Robert Jenrick or Kemi Badenoch to be crowned Tory leader today – but whoever wins contest faces daunting task

Published

7 months ago

November 2, 2024

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The next leader of the Conservative party will be announced today, following a run-off between Kemi Badenoch and Robert Jenrick.

The winner will replace Rishi Sunak as the leader of the opposition, after he led the party to a crushing election defeat in July, losing almost two thirds of its MPs.

His successor faces the daunting task of rebuilding the Tory party after years of division, scandal and economic turbulence, which saw Labour eject them from power by a landslide.

Politics latest: Budget given ‘clean bill of health’

Voting by tens of thousands of party members, who need to have joined at least 90 days ago, closed on Thursday. Both candidates have claimed the result will be close.

The Conservatives do not disclose how many members the party has, but the figure was about 172,000 in 2022, and research suggests they are disproportionately affluent, older white men.

Both candidates are seen as on the party’s right wing. Kemi Badenoch, 44, is the former trade secretary, who was born in London to middle-class Nigerian parents but spent most of her childhood in Lagos.

After moving back to the UK aged 16, she stayed with a family friend while taking her A-levels, and has spoken of her time working at McDonald’s as a teenager.

Having studied computer science at Sussex University, she then worked as a software engineer before entering London politics and becoming MP for Saffron Walden in Essex in 2017.

Ms Badenoch prides herself on being outspoken and has said the Conservatives lost because they “talked right and governed left”. But her critics paint her as abrasive and prone to misspeaking.

At the Conservative Party conference, a crucial staging post in the contest, she began her speech which followed three other male candidates by saying: “Nice speeches, boys, but I think you all know I’m the one everyone’s been waiting for.”

Her rival Robert Jenrick, 42, has been on a political journey. Elected as a Cameroon Conservative in 2014, he was one of the rising star ministers who swung behind Boris Johnson as prime minister and was later a vocal supporter of Rishi Sunak.

But he resigned as immigration minister in December 2023, claiming Sunak’s government was breaking its promises to cut immigration.

The MP for Newark in Nottinghamshire says he had a “working-class” upbringing in Wolverhampton. He read history at Cambridge University and worked at Christie’s auctioneers before winning a by-election.

After a long ministerial career where he was seen as mild-mannered, he is said to have been “radicalised” by his time at the Home Office and has focused his campaign on a promise to slash immigration and leave the European Convention on Human Rights to “stand for our nation and our culture, our identity and our way of life”.

He has put forward more policies than his rival, but attracted criticism for some of his claims – including that Britain’s former colonies owe the Empire a “debt of gratitude”.

A survey of party members by the website Conservative Home last week put Kemi Badenoch in the lead by 55 points to Mr Jenrick’s 31 with polls still open.

James Cleverly, the shadow home secretary and seen as a more centrist candidate was knocked out of the race last month. One of his supporters, the Conservative peer and former Scotland leader Ruth Davidson, has predicted neither Mr Jenrick nor Ms Badenoch will stay as leader until the next general election.

She told the Sky News Electoral Dysfunction podcast: “I’ve now voted for Robert Jenrick, who I don’t think will win. I struggle to believe that the person that’s the next leader of the Tory party is going to take us into the next election in five years’ time and I struggle to believe that they’re going to leave the leadership at a time of their own choosing.”

Henry Hill, deputy editor of ConHome, said the contest which Tory officials decided would take almost three months, has not led to enough scrutiny – because the MP rounds of voting took so long.

“We know much less [about them] than I think we should”, he said. “The problem with this contest is the party decided to go really long, but at the same time, they confined the membership vote – with just the final two – to just three weeks, and ballots dropped halfway through that process.

“We had months and months with loads of candidates in the race, but also that was the MP rounds and you’d think the MPs will have a chance to get to know these people already. For the actual choice the members are going to be making, there has been barely any time to scrutinise that.

He added: “I think the party remembers Liz Truss and Rishi Sunak taking weeks to take lumps out of each other in 2022 and wanted to avoid that. But it means the two campaigns haven’t really been attacking each other and that tends to be how you expose people’s weaknesses.”

After 14 years in government under five prime ministers, it is not since David Cameron in 2005 that the party has elected a leader to go into opposition – with a long road until the next general election.

Veteran ex-MP Graham Brady, who served as chair of the backbench 1922 committee, told Sky News that the position was more hopeful than after the 1997 landslide.

He said: “The biggest challenge for a leader of the opposition in these circumstances is just to be heard, to be noticed. I came into the House of Commons in 1997 at the time of that huge Blair landslide.

“We worked very, very hard in opposition during that parliament, and at the next general election [in 2001], we made a net gain of one seat.

“Now, there is a huge difference between now and 1997. The Blair government remained very popular and Tony Blair personally remained very popular through that whole parliament and beyond. And in 100 days or so, Keir Starmer has already fallen way behind.

“So I think we’ve got a great opportunity. I don’t think we’re up against an insuperable challenge, but it’s a big challenge.”

Kate Fall, now Baroness Fall, worked with Lord Cameron in opposition and later in Downing Street when he was prime minister in the coalition government. She said the next leader needed to keep the party “united and disciplined”.

“The first thing is to think about why we lost. The second thing is what do we have to say? Then they need to be agile, they need to be reactive, but pick their fight, not fight over everything. They also need to get out and about,” she said.

Lord Cameron travelled around the country holding question and answer sessions called Cameron Direct. “When you’re prime minister, you can’t do that as much as you like. But as leader of the opposition you can get out, talk to people, we thought it was very trendy to have a podcast and so on.”

She says this week’s budget gives the next leader “an ideological divide” to get into, but warns that the next leader must not risk alienating former Tories who switched to Labour and the Lib Dems.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

The leader of the opposition will cut their teeth at weekly Prime Minister’s Questions sessions opposite Sir Keir Starmer and respond to set piece events such as the budget.

They will need to get the party’s campaign machine ready for the local elections in England in May 2025, Scottish elections in 2026 and the next general election expected in 2029.

Politics

Who’s got the charm, cash and code to be a crypto hub?

Published

22 mins ago

May 19, 2025

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Who’s got the charm, cash and code to be a crypto hub?

Kazakhstan, the Maldives and Pakistan have recently outlined ambitions to position themselves as crypto hubs and build out their digital economies.

Historically, these countries haven’t been top of mind for global crypto firms — though Kazakhstan did have a brief moment in the spotlight as a go-to destination for Bitcoin (BTC) miners after China’s mining ban.

Meanwhile, established financial centers are now in a race to become the world’s leading crypto hub by finding the right balance of regulation, talent, capital and infrastructure.

Here’s how five of them are backing their crypto dreams.

Singapore is the crypto hub with parental guidance

Singapore has long stood out as a financial hub, bolstered by its AAA credit rating, low corporate tax rates and pro-business regulations. With the emergence of digital assets, the Lion City is among the front-runners in the crypto hub race.

Singapore was among the early movers in crypto regulation. Its Payment Services Act (PSA) of 2019 — enacted in 2020 — was one of Asia’s first comprehensive legal frameworks that covered crypto activities.

The PSA uses the term “digital payment token” (DPT) to define digital representation of value that can be transferred, stored or traded electronically — like crypto.

At the time of writing, there are 33 DPT service providers licensed by the Monetary Authority of Singapore (MAS), the city-state’s central bank. Casper Johansen, co-founder of Singapore- and Hong Kong-based Spartan Group, said license approvals have moved at a measured pace, giving faster-moving hubs like Dubai room to catch up.

“Singapore is more of an institutional financial hub than a retail financial hub,” Johansen said, alluding to the city-state’s limitations on crypto marketing to retail investors.

“The ban on marketing to retail has not affected Singapore’s position as a global crypto hub. Crypto firms set up in Singapore for the low and transparent taxes, strong regulatory framework and rule of law, world-class professional services, ease of living and global connectivity,” Johansen added.

But cracks have emerged recently, particularly around immigration and hiring policy. In late 2024, concerns flared when the CEO of blockchain analytics firm Nansen, Alex Svanevik, shared that he was denied permanent residency. The government has ramped up efforts to prioritize local hiring amid growing political sensitivity over foreign labor.

UAE rolls out the welcome mat for crypto hub status

Unlike other crypto hub contenders, Dubai has a dedicated digital asset regulator, the Virtual Assets Regulatory Authority (VARA).

Its wide-ranging licensing regime provides clear guidelines — even for NFT platforms — which major economies like the European Union have yet to address. The EU’s Markets in Crypto-Assets (MiCA) framework currently excludes NFTs.

VARA’s clarity is appealing to companies frustrated by regulatory uncertainty elsewhere. Binance, a borderless exchange with no official head office, has had to rethink that model under global regulatory pressure — and the exchange’s ties to the UAE have been growing.

Richard Teng, former CEO of free zone Abu Dhabi Global Market, took over as the CEO of Binance after Zhao, and has recently hinted that UAE is a strong candidate for the exchange’s headquarters, though a decision hasn’t been made yet.

The UAE also provides its own incentives, such as no personal income tax and free zones like the Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) offer 0% corporate tax advantages and 100% foreign ownership.

Crypto firms have reported easier access to banking services in Dubai, which is an improvement over the challenges companies say they’ve faced in the US under “Operation Chokepoint 2.0.”

Hong Kong makes crypto hub push with retail access and staking ETFs

Hong Kong has long acted as a financial gateway to mainland China, where crypto activities like mining and trading remain banned.

Previously, the city had a voluntary licensing regime, when only OSL and HashKey were licensed to serve institutions and professional investors. In Hong Kong, professional investors are legally defined as those with portfolios worth at least 8 million Hong Kong dollars (about $1 million).

It was later updated to the mandatory regime, launched in 2023, which opened the doors to retail.

The shift to mandatory licensing marked a turning point. OSL and HashKey became the first exchanges authorized to serve retail investors, while firms like Bybit and OKX withdrew their applications and exited the market. As of now, 10 platforms are licensed, while 15 have either withdrawn or been rejected.

Hong Kong has made further strides with the listing of Bitcoin and Ether (ETH) ETFs, and recently approved staking within Ether ETFs, which is not yet permitted in the US. It has also introduced stablecoin sandboxes under the supervision of the Hong Kong Monetary Authority to trial approved digital assets in a controlled environment.

“Sandboxes are an experiment, so too are staking ETFs,” said Kelvin Koh, a Spartan Group co-founder. “The key point is that these experiments are happening in Hong Kong.”

Hong Kong recently released its ASPIRe roadmap in February 2025, which aims to foster blockchain innovation and fill regulatory gaps to set the city up as a global crypto hub.

Trump 2.0 dreams of crypto hub

US crypto firms were stuck in regulatory gridlock under the Securities and Exchange Commission formerly led by Gary Gensler, whose aggressive “regulation by enforcement” strategy triggered years-long legal battles.

That changed with the inauguration of President Donald Trump, who has embraced a crypto-friendly stance. The SEC has since dropped multiple high-profile cases and investigations, including those against Coinbase, Uniswap and Consensys, signaling a shifting regulatory climate that is prepared to welcome back crypto to US soil.

President Trump declares the US the future capital of AI and crypto. Source: The White House

Binance.US resumed US dollar services in February after 18 months of restriction that followed enforcement action from the Commodity Futures Trading Commission, a $2.7-billion settlement and a four-month prison sentence for ex-Binance CEO Changpeng Zhao.

Rival exchange OKX reentered the US market in April 2025 after a $500-million settlement with the Department of Justice. Also in April, Nexo announced — during an event with Trump’s son in attendance — that it rekindled its American dream after scrapping it in 2022.

Traditional finance is warming up, with institutional investments flooding into Bitcoin and Ether spot ETFs, provided by some of the world’s largest asset managers, including the $11.5-trillion giant BlackRock.

The financial love affair goes both ways as crypto firms are also increasingly open to integrating into the existing US infrastructure.

Galaxy Digital listed on Nasdaq on May 16, Circle is considering another IPO attempt, and Hong Kong’s blockchain unicorn Animoca Brands is now eyeing a New York listing, citing Trump’s stance on crypto.

The world’s largest financial center, New York City, is making its own move. Mayor Eric Adams said on May 12 that the Big Apple is “open for business” with crypto companies.

UK’s crypto hub push goes quiet, but London’s still calling

In 2023, then-Prime Minister Rishi Sunak launched a bold vision to make the UK a global crypto hub, pushing for stablecoins to be recognized as regulated payment instruments and outlining a broader framework to integrate crypto into the country’s financial system.

That momentum translated into real movement: In April 2025, the UK Treasury released near-final legislation aimed at bringing crypto assets — like trading platforms, stablecoins and staking services — within the country’s regulatory perimeter.

The Financial Conduct Authority (FCA) is now consulting on how to regulate intermediaries, lending and other core parts of the ecosystem, signaling continued regulatory development.

But while the machinery of regulation keeps turning, the political will has cooled. As Arvin Abraham, partner at law firm Goodwin’s private equity group, told Cointelegraph, crypto was once central to Sunak’s competitiveness agenda, but under the current Labour government, that focus has faded.

The new Financial Services Growth and Competitiveness Strategy, spearheaded by Chancellor Rachel Reeves, highlights fintech as a priority without a focus solely on crypto.

“The UK does not feel like it’s prioritizing it as much as it was a few years ago,” Abraham said.

Abraham added the UK remains “one of the best places to set up a new startup,” especially for early-stage capital raising.

He points to generous tax incentives for angel investors and the unique convergence of finance and startups in London, calling it “probably one of the best cities in the world for fintech-type businesses.”

In that sense, even without headline-grabbing crypto policy, the UK’s structural appeal still draws Web3 firms — just now with a quieter backdrop.

Magazine: South Africa’s digital-nomad crypto hub: Cape Town, Crypto City Guide

Politics

UK-EU trade deal: What is in the Brexit reset agreement?

Published

22 mins ago

May 19, 2025

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UK-EU trade deal: What is in the Brexit reset agreement?

The UK and the EU have agreed a new trade deal – five years after Brexit kicked in.

Following six months of talks after Sir Keir Starmer promised a fresh deal when he became prime minister last July, the two sides have come to an agreement.

Politics latest: Starmer says ‘Britain is back’

Here are the details:

eGates

British passport holders will be able to use more eGates in Europe to avoid the long border control queues that have become the norm since Brexit in many EU countries.

Pet travel

Pet passports will be brought back so cats and dogs coming from the UK will no longer need pricey animal health certificates for every trip. After Brexit, pet owners had to get a certificate from a vet in the UK then a vet in the EU before returning.

Red tape on food and drink sales

A new sanitary and phytosanitary (SPS) deal has been agreed to reduce red tape currently needed to import and export food and drink between the UK and the EU.

There is no time limit to this part of the deal, which the government says will reduce the burden on businesses and reduce lorry queues at the border.

The “vast majority” of routine checks and certificates for animal and plant products will be removed completely, including between Great Britain and Northern Ireland.

The government says this could lower food prices and increase choice on supermarket shelves.

Some British foods that have been prevented from being sold in the EU since Brexit will be allowed back in again, including burgers and sausages.

Fishing rights

The current fishing deal agreed in 2020 will continue for 12 years.

There will be no increase in fish quotas.

EU fishing vessels can fish in UK waters, but they require a valid licence, and there are annual negotiations on access and share of stock.

The UK government has announced a £360m investment into the fishing industry to go towards new technology and equipment to modernise the fleet, train the workforce, help revitalise coastal communities, support tourism and boost seafood exports.

Defence

A new security and defence partnership has been agreed so the UK defence industry can participate in the EU’s plan for a £150bn defence fund called Security Action for Europe (SAFE). This will support thousands of British jobs.

The UK and EU will also enhance cooperation over maritime security and accident reporting.

Carbon tax

The deal will see closer co-operation on emissions by the UK and the EU, linking their own emissions trading systems.

The UK’s scheme sets a cap on the total amount of greenhouse gas emissions allowed from the power generation sector, energy-intensive industries and aviation, with companies issued allowances that they can trade with each other.

Under the deal, UK businesses will avoid being hit by the EU’s carbon tax, due to come in next year, which would have handed £800m to the EU.

Steel

British steel exports will be protected from new EU rules and tariffs to save UK steel £25m a year.

Further talks:

Youth mobility scheme

The UK and the EU have agreed to more negotiations on a youth mobility scheme to allow people aged 18-30 in the UK and the EU to move freely between countries for a limited period.

The scheme would include visas for young people working, studying, volunteering, travelling and working as au pairs.

Erasmus

The EU and the UK have agreed they should work towards an Erasmus programme, the student exchange programme which was scrapped when Brexit took place.

Catching criminals

The two sides have agreed to enter talks about the UK having access to EU facial image data to help catch dangerous criminals.

They will also encourage Europol and the UK’s National Crime Agency to cooperate over criminal threats and exchanging information about terrorism and other serious crimes.

Migration

The two sides have agreed to further work on finding solutions to tackle illegal migration, including on returns and a joint commitment to tackle Channel crossings.

They will also begin talks on making it easier for people to get visas to work in the UK and the EU and recognising professional qualifications.

Analysis sharing on visa abuse by third country nationals will also be considered.

Electricity

The UK and the EU said they should explore the UK’s participation in the EU’s internal electricity market, including in its trading platforms.

Politics

Does the great EU reset work?

Published

22 mins ago

May 19, 2025

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👉Listen to Politics at Sam and Anne’s on your podcast app👈

Sky News’ Sam Coates and Politico’s Anne McElvoy serve up their essential guide to the day in British politics.

It’s EU summit day – so what will Keir Starmer agree? It’s been described as an historic summit and will be a reset of relations since Brexit. It’s expected that the EU and the UK will sign a security and defence partnership. But so far nothing is set in stone.

Plus, how sincere is Vladimir Putin’s interest in a ceasefire?