework “practically useless”.
The Eurosceptic group is currently chaired by Mark Francois, but saw many of its members promoted to ministerial positions after Boris Johnson came to power – including Sir Jacob Rees-Mogg, Suella Braverman and Steve Baker.
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Now, the ERG is leading the fight once again over the Rwanda bill, calling for the prime minister to scrap his current plan, start again and go further in ignoring international treaties and limiting the ability for asylum seekers to take appeals to court.
Image: Sir Jacob Rees-Mogg used to chair the ERG before he was made a minister by Boris Johnson
New Conservatives
The newest kids on the block, this group is made up of 25 Tory backbenchers predominantly from so-called “Red Wall” seats that the party won from Labour in recent elections.
All of the members only entered parliament after 2016 – since the Brexit referendum took place – and say they are determined to focus the party on delivering on the 2019 manifesto, where Mr Johnson won a significant majority on his promises to “get Brexit done” and “level up” the country.
One of its first events as it sought to raise its public profile was outlining its 10-point plan for immigration, causing controversy with its call to end the temporary visa scheme for care workers and cap the number of refugees who can settle in the UK.
Now, its right-wing members have raised doubts over Mr Sunak’s Rwanda bill.
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Who are the New Conservatives?
Northern Research Group
Perhaps the precursor to the New Conservatives, this faction was also born from the 2019 election victories in the Red Wall, promising to focus on the interests of the towns and cities that make up the Tories’ “Northern Powerhouse”.
With around 55 MPs from the north of England, Scottish borders and North Wales – led by the now-former chairman of the party, Sir Jake Berry – the group has expanded its remit somewhat, speaking out against COVID lockdowns and business taxes, as well as pushing for its core goals around devolution, transport and investment.
But as the third of the five families of those on the right, its support could be crucial to seeing the Rwanda legislation become law.
The group also holds a conference every year, attracting senior members of government to speak and attempt to keep the powerful bloc onside.
Image: Sir Jake Berry served as party chairman under Liz Truss
Common Sense Group
This collective of around 50 MPs and peers says it “stands for authentic conservatism”, with many of the issues it focuses on falling squarely into the culture wars category.
From slamming the National Trust for publicising Winston Churchill’s family links to slavery, to attacking Black Lives Matter and Extinction Rebellion as “subversives fuelled by ignorance”, the group – led by veteran backbencher Sir John Hayes – calls on the government to “reflect the will of the people, rather than pandering to the peculiar preoccupations of the liberal elite and the distorted priorities of left-wing activists”.
It has published its own set of essays to highlight its concerns, with titles including, “The judicial activists threatening our democracy”, “Taking politics out of policing”, and “The case for strengthening families”.
And the group takes a strong stance when it comes to immigration, so a question mark remains over whether Mr Sunak’s bill goes far enough for this group.
Image: Sir John Hayes leads the group that focuses on culture war issues
Conservative Growth Group
The final of the “five families”, this group came to life after the short-lived premiership of Liz Truss, who was ousted from Number 10 after just 49 days following her disastrous mini-budget.
But while the party may have pushed for her undoing, her approach to tearing up the “economic orthodoxy” of the Treasury still garners the support of a number of backbenchers – especially those who enjoyed equally short-lived ministerial careers while she was in office.
There are only thought to be around 20 members in the group, including Ms Truss herself, but they are pushing for popular policies in the party, such as tax cuts and deregulation, as the best way for growing the British economy.
It is chaired by Ranil Jayawardena, who was environment secretary while Ms Truss was prime minister.
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Truss ‘tried to fatten and slaughter the pig’
One Nation caucus
In stark contrast to the previous five, this group – established back in 1975 – promotes the One Nation Conservative ideology, a more centrist approach to both the economy and social policy.
Despite dominating the party during the David Cameron years, many of the One Nation group fell out of favour during the tumultuous Brexit debate due to their support for Remain, with Mr Johnson kicking a number of them out of the party for failing to back his exit plans.
But while they may have been in the shadows in recent years, there are still over 100 members in parliament – with some former figures, such as Alex Chalk and Gillian Keegan, making it onto the frontbench – and they are starting to peek out above the parapet again.
Image: Before Brexit, One Nation Tories were an influential force in the party – especially under David Cameron and George Osborne
Recent issues being raised have included a call to focus on policies for winning back younger voters – such as rental reform and childcare.
But they are now seen as a key faction for the prime minister to keep onside to ensure the success of the Rwanda plan.
The group has offered its support to Mr Sunak so far, and pledged to back the bill.
But with its more liberal outlook – and having voiced concerns about the prospect of leaving (or break) international human rights treaties – the members have also said they will pull their backing if the prime minister bends to the will of those on the right and goes too far.
Away from the Rwanda row, there are other factions in the party who all want to have their voices heard by the leadership on their main issues of concern.
Conservative Democratic Organisation
This is another group formed after Ms Truss’s exit, but with fierce loyalty to her predecessor, Mr Johnson.
The CDO was furious with how Mr Sunak had been chosen as the new leader – without a vote of the membership – calling it “undemocratic”, and promised to “take back control” of the party with its grassroots movement.
But it is not just leadership elections it wants to influence. The organisation hopes to “steer [the Tories’] political direction back to the centre-right”, with specific calls for tax cuts and attacks on the current PM for failing to provide them.
Key figures include billionaire Conservative donor Lord Cruddas, the party’s former treasurer, and key Johnson ally and former home secretary Dame Priti Patel.
It has already held a conference, with other Johnson backers like Nadine Dorries and Sir Jacob Rees-Mogg attending to give speeches.
Image: Priti Patel is one of the members spearheading the group
China Research Group
Another hot topic within Conservative ranks is the best way to approach China, and this group was set up to amplify that debate.
It was co-founded and chaired by the now security minister Tom Tugendhat – an outspoken critic of the country, who has highlighted the dangers of its technological influence, its human rights record, and its ongoing sanctioning of UK politicians.
While its former chair now finds himself on the frontbench, the voices calling for tougher action on Beijing are growing and questioning the current administration’s desire to engage with China, rather than calling it out for being a threat.
Foreign Affairs Committee chair Alicia Kearns now leads the group.
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‘Your backbenchers pulled you back’
Net Zero Scrutiny Group/Conservative Environment Network
Climate policies have been a central bone of contention for Tory MPs in recent months – especially after the party managed to cling on to Mr Johnson’s former seat of Uxbridge and South Ruislip in a by-election by focusing on residents’ anger of the expansion of London’s Ultra Low Emission Zone (ULEZ).
The victory saw a number of the party’s green policies brought into question, with Mr Sunak pledging to only roll them out in a “proportionate and pragmatic way” and watering down a number of promises.
But the legal obligation to hit net zero by 2050 – a law brought in by the Conservatives – has long caused rows, with two groups being formed to represent both sides of the argument.
Image: Chris Skidmore (L) and Craig Mackinlay (R) chair opposing groups when it comes to net zero
The Net Zero Scrutiny Group insists it is not climate sceptic, but instead says government policies have gone too far, too fast, contributing to the cost of living crisis.
The group of 50 or so MPs and peers – led by former UKIP deputy leader Craig Mackinlay – wants green levies to be scrapped, saying they are hitting the poorest the hardest, and wants the government to ramp up fossil fuel production at home.
On the other hand, there is the Conservative Environment Network (CEN), which claims to have over 130 MPs and peers backing its mission to “champion greater environmental action in parliament”.
It says Conservative voters don’t want to see a row about whether net zero is worth it or not, but a debate on the right policies to achieve it.
A smaller faction echoing the sentiments of the CEN is led by Tory MP Chris Skidmore and is known as the Net Zero Support Group, which aims to “demonstrate and maintain Conservative support for net zero carbon emissions and policies needed to deliver this”.
A court decision in Australia could open the door to as much as $640 million in capital gains tax (CGT) refunds on Bitcoin transactions after a judge ruled that crypto should be treated as money rather than a taxable asset.
On May 19, the Australian Financial Review (AFR) reported that the decision arose within a criminal case involving federal police officer William Wheatley, who allegedly stole 81.6 Bitcoin (BTC) in 2019. At the time, the assets were worth roughly $492,000. At current market prices, the tokens are valued at more than $13 million.
In the case, Judge Michael O’Connell of Victoria ruled that Bitcoin qualifies as a form of money rather than property, likening the digital asset to Australian dollars rather than to shares, gold or foreign currency.
The interpretation could set a legal precedent, potentially placing Bitcoin transactions outside the scope of Australia’s current CGT regime.
New court ruling challenges Australian crypto tax laws
In an AFR interview, tax lawyer Adrian Cartland said the verdict “totally upends” the Australian Taxation Office’s (ATO) current position.
Since 2014, the ATO has classified crypto assets as CGT assets. This means that users must pay tax when selling or trading them. Under the ATO’s guidance, any disposal of Bitcoin, including selling it for fiat, exchanging it for another crypto or using it to purchase goods or services, constitutes a CGT event.
This framework has been the basis for taxing cryptocurrency transactions in Australia for over a decade. However, the recent ruling challenges the approach by suggesting that Bitcoin functions more like money than property. This potentially exempts it from CGT.
Cartland said it was held that Bitcoin is Australian money. “That is, it is not a CGT asset. Therefore, acquisitions and disposals of Bitcoin have no tax consequences,” the tax lawyer added.
If the ruling is upheld on the appeal, Cartland estimates that there could be potential tax refunds totalling 1 billion Australian dollars ($640 million).
However, while Cartland thinks there could be up to a billion in refunds, the ATO said there were no official figures that confirm the amount to be potentially refunded if the case changes how Bitcoin is taxed in Australia.
Revolut, a European neobank with crypto support, plans to invest more than 1 billion euro ($1.1 billion) in France and apply for a local banking license.
According to a May 19 Fortune report, Revolut representatives announced the initiative during the Choose France business summit hosted by President Emmanuel Macron in Paris. The London-based neobank also plans to set up its new European Union-serving headquarters in Paris, promising to invest 1 billion euro and hire at least 200 people within three years.
Revolut spokespeople also said that the firm is in the process of submitting an application to the French banking regulator Prudential Supervision and Resolution Authority. According to an anonymous source cited by Fortune, the regulator has been pushing the neobank to get a license to improve supervision due to its popularity in France.
Revolut currently employs about 300 people and serves five million customers in France. This makes the nation the neobank’s top European Union market.
Revolut hopes to onboard 10 million users by the end of next year and then double that number by 2030. The firm already offers loans, trading and cryptocurrency support in its mobile-first banking platform.
The neobank has seen rapid growth ever since its founding in 2015. The company recently received a $45 billion valuation and reportedly served over 55 million customers as of late May.
Revolut’s 2024 annual report release shows that the firm’s 2024 revenue was 3.1 billion British pounds ($4 billion). A recent Financial News article also puts the company’s headcount at 10,133 employees as of Dec. 31, 2024.
Revolut obtained its UK banking license in late July 2024, where 11 million of its customers are located. Now, the neobank is aggressively looking to obtain similar permits across other jurisdictions, with 10 applications underway.
Revolut received the Prepaid Payment Instruments license from India’s central bank earlier this month. This license allows the bank to offer multi-currency forex cards and cross-border remittance services in India.
EU-based Revolut customers now leverage its Lithuania operations. The firm received a banking license in Lithuania at the end of 2018, enabling it to serve customers across the European Economic Area better.
Dubai’s crypto regulator has given licensed digital asset companies until June 19 to comply with its updated activity-based Rulebooks to enhance market integrity and risk oversight.
On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had released Version 2.0 of the Rulebooks.
The regulator said it had strengthened controls around margin trading and token distribution services, harmonised compliance requirements across all licensed activities and given clearer definitions for collateral wallet arrangements.
VARA’s team will engage with licensed entities and expects the companies to comply with the updated rules after a 30-day transition period.
“In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers [VASPs], with full compliance required by 19 June 2025,” VARA wrote.
VARA enhances supervisory mechanisms
VARA highlighted that it had enhanced supervisory mechanisms across several regulated activities. This includes advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset (VA) management and investment, and VA transfer and settlement services.
A VARA spokesperson told Cointelegraph that the updates will bring consistency across all activity-based rules defining core operational terms. The spokesperson gave examples of terms like “client assets,” “qualified custodians,” and “collateral requirements” as some of the terms more consistently defined in the update.
The update also aligned risk management and disclosure obligations, where activities overlap, in areas like brokerage, custody and exchange.
“The aim was to reduce ambiguity and help VASPs navigate cross-functional compliance more easily,” VARA told Cointelegraph.
Dubai regulator tightens leverage thresholds for margin trading
As for margin trading, the VARA spokesperson said they tightened leverage thresholds, mandated clearer collateralisation standards, and enhanced the monitoring obligations for VASPs offering this feature.
Margin trading allows traders to control large positions with smaller amounts of capital. It amplifies both gains and losses. Tightening the leverage traders use helps limit the risks of widespread liquidations in a market downturn.
The crypto regulator introduced a new section on token distribution that sets out licensing prerequisites, investor protections and marketing restrictions. The spokesperson emphasized the marketing restrictions, especially for “retail-facing offers.”
“It’s about aligning with global conduct expectations and closing observed regulatory gaps,” the VARA spokesperson said.