Offenders could serve sentence in Estonian prisons to ease overcrowding
The government is not ruling out sending offenders to Estonia as a means of alleviating severe overcrowding on the UK prison estate.
Sky News understands that having offenders serve out their sentence in the Baltic state is one of many options being considered to address over-capacity on the prison estate – where there are thought to be just over 1,000 spaces left in prisons across England and Wales.
Since coming into office, Shabana Mahmood, the justice secretary, has warned overcrowding could lead to a breakdown in law and order if action is not taken to alleviate pressure on the system.
Last month, with the country still feeling the impact of the riots that took place in the wake of the Southport stabbings, spare spaces were understood to have been reduced to just 100 in male prisons across England and Wales – the closest the system has come to running out of capacity.
The government has already taken controversial steps to alleviate overcrowding, including by allowing the early release of prisoners who have served 40% of their sentence.
Prisoners in England and Wales, apart from the most serious offenders, are usually released on licence after serving 50% of their sentence – but from this month, this will be reduced to 40%.
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Starmer blames Tories over prisons
Magistrates were last month told to consider pushing back the sentencing of criminals because of concerns about overcrowding.
A Ministry of Justice spokesperson said: “The new government inherited a justice system in crisis, with prisons on the point of collapse.
“We will continue to investigate all viable options to increase the number of places in the prisons estate so we can keep locking up dangerous criminals and protect the public.”
The idea of sending criminals on the British prison estate to Estonia was first floated by former justice secretary Alex Chalk.
He told last year’s Conservative Party conference that the then government under Rishi Sunak would enter exploratory discussions with countries in Europe over the possibility of renting prison space abroad.
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The previous government said it would only enter into agreement with European countries provided aspects of the prison system, including facilities and rehabilitation, matched UK standards.
It argued its policy was in line with steps taken by Belgium and Norway, which have used foreign prison places in the Netherlands in the last decade.
In her first speech as justice secretary, Ms Mahmood blamed Mr Sunak “and his gang in Number 10” for being “too weak to heed the warning signs that were flashing”.
More than 10,000 prisoners were released early under the previous government between October last year and June this year, leaked documents suggest.
Millionaire Tory donor Malcolm Offord has defected to Reform UK, saying he would be campaigning “tirelessly” to “remove this rotten SNP government”.
Nigel Farage announced the former Conservative life peer’s defection during a rally in the Scottish town of Falkirk, where regular anti-immigration protests have taken place outside the Cladhan Hotel – which is being used to house asylum seekers.
Mr Farage, Reform UK’s leader, said he was “delighted” to welcome Greenock-born Lord Offord to Reform, describing his defection as “a brave and historic act”.
He added: “He will take Reform UK Scotland to a new level.”
During a speech, Lord Offord, who previously donated nearly £150,000 to the Tories, said he would be quitting the Conservative Party and giving up his place in the House of Lords as he prepares to campaign for a seat in Holyrood in May.
The 61-year-old said he wanted to restore Scotland to a “prosperous, happy, healthy country”.
“Scotland needs Reform and Reform is coming to Scotland,” he told the rally.
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“Today I can announce that I am resigning from the Conservative Party. Today I am joining Reform UK and today I announce my intention to stand for Reform in the Holyrood election in May next year.
“And that means that from today, for the next five months, day and night, I shall be campaigning with all of you tirelessly for two objectives.
“The first objective is to remove this rotten SNP government after 18 years, and the second is to present a positive vision for Scotland inside the UK, to restore Scotland to being a prosperous, proud, healthy and happy country.”
The latest defection comes as Mr Farage finds himself at the centre of allegations of racism dating back to his time in school.
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Claims made against Nigel Farage
Sky News reported on Saturday that a former schoolfriend of Mr Farage claimed he sang antisemitic songs to Jewish schoolmates – and had a “big issue with anyone called Patel”.
Jean-Pierre Lihou, 61, was initially friends with the Reform UK leader when he arrived at Dulwich College in the 1970s, at the time when Mr Farage is accused of saying antisemitic and other racist remarks by more than a dozen pupils.
Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.
Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.
A Reform UK spokesman accused Sky News of “scraping the barrel” and being “desperate to stop us winning the next election”.
The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.
On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.
Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.
“I am even more concerned that the proposal makes ESMA responsible for both the authorisation and the supervision of CASPs, not only the supervision,” she told Cointelegraph.
The proposal still requires approval from the European Parliament and the Council, which are currently under negotiation.
If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission, a concept first proposed by European Central Bank (ECB) President Christine Lagarde in 2023.
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The proposal to “centralize” this oversight under a single regulatory body seeks to address the differences in national supervisory practices and uneven licensing regimes, but risks slowing down overall crypto industry development, Elisenda Fabrega, general counsel at Brickken asset tokenization platform, told Cointelegraph.
“Without adequate resources, this mandate may become unmanageable, leading to delays or overly cautious assessments that could disproportionately affect smaller or innovative firms.”
“Ultimately, the effectiveness of this reform will depend less on its legal form and more on its institutional execution,” including ESMA’s operational capacity, independence and cooperation “channels” with member states, she said.
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The broader package aims to boost wealth creation for EU citizens by making the bloc’s capital markets more competitive with those of the US.
The US stock market is worth approximately $62 trillion, or 48% of the global equity market, while the EU stock market’s cumulative value sits around $11 trillion, representing 9% of the global share, according to data from Visual Capitalist.
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