Labour denies railways will be given ‘lower priority’ under renationalisation plans – as Tories warn of ‘wildcat strikes’

Published

1 year ago

April 26, 2024

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Labour has denied the railways will be given “lower priority” if they are brought back into public ownership as the party pledged to “sweep away” the current “broken” model.

Shadow transport secretary Louise Haigh promised to deliver the biggest shake-up to rail “in a generation” by establishing the long-delayed Great British Railways (GBR) organisation and bringing routes back into public ownership, if Labour forms the next government.

In a speech, Ms Haigh also pledged to establish a “best-price ticket guarantee” for travellers, offer automatic “delay repay” schemes and make digital season tickets available across the network.

But the proposals have been attacked by the Conservatives, who have claimed Labour has no plan to pay for them.

Sam Coates, Sky News’ deputy political editor, asked Ms Haigh how she was going to avoid the “trap” of British Railways – the former national railway system that was privatised in the 1990s – which was forced to compete for central government cash.

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“How are you going to make sure that you don’t end up falling into the same old trap as British Railways, where effectively, to get train upgrades, you are competing for cash with schools and hospitals, and given money is going to be very tight, aren’t the trains actually going to be a lower priority?” he asked.

Ms Haigh admitted the UK was in a “very constrained public spending environment” but said the reforms the party was setting out would deliver “significant efficiencies and cost savings for the taxpayer”.

“As I’ve said earlier, the taxpayer simply can’t afford to continue with the current broken model that is throwing good money after bad and wasting very, very stretched taxpayers’ money,” she argued.

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The shadow transport secretary also said she hoped she would be able to “reinvest some of those savings” created by the new efficiencies in the system but admitted she had not struck an “agreement” with Rachel Reeves, the shadow chancellor, “that all of it would be”.

GBR was first proposed in 2021 after a review of the railways, with the aim of simplifying the franchise system and rebuilding passenger numbers after they fell dramatically during the COVID pandemic.

The proposed public body promised to subsume Network Rail’s responsibility for track and stations, as well as taking charge of ticketing, timetables and network planning.

But despite getting backing from Boris Johnson and his ministers, its establishment has faced continuous delays and the organisation has yet to see the light of day.

Labour is now pledging to get GBR up and running if they win the next election, with some additional pledges of their own.

The party said the body, which would be run by industry experts rather than government officials, would end the “fragmentation, waste [and] bureaucracy” of the current network.

And it would “stop profits leaking out to private operators” by taking charge of passenger lines when franchises run out – leading eventually to the whole passenger network being publicly owned.

Labour said this method would prevent taxpayers from having to cover any compensation to the operators that would be due if they renationalised the railways immediately.

The party also pledged to create a new independent watchdog called the Passenger Standards Authority to ensure GBR keeps up its standards.

And it committed to introducing a statutory duty on GBR to promote the use of rail freight – still owned by private firms – to cut carbon emissions and reduce lorry traffic.

Plan may be popular – but will Treasury sign off on the cash?

Sam Coates

Deputy political editor

@SamCoatesSky

Labour’s plan to allow the railway companies to come back into public ownership is easy to understand, will be overwhelmingly popular with the public and provides an easy dividing line with the Tories.

But will it leave the railways better off?

One key argument advanced for scrapping the old British Rail under John Major’s government in the 1990s in favour of privatisation was that it would make investment in new and upgrading trains much easier.

Under the old system, in effect the trains were competing for cash with schools and hospitals – and too often found themselves losing out.

An incoming Labour government – if we get that far – would not only find money tight, but have committed to eyewatering fiscal rules restricting their room for spending.

So how much of a priority will modernisation be?

Louise Haigh, shadow transport secretary, says that the current system doesn’t work because too much money is being wasted – including on shareholder dividends, the payments to the owners of the private companies – and this needs to change.

But when I pressed her, she revealed that she has not secured any promises from Rachel Reeves, the shadow chancellor, that efficiencies found on the railways will be reinvested in the service.

The danger is that the Treasury nabs that money and spends it on public services they deem a bigger priority.

Even the rail companies themselves say things need to change. Whether this new alternative improves services for passengers remains to be seen.

The proposals have won the backing of Keith Williams – one of the experts behind the rail review – who recommended the creation of GBR three years ago.

He said its creation would “deliver a better railway for passengers and freight”, adding: “Running a better railway and driving revenue and reducing costs will deliver economic growth, jobs and housing by delivering better connectivity.”

But the Conservative Transport Secretary Mark Harper said Labour’s plan was “unfunded” and that that there was “nothing in it to improve services for passengers”.

“The other thing that people need to understand is what is the damage that will be done by Angela Rayner’s plan to reverse all our trade union legislation.

“You’re going to go back to French style, wildcat strikes with no notice.

“It’s not surprising the unions have welcomed Labour’s plans – it puts them back in the driving seat.”

Politics

UK to require crypto firms to report every customer transaction

Published

1 hour ago

May 18, 2025

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UK to require crypto firms to report every customer transaction

United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026 as part of a broader effort to improve crypto tax reporting, the UK government said.

Everything from the user’s full name, home address and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved, the UK Revenue and Customs department said in a May 14 statement.

Details of companies, trusts and charities transacting on crypto platforms will also need to be reported.

Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user. The UK Revenue and Customs department said it would inform companies on how to comply with the incoming measures in due course.

However, UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness.

The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.

The changes reflect the UK government’s aim to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection.

UK Chancellor Rachel Reeves also introduced a draft bill in late April to bring crypto exchanges, custodians and broker-dealers within its regulatory reach to combat scams and fraud.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” Reeves said at the time.

A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024 — a significant increase from the 4% reported in 2021.

UK’s approach contrasts with EU’s MiCA

The UK’s move to integrate the crypto rules into its existing financial framework contrasts with the European Union’s approach, which introduced the new Markets in Crypto-Assets Regulation framework last year.

According to the MiCA Crypto Alliance, one key difference is that the UK will allow foreign stablecoin issuers to operate in the UK without needing to register.

There will also be no cap on stablecoin volumes, unlike the EU’s approach, which may impose controls on stablecoin issuers to manage systemic risks.

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Politics

Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts

Published

5 hours ago

May 18, 2025

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Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder HK$118 million ($15 million), local news outlets reported.

The syndicate was dismantled on May 15, resulting in the arrest of nine men and three women in mainland China and Hong Kong.

The suspects allegedly recruited others to open bank accounts to receive proceeds from fraud cases, which were then converted into crypto at crypto exchange shops to launder the illicit funds, Hong Kong Commercial Daily reported on May 17.

The criminal organization rented a residential unit in the Hong Kong neighborhood of Mong Kok to plan and carry out its money laundering activities. Of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Caught in action

The bust followed police surveillance on May 15, when two recruits left the syndicate’s Mong Kok base — one visiting a bank, the other an ATM — before both went to convert the cash into crypto at a crypto exchange shop in the neighborhood of Tsim Sha Tsui.

Police arrested both individuals on the spot, seizing around HK$770,000 ($98,540) in cash before the funds could be laundered. The other 10 individuals, aged between 20 and 41, were arrested soon after.

Police seized approximately HK$1.05 million ($134,370) in cash, over 560 ATM cards, multiple mobile phones, bank documents and records related to crypto transactions.

Senior Inspector Tse Ka-lun of Hong Kong’s Commercial Crime Bureau claimed that the individuals often used bank accounts from their friends and family to launder the stolen funds.

Hong Kong reported a 12% year-on-year increase in fraud reports in 2024, with authorities making more than 10,000 fraud-related arrests. Of those arrests, around 73% involved individuals who held stooge bank accounts.

The crackdown comes as Hong Kong continues to roll out its crypto regulatory framework to support local innovation, protect consumers and establish itself as a crypto hub.

Hong Kong’s Securities and Futures Commission introduced new rules for crypto exchanges offering staking services in April. Two months earlier, the securities regulator rolled out a roadmap to improve market access, optimize compliance, expand product offerings, strengthen crypto infrastructure and foster relationships with industry players.

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Politics

Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Published

9 hours ago

May 17, 2025

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.

The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.

The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.

Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.

If agreed, the deal will be the third in two weeks, following trade agreements with India and the US.

Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.

“More money in the pockets of British working people, achieved through striking deals not striking poses.

“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”

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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.

Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.

“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”