This has been Starmer’s most damaging U-turn yet – but the bigger cost is the political one

Published

4 months ago

June 29, 2025

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It has been a painful week to watch.

A U-turn in slow motion, culminating in a midnight climbdown as Number 10 agreed to concede to defiant MPs on Thursday night.

The concessions are considerable. They mean, among other compromises, that existing claimants of personal independence payments (PIP) and the health aspect of Universal Credit will be protected from welfare reforms.

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Some MPs, like Diane Abbott and Nadia Whittome, remain unconvinced, but they were never high on the list of rebels the government expected to persuade.

Ministers now hope that with the backing of MPs like Dame Meg Hillier, the chair of the Treasury Select Committee, the bill will pass the Commons.

Their problems won’t end there, though.

Firstly, there is the question of money. The Resolution Foundation estimates the concessions will cost £3bn of the £5bn the chancellor hoped to save from the welfare reforms.

The prime minister‘s spokesperson says the changes will be fully funded in the budget and there will be no permanent increase in borrowing. They won’t comment on any potential tax rises to plug the gap in Rachel Reeves’s finances.

The bigger cost, though, is the political one.

A year ago, when Sir Keir Starmer strode into Downing Street with a thumping majority, few could have imagined how the last few days would play out.

More than 120 MPs, nearly a third of the parliamentary Labour party and more than the total number of Tory MPs, publicly prepared to rebel on a flagship policy.

How did it come to this? How did the prime minister, and the people around him, not see a rebellion coming when there had been signs MPs weren’t happy for weeks?

Those are the questions being asked by senior Labour figures behind the scenes.

Sir Keir’s spokesperson says the prime minister consistently engages with colleagues, and parliamentary engagement takes many forms.

But a lack of engagement with backbenchers has led to the prime minister’s most damaging U-turn yet, and this week will haunt the prime minister beyond Tuesday’s crunch vote.

Politics

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

Published

6 hours ago

November 7, 2025

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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.

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.

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.