Immigration becomes voters’ top issue for first time since Brexit
Immigration and asylum is back as the top issue of public concern the first time since Brexit, according to exclusive polling for Sky News.
It overtook the economy as the number one issue facing the country in YouGov’s latest poll in May, even before the summer dominated by the migration debate.
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It is now at the highest point level of concern in over five years, since the small boats started crossing the Channel in significant numbers.
In the most recent YouGov poll, 58% picked immigration as one of the three top issues facing the country at the moment, while 51% pointed to the economy, 29% health and 22% crime.
The overwhelming majority of the public think this is because immigration is too high, with 70% saying this, 18% saying it’s about right, and 3% saying it is too low.
For decades, until very recently, successive prime ministers and chancellors have told voters that migration is a public good, but the public has not bought this argument.
Some 50% think immigration is having a negative impact on the UK, with 22% saying the benefits are equally weighed and 22% also saying that it has a positive effect.
The exclusive polling also reveals whether the public think other governments would be better at dealing with migration and small boats than Labour are.
Less than one in five – just 18% – think a Tory government would be doing much better, with 55% thinking they would be the same and 12% worse.
The more hardline approach outlined by Reform UK appears to have be noticed by the public. Some 40% think a Reform government would be handling migration and small boats better, and 26% the same, with 19% worse.
YouGov interviewed 2,268 GB adults between 31 August and 1 September.
The UK has floated a new tax framework that eases the burden on decentralized finance (DeFi) users, with deferred capital gains taxes on crypto lending and liquidity pool users until the underlying token is sold, which the local industry has welcomed.
HM Revenue and Customs (HMRC) proposed on Wednesday a “no gain, no loss” approach to DeFi that would cover lending out a token and receiving the same type back, borrowing arrangements and moving tokens into a liquidity pool.
Taxable gains or losses would be calculated when liquidity tokens are redeemed, based on the number of tokens a user receives back compared to the number they originally contributed, according to the proposal.
Currently, when a user deposits funds into a protocol, regardless of the reason, the move may be subject to capital gains tax. In the UK, capital gains tax rates can vary between 18% and 32%, depending on the action.
Tax framework a ‘positive signal’ for UK crypto regulation
Sian Morton, marketing lead at the crosschain payments system Relay protocol, said HMRC’s no gain, no loss approach is a “meaningful step forward for UK DeFi users who borrow stablecoins against their crypto collateral, and moves tax treatment closer to the actual economic reality of these interactions.”
“A positive signal for the UK’s evolving stance on crypto regulation,” she added.
Maria Riivari, a lawyer at the DeFi platform Aave, said the change “would bring clarity that DeFi transactions do not trigger tax until you truly sell your tokens.”
“Other countries facing similar questions may want to take note of HMRC’s approach and the depth of research and consideration behind it,” she added.
Aave CEO Stani Kulechov said the proposal was “a major win for UK DeFi users who want to borrow stablecoins against their crypto collateral.”
Related: Switzerland delays crypto tax info sharing until 2027
DeFi tax overhaul not set in stone yet
However, the proposal is not a done deal yet. HMRC said it’s continuing to engage with relevant stakeholders “to assess the merits of this potential approach, and the case for making legislative change to the rules governing the taxation of crypto asset loans and liquidity pools.”
“In particular, to ensure that it would cover the range of transactions that can take place under these arrangements and would be viable for individuals to comply with,” the agency added.
In the initial consultation, 32 formal written responses were submitted by individuals, businesses, tax professionals and representative bodies, which included crypto exchange Binance, venture capital firm a16z Capital Management and self-regulatory trade association Crypto UK.
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Politics
Budget 2025: Reeves urged to ‘make the case’ for income tax freeze – as PM hits out at defenders of ‘failed’ policy
Rachel Reeves needs to “make the case” to voters that extending the freeze on personal income thresholds was the “fairest” way to increase taxes, Baroness Harriet Harman has said.
Speaking to Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, the Labour peer said the chancellor needed to explain that her decision would “protect people’s cost of living if they’re on low incomes”.
In her budget on Wednesday, Ms Reeves extended the freeze on income tax thresholds – introduced by the Conservatives in 2021 and due to expire in 2028 – by three years.
The move – described by critics as a “stealth tax” – is estimated to raise £8bn for the exchequer in 2029-2030 by dragging some 1.7 million people into a higher tax band as their pay goes up.
Rachel Reeves, pictured the day after delivering the budget. Pic: PA
The chancellor previously said she would not freeze thresholds as it would “hurt working people” – prompting accusations she has broken the trust of voters.
During the general election campaign, Labour promised not to increase VAT, national insurance or income tax rates.
Sir Keir Starmer has insisted there’s been no manifesto breach, but acknowledged people were being asked to “contribute” to protect public services.
He has also launched a staunch defence of the government’s decision to scrap the two-child benefit cap, with its estimated cost of around £3bn by the end of this parliament.
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Prime minister defends budget
‘A moral failure’
The prime minister condemned the Conservative policy as a “failed social experiment” and said those who defend it stand for “a moral failure and an economic disaster”.
“The record highs of child poverty in this country aren’t just numbers on a spreadsheet – they mean millions of children are going to bed hungry, falling behind at school, and growing up believing that a better future is out of reach despite their parents doing everything right,” he said.
The two-child limit restricts child tax credit and universal credit to the first two children in most households.
The government believes lifting the limit will pull 450,000 children out of poverty, which it argues will ultimately help reduce costs by preventing knock-on issues like dependency on welfare – and help people find jobs.
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Budget winners and losers
Speaking to Rigby, Baroness Harman said Ms Reeves now needed to convince “the woman on the doorstep” of why she’s raised taxes in the way that she has.
“I think Rachel really answered it very, very clearly when she said, ‘well, actually, we haven’t broken the manifesto because the manifesto was about rates’.
“And you remember there was a big kerfuffle before the budget about whether they would increase the rate of income tax or the rate of national insurance, and they backed off that because that would have been a breach of the manifesto.
“But she has had to increase the tax take, and she’s done it by increasing by freezing the thresholds, which she says she didn’t want to do. But she’s tried to do it with the fairest possible way, with counterbalancing support for people on low incomes.”
Read more:
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She added: “And that is the argument that’s now got to be had with the public. The Labour members of parliament are happy about it. The markets essentially are happy about it. But she needs to make the case, and everybody in the government is going to need to make the case about it.
“This was a difficult thing to do, but it’s been done in the fairest possible way, and it’s for the good, because it will protect people’s cost of living if they’re on low incomes.”
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