Connect with us

Published

on

It is not hard to see why Sir Keir Starmer ends up doing quite so many foreign trips.

On the road to Mumbai, India, from the airport there were giant pictures of the British prime minister looming over the sealed-off roads cleared for his special VIP convoy.

There was nothing short of a carnival along the roadside to greet the cars.

Politics latest: Stamp duty on primary homes to be axed under Tories

Sir Keir Starmer during a visit to an FA Premier League training facility in Mumbai.  Pic: PA
Image:
Sir Keir Starmer during a visit to an FA Premier League training facility in Mumbai. Pic: PA

People who knew nothing about Sir Keir – and were happy to admit so to me – dressed up for the occasion in plumes of feathers and chicken costumes and danced to music. The Labour conference does not come close to that.

This trip has a big first – 125 blue chip business leaders, more than any business delegation in history – are here. The enthusiasm to take advantage of the signed, though not completed, free trade deal is clear.

“I think the importance of this trip is reflected by the huge British delegation we’ve got here today,” said Shevaun Haviland, director general of the British Chambers of Commerce.

More on India

“A hundred and twenty five businesses, biggest UK names Beattie, BP, British Airways, Diageo, Virgin, huge businesses all the way through to incredible AI and energy start-ups from around the UK.”

But business leaders have been clear to me that they haven’t simply joined the delegation to further their activities in India. They want to raise their profile with the prime minister, in order to ensure their voice is heard when it needs to be by the government.

Sir Keir Starmer at a Diwali ceremony in Mumbai. Pic: PA
Image:
Sir Keir Starmer at a Diwali ceremony in Mumbai. Pic: PA

And the picture some paint of life back in the UK is more challenging. CEO of leading architecture firm Benoy, Tom Cartledge, said how 10 to 15 years ago their business was 90% UK activity, and now it is 90% overseas. He said markets like India are important in part because the UK environment is challenging.

“We’re having to go and find new markets because what we do is design big projects, infrastructure, real estate towers, residential, retail,” he told me.

He went on: “There really is a perception of overseas markets that we are sluggish, low productivity, high tax rates. And that does nothing for the confidence. And in fact, I spoke to an Indian client this morning who said that they are relocating from the head offices to Dubai, because the perception is it’s going to get harder, it’s going to get tougher in the UK and we just do not need that.”

It is rare for business figures on a PM delegation to speak so openly.

The PM visits a Premier league youth training facility with ex-England footballer Michael Owen. Pic: PA
Image:
The PM visits a Premier league youth training facility with ex-England footballer Michael Owen. Pic: PA

Ms Haviland told me that business figures are using this trip to pass a message to the prime minister.

“We want to see no more tax for business,” she told me, saying that’s the message being conveyed right now in India. I asked what they say back? “They hear us,” she replied. “I think we’ll have to wait and see.”

Read more:
Badenoch has done enough to hold off her critics – for now
PM blames Tories for China spy trial being dropped

Please use Chrome browser for a more accessible video player

Starmer visits Bollywood

Another important voice is Rohan Malik, managing partner of EY. He says there’s an optimistic case for the UK over the medium term but suggested short-term challenges for the government.

“No one likes taxes, but at the same time, they are a necessary way for the government to balance the books.

“If I take a five or seven-year view, I feel more optimistic about the future, because I do think some short-term pain will lead to some long-term gains.”

Does he think the business community could bear paying a bit more?

“I think it’s going to be tricky for the chancellor,” he said.

“I don’t envy her position at all to be looking at different, but she’s got other of disposal businesses, but not like more taxation. At the same time, we have to be prepared to understand how do we try and contribute more towards economic growth?”

The candour is not something I can remember from business delegations in the past. That’s a response to the nervousness about a £20bn-£30bn black hole Chancellor Rachel Reeves will have to fill in the November budget. Overall the delegates remain on side – for now.

Continue Reading

Politics

Crypto industry, trade unions clash over multi-trillion dollar retirement funds

Published

on

By

Crypto industry, trade unions clash over multi-trillion dollar retirement funds

A growing rift has emerged in Washington, D.C., between the cryptocurrency industry and labor unions as lawmakers debate whether to ease rules allowing cryptocurrencies in 401(k) retirement accounts.

The dispute centers on proposed market structure legislation that would allow retirement accounts to gain exposure to crypto, a move labor groups say could expose workers to speculative risk. In a letter sent on Wednesday to the US Senate Banking Committee, the American Federation of Teachers argued that cryptocurrencies are too volatile for pension and retirement savings, warning that workers could face significant losses.

The letter drew immediate pushback from crypto investors and industry figures. “The American Federation of Teachers has somehow developed the most logically incoherent, least educated take one could possibly author on the matter of crypto market structure regulation,” a crypto investor said on X. 

Retirement, Pensions
The AFT letter to Congress opposes regulatory changes that would allow 401(k) retirement accounts to hold alternative assets, including cryptocurrency. Source: CNBC

In response to the letter, Castle Island Ventures partner Sean Judge said the bill would improve oversight and reduce systemic risk, while enabling pension funds to access an asset class that has delivered strong long-term returns.

Consensys attorney Bill Hughes said the AFT’s opposition to the crypto market structure bill was politically motivated, accusing the group of acting as an extension of Democratic lawmakers.

Retirement, Pensions
Funds held in US retirement accounts by type of account plan. Source: ICI

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Opposition to crypto in retirement and pension funds mounts

Proponents of allowing crypto in retirement portfolios, on the other hand, argue that it democratizes finance, while trade unions have voiced strong opposition to relaxing current regulations, claiming that crypto is too risky for traditional retirement plans.

“Unregulated, risky currencies and investments are not where we should put pensions and retirement savings. The wild, wild west is not what we need, whether it’s crypto, AI, or social media,” AFT president Randi Weingarten said on Thursday. 

The AFT represents 1.8 million teachers and educational professionals in the US and is one of the largest teachers’ unions in the country.

According to Better Markets, a nonprofit and nonpartisan advocacy organization, cryptocurrencies are too volatile for traditional retirement portfolios, and their high volatility can create time-horizon mismatches for pension investors seeking a predictable, low-volatility retirement plan.

Retirement, Pensions
Bitcoin and Ether volatility compared to other asset classes and stock indexes. Source: US Federal Reserve

In October, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) also wrote to Congress opposing provisions within the crypto market structure regulatory bill.

The AFL-CIO, the largest federation of trade unions in the US, wrote that cryptocurrencies are volatile and pose a systemic risk to pension funds and the broader financial system.

Magazine: 13 Christmas gifts that Bitcoin and crypto degens will love