Sir Keir Starmer will need to show progress on his missions amid the bleak picture he has painted

Published

9 months ago

August 28, 2024

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Cast your mind back to the heady days of early July, as a beaming Sir Keir Starmer swept into Downing Street to a cheering crowd and the promise of “change”.

Britain’s seventh ever Labour prime minister had won a landslide that deservedly drew parallels between himself and the party’s most successful election winner Tony Blair.

Yet on Tuesday, just over 50 days on from that moment, Sir Keir was very clear that the ballot box victory was where the parallel ends.

Politics live: Starmer offers biggest clue yet as to where possible tax rises may hit

Forget New Labour’s “things can only get better” mantra. In his first major Downing Street speech, this prime minister was clear that in his Britain “things can only get worse – for now”.

Armed with a new slogan across the lectern – “fixing the foundations” – Sir Keir set out the parlous state of the public finances, the dangerous populism that had flourished under the Tories and corroded our communities, triggering the recent riots, and the erosion of trust between government and the governed.

He reiterated his commitment to put government “back into the service of working people” and to repair “broken Britain”. But, he said, it would take time, be “painful” and involve unpopular decisions.

In a nutshell, this was a prime minister preparing the ground for tax rises and spending cuts in the autumn – all those questions avoided during the general election, now answered up front from the vantage point of being in government with a massive majority.

The autumn budget was “going to be painful”, he told an audience of members of the public he had met during the election campaign.

“We have no other choice, given the situation we’re in,” he added. “Frankly, things will get worse before they get better.”

For all the talk of doing politics differently, Sir Keir was rolling out a well-worn political strategy – blame the previous government for the terrible state of the country in order to create some space to do unpopular things.

His calculation is that the public will blame the past government, not his, particularly if – as he highlighted in his speech – voters can see the new administration is getting on with its priorities around growing the economy, green energy, housebuilding, or cutting NHS waiting lists by striking public sector pay deals.

“Come the autumn, if we can show we are getting on with it, we hope it will buy us some time,” said one senior government figure. “What people will want is progress checks.”

But, as the controversy over the scrapping of the universal winter fuel allowance payments to pensioners shows, these difficult decisions will face a backlash.

The Starmer administration is already under fire from some on its own side to amend the policy and that noise is unlikely to dim as the increased energy price cap kicks in over the autumn and winter.

And what of tax rises? Sir Keir told me in our Sky News Leaders’ Debate he had “no plans” to raise taxes beyond what was outlined in the manifesto.

Now he says that what Labour characterise as a £22bn “black hole” in the public finances – caused in part by Labour’s decision to settle on public sector pay recommendations – leave him with few options.

But in reality, questions around tax rises and spending cuts, given the state of the public finances, were raised repeatedly in the election, and Labour avoided answering them.

Rishi Sunak is now already arguing that Labour are doing what he warned they would in the election – put up taxes.

This will undoubtedly be the running battle of the autumn. On Tuesday, Sir Keir ruled out raising taxes on “working people”, in the shape of income tax, national insurance of VAT.

But he left no doubt in my mind tax rises were on the way as he signalled that “those with the broadest shoulders” should carry the burden, paving the way for more levies on the wealthy, and perhaps big business too.

Sir Keir might be successful politically in pinning the blame on the Tories. But he does not want to just have a political win. He wants to restore trust in politics.

For now, voters might be forgiven for thinking it is more of the same – the promise of change before the election only to then witness a blame game in which politicians trade blows and the public have to take the political pain after the win.

Things can only get worse is indeed, as Sharon Graham of Unite put it after Sir Keir’s speech, a “bleak picture” of Britain. But it is now the opening chapter of this Labour administration.

For a country running out of patience, Sir Keir will need to show some progress on his missions too. Labour won on a slogan of change, not more of the same.

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.”