After months of delay, parliamentary bickering and legal challenges, Rishi Sunak’s Rwanda bill is set to become law.
Legislation for the prime minister’s controversial plan to deport asylum seekers to the landlocked African country cleared parliament last night after a lengthy battle.
The policy has been plagued by setbacks since it was first announced two years ago, with thousands of people arriving on Kent beaches aboard small boats all the while.
So what is the Rwanda bill and why is it so controversial? Here are some of the key questions, answered.
What is the Rwanda asylum plan?
Rishi Sunak’s promise to “stop the boats” is one of five pledges he has staked his premiership on.
Key to this is the Rwanda scheme, which would involve some asylum seekers being sent to Rwanda to have their asylum claims processed there.
If successful, they can be allowed to stay in Rwanda or seek asylum in another country. But they would not be able to apply to return to the UK.
Ministers say the policy will act as a deterrent to people thinking of travelling to the UK “illegally” (though whether or not crossing the English Channel in a small boat is actually illegal is complicated).
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Image: A group of people are brought to Dover onboard a Border Force vessel. Pic: PA
This would be more than two years since the first flight attempted under the deal was grounded amid last-minute legal challenges.
No asylum seekers have yet been sent to Rwanda.
While he refused to go into “sensitive” operations details on Monday, Mr Sunak did outline a number of measures the government was taking to prepare for the first flights to take off.
He said there were now 2,200 detention spaces and that 200 dedicated caseworkers had been trained to process claims quickly.
Around 25 courtrooms have been made available and 150 judges will provide 5,000 sitting days, he added.
Mr Sunak also said there were 500 “highly trained individuals ready to escort illegal migrants all the way to Rwanda, with 300 more trained in the coming week”.
In November, the Rwanda plan was ruled unlawful by the UK’s Supreme Court, which said those being sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.
Is Rwanda a safe country?
Much of the debate around the policy – putting aside differing views on whether it is effective or ethical – centres around the question of whether Rwanda is considered a “safe country”.
The government insists it is, although it’s worth pointing out that the UK granted asylum applications to 15 people from Rwanda last year.
According to Human Rights Watch, critics of the ruling political party in Rwanda have been “arrested, threatened, and put on trial”. Some said they were tortured in detention, the organisation added.
Image: Rishi Sunak’s promise to ‘stop the boats’ is one of five pledges he has staked his premiership on
Who will be affected by the Rwanda scheme?
The Home Office plans to use the agreement with Rwanda to remove people who make dangerous journeys to the UK and are considered “inadmissible” to the UK’s asylum system – and will include people who have arrived irregularly since 20 July last year.
People whom the Home Office wishes to transfer to Rwanda will be identified and referred to the Rwandan authorities on a case-by-case basis, after an initial screening process following arrival in the UK, the government has said.
Although the agreement focuses on asylum seekers, under the treaty people who have made unauthorised journeys to the UK but not claimed asylum can be relocated to Rwanda as well.
On Monday, the Rwanda bill finally passed through the Commons and Lords and is now set to become law.
The legislation was introduced by the government in the wake of November’s Supreme Court ruling which had declared that Rwanda was not safe for refugees.
Since then, the government has signed a new treaty with Rwanda which it says contains additional safeguards for people relocated.
With the new bill, parliament was asked to declare that Rwanda must be treated as safe in order to render the relocation plan lawful in UK domestic law.
What happens now?
The bill is now headed for royal assent after passing through parliament, but it’s likely to still face various challenges.
Campaigners opposing the plans, and individual asylum seekers who are told they are to be sent to Rwanda, could look to take the government to court again in an attempt to stop flights.
Whether any legal challenges could be successful in light of the new law remains to be seen.
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8:48
Rwanda plan an ‘expensive gimmick’
How much has this all cost?
A lot.
An investigation by Whitehall’s spending watchdog said the cost of the Rwanda scheme could rise to half a billion pounds, plus hundreds of thousands more for each person deported.
The government has refused to say how much more money, on top of the £290m already confirmed, that the UK had agreed to pay Rwanda under the deal. However, a National Audit Office report revealed millions more in spending including £11,000 for each asylum seeker’s plane ticket.
What are people opposed to the Rwanda asylum plan saying now the bill was passed?
The passing of the bill has sparked fresh condemnation from charities and other organisations.
Amnesty International said it will “leave a stain on this country’s moral reputation”.
Sacha Deshmukh, Amnesty International UK’s chief executive, added: “The bill is built on a deeply authoritarian notion attacking one of the most basic roles played by the courts – the ability to look at evidence, decide on the facts of a case and apply the law accordingly.
“It’s absurd that the courts are forced to treat Rwanda as a ‘safe country’ and forbidden from considering all evidence to the contrary.”
A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.
The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.
If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.
The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.
Stephen Miran speaking at a conference in New York on Friday. Source: BCVC
“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.
“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”
Organizations, including the International Monetary Fund, have warned that stablecoins pose a threat to traditional financial assets and services, as they could potentially compete for customers. US banking groups have also urged Congress to tighten oversight of stablecoins with yield, arguing they could attract would-be bank users.
During his speech, Miran praised the GENIUS Act for setting out clear guidelines and consumer protections, as he indicated that the regulatory framework will play a key role in spurring broader adoption of stablecoins.
“While I tend to view new regulations skeptically, I’m greatly encouraged by the GENIUS Act. This regulatory apparatus for stablecoins establishes a level of legitimacy and accountability congruent with holding traditional dollar assets,” he said, adding:
“For the purposes of monetary policy, the most important aspect of the GENIUS Act is that it requires U.S.-domiciled issuers to maintain reserves backed on at least a one-to-one basis in safe and liquid US dollar–denominated assets.”
The crypto market could soon see some much-needed relief after the US Senate reached an agreement on a three-part budget deal to end the government shutdown, Politico reports.
Pending legislation to fund the US government has more than enough support to pass the 60-vote threshold, Politico reported on Sunday, citing two people familiar with the matter.
It was Republican Senate Majority Leader John Thune’s 15th attempt to win Democratic support for a House-approved bill, putting the record 40-day government shutdown within reach of being lifted.
An official vote is still needed to finalize the agreement.
Ongoing uncertainty over when the US government would reopen has been a key factor holding back Bitcoin (BTC) and the broader crypto market from mounting a rebound.
Bitcoin initially rallied to a new high of $126,080 six days into the government shutdown on Oct. 6, but has since fallen over 17% to $104,370, CoinGecko data shows.
Bitcoin’s fall over the past month saw it drop by double-digit percentage points on Oct. 10 after US President Donald Trump’s announcement of 100% tariffs on China sent shockwaves throughout the markets.
Bitcoin’s change in price since Oct. 1. Source: CoinGecko
Bitcoin rallied 266% after last government shutdown lifted
The last US government shutdown occurred between late December 2018 and late January the following year in Trump’s first term.
After it ended on Jan. 25, 2019, Bitcoin rose over 265% from $3,550 to $13,000 over the next five months.
Prediction markets back shutdown to end this week
Bettors on prediction market Polymarket are backing that the government shutdown will be lifted on Thursday, with the market showing a 54% chance it will happen between Tuesday and Friday.
Amid serious concerns over the editorial mistakes made by the BBC, the downfall of its leaders has been greeted with undisguised glee by many on the right of British politics.
Former prime minister Liz Truss was quick off the mark to retweet gloating posts from Donald Trump and White House press secretary Karoline Leavitt with clapping emojis.
Ms Truss argued not just for the abolition of the licence fee, but for the end of nationalised broadcasting altogether.
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Her former cabinet colleague Suella Braverman has also called for the licence fee to be scrapped.
It’s an idea long advocated by Nadine Dorries during her time as culture secretary. The recent Reform convert is particularly pessimistic about the BBC’s future – telling me she believes its “core bias” has worsened in recent years.
“I’m afraid the resignation of Tim Davie will change nothing,” she said. “Under this Labour government overseeing the new appointment… it will probably get worse.”
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2:17
Why ‘Teflon Tim’ resigned from BBC
All three politicians were close allies of Boris Johnson, who has been instrumental this week in piling the pressure on the BBC.
He dramatically threatened in the Daily Mail to boycott the licence fee until Tim Davie explained what happened with the Trump Panorama documentary – or resigned.
Shadow culture secretary Nigel Huddleston told Sky News “we want them to be successful” – but he and his boss Kemi Badenoch are calling for wide-ranging editorial reforms to end what they describe as “institutional bias”.
Their list calls for changes to BBC Arabic, its coverage of the US and Middle East, and “basic matters of biology”, by which they mean its stories on trans issues.
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0:47
‘Catastrophic failure’ at BBC
The irony of demanding editorial changes from a supposedly independent organisation dealing with allegations of bias has been lost in the furore.
Similarly, Nigel Farage is calling for the government to appoint a new director-general from the private sector who has “a record of coming in and turning companies and cultures around”.
As part of its editorial independence, the appointment of the BBC’s next editor-in-chief is meant to be entirely down to its own independent board – and out of the hands of ministers.
The government’s own response to the scandal has therefore been relatively muted. In a statement, Culture Secretary Lisa Nandy thanked Mr Davie for his long service to public service broadcasting – and paid tribute to the BBC as “one of our most important national institutions”.
Image: Tim Davie and Deborah Turness. Pics: PA
Before the news of the resignations broke, she had been expressing her “complete confidence” in how the BBC’s leadership were dealing with the “serious allegations” described in the leaked memo from Michael Prescott, a former external adviser to the corporation’s editorial standards committee.
The departure of Mr Davie and the CEO of BBC News Deborah Turness just hours later seemed to be something of a shock.
A more detailed government response is sure to come when parliament returns from recess tomorrow.
The Culture Media and Sport Committee of MPs – which has played an active role in the scandal by writing to the BBC chairman and demanding answers – is due to receive its response today, which is expected to include an apology for the Panorama edits.
Its chair Dame Caroline Dinenage described Mr Davie’s resignation as “regrettable” but said that “restoring trust in the corporation must come first”.
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1:29
Ex-Panorama staffer: ‘Worst crime imaginable’
So far, the only British political leader prepared to mount an outspoken defence of the BBC is Sir Ed Davey.
The Liberal Democrat argues that seeing the White House take credit for Mr Davie’s downfall – and attacking the BBC – “should worry us all”.
He’s called on the PM and all British political leaders to stand united in “telling Trump to keep his hands off it”.
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4:13
What did the BBC do to anger Trump?
Given the diplomatic contortions Sir Keir Starmer has gone through to develop close relations with the current president, this seems entirely unlikely.
But for a prime minister already juggling an overflowing in-tray of problems, controversy over the national broadcaster as the government prepares to enter negotiations about renewing its charter for the next decade is another political tripwire in waiting.