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A minister has denied claims that Sir Keir Starmer could risk breaching international law with his pledge to recognise Palestine as a state.

Nearly 40 members of the House of Lords, including prominent UK lawyers, made the claims in a letter to Attorney General Lord Hermer yesterday.

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The letter, first reported by The Times, argues that Sir Keir’s promise to recognise Palestine in September – unless Israel takes “substantive steps” to end the situation in Gaza – may breach international law as the territory may not meet the criteria for statehood under the Montevideo Convention, a treaty signed in 1933.

But speaking to Wilfred Frost on Sky News Breakfast, small business minister Gareth Thomas said he did not believe the move, which has been condemned by Israel, would breach international law because the UK has not signed the Montevideo Convention.

He pointed out that 140 countries have already recognised Palestine as a state.

Mr Thomas said: “I respect the views of those lawyers, but in the end, recognition of a state is a political judgement.

“And we’ve been very clear that our judgement is that the Palestinians have an inalienable right to statehood; that now is the right time to say publicly that we will recognise the state of [Palestine] unless Israel agrees to end the appalling violence that we’re seeing in Gaza at the moment, and commits to a two state solution.”

He added: “And the ceasefire that can enable the huge amounts of aid we need to get aid and to feed the people of Gaza and commits to no annexation of land in the West Bank. Otherwise, we will recognise, at the UN General Assembly in September.”

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Canada to recognise Palestinian state in September

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Canadian Prime Minister Mark Carney yesterday followed in the footsteps of the UK and France, saying his country would also recognise Palestine as a state pending certain conditions – including that the Palestinian Authority commits to fundamentally reforming its governance, and holds general elections in 2026 in which Hamas can play no part.

But in their letter to Lord Hermer, 38 peers said Palestine “does not meet the international law criteria for recognition of a state, namely, defined territory, a permanent population, an effective government and the capacity to enter into relations with other states”.

They said there was no certainty over the borders of Palestine and no single government, while also pointing out that Hamas and Fatah are enemies.

Lord Hermer has previously insisted that a commitment to international law “goes absolutely to the heart” of the government’s approach to foreign policy.

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Among the respected lawyers who have signed the letter are Lord Pannick – who represented the previous government at the Supreme Court over its Rwanda scheme – as well as KCs Lord Verdirame and Lord Faulks.

Some of Parliament’s most prominent Jewish voices, including crossbench peer Baroness Deech, Labour’s Lord Winston and the Conservatives’ Baroness Altmann, have also put their name to the letter.

Israel has condemned the UK’s decision, with the foreign ministry arguing it “constitutes a reward for Hamas and harms efforts to achieve a ceasefire in Gaza and a framework for the release of hostages”.

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Crypto treasuries top $100B for Ethereum’s 10th anniversary: Finance Redefined

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Crypto treasuries top 0B for Ethereum’s 10th anniversary: Finance Redefined

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Ethereum’s 10th anniversary celebration was marked by an uptick in institutional demand for Ether as an alternative treasury reserve asset, prompting Wall Street to look past Bitcoin.

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Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

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Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

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Chancellor Rachel Reeves dodges wealth tax calls from predecessor

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Chancellor Rachel Reeves dodges wealth tax calls from predecessor

Chancellor Rachel Reeves has dodged calls from her predecessor Anneliese Dodds for a wealth tax to be considered ahead of this autumn’s budget.

When Sir Keir Starmer became Labour leader in 2020, Ms Dodds was his first pick for shadow chancellor. However, she did not last long and was replaced by Ms Reeves, who then got the government job after last year’s election win.

Speaking to the Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, Ms Dodds said she had examined wealth taxes when she was briefly in the shadow chancellor job and how one could be implemented.

She said: “I would hope the Treasury is considering that kind of evidence, as well as other changes that have been put forward.”

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‘Rachel Reeves would hate what you just said’

Asked today if about Ms Dodds’ intervention, Ms Reeves said: “Decisions around tax are decisions that are made at a budget and we’ll make those decisions in the appropriate way, but the number-one priority of this government is to grow the economy.

“And that means bringing more investment into Britain, creating more good jobs paying decent wages here in Britain.

Listen here to hear Ms Dodds’ full comments:

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“We’ve got to get the balance right on taxation because we want that investment, we want those jobs to come here.

“That’s why we’re reforming the planning system, secured three trade deals in the first year of this Labour government, cutting back on unnecessary regulation, and reforming our pension system to unlock money for businesses to be able to invest here in the UK.”

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The government’s financial position is stretched ahead of the next budget, due at the end of autumn.

Ms Reeves has committed herself to not changing her fiscal rules, leaving little wiggle room to avoid tax rises or spending cuts.

This is due to the government’s inability to save money through policies like welfare reform, which were gutted due to a rebellion of backbench Labour MPs.

Last week, Business Secretary Jonathan Reynolds branded the suggestion of a wealth tax “daft” – but he has less influence over the writing of the budget than the chancellor.

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Meanwhile, reports from the Daily Telegraph suggested that Deputy Prime Minister Angela Rayner backed increasing taxes, including reinstating the pensions lifetime allowance and a higher corporation tax level for banks.

Ms Dodds also wants to see those considered.

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