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.
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.
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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.
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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.”
Image: Robert Jenrick and Kemi Badenoch. Pics: PA
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.
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4:31
October: Jenrick v Badenoch for Tory leadership
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.”
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1:20
‘All candidates should get job in shadow cabinet’
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.”
Image: (L-R) Ms Badenoch, Mr Jenrick, and previous leadership rivals James Cleverly and Tom Tugendhat at the Conservative Party conference. Pic: PA
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.”
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3:55
Grant Shapps’ warning for next Tory leader
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.
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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.
Crypto companies seeking a US federal bank charter should be treated no differently than other financial institutions, says Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC).
Gould told a blockchain conference on Monday that some new charter applicants in the digital or fintech spaces could be seen as offering novel activities for a national trust bank, but noted “custody and safekeeping services have been happening electronically for decades.”
“There is simply no justification for considering digital assets differently,” he added. “Additionally, it is important that we do not confine banks, including current national trust banks, to the technologies or businesses of the past.”
The OCC regulates national banks and has previously seen crypto companies as a risk to the banking system. Only two crypto banks are OCC-licensed: Anchorage Digital, which has held a charter since 2021, and Erebor, which got a preliminary banking charter in October.
Crypto “should have” a way to supervision
Gould said that the banking system has the “capacity to evolve from the telegraph to the blockchain.”
He added that the OCC had received 14 applications to start a new bank so far this year, “including some from entities engaged in novel or digital asset activities,” which was nearly equal to the number of similar applications that the OCC received over the last four years.
Comptroller of the Currency Jonathan Gould giving remarks at the 2025 Blockchain Association Policy Summit. Source: YouTube
“Chartering helps ensure that the banking system continues to keep pace with the evolution of finance and supports our modern economy,” he added. “That is why entities that engage in activities involving digital assets and other novel technologies should have a pathway to become federally supervised banks.”
Gould brushes off banks’ concerns
Gould noted that banks and financial trade groups had raised concerns about crypto companies getting banking charters and the OCC’s ability to oversee them.
“Such concerns risk reversing innovations that would better serve bank customers and support local economies,” he said. “The OCC has also had years of experience supervising a crypto-native national trust bank.”
Gould said the regulator was “hearing from existing national banks, on a near daily basis, about their own initiatives for exciting and innovative products and services.”
“All of this reinforces my confidence in the OCC’s ability to effectively supervise new entrants as well as new activities of existing banks in a fair and even-handed manner,” he added.
The US Commodity Futures Trading Commission has issued updated guidance for tokenized collateral in derivatives markets, paving the way for a pilot program to test how cryptocurrencies can be used as collateral in derivatives markets.
Collateral in derivatives markets serves as a security deposit, acting as a guarantee to ensure that a trader can cover any potential losses.
The digital asset pilot, announced by CFTC acting chairman Caroline Pham on Monday, will allow futures commission merchants (FCM) — a company that facilitates futures trades for clients — to accept Bitcoin (BTC), Ether (ETH) and Circle’s stablecoin USDC (USDC) for margin collateral.
Pham said in a statement that the pilot program also “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
As part of the pilot, participating FCMs will be subject to strict reporting criteria, which require weekly reports on total customer holdings and any significant issues that may affect the use of crypto as collateral.
The CFTC’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk also issued updated guidance on the use of tokenized assets as collateral in the trading of futures and swaps.
The guidance covers tokenized real-world assets, including US Treasury’s money market funds, and topics such as eligible tokenized assets, legal enforceability, segregation and control arrangements.
Pham said in an X post on Monday that the “guidance provides regulatory clarity and opens the door for more digital assets to be added as collateral by exchanges and brokers, in addition to US Treasurys and money market funds.”
The Market Participants Division also issued a “no-action position” on specific requirements regarding the use of payment stablecoins as customer margin collateral and the holding of certain proprietary payment stablecoins in segregated customer accounts.
A CFTC Staff Advisory that restricted FCMs’ ability to accept crypto as customer collateral, Staff Advisory 20-34, was also withdrawn because it is “outdated and no longer relevant,” in part due to the GENIUS Act.
Crypto execs back CFTC move
Several crypto executives applauded the move by the CFTC.
Katherine Kirkpatrick Bos, the general counsel at blockchain company StarkWare, said the use of “tokenized collateral in the derivatives markets is MASSIVE.”
“Atomic settlement, transparency, automation, capital efficiency, savings. Feels abrupt but who recalls the tokenization summit in 2/24, a glimmer of hope in the darkness,” she said.
Coinbase chief legal officer Paul Grewal also supported the action, calling Staff Advisory 20-34 a “concrete ceiling on innovation.”
“It relied on outdated info, went well beyond the bounds of regulation and frustrated the goals of the PWG.”
Salman Banaei, the general counsel at layer-1 blockchain the Plume Network, said it was a “major move” by the CFTC, and another push toward wider adoption.
“This is a step toward the use of onchain infra to automate settlement for the biggest asset class in the world: OTC derivatives, swaps,” he added.
The day after Sir Keir Starmer said he wanted Angela Rayner back in the cabinet, she showed Labour MPs what they’ve been missing.
The former deputy prime minister delighted Labour backbenchers with a powerful Commons speech defending her workers’ rights legislation on Monday evening.
With the House of Lords locked in a battle of parliamentary “ping pong” with MPs, she told ministers: “Now is not the time to blink or buckle.”
Her very public intervention came amid claims that her next move has the Labour Party on tenterhooks and that she’s the favourite to succeed Sir Keir if she wants the job.
And her speech, delivered from notes and clearly meticulously prepared, appeared to send a message to Labour MPs: I’m here to make a comeback.
The government’s flagship Employment Rights Bill was championed by Ms Rayner when she was deputy PM, in the face of bitter opposition from the Conservatives.
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In a bid to end the deadlock with the Lords, ministers have backed down on unfair dismissal protection from day one, proposing a compromise of six months.
Backing the compromise, brokered with the TUC, Ms Rayner said: “I know ministers had faced difficult decisions and difficult discussions with the employers and worker representatives.
“But I strongly believe that the work that has been done has been necessary, and we should be able to move forward now.”
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1:19
Could Rayner come back?
Attacking the upper chamber for delaying the legislation, she said: “There is now no more time to waste.
“Vested interests worked with the Tories and the Lib Dems and, cheered on by Reform and backed by the Greens, to resist the manifesto on which we were elected.
“And now there can be no excuses. We have a mandate for a new deal for working people, and we must, and we will deliver it.
And she concluded: “It has been a battle to pass this bill, but progress is always a struggle that we fought for. Its passage will be a historic achievement for this Labour government.
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1:25
Angela Rayner’s resignation speech
“It will benefit working people now and into the future. Now is not the time to blink or buckle. Let’s not waste a minute more. It’s time to deliver.”
It was the sort of fighting talk and defiance of the government’s opponents that will have cheered up Labour MPs and boosted her hopes of a comeback and even a leadership bid.
It came as speculation over Sir Keir’s future grows more frenzied by the day, with claims that even some of his own supporters have begun the hunt for his successor.
The thinktank that ran his leadership campaign in 2020, Labour Together, is reported to be canvassing party members on candidates to replace him.
Image: Wes Streeting and Angela Rayner.
There was even a claim last week that allies of Wes Streeting were sounding out Labour MPs about a pact with Ms Rayner and a joint ticket for the leadership.
The health secretary dismissed that claim as a “silly season story”, while a Rayner ally said: “There’s no vacancy and there’s no pact”. They added that she will not “be played like a pawn”.
Mr Streeting did, however, start speculation himself when he said in his Labour conference speech: “We want her back. We need her back.”
Fuelling more speculation, Sir Keir went further than he had previously on Sunday, when he was asked in an Observer interview if he missed her and replied; “Yes, of course I do. I was really sad that we lost her.”
And asked if she would return to the cabinet, the prime minister said: “Yes. She’s hugely talented.”
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0:42
‘Angela Rayner, this achievement is yours.’
Sir Keir also described Ms Rayner, who left school at 16 without any qualifications, as “the best social mobility story this country has ever seen”.
But a swift return to the cabinet would be hugely controversial, because the PM’s ethic adviser, Sir Laurie Magner, ruled that she breached the ministerial code by underpaying stamp duty when she bought a flat.
But she has been linked to speculation about possible efforts to remove Sir Keir if – as predicted – Labour performs badly in the Scottish, Welsh and local elections next May.
Her supporters also claim she will eventually be cleared by HMRC over her stamp duty breach, clearing the way for her to come back.
And her latest speech – combative, defiant and yet loyal – will have boosted her hopes, and reminded Labour MPs what they’ve missed since she quit in September.