Connect with us

Published

on

We may have been in Easter recess the past couple of weeks, but on both sides of the party divide, there were those who did not get a rest from politics.

MP William Wragg undoubtedly had a dysfunctional week as the man at the centre of the Westminster honeytrap scandal.

He resigned the Conservative party whip as some colleagues looked on with a mixture of bemusement and anger at Number 10’s handling of the whole sorry affair.

Meanwhile, on the Labour side, deputy leader Angela Rayner can’t seem to shake off or shut down the persistent questions about whether she paid the right amount of tax when she sold her council house nearly a decade ago.

She insists she has done nothing wrong while there are Conservatives looking to weaponise the issue in this election year – with at least one local Tory councillor and other protesters this week hounding her on a visit to Teesside, with banners dubbing her a “tax dodger”‘ in the hope it will stick.

? Listen above then tap here to follow Electoral Dysfunction wherever you get your podcasts ?

This week in Electoral Dysfunction, Jess, Ruth and I chew over both the substance and the politics of these difficult situations and ask whether Number 10 and Labour are making tricky issues better or worse.

When it comes to Mr Wragg, who admitted sharing MPs’ and journalists’ phone numbers with someone he met on Grindr who had “compromising things” on him, there is widespread incredulity that a sitting MP would do such a thing, overlaid with some anger over Number 10’s handling of it – with some arguing that Rishi Sunak failed to move quickly enough to take control of the story, suspend Mr Wragg and look decisive.

Instead, ministers were dispatched to defend the MP as ”courageous”, while it was Mr Wragg himself who decided to give up the Tory whip his week. He is now sitting as an independent MP.

“Madness [to send pictures and give out personal details] and yet our leadership decided to defend him,” one former cabinet minister texted this week. “If it wasn’t so stupid. It would be genuinely funny. The script of the Thick Of It. A few of us messaged centre at weekend to say WTF. His resignation was inevitable.”

Ruth agrees, and says – while she has sympathy for Mr Wragg being in this “horrible situation” – that he is “somebody in an important job who has responsibilities” to the place he works and people with whom he works.

“The idea you throw all of that out of the window for a quick shag or to exchange a pic is so wilfully irresponsible that actually I don’t think [much of] the level of understanding, or acceptance or excuse that the government made on his behalf.

Please use Chrome browser for a more accessible video player

Sexting MP ‘right to quit’

“I think it’s bad judgement and I think this is another one where you look at the judgement of the prime minister and go, you know this, this doesn’t fly.”

But aside from questions about the political handling from the centre – and there are issues around safeguarding a vulnerable MP, which I talk about in the pod – there are also wider questions, again, around MPs’ security in a world where contacts count and phone numbers are currency.

“People give numbers out all the time. Having people’s phone numbers is a massive currency in Westminster,” explains Jess, who points out that MPs are using personal phones in parliament.

“The trouble is that I think people think we have parliamentary phones but it’s just my personal phone, so they don’t own it. I’m way more careful about my parliamentary computer and the iPad they gave me.

“So I imagine what will come out of this is probably that we all have to have parliamentary-issued phones that are locked down by the security services. I imagine that’s where it’s going.”

Please use Chrome browser for a more accessible video player

Starmer: Rayner tax story is ‘smear’

With a sex scandal engulfing the Conservatives once more, on the other side of the political divide, Ms Rayner is struggling to put to bed questions over whether she paid the right amount of tax when she sold her council house nearly a decade ago, before she became an MP.

Ms Rayner has made it clear she took tax advice at the time and has done nothing wrong, while Labour leader Sir Keir Starmer has come out to defend her and accused the Tories of trying to smear her over a story with no substance.

Neither Ruth, Jess nor I think the story is getting much cut through, largely because of the complexity of it all, but that isn’t stopping the Conservatives pursuing Ms Rayner with real ferocity.

Ruth thinks the Tories are going in hard for a number of reasons.

First, she thinks Labour “hasn’t had this level of scrutiny for a long time”, so this is an opportunity for the party machine to “try to flex its muscles”. Second, Ms Rayner has been used as “an attack dog” for the party on these issues so “what’s good for the goose is good for the gander”.

Read more:
Angela Rayner’s tax affairs – a smear or a real trust problem for Labour?

Michelle Donelan: Minister’s legal fees take total cost of libel case to £34,000

She also argues that “there is a purpose to man-mark her off the pitch”, but it won’t change the public’s view of Ms Rayner: “She’ll be a Marmite politician for the whole of her career because of the strength of her character. The people who love her will love her and the people who can’t stand her will turn the TV off when she comes on.”

Jess concedes the issue is hurting Ms Rayner but thinks she will ride it out and believes there’s a risk that “if it starts to look like the Conservatives are picking on her, it has a counter effect”.

Electoral Dysfunction
Electoral Dysfunction

Listen to Beth Rigby, Jess Phillips and Ruth Davidson as they unravel the spin in a new weekly podcast from Sky News

Tap here to follow

But, in a similar way to the Beergate story that hounded Sir Keir and Ms Rayner during 2021 – they were accused, and cleared, of breaking lockdown rules in Durham – the Conservatives show little sign of letting go of Ms Rayner or her tax affairs until they have wrung every single drop out of it.

And if, in an election year, they can try to make “tax dodger” land – or at least disrupt her campaigning – Conservative campaign headquarters will chalk it up as a win.

So while the hope from Ms Rayner’s and Sir Keir’s respective offices is that the story will burn itself out, it may be that Ms Rayner, in the end, has to do more to put it properly to bed: on that, all three of us agree.

Continue Reading

Politics

Arizona governor signs law for state to keep unclaimed crypto

Published

on

By

Arizona governor signs law for state to keep unclaimed crypto

Arizona governor signs law for state to keep unclaimed crypto

Arizona Governor Katie Hobbs has signed a bill into law allowing the US state to keep unclaimed crypto and establish a “Bitcoin Reserve Fund” that won’t use any taxpayer money or state funds.

Hobbs signed House Bill 2749 into law on May 7, which allows Arizona to claim ownership of abandoned digital assets if the owner fails to respond to communications within three years.

The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into what Arizona has called a Bitcoin and Digital Asset Reserve Fund.

“This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency,” the bill’s sponsor, Jeff Weninger, said in a May 7 statement.

Arizona governor signs law for state to keep unclaimed crypto
Arizona House Representative Jeff Weninger’s statement on the signing of HB 2749 into law. Source: Jeff Weninger

“We’ve built a structure that protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy,” Weninger added.

On May 3, Hobbs vetoed a similar Bitcoin (BTC) reserve bill, Senate Bill 1025, which would have allowed the state to invest seized funds into Bitcoin, citing concerns over using public funds for “untested assets.”

Hobbs’ move gives hope for future crypto bills

Bitcoin Laws founder Julian Fahrer said on X that Hobbs’ signing of HB 2749 offers more hope that she may also sign Senate Bill 1373, which is currently on her desk.

Related: Bitcoin bros at ‘the club’ may stop US gov’t from buying BTC — Arthur Hayes

SB 1373 would authorize Arizona’s treasurer, currently Kimberly Yee, to allocate up to 10% of Arizona’s Budget Stabilization Fund into Bitcoin. 

The bill’s passage in Arizona follows New Hampshire Governor Kelly Ayotte on May 6 signing House Bill 302 into law, allowing her state’s treasury to use funds to invest in cryptocurrencies with a market capitalization of more than $500 billion.

Bitcoin is currently the only cryptocurrency that meets that threshold.

Magazine: Crypto wanted to overthrow banks, and now it’s becoming them in stablecoin fight

Continue Reading

Politics

Binance founder CZ asked Trump to pardon money laundering conviction

Published

on

By

Binance founder CZ asked Trump to pardon money laundering conviction

Binance founder CZ asked Trump to pardon money laundering conviction

Binance founder and convicted felon Changpeng Zhao says that he applied for a pardon from US President Donald Trump shortly after denying reports that he was seeking one.

Zhao, also known as CZ, said on a Farokh Radio podcast episode aired May 6 that he “wouldn’t mind” a pardon and that his lawyers have already filed the paperwork on his behalf

“I got lawyers applying,” Zhao said, adding that he submitted the request after Bloomberg and The Wall Street Journal reported in March that he was seeking a pardon from Trump amid discussions of a business deal between the Trump family and Binance.US.

Zhao denied the reports at the time, but said on the podcast that he thought “if they’re writing this article, I may as well just officially apply.”

He added that Trump’s pardon of three BitMEX founders, including Arthur Hayes, also motivated him to submit an application.

Zhao said the application was submitted about two weeks ago.

Binance founder CZ asked Trump to pardon money laundering conviction
Changpeng Zhao (right) speaking with Farokh Sarmad (left). Source: Farokh Radio

Zhao said at the time of the Bloomberg and Wall Street Journal reports that “no felon would mind a pardon,” and claimed he is the only person in US history to serve prison time for a Bank Secrecy Act charge.

Zhao pleaded guilty to a money laundering charge in November 2023 as part of a deal Binance reached with US authorities, which saw it pay a $4.3 billion fine, to which Zhao contributed $50 million. He was also forced to step down as CEO.

Zhao was later sentenced to four months in prison and was prohibited from working at Binance as part of his plea deal.

Related: VanEck files for BNB ETF, first in US

According to the US Department of Justice, a pardon would not erase Zhao’s money laundering conviction; however, it could potentially allow him to assume a management or operational role at Binance.US.

Zhao has no plans to return as Binance CEO

While Zhao remains a Binance shareholder, he said in November at Binance Blockchain Week that he has “no plans to return to the CEO position.” 

“I feel the team is doing well and doesn’t need me back,” Zhao said.

Since leaving prison, Zhao has commenced advisory roles in Pakistan and Kyrgyzstan, assisting on matters related to crypto regulation and implementing blockchain solutions.

Magazine: Bitcoiner Adam Back on Blockstream conspiracy theories and Satoshi question

Continue Reading

Politics

Starmer facing growing backbench rebellion over planned disability benefit cuts

Published

on

By

Starmer facing growing backbench rebellion over planned disability benefit cuts

A senior Labour MP has said the government needs to take “corrective action” over planned disability benefit cuts – as Sir Keir Starmer faces a growing backbench rebellion.

Tan Dhesi, chair of the influential Commons defence committee, told the Politics Hub with Sophy Ridge the “disappointing” local election results show the government must listen and learn, particularly over welfare reforms.

The government has proposed tightening the eligibility requirements for the personal independent payment, known as PIP.

Politics latest: Farage urged to suspend new Reform councillor

A claimant must score a minimum of four points on one PIP daily living activity, such as preparing food, washing and bathing, using the toilet or reading, to receive the daily living element of the benefit.

Mr Dhesi, the MP for Slough, said “corrective action” needs to be taken but insisted if the government changed tact, it would not be a U-turn as the disability cuts were only proposals.

Tan Dhesi said the government should take 'corrective action' over disability cuts
Image:
Tan Dhesi spoke to Sky’s Sophy Ridge

“A government which is in listening mode should be looking at what the electorate is saying,” he said.

“And we need to make sure that it’s our moral duty, responsibility, to look after the most vulnerable within our community, whether that’s in Slough, whether that’s elsewhere across the country.

“So, I hope that the government will be taking on board that feedback and many of us as MPs are giving that feedback in various meetings happening here in Westminster and then we need to take corrective action.”

Alex Davies-Jones said the government is just consulting on cutting benefits
Image:
Alex Davies-Jones said the government was seeking to ‘protect the vulnerable’

Minister Alex Davies-Jones told the Politics Hub a Labour government “will always seek to protect the most vulnerable” and it wants to “listen to people who have got real lived experience”.

She added she has the “utmost respect for Tan, he’s a great constituency MP and he’s doing exactly what he should be doing, is representing his constituency”.

Sir Keir is facing a rebellion from Labour MPs, with about 40 in the Red Wall – Labour’s traditional heartlands in the north of England – reposting a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

Read more:
Starmer defends winter fuel cut

The choice facing Labour in face of Reform threat

Please use Chrome browser for a more accessible video player

Starmer defends winter fuel cuts

Several backbench Labour MPs also spoke out against the plans during a debate on PIP and disabled people in parliament on Wednesday.

Ian Byrne, MP for Liverpool West Derby, said he would “swim through vomit to vote against” the proposed changes and said: “This is not what the Labour Party was formed to do.”

Bell Ribeiro-Addy, the MP for Clapham and Brixton Hill, said she feared tightening PIP eligibility would cause deaths, adding: “Lest we forget that study that attributed 330,000 excess deaths in Britain between 2012 and 2019 to the last round of austerity cuts [under the Conservative government].”

Diane Abbott, the longest-serving female MP, accused the government of putting forward “contradictory arguments”.

“On the one hand, they insist they are helping the disabled by putting them back to work,” she said.

“But on the other hand, they say this cut will save £9bn. Well, you can’t do both.”

Please use Chrome browser for a more accessible video player

‘I’ll struggle if I lose disability support’

However, fellow Labour MP David Pinto-Duschinsky, said MPs cannot “ignore this issue” of health-related benefit claimant figures rising at “twice the rate of underlying health conditions”.

Responding for the government, social security minister Sir Stephen Timms said PIP claims were set to “more than double, from two million to over 4.3 million this decade”.

“It would certainly not be in the interests of people currently claiming the benefits for the government to bury its head in the sand over that rate of increase,” he added.

Continue Reading

Trending