Lib Dem leader Ed Davey refuses six times to say whether coalition-era austerity was a mistake

Published

11 months ago

June 10, 2024

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Sir Ed Davey has refused six times to say whether austerity was a mistake in an interview with Sky News.

The Liberal Democrat leader also specifically denied that the austerity policies his party implemented alongside the Conservatives were to blame for the current crisis facing the NHS – which he is promising to “save” if his party wins power on 4 July.

In an interview with Sky News deputy political editor Sam Coates, he said the “real, big problems” facing the health service began under the Conservatives in 2015, when the coalition between David Cameron and Nick Clegg came to an end.

But challenged on whether the reorganisation of the NHS that happened on his watch was to blame for the current crisis facing the health service, Sir Ed said: “I think the Conservatives have been in power for last nine years and they failed.”

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The Lib Dems, led by Nick Clegg, entered into a coalition with David Cameron’s Conservatives in the 2010 election until the latter secured a slim majority in the subsequent 2015 election.

During that time, the coalition implemented austerity policies that slashed public expenditure following the 2008 financial crisis, with the NHS one of a number of services hit.

Analysis: Why Lib Dems’ manifesto is far less ambitious than previous one

A King’s Fund report in April found the health service had “declined since 2010, as a result of much lower funding increases, limited funds for capital investment and neglect of workforce planning”.

A number of Lib Dem politicians – including former business secretary Sir Vince Cable and former leader Jo Swinson – have expressed regret for austerity and conceded that it may have cost them votes in the 2015 election, when the party was reduced to just eight MPs.

In her conference speech in 2018, Ms Swinson – who was a junior minister in the coalition government – told Lib Dem members: “Negotiating with the Conservatives meant compromise and some of those compromises sucked. We should have done more.”

Manifesto to ‘save’ the NHS

Sir Ed has put the pledge to “save” the NHS and fix social care at the heart of his election manifesto, which was published today.

The party leader said the Liberal Democrats would spend £9bn fixing the health and social care system, including plans to recruit 8,000 more GPs, the right to see a GP within seven days, and a boost cancer survival rates.

He said it was “a manifesto to save the NHS”.

But asked by Coates whether such promises to fix the NHS and social care were needed only to repair issues caused by the coalition, Sir Ed argued his party pushed for measures on care for the elderly and disabled people when in office, but the Tories “broke their promises”.

“When the Tories were by themselves, they took an absolute axe to some of the poorest people in our country, and that was absolutely shocking,” he said.

“And I am really proud that we managed to stop them for so long.”

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Pushed again over his refusal to say if he endorsed the decisions made by the coalition, the Lib Dem leader replied: “Well, I’m telling you Sam, I fought Conservatives every day and in this election I’ve made it clear there is no way we will allow the Conservatives back into office.

“They are out of ideas and excuses and need to be out of office. Every vote for a Liberal Democrat will be a vote for a great champion to put forward those policies to rescue our NHS and to get the Conservatives out of government.”

As well as the NHS, social care has also been placed front and centre of Sir Ed’s pitch to voters.

The Liberal Democrat leader has spoken candidly of his experience caring for his disabled son and, as a child, looking after his terminally ill mother.

He said his manifesto is the first in the party’s history to include a dedicated chapter on care, with pledges including free personal care for the elderly and the disabled and a higher salary for care workers, set £2 above the minimum wage.

Politics

UK to require crypto firms to report every customer transaction

Published

2 hours 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.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Politics

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

Published

6 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.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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.”