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.
Learn-to-earn platform Dohrnii Labs filed a police report in the United Arab Emirates accusing local crypto exchange Blynex of liquidating its tokens without authorization and failing to deliver a promised loan.
According to a statement shared with Cointelegraph, Dohrnii Labs deposited 12,649.99 Dohrnii (DHN) tokens — valued at more than $500,000 — with Blynex. On March 23, the company said it used 8,650 of those tokens as collateral for a 30-day loan in exchange for 80,000 of Tether’s USDt (USDT).
Dohrnii claims the exchange never delivered the USDT. Furthermore, the team said Blynex liquidated its entire 8,650 DHN position on Uniswap, receiving 149,151 USDT and causing a drop in the token’s market value.
Attempts to withdraw the remaining 4,000 DHN tokens were unsuccessful, the company said.
Blynex co-founder Mike Baskes told Cointelegraph the incident was part of their “automated risk management system.” Baskes claimed their system detected a high risk that the collateral would drop significantly in the event of liquidation.
The Blynex executive said that when the tokens were sold, it only generated 145,000 USDT instead of its original amount. He noted that DHN token liquidity was limited, estimating just $315,000 available at the time of the transaction.
The executive claimed Blynex took action to prevent financial losses:
“Given this liquidity constraint, the system recognized a high risk of further loss if the collateral wasn’t liquidated immediately, as the tokens would be difficult to sell at a favorable price in the current market.”
Dohrnii Labs has challenged that explanation, calling Blynex’s justification “misleading” and alleging that the exchange liquidated collateral worth nearly double the value of the loan.
Dohrnii Labs threatens legal action against Blynex
In response, Dohrnii Labs filed the police report in the UAE and has threatened to take legal action against the crypto exchange.
A Dohrnii Labs representative told Cointelegraph that the police report was only a “first step.” The representative said if Blynex ignored their communications, they would legally escalate the matter:
“Since the project and the individuals responsible are based in the UAE, we are also getting in touch with local regulators, including VARA, ADGM, and other relevant authorities. Furthermore, we’re in contact with other affected projects and are actively exploring the possibility of joint legal action.”
The team said they want to ensure accountability through the legal system and regulatory oversight.
Dohrnii told Cointelegraph that Blynex attempted to settle the matter by offering them 80,000 USDT and allowing the withdrawal of 4,000 DHN tokens.
However, the exchange added a condition that the platform would drop all legal action. “That is unacceptable,” Dohrnii Labs said.
“The 4,000 DHN tokens in question are user deposits — not negotiable assets. The right to withdraw these funds should never be up for discussion,” Dohrnii Labs added.
Chancellor Rachel Reeves is poised to deliver an update on the health of the British economy on Wednesday.
The spring statement is not a formal budget – as Labour pledged to only deliver one per year – but rather an update on the economy and any progress since her fiscal statement last October.
While it’s not billed as a major economic event, Rachel Reeves has a big gap to plug in the public finances and speculation has grown she may have to break her self-imposed borrowing rules.
Here, Sky News explains everything you need to know.
What is the spring statement?
The spring statement is an annual speech made by the chancellor in the House of Commons, in which they provide MPs with an update on the overall health of the economy and Office for Budget Responsibility (OBR) forecasts.
It is one of two major financial statements in the financial year – which runs from 1 April to 31 March.
The other is the autumn budget, a more substantial financial event in which the chancellor sets out a raft of economic policy for the year ahead.
Typically, the spring statement – which was first delivered by ex-chancellor Phillip Hammond in 2018 – gives an update on the state of the economy, and details any progress that has been made since the autumn budget.
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Sam Coates previews the chancellor’s announcements
When will Rachel Reeves deliver it?
The OBR, which monitors the government’s spending plans, will publish its forecast on the UK economy on 26 March.
It is required to produce two economic forecasts a year, but the chancellor said she would only give one budget a year to provide stability and certainty on upcoming tax changes.
The OBR will also provide an estimate on the cost of living for British households, and detail whether it believes the Labour government will adhere to its own rules on borrowing and spending.
The chancellor will then present the OBR’s findings to the House of Commons, and make her first spring statement.
This will be responded to by either Conservative leader Kemi Badenoch or shadow chancellor Mel Stride.
Image: Rachel Reeves is looking to plug gaps in the UK’s finances. Pic: PA
Why does it matter?
The UK economy is thought to be underperforming – potentially due to global factors, like Donald Trump’s trade tariffs – and there are rumours that the chancellor could consider breaking her own rules on borrowing in response.
The economy contracted slightly in January, while inflation has climbed to a 10-month high of 3%. Meanwhile, the government has committed to boosting defence spending to 2.5% of GDP by 2027 – an expensive task.
Ms Reeves’s fiscal rules mean she cannot borrow for day-to-day spending – leaving cuts as one of her only options. Her other “non-negotiable” is to get debt falling as a share of national income by the end of this parliament.
It is expected that welfare cuts will be part of the spring statement package to help the chancellor come within her borrowing limit.
In short, the Treasury believes Ms Reeves must maintain £10bn in headroom after months of economic downturn and geopolitical events since last October’s budget.
It is widely expected the OBR will confirm that this financial buffer has been wiped clean.
Where can I watch the spring statement?
The spring statement will be delivered in the House of Commons on Wednesday 26 March, directly after Prime Minister’s Questions, which is usually finished by around 12.30pm.
You’ll be able to keep up to date on Sky News – and follow live updates in the Politics Hub.
The US Treasury Department says there is no need for a final court judgment in a lawsuit over its sanctioning of Tornado Cash after dropping the crypto mixer from the sanctions list.
In August 2022, Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash after alleging the protocol helped launder crypto stolen by North Korean hacking crew the Lazarus Group, leading to a number of Tornado Cash users filing a lawsuit against the regulator.
After a court ruling in favor of Tornado Cash, the US Treasury dropped the mixer from its sanctions list on March 21, along with several dozen Tornado-affiliated smart contract addresses from the Specially Designated Nationals (SDN) list, and has now argued “this matter is now moot.”
Because Tornado Cash has been dropped from the sanctions list, the US Treasury Department argues there is no need for a final court judgment in the lawsuit. Source: Paul Grewal
“Because this court, like all federal courts, has a continuing obligation to satisfy itself that it possesses Article III jurisdiction over the case, briefing on mootness is warranted,” the US Treasury said.
However, Coinbase chief legal officer Paul Grewal said the Treasury’s hope to have the case declared moot before an official judgment can be made isn’t the correct legal process.
“After grudgingly delisting TC, they now claim they’ve mooted any need for a final court judgment. But that’s not the law, and they know it,” he said.
“Under the voluntary cessation exception, a defendant’s decision to end a challenged practice moots a case only if the defendant can show that the practice cannot ‘reasonably be expected to recur.’”
Grewal pointed to a 2024 Supreme Court ruling that found a legal complaint from Yonas Fikre, a US citizen who was put on the No Fly List, is not moot by taking him off the list because the ban could be reinstated again at a later date.
“Here, Treasury has likewise removed the Tornado Cash entities from the SDN, but has provided no assurance that it will not re-list Tornado Cash again. That’s not good enough, and will make this clear to the district court,” Grewal said.
Six Tornado Cash users led by Ethereum core developer Preston Van Loon, with the support of Coinbase, sued the Treasury in September 2022 to reverse the sanctions under the argument that they were unlawful.
In August 2023, a Texas federal court judge sided with the US Treasury, ruling that Tornado Cash was an entity that may be designated per OFAC regulations. On appeal, a three-judge panel ruled in November that Treasury’s sanctions against the crypto mixer’s immutable smart contracts were unlawful.
US Treasury had a 60-day window to challenge the decision, which it did; however, the US court sided with Tornado Cash, overturning the sanctions on Jan. 21 and forcing the government agency to remove the sanctions by March.