Rwanda plan blame game begins over latest delays – with plenty more showdowns to come for Rishi Sunak
This was the week it was meant to be done.
Having forced the House of Commons to vote down the Lords’ amendments to the prime minister’s flagship illegal immigration bill three times, peers would typically have bowed out of the battle this time around and passed the Rwanda bill.
Instead, they sought to amend the legislation again.
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There is obvious frustration in government, with one senior figure saying: “We wanted to get it done today, but it shows Labour for their true colours.”
The Rwanda bill now comes back to the Commons next week, and could finally be passed on Monday.
All the while, the clock is ticking down on the prime minister‘s promise to get flights away by the end of spring.
With that timetable already in doubt, at least this ping pong can help ministers pin this on peers should that deadline be missed.
But there is also huge frustration amongst some MPs with Number 10.
‘We need to get it through’
Many are asking why the government didn’t just table late night sittings and force Lords to sit into the night to ram through the legislation.
Tory MP Rehman Chishti spoke for many colleagues when he told me he didn’t understand why the whips hadn’t chosen this course.
“I think the programme motion could easily have ensured that we had a vote tomorrow because at the end of day the public want us to get on and get it done. Labour have delayed, dithered, delayed. We’ve got a plan, but we need to get it through,” he said.
“If you would have asked me, I would have put it in tomorrow and I would have a vote on it. And therefore we get those planes off and make sure that this policy delivers what it needs to be delivering, which is deterrence.”
Another senior minister told me it was “clear” to them that these were “delaying tactics because they know the version of the policy doesn’t work and they want more time and to put off the day of reckoning”.
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The UK’s Rwanda bill has been delayed again. Pic: AP
Labour ‘terrified it will work’
As Labour blames the government for refusing to compromise on amendments, and “going home” instead of looking again at the bill this evening, the government blames Labour for delaying the bill because – to quote minister Steve Baker – “they are terrified it will work”.
There is talk that had the government accepted the amendment to exempt Afghans who served alongside UK forces from deportation to Rwanda, the Lords might have passed the bill.
Labour had received an assurance from the Home Office that this amendment, tabled by former Labour defence secretary Des Browne, was going to be accepted – only for it then to be blocked.
For all the drama and irritation, it is likely that the prime minister will still have his moment.
At some point, the House of Lords will have to cave. Unelected peers cannot keep ignoring the will of the Commons.
But the question then is whether he can assuage the frustration of voters who are watching the small boats still coming, with the most crossings in a single day this year – 534 people – happening this week.
‘Another failed thing they promised’
In our Sky News election target town of Cleethorpes, part of a key bellwether seat in the next general election, voters we spoke to are sceptical the government will deliver the flights at all.
One resident told us: “They tell you what they think you want to hear but when it comes down to it, they don’t deliver that.”
Another said: “No one’s gone to Rwanda. They get on the plane, and they take them off. So that’s another failed thing they’ve promised.”
And really that’s the rub of it – the prime minister will get this legislation passed.
Then the challenge is to get those planes off the ground. Anything less won’t be acceptable.
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But with even some of his own backbenchers believing the policy won’t work, a parliamentary win is only the end of the beginning.
The next question is will he, if he has to, not just take on the Lords, but take on the European courts – and those in his own cabinet – and if necessary ignore court rulings to get flights away.
There are plenty more showdowns to come.
The home secretary has denied the government is watering down its response to child grooming gangs after it was accused of dropping plans for local inquiries.
Yvette Cooper announced at the beginning of the year that “victim-centred, locally-led inquiries” would take place in five areas after the issue caught the attention of tech billionaire Elon Musk.
But this week, safeguarding minister Jess Phillips did not provide an update on the reviews and instead said local authorities would be able to access a £5m fund to support any work they wanted to carry out.
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Her statement led to accusations that the government was diluting the importance of the local inquiries by giving councils the choice over how to spend the money.
Asked by Anna Jones on Sky News whether the government was “watering down” its response, Ms Cooper said: “No, completely the opposite.
“What we’re doing is increasing the action we’re taking on this vile crime.”
The home secretary pointed to the rapid audit that is being carried out by Baroness Louise Casey, which will bring together the data gathered so far on grooming gangs and consider the lessons that should be learned at a national level.
She added: “Most important of all, what we’re doing is we’re increasing the police investigations, because these are dangerous perpetrators and again, they should be behind bars.”
Elon Musk has been critical of Labour’s response to grooming gangs and has called for a national inquiry.
Demands for a national inquiry into the scandal – in which girls as young as 11 were groomed and raped across a number of towns and cities in England over a decade ago – grew louder this year after Mr Musk accused Labour of failing to act on the issue on his social media platform X.
The government refused to hold a national inquiry, citing the work carried out by Professor Alexis Jay, who led the Independent Inquiry into Child Sex Abuse that looked into abuse by organised groups following multiple convictions of sexual offences against children across the UK between 2010-2014.
However, it did commit to holding local inquiries in five areas backed by £5m in funding and advised by Tom Crowther KC.
‘Political mess’
But ministers are facing a backlash following Ms Phillips’ statement in the Commons on Tuesday – made an hour before parliament rose for Easter recess – in which she said the government would take a “flexible approach” by allowing five councils to launch victims’ panels or locally led audits.
Labour MPs angry with government decision grooming gangs
With about an hour until the House of Commons rose for Easter recess, the government announced it was taking a more “flexible” approach to the local grooming gang inquiries.
Safeguarding minister Jess Philips argued this was based on experience from certain affected areas, and that the government is funding new police investigations to re-open historic cases.
Sky News presenter and former chair of the Equality and Human Rights Commission Trevor Philips called the move “utterly shameful” and claimed it was a political decision.
One Labour MP told Sky News: “Some people are very angry. I despair. I don’t disagree with many of our decisions but we just play to Reform – someone somewhere needs sacking.”
The government insists party political misinformation is fanning the flames of frustration in Labour, and that they not watering down the inquiries – on the contrary, they say are increasing the action being taken – , but while many Labour MPs have one eye on Reform in the rearview mirror, any accusations of being soft on grooming gangs only provides political ammunition to their adversaries.
One Labour MP told Sky News the issue had turned into a “political mess” and that they were being called “grooming sympathisers”.
On the update from Ms Phillips on Tuesday, they said it might have been the “right thing to do” but that it was “horrible politically”.
“We are all getting so much abuse. It’s just political naivety in the extreme.”
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Tory leader Kemi Badenoch said yesterday that she was “absolutely astonished that Labour has dropped what it said it would do in January”.
“They are clearly uncomfortable with having inquiries that are looking into this issue,”she said.
“They said that they’ll have a pot of money for councils to bid in, but why would a council bid for money to investigate itself?
“We need something that is national. We need a statutory inquiry so we can compel witnesses, and I’m going to make sure that we force another vote.”
‘We will leave no stone unturned’
Ms Phillips later defended her decision, saying there was “far too much party political misinformation about the action that is being taken when everyone should be trying to support victims and survivors”.
“We are funding new police investigations to re-open historic cases, providing national support for locally led inquiries and action, and Louise Casey… is currently reviewing the nature, scale and ethnicity of grooming gangs offending across the country.
“We will not hesitate to go further, unlike the previous government, who showed no interest in this issue over 14 years and did nothing to progress the recommendations from the seven year national inquiry when they had the chance.
“We will leave no stone unturned in pursuit of justice for victims and will be unrelenting in our crackdown on sick predators and perpetrators who prey on vulnerable children.”
Non-fungible token marketplace OpenSea has urged the US Securities and Exchange Commission to exclude NFT marketplaces from regulation under federal securities laws.
The SEC needs to “clearly state that NFT marketplaces like OpenSea do not qualify as exchanges under federal securities laws,” OpenSea general counsel Adele Faure and deputy general counsel Laura Brookover said in an April 9 letter to Commissioner Hester Peirce, who leads the agency’s Crypto Task Force.
Faure and Brookover argued that NFT marketplaces don’t meet the legal definition of an exchange under US securities laws as they don’t execute transactions, act as intermediaries or bring together multiple sellers for the same asset.
“The Commission’s past enforcement agenda has created uncertainty. We therefore urge the Commission to remove this uncertainty and protect the ability of US technology companies to lead in this space,” Faure and Brookover wrote.
OpenSea’s legal team has asked the SEC to issue informal guidance on NFT Marketplaces. Source: SEC
“In preparing this guidance, the Crypto Task Force should specifically address the application of exchange regulations to marketplaces for non-fungible assets, similar to the recent staff statements on memecoins and stablecoins,” Faure and Brookover added.
Under a notice published on April 4, the SEC said stablecoins that meet specific criteria are considered “non-securities” and are exempt from transaction reporting requirements.
Meanwhile, the SEC’s division of corporation finance said in a Feb. 27 staff statement that memecoins are not securities under the federal securities laws but are more akin to collectibles.
NFT marketplaces don’t fit broker definition, says OpenSea
Faure and Brookover argued the Crypto Task Force should also exempt NFT marketplaces like OpenSea from having to register as a broker, arguing they don’t give investment advice, execute transactions, or custody customer assets.
“We ask the SEC to clear the existing industry confusion on this issue by publishing informal guidance. In the longer term, we invite the Commission to exempt NFT marketplaces like OpenSea from proposed broker regulation,” they said.
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Under the Trump administration, the SEC has slowly been walking back its hardline stance toward crypto forged under former Chair Gary Gensler.
The regulator has dismissed a number of enforcement actions it previously launched against crypto firms and has dropped probes into crypto companies over alleged securities law violations, including one into OpenSea.
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Braden John Karony, the CEO of crypto firm SafeMoon, has cited the US Department of Justice’s directive to no longer pursue some crypto charges in an effort to get the case against him and his firm dismissed.
In an April 9 letter to New York federal court judge Eric Komitee, Karony’s attorney, Nicholas Smith, said the court should consider an April 7 memo from US Deputy Attorney General Todd Blanche that disbanded the DOJ’s crypto unit.
“The Department of Justice is not a digital assets regulator,” Blanche said in the memo, which added the DOJ “will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets.”
Blanche also directed prosecutors not to charge violations of securities and commodities laws when the case would require the DOJ to determine if a digital asset is a security or commodity when charges such as wire fraud are available.
An excerpt of the letter Karony sent to Judge Komitee. Source: PACER
In the footnote of the letter, Karony’s counsel wrote an exemption to the DOJ’s new directive would be if the parties have an interest in defending that a crypto asset is a security, but added that “Karony does not have such an interest.”
The Justice Department and the Securities and Exchange Commission filed simultaneous charges of securities violations, wire fraud, and money laundering against Karony and other SafeMoon executives in November 2023.
The government alleged Karony, SafeMoon creator Kyle Nagy and chief technology officer Thomas Smith withdrew assets worth $200 million from the project and misappropriated investor funds.
Another attempt to nix the case
The letter is Karony’s latest attempt to get the case thrown out. In February, he asked that his trial, scheduled to begin on March 31, be delayed as he argued President Donald Trump’s proposed crypto policies could potentially affect the case.
Related: OKX pleads guilty, pays $505M to settle DOJ charges
Later in February, Smith changed his plea to guilty and said he took part in the alleged $200 million crypto fraud scheme. Nagy is at large and is believed to be in Russia.
SafeMoon filed for bankruptcy in December 2023, a month after it was hit with twin cases from the SEC and DOJ. It was also hacked in March 2023, with the hacker agreeing to return 80% of the funds.
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