Sir Keir Starmer’s government has not yet been in place for 100 days. By all accounts, things are not going well.
The Labour leader and his top ministers have had to backtrack after taking freebies totalling many thousands of pounds for clothing and entertainment. Sue Gray, the ex-civil servant he recruited as chief of staff, has accepted a salary larger than the prime minister while standing accused of cutting the pay of more junior special advisers coming into government.
The biggest announcement the government has made yet – cutting winter fuel payments for most pensioners – was poorly presented, coinciding with big pay rises for public sector trade unionists and leading to a rebellion by Labour MPs. So far, eight of them have either been suspended or resigned the whip. Labour is dropping in opinion polls. Meanwhile, the prime minister often seems defensive and belligerent when interviewed and at a loose end at important gatherings.
It is still early days. None of these teething troubles directly threaten a government that commands an overwhelming majority in the House of Commons. But there is universal agreement ranging from Sir Keir’s friends to his political foes that he needs to get a grip on running the country, starting with appointing the best people as his senior advisers and officials.
The historian Sir Anthony Seldon, the author of a series of books on prime ministers in 10 Downing Street, warns “Starmer needs to act quickly. He has been naive and complacent on staff appointments. Get it right now and he can fly.”
Image: Cabinet Secretary Sir Simon Case will step down by the end of the year as he has been suffering from a neurological condition. Pic: PA
This week a major opportunity presented itself. The cabinet secretary, Sir Simon Case, at last announced he will step down at the end of this year. The man or woman who fills his shoes will be vital in properly establishing and relaunching the way the UK is ruled by the new government.
According to the official advert: “The cabinet secretary and head of the civil service is the most senior civil servant in the UK and the principal official adviser to the prime minister and Cabinet.”
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The salary is £200,000 a year, also more than the prime minister, plus a hefty 28.7% pension contribution. Applicants have until 11.55pm on 20 October to get in their CV, a 1000-word statement, a diversity questionnaire and a declaration of interests.
Sir Simon’s departure had been long expected. Some blame the prime minister for not forcing the vacancy sooner. Cabinet secretary is the most important of an unprecedented number of unfilled posts among Starmer’s top advisers, also including principal private secretary (PPS), his personal civil service aide, and national security adviser. Without them, few are surprised he has not got on top of being prime minister.
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Sir Simon has been absent for long periods due to a serious neurological illness. In truth, he never really settled in as the respected boss of some half a million civil servants. Still only 45, he was much younger than most cabinet secretaries when installed in 2020 by the chaotic Boris Johnson government after Mark Sedwill was unceremoniously pushed aside. Sir Simon came from being private secretary to Prince William. He had also been PPS to Theresa May.
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‘Donations not given out of altruism’
Rightly or wrongly, senior Labour figures felt he struggled to serve the new government. An unproven suspicion lingers on the Labour side that he may have been behind leaks damaging to Sue Gray.
The successful working of the UK’s constitutional machinery depends on an impartial cabinet secretary. His main job (so far they have all been men) is to ensure the civil service delivers the government’s programme effectively.
The cabinet secretary must also advise the prime minister whether their plans make sense, are acceptable and conform to expected ethical standards. In the perceptive TV comedy series Yes Prime Minister the catchphrase of cabinet secretary Sir Humphrey Appleby was: “Is that wise, prime minister?”
By the time they get the top job, most cabinet secretaries have worked for governments and ministers across the political spectrum. Sir Gus O’Donnell was a close adviser to John Major, Tony Blair and Gordon Brown. In 2010 he oversaw the transition to what became the Conservative/Liberal Democrat coalition between David Cameron and Nick Clegg.
When Lord O’Donnell’s successor Sir Jeremy Heywood died prematurely of cancer in 2018 Blair, Brown, Cameron, Clegg and Theresa May led the official mourners. Sir Jeremy’s advice was hung on by successive prime ministers. If anything, he was too helpful and got too close. He and David Cameron were both keen to involve the disgraced former businessman Lex Greensill with government business.
Image: Former chief Brexit negotiator Olly Robbins is Sue Gray’s top pick for cabinet secretary. Pic: Reuters
Past history and present tensions suggest that it would be a mistake to appoint Olly Robbins as the cabinet secretary. He is widely seen as Sue Gray’s preferred candidate. Downing Street might benefit from some creative tension. Besides, Robbins’ experience, including as a Brexit negotiator, is better suited to national security adviser.
Sir Keir has inherited a mess created by Rishi Sunak. In the dying days of the last government, Mr Sunak attempted to promote his national security council adviser, Tim Barrow, to US ambassador and to replace him with General Gwyn Jenkins. The Labour opposition cried foul successfully. As a result, both jobs and the people involved with them are now up in the air. A decision on the new Washington ambassador is due after the American election in November.
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Prime ministers who appoint friends and cronies exclusively as their key advisers tend to come a cropper, as the five recent Conservative leaders found out eventually. Far better to bring in someone of proven administrative expertise as cabinet secretary.
As usual, there are some highly rated senior male civil servants, with experience heading government departments, who could fill the role, led by Jeremy Pocklington, permanent secretary, or “perm sec”, at DESNZ, the energy department, and Sir Peter Schofield, department for work and pensions’ perm sec.
The new government has made much of having the first female chancellor of the exchequer. If Sir Keir fancies appointing the first woman cabinet secretary there is a rich and colourful field to choose from.
Sarah Healey, perm sec at DHCLG (communities) and formerly the culture department, is widely respected, as is Tamara Finkelstein at DEFRA. In Lady Finkelstein’s case, some in Labour might balk at handing the top job to the wife of Danny Finkelstein, the prominent Conservative peer and Times newspaper columnist.
Dame Antonia Romeo, currently in charge of the Ministry of Justice, has held a number of senior civil service jobs. During Liz Truss’s short-lived tenure, she was briefly appointed Treasury perm sec. Her earlier, high profile, high fashion, approach to being UK consul general in New York brought her into conflict with the British embassy in Washington DC.
Image: Former John Lewis and Ofcom head Sharon White has ruled herself out by being on the selection panel. Pic: JLP
Former female civil servants who might want to return to government include Dame Melanie Dawes, currently cautiously low profile at the media regulator Ofcom, and Baroness Minouche Shafik, former perm sec at the department for international development and deputy governor of the Bank of England. She has just finished as president of Columbia University in New York City. Then there is Helen McNamara, who had a bruising time as deputy cabinet secretary during the COVID pandemic.
It is not yet known who of those above will put their names forward. One of the most widely tipped names is not applying. Sharon White, of John Lewis, Ofcom and the Treasury, could have been the first woman and the first black person to be cabinet secretary. She has decided to sit on the selection panel instead, alongside Gus O’Donnell.
The final choice of the next cabinet secretary will be made by the prime minister. The pressure is on Sir Keir to think out of his comfort zone if he is to be guided from the missteps of the first 100 days into four years of competent and ethical government.
Prediction markets Polymarket and Kalshi view Kevin Hassett, US President Donald Trump’s National Economic Council director, as the favorite to replace Jerome Powell as the next Federal Reserve chair.
The odds of Hassett filling the seat have spiked to 66% on Polymarket and 74% on Kalshi at the time of writing. Hassett is widely viewed as crypto‑friendly thanks to his past role on Coinbase’s advisory council, a disclosed seven‑figure stake in the exchange and his leadership of the White House digital asset working group.
Founder and CEO of Wyoming-based Custodia Bank, and a prominent advocate for crypto-friendly regulations, Caitlin Long, commented on X:
“If this comes true & Hassett does become Fed chairman, anti-#crypto people at the Fed who still hold positions of power will finally be out (well, most of them anyway). BIG changes will be coming to the Fed.”
Hassett is a long-time Republican policy economist who returned to Washington as Trump’s top economic adviser and has now emerged as the market-implied frontrunner to lead the Fed.
His financial disclosure reveals at least a seven‑figure Coinbase stake and compensation for serving on the exchange’s Academic and Regulatory Advisory Council, placing him unusually close to the crypto industry for a potential Fed chair.
Still, crypto has been burned before by reading too much into “crypto‑literate” resumes. Gary Gensler arrived at the Securities and Exchange Commission with MIT blockchain courses under his belt, but went on to preside over a wave of high‑profile enforcement actions, some of which critics branded as “Operation Chokepoint 2.0.”
A Hassett-led Fed might be more open to experimentation and less reflexively hostile to bank‑crypto activity. Still, the institution’s mandate on financial stability means markets should not assume a one‑way bet on deregulation.
The Hassett odds have jumped just as the Fed’s own approach to bank supervision has received pushback from veterans like Fed Governor Michael Barr, who earned his reputation as one of Operation Chokepoint 2.0’s key architects.
According to Caitlin Long, while he Barr “was Vice Chairman of Supervision & Regulation he did Warren’s bidding,” and he “has made it clear he will oppose changes made by Trump & his appointees.”
On Nov. 18, the Fed released new Supervisory Operating Principles that shift examiners toward a “risk‑first” framework, directing staff to focus on material safety‑and‑soundness risks rather than procedural or documentation issues.
In a speech the same day, Barr warned that narrowing oversight, weakening ratings frameworks and making it harder to issue enforcement actions or matters requiring attention could leave supervisors slower to act on emerging risks, arguing that gutting those tools may repeat pre‑crisis mistakes.
Days later, in Consumer Affairs Letter 25‑1, the Fed clarified that the new Supervisory Operating Principles do not apply to its Consumer Affairs supervision program (an area under Barr’s committee as a governor).
If prediction markets are right and a crypto‑friendly Hassett inherits this landscape, his Fed would not be writing on a blank slate but stepping into an institution already mid‑pivot on how hard (and where) it leans on banks.
HashKey Holdings, the parent company of one of Hong Kong’s biggest licensed crypto exchanges, moved a step closer to a public listing, according to new filings from the Hong Kong Stock Exchange (HKEX).
On Monday, the HKEX published a 633-page post-hearing information pack for HashKey Holdings. The document was published at the request of The Stock Exchange of Hong Kong Limited and the local financial regulator, the Securities and Futures Commission (SFC).
A post-hearing information pack is only published after HKEX’s listing committee formally clears an applicant at the listing hearing. In other words, without explicitly stating it, this document indicates that HashKey has moved closer to listing on the exchange and is progressing toward its initial public offering (IPO).
At the same time, the document stressed that the deal is not yet finalized. “The listing application referred to in this document has not yet been approved; the HKEX and the SFC may accept, return, or reject the public offering and/or listing application.”
This is standard HKEX disclaimer language and does not contradict HashKey’s approval. Instead, it refers to the listing being dependent on completing the offering documents.
Hong Kong Exchange trade lobby in 2007. Source: Wikimedia
HashKey’s IPO is likely to attract significant attention
The news follows early October reports that HashKey was aiming for an IPO and a listing in Hong Kong this year. At the time, the report was largely based on rumors, citing anonymous sources with purported knowledge of the matter.
HashKey is Hong Kong’s top crypto exchange with a 24-hour volume of nearly $108 million at the time of writing, according to CoinGecko data. The information pack also listed the world’s top bank, JPMorgan, and local financial institutions Guotai Junan International and Haitong International as joint sponsors for the listing.
Interest in the offering is likely high, considering that in mid-February, China-based Gaorong Ventures reportedly invested $30 million in HashKey, granting it unicorn status. The pre-money valuation of the investment was purportedly almost $1.5 billion, but reports cited unidentified sources that could not be independently verified.
This was followed by reports in late October that Chinese technology giants, including Ant Group and JD.com, had reportedly suspended plans to issue stablecoins in Hong Kong due to regulatory concerns. On Saturday, the People’s Bank of China — mainland China’s central bank — said after a meeting with 12 other agencies that “virtual currency speculation has resurfaced,” reiterating that “virtual currency-related business activities constitute illegal financial activities,” in line with its 2021 ban on crypto trading and mining.
Sony Bank, the online lending subsidiary of Sony Financial Group, is reportedly preparing to launch a stablecoin that will enable payments across the Sony ecosystem in the US.
Sony is planning to issue a US dollar-pegged stablecoin in 2026 and expects it to be used for purchases of PlayStation games, subscriptions and anime content, Nikkei reported on Monday.
Targeting US customers — who make up roughly 30% of Sony Group’s external sales — the stablecoin is expected to work alongside existing payment options such as credit cards, helping reduce fees paid to card networks, the report said.
Sony Bank applied in October for a banking license in the US to establish a stablecoin-focused subsidiary and has partnered with the US stablecoin issuer Bastion. Sony’s venture arm also joined Bastion’s $14.6 million raise, led by Coinbase Ventures.
Sony Bank has been actively venturing into Web3
Sony Bank’s stablecoin push in the US comes amid the company’s active venture into Web3, with the bank establishing a dedicated Web3 subsidiary in June.
“Digital assets utilizing blockchain technology are incorporated into a diverse range of services and business models,” Sony Bank said in a statement in May.
“Financial services, such as wallets, which store NFT (non-fungible tokens) and cryptocurrency assets, and crypto exchange providers are becoming increasingly important,” it added.
Sony Bank established a Web3 subsidiary with an initial capital of 300 million yen ($1.9 million) in June 2025. Source: Sony Bank
The Web3 unit, later named BlockBloom, aims to build an ecosystem that blends fans, artists, NFTs, digital and physical experiences, and both fiat and digital currencies.
Sony Bank’s stablecoin initiative follows the recent spin-off of its parent, Sony Financial Group, which was separated from Sony Group and listed on the Tokyo Stock Exchange in September.
The move was intended to decouple the financial arm’s balance sheet and operations from the broader Sony conglomerate, allowing each to sharpen its strategic focus.
Cointelegraph reached out to Sony Bank for comment regarding its potential US stablecoin launch, but had not received a response by the time of publication.