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A “loophole” that allowed a Palestinian family to be granted the right to come to the UK under a Ukrainian resettlement scheme was the subject of a lot of debate in the House of Commons today.

Both the prime minister and leader of the opposition criticised a decision by a judge to allow the family of six the right to enter the UK.

Sir Keir pledged to close the “loophole” after he was asked about it by Kemi Badenoch – but could not elaborate on what it was.

Sky News has read through the judgment given by Judge Hugo Norton-Taylor to understand what happened.

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Why did the family apply?

The family of six, a husband and wife and their children aged 18, 17, eight and seven, lived in Gaza and their homes were destroyed after the 7 October attacks and subsequent conflict.

They ended up living in a humanitarian zone and then a refugee camp.

In January 2024, the family applied to come to the UK via the Ukraine Family Scheme form, in a bid to join one of the parent’s brothers, who is a British citizen and has lived in the UK since 2007.

While they acknowledged they were not eligible for the Ukraine scheme, the family chose to apply in an attempt to use the Home Office‘s policy on “applications for entry clearance outside the rules”.

The Home Office rejected the request, saying they were not satisfied there were “compelling, compassionate circumstances” to justify a request outside the rules.

They also noted the lack of a resettlement scheme for Palestinians.

Read more:
Judge ‘wrong’ to let Gaza family settle in UK
Palestinian family allowed to settle in UK

The appeals

Despite the Home Office saying there were no grounds to appeal, the family launched one against the decision on human rights grounds.

A judge then ruled that the initial rejection constituted a rejection of human rights, and so allowed an appeal.

Part of this appeal was under Article Eight of the European Convention on Human Rights – the right to a family life between the man living in Britain and his family in Gaza.

This appeal was rejected, with a lack of a Palestinian resettlement scheme noted as a reason.

An appeal was launched at a higher tribunal – and one of the arguments was that the case should be considered on its own merits and not allow the lack of a Palestinian resettlement scheme to outweigh other arguments.

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The loophole

It is here that the “loophole” seems to have appeared.

At this point. Judge Norton-Taylor heard the case and allowed the appeal.

In his judgment, he stated that it was “wrong to have taken the absence of a resettlement scheme into account at all”.

The judge added that there was “no evidence” he had seen that the Home Office had made a deliberate decision not to implement a Palestinian resettlement scheme.

He also noted that the lack of immigration rules on a topic should not count against someone.

In layman’s terms, the argument seems to be that just because a scheme to resettle people does not exist it does not mean they are banned from coming to the UK via humanitarian routes.

The judgment said the absence of a “resettlement scheme was irrelevant” to their decision.

What next?

Judge Norton-Taylor went on to back the claim from the family in Gaza based on the ECHR and the right to a family life between them and their relative in Britain.

A Home Office spokesperson said: “The Ukraine Family scheme was clearly set out for Ukrainians. We have been clear that we do not agree with this judgment and we twice vigorously contested this case.

“As the prime minister made clear, article 8, the right to a family life, should be interpreted much more narrowly. It is for the government and Parliament to decide who should be covered by the UK’s safe and legal routes.

“We are pursuing all legal avenues to address the legal loophole which has been exploited in this case. The home secretary is urgently reviewing this case to ensure the correct processes are always followed and existing laws correctly interpreted.”

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They added that there was no evidence to support the argument and that data from the government shows a “very small” number of Gazans have been allowed to enter the UK – equal to roughly 150.

Sir Keir said he was planning to close the loophole, but it is not clear what this will entail.

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.

The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.

The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.

Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.

Prime Minister Sir Keir Starmer with President of the European Commission Ursula von der Leyen ahead of their bilateral meeting as he attends the European Political Community Summit (EPC) in Tirana, Albania. Picture date: Friday May 16, 2025. Leon Neal/PA Wire
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Ursula von der Leyen and Sir Keir had a brief meeting earlier this week. Pic: PA

If agreed, the deal will be the third in two weeks, following trade agreements with India and the US.

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Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.

“More money in the pockets of British working people, achieved through striking deals not striking poses.

“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”

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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.

Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.

“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”

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Moody’s downgrades US credit rating due to rising debt

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<div>Moody's downgrades US credit rating due to rising debt</div>

<div>Moody's downgrades US credit rating due to rising debt</div>

Moody’s credit rating agency downgraded the credit rating of the United States government from Aaa to Aa1, citing the rising national debt as the primary driver behind the reduction in creditworthiness.

According to the May 16 announcement from the rating agency, US lawmakers have failed to stem annual deficits or reduce spending over the years, leading to a growing national debt. The rating agency wrote:

“We do not believe that material multi-year reductions in mandatory spending and deficits will result from the current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.”

The credit downgrade is only one degree out of the 21-notch rating scale used by the company to assess the credit health of an entity.

Economy, US Government, United States, National Debt
An overview of the US national debt. Source: US National Debt Clock

Despite the negative short to medium-term credit outlook, Moody’s maintained a positive outlook on the long-term health of the United States, citing its robust economy and the status of the US dollar as the global reserve currency as strengths, reflecting “balanced” lending risks.

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Investors react to Moody’s US credit revision

Moody’s announcement drew mixed reactions from investors and market participants, leaving many unconvinced by the agency’s revised outlook.

Gabor Gurbacs, CEO and founder of crypto loyalty rewards company Pointsville, cited the rating agency’s previous credit assessments during times of financial stress as unreliable, signaling that the outlook was too optimistic.

“This is the same Moody’s that gave Aaa ratings to sub-prime mortgage-backed securities that led to the 2007-2008 financial crisis,” the executive wrote in a May 17 X post.

However, macroeconomic investor Jim Bianco argued that the recent Moody’s credit outlook does not reflect a real downgrade in the perception of US government creditworthiness and characterized the announcement as a “nothing burger.”

Economy, US Government, United States, National Debt
Interest rates on the 30-year US Treasury Bond spiked to nearly 5% in May 2025, signaling reduced long-term investor confidence in US debt. Source: TradingView

US government debt surpassed $36 trillion in January 2025 and shows no signs of slowing, despite recent efforts by Elon Musk and others to reduce federal spending and curtail the national debt.

As the debt climbs and investors lose faith in US government securities, bond yields will spike, causing the debt service payments to go up, further inflating the national debt.

This creates a vicious cycle as the government will have to entice investors with ever-greater yields to incentivize them to purchase government debt.

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Scotland’s former first minister Humza Yousaf hits out at Starmer’s ‘dog whistle’ stance on immigration

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Scotland's former first minister Humza Yousaf hits out at Starmer's 'dog whistle' stance on immigration

Former Scottish first minister Humza Yousaf has attacked Sir Keir Starmer for his “dog whistle” stance on immigration after the prime minister said the UK risked becoming an “island of strangers”.

In a piece penned by Mr Yousaf for LBC, the former leader of the Scottish National Party (SNP) repeated claims the prime minister’s recent remarks on immigration were a “modern echo” of Enoch Powell’s infamous 1968 Rivers Of Blood speech.

The prime minister stirred controversy earlier this week when he argued Britain “risked becoming an island of strangers” if immigration levels were not cut.

After many MPs criticised his language, Sir Keir rejected the comparison to Powell, with his official spokesperson saying migrants have made a “massive contribution” to society but his point was that the Tories “lost control of the system”.

First Minister Humza Yousaf speaks during a press conference at Bute House, his official residence in Edinburgh where he said he will resign as SNP leader and Scotland's First Minister, avoiding having to face a no confidence vote in his leadership. Mr Yousaf's premiership has been hanging by a thread since he ended the Bute House Agreement with the Scottish Greens last week. Picture date: Monday April 29, 2024.
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File pic: PA

In the LBC piece published on Saturday, Mr Yousaf said: “Powell’s 1968 speech warned of immigration as an existential threat to ‘our blood and our culture’, stoking racial panic that led directly to decades of hostile migration policies.

“Starmer’s invocation of ‘strangers’ is a modern echo – a dog-whistle to voters who blame migrants for every social ill, from stretched public services to the cost-of-living crisis.

“It betrays a failure to understand, or deliberately mask the fact that Britain’s prosperity depends on migration, on openness not building walls.”

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Starmer’s speech divides opinion

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Sir Keir made the comments at a news conference in which measures were announced to curb net migration, including banning care homes from recruiting overseas, new English language requirements for visa holders and stricter rules on gaining British citizenship.

The package is aimed at reducing the number of people coming to the UK by up to 100,000 per year, though the government has not officially set a target.

The government is under pressure to tackle legal migration, as well as illegal immigration, amid Reform UK’s surge in the polls.

Mr Yousaf concluded his article saying the UK was “on the brink of possibly handing the keys of No 10 to Nigel Farage”.

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