Lee Anderson: Former Conservative deputy chair defects to Reform UK

Published

1 year ago

March 11, 2024

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Former Conservative deputy chair Lee Anderson has defected to Reform UK, becoming the party’s first MP in the Commons.

Mr Anderson, who took the seat of Ashfield in 2019, was kicked out of the parliamentary Conservative Party for refusing to apologise after alleging that London mayor Sadiq Khan was controlled by “Islamists”.

And while some of his colleagues had called for his reinstatement, others accused him of Islamophobia.

Making the announcement of his defection at an event in central London, Mr Anderson told journalists he had done “a lot of soul searching” on his “political journey”, but concluded: “Somebody has to make a stand.”

Politics live: ‘I want my country back,’ declares Anderson

“It is no secret that I’ve been talking to my friends in Reform for a while,” added the MP. “And Reform UK has offered me the chance to speak out in parliament on behalf of millions of people up and down the country who feel that they’re not being listened to.

“People will say that I’ve took a gamble. And I’m prepared to gamble on myself, as I know from my mailbag how many people in this country support Reform UK and what they have to say.

“And like millions of people up and down the country, all I want is my country back.”

Asked by Sky News’ political editor, Beth Rigby, what his message would be to his former Tory colleagues who feared the defection could damage their chances at the next election, he said: “Country, constituency, then party.”

Mr Anderson was welcomed to Reform UK by its leader, Richard Tice, who said his first MP would be a “champion of the red wall”, who would “tell it as it is, with no nonsense, no waffle”.

Refuting claims his own views were controversial, Mr Anderson added: “They are opinions which are shared by millions of people up and down the country.

“It’s not controversial to be concerned about illegal immigration. It’s not controversial to be concerned about legal migration.

“It’s not controversial to be, you know, worried, concerned about the Metropolitan Police and the failing London mayor and the hate marchers, the street crime and the shoplifters literally getting away with ruining businesses on a daily basis.

“It’s not controversial to fight back in a culture war, a culture war that is sweeping our nation.”

Defecting to another party does not trigger a by-election automatically, but an MP can choose to hold one – as both Douglas Carswell and Mark Reckless did when they left the Tories to join UKIP.

However, Mr Anderson said he would not call a vote, claiming it would be “pretty reckless” so close to a general election and would “cost a fortune”.

Anderson’s deflection moves Reform to the main stage

By Matthew Thompson, political correspondent

And there we have it. Lee Anderson has become Reform UK’s first member of parliament.

The defection will send shockwaves through Westminster, and particularly through the Conservative Party – who only a week ago were trying to seize control of the narrative and boost their dire polling numbers with a tax cutting budget.

No such luck now, you suspect.

Many people in the Conservative Party rather like Mr Anderson, and would have welcomed him back into the fold with open arms.

He is the man brought in by Rishi Sunak to say the things that others couldn’t. To be the party’s voice in the red wall. The ballast against both Labour and Reform.

By defecting, he not only damages the Conservatives, but gives a significant boost to their rivals.

The nightmare Conservative scenario is to be squeezed between both a resurgent Labour Party and a rising Reform UK, to say nothing of the Liberal Democrats.

It is shades not of the Labour landslide in 1997, but of 1993 – the year the Canadian Progressive Conservative Party suffered a near extinction-level event after being assailed on several sides by rival parties including, portentously, a right-wing outfit called Reform.

Mr Anderson’s defection does not mean that will happen. But at a stroke, Reform UK have moved from the side-lines to the main stage.

There are swirling rumours of further defections in the pipeline, all of which will do little to warm the chill dread of 1993 currently coursing down Conservative spines.

A Conservative Party spokesperson said they “regret” the decision taken by Mr Anderson, adding: “Voting for Reform can’t deliver anything apart from a Keir Starmer-led Labour government that would take us back to square one – which means higher taxes, higher energy costs, no action on channel crossings, and uncontrolled immigration.”

But while one of the right wing factions within the Tories, the New Conservatives, released their own statement agreeing with that sentiment, they placed the blame of the MP’s exit at the door of their own party.

“We have failed to hold together the coalition of voters who gave us an 80 seat majority in 2019,” it said. “Those voters – in our traditional heartlands and in the Red Wall seats like Ashfield – backed us because we offered an optimistic, patriotic, no-nonsense Conservatism.

“They voted for lower immigration, for a better NHS, for a rebalanced economy, and for pride in our country.

“Our poll numbers show what the public think of our record since 2019. We cannot pretend any longer that ‘the plan is working’. We need to change course urgently.”

Labour MP and national campaign co-ordinator Pat McFadden accused the Conservatives of “falling apart”, adding: “What does it say about Rishi Sunak’s judgement that he promoted Lee Anderson in the first place?

“The truth is that the prime minister is too weak to lead a party too extreme to be led, and if the Tories got another five years it would all just get worse.”

The Liberal Democrats also said Mr Anderson’s defection left Mr Sunak’s authority in “tatters”, with deputy leader Daisy Cooper adding: “This is a prime minister that cannot govern his own party let alone the country.

“Even now Sunak is too weak to rule out Nigel Farage joining the Conservative Party. It just shows that there is now hardly a cigarette paper between the Conservative Party and Reform.”

Mr Anderson began his political career in the Labour Party as a councillor and member of staff for Ashfield’s then MP Gloria De Piero.

But after being suspended by the local organisation, he chose to join the Conservatives and became their candidate for the 2019 election, winning the seat with a majority more than 5,000.

The MP became a controversial voice on the backbenches with his views on immigration and the so-called culture wars, but gained a lot of support from the right of his party and was made deputy chair by Rishi Sunak.

However, he stood down from the role in January to vote against the government’s Rwanda deportation plan, which he believed needed toughening up.

Mr Anderson’s latest defection will come as a blow to Mr Sunak, and a boost to Reform UK – which is currently polling above the Liberal Democrats.

Politics

US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

Published

2 hours ago

July 9, 2025

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

The legislation to establish crypto market structure is one of three bills the US House of Representatives is expected to consider starting next week.

Politics

What is a wealth tax, how would it work in the UK and where else has one?

Published

4 hours ago

July 9, 2025

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

7 hours ago

July 9, 2025

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

Money blog: €1 home goes on sale – but there are T&Cs

Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”