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Scotland’s new first minister has told Sky News that the controversial gender recognition reforms “cannot be implemented.”

John Swinney, who became first minister this week, has faced questions over his stance on gender recognition after MSPs voted in 2022 to pass a bill to make it simpler for people to change their gender without having to obtain a medical diagnosis.

The UK government blocked the bill from being made into law and the Supreme Court rejected a request by the Scottish government for a judicial review.

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Asked if he would be fighting to push the bill through, Mr Swinney told Sky News: “The reality of the situation we face is that the Supreme Court has said that we can’t legislate in that area. We can’t take forward that legislation.”

His predecessor Humza Yousaf had previously suggested he wanted to work with the UK Labour Party to amend the laws ahead of the general election.

Scottish ministers said the scheme, dubbed self-ID, was aimed at making life easier for the trans community but women’s campaigners said it threatened their rights.

Mr Swinney made former leadership contestant Kate Forbes his deputy this week, which has caused some consternation within the party as she previously said she would have voted against gay marriage but would not seek to overturn the law if she became first minister.

But Mr Swinney sought to reassure the LGBT community, saying he had voted for gay marriage and introduced inclusive education into schools when he was education secretary.

Kate Forbes arrives at Bute House, Edinburgh, after newly appointed First Minister of Scotland John Swinney was sworn in at the Court of Session. Picture date: Wednesday May 8, 2024.
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Kate Forbes said she would have voted against gay marriage

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Mr Swinney said: “I think what’s the most important thing that I can see is that to LGBT people in our society, the Scottish government is on their side.

“We have been on their side and we will be on their side in the years to come.”

A Scottish government spokeswoman said: “The Gender Recognition Reform Bill was passed by the Scottish Parliament.

“If the UK government lifted its legal block – the section 35 order – it would become law.

“The problem is that the current UK government has said they will not.

“The Scottish government’s position is simple – UK government should lift their section 35 order.

“They have made clear however that they will not, and until they do, it is simply not legal to implement the legislation.”

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Independence ‘can be achieved in five years’

Mr Swinney also said he believes Scotland could split from the rest of the UK in five years thanks to Brexit and the cost of living crisis.

He told Sky News: “I think independence can be delivered in that timescale because the arguments for it are compelling.

“If we look at two of the biggest issues we face as a country in Scotland; the effect of the cost of living and the implications of Brexit.

“Both of those are major strategic factors that are doing severe economic and social damage to Scotland because of bad decisions taken in Westminster.

“And independence is the answer to that.”

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‘Independence can be delivered in five years’

He said Scotland was “forced out of the European Union against our will” as a majority in the country voted to remain.

“If we’d been an independent country, we will be able to take part in Europe and not have all the damaging disruption that we faced,” he added.

Mr Swinney was deputy first minister under Nicola Sturgeon, who was leader of the SNP and first minister from 2014 to 2023 when she stepped down.

Ms Sturgeon wanted to use the next general election as a de facto second referendum on independence after the Supreme Court ruled a vote cannot be held without the UK government’s consent – but it is yet to be seen what Mr Swinney favours.

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Chancellor admits tax rises and spending cuts considered for budget

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

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Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

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Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

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The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
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Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

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Crypto maturity demands systematic discipline over speculation

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Crypto maturity demands systematic discipline over speculation

Crypto maturity demands systematic discipline over speculation

Unlimited leverage and sentiment-driven valuations create cascading liquidations that wipe billions overnight. Crypto’s maturity demands systematic discipline.

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NYC mayor establishes digital assets and blockchain office

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NYC mayor establishes digital assets and blockchain office

NYC mayor establishes digital assets and blockchain office

The executive order creating the Office of Digital Assets and Blockchain Technology under the New York City government came three months before Eric Adams will leave office.

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