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The race for Number 10 begins in earnest today following Rishi Sunak’s decision to call a snap summer general election in a high stakes move that could bring to an end his party’s 14 years in government.

The prime minister took the gamble of his political life when he announced that he will go to the country on 4 July – much sooner than had been expected and while the Tories are languishing behind Labour in the opinion polls.

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Outlining his decision in the pouring rain outside of Downing Street, a sodden Mr Sunak said that “now is the moment for Britain to choose its future” as he claimed his party could be trusted to lead the country in a time of global instability.

In response, Labour leader Sir Keir Starmer told voters: “Together we can stop the chaos, we can turn the page, we can start to rebuild Britain.”

A July election is earlier than many in Westminster had expected, with a contest in October or November widely thought to have been more likely.

The move has surprised and even upset some within the Conservative ranks, with senior figures telling Sky News’ political editor Beth Rigby the decision is “madness” given Labour’s 20 point lead in the polls.

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Rishi Sunak delivers a speech calling for a general election, outside Number 10 Downing Street
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Rishi Sunak delivers a speech calling for a general election.

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Sky News election announcement

Some Tory MPs publicly expressed their concerns, with backbencher Tracey Crouch posting on X: “I am feeling quite emotional about all this.

“I was anticipating an autumn departure from Parliament and still had important issues to raise on behalf of my constituents between now and then. I am sad that I won’t now get to do that.”

The election timing allows just two days for “wash-up”, when the government finalises non-contentious pieces of legislation before parliament is dissolved.

It means that some of the Conservative’s flagship plans, such as a ban on smoking, leasehold reforms and improvements to renters’ rights might be left to the next government.

Mr Sunak is said to have made the calculation that little would change between now and November.

Housing Secretary Michael Gove is said to have been among those who backed the gamble during emergency cabinet discussions, telling the prime minister: “Who dares wins. And you dared, and you’re going to win.”

The announcement came after the Office for National Statistics said inflation slowed to 2.3% in April, down from 3.2% in March.

In a sign of what the election will be fought on, the prime minister made the economy a key element of his pitch to the nation, saying the inflation figures are “proof that the plan and priorities I set out are working”.

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He also highlighted Vladimir Putin’s invasion of Ukraine, the tensions in the Middle East relating to the Israel-Hamas conflict, the threat of China and migration “being weaponised by hostile states to threaten the integrity of our borders”.

“These uncertain times call for a clear plan and bold action to chart a course to a secure future,” he said.

Later, at a campaign rally that saw Sky News’ Darren McCaffery escorted out, Mr Sunak acknowledged he was the underdog but suggested Labour was acting like it had already won.

Prime Minister Rishi Sunak speaking at a General Election campaign event at ExCeL London, in east London, after calling a General Election for July 4. Picture date: Wednesday May 22, 2024. PA Photo. See PA story POLITICS Election. Photo credit should read: Stefan Rousseau/PA Wire
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Prime Minister Rishi Sunak speaking at a General Election campaign event at ExCeL London. Pic: PA

“Labour want you to think that this election is over before it has even begun.

“But we are going to fight every day for our values and our vision and the British people are going to show Labour that they don’t take too kindly to being taken for granted.”

But Labour leader Sir Keir said: “If they get another five years they will feel entitled to carry on exactly as they are. Nothing will change.”

He promised a “new spirit of service”, putting the country before party interests.

“I am well aware of the cynicism people hold towards politicians at the moment, but I came into politics late, having served our country as leader of the Crown Prosecution Service, and I helped the Police Service in Northern Ireland to gain the consent of all communities.”

Pic: PA
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Pic: PA

Labour needs a swing of 12.5 percentage points just to win a majority of one – something even Sir Tony Blair did not achieve in his landslide victory of 1997.

But having transformed the party after its historic defeat in 2019, some pollsters believe Sir Keir could wipe out the Tories and be swept into power with as many as 400 seats.

If that happens it would be a remarkable turn of events compared to the last election, which saw the Conservatives under Boris Johnson win a thumping 80-seat majority.

That has since been slashed by a series of by-election losses, while repeated leadership elections and sleaze scandals have seen the Tories’ popularity plummet among voters.

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Millionaire former Tory donor defects to Reform

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Millionaire former Tory donor defects to Reform

Millionaire Tory donor Malcolm Offord has defected to Reform UK, saying he would be campaigning “tirelessly” to “remove this rotten SNP government”.

Nigel Farage announced the former Conservative life peer’s defection during a rally in the Scottish town of Falkirk, where regular anti-immigration protests have taken place outside the Cladhan Hotel – which is being used to house asylum seekers.

Mr Farage, Reform UK’s leader, said he was “delighted” to welcome Greenock-born Lord Offord to Reform, describing his defection as “a brave and historic act”.

He added: “He will take Reform UK Scotland to a new level.”

During a speech, Lord Offord, who previously donated nearly £150,000 to the Tories, said he would be quitting the Conservative Party and giving up his place in the House of Lords as he prepares to campaign for a seat in Holyrood in May.

The 61-year-old said he wanted to restore Scotland to a “prosperous, happy, healthy country”.

“Scotland needs Reform and Reform is coming to Scotland,” he told the rally.

Read more:
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Farage allegations are deeply shocking – but will they deter voters?

“Today I can announce that I am resigning from the Conservative Party. Today I am joining Reform UK and today I announce my intention to stand for Reform in the Holyrood election in May next year.

“And that means that from today, for the next five months, day and night, I shall be campaigning with all of you tirelessly for two objectives.

“The first objective is to remove this rotten SNP government after 18 years, and the second is to present a positive vision for Scotland inside the UK, to restore Scotland to being a prosperous, proud, healthy and happy country.”

The latest defection comes as Mr Farage finds himself at the centre of allegations of racism dating back to his time in school.

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Claims made against Nigel Farage

Sky News reported on Saturday that a former schoolfriend of Mr Farage claimed he sang antisemitic songs to Jewish schoolmates – and had a “big issue with anyone called Patel”.

Jean-Pierre Lihou, 61, was initially friends with the Reform UK leader when he arrived at Dulwich College in the 1970s, at the time when Mr Farage is accused of saying antisemitic and other racist remarks by more than a dozen pupils.

Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.

Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.

A Reform UK spokesman accused Sky News of “scraping the barrel” and being “desperate to stop us winning the next election”.

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.

On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.

Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.

“I am even more concerned that the proposal makes ESMA responsible for both the authorisation and the supervision of CASPs, not only the supervision,” she told Cointelegraph.

The proposal still requires approval from the European Parliament and the Council, which are currently under negotiation. 

If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission, a concept first proposed by European Central Bank (ECB) President Christine Lagarde in 2023.

Related: Bank of America backs 1%–4% crypto allocation, opens door to Bitcoin ETFs

EU plan to centralize licensing under ESMA creates crypto and fintech slowdown concerns

The proposal to “centralize” this oversight under a single regulatory body seeks to address the differences in national supervisory practices and uneven licensing regimes, but risks slowing down overall crypto industry development, Elisenda Fabrega, general counsel at Brickken asset tokenization platform, told Cointelegraph.

“Without adequate resources, this mandate may become unmanageable, leading to delays or overly cautious assessments that could disproportionately affect smaller or innovative firms.”

“Ultimately, the effectiveness of this reform will depend less on its legal form and more on its institutional execution,” including ESMA’s operational capacity, independence and cooperation “channels” with member states, she said.

Related: Grayscale Chainlink ETF draws $41M on debut, but not ‘blockbuster’

Global stock market value by country. Source: Visual Capitalist

The broader package aims to boost wealth creation for EU citizens by making the bloc’s capital markets more competitive with those of the US.

The US stock market is worth approximately $62 trillion, or 48% of the global equity market, while the EU stock market’s cumulative value sits around $11 trillion, representing 9% of the global share, according to data from Visual Capitalist.

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