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Has Labour got the right strategy to tackle Reform UK?

Nigel Farage’s party cost the Tories dozens, maybe 100-plus seats at the general election. Now it looks like the party is hitting Labour too. But has Sir Keir Starmer got the right answers?

Coates

Last year, Labour won a landslide because the Tory vote collapsed, in part because Reform UK took chunks of their supporters in constituencies across the UK.

And here is the situation on 1 May this year – the national equivalent vote share at the council elections put Reform well ahead in first place. Success – this time at the expense of Labour too.

Coates

How big a threat is this to MPs? As a very crude experiment, Sky News has looked at what would happen if this result was replicated evenly across parliamentary constituencies.

Within the areas where there were county council elections are 77 complete Westminster seats with sitting Labour MPs.

This includes places like Wycombe, where Treasury minister Emma Reynolds holds. Or Lincoln, won by Foreign Office minister Hamish Falconer.

More on Labour

Coates

Now if – for fun – we mapped the country council results from 1 May evenly across these general election constituencies, almost all those Labour seats are gone. All lost, apart from five. That’s 72 out of 77 Labour MPs losing their seats and mostly to Reform UK.

What if we took that swing an applied across the whole country, places where there weren’t local elections?

Angela Rayner in Greater Manchester and Jess Phillips in Birmingham would lose their seats.

Yes this is a crude measure – it assumes a uniform swing can be drawn from the 1 May polls – and local and national elections are very different.

But importantly, YouGov’s latest national opinion polls paint a similar picture to the council elections. Meanwhile, 89 out of 98 constituencies where Reform came second place have Labour in first. Labour MPs are feeling the heat from Farage.

The Reform threat is real. Sir Keir Starmer knows it – and this year has started chasing Reform votes. Slashing aid spending. Abandoning green promises. Hard talk about immigration and living on an “Island of Strangers”.

Sensible given the clear and evident Reform UK threat? Actually – maybe not. Look at the data in detail:

Coates

This block here is all the people who voted Labour in last year’s general election. Now thanks to YouGov polling, we know what people in this block would do with their vote now.

It shows Labour has lost more than half of last year’s voters. Just 46% still say they’d still vote for Sir Keir’s party. But – despite the PM’s strategy – they’re not actually going to Reform in large numbers.

Just 6% of Labour’s voters at last year’s general election – six out of every 100 – said they would vote Reform now. That’s all. So where have they gone?

Well, they’ve been lost much more to liberal and left-wing parties – 12% to the Lib Dems, 9% to the Greens.

So just pause there. That means the number of Labour voters who have switched to the Lib Dems and Greens, arguably on the left of the political spectrum, is three times the number going to Reform to the right.

Just 2% go to the Tories.

And much more seriously for Labour, 22% aren’t going to vote, don’t know or won’t say.

Coates

The bottom line is people who voted Reform have never backed Labour in large numbers.

This shows how Reform supporters last year voted in each election since 2005. You can see – Reform voters are former UKIP voters. They’re Boris Johnson’s Tories.

Let’s put it another way. While 11% of Labour voters may one day be open to voting Reform, 70% are at risk of going to the Lib Dems or Greens – seven times the threat from Reform.

And typically, these voters don’t like the hard line, Reform-leaning policies of Sir Keir Starmer recently.

The local elections show there is a threat to Labour from Reform. But our data suggests Keir Starmer trying to be Nigel Farage lite isn’t the answer.

Is Labour’s strategy really working?

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Japan’s FSA backs joint stablecoin initiative by nation’s top banks

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Japan’s FSA backs joint stablecoin initiative by nation’s top banks

Japan’s financial regulator, the Financial Services Agency (FSA), endorsed a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.

In a Friday statement, the FSA announced the launch of its “Payment Innovation Project” as a response to progress in “the use of blockchain technology to enhance payments.” The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.

The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.

The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.

Related: Japan regulator proposes crypto rule overhaul in line with securities law

The participating companies are expected to ensure that users are protected and informed about the systems they use. “After the completion of the pilot project, the FSA plans to publish the results and conclusions,” the announcement reads.

The announcement follows the Monday launch of Tokyo-based fintech firm JPYC’s Japan-first yen-backed stablecoin, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.

Related: Japan’s finance Minister endorses crypto as portfolio diversifier

Japanese regulators focus on crypto

Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.

Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.

At the same time, Japan’s securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.