Nigel Farage is “terrorising” the Conservative Party and Rishi Sunak is afraid to take him on, Labour grandee Lord Mandelson has told Sky News.
The former cabinet minister and spin-doctor, who masterminded Tony Blair’s 1997 landslide win, argued the job of the Tory leader should be to stand up to Mr Farage and Reform UK rather than seeking to appease them.
Trying to outflank Mr Farage had only served to embolden the maverick politician and make him stronger, the peer said as he appeared on Sunday Morning With Trevor Phillips.
The decision of the former UKIP leader to contest a Tory-held seat at the election and take the reins at Reform UK has exacerbated Mr Sunak’s electoral woes, threatening to split the vote and the party.
Fresh polls gave an even bleaker outlook for the Conservatives, with one indicating the party on course to pick up just 72 seats.
It led Mr Farage, who is set to launch Reform’s manifesto on Monday, declare his party was now the opposition to Labour.
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Conservatives: We’re fighting for every vote
Meanwhile, cabinet minister Mark Harper has repeated his party’s warning that a vote for Reform UK would give Labour “a very large majority” and a “blank cheque” in office.
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As well as failing to distance himself from his predecessors – Boris Johnson and Liz Truss – Mr Sunak had made an error in vying to “outflank” Reform UK, argued Lord Mandelson.
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The peer said: “He’s doing so by appeasing them, by sort of throwing red meat, to Farage, which is not outflanking him. It’s just making him bolder. It’s just making him, frankly, stronger than Sunak. And therefore the tactics, the strategy has been got wrong, in my view, by Sunak, right from the beginning.
“But I think the reason he doesn’t take on Farage is because he sees him as a stronger politician and frankly, he’s afraid to take him on.”
On Mr Farage himself, Lord Mandelson said: “I think he terrifies the Conservative Party. I mean, he terrified David Cameron into conceding a referendum on our membership of the European Union, and now he’s doing the same, to Sunak. He terrorises them.
“Now you, you’ve got to stand up to terrorists you know, in this world and including in, in British domestic politics.”
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He added: “But Farage is an effective politician. There’s no point in denying it. He has a clear message. It’s not one that I happen to agree with in any respect at all.
“I think that Farage is much better at, you know, taking people down and destroying things than he is in offering a constructive, clear alternative.
“But be that as it may, the job of the leader of the Conservative Party is to take that on and show an alternative to the right, not to appease it.”
He later clarified: “I’m not saying he’s literally a terrorist. I’m saying he’s terrorising the Conservative Party.”
The two-child benefit cap has been a raw nerve for the Labour party since long before they came to power.
It’s become increasingly exposed amid internal party divisions over the government’s forthcoming welfare reforms, which are expected to push another 250,000 people into poverty, including 50,000 children.
Lifting the cap could raise up to 350,000 children out of poverty, according to the Institute for Fiscal Studies.
Image: The PM has previously suggested he’d like to lift the two-child benefit cap. Pic: Reuters.
But in a bid to show he was still committed to tackling the problem – while also kicking the ball down the road – Keir Starmerset up a child poverty taskforce, which promised to look at policies to tackle the “root causes” of the issue. That taskforce was due to report in the “spring” – which should be any day now.
But now, as first reported by the Guardian, the Department of Work and Pensions has confirmed it has decided to push back publication until later in the year, to ensure its “ambitious child poverty strategy” can deliver “fully funded measures”.
I understand that means the announcements will be made as part of the autumn statement – and it looks like the prime minister is now backing a change on the cap.
Image: Welsh First Minister Eluned Morgan met with Sir Keir on Friday. Pic: Eluned Morgan/X
Welsh First Minister Eluned Morgan told Sky News on Friday that the issue was brought up by “lots” of attendees of a meeting of regional mayors and first ministers, and the PM said they’d “like to see some movement – it’s about when and how”.
Scrapping the two-child benefit cap is seen by charities as the most effective way of pulling children out of poverty. But doing so will come at a cost, estimated to be some £2.5bn.
The prime minister has previously suggested he would like to lift the cap, but only when the fiscal situation allows. This promise was one of the government’s key public declarations of responsibility to the financial markets.
But this week he’s signalled he’s prepared to U-turn overthe other flashpoint policy – means testing the winter fuel allowance.
Under pressure from concerned MPs and activists riled up by thousands of angry doorstep conversations during their recent local election debacle, he is prepared to move.
He’s justified that change by arguing it was right to look again at the measure “as the economy improves”. But if that’s the case – why not do the same for children as for pensioners?
Charities estimate the two-child benefit cap pushes another 100 children into poverty every day, which would affect another 20,000 by the time of the budget.
Some Labour MPs are prepared to criticise the delay publicly. Neil Duncan-Jordan told me: “Millions of families will be devastated by the delay in tackling the scandal of child poverty… the need to act is now.”
But others, including Helen Barnard, from the Trussell Trust charity, have argued the delay might not be such a bad thing, posting on X: “This may be good news. Better a delayed child poverty strategy with measures to really protect children from hunger and hardship than one hitting the deadline but falling short on substance.”
It’s unclear how the government would fund such a change. This week, former PM Gordon Brown told Sky News’ Sophy Ridge they should be looking at a gambling tax to find the cash.
By giving ground now on winter fuel and hints on child benefit, Sir Keir may be hoping to head off the fermenting rebellion on his planned welfare cuts.
But those MPs angry about welfare cuts are also incensed about child poverty – and today’s news will likely only embolden their resistance.
President Donald Trump is facing scrutiny after speaking at a private event for top investors in his $TRUMP memecoin while standing behind a lectern emblazoned with the official presidential seal — a move that may violate federal law.
According to US law, the presidential seal cannot be used in any manner that could imply government approval or sponsorship. Violators can face fines or up to six months in prison.
Trump, who arrived at the club aboard a military helicopter, praised attendees and took aim at the Biden administration’s crypto stance.
When asked about potential conflicts of interest, White House Press Secretary Karoline Leavitt said the president’s involvement was personal. “It is not a White House dinner,” she told reporters. “It’s not taking place here at the White House.”
Trump features presidential seal at private properties
This isn’t the first time Trump has featured the presidential seal at his private properties. Forbes has previously reported its use as golf markers at several Trump-owned clubs.
In a May 22 letter to the Justice Department, 35 House members asked the public integrity section acting chief, Edward Sullivan, to launch an inquiry over the memecoin dinner to determine whether it violated the federal bribery statute or the foreign emoluments clause of the US Constitution.
Under the emoluments clause, a US president is barred from accepting any gift from a foreign state without the approval of Congress.
Bloomberg reported that a majority of the attendees at the memecoin dinner were likely foreign nationals based on their connections to crypto exchanges.
“US law prohibits foreign persons from contributing to US political campaigns,” said the letter. “However, the $TRUMP memecoin, including the promotion of a dinner promising exclusive access to the President, opens the door for foreign governments to buy influence with the President, all without disclosing their identities.”
Trump’s embrace of crypto marks a sharp turn from his skepticism during his first term. The $TRUMP memecoin, launched earlier this year, peaked at $74.34 before falling to $14.44 by May 22.
Sun, who reportedly invested over $40 million in $TRUMP tokens and spoke at the dinner, also has deep ties to Trump’s crypto ventures. He’s the top backer of World Liberty Financial, a Trump-affiliated firm currently under regulatory scrutiny.
A US federal judge has vacated key fraud and manipulation convictions against Avraham Eisenberg, the trader at the center of the case involving a $110 million exploit of the decentralized exchange Mango Markets.
On Friday, US District Judge Arun Subramanian ruled that the evidence presented at trial failed to support the jury’s conclusion that Eisenberg made materially false representations to Mango Markets.
The decision vacates Eisenberg’s convictions for commodities fraud and market manipulation and acquits him of a third charge, significantly weakening the government’s case.
Eisenberg, a self-proclaimed “applied game theorist,” was convicted in 2024 for artificially inflating the price of Mango’s MNGO token by over 1,300% in a matter of minutes and using the resulting gains as collateral to withdraw $110 million in crypto assets from the platform.
The Justice Department argued that he deceived Mango’s smart contract-based lending system, but Eisenberg’s defense maintained that he merely exploited poorly designed, permissionless code — without making any false representations.
Judge Subramanian agreed, writing that “Mango Markets was permissionless and automatic,” meaning the system couldn’t be deceived in a legal sense. “There was insufficient evidence of falsity,” the judge added, siding with Eisenberg’s interpretation of DeFi mechanics.
US judge siding with Eisenberg on nature of the exploit. Source: Bwbx.io
The judge also rejected prosecutors’ argument that the case should be heard in New York. Eisenberg was in Puerto Rico at the time of the trades, and the court found that no meaningful activity tied to the alleged crime occurred in New York.
The DOJ had cited a Poughkeepsie-based Mango user and a third-party vendor in Manhattan, but the judge ruled these were not enough to establish proper venue.
The US government must now decide whether to refile the vacated charges, though the Trump administration has recently signaled a reduced focus on crypto enforcement. Eisenberg still faces civil suits from both the SEC and CFTC.
While this ruling clears Eisenberg in the Mango Markets case, he remains behind bars.
In a separate case, Eisenberg was sentenced to nearly four years in prison on May 1 after pleading guilty to possessing child pornography — a charge stemming from unrelated evidence uncovered during his arrest.
In December 2022, US federal law enforcement authorities arrested Eisenberg in Puerto Rico. FBI officials charged the hacker with one count of commodities fraud and one count of commodities manipulation.
A jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The defense argued that the exploit was not a cybercrime and represented a “successful and legal trading strategy.”