Sir Keir Starmer has accused the Tories of using Brexit to deliberately run an “open borders experiment” in the UK.
The prime minister said the British people are “owed an explanation” after revised figures showed net migration reached a record high of almost one million under the previous government’s watch.
Data from the Office for National Statistics (ONS) shows net migration for the year to June 2023 reached 906,000 – a big jump on what was previously thought and four times higher than pre-Brexit figures in 2019.
In a speech from Downing Street, Sir Keir said: “Failure on this scale isn’t just bad luck. It isn’t a global trend or taking your eye off the ball.
“No, this is a different order of failure. This happened by design, not accident.
“Policies were formed deliberately to liberalise immigration. Brexit was used for that purpose – to turn Britain into a one nation experiment in open borders.”
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Starmer quizzed over net migration
The ONS’s previous estimate for the year to 2023 was 740,000, which at the time was still a record amount.
The stats show net migration – the difference between people coming to live in and leaving the UK – is down 20% this year from the revised high of 2023, standing at an estimated 728,000.
Tory leader Kemi Badenoch yesterday admitted her party, which made repeated pledges to cut net migration by tens of thousands during their 14 years in office, had got immigration “wrong”.
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Badenoch asked about illegal immigration
But Sir Keir said their failures were “unforgivable” and can’t be separated from the Conservative Party’s “refusal to do the hard yards on skills, on welfare reform, on giving our young people opportunities”.
“Clearly the vast majority of people who entered this country did so to plug gaps in our workforce,” he added.
In his press conference, Sir Keir said Labour would reform the points-based immigration system to require companies that are heavily reliant on foreign workers to also train British people.
This will go alongside a crackdown on abuse of the visa system, including banning employers who flout the rules from hiring overseas staff for two years.
‘Landmark’ deal struck with Iraq
Sir Keir’s speech came as Home Secretary Yvette Cooper announced a “landmark” deal with Iraq, intended to crack down on the people smuggling fuelling illegal immigration.
Iraq is one of the top 10 countries people travelling in small boats come from (3,002 in the year to June). Around £300k of UK government money will be given to the country to help it with border security and law enforcement.
Image: Home Secretary Yvette Cooper and Iraq’s Minister of Interior Abdul Amir Al-Shimmari shake hands after signing a Joint Statement on Border Security. Pic: PA
Home Office data released on Thursday also showed the cost of the UK’s asylum system has risen to £5bn, the highest level of spending on record, and up by more than a third in a year.
On Wednesday, Tory leader Ms Badenoch said there had been a “collective failure of political leaders from all parties over decades” to grasp migration, adding: “On behalf of the Conservative Party, it is right that I as the new leader accept responsibility and say truthfully, we got this wrong.”
Other Conservatives, including former home secretary Suella Braverman, sought to take credit for the numbers coming down in the year to July 2024, which the ONS said was driven mainly by a fall in the number of dependants arriving in the UK on study visas from outside the EU.
The US Federal Reserve has withdrawn a 2023 guidance that limited how Fed-supervised banks, including uninsured ones, engaged with crypto, as US regulators continue to pivot positively toward digital assets.
The 2023 guidance required uninsured banks to follow the same rules as federally insured institutions, based on the principle that similar activities pose similar risks and should be subject to identical regulation.
This prevented uninsured banks from engaging in activities that weren’t permitted for national banks, like crypto services, which automatically disqualified Fed membership because the institution’s primary activities weren’t allowed.
Fed says financial system has evolved since 2023
The Fed said a key reason for withdrawing the guidance was that it was outdated and “the financial system and the Board’s understanding of innovative products and services have evolved.”
“As a result, the 2023 policy statement is no longer appropriate and has been withdrawn,” it said.
A master account with the Fed enables a financial institution to hold balances directly with the US central bank and access its core payment systems, allowing for payment settlement in central bank money rather than relying on another bank as an intermediary.
“The Fed broke the law by citing this very guidance in the Custodia denial, even tho the guidance hadn’t become official yet, that didn’t happen until Feb 2023,” Long said.
“But most of that team is now gone or out of power at the Fed. Nature is healing. Thank you VCS Bowman & Gov Waller!” she added.
New guidance to boost bank innovation
The move on Wednesday came as the Federal Reserve issued new guidance to establish a formal pathway for both insured and uninsured Federal Reserve-supervised state member banks to pursue “innovative activities,” such as cryptocurrencies, provided risk-management expectations are met, according to a statement on Wednesday by the Fed.
Fed vice chair for Supervision Michelle Bowman said that by “creating a pathway for responsible, innovative products and services, the Board is helping ensure that the banking sector remains safe and sound while also modern, efficient, and effective.”
Fed decision wasn’t unanimous
Fed Governor Michael Barr dissented to the decision, arguing that the principle of equal treatment among banks helps maintain a level playing field and prevents regulatory arbitrage.
“This principle continues to hold true today. Therefore, I cannot agree to rescind the current policy statement and adopt a new one that would, in effect, encourage regulatory arbitrage, undermine a level playing field, and promote incentives misaligned with maintaining financial stability. I dissent,” he said.
Binance, the world’s largest cryptocurrency exchange by trading volume, is considering a strategic reshuffling to strengthen its presence in the US market, a move that could see Binance co-founder Changpeng “CZ” Zhao’s majority stake in the company reduced.
Zhao’s controlling stake in Binance has been a “major hurdle” to the company expanding to strategically critical US states, according to Bloomberg, citing people familiar with the matter. Although no concrete plans have been announced, the conversation surrounding any potential action remains reportedly “fluid.”
The company is also considering partnerships with US-based companies, including asset manager BlackRock and decentralized finance (DeFi) platform World Liberty Financial (WLFI), which is linked to US President Donald Trump, to strengthen its footprint in the country.
Rumors of Binance’s return to the US began to circulate in October after Trump pardoned Zhao, fueled by speculation from crypto industry executives and comments that Zhao made on social media.
“Will do everything we can to help make America the capital of crypto and advance Web3 worldwide,” Zhao said in October after the pardon.
In June 2019, Binance announced that it would stop serving US customers, and a separate company, called Binance.US and operated by BAM Trading Services, was formed to provide regulatory-compliant services to US users.
In 2023, the US Securities and Exchange Commission alleged that Binance Holdings Ltd. operated both Binance.com and BAM Trading Services.
Binance.US does not feature crypto derivatives or access to the global Binance exchange’s liquidity and operates as a completely separate crypto exchange.
Cointelegraph reached out to Binance and Binance.US but did not receive a response by the time of publication.
The US is considered a key market for crypto exchanges and is ranked as the number two for global crypto adoption, according to Chainalysis’ 2025 Global Crypto Adoption Index. Expanding to the US would open up US liquidity to the world’s largest crypto exchange.
Binance claims the top spot among centralized crypto exchanges in terms of trading volume. Source: CoinGecko
Several US lawmakers voice opposition to the CZ pardon and the crypto industry
Trump’s pardon of Zhao in October drew backlash from several Democratic Party lawmakers in the US, including Massachusetts Senator Elizabeth Warren and California Congresswoman Maxine Waters.
Waters said the pardon was a form of pay-to-play and accused Trump of doing political favors for the crypto industry that “helped line his pockets.”
Warren, who is one of the most vocal critics of the crypto industry, also criticized the pardon, characterizing it as “corruption.”
The comments reflect pockets of resistance among some Democratic lawmakers to the crypto industry’s continued expansion in the US and could signal potential opposition to Binance returning to the US.