Becoming prime minister is a shock. Not so much the moment of being elected – any sensible democratic politician knows that opinion polls can be wrong and gets ready for all eventualities.
No incoming prime minister can ever be fully prepared for the demands of the job, placed on them from day one, when – among many other demands – they are taken aside to be briefed about their role in a nuclear war.
The process is particularly challenging in the UK because the change is so quick. There are no weeks of transition as in most other countries. Nobody else does it like us.
Image: Keir Starmer has no experience of government
As Tony Blair remarked to Alastair Campbell: “Imagine preparing for a new job by working flat out travelling the country for six weeks and then go a few nights without sleep.”
If this general election goes to usual form either Prime Minister Keir Starmer or Prime Minister Rishi Sunak will be installed in 10 Downing Street by lunchtime the day after the vote.
Neither of them will have had any sleep the night before, waiting for the declarations in their own constituencies into the small hours and then dealing with the fallout from the results elsewhere.
If he has stayed in touch with reality, Sunak would certainly be flabbergasted by victory, given the general expectation that he would lose.
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Re-election to the job of premier should hold no other surprises beyond trying to step around the elephant traps he has carefully dug for the next prime minister, assuming that it would not be him.
First-timer Starmer would face the challenge of taking on a job and lifestyle which only 56 people have ever experienced before.
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Becoming prime minister at an election with a change of governing party is even rarer. There have been 13 general elections in the last 50 years but only three handovers of power between Labour and the Conservatives.
Being a senior minister is not an adequate preparation for Number 10.
Gordon Brown was a hugely powerful chancellor of the exchequer for a decade who regarded himself as a co-prime minister, yet a few months after he took over the top job, a senior Brownite ruefully confessed to me: “We thought it was going to be like the Treasury only bigger. It isn’t. That was handling just one thing. As prime minister everything comes at you from all directions.”
Along with taking tea with Margaret Thatcher, the former finance minister also spent his honeymoon period dealing with terror attacks in London and Glasgow and unexpected summer flooding across England.
Unlike Harold Wilson, James Callaghan, Edward Heath, Thatcher, John Major, Theresa May, Boris Johnson, Liz Truss and Sunak, Starmer has never served in a government as a minister.
Image: Rishi Sunak campaigning
He shares this lack of experience with David Cameron and Blair, who had been in parliament for 14 years when he became prime minister and a shadow minister for 10.
Cameron had been an MP for nine years when elected prime minister, as would be the case for Starmer, who only became an MP in 2015.
Cameron already knew his way around government having worked as an aide in Conservative headquarters and for senior ministers.
Starmer likes to boast that he had a successful career as a lawyer before entering parliament. He believes that running the “big organisation” of the Crown Prosecution Service should be good preparation for the premiership.
Starmer also says he knows how to cope with a change of style because he switched from poacher as a defence barrister to gamekeeper as director of public prosecutions.
A prime minister who comes at a general election usually has to switch in a moment from all-out campaigning to managing a party, a government and a country.
Except for Cameron whose preparations benefitted from a hung parliament and five days of negotiations to set up the coalition with the Liberal Democrats.
At least general election-elected prime ministers start with a clean sheet of policies and with plenty of jobs to hand out.
Image: Tony Blair and Gordon Brown. Pic: PA
Blair admits “the disadvantage of a new government is lack of experience in governing” but he claims “it is also an advantage… we thought the unthinkable. We did the undoable.” His early gambits included shifting PMQs to one half-hour session a week and granting independence to the Bank of England.
This baptism of fire and new beginning perhaps explains why Thatcher, Blair and Cameron are the significant national leaders of recent years, who won re-election, rather than those who took over power by default of internal party machinations.
Sunak can never be a member but Starmer would have a chance to join this distinguished club, although he is circumscribed by the state of the economy and by the things which Tory campaigning has forced him to rule out.
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Incoming prime ministers depend heavily on the staff around them. Someone has to make preparations for government which could be only days away. A leader is occupied fighting an election campaign and must not be seen to be presumptuous or complacent about victory. Officials and even family members are slapped down if they slip saying “when” not “if” about winning.
Blair is credited with pulling off one of the most successful transitions thanks in large part to his team. His chief of staff Jonathan Powell and advisor David Miliband secretly drew up a plan in advance for the government’s first 100 days. Peter Mandelson and Alastair Campbell practically invented the arts of political spinning and media handling in this country. Anji Hunter and Sally Morgan had the delicate task of reaching out to the party and the outside world and managing the appointment of ministers and government advisors. Mistakes are sometimes made when handing out jobs, names may be mixed up, post-it notes dropped or mobile phones mislaid.
Starmer’s key decision in preparation for government was the controversial hiring of a widely respected senior civil servant as his chief of staff.
Image: Liz Truss. Pic: Reuters
He has made it clear that Sue Gray will take over as top dog from campaign director Morgan McSweeney from the moment of victory. Gray knows everyone in Whitehall after decades of working there. She is expected to oversee Olly Robbins replacing Simon Case as cabinet secretary. She will also have a decisive voice over the appointment of advisors and ministers.
In the past, shadow ministers have had more than a year for “access talks” about their plans with officials in relevant government departments. Sunak withheld permission for these to start until early this year and has now called a snap election, meaning Labour has had barely six months to prepare.
Some of those involved in getting MPs ready for government are worried they are not as ready as they should be. Starmer has shown that he can be ruthless and, if he does become prime minister, there are likely to be nasty shocks for some now assuming they will be ministers in government. Labour already have about 20 more “front bench” spokespeople than there are paid ministerial jobs in government.
In Blair’s case, Mandelson says the “real” and “important” reshuffle shake-out took place after a year in office.
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The head of government has other unavoidable duties. Blair had to cope with the death of Princess Diana within months of being elected. “Why me?” Truss asked of the death of Queen Elizabeth II just days into her premiership.
Before the state opening of parliament on 17 July, the next prime minister will have to represent the UK at NATO’s 75th anniversary summit in Washington between 9 and 11 July with Ukraine at the top of the agenda. A week later he will host the European Political Community at Blenheim Palace – this organisation came into existence after Brexit to improve relations between 50 European nations.
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Prime ministers make what come to be seen as unforced errors – such as Truss’s mini-budget, Cameron’s Brexit referendum and Blair’s invasion of Iraq. They also have to cope with unforeseen events beyond their control, such as the COVID-19 pandemic.
The shocks of the first few weeks as prime minister are likely to be dwarfed by the shocks in the years to come. However hard they have tried to prepare, whether or not they are ready, the job will soon find out a prime minister’s strengths and weaknesses.
Michael Selig, who serves as chief counsel for the crypto task force at the US Securities and Exchange Commission, faced questions from lawmakers on the Senate Agriculture Committee for his nomination to be the next chair of the Commodity Futures Trading Commission.
On Wednesday, Selig appeared before the committee and addressed questions and concerns from lawmakers on both sides of the aisle regarding his potential conflicts of interest, policy views and experience as the next CFTC chair, succeeding Caroline Pham.
In his opening statement, Selig said he had advised a wide range of market participants, including digital asset companies, and warned against the agency taking a regulation-by-enforcement approach, stating that it would drive companies offshore.
“We’re at a unique moment in the history of our financial markets,” said Selig. “A wide range of new technologies, products, and platforms are emerging […] the digital asset economy alone has grown from a mere curiosity to a nearly $4 trillion market.”
The confirmation of Selig, whom US President Donald Trump nominated to chair the CFTC following the removal of his first pick, Brian Quintenz, is expected to head for a vote soon. According to the Senate calendar, the Agriculture Committee is scheduled to discuss his nomination on Thursday.
Addressing DeFi, crypto enforcement, roles of agency
The prospective CFTC chair responded to questions from the committee chair, Senator John Boozman, who advocated for the agency to take a leading role in regulating spot digital commodity markets. The senator’s remarks came as the committee is expected to consider a market structure bill that would give the CFTC more authority to regulate crypto.
“The CFTC, and only the CFTC, should regulate the trading of digital commodities,” said Boozman.
The Arkansas senator questioned Selig about his potential approach to decentralized finance if he were to be confirmed, an issue that reportedly divided many lawmakers on the market structure bill.
“When we’re thinking about DeFi, it’s something of a buzzword, but really we should be looking to onchain markets and onchain applications and thinking about the features of these applications as well as where there’s an actual intermediary involved […]” said Selig.
He added that it was “vitally important that we have a cop on the beat” in response to a question on regulating crypto, specifically spot digital asset commodity markets.
Democratic concerns about CFTC leadership
Senator Amy Klobuchar, the Democratic ranking member of the Agriculture Committee, pressed Selig and other lawmakers on the leadership at the CFTC. Since September, acting Chair Caroline Pham has been the sole commissioner at the agency, which usually has five members. Pham is expected to resign should the Senate confirm Selig.
“The CFTC has operated much of the last year without a full complement of bipartisan commissioners, and has been operating for months with only an acting chairman,” said Klobuchar. “This uncertainty surrounding the leadership at the CFTC has only created more chaos for people who rely on the CFTC.”
Selig said it was “very valuable to have a diversity of viewpoints,” and would “work with whoever the president chooses to appoint.” As of Wednesday, Trump had not announced any additional nominations for the CFTC commissioners, leaving four open seats if Selig were to be confirmed and Pham were to leave.
China’s foreign ministry has hit back at what it called “unfounded” accusations of spying in Westminster, saying it has “no interest” in gathering intelligence on the UK.
Yesterday, the security service MI5 sent a warning to MPs and peers about two recruitment headhunters who are working for Chinese security services.
They are Amanda Qiu of BR-YR Executive Search and Shirly Shen of the Internship Union.
But speaking in response to a question by Asia correspondent Helen-Ann Smith, Chinese foreign ministry spokesperson Mao Ning replied: “China has repeatedly made clear its solemn position on this matter.
“We firmly oppose such unfounded allegations and the exaggerated portrayal and sensationalism that project one’s own biases onto others.
“Judgements based on erroneous information will only lead astray.
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Ms Mao added: “China never interferes in the internal affairs of other countries, nor does it have any interest in gathering so-called intelligence on the British parliament.”
Chinese spying accusations may signal thorny period ahead
It is China’s standard playbook to outright deny allegations of spying.
But given that it’s common knowledge countries spy on each other, and given the recent spate of allegations of this nature, it might feel a little far-fetched for China to stick so rigorously to the position that the UK is just making it all up.
Not so, says Mao Ning, the spokesperson for China’s Ministry of Foreign Affairs.
When I put it to her, she said that these allegations are, in fact, a “projection of one’s own biases on to others”, and that China doesn’t “have any interest in gathering so-called intelligence on the British parliament”.
That is almost certainly not true. China is commonly understood to run a highly sophisticated espionage operation.
But, in a way, the truth or untruth might be immaterial to the impact on the bilateral relationship.
While the UK government may seek to send strong signals amidst criticism that it’s being too soft, China really does not appreciate this type of laundry being aired in public.
It may well signal a thorny period ahead.
In a message seen by Sky News about parliamentary staff, MPs and peers were warned that the MI5 alert “highlights how the Chinese Ministry of State Security (MSS) is actively reaching out to individuals in our community”.
The message continued: “Their aim is to collect information and lay the groundwork for long-term relationships, using professional networking sites, recruitment agents and consultants acting on their behalf.”
Security minister Dan Jarvis later said in a statement to parliament that “China has a low threshold for what information is considered to be of value, and will gather individual pieces of information to build a wider picture”.
He added: “Let me speak plainly. This activity involves a covert and calculated attempt by a foreign power to interfere with our sovereign affairs in favour of its own interests, and this government will not tolerate it.”
The government made a statement in the House of Commons following the revelations, saying it would take all “necessary measures” to protect the UK.
Westminster employees were warned that two individuals were both known to be reaching out on LinkedIn to “conduct outreach at scale on behalf of MSS”.
This latest warning comes after the collapse of a prosecution of two people suspected of spying on behalf of China.
The previous spying allegations led to controversy over how the government under Labour responded to the Crown Prosecution Service’s requests for evidence.
Sir Keir Starmer sought to blame the previous Conservative government for the issues, which centred on whether China could be designated an “enemy” under First World War-era legislation.
Sir Keir has sought to keep relationships with Beijing somewhat warm, highlighting the value of China as a trading partner.
New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.
Minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, show the board planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”
Minutes from the following day record that directors voted to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”
According to a Wednesday Crypto in America report, the bond is backed by Bitcoin (BTC) and would let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayers do not back the bond; instead, BFA approves and oversees a private deal, while Bitcoin — reportedly held in custody by BitGo — covers investors.
According to the report, asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the bond to utilize Bitcoin as collateral under the same rules that govern municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.
The New Hampshire State House in Concord. Source: Wikimedia
“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.
The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC drops below roughly 130%, a liquidation would ensure that bondholders stay whole. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund the local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.
New Hampshire dives headfirst into crypto
The news follows New Hampshire becoming the first US state to allow its government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”
New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to send the measure for further review in an interim study after it had been deadlocked in the State Senate twice.
The local administration is viewed as particularly welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law in New York City, argued that it could become an alternative for crypto companies relocating to the Bahamas.
The latest moves build on a longer history of crypto engagement. Back in 2015, New Hampshire was already working on a bill that would have allowed the state government to accept tax and fee payments in Bitcoin.