This week’s two by-elections had something for everyone – except Rishi Sunak’s Conservatives.
Sir Keir Starmer’s Labour Party has now broken into the record books with six by-election gains from the Conservatives, beating New Labour’s performance in the run-up to the 1997 Election.
Reform UK got more than 10% of the votes in both constituencies.
The Liberal Democratslost two deposits, with less than 5% of votes cast each time. But even they have something to celebrate, according to one polling analyst.
Peter Kellner argues that their four by-election victories over the Tories since 2019 show that they are much better at concentrating their vote than they used to be – when they regularly clocked up 10% plus support across the country with nothing to show for it.
Reform could be falling into a similar trap with significant minority support spread nationwide, enough to damage the Conservatives without a sniff of winning a seat.
Image: Damien Egan won the Kingswood by-election for Labour.
Pic: Reuters
Image: Labour’s Gen Kitchen celebrates after being declared winner in the Wellingborough by-election. Pic: PA
No wonder Nigel Farage is talking about “uniting the centre-right vote” of Conservatives and Reform, without committing himself personally to fight in the approaching general election.
Jacob Rees-Mogg has taken up the call for the two right-wing groupings to come together.
Conservative MP Dame Andrea Jenkyns has leapt on the by-election defeats in Kingswood and Wellingborough to renew her call for Sunak to be replaced.
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The prime minister must be wondering why his MPs keep inflicting damage on their party through their own behaviour.
All six of Labour’s by-election gains were precipitated by voluntary or forced resignations by Conservative MPs.
Image: Prime Minister Rishi Sunak reacts to last week’s by-election results
The tables will be turned in the next by-election in just 10 days’ time, when Labour is defending the constituency of Rochdale in Lancashire and the party is certain to be the victim of a technical knock-out because it no longer has a candidate.
Starmer’s discomfort in Rochdale and the continued agony of political death by many by-election cuts explain why there is growing speculation that the prime minister may call the general election sooner rather than later in the year, as he has suggested.
Rochdale is an unholy mess for Labour, which exposes one of the most painful divisions in the party.
Labour has held the seat since 2005. Tony Lloyd, who died last month, held it in 2019 with more than half the votes cast.
In its haste to make the best of a sure thing, Labour rushed to hold the vote to find a replacement MP.
Azhar Ali, a local council big wig, was chosen quickly as the Labour candidate. Too quickly, it turns out.
Image: Labour’s former candidate for Rochdale, Azhar Ali. Pic: PA
The Mail on Sunday and then The Daily Mail exposed comments about the Israel-Gaza conflict which he had made at Labour gatherings, in clear violation of party policy.
Ali had embraced conspiracy theories that Israel allowed the 7 October attacks to happen and made accusations about Jewish influence in the media.
He later issued an “unreserved” apology, saying the comments were “deeply offensive, ignorant, and false”.
After an agonising weekend when Labour leaders tried to keep Ali as their official candidate, he was cut loose along with the candidate in neighbouring Hyndburn for similar comments.
It is easy to see why Starmer was reluctant to act. Nominations for the Rochdale by-election had closed.
Labour was stuck with Ali on the ballot paper as their candidate, come what may. It was too late to select a substitute.
Labour must sit it out for the remainder of the campaign, as Ali presses on as an independent. If he wins, he will not receive the Labour whip.
This will automatically exclude him from being the Labour candidate at the approaching general election.
The party leadership could then impose Paul Waugh as the Labour candidate.
In a move which surprised many, Waugh gave up a career as a top political journalist to stand for selection in this by-election – unsuccessfully as it turned out.
This awkward outcome is probably the best that Labour can hope for.
Two controversial ex-Labour MPs are also standing in the by-election.
Simon Danczuk won Rochdale for Labour in 2010 and then 2015. But he was suspended from the party shortly afterwards for sexting a 17-year-old girl. This time, Danczuk is standing for Reform UK.
The candidacy of George Galloway is of much greater concern.
Image: George Galloway. File pic: PA
Since his first election in 1987, Galloway has been an MP in four constituencies: Glasgow Hillhead/Kelvin for Labour, and Bethnal Green & Bow, and Bradford West, for the Respect Party.
Galloway is pugnacious and articulate, and he specialises in fighting highly charged by-elections.
He is highly litigious and willing to take on his critics. He takes a close interest in the Middle East and is pro-Palestinian.
There have been allegations of antisemitism against him – claims he has strongly denied and even once labelled “outrageous”.
Roughly a third of the population in Rochdale has a Muslim background. As Ali’s comments showed, the Israel-Gaza conflict has already inflamed passions.
Opinion polls show that a clear majority of the British public does not take sides in the current conflict.
Of the remainder, around 20% each sympathise with Israel and the Palestinians. But the balance among Labour activists favours the Palestinians.
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0:40
Starmer: ‘People want change’
Rooting out the antisemitism which characterised Labour during Jeremy Corbyn’s far-left leadership is one of Starmer’s signal achievements.
Rough justice has meant that figures such as Corbyn, Diane Abbott and now Ali have been kicked out of the party.
But tensions have mounted as Israel’s high-casualty counteroffensive continues.
In the past, Labour has benefitted from strong support in British Pakistani and Bangladeshi communities. In a handful of constituencies, this has been decisive.
Starmer is not pleasing many in his party by lining its Middle East policy up close to the government’s own position.
The Conservatives certainly are not going to give him any credit for backing them up.
Even without the divisive return of Galloway, Conservatives are already saying that the developments in Rochdale reveal that it is the same old Labour Party underneath, for all the changes supposedly wrought by Starmer.
Rochdale means chronic by-election pain for Starmer. There is no end to agony in sight for Sunakeither.
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3:17
How Labour’s latest row unfolded
There is another by-election in the offing in Lancashire in the marginal constituency of Blackpool South
The Commons Standards Committee has recommended a potentially by-election-triggering 35-day suspension for the Conservative MP Scott Benton over lobbying and corruption allegations.
Voters do not like by-elections in grubby circumstances. They are inclined to punish the incumbent, but the reputation of all politics takes a hit.
The excuses Sunak gave this weekend for the Tory defeats in Kingswood and Wellingborough do not stand up.
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With the general election imminent, these were not “midterm by-elections”. Nor was turnout exceptionally low for such contests. The exception was the massive scale of the drop in the Conservative vote.
The quickest way to make it stop would be to call that general election.
In the past few days, keen observers report an upsurge in activity by those involved in running the Tory campaign.
While Starmer is mired in Rochdale, a giveaway budget on 6 March as the springboard to a May election must remain a distinct possibility – before it gets any worse.
Sir Keir Starmer needs to choose between parents who want stronger action to tackle harmful content on children’s phones, or the “tech bros” who are resisting changes to their platforms, Baroness Harriet Harman has said.
Speaking to Beth Rigby on Sky News’ Electoral Dysfunction podcast, the Labour peer noted that the prime minister met with the creators of hit Netflix drama Adolescence to discuss safety on social media, but she questioned if he is going to take action to “stop the tech companies allowing this sort of stuff” on their platforms where children can access it.
Sir Keir hosted a roundtable on Monday with Adolescence co-writer Jack Thorne and producer Jo Johnson to discuss issues raised in the series, which centres on a 13-year-old boy arrested for the murder of a young girl, and the rise of incel culture.
The aim was to discuss how to prevent young boys being dragged into a “whirlpool of hatred and misogyny”, and the prime minister said the four-part series raises questions about how to keep young people safe from technology.
Sir Keir has backed calls for the four-part drama to be shown in all schools across the country, but Baroness Harman questioned what is going to be achieved by having young people simply watch the show.
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3:15
Sir Keir Starmer held a roundtable with the creators of the Adolescence TV drama.
“Two questions were raised [for me],” she said. ” Firstly – after they’ve watched it, what is going to be the discussion afterwards?
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“And secondly, is he going to act to stop the tech companies allowing this sort of stuff to go online into smartphones without protection of children?
“Because if the tech companies wanted to do this, they could actually protect children. They can do everything they want with their tech.”
She acknowledged there are “very big public policy challenges” in this area, but added of the prime minister: “Is he going to side with parents who are terrified and want this content off their children’s phones, or is he going to accept the tech bros’ resistance to having to make changes?”
The Labour peer backed the Conservative Party’s call for a ban on smartphones in schools to be mandated from Westminster, saying it would “enable all schools not to have a discussion with their parents or to battle it out, but just to say, this is the ruling” from central government, which Ofsted would then enforce.
“I’m sensitive to the idea that we shouldn’t constantly be telling schools what to do,” she continued. “And they’ve got a lot of common sense and a lot of professional experience, and they should have as much autonomy as possible.
“But perhaps it’s easier for them if it’s done top down.”
Baroness Harman also questioned the speed with which parliament is actually able to legislate to deal with the very rapid development of new technologies, and posits that it could “change its processes to be able to legislate in real time”.
She suggested that a “powerful select committee” of MPs could be established to do that, because “otherwise we talk about it, and then we’re not able to legislate for 10 years – by which time that problem has really set in, and we’ve got a whole load more problems”.
On the podcast, the trio also discussed the 10% tariffs imposed on the UK by Donald Trump and the government’s efforts to strike a trade deal with the US to mitigate the impact of the levy.
The government has refused to rule out scrapping the Digital Services Tax, a 2% levy on tech giants’ revenues in the UK, as part of the negotiations with the Trump administration – a move Baroness Harman said would be “very heartbreaking”.
A group of investors with cryptocurrency custody and trading firm Bakkt Holdings filed a class-action lawsuit alleging false or misleading statements and a failure to disclose certain information.
Lead plaintiff Guy Serge A. Franklin called for a jury trial as part of a complaint against Bakkt, senior adviser and former CEO Gavin Michael, CEO and president Andrew Main, and interim chief financial officer Karen Alexander, according to an April 2 filing in the US District Court for the Southern District of New York.
The group of investors allege damages as the result of violations of US securites laws and a lack of transparency surrounding its agreement with clients: Webull and Bank of America (BoA).
April 2 complaint against Bakkt and its executives. Source: PACER
The loss of Bank of America and Webull will result “in a 73% loss in top line revenue” due to the two firms making up a significant percentage of its services revenue, the investor group alleges in the lawsuit. The filing stated Webull made up 74% of Bakkt’s crypto services revenue through most of 2023 and 2024, and Bank of America made up 17% of its loyalty services revenue from January to September 2024.
Bakkt disclosed on March 17 that Bank of America and Webull did not intend to renew their agreements with the firm ending in 2025. The announcement likely contributed to the company’s share price falling more than 27% in the following 24 hours. The investors allege Bakkt “misrepresented the stability and/or diversity of its crypto services revenue” and failed to disclose that this revenue was “substantially dependent” on Webull’s contract.
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” said the suit.
Other law offices said they were investigating Bakkt for securities law violations, suggesting additional class-action lawsuits may be in the works. Cointelegraph contacted Bakkt for a comment on the lawsuit but did not receive a response at the time of publication.
The new trade tariffs announced by US President Donald Trump may place added pressure on the Bitcoin mining ecosystem both domestically and globally, according to one industry executive.
While the US is home to Bitcoin (BTC) mining manufacturing firms such as Auradine, it’s still “not possible to make the whole supply chain, including materials, US-based,” Kristian Csepcsar, chief marketing officer at BTC mining tech provider Braiins, told Cointelegraph.
On April 2, Trump announced sweeping tariffs, imposing a 10% tariff on all countries that export to the US and introducing “reciprocal” levies targeting America’s key trading partners.
Community members have debated the potential effects of the tariffs on Bitcoin, with some saying their impact has been overstated, while others see them as a significant threat.
Tariffs compound existing mining challenges
Csepcsar said the mining industry is already experiencing tough times, pointing to key indicators like the BTC hashprice.
Hashprice — a measure of a miner’s daily revenue per unit of hash power spent to mine BTC blocks — has been on the decline since 2022 and dropped to all-time lows of $50 for the first time in 2024.
According to data from Bitbo, the BTC hashprice was still hovering around all-time low levels of $53 on March 30.
Bitcoin hashprice since late 2013. Source: Bitbo
“Hashprice is the key metric miners follow to understand their bottom line. It is how many dollars one terahash makes a day. A key profitability metric, and it is at all-time lows, ever,” Csepcsar said.
He added that mining equipment tariffs were already increasing under the Biden administration in 2024, and cited comments from Summer Meng, general manager at Chinese crypto mining supplier Bitmars.
“But they keep getting stricter under Trump,” Csepcsar added, referring to companies such as the China-based Bitmain — the world’s largest ASIC manufacturer — which is subject to the new tariffs.
Trump’s latest measures include a 34% additional tariff on top of an existing 20% levy for Chinese mining imports. In response, China reportedly imposed its own retaliatory tariffs on April 4.
BTC mining firms to “lose in the short term”
Csepcsar also noted that cutting-edge chips for crypto mining are currently massively produced in countries like Taiwan and South Korea, which were hit by new 32% and 25% tariffs, respectively.
“It will take a decade for the US to catch up with cutting-edge chip manufacturing. So again, companies, including American ones, lose in the short term,” he said.
Csepcsar also observed that some countries in the Commonwealth of Independent States region, including Russia and Kazakhstan, have been beefing up mining efforts and could potentially overtake the US in hashrate dominance.
“If we continue to see trade war, these regions with low tariffs and more favorable mining conditions can see a major boom,” Csepcsar warned.
As the newly announced tariffs potentially hurt Bitcoin mining both globally and in the US, it may become more difficult for Trump to keep his promise of making the US the global mining leader.
Trump’s stance on crypto has shifted multiple times over the years. As his administration embraces a more pro-crypto agenda, it remains to be seen how the latest economic policies will impact his long-term strategy for digital assets.