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Sir Keir Starmer’s been on the other side of the world for most of the week – at the COP30 climate summit in Brazil, his 40th foreign trip in 16 months.

Back home, his government’s credibility has continued its painful unravelling.

Five days on from David Lammy’s disastrous stand-in performance at PMQS, the justice secretary’s ministerial colleagues are still struggling to explain why he repeatedly failed to answer questions on whether another migrant criminal had been released from prison by mistake.

Prime Minister Sir Keir Starmer at the Remembrance Sunday service at the Cenotaph in London. Pic: PA
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Prime Minister Sir Keir Starmer at the Remembrance Sunday service at the Cenotaph in London. Pic: PA

Yes, Conservative MP James Cartlidge got the question wrong, as Brahim Kaddour-Cherif was an illegal migrant, not an asylum seeker.

But Mr Cartlidge argued that because the deputy prime minister failed to divulge the information he did have, he failed to act with full transparency and should be investigated by the PM’s ethics advisor for a possible breach of the ministerial code.

Culture Secretary Lisa Nandy has been defending Mr Lammy’s response.

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Lammy not sharing facts is ‘shocking’

She told Sunday Morning with Trevor Phillips she doesn’t accept that he was being evasive, insisting Mr Lammy had been carefully weighing his words to ensure that “when we do speak about matters of such significance to the public… we do so with care and make sure the full facts are presented”.

At that time, rather extraordinarily, we’re told the justice secretary did not have the full facts of the case, even though the Metropolitan Police had been informed the day before (six days after Kaddour-Cherif was accidentally freed).

How Sky correspondent found escaped prisoner

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In full: Moment sex offender arrested

The combination of wrongly-freed prisoners and illegal migrants is a conjunction of two of the most toxic issues in British politics – the overflowing prison system and the dysfunctional asylum system.

Both are vast, chaotic problems the government is struggling to get a grip on, as the Conservatives also found, to their cost.

But ministers’ ongoing failure to bring both issues under control has only been highlighted by Mr Lammy’s sloppy handling of the situation.

Football regulator donations row

Ms Nandy has herself been at the heart of another government controversy this week – over the appointment of the new football regulator, David Kogan.

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‘I didn’t want to mislead MPs on prisoner release’

An independent investigation found she “unknowingly” breached the code on public appointments by failing to declare that Mr Kogan had previously donated £2,900 to her Labour leadership campaign – and also criticised her department for not highlighting his status as a Labour donor who had previously given £33,410 to the party.

The culture secretary has apologised and explained she had been unaware of the donations.

She also pointed out that Mr Kogan was a candidate originally put forward by the Conservatives. But again, it’s messy.

It’s yet another story which chips away at the government’s promises to clear up politics and act with full transparency and accountability.

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Political fallout analysed

Budget blues?

The ultimate breach of trust looks set to come with the budget on 26 November, however.

In an extraordinary early morning speech this week, Chancellor Rachel Reeves signalled that she’s likely to raise taxes in two and a half weeks – and thus breach the core promise of the Labour Party manifesto.

The rationale for her dire warnings on Tuesday was to start explaining why she will probably have to do so – getting in her excuses early about the languishing state of the economy as a result of Brexit, Donald Trump’s tariffs and her inheritance from the Conservatives.

The Tories claim Ms Reeves could sort out the finances by cutting welfare spending – something ministers dramatically failed to do when their efforts at reform were scuttled by angry backbenchers.

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Governments breach their manifesto commitments all the time.

But if the chancellor goes ahead and puts up income tax, as expected (even if that’s offset, for some, by a corresponding cut to national insurance), it will be a shock – and the first such increase in 50 years.

The new deputy leader of the party, Lucy Powell, pointedly warned the government this week about the risks of breaching trust in politics by breaking manifesto promises.

Lisa Nandy didn’t shoot her comments down when Sir Trevor asked for her response, arguing instead that while “we take our promises very, very seriously”, they [Labour] “were also elected on a promise to change this country”, with a particular focus on fixing the NHS.

The impossibility of doing both – protecting taxes while also increasing government spending in such a challenging economic climate – highlights the folly of making such restrictive promises.

But voters are not in a forgiving mood.

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Political Traitors: Who can you trust?

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Political Traitors: Who can you trust?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Sam reveals there might be some Traitors-style plotting going on behind the scenes in government – but from who? And how might Sir Keir Starmer see off this challenge?

Budget speculation continues, and specifically – who is and is not a “working person”? And, should it occur, what would the consequences be of breaking a manifesto commitment? How perilous a moment for Starmer could this be?

And after the BBC’s director general and CEO of news resign, what does Starmer now say about the organisation? And who will come next in the top BBC job?

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.

The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.

If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.

The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.

Stephen Miran speaking at a conference in New York on Friday. Source: BCVC

“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.

“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”