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Rwanda has not received any additional funding for the new treaty it has signed to revive the UK government’s asylum plan, the home secretary has said.

James Cleverly told a press conference in the Rwandan capital of Kigali: “Let me make it clear. The Rwandan government has not asked for and we have not provided any funding linked to the signing of this treaty.”

However, Mr Cleverly added that while Rwanda did not ask for money specifically for the treaty, “dealing with migration” was not a “cost-free option”.

“The financial arrangement which inevitably comes as part of an international agreement reflects the costs that may be imposed on Rwanda through the changes that this partnership has created in their systems: in their legal systems and their institutions,” he said.

“No money was asked for by the Rwandans for this treaty. No money was provided to the Rwandans for this treaty.

“Dealing with migration is important and it is not a cost-free option, but we regard it as the right thing to do.”

Politics latest: ‘Unlikely’ treaty alone will rescue policy

Mr Cleverly was responding to questions about reports Rwanda was in line for an additional £15m to secure the treaty – on top of the £140m that has already been committed to the scheme by the UK government.

Under the Rwanda plan, people who arrive in the UK by unauthorised means would be sent to the African country while their asylum claim is processed.

On arrival, people could be granted refugee status and allowed to stay, or apply for sanctuary in another “safe third country”.

The policy has formed a core part of the government’s strategy to tackle small boat crossings in the Channel in the hope it will act as a deterrent.

However, it has been forced to sign the new treaty today after the Supreme Court ruled that the policy was “unlawful” because there was a chance people sent there could be returned to another country where they were at risk of persecution under a process known as “refoulement”, in what would be a breach of international law.

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Cleverly signs new Rwanda deal

Rwanda ‘very much committed’ to deal

After signing the new treaty today, Mr Cleverly told the press conference he felt “very strongly” that the deal “addresses all the issues raised by the Supreme Court”.

“We’ve addressed the issues that were raised by their Lordships in this treaty and that will be reflected in domestic legislation soon because we are absolutely committed to breaking the business model of these people smuggling gangs, to create a safe and welcoming environment with our friends and partners here in Rwanda, but also making sure that mass migration is well-managed into the future,” he said.

Rwanda’s foreign affairs minister Vincent Biruta, sitting alongside Mr Cleverly, said he believed his country had been “unfairly treated” by the courts, international organisations and the media.

But he said his country was “very much committed” to the asylum deal and would remain on board with it even in the event of further setbacks and delays.

“This is the reason why we worked with our colleagues from the UK to address the concerns of the UK Supreme Court,” Mr Biruta said.

He added that while some elements could still be adjusted, “we are committed to the partnership and we don’t have a plan to withdraw from this cooperation”.

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Illegal migrants ‘breaking into our country’

Number 10 moves to clarify fears over family visa salary cap

Mr Cleverly’s visit to Rwanda came just a day after the government launched separate measures to cut legal migration to the UK after recent statistics showed net migration at a record high of 745,000 in 2022.

In a five-point plan outlined in the Commons yesterday, Mr Cleverly said the government would introduce a ban on care workers bringing their families over to the UK and raise the minimum salary required for a skilled worker visa to £38,700 from next spring.

The minimum threshold for a family visa will also be raised to £38,700 to “ensure people only bring dependants whom they can support financially”. Currently, it stands at the 2012 rate of £18,600.

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The increase in salary threshold has sparked concerns that British citizens who are poorer will no longer be able to live with their foreign partners in the UK.

Downing Street sought to assuage the concerns by saying that the minimum income of £38,700 was for a “household as a whole”.

A Number 10 spokesman also said that Britons earning less than £38,700 could still live with their foreign spouses in the UK in “exceptional circumstances”.

“That is just one way that people can demonstrate their ability to support a dependant,” the prime minister’s official spokesman explained. “They can also demonstrate this through their level of savings.”

“If you don’t meet the minimum income requirement, you may also be able to bring a dependant to the UK if you get certain benefits, for example, disability living allowance,” the spokesman added.

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China Merchants Bank tokenizes $3.8B fund on BNB Chain in Hong Kong

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China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

CMBI’s tokenization initiative with BNB Chain builds on its previous work with Singapore-based DigiFT, which tokenized its fund on Solana in August.

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Chancellor admits tax rises and spending cuts considered for budget

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

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Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

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Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

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The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
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Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

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Crypto maturity demands systematic discipline over speculation

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Crypto maturity demands systematic discipline over speculation

Crypto maturity demands systematic discipline over speculation

Unlimited leverage and sentiment-driven valuations create cascading liquidations that wipe billions overnight. Crypto’s maturity demands systematic discipline.

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