Connect with us

Published

on

Rishi Sunak has refused to repeat Kemi Badenoch’s claim that the former Post Office boss was lying when he said he was told to delay compensation to Horizon scandal victims.

Sir Keir Starmer asked the prime minister if he is prepared to personally repeat the allegation made by his business secretary regarding Henry Staunton.

Mr Staunton, who was sacked last month, has claimed he was told to stall pay-outs to sub-postmasters due to financial concerns ahead of the general election – something Ms Badenoch has strongly denied.

Mr Sunak did not answer the Labour leader’s question directly, simply saying Mr Staunton was fired because of “serious concerns” about his conduct.

He added: “We have taken up steps to ensure victims of the Horizon scandal receive compensation as swiftly as possible… that remains our priority.”

Sir Keir, speaking at PMQs, pressed him on Ms Badenoch’s statement on Monday that Mr Staunton was “at no point told to delay compensation payments by either an official or a minister from any government department; at no point was it suggested that a delay would be a benefit to the Treasury.”

Asked if he will investigate if that statement is correct, the prime minister repeated that Mr Staunton was asked to step down “after serious concerns were raised”.

More on Post Office Scandal

The exchange comes after an unearthed memo from Mr Staunton which raises questions about Ms Badenoch’s claims.

It has emerged that Mr Staunton wrote a note on 5 January last year which said that Sarah Munby, the then permanent secretary at the business department, had warned him during a meeting that day not to “rip off the band aid” in terms of government finances in the run up to the election.

Henry Staunton
Image:
Henry Staunton

Politics Live:
Defence secretary to update MPs on failed missile launch

According to the note, seen by Sky News, Mr Staunton said that the Post Office board had identified a financial shortfall of £160m as of September 2022 and that “there was a likelihood of a significant reduction in post offices” if more government funding was not made available.

He wrote: “Sarah was sympathetic to all of the above. She understood the ‘huge commercial challenge’ and the ‘seriousness’ of the financial position. She described ‘all the options as unattractive’. However, ‘politicians do not necessarily like to confront reality’. This particularly applied when there was no obvious ‘route to profitability’.

“She said we needed to know that in the run-up to the election there was no appetite to ‘rip off the band aid’. ‘Now was not the time for dealing with long-term issues.’ We needed a plan to ‘hobble’ up to the election.”

Kemi Badenoch MP denies she is in an 'evil plotters' Whatsapp group
Image:
Kemi Badenoch

Labour MP Liam Byrne, who is chair of parliament’s Business Committee, said the note is “a go slow order, without a doubt”. He said his committee will attempt to “flush out the truth” on Tuesday, when Mr Staunton will appear before MPs.

The note has sparked demands from the Lib Dems for Mr Sunak’s ethics adviser to investigate whether Ms Badenoch misled parliament with her accusation that Mr Staunton was lying.

Labour said there needs to be a cabinet office investigation to establish the veracity of Mr Staunton’s claims.

Click to subscribe to the Sky News Daily wherever you get your podcasts

Row over disputed memo

Earlier, a government source was dismissive of the memo and suggested Mr Staunton was either “confused or deliberately mixing up” long-standing issues around Post Office finances with the payouts to wrongfully convicted sub-postmasters.

They added: “Even if we trust the veracity of a memo he wrote himself, and there’s not much to suggest we can, given the false accusations he made about the Secretary of State in his original interview, it’s time for Henry Staunton to admit his interview on Sunday was a misrepresentation of his conversations with ministers and officials and to apologise to the government and the postmasters.”

Read More:
Who is Henry Staunton?
The story behind the victims

Please use Chrome browser for a more accessible video player

Did the government delay Post Office compensation?

Was ousted boss asked to delay compensation payments?

In his original interview with the Sunday Times, Mr Staunton claimed that he was ordered by a senior civil servant to stall spending on compensation for Horizon victims to allow the government to “limp into the election”.

He said it “was not an anti-postmaster thing, it was just straight financials”.

He also claimed that when he was sacked he was told someone had to “take the rap” for the Horizon scandal, which came under renewed public scrutiny following the ITV drama series Mr Bates Vs The Post Office.

Mr Staunton has stood by his claims in the face of government denials, insisting that there was “no real movement” on the payouts until the airing of the ITV drama.

A post office sign hangs above a shop
Image:
Pic: Reuters

On Monday, Ms Badenoch said the claims are “completely false” and accused Mr Staunton of seeking “revenge” after he was sacked.

She also claimed he was being investigated over bullying allegations before he was dismissed from his short-lived post – something he has denied.

He has said he decided to go public “out of a desire to ensure that the public were fully aware of the facts surrounding the multiple failures that have led to postmasters in this country being badly let down”.

The Horizon scandal saw hundreds of sub-postmasters prosecuted because of discrepancies in the Fujitsu-developed IT system between 1999 and 2015, in what has been called the biggest miscarriage of justice in UK history.

Continue Reading

Politics

Wes Streeting denies Labour has made ‘mistakes’ with ‘unpopular’ policies despite poor local election results

Published

on

By

Wes Streeting denies Labour has made 'mistakes' with 'unpopular' policies despite poor local election results

Health Secretary Wes Streeting has defended “unpopular” policies such as the cut to the winter fuel allowance despite Labour’s poor performance at the local elections.

Mr Streeting denied the government had made any mistakes when asked whether the policy was partly to blame for the party losing 189 council seats less than a year since the General Election.

Since coming into government last July, Labour has enacted a number of policies that were not in its manifesto.

These include means-testing winter fuel payments for pensioners, increasing employers’ national insurance contributions and slashing £5bn from the welfare bill.

Asked what mistakes his government had made so far that had led to its drubbing at the ballot box, Mr Streeting told Sunday Morning with Trevor Phillips: “Well, we will make plenty of mistakes.”

Politics latest: Lucy Powell ‘right’ to apologise for grooming gangs comments

Pressed again on whether he believed “mistakes” had been made, the health secretary replied: “No. When we made those choices, we knew they would be unpopular. And we knew that they would be opposed.

“The reason we made those choices is because we genuinely believe they’re the right choices to get the country out of the massive hole it was left in. And right across the board. Whether it’s the NHS, whether it’s schools, whether it’s prisons, whether it’s our defence and security, whether it’s crime and policing, there were enormous challenges facing this country when we came in.

“And we’ve had to make big and sometimes unpopular decisions so that we can face those challenges and deal with them. People might thank us if we just kind of go for the easy but we want to make the right choices.”

Some Labour MPs have urged the government to change direction, with one telling Sky News the cut to winter fuel was a “catastrophic error” that must be “remedied” if the party is to see any improvement in public opinion.

Others have warned that in courting Reform voters, the party risks fracturing its coalition of voters on the left who may be tempted by the Liberal Democrats and Green Party.

However, in the aftermath of the local elections, Sir Keir Starmer suggested the poor results meant he needed to go “further and faster” in delivering his existing agenda.

Please use Chrome browser for a more accessible video player

Inside Reform’s election success

The real victor to emerge from Thursday’s local elections was Reform UK, which won control of 10 councils and picked up 677 council seats largely at the expense of the Conservatives in the south.

However, Reform also won the Runcorn by-election from Labour by just six votes, as well as control of Doncaster Council from Labour – the only local authority it had control of in this set of elections – in a significant win for Nigel Farage and his party.

The Reform UK leader declared that two-party politics was now “finished” and that his party was now the official “opposition” to Labour.

Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Mr Streeting said: ” I certainly do treat them as a serious opposition force.”

“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.

“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”

Read more:
Reform’s mission to ‘remoralise’ young people
Reform has put the two traditional parties on notice

Please use Chrome browser for a more accessible video player

Reform UK are ‘fighting force’

Tory Party chairman Nigel Huddleston said Reform UK was not just a protest party and that Mr Farage was “a force in British politics”.

He told Trevor Phillips: “But the one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.

“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”

“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.

Continue Reading

Politics

It is ‘feasible’ Nigel Farage could be the next prime minister, says Kemi Badenoch

Published

on

By

It is 'feasible' Nigel Farage could be the next prime minister, says Kemi Badenoch

Kemi Badenoch has admitted it is “feasible” that Nigel Farage could become the next prime minister.

The Tory leader told the BBC’s Sunday With Laura Kuenssberg programme Mr Farage’s party was “expressing the feeling of frustration that a lot of people around the country are feeling” – but added it was her job to “come up with answers and solutions”.

Asked if it was feasible that Mr Farage could be the next prime minister, she cited how Australian Prime Minister Anthony Albanese had won re-election this weekend.

“As I said, anything is feasible,” she said. “Anthony Albanese: people were writing him off. He has just won a landslide, but my job is to make sure that he [Farage] does not become prime minister because he does not have the answers to the problems the country is facing.”

Politics latest: Lucy Powell ‘right’ to apologise for grooming gangs comments

Please use Chrome browser for a more accessible video player

Could Nigel Farage be prime minister?

Asked what Mr Farage was doing right, Ms Badenoch said: “He is expressing the feeling of frustration that a lot of people around the country are feeling.

“But he also doesn’t have a record in government like the two main parties do. Now he’s going to be running some councils. We’ll see how that goes.”

Mr Farage was the undoubted winner of Thursday’s local elections, in which 23 councils were up for grabs.

His party picked up 677 council seats and took control of 10 councils.

By contrast, the Conservatives lost 677 council seats as well as control of 18 councils in what was their worst local elections performance on record.

Mr Farage said the outcome spelt the end of two-party politics and that his party was now the official “opposition” to Labour – with the Tories having been rendered a “waste of space”.

Read more:
Reform has put the two traditional parties on notice

‘I get it’: Starmer responds after losing Runcorn by-election

Ms Badenoch said she believed the vote for Mr Farage on Thursday was partly down to “protest” but added: “That doesn’t mean we sit back. We are going to come out fighting.

“We are going to come out with the policies that people want to see, but what we are not going to do is rush out and tell the public things that are not true just so we can win votes.

“This is not about winning elections; this is about fixing our country. Yes, of course, you need to win elections to do that, but you also need a credible plan.”

Please use Chrome browser for a more accessible video player

‘Farage is a force in British politics’

Conservative co-chairman Nigel Huddleston sought to play down the threat from Reform UK, telling Sky News: “When they’re in a position of delivering things, that’s when the shine comes off.”

He told Sunday Morning with Trevor Phillips: “The one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.

“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”

“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.

Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Health Secretary Wes Streeting told Trevor Phillips: ” I certainly do treat them as a serious opposition force.”

“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.

“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”

Continue Reading

Politics

Pro-crypto Democrats pull support for stablecoin bill in last minute

Published

on

By

Pro-crypto Democrats pull support for stablecoin bill in last minute

Pro-crypto Democrats pull support for stablecoin bill in last minute

A group of US Senate Democrats known for supporting the crypto industry have said they would oppose a Republican-led stablecoin bill if it moves forward in its current form.

The move threatens to stall legislation that could establish the first US regulatory framework for stablecoins, according to a May 3 report from Politico.

Per the report, nine Senate Democrats said in a joint statement that the bill “still has numerous issues that must be addressed.” They warned they would not support a procedural vote to advance the legislation unless changes are made.

Among the signatories were Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim — all of whom had previously backed the bill when it passed through the Senate Banking Committee in March.

The bill, introduced by Senator Bill Hagerty, is formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

Related: Fed’s Powell reasserts support for stablecoin legislation

Senate prepares to vote on stablecoin bill

The Senate is expected to begin floor consideration of the bill in the coming days, with the first vote potentially taking place next week.

The bill has been championed by the crypto industry as a landmark step toward regulatory clarity. However, the Democrats’ about-face reflects growing unease within the party.

Although revisions were made to the bill after its committee approval to address Democratic concerns, the lawmakers said the changes fell short. They called for stronger safeguards related to Anti-Money Laundering, national security, foreign issuers, and accountability measures for noncompliant actors.

The statement was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.

Pro-crypto Democrats pull support for stablecoin bill in last minute
A copy of the statement. Source: Alex Thorn

Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co-sponsored the bill alongside Hagerty.

Despite their objections, the Democratic senators emphasized their commitment to shaping responsible crypto regulation. They reportedly said they “are eager to continue working with our colleagues to address these issues.”

Related: US banks are ‘free to begin supporting Bitcoin’

Crypto needs a stablecoin bill

On April 27, Caitlin Long, founder and CEO of Custodia Bank, criticized the US Federal Reserve for quietly maintaining a key anti-crypto policy that favors big-bank-issued stablecoins, despite relaxing crypto partnership rules for banks.

Long explained that while the Fed recently rescinded four prior crypto guidelines, a Jan. 27, 2023, statement was left intact in coordination with the Biden administration.

The guidance, according to Long, blocks banks from engaging directly with crypto assets and prohibits them from issuing stablecoins on permissionless blockchains.

However, Long noted that once a federal stablecoin bill becomes law, it could override the Fed’s stance. “Congress should hurry up,” she urged.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Continue Reading

Trending