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David Cameron has been appointed as foreign secretary in a cabinet reshuffle.

The former prime minister, who was given the role while in Number 10 this morning, said he “gladly accepted” the offer from Rishi Sunak, despite having “disagreed with some individual decisions” by his successor.

Speaking to broadcasters, the now Lord Cameron said he accepted bringing back an ex-PM was “not usual”, but he “believes in public service” and has “useful experience” to bring to the table.

He also called his new boss a “strong and capable prime minister who is showing exemplary leadership at a difficult time”, adding: “I want to help him to deliver the security and prosperity our country needs and be part of the strongest possible team that serves the United Kingdom and that can be presented to the country when the general election is held.”

Follow live for updates and analysis on reshuffle

The ex-party leader is no longer an elected politician as he stood down as an MP in 2016, having called the Brexit referendum and his campaign to remain in the EU losing the vote.

But the government has confirmed he will now enter the House of Lords as a life peer, giving him the opportunity to serve as a minister once more.

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Downing Street confirmed his salary would be that of a secretary of state in the Lords – £104,360 per year – but said Mr Cameron would no longer take his prime ministerial allowance, and would not take the daily allowance given to other peers.

The shock announcement came after the sacking of Suella Braverman as home secretary, who provoked widespread condemnation for an article she wrote in The Times, accusing the police of “playing favourites” with left-wing groups over right-wing and national activists.

It was the latest in a string of controversial remarks by the Tory MP, who is a popular member on the right of the party, including her claiming being homeless was a “lifestyle choice”.

We are expecting more movement at the very top of government as the day goes on, so keep up to date with who’s in and who’s out in our list below.

Read more:
Three key questions about Cameron’s comeback

Who is in?

David Cameron

Lord Cameron, who brought the Tories back to power as part of a coalition with the Liberal Democrats in 2010, has returned to government as foreign secretary.

Many of the party’s One Nation MPs – closer to the centre of politics – may welcome the return of Lord Cameron, who secured them two victories at general elections and is well known internationally.

But he does not come without his controversies, including his austerity policies, decisions over Brexit, his push for closer ties with China, and accusations of lobbying when employed by Greensill.

In a lengthy statement released after his appointment, Lord Cameron said the UK faces a “daunting set of international challenges”, including wars in Ukraine and the Middle East.

He said: “While I have been out of frontline politics for the last seven years, I hope that my experience – as Conservative leader for eleven years and prime minister for six – will assist me in helping the prime minister to meet these vital challenges.”

James Cleverly

Having served as foreign secretary since September last year – after being appointed by then prime minister Liz Truss – James Cleverly will now move to the Home Office as home secretary.

Speaking to broadcasters from his new department, he said it was a “fantastic job” and it would be “a real privilege to serve”.

He added: “I’m absolutely committed to stopping the boats, as we promised, but also making sure that everybody in the UK feels safe and secure, going around, going about their daily business, knowing that the government is here to protect them”.

Steve Barclay

Brought in as health secretary when Mr Sunak took over the leadership last October, Steve Barclay may have been hoping to keep his post.

But after a lot of rumours he may be dropped from cabinet altogether, he has now been announced as taking over the Department for Environment, Food and Rural Affairs.

Taking to social media after his appointment, Mr Barclay said: he would be focusing on three areas – “backing British farming and fishing; championing rural communities; and protecting the environment”.

He added: “As an MP for a rural area I know how important these issues are to many people up and down our country.”

Victoria Atkins

Mr Barclay’s job has been handed over to Victoria Atkins, who will now be in charge of the Department of Health and Social Care (DHSC).

It will be the first time Ms Atkins will hold a secretary of state role, having held more junior positions in the past.

Most recently, she has been financial secretary to Treasury.

Jeremy Hunt

Jeremy Hunt will remain chancellor, having been brought in by Ms Truss after the disaster of her mini-budget, and kept on by Mr Sunak.

Richard Holden

After holding a minor ministerial role at transport – albeit an important one, covering roads and local transport – Richard Holden is now a fully-fledged cabinet member.

He has become the new party chairman, and will be leading on the Tories’ next election campaign.

Greg Hands

Former party chairman Greg Hands, who up until this morning was posting chairman-like attacks on social media against his opponents, has now been demoted.

No longer leading on the electoral mission, he will hold a mid-range ministerial role at the Department for Business and Trade.

Mr Hands said he was “disappointed to be leaving the job”, but revealed he was “able to choose” to return to work in trade – an area where he has been a minister three times before and “a job I also love”.

He added: “I even kept my business cards from last time.”

Laura Trott

Having been a junior minister at the Department for Work and Pensions, Laura Trott has now been made chief secretary to the Treasury.

John Glen

Ousted from that role, is John Glen.

A treasury colleague of Mr Sunak’s and a close ally, there had been rumours of a bigger office of state.

But instead he now takes on the role of paymaster general – a defender and, sometimes, attack dog for the prime minister in the Commons.

Lee Rowley
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Lee Rowley

Having worked as a junior minister in the Department for Levelling Up, Housing and Communities since September last year, Lee Rowley gets a promotion in this reshuffle to housing secretary.

It makes him the 16th person to hold the post since the Tories came to power in 2010.

Who is out?

Suella Braverman

As we have reported, Ms Braverman has been sacked as home secretary and is no longer a minister of any kind, so will return to the backbenches as an MP.

In a statement released after her dismissal, Ms Braverman said: “It has been the greatest privilege of my life to serve as home secretary. I will have more to say in due course.”

It is the second time she has lost the job of home secretary after she resigned from Ms Truss’s government for breaking the ministerial code.

Rachel Maclean

The former housing minister announced on Twitter that she had been sacked – or “asked to step down”.

Ms Maclean said she was “disappointed” by Mr Sunak’s decision, but added: “It has been a privilege to hold the position and I wish my successor well.”

Paul Scully

A former mayoral hopeful, Paul Scully has been sacked as the minister for London, as well as his role as minister for tech and digital economy, Sky News understands.

Therese Coffey

After she was seen walking into Number 10 this morning – following a brief pause to stroke Larry the cat – it was thought Environment Secretary Therese Coffey may have kept a role in government.

But an exchange of letters between her and the prime minister released two hours later shows she is off, telling Mr Sunak: “I consider it is now the right time to step back from government.”

She marked having served “all five Conservative prime ministers” since getting a role back in 2014, but said she had “always been most proud of in representing my constituents… and acting on local issues”.

Mr Sunak wrote back to “express my gratitude to you for your years of dedicated ministerial service”, as well as her “friendship to me personally”.

Nick Gibb

Schools Minister Nick Gibb said he had quit the government and would not stand at the next general election, adding: “I campaigned for Rishi last summer and I remain an enthusiastic supporter of the prime minister’s leadership.”

Neil O'Brien

Health minister Neil O’Brien also announced he was stepping down – despite being due to play a key role in delivering Mr Sunak’s ban on smoking and vaping in the younger generation.

Will Quince

Another health minister, Will Quince, has also stepped down from his role in a letter to the prime minister.

In it, he said due to his decision to stand down as an MP at the next election and recently becoming a specialist reserve officer in the army, “now feels like the right time to leave government”.

Jesse Norman

Transport minister Jesse Norman has also quit, revealing in a letter that he had let the chief whip know his plans to step down “some months ago”.

Jeremy Quin

The now former paymaster general Jeremy Quin said he was offered “reassurance” that he could stay in government by the prime minister, but he has decided to “step back to concentrate on projects in Horsham” – his constituency.

George Freeman

Another MP to stand down from his post is George Freeman, who had been a science minister since February – but held a number of roles beforehand.

In a letter to the prime minister, he said he had made the decision “with a heavy heart”, but added: “The time has come for me to focus on my health, family wellbeing and life beyond the frontbench”.

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What is a wealth tax, how would it work in the UK and where else has one?

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

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Lord Kinnock calls for ‘wealth tax’

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer at the launch of the 10-year health plan in east London. Pic: PA
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Will Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer impose a wealth tax? Pic: PA

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

Read more:
No wealth tax under a Labour govt, Rachel Reeves said in 2023

UN criticises Starmer’s welfare reforms and warns measures will ‘increase poverty rates’

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Wealth tax would be a ‘mistake’

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Bogota in Colombia, which has a wealth tax
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Bogota in Colombia, which has a wealth tax

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

Norway has both a municipal and state wealth tax. Pic: Reuters
Image:
Norway has both a municipal and state wealth tax. Pic: Reuters

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters
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Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

Zurich is Switzerland's wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters
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Zurich is Switzerland’s wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

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Jingye and Whitehall officials hold talks over British Steel future

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

Money blog: €1 home goes on sale – but there are T&Cs

Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

More on British Steel

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

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Inside the UK’s last blast furnaces

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Read more from Sky News:
Is Britain going bankrupt?
Public finances in ‘relatively vulnerable position’, OBR warns

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Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”

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Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

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Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

Ethereum co-founder Joseph Lubin said that corporate ETH treasuries are vital for driving ecosystem growth.

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