Tory leadership hopefuls invoked their political idols Ronald Reagan and Margaret Thatcher in final speeches before the contest is whittled down to two.
While there was no love lost for Sir Keir Starmer – with jokes about the freebies row and accusations of managed decline – one contender also channelled his predecessor Sir Tony Blair with a pitch for a “New Conservative Party”.
The comments from Robert Jenrick echo the former prime minister’s “New Labour” philosophy that brought Labour back from the brink to win them three elections after 18 years in opposition.
The Tories are hoping to eventually replicate that success after their worst-ever defeat at the ballot box in July.
Mr Jenrick is in the running for the top spot alongside Tom Tugendhat, James Cleverly and Kemi Badenoch.
Image: (Left to right) Tory leadership candidates, Kemi Badenoch, Robert Jenrick , James Cleverly and Tom Tugendhat. Pic: PA
The speeches came on the final day of the Conservative conference in Birmingham, which has acted as a hustings for the four candidates to make their case to fellow MPs and party members, who will ultimately pick the winner.
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Former home secretary Mr Cleverly told the conference he “hadn’t planned to run for leader”, and apologised to delegates “on behalf of the Conservative parliamentary party who let you down”.
However, his central message was for the party to be more “enthusiastic” and give a sense of a better future to win back those who switched to Labour and other parties.
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‘Let’s be more like Reagan’
Image: James Cleverly channelled Ronald Reagan. Pic: AP
Channelling his political idol, the former US President Ronald Reagan, he said: “Let’s be more like Reagan. Let’s be enthusiastic, relatable, positive, optimistic. Let’s be more normal.
“Let’s sell the benefits of conservatism with a smile, because if we do…we can see off the threat from Reform and the Lib Dems and win back Labour, and re-energise those Conservatives who stayed at home at the last general election, get them off the sofa to the ballot box and voting Conservative again.”
The speech was not without its swipes, however.
As well as attacks on Sir Keir Starmer and Reform leader Nigel Farage, who he said he would never do a deal with, Mr Cleverly made digs at the other candidates, in particular saying he didn’t “complain about immigration or walk away from the challenge” when he was in government.
Image: Jenrick promised a new Conservative party. Pic: PA
His speech made repeated references to a “new Conservative Party” under his leadership, with a five-point plan to reject mass migration, get rid of net zero, get Britain building, and provide a smaller state and a united country.
He too channelled a political idol, former prime minister Mrs Thatcher, saying the Tories need to offer reform similar to what she undertook after inheriting a Britain “broken in the 1970s” by a “stale Labour government”.
Badenoch: Time to tell the truth
Ms Badenoch, who has made a virtue out of being a straight-talker, repeated her central message that it is “time to tell the truth” and the public wants honest politicians.
Image: Badenoch says the Tories stopped defending capitalism. Pic: Reuters
The former business secretary said the July election defeat could “extinguish” the party if they do not learn the lessons, saying the result was because they stopped “acting like Conservatives” and embraced plans like net zero and oversaw higher taxes and greater immigration.
“We did not defend capitalism,” she said.
‘Conservative revolution needed’
Meanwhile former security minister Mr Tugendhat, from the moderate “one nation” wing of the party, spoke of the need for a “Conservative revolution”.
On migration, he said the solution was about “visas, not about foreign courts”, in an apparent swipe at his opponents who have been more outwardly hawkish on tackling the issue.
He said a migration cap, as promised by Mr Jenrick, “won’t work” because the UK has a skills shortage that relies on immigration – and that is something he wants to fix by funding more apprenticeships.
The contest will be whittled down to two next week in a vote by Tory MPs, then the membership will get the final say.
Up until the conference Mr Jenrick and Ms Badenoch, from the right of the party, were seen as the frontrunners, but the two have been embroiled in rows this week and polling for Sky News shows there is a path to victory for all candidates.
Image: Tom Tugendhat spoke of the need for a “Conservative revolution. Pic: Parsons Media
Mr Jenrick has come under pressure for claiming in a promotional video that UK special forces were “killing rather than capturing” terrorists, for fear of detainees being released under European human rights law.
Mr Tugendhat said the comments about the SAS were “wrong” and it is “upsetting” that the video had used footage of a soldier he served with in Afghanistan, who died soon after.
Ms Badenoch has come under criticism for claiming 10% of civil servants are so bad “they should be in jail” – comments she said were a joke, and for suggesting maternity pay is “excessive” – comments she said were “misrepresented”.
The acting chair of the Federal Deposit Insurance Corporation (FDIC), the regulatory body overseeing banks in the US, is reportedly considering guidance for tokenized deposit insurance and plans to launch an application process for stablecoins by year’s end.
Acting FDIC Chair Travis Hill, who has made bullish statements about tokenization in the past, told the Federal Reserve Bank of Philadelphia’s Fintech Conference on Thursday that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.
The FDIC protects depositors in the event of a bank failure and insures money in accounts at banks that are insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, as reported by Bloomberg.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the most prominent players in the space and launched a tokenized money market fund called BUIDL in 2024.
Stablecoin application regime by the end of the year
At the same time, Hill reportedly announced the agency is also working on a regime for stablecoin issuance and expects to issue a proposal for an application process by the end of 2025 as part of its duties in crafting rules under the GENIUS Act, according to Law360.
He said it’s still too early to know how many institutions will be interested, but the FDIC staff is working on the standards around capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been a high-growth area, with banks worldwide exploring this technology. The market capitalization of stablecoins is approximately $305 billion as of Friday, according to blockchain analytics platform DefiLlama.
Stablecoins have been a high-growth area this year, with a market capitalization of around $305 billion. Source: DefiLlama
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
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‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
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Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
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Wes Streeting: Faithful or traitor? Beth Rigby’s take
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.
The home secretary is set to unveil sweeping reforms to tackle illegal immigration, as she considers potential changes to human rights law.
Shabana Mahmood will announce on Monday a series of measures to make it easier to remove and deport illegal migrants, and reduce the “pull factors” that make the UK attractive to asylum seekers.
The Home Office said they would be the “most sweeping reforms to tackle illegal migration in modern times”.
She is said to believe that “excessive generosity and ease of remaining” in the UK, along with systemic barriers, has made deportations extremely difficult, The Times reported.
It is understood that many of the changes set to be proposed by the home secretary will be modelled on the Danish system, under which 95% of failed asylum seekers are deported.
Denmark has tighter rules on family reunions, and restricts some refugees to a temporary stay.
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UK considers copying Denmark’s immigration system
Ms Mahmood is also mulling reforms to the European Convention on Human Rights and human rights law to “end the abuse of the system that leads to unjustified claims to delay or stop deportations”, a Home Office source said.
The overhaul of modern slavery laws will require migrants to make a claim that they have been a victim as soon as they arrive in the UK, rather than allowing them to raise it unexpectedly later on, which has resulted in delayed deportations, The Telegraph reported.
The number of offences qualifying foreign criminals for automatic removal is also set to be increased, the paper said.
And judges are expected to be required to prioritise public safety over claims from migrants that deporting them would breach their family rights or put them at risk of “inhuman” treatment if they were returned to their home country.
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4:42
Sky News witnesses people smuggling operation in Dunkirk
Deportations are up – but so are boat crossings
Ahead of next week’s announcements, the Home Office released new figures showing 48,560 people have been removed from the UK since Labour came to power.
The figure, which includes failed asylum seekers, foreign criminals and others with no right to be in the UK, is a 23% increase compared to the 16 months before last year’s election.
Ms Mahmood said: “We’ve ramped up enforcement, deported foreign criminals from our streets, and saved taxpayers millions.
However, small boat crossings continue to rise – 39,075 people have made the journey so far this year, according to Home Office figures.
That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than the equivalent point in 2022, which remains the peak year for crossings.