Connect with us

Published

on

The government’s plan to deport asylum seekers to Rwanda is “probably dead” after it was ruled unlawful this week by the Supreme Court, one of its former justices has said.

The court confirmed its “unanimous” decision on Wednesday after 18 months of legal battles, saying those sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.

Politics live: Chancellor ‘wants to lower tax burden’

Prime Minister Rishi Sunak has pledged to push on with the scheme – which aims to deter asylum seekers travelling to the country on small boats – promising to turn the agreement with the east African nation into a legally binding treaty to allay the court’s fears, and to change the law in the UK to define Rwanda as a “safe country”.

And Chancellor Jeremy Hunt told Sky News’ Sunday Morning with Trevor Phillips it was the government’s “plan” to bring forward the new treaty and legislation quickly.

But speaking on the same programme, Lord Sumption said such measures “wouldn’t work internationally”, adding it was not a proposal to change the law “but to change the facts”.

Please use Chrome browser for a more accessible video player

Sunak presses ahead with Rwanda plan

MPs on the right of the Conservative Party have been up in arms since the ruling – including the recently sacked home secretary Suella Braverman, who has demanded the government withdraws from international treaties like the European Human Rights Convention or ignores the obligations to ensure the Rwanda scheme can go ahead.

More on Rishi Sunak

But Lord Sumption called that option “extreme”.

Defending the court’s ruling, he said: “They carefully avoided the political broader merits of the Rwanda project. They confined themselves to looking at whether Rwanda was a safe place to send people to. That was the sole issue.

“And what they decided was that it wasn’t because Rwanda’s record of expelling refugees to places which are or may be unsafe was bad, and because Rwanda just didn’t have the cultural, administrative or political substructure which was necessary to perform an agreement of that sort.”

The peer added: “You can’t in a matter of weeks or months or even years simply turn a country like that into one with an impartial civil service, an independent judiciary and the whole administrative culture.

“Ultimately, what the main problem about this scheme is that it outsources to Rwanda the decision about whether people have refugee status or not. And Rwanda just is not up to the job.”

Read more:
Analysis: PM’s suggestion after Rwanda ruling is disingenuous
Explainer: What we know about the future of the Rwanda scheme – and what we don’t

Lord Sumption said changing the UK law to insist the country is safe may work “domestically”, but even if the government chose to ignore its obligations to international treaties initially, it would “presumably intend to comply” with final orders from the European court.

Asked by Trevor Phillips if the scheme was now “dead” as a result of the Supreme Court ruling, the peer said: “I think the current Rwanda’s scheme is probably dead, but we obviously have to suspend judgements until we see what this legislation or this new treaty looks like.

“There are other possibilities. They’re not terribly attractive, but they do exist.”

Asked if he was comfortable with a change in the law to ensure the Rwanda scheme could push ahead, Mr Hunt told Trevor Phillips: “Yes, that is our democratic right as members of parliament, we made that commitment to the British people.”

On small boat crossings, the chancellor said the government was “making progress, but we haven’t yet finished the job”, adding: “We’ve been very clear we will do what it takes because a government’s job is to secure borders.

“We don’t think the system at the moment is fair to the British people, and nor is it fair to the people who are being smuggled by these evil gangs. We should decide who comes here and not those gangs.

“We will do it lawfully. And if we need to change the law, we’ll do that.”

Continue Reading

Politics

Cutting cash ISA allowance could backfire – and make mortgages more expensive, MPs warn

Published

on

By

Cutting cash ISA allowance could backfire - and make mortgages more expensive, MPs warn

Cutting the annual allowance for cash ISAs could backfire in multiple ways, an influential group of MPs has warned the government.

For months, speculation has been growing that the chancellor may slash the yearly limit for tax-free savings – potentially from £20,000 to £10,000.

The government is hoping to encourage savers to invest in stocks and shares ISAs instead, which can offer greater long-term returns and improve financial health.

But according to the Treasury Committee, slashing allowances would be unlikely to achieve this – and could lead to higher prices for consumers.

Please use Chrome browser for a more accessible video player

Chancellor faces tough budget choices

Building societies rely on cash ISA savings to fund mortgage lending – and a drop in deposits might lead to higher interest rates or fewer products on the market.

Committee chairwoman Dame Meg Hillier said “we are a long way” from achieving a culture where substantial numbers of Britons invest in the stock market.

“This is not the right time to cut the cash ISA limit,” she warned. “Instead, the Treasury should focus on ensuring that people are equipped with the necessary information and confidence to make informed investment decisions.

More on Budget

“Without this, I fear the chancellor’s attempts to transform the UK’s investment culture simply will not deliver the change she seeks, instead hitting savers and borrowers.”

Read more: How to get started with a stocks and shares ISA

Please use Chrome browser for a more accessible video player

Govt ‘not satisfied’ after inflation sticks at 3.8%

The latest figures suggest two-thirds of contributions to ISAs in the 2023/24 tax year went to cash accounts – bringing total holdings to £360bn.

An estimated 14.4 million consumers solely save in a cash ISA, with the average balance standing at £6,993.

Surveys suggest that, if allowances were cut, consumers may move their cash to alternative savings accounts where they would have to pay tax on interest.

Skipton Group executive Charlotte Harrison previously warned: “Building societies, which funds over a third of all first-time buyer mortgages, rely on retail deposits like cash ISAs to fund their lending.

“If ISA inflows fall, the cost of funding is likely to rise, and that means mortgages could become both more expensive and harder to access.”

She claimed a policy change could end up “penalising savers who want low-risk, flexible options” – adding: “Cash ISAs work. Undermining them doesn’t.”

Read more money news:
What’s behind surprising rise in retail sales

Tesco rolls out bodycams to security staff

Please use Chrome browser for a more accessible video player

Tax hikes possible, Reeves tells Sky News

Chancellor Rachel Reeves said: “At the moment, often returns on savings and returns on pensions are lower than in comparable countries around the world.

“I do want to make sure that when people put something aside for the future, they get good returns on those savings.”

The committee’s warning comes amid speculation over whether Ms Reeves will raise income tax at next month’s budget – breaking a key Labour manifesto pledge.

Newspaper reports have suggested that the basic rate of income tax could be increased for the first time since the 1970s – up 1p to 21%.

This could raise about £8bn and help tackle a black hole in the country’s finances, but risks squeezing consumers further as a cost-of-living crisis continues.

A 1p rise to the higher band of income tax – taking that rate to 41% – is also believed to be under consideration, but this would only boost the nation’s coffers by £2bn.

Ms Reeves has refused to rule out such a move, telling Sky’s deputy political editor Sam Coates that she is looking at both tax rises and spending cuts ahead of her statement to the Commons on 26 November.

Continue Reading

Politics

Bank of England probes data-mining lending strategies fueling AI bets

Published

on

By

Bank of England probes data-mining lending strategies fueling AI bets

Bank of England probes data-mining lending strategies fueling AI bets

The Bank of England is worried that a rise in financiers’ lending to data center lending may cause an AI bubble reminiscent of the dot-com crash in the early 2000s.

Continue Reading

Politics

Trump to nominate SEC’s ‘pro-crypto’ Michael Selig as CFTC chair: Report

Published

on

By

<div>Trump to nominate SEC's 'pro-crypto' Michael Selig as CFTC chair: Report</div>

<div>Trump to nominate SEC's 'pro-crypto' Michael Selig as CFTC chair: Report</div>

The rumored nomination of Michael Selig follows the CFTC nomination process hitting a snag in September when Brian Quintenz was withdrawn.

Continue Reading

Trending