They came in their droves: thousands of Reform supporters poured into a vast hall in a Birmingham conference centre on Sunday to hear Nigel Farage.
His backers brought with them Union Jacks, and brandished Reform placards. There were even one or two red baseball caps emblazoned with the slogan “Make Britain Great Again”, which seemed fitting for an event that felt quite Trumpian in style and tone.
Mr Farage came onto the stage to pounding music, smoke machines, fireworks, and a sea of “it’s time for Reform” placards to a 5,000-strong crowd with a speech that spoke about how Britain was broken and it was time for Reform.
He said his party would be the “leading voice of opposition” as he attacked ‘the establishment’ in all its guises, from the Conservative Party to Labour, the BBC, and Channel 4 to the Governor of the Bank of England.
While detractors describe Mr Farage’s platform as a type of dog-whistle politics that does little but to stoke grievances and division, there is an audience for him and his policies that politicians in larger parties should ignore at their peril.
When I spoke to many people in the hall afterwards, they were overwhelmingly former Conservative voters disillusioned with their old party.
One woman, who had travelled over from Hull for the rally told me she thought there were a lot of “silent people who may be frightened to say they are voting Reform”.
“I think it’s going to be shock,” she said.
Advertisement
Image: The crowd in Birmingham. Pic: Reuters
2024 is the election for ‘the other parties’
The rise of the ‘other’ parties is a clear theme of this election campaign as the Liberal Democrats, who won just 11 seats back in 2019, now eye getting back to the levels of seats they enjoyed – in the 1940s or 1950s – before it was wiped out in 2015 on the back of the coalition years.
Nigel Farage’s Reform, meanwhile, is on 16.2% in our Sky News poll tracker, just behind the Tories on 20%.
Mr Farage likes to make the argument that Labour could be heading to a landslide on a lower voter share.
Recent analysis in the Financial Times suggested Labour could win a record 450 seats – about 70% – on just 41% of the votes, lower than the figure Jeremy Corbyn’s Labour achieved in 2017, while the Lib Dems could pick up 50 seats with a lower share of the vote than Reform with just a few seats at best. If it turns out anything like this, prepare for plenty of noise from Mr Farage.
Whether undecided voters or those leaning to Reform stick with them on Thursday is a big unknown of this election. Tories are nervous, knowing that big Reform votes piling up in their constituencies could cost them their seat.
In 2019, the majority of Conservatives did not have a threat from the right, as the Brexit Party stood down candidates with a Brexit-backing Conservative candidate. They stood but 275 or 632 seats.
This time around, Reform is everywhere and no one feels safe: one poll put James Cleverly’s Braintree constituency, supposedly the 19th safest Conservative seat, on a knife edge as Reform clocks up an estimated 22% vote share in his Essex constituency.
Image: Pic: Reuters
Tories in all-out war
The Conservatives, who began this campaign trying not to get into a fight with Mr Farage (perhaps for fear of further alienating their traditional voters) are now at all-out war as they try to salvage as many seats as they can.
On Sunday the party said if “just 130,000 voters currently considering a vote for Reform or the Lib Dems voted Conservative, it would be enough to stop Labour’s supermajority”.
The prime minister, meanwhile, has become increasingly vocal in his criticisms of Reform and Mr Farage as the party looks for a way to pull voters back.
Mr Sunak has been vocal in his criticism of Mr Farage as a “Putin appeaser” after the Reform leader suggested Ukraine enter peace talks – something which Ukraine has emphatically ruled out unless Russia retreats from its territory.
The prime minister also spoke of his “anger and hurt” over revelations – contested by Reform – in a Channel 4 undercover report of a Reform canvasser calling Mr Sunak a “f****** P***”.
This, combined with a Reform organiser making homophobic remarks and candidates being suspended for racist, antisemitic and sexist views has caused difficulties for Mr Farage in recent days.
Please use Chrome browser for a more accessible video player
1:29
Sunak ‘hurt’ over Reform race row
Tensions around Farage starting to show
In our interview in Birmingham on Sunday, some of those tensions were beginning to show.
For a start, the politician who had appeared with right-wing Tories such as potential future leader Dame Priti Patel at the Conservative Party conference last October, and openly toyed about returning to the fold, now ruled out any sort of tie-up.
Having spoken but a month ago about a reverse takeover of the Tories and refusing to rule out one day rejoining the party, on Sunday he was clear he would not rejoin, and wanted nothing to do with the Conservatives.
Image: Pic: Reuters
It comes after a clutch of senior figures, including Dame Priti, indicated that Mr Farage would now not be welcomed back into the party in the wake of the backlash over his claim the West provoked Russia to invade Ukraine and the racism row engulfing Reform.
He equally was more equivocal than he had been about Andrew Tate in the past, making it clear to me that he “disavowed’ him, and was also highly critical of Reform events organiser George James who made homophobic remarks, saying he was “furious” when he saw the footage (also in the Channel 4 report) of Mr James describing the Pride flag as “degenerate” and criticising the police for displaying the flag.
“They should be out catching the n***** not promoting the f******”,” he said in the report.
Mr Farage said Mr James was “crass, drunken, rude and wrong” and told me he had been asked to remove his membership. But he also said he was “down a few drinks” explaining: “We could all say silly things when we’re a bit drunk.”
When I asked him if people really say things like this when they are drunk, Mr Farage said: “People say all sorts of things when they’re drunk and often don’t remember. But it was awful.”
So awful that one Reform candidate announced on Sunday evening they were standing down and would instead back their local Conservative in the constituency of Erewash.
The question for Reform is whether their potential voters, looking at some of the controversy surrounding the party, decide it’s not for them after all.
What is absolutely clear is Reform’s performance will help determine that of the Conservatives on Thursday night as the election results come in.
If he’s successful, Mr Farage will be heading for parliament, not only giving him a bigger national platform but a democratic mandate. That spells trouble for a Conservative party already in turmoil.
The Japanese government is reportedly backing plans to introduce a significant reduction in the nation’s maximum tax rate on crypto profits, with a flat rate of 20% across the board.
Japan’s financial regulator, the Financial Services Agency (FSA), first floated the proposed tax changes in mid-November, outlining plans to introduce a bill in early 2026, and now the government and ruling coalition — the political parties in control of Japan’s parliament, the National Diet — are on board.
According to a report from Japanese news outlet Nikkei Asia on Sunday, the new rules aim to align crypto taxation rules with those of other financial products, such as equities and investment funds.
Under the current laws, taxation on crypto trading is included as part of income taxes for individuals and businesses, falling under the category of “miscellaneous income.” The rate ranges from 5% on the lower end of the spectrum to 45% on the high end, with high-income earners potentially on the hook for an additional 10% inhabitant tax.
Meanwhile, assets such as equities and investment trusts are taxed separately, with a flat 20% tax on profits, regardless of the amount.
The tax changes could be a boon for the domestic cryptocurrency market, as the higher tax rates may have deterred potential investors.
According to the Nikkei report, the potential changes to crypto taxation in Japan will be introduced as part of a “solid investor-protection framework” proposed in the FSA’s bill, which aims to amend the Financial Instruments and Exchange Act.
The FSA will submit the bill during the regular Diet session in 2026, as it pushes for greater oversight of crypto trading, including a ban on dealing with non-public information and stricter investment disclosures.
Japan finally set for crypto tax change after long fight
The Japan Blockchain Association (JBA), the nation’s major crypto-focused non-governmental lobbying group, has been calling for these changes for almost three years.
In July 2023, the JBA published a letter to the government on its website, outlining key tax reform requests to support the industry. The letter called for a 20% tax rate that aligns with other investment vehicles.
“This letter requests a review of tax on crypto assets, which is the biggest hurdle for companies operating Web3 businesses in Japan and a disincentive for the public to actively own and use crypto assets,” the letter reads.
While it is unclear if the JBA had a direct influence on the FSA’s thinking, the financial watchdog did start warming up to the idea and pushing for reform in September 2024.
Sir Keir Starmer has warned China poses “real national security threats to the United Kingdom”.
But the prime minister also described China as a “nation of immense scale, ambition and ingenuity” and a “defining force in technology, trade and global governance”.
“The UK needs a China policy that recognises this reality,” he added in a speech at the Guildhall in London.
“Instead, for years we have blown hot and cold.
“So our response will not be driven by fear, nor softened by illusion. It will be grounded in strength, clarity and sober realism.”
Image: Prime Minister Keir Starmer giving his speech. Pic: Reuters
Describing the absence of engagement with China – the world’s second-biggest economy – as “staggering” and “a dereliction of duty”, Sir Keir said: “This is not a question of balancing economic and security considerations. We don’t trade off security in one area, for a bit more economic access somewhere else.
“Protecting our security is non-negotiable – our first duty. But by taking tough steps to keep us secure, we enable ourselves to cooperate in other areas.”
Sir Keir’s remarks come after MPs and parliamentarians were warned last month of new attempts to spy on them by China.
That case led to controversy over how the government under Labour responded to the Crown Prosecution Service’s requests for evidence.
Image: Speech at the annual Lady Mayor’s Banquet. Pic: Reuters
At the time, Sir Keir 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.
Meanwhile, Sky News understands the prime minister is set to approve plans for a controversial Chinese “super embassy” in central London.
A final decision on the planning application for the former Royal Mint site near the Tower of London is due on 10 December, after numerous previous delays.
Sir Keir is also understood to be preparing for a likely visit to China in the new year.
Since he was elected last year, Sir Keir has been active on the world stage, trumpeting deals with the US, India and the EU and leading the “coalition of the willing” in support of Ukraine.
Please use Chrome browser for a more accessible video player
1:05
PM preparing for likely China visit
But he has also faced criticism from his opponents, who accuse him of spending too much time out of the UK attending international summits rather than focusing on domestic issues.
Sir Keir offered a defence of his approach, describing it as “the biggest shift in British foreign policy since Brexit” and “a decisive move to face outward again”.
While saying he would “always respect” the Brexit vote as a “fair, democratic expression”, he said the way the UK’s departure from the EU had been “sold and delivered” was “simply wrong”.
He said: “Wild promises were made to the British people and not fulfilled. We are still dealing with the consequences today.”
In his speech on Monday, the prime minister accused opposition politicians of offering a “corrosive, inward-looking attitude” on international affairs.
Image: Sir Keir Starmer. Pic: Reuters
Taking aim at those who advocate leaving the European Convention on Human Rights or NATO, he said they offered “grievance rather than hope” and “a declinist vision of a lesser Britain”.
Sir Keir said: “Moreover, it is a fatal misreading of the moment, ducking the fundamental challenge posed by a chaotic world – a world which is more dangerous and unstable than at any point for a generation, where international events reach directly into our lives, whether we like it or not.”
He added: “In these times, we deliver for Britain by looking outward with renewed purpose and pride, not by shrinking back. In these times, internationalism is patriotism.”
Responding to the prime minister’s speech, shadow foreign secretary Dame Priti Patel said: “From China’s continued flouting of economic rules to transnational repression of Hong Kongers in Britain, Starmer’s ‘reset’ with Beijing is a naive one-way street, which puts Britain at risk while Beijing gets everything it wants.
“Starmer continues to kowtow to China and is captivated by half-baked promises of trade.
“Coming just days after the latest Chinese plot to interfere in our democracy was exposed, his love letter to the Chinese Communist Party is a desperate ploy to generate economic growth following his budget of lies and is completely ill-judged.
“While China poses a clear threat to Britain, China continues to back Iran and Russia, and plots to undermine our institutions. Keir Starmer has become Beijing’s useful idiot in Britain.”
The chairman of the Office for Budget Responsibility (OBR) has resigned after an investigation into the leak of last week’s budget criticised the watchdog’s leadership.
The OBR’s official forecast, which revealed the contents of the record-breaking tax rise budget, was accessed at 11.35am last Wednesday, about an hour before the chancellor stood up to deliver it.
Image: Rachel Reeves said she only found out about the leak when she was in the House of Commons
In a letter to Ms Reeves and the chairwoman of the Commons Treasury Committee Dame Meg Hillier, Mr Hughes said he was quitting to allow the OBR to “quickly move on from this regrettable incident”.
He said he took “full responsibility” for “the shortcomings identified in the report”.
Mr Hughes said: “By implementing the recommendations in this report, I am certain the OBR can quickly regain and restore the confidence and esteem that it has earned through 15 years of rigorous, independent economic analysis.”
More from Politics
An investigation ordered by the independent fiscal forecaster soon after the budget called the leak “the worst failure in the 15-year history of the OBR” and strongly criticised the watchdog’s processes for protecting sensitive information.
The probe found there was “nothing to suggest” the premature access was the result of “hostile cyber activity by foreign actors or cyber criminals, or of connivance by anyone working for the OBR”.
“Nor was it simply a matter of pressing the publication button on a locally managed website too early,” the report stated.
It concluded that “configuration errors” led to “a failure to ensure the protections which hide documents from public view immediately before publication were in place”.
“The ultimate responsibility for the circumstances in which this vulnerability occurred and was then exposed rests, over the years, with the leadership of the OBR,” the investigation said.
Please use Chrome browser for a more accessible video player
2:25
Did Rachel Reeves mislead the nation with her budget?
Kemi Badenoch claimed that Ms Reeves was trying to use Mr Hughes as a “human shield”.
The Conservative leader said on social media: “More serious questions for the chancellor as she tries to make Richard Hughes her human shield.
“Her actions have turned this into a full blown political crisis for the government. If [Prime Minister] Keir Starmer had a backbone, he would have sacked Reeves long ago.”
Mr Hughes had been under pressure to explain the leak, which he immediately apologised for, and ordered the investigation.
It is also led by Professor David Miles and Tom Josephs, with Baroness Sarah Hogg and Dame Susan Rice as non-executive members.
There are 52 permanent staff, who are civil servants, with six of those working on the strategy, operations and communications team.
The report acknowledged the leak “changed the pattern of budget day to the chancellor’s disadvantage”.
5.10am: OBR website host emailed staff to confirm server modification to accommodate higher website traffic when the forecast is released
5.16am: A request was made to access the forecast document’s web address, but the PDF had not been uploaded yet. Between this time and 11.30am there were 44 unsuccessful requests to the URL from seven unique IP addresses
9am onwards: The web developer set up webpages in draft form in the content management system, creating IDS for all the downloads to be used across the website
11.02am: PDF documents were emailed to the web developer, including the forecast
11.03am-11.35am: The web developer began uploading documents to the draft area of the OBR website – which was understood by all involved not to be publicly accessible
11.35am: The first successful request to the document’s URL was made. This IP address had made 32 unsuccessful attempts at that URL that morning. There were 43 successful requests between this time and 12.07pm, from 32 unique IP addresses
11.41am: A Reuters news alert is the first evidence of the forecast being available publicly
11.43am: The OBR was first made aware by a non-Reuters journalist that Reuters was flashing forecast details. OBR staff, not knowing the URL was accessible even if known or guessed, found no evidence via webpages going live accidentally
11.50am onwards: Images and facts from the forecast began appearing widely online from many people
11.52am: Senior OBR and Treasury officials had a phone call to discuss the breach. Treasury staff made OBR staff aware of the URL
11.53am: OBR staff and the web developer tried to pull the PDF from the website, and to pull the entire website, but struggled to initially due to the website being overloaded with traffic
11.58am: A Reuters journalist emailed the OBR confirming they had published details and asked for a comment
12.07pm: The forecast PDF was renamed by the web developer, but it still appeared on the internet archive via search engines
12.08pm: The PDF was removed from the website’s content management system, taking it offline. The OBR chair and staff drafted a statement setting out what had happened and confirming its website was the source of the error
12.15pm: the statement was posted on the OBR’s website and on X
12.34pm: Chancellor’s budget statement began
1.38pm: The chancellor’s statement ended and the forecast and supporting documents were pushed live
It revealed the OBR’s spring statement 2025 was also accessed ahead of time, but said the likely explanation “is benign”.
And it said last week’s budget forecast document had multiple attempts to access it before it was inadvertently made accessible online.
The investigation partly blamed the Treasury and the Cabinet Office, as the OBR’s IT services were moved on to the Treasury’s shared systems in 2023 to “align more closely with Treasury security arrangements”, particularly around the sharing of sensitive budget information between the OBR and Treasury.
It said the Treasury should pay “greater attention” when setting the OBR’s budget, currently £6.4m, to the need for adequate support.
The investigation said there was pressure on the small team involved to ensure the full economic and fiscal outlook was published when the chancellor sat down after giving her budget, so a pre-publication “facility” was used.
But this commonly used device created a “potential vulnerability if not configured properly” and had not received the same amount of attention by the OBR as it had placed on security of communications with the Treasury “during the long period of run-up to the budget”.
Please use Chrome browser for a more accessible video player
3:29
Starmer says he did not mislead the public
An outside web developer, who has helped the OBR team since it came into existence 15 years ago, assists the internal team and manages content and uploads at times of pressure, including the release of the budget forecast.
The report said the risks of this approach have increased over the years as technologies have developed and online threats have risen.
“With hindsight, it is clear that over the years this arrangement should have been regularly reexamined and assessed by the management of the OBR,” the report said.
It recommended the process for publishing forecasts should “immediately” be removed from the OBR’s locally managed website, which is a WordPress website, and published as part of a government website.