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The UK’s approach to China is “more robust” than its allies, Rishi Sunak has claimed, as he continues to face calls to use more aggressive language to describe Beijing in the wake of two cyberattacks.

The prime minister said suggestions the government was not taking strong action against China were “completely and utterly wrong”.

Mr Sunak defended the government’s stance towards China while appearing at the Liaison Committee on Tuesday afternoon, where he faced questions from parliament’s select committee chairs.

Business and Trade Committee chair Liam Byrne challenged Mr Sunak that where allies acted on China, the UK was merely “thinking about it”.

But Mr Sunak claimed such an assertion was false, saying: “Our approach to China is undoubtedly more robust than, I’d say, most of our allies, in fact, actually.

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“I am entirely confident that our approach to dealing with the risk that China poses is very much in line with our allies and in most cases goes further in protecting ourselves.”

More on China

Mr Sunak’s appearance at the committee came after the government blamed China “state-affiliated actors” for two “malicious” cyberattack campaigns in the UK.

Two incidents

Making a speech in the Commons, Deputy Prime Minister Oliver Dowden revealed the two incidents involved an attack in 2021 on the Electoral Commission – responsible for overseeing elections and political finance – alongside targeted attacks against China-sceptic MPs.

According to the National Cyber Security Centre (NCSC), the incident at the commission, discovered in 2022, saw the Electoral Roll compromised, including the names and addresses of tens of millions of voters.

But “reconnaissance activity” in 2021, targeting the accounts of former Tory leader Sir Iain Duncan Smith, former Conservative education minister Tim Loughton, crossbench peer Lord Alton of Liverpool and SNP MP Stewart McDonald was unsuccessful.

Are these MPs really parliament’s best interrogators?


Jon Craig - Chief political correspondent

Jon Craig

Chief political correspondent

@joncraig

Job done. The prime minister will be pleased with how that went. No news. No gaffes. And not too tetchy. To be blunt, it was dull.

The highlights were Mr Sunak’s clashes with Labour’s Dame Diana Johnson and the SNP’s Joana Cherry on the government’s Rwanda policy.

He didn’t like it when Ms Cherry asked if he was proud of telling Tory MPs to vote against preventing Afghans who supported British forces in Afghanistan from being deported to Rwanda.

The closest Mr Sunak came to making news was in his comments on the two big foreign stories of this week: the UN Israel-Hamas ceasefire vote and Chinese cyber-hacking.

He stressed the need for more aid into Gaza and agreed with Tory MP Stephen Crabb that the UN ceasefire resolution perhaps ought to have included criticism of Hamas.

And on China, he claimed the UK’s approach was more robust tan other countries, prompting a clash with Labour’s Liam Byrne, who disputed that claim.

To be fair, he did confirm that the public could “safely assume” the pensions triple-lock would remain in place throughout the next parliament if the Tories win the election.

But that was as good as it got. The prime minister even had the brass neck to say he deplored leaks when asked about reports about the chancellor’s national insurance cut ahead of this month’s budget.

The session had begun with the gentlest of questions from former Treasury minister Harriet Baldwin, who asked: “How’s the economic strategy going?” It was so bland it could have been a planted question.

And the hearing ended with a rambling chat with committee chairman Sir Bernard Jenkin about reforming parliament to encourage more young people to engage in politics. That got nowhere.

In just over 90 minutes, the prime minister got off extremely lightly. If these are parliament’s best interrogators, Mr Sunak can rest easy as he begins his Easter break.

The government has said the attack on parliamentarians was carried out by the APT31 – a “China state-affiliated” group but less is known about who bears responsibility for the attack on the commission

However, the NCSC says it is “highly likely compromised by a China state-affiliated cyber entity”.

‘Like an elephant giving birth to a mouse’

Mr Dowden announced sanctions against a front company, Wuhan Xiaoruizhi Science and Technology Company, and two individuals, Zhao Guangzong and Ni Gaobin, who are linked to APT31.

But the response was immediately met with derision from Tory MPs, including Sir Iain, who said Mr Dowden’s statement was “like an elephant giving birth to a mouse”.

MPs within Mr Sunak’s party have urged him to upgrade the UK assessment of China from an “epoch-defining challenge” to a “threat” – something Mr Dowden suggested could be on the cards.

During the Liaison Committee session the prime minister highlighted how the UK had removed Huawei equipment from their telecommunications networks while European allies had not, and said the EU had not placed restrictions on exports of sensitive technology to China.

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He also argued that the UK was less dependent on China for trade than Australia, Korea, Japan, the US, and Germany and that there was a security agency dedicated to helping companies manage threats from states over espionage and IP threats.

China denial

China has firmly denied responsibility for the attacks and has accused the UK of “outright political manipulation”.

A spokesman said the UK had “falsely accused China of attempting to interfere with UK democracy”.

“We strongly urge the UK to immediately stop spreading false information about China, stop such self-staged, anti-China farces, and refrain from going further down the wrong path that leads only to failure.”

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Building societies step up protest against Reeves’s cash ISA reforms

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Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

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The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

More on Rachel Reeves

“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

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In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

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Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

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Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

The government has declined to rule out a “wealth tax” after former Labour leader Neil Kinnock called for one to help the UK’s dwindling finances.

Lord Kinnock, who was leader from 1983 to 1992, told Sky News’ Sunday Morning With Trevor Phillips that imposing a 2% tax on assets valued above £10 million would bring in up to £11 billion a year.

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On Monday, Sir Keir Starmer’s spokesperson would not say if the government will or will not bring in a specific tax for the wealthiest.

Asked multiple times if the government will do so, he said: “The government is committed to the wealthiest in society paying their share in tax.

“The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

He added the government has closed loopholes for non-doms, placed taxes on private jets and said the 1% wealthiest people in the UK pay one third of taxes.

Chancellor Rachel Reeves earlier this year insisted she would not impose a wealth tax in her autumn budget, something she also said in 2023 ahead of Labour winning the election last year.

Asked if her position has changed, Sir Keir’s spokesman referred back to her previous comments and said: “The government position is what I have said it is.”

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The previous day, Lord Kinnock told Sky News: “It’s not going to pay the bills, but that kind of levy does two things.

“One is to secure resources, which is very important in revenues.

“But the second thing it does is to say to the country, ‘we are the government of equity’.

“This is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top unscathed all the time while everybody else is paying more for getting services.

“Now, I think that a gesture or a substantial gesture in the direction of equity fairness would make a big difference.”

The son of a coal miner, who became a member of the House of Lords in 2005, the Labour peer said asset values have “gone through the roof” in the past 20 years while economies and incomes have stagnated in real terms.

In reference to Chancellor Rachel Reeves refusing to change her fiscal rules, he said the government is giving the appearance it is “bogged down by their own imposed limitations”, which he said is “not actually the accurate picture”.

A wealth tax would help the government get out of that situation and would be backed by the “great majority of the general public”, he added.

His comments came after a bruising week for Prime Minister Sir Keir Starmer, who had to heavily water down a welfare bill meant to save £5.5bn after dozens of Labour MPs threatened to vote against it.

With those savings lost – and a previous U-turn on cutting winter fuel payments also reducing savings – the chancellor’s £9.9bn fiscal headroom has quickly dwindled.

In a hint of what could come, government minister Stephen Morgan told Wilfred Frost on Sky News Breakfast: “I hold dear the Labour values of making sure those that have the broadest shoulders pay, pay more tax.

“I think that’s absolutely right.”

He added that the government has already put a tax on private jets and on the profits of energy companies.

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UK sentences 2 men to prison over $2M cold-calling crypto scam

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UK sentences 2 men to prison over M cold-calling crypto scam

UK sentences 2 men to prison over M cold-calling crypto scam

Two men who admitted to running a crypto scheme that defrauded 65 investors have both been sentenced to over five years in prison.

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