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Sir Keir Starmer used his first visit to Albania to announce the UK is keen to set up “return hubs” to deport migrants.

Formal discussions are under way, he said, with various countries. We don’t know which these are, but we know which aren’t keen – rather awkwardly, Albania.

Their prime minister, Edi Rama, said he remained “loyal” to their “marriage” with Italy – relations with other countries are “simply love”.

The Conservatives say the trip is therefore an embarrassment for Sir Keir. His team say this was never on the agenda for this trip, which is about joint policing and intelligence sharing.

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First of all, what are return hubs?

Essentially, return hubs are processing centres for people who have exhausted all their options to stay in the UK – including asylum applications, appeals and attempts to claim certain work or study visas.

They will be sent back to their home country, and while that happens, they can go to these return hubs – to prevent them absconding.

Officials said it would also prevent them starting a family, for example, and using that as part of their claim to stay in the UK.

Italy has one already but it’s not used

Giorgia Meloni’s government has been keen on these for some time, and has built two in Albania – at the port of Shengjin, and the village of Gjader – big enough for 36,000 people a year.

But both, which Sky News visited last year, are currently empty. The courts in Rome say they can’t be used until the European Court of Justice rules them safe. A ruling is expected next month.

Although, in a boost to the UK government’s plans, the UN’s refugee agency, has backed the principle of return hubs, if they meet human rights standards.

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PM confirms ‘return hubs’ plan

Is this like the Rwanda plan?

Spending millions on housing for migrants that then lies empty may sound familiar- but this is different to the Rwanda plan.

Agreed by the Conservatives, Rwanda was scrapped by Sir Keir when Labour won office – he said it was “unethical, unworkable and extortionate”.

The key difference is that under the Rwanda plan, asylum seekers would not be able to claim to stay in the UK – they would be deported and could only apply to stay in Rwanda. This was ruled unlawful by the Supreme Court.

Why did Albania say no?

The UK hasn’t always endeared itself to Albania, with comments by former home secretary Suella Braverman about an “invasion” of “Albanian criminals” causing anger here.

David Cameron cut short a much-anticipated visit, as foreign secretary, to just 89 minutes, when the 2024 general election was called – causing offence.

And Mr Rama pointedly talked about the “stigmatising” of Albanians living legally in the UK.

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Andi Hoxhaj, a Balkan expert at Kings’ College London, told me: “The UK just hasn’t put in the work. It’s the first visit by a UK prime minister 103 years after diplomatic relations were established. Starmer and Yvette Cooper understand this and want warmer relations. But it was wishful thinking that a return hub would be agreed.”

So who else might have one?

The government has been concentrating their efforts to “smash the gangs” on the Western Balkans.

The joint enforcement in Albania, has – according to the National Crime Agency – been a model which other countries could follow.

There are likely to be discussions at the European Political Community summit on Friday with countries such as Serbia, North Macedonia and Montenegro to scope out their interest, and the UK is hosting a Western Balkans summit in London in autumn 2025.

So, all is not lost – but there are big legal and logistical hurdles to overcome.

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Central banks testing smart contract toolkit under BIS Project Pine

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Central banks testing smart contract toolkit under BIS Project Pine

Central banks testing smart contract toolkit under BIS Project Pine

Central banks are experimenting with smart contracts to implement monetary policy in tokenized environments, signaling a growing interest in integrating blockchain technology into traditional finance (TradFi).

According to a joint research study by the Federal Reserve Bank of New York’s Innovation Center and the Bank for International Settlements (BIS) Innovation Hub Swiss Centre, smart contracts could offer central banks flexible, rapid-response tools in a tokenized financial system.

The study, dubbed Project Pine, tested a prototype “generic customizable monetary policy tokenized toolkit” for further research by central banks, according to a BIS report published May 15.

“The smart contract toolkit was fast and flexible,” the BIS wrote. “In hypothetical scenarios, the central bank was able to add and change tools instantly.”

The report emphasized that if tokenization becomes widely adopted for money and securities, smart contracts could play a central role in how monetary policy is executed.

Central banks testing smart contract toolkit under BIS Project Pine
Project Pine system overview. Source: BIS

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This marks a “first step” in highlighting the potential benefits of tokenization for central banks, according to the BIS.

The framework “speed and consistency” was “validated” within a 10-minute hypothetical scenario where central banks quickly changed collateral criteria and exchanged liquid collateral for illiquid amid falling collateral values.

The smart-contract framework also allowed central banks to deploy a new facility offering reserves and changing the interest rates on the reserves in an “immediate” implementation.

Central banks testing smart contract toolkit under BIS Project Pine
Project Pine, smart contract operations. Source: BIS

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Smart contracts, tokenization may help central banks

Smart contracts and tokenization technology may help central banks’ rapid response to “extraordinary events,” the BIS report said:

“This speed, coupled with the ability to adjust any of the parameters at any time, gives central banks flexibility in responding to unforeseen events and fast-moving crises.”

While promising, the report also acknowledged that central banks will likely face infrastructure challenges, as most existing systems are not designed for these advanced use cases.

Central banks testing smart contract toolkit under BIS Project Pine
Smart contract testing scenario. Source: BIS

Project Pine employed Ethereum’s ERC-20 token standard combined with another standard for “access control.”

Financial institutions have increasingly embraced tokenization in recent years.

At the Consensus 2025 conference, Joseph Spiro, product director at DTCC Digital Assets, called stablecoins the “perfect” financial instrument for real-time collateral management for financial transactions such as loans or derivatives.

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MPs on farming committee call on Rachel Reeves to delay family farm tax

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MPs on farming committee call on Rachel Reeves to delay family farm tax

The UK’s food security and the future of farming lies in Rachel Reeves’ hands, a leading MP has said as a committee called on the government to delay farm inheritance tax changes.

The environment, food and rural affairs (EFRA) committee has released a report calling on the government to delay the reforms for a year until April 2027.

Chancellor Rachel Reeves announced in the October budget farmers would no longer be allowed to claim inheritance tax relief for farms worth more than £1m from April 2026.

The move prompted multiple protests in Westminster by farmers who said it will threaten the future of thousands of multi-generational family farms.

The EFRA committee, made up of seven Labour MPs and four Lib Dem and Tory MPs, said a pause in the implementation would “allow for better formulation of tax policy and provide the government with an opportunity to convey a positive long-term vision for farming”.

A delay would also protect vulnerable farmers who would have “more time to seek appropriate professional advice”, the MPs said.

farmers protest in central london over inheritance tax - SN screengrab
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There have been multiple protests

The MPs raised concerns the change was announced “without adequate consultation, impact assessment or affordability assessment”, leaving the impact on farms and food security “disputed and unclear”.

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They said it risks producing “unintended consequences” and threatens to “affect the most vulnerable”.

The MPs have called on the government to consider alternative reforms.

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Chair of the EFRA Committee Alistair Carmichael said the government should pause and reconsider the farmers' inheritance tax changes
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Chair of the EFRA Committee Alistair Carmichael said the government should pause and reconsider the farmers’ inheritance tax changes

Alistair Carmichael, the Lib Dem chair of the committee, told Sky News: “There is a need for inheritance tax to be reformed.

“The use of land purchase by the super rich as a means of sheltering their wealth is something which is not in the public interest or farmers.

“But this is not the way to go about reform.

“The risk is you see farmers selling out, they will sell out to people who are not going to use land for food production then we risk losing food security – we’ve seen how foolish relying on exports is after Putin’s invasion.”

Jeremy Clarkson arrives in central London to join the farmers protest over the changes to inheritance tax (IHT) rules in the recent budget with introduce new taxes on farms worth more than ..1 million. Picture date: Tuesday November 19, 2024. PA Photo. Farmers have reacted over the inheritance tax changes for farming businesses, which limit the 100% relief for farms to only the first ..1 million of combined agricultural and business property. For anything above that, landowners will pay a 20% tax rate, rather than the standard 40% rate of inheritance tax (IHT) applied to other land and property. PA Photo. Photo credit should read: Aaron Chown/PA Wire
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Celebrities such as Jeremy Clarkson have drawn attention to the outrage

He added “as an outsider looking in”, the way in which the Treasury handled the inheritance tax announcement, after Labour said in opposition they would not change it, “has created a real problem of political authority” for Environment Secretary Steve Reed.

“It’s a problem the Treasury themselves can solve,” he said.

“Their own backbenchers increasingly think they should solve this and our report today gives them an opportunity to do that if they choose to take it.

“It really is up to the Chancellor of the Exchequer. It is over to her now.”

The committee report says before the autumn budget 70% of farmers felt optimistic about their futures, but that fell to 12% after the budget.

The survey, by the Farmers Guardian in March, also found 84% of farmers felt their mental health has been affected by the announcement.

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Key points from the budget

Farmers said the government announcing the closure of applications to this year’s sustainable farming incentive with just hours to go, was also a cause.

The committee said there are other ways to achieve reform, and called on the government to publish its evaluation and rationale for not following alternative policy measures.

They also said the Department for the Environment, Food and Rural Affairs has a pattern of “poor communication and last-minute decision-making following rumours and departmental leaks”.

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Starmer condemned for telling MP ‘she talks rubbish’

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Starmer condemned for telling MP 'she talks rubbish'

Sir Keir Starmer should have reassured and explained his immigration policy to a senior Welsh MP rather than telling her “you’re rubbish”, Labour peer Harriet Harman said.

Speaking to Beth Rigby on the Electoral Dysfunction podcast, Harriet Harman criticised the prime minister for telling Plaid Cymru Westminster leader Liz Saville Roberts during PMQs “she talks rubbish” after she called him out for using “island of strangers” in his immigration speech on Monday.

Baroness Harman said: “He should have actually explained ‘look, this is what we’re getting at. We’re it’s a communitarian message, it’s about neighbourliness, it’s about integration’.

“And he should have done that and reassured her and explained rather than just slapping her down.

“I just think to call across the chamber, ‘you’re rubbish’ – I think a prime minister has the opportunity to be a bit more magisterial in that.”

She said she has “been that woman standing there asking the prime minister a heartfelt and serious question, and had the prime minister say, ‘you’re rubbish'”.

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Starmer’s speech divides opinion

Baroness Harman added: “I kind of went ‘ouch’ at that point, because I’ve been in that situation myself.

More on Harriet Harman

“I think people do want an explanation and he’s got an explanation and he should have done that rather than hit at the messenger.”

After Sir Keir used the phrase “island of strangers” while announcing a crackdown on immigration, fellow Labour MPs, businesses and industry reacted angrily.

The rhetoric was likened by some critics to Enoch Powell’s rivers of blood speech.

Ahead of PMQs on Wednesday, Cabinet Office minister Pat McFadden tried to move the debate away from Sir Keir’s controversial remarks.

“I think we should focus on the policy,” he told Sky News.

“Immigration has contributed a huge amount to the UK, it will in the future, I think the public want a sense of rules around it, that is what the prime minister was speaking about.”

He said the row was “overblown” and he might use the “island of strangers” phrase “depending on the context”.

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