Grooming gangs inquiry must ‘leave no stone unturned’, Kemi Badenoch tells government
A nationwide grooming gangs inquiry must “leave no stone unturned”, Kemi Badenoch has said as the Conservatives urged the government to ensure ethnicity and religious background are taken into account.
Ms Badenoch and shadow home secretary Chris Philp, appearing alongside a survivor and two parents of survivors/victims, called on the government to adopt draft terms of reference for the inquiry drawn up by the Conservatives with help from some grooming gangs victims and survivors.
The Tory leader said her party is willing to work alongside the government, and an inquiry needs to be undertaken on a cross-party basis as it is ultimately about the survivors, victims and their families.
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The Conservatives’ terms of reference include ensuring the inquiry examines the ethnicity and religious background of offenders, a two-year time limit and a focus on extra-familial abuse.
They also want it to forward evidence to police and prosecutors where criminality is indicated.
In June, the government announced it would be launching a national inquiry into grooming gangs, representing a U-turn after previously accusing Reform and the Conservatives of jumping on a far-right bandwagon when they called for one earlier in the year after Labour announced five local inquiries.
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‘I’d wake up with really bad bruises’
But a national inquiry has been delayed by rows about its scope, while both shortlisted chair candidates withdrew their candidacy following criticism by survivors of their careers as a police chief and a social worker.
A group of women also quit the inquiry’s victim liaison panel – one who was present with the Tories on Monday – as they accused the government of attempting to widen the inquiry’s remit to consider other forms of child sexual abuse.
Ms Badenoch said: “I want to be clear that a national inquiry must leave no stone unturned.
“It must investigate councils, the police and even the government if necessary.
“It must be time-limited, and it must consider the role of ethnicity, religion and other cultural factors.
“Baroness (Louise) Casey’s own report admitted that many of these cases are committed by people of Asian and Pakistani ethnicities.
“Her own report said that those who downplay the ethnicity of perpetrators are continuing to let down society, local communities and the victims. We agree.
“As I said, I have spoken to many survivors. We are speaking on their behalf.
“Their lives and their families’ lives have been turned upside down, so separate to this inquiry, the government must act now to ensure that they and their families are supported so they can heal.”
Baroness Casey, known as a Whitehall troubleshooter, having worked on social issues for successive prime ministers since Tony Blair, is assisting with setting up the inquiry, but acknowledged it could now be “months” before a chair was appointed.
Fiona Goddard, one of the survivors who left the inquiries’ liaison panel, backed the Conservatives’ proposals as she said she had “lost faith in the ability of the government to make more meaningful progress”.
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Mr Philp said a two-year time limit on the inquiry is essential as he said: “It can’t drag on for years and years.”
He said the Tories were being “constructive” and that dual nationals found to have been involved in grooming should have their British citizenship removed and be deported “with no exceptions”.
A Labour Party spokesman said: “The Conservatives’ record on this issue is clear: they had years to take action on this appalling scandal, yet time and time again they failed to do so.
“This Labour government accepted all the recommendations from Baroness Casey’s report and we are committed to a full, statutory, national inquiry to uncover the truth.
“It will be robust, rigorous and laser-focused on grooming gangs, and its scope will not change.
“The inquiry will direct and oversee local investigations, with the power to compel witnesses and summon evidence. And it will explicitly examine the background, ethnicity and culture of offenders.”
The US Office of the Comptroller of the Currency has affirmed that national banks can intermediate cryptocurrency trades as riskless principals without holding the assets on their balance sheets, a move that brings traditional banks a step closer to offering regulated crypto brokerage services.
In an interpretive letter released on Tuesday, the regulator said banks may act as principals in a crypto trade with one customer while simultaneously entering an offsetting trade with another, a structure that mirrors riskless principal activity in traditional markets.
“Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market,” notes the document.
According to the OCC, the move would allow customers “to transact crypto-assets through a regulated bank, as compared to non-regulated or less regulated options.”
The letter also reiterates that banks must confirm the legal permissibility of any crypto activity and ensure it aligns with their chartered powers. Institutions are expected to maintain procedures for monitoring operational, compliance and market risks.
“The main risk in riskless principal transactions is counterparty credit risk (in particular, settlement risk),” reads the letter, adding that “managing counterparty credit risk is integral to the business of banking, and banks are experienced in managing this risk.”
The agency’s guidance cites 12 U.S.C. § 24, which permits national banks to conduct riskless principal transactions as part of the “business of banking.” The letter also draws a distinction between crypto assets that qualify as securities, noting that riskless principal transactions involving securities were already clearly permissible under existing law.
The OCC’s interpretive letter — a nonbinding guidance that outlines the agency’s view of which activities national banks may conduct under existing law — was issued a day after the head of the OCC, Jonathan Gould, said crypto firms seeking a federal bank charter should be treated the same as traditional financial institutions.
According to Gould, the banking system has the “capacity to evolve,” and there is “no justification for considering digital assets differently” than traditional banks, which have offered custody services “electronically for decades.”
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From ‘Choke Point 2.0’ to pro-crypto policy
Under the Biden administration, some industry groups and lawmakers accused US regulators of pursuing an “Operation Choke Point 2.0” approach that increased supervisory pressure on banks and firms interacting with crypto.
Since President Trump took office in January after pledging to support the sector, the federal government has moved in the opposite direction, adopting a more permissive posture toward digital asset activity.
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CryptoUK, a UK-based cryptocurrency trade association, has announced that it will join The Digital Chamber, a US crypto policy advocacy group, potentially marking a significant cross-collaboration on digital asset regulation between the two countries.
In a Tuesday notice, CryptoUK said its team would fall under The Digital Chamber’s umbrella as part of a “unified, cross-border advocacy platform.” Both groups have worked in their respective countries to promote policies favoring the cryptocurrency and blockchain industry, starting with The Digital Chamber in 2014 and CryptoUK in 2018.
“CryptoUK has always aspired to ensure we are driven by policy-led issues, member collaboration, and regulatory engagement,” said Su Carpenter, CryptoUK’s executive director.
The partnership between the two advocacy groups comes as US lawmakers move forward on negotiations to pass a digital asset market structure bill, aiming to establish regulatory clarity for the industry. In the UK, policymakers announced plans to collaborate with their counterparts in the US to explore crypto laws and regulations.
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US-based crypto advocacy organizations, such as The Digital Chamber, have garnered support from former regulators and members of Congress as the Trump White House directs policies toward the industry. Among these groups are the Solana Policy Institute, the Blockchain Association, the Crypto Council for Innovation, and the American Innovation Project.
UK central bank moves forward on stablecoins
On Nov. 10, the Bank of England released a consultation paper to propose a framework for “sterling-denominated systemic stablecoins.” The move by the country’s central bank marked a step toward the UK seeming to play catch-up to the US, where the government passed a law regulating payment stablecoins in July.
Bank of England Deputy Governor Sarah Breeden signaled before the publication of the paper that the central bank’s actions were in response to the US advancing stablecoin policies, and it was “really important” to be synchronized on rules.
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Kemi Badenoch has refused to say that the Conservatives are intending to win next May’s local elections, despite being repeatedly pushed on the issue.
Asked twice to define success for her party at the elections, the Tory leader merely said that she is “going to be fighting for every vote”.
Speaking to Sky News, she added: “Success is going to be people seeing the Conservative Party as the only party that is competent and credible enough to do the tough stuff that this country needs.”
The comments come as the Conservatives continue to trail in the polls.
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Watch Kemi Badenoch’s interview with Sky News in full
New data released by YouGov this morning has put the Tories in third place behind Reform and Labour, a space they have largely occupied throughout the year. The pollster’s weekly voting intention analysis put Ms Badenoch’s party on 18%, down one percentage point.
YouGov’s weekly voting intention poll has the Tories down one percent on last week, and just three above the Greens. Pic: YouGov
Ms Badenoch gave a speech on welfare costs in London on Tuesday, where she attacked the government’s plans to tackle child poverty. Afterwards, she sat down with Sky News political correspondent Sam Coates.
Asked about the local elections, she said: “There are going to be local elections all over the country, and there’s a conservative message that I want everyone to hear: Our country’s not working properly.
“There are fundamental things that need to change. We need to create jobs. Otherwise, we’re not going to have money for councils.”
She added: “We’ve seen new parties like Reform come in. They’re making a hash of things at council level. We need to make sure that people can see the benefits of voting Conservative.”
Ms Badenoch also refused to score her party’s performance out of 10. Pic: PA
When it was pointed out that she had not defined success as winning the local elections, Ms Badenoch said: “The country is going to decide. We’re going to put out an offer, and we’re going to fight for every vote.”
May will see local council elections, as well as votes for the Senedd in Wales and the Scottish Parliament. They are seen as a crucial moment for the Tory leader – and also for Prime Minister Sir Keir Starmer.
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‘Of course poverty bothers me’
Ms Badenoch also refused to score the party’s performance out of 10, as the year draws to a close, and she marks a little over 12 months as leader.
She told Sky News: “When I look at the historic defeats which Conservatives suffered last year, things are definitely better.”
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Challenged on the Tories’ position in the polls, Ms Badenoch said: “Of course, we have a mountain to climb.
“We lost more seats [in 2024] than we’ve ever done in our 200-year history. This was always going to be a long road ahead.”
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