Sir Keir Starmer’s government has not yet been in place for 100 days. By all accounts, things are not going well.
The Labour leader and his top ministers have had to backtrack after taking freebies totalling many thousands of pounds for clothing and entertainment. Sue Gray, the ex-civil servant he recruited as chief of staff, has accepted a salary larger than the prime minister while standing accused of cutting the pay of more junior special advisers coming into government.
The biggest announcement the government has made yet – cutting winter fuel payments for most pensioners – was poorly presented, coinciding with big pay rises for public sector trade unionists and leading to a rebellion by Labour MPs. So far, eight of them have either been suspended or resigned the whip. Labour is dropping in opinion polls. Meanwhile, the prime minister often seems defensive and belligerent when interviewed and at a loose end at important gatherings.
It is still early days. None of these teething troubles directly threaten a government that commands an overwhelming majority in the House of Commons. But there is universal agreement ranging from Sir Keir’s friends to his political foes that he needs to get a grip on running the country, starting with appointing the best people as his senior advisers and officials.
The historian Sir Anthony Seldon, the author of a series of books on prime ministers in 10 Downing Street, warns “Starmer needs to act quickly. He has been naive and complacent on staff appointments. Get it right now and he can fly.”
Image: Cabinet Secretary Sir Simon Case will step down by the end of the year as he has been suffering from a neurological condition. Pic: PA
This week a major opportunity presented itself. The cabinet secretary, Sir Simon Case, at last announced he will step down at the end of this year. The man or woman who fills his shoes will be vital in properly establishing and relaunching the way the UK is ruled by the new government.
According to the official advert: “The cabinet secretary and head of the civil service is the most senior civil servant in the UK and the principal official adviser to the prime minister and Cabinet.”
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The salary is £200,000 a year, also more than the prime minister, plus a hefty 28.7% pension contribution. Applicants have until 11.55pm on 20 October to get in their CV, a 1000-word statement, a diversity questionnaire and a declaration of interests.
Sir Simon’s departure had been long expected. Some blame the prime minister for not forcing the vacancy sooner. Cabinet secretary is the most important of an unprecedented number of unfilled posts among Starmer’s top advisers, also including principal private secretary (PPS), his personal civil service aide, and national security adviser. Without them, few are surprised he has not got on top of being prime minister.
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Sir Simon has been absent for long periods due to a serious neurological illness. In truth, he never really settled in as the respected boss of some half a million civil servants. Still only 45, he was much younger than most cabinet secretaries when installed in 2020 by the chaotic Boris Johnson government after Mark Sedwill was unceremoniously pushed aside. Sir Simon came from being private secretary to Prince William. He had also been PPS to Theresa May.
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‘Donations not given out of altruism’
Rightly or wrongly, senior Labour figures felt he struggled to serve the new government. An unproven suspicion lingers on the Labour side that he may have been behind leaks damaging to Sue Gray.
The successful working of the UK’s constitutional machinery depends on an impartial cabinet secretary. His main job (so far they have all been men) is to ensure the civil service delivers the government’s programme effectively.
The cabinet secretary must also advise the prime minister whether their plans make sense, are acceptable and conform to expected ethical standards. In the perceptive TV comedy series Yes Prime Minister the catchphrase of cabinet secretary Sir Humphrey Appleby was: “Is that wise, prime minister?”
By the time they get the top job, most cabinet secretaries have worked for governments and ministers across the political spectrum. Sir Gus O’Donnell was a close adviser to John Major, Tony Blair and Gordon Brown. In 2010 he oversaw the transition to what became the Conservative/Liberal Democrat coalition between David Cameron and Nick Clegg.
When Lord O’Donnell’s successor Sir Jeremy Heywood died prematurely of cancer in 2018 Blair, Brown, Cameron, Clegg and Theresa May led the official mourners. Sir Jeremy’s advice was hung on by successive prime ministers. If anything, he was too helpful and got too close. He and David Cameron were both keen to involve the disgraced former businessman Lex Greensill with government business.
Image: Former chief Brexit negotiator Olly Robbins is Sue Gray’s top pick for cabinet secretary. Pic: Reuters
Past history and present tensions suggest that it would be a mistake to appoint Olly Robbins as the cabinet secretary. He is widely seen as Sue Gray’s preferred candidate. Downing Street might benefit from some creative tension. Besides, Robbins’ experience, including as a Brexit negotiator, is better suited to national security adviser.
Sir Keir has inherited a mess created by Rishi Sunak. In the dying days of the last government, Mr Sunak attempted to promote his national security council adviser, Tim Barrow, to US ambassador and to replace him with General Gwyn Jenkins. The Labour opposition cried foul successfully. As a result, both jobs and the people involved with them are now up in the air. A decision on the new Washington ambassador is due after the American election in November.
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Prime ministers who appoint friends and cronies exclusively as their key advisers tend to come a cropper, as the five recent Conservative leaders found out eventually. Far better to bring in someone of proven administrative expertise as cabinet secretary.
As usual, there are some highly rated senior male civil servants, with experience heading government departments, who could fill the role, led by Jeremy Pocklington, permanent secretary, or “perm sec”, at DESNZ, the energy department, and Sir Peter Schofield, department for work and pensions’ perm sec.
The new government has made much of having the first female chancellor of the exchequer. If Sir Keir fancies appointing the first woman cabinet secretary there is a rich and colourful field to choose from.
Sarah Healey, perm sec at DHCLG (communities) and formerly the culture department, is widely respected, as is Tamara Finkelstein at DEFRA. In Lady Finkelstein’s case, some in Labour might balk at handing the top job to the wife of Danny Finkelstein, the prominent Conservative peer and Times newspaper columnist.
Dame Antonia Romeo, currently in charge of the Ministry of Justice, has held a number of senior civil service jobs. During Liz Truss’s short-lived tenure, she was briefly appointed Treasury perm sec. Her earlier, high profile, high fashion, approach to being UK consul general in New York brought her into conflict with the British embassy in Washington DC.
Image: Former John Lewis and Ofcom head Sharon White has ruled herself out by being on the selection panel. Pic: JLP
Former female civil servants who might want to return to government include Dame Melanie Dawes, currently cautiously low profile at the media regulator Ofcom, and Baroness Minouche Shafik, former perm sec at the department for international development and deputy governor of the Bank of England. She has just finished as president of Columbia University in New York City. Then there is Helen McNamara, who had a bruising time as deputy cabinet secretary during the COVID pandemic.
It is not yet known who of those above will put their names forward. One of the most widely tipped names is not applying. Sharon White, of John Lewis, Ofcom and the Treasury, could have been the first woman and the first black person to be cabinet secretary. She has decided to sit on the selection panel instead, alongside Gus O’Donnell.
The final choice of the next cabinet secretary will be made by the prime minister. The pressure is on Sir Keir to think out of his comfort zone if he is to be guided from the missteps of the first 100 days into four years of competent and ethical government.
Taiwanese lawmaker Ko Ju-Chun has called on the government to consider adding Bitcoin to its national reserves, suggesting it could serve as a hedge against global economic uncertainty.
Ko, a legislator at-large in Taiwan’s legislative body, the Legislative Yuan, took to X on Friday to report that he had advocated Bitcoin (BTC) investment by the Taiwanese government at the National Conference on May 9.
In his remarks, Ko cited Bitcoin’s potential to become a hedge amid global economic risks and urged Taiwan to recognize the cryptocurrency alongside gold and foreign exchange reserves to boost its financial resilience.
Ko highlighted that Taiwan is an export-driven economy that has experienced significant fluctuations in its national currency, the New Taiwan dollar, amid global inflation and intensifying geopolitical risks.
“We currently have a gold reserve of 423 metric tons, and our foreign exchange reserves amount to $577 billion, including investments in US Treasury bonds,” the lawmaker stated.
In a scenario of more intense currency volatility or potential regional conflicts, Taiwan may “very likely be unable to ensure the security and liquidity,” Ko continued, adding that Bitcoin could be a great addition to Taiwan’s reserves for several reasons.
Ko Ju-Chun advocated for the adoption of Bitcoin by the Taiwanese government before the Legislative Yuan. Source: Ko Ju-Chun
“Bitcoin has been operating for over 15 years. It has a fixed total supply, is decentralized, and is resistant to censorship. Many countries are focusing on its hedging attributes. At the same time, in intense situations, it may not face the risk of embargo,” he said.
Instead, the legislator suggested adding a “small proportion of Bitcoin” into the diversified assets as tools for sovereign asset allocation and risk hedging, and backup capacity of Taiwan’s financial system.
“When exchange rate risk and regional uncertainty increase, it is time to introduce new tools to construct a more flexible financial strategy framework,” Ko said, adding:
“As former Dean Chen Chong said, Bitcoin is the gun of the digital era. It may also be the gold of the digital era, the silver of the digital era. Or it could be gunpowder. A wise nation will not let weapons be in others’ hands.”
German law enforcement seized 34 million euros ($38 million) in cryptocurrency from eXch, a cryptocurrency platform allegedly used to launder funds stolen after Bybit’s record-breaking $1.4 billion hack.
The seizure, announced on May 9 by Germany’s Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office, involved multiple crypto assets, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Dash (DASH). The move marks the third-largest crypto confiscation in the BKA’s history.
The authorities also seized eXch’s German server infrastructure with over eight terabytes of data and shut down the platform, the announcement added.
eXch exchanged crypto without AML
In the statement, the BKA described eXch as a “swapping” service that allowed users to exchange various crypto assets without implementing Anti-Money Laundering (AML) measures.
The platform had operated since 2014 and reportedly facilitated about $1.9 billion in crypto transfers, some of which were believed to be of “criminal origin,” including assets laundered during the Bybit hack.
Example of flow of Bybit exploit funds moving through eXch and bridging back and forth between Ether and Bitcoin. Source: TRM Labs
“Among other things, a portion of the $1.5 billion stolen from the Bybit crypto exchange, which was hacked on Feb. 21, 2025, is said to have been exchanged via eXch,” the authorities wrote.
Multisig, FixedFloat among laundering cases
According to a post by crypto sleuth ZachXBT, eXch was also involved in laundering millions of funds from other crypto thefts and exploits, including Multisig, FixedFloat and the $243 million Genesis creditor theft.
Those were in addition to “countless phishing drainer services over the past few years with refusal to block addresses and freeze orders,” ZachXBT said.
Source: ZachXBT
ZachXBT was among the first security analysts to report on eXch’s links to laundering $35 million of crypto assets stolen from Bybit soon after the hack was confirmed.
“Lazarus Group transferred 5K ETH from the Bybit Hack to a new address and began laundering funds via eXch (a centralized mixer) and bridging funds to Bitcoin via Chainflip,” ZachXBT wrote in a Telegram post on Feb. 22.
“Even though we have been able to operate despite some failed attempts to shut down our infrastructure […], we don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence] simply because some people misinterpret our goals,” it wrote.
Addressing the seizure, senior public prosecutor Benjamin Krause stressed the importance of action against “quick and anonymous opportunities for money laundering for any amount.”
“Crypto swapping is an essential component of the underground economy, used to conceal incriminated funds from illegal activities such as hacking or trading in stolen payment card data, thus making them available to perpetrators,” he said.
With Ruth away, Beth and Harriet are joined by Salma Shah, a former Conservative special adviser from 2014-2018 and now a political commentator.
They unpack Donald Trump’s surprise UK trade deal announcement and what it means for Sir Keir Starmer, who’s also landed a deal with India and is gearing up for key EU negotiations.
But while the global optics look strong, the domestic mood is tense. Harriet has some advice for the Labour backbenchers who are unhappy over welfare cuts and the winter fuel allowance policy.