As a milestone is reached of 50,000 migrants crossing the Channel since he became prime minister, Keir Starmer finds himself in a familiar place – seemingly unable to either stop the boats, or escape talking about them.
Home Office data shows 50,271 people made the journey since the election last July, after 474 migrants arrived on Monday. This is around 13,000 higher than the comparable period the previous year.
Starmer has tweeted more than 10 times about this issue in the past week alone, more than any other.
On Monday he wrote on X: “If you come to this country illegally, you will face detention and return. If you come to this country and commit a crime, we will deport you as soon as possible.”
It could be a tweet by a politician of any party on the right – and many voters (and Labour MPs) will say it’s right that the prime minister is taking this issue seriously.
Illegal – or irregular – migration is a relatively small proportion of total migration. Net migration was down at 431,000 in 2024 which the OCED say is comparable to other high-income countries. But it is of course highly visible and politically charged.
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Nigel Farage’s Reform party have had a busy few months campaigning on it, and the prime minister has been toughening up his language in response.
Shortly after the local elections in May in which Reform won hundreds of seats and took control of councils, Starmer made his speech in which he warned: “In a diverse nation like ours, without fair immigration rules, we risk becoming an island of strangers.”
But it was part of a speech which made clear that he wanted action – vowing to end “years of uncontrolled migration” in a way “that will finally take back control of our borders and close the book on a squalid chapter for our politics.”
Image: A group of people thought to be migrants are brought in to the Border Force compound in Dover, Kent. Pic: PA
It’s a long way from his early months as Labour leader in 2020 when he said: “We welcome migrants, we don’t scapegoat them.” Migration did not feature as one of his five missions for “change” at the general election.
The strategy by Starmer and his minister is to talk up forthcoming new measures – a crackdown on social media adverts by traffickers, returns of people without a right to be in the UK which are indeed higher than under the Conservatives, and last week, a “one in, one out” deal with France to send people back across the channel.
The government say some people have been detained, although it is not known when these returns will happen. Ministers are also still pointing the finger at the previous Conservative government – which found stopping the boats easy to say and hard to achieve.
Baroness Jacqui Smith, a former home secretary, said this morning: “I don’t think it was our fault that it was enabled to take root. We’ve taken our responsibility to work internationally, to change the law, to improve the way in which the asylum system works, to take through legislation to strengthen the powers that are available.
“The last government did none of those things and focused on gimmicks. And it’s because of that, that the crime behind this got embedded in the way which it did. And that won’t be solved overnight.”
But for a prime minister who appears to have come to this issue reluctantly, talking about it a lot – and suggesting he’ll be judged on whether he can tackle it – risks raising expectations.
Joe Twyman, of the pollsters Deltapoll said: “You cannot simply out-Farage Nigel Farage when it comes to the subject of immigration. In a sense, Labour is falling into precisely the same trap that the Conservatives fell into. They’re giving significant prominence to a subject where they don’t have much control”.
Starmer has avoided mentioning firm numbers on how many migrants his crackdown may stop, but as previous prime ministers have found with the difficult issue of controlling migration, if you ask to be judged on delivery, voters will do so.
The Chancellor Rachel Reeves has acknowledged there were “too many leaks” in the run-up to last month’s budget.
The flow of budget content to news organisations was “very damaging”, Ms Reeves told MPs on the Treasury select committee on Wednesday.
“Leaks are unacceptable. The budget had too much speculation. There were too many leaks, and much of those leaks and speculation were inaccurate, very damaging”, she said.
The cost of UK government borrowing briefly spiked after news reports that income taxes would not rise as first expected and Labour would not break its manifesto pledge.
An inquiry into the leaks from the Treasury to members of the media is to take place. But James Bowler, the Treasury’s top official, who was also giving evidence to MPs, would not say the results of it would be published.
Committee chair Dame Meg Hillier asked if the group of MPs could see the full inquiry.
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“I’d have to engage with the people in the inquiry about the views on that”, replied Mr Bowler, permanent secretary to the Treasury.
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2:21
OBR leak ‘a mistake of such gravity’
The entire contents of the budget ended up being released 40 minutes early via independent forecasters, the Office for Budget Responsibility (OBR).
A report into this error found the OBR had uploaded documents containing their calculations of budget numbers to a link on the watchdog’s website it had mistakenly believed was inaccessible to the public.
Tax rises ruled out
The chancellor ruled out future revenue-raising measures, including applying capital gains tax to primary residences and changing the state pension triple.
Committee member and former chair Dame Harriet Baldwin had noted that the chancellor’s previous statement to the MPs when she said she would not overhaul council tax and look at road pricing, turned out to be inaccurate.
During the budget, an electric vehicle charge per mile was introduced, as was an additional council tax for those with properties worth £2m or more.
Strategy, the largest Bitcoin treasury company, submitted feedback to index company MSCI on Wednesday about the proposed policy change that would exclude digital asset treasury companies holding 50% or more in crypto on their balance sheets from stock market index inclusion.
Digital asset treasury companies are operating companies that can actively adjust their businesses, according to the letter, which cited Strategy’s Bitcoin-backed credit instruments as an example.
The proposed policy change would bias the MSCI against crypto as an asset class, instead of the index company acting as a neutral arbiter, the letter said.
The first page of Strategy’s letter to the MSCI pushes back against the proposed eligibility criteria change. Source: Strategy
The MSCI does not exclude other types of businesses that invest in a single asset class, including real estate investment trusts (REITs), oil companies and media portfolios, according to Strategy. The letter said:
“Many financial institutions primarily hold certain types of assets and then package and sell derivatives backed by those assets, like residential mortgage-backed securities.”
The letter also said implementing the change “undermines” US President Donald Trump’s goal of making the United States the global leader in crypto. However, critics argue that including crypto treasury companies in global indexes poses several risks.
Crypto treasury companies can create systemic risks and spillover effects
Crypto treasury companies exhibit characteristics of investment funds, rather than operating companies that produce goods and services, according to MSCI.
MSCI noted that companies capitalized on cryptocurrencies lack clear and uniform valuation methods, making proper accounting a challenging task and potentially skewing index values.
Strategy held 660,624 BTC on its balance sheet at the time of this writing. The stock has lost over 50% of its value over the last year, according to Yahoo Finance.
Bitcoin (BTC) is also 15% below its value at the beginning of 2025, when it was trading over $109,000, meaning that the underlying asset has outperformed the equity wrapper.
The high volatility of cryptocurrencies may heighten the volatility of the indexes tracking these companies or create correlation risks, where the index performance would mirror crypto market performance, according to a paper from the Federal Reserve.
Bitcoin and Ether volatility compared to stock indexes, oil and gold. Source: The Federal Reserve
The “common use” of leverage by crypto traders amplifies volatility and lends to crypto’s fragility as an asset class, the Federal Reserve wrote.
MSCI’s proposed policy change, set to take effect in January, could also prompt treasury companies to divest their crypto holdings to meet the new eligibility criteria for index inclusion, creating additional selling pressure for digital asset markets.
The American Federation of Teachers (AFT), a union championing educators in the United States, has voiced its opposition to crypto market structure legislation moving through the Senate, claiming it “threatens the stability of their retirement security.”
In a Monday letter to Republican and Democratic leaders on the US Senate Banking Committee provided by CNBC, the AFT said it opposed passage of the Responsible Financial Innovation Act, the bill that senators said “built on” the House of Representatives’ proposed solution to market structure, the CLARITY Act. According to the teachers’ union, the bill presents “profound risks” to economic stability and retirement plans.
“This bill fails to provide a regulatory structure for crypto assets and stablecoin that is equivalent to that for other pension holdings,” said the letter. “Most pensions do not carry crypto assets because of their risk. This legislation pretends that crypto assets are stable and mainstream, and they are not.”
The CLARITY Act, a July draft of the market structure bill proposed by the Senate Banking Committee, and a November draft from the Senate Agriculture Committee did not explicitly mention allowing digital assets to be used in pensions or retirement funds. The AFT claimed that if the bill were to be passed, “Pensions and 401(k) plans will end up having unsafe assets even if they were invested in traditional securities.”
The American Federation of Labor and Congress of Industrial Organizations raised similar concerns over the market structure bill posing risks to “retirement funds and to the overall financial stability of the US economy” in an October letter to the banking committee. The group claimed that the legislation would “increase workers’ exposure by greenlighting retirement plans like 401(k)s and pensions to hold this risky asset.”
The AFT represents 1.8 million members working in education, healthcare and public services. According to the National Association of State Retirement Administrators, aggregate public pension assets, including teachers, totaled more than $6.5 trillion as of the second quarter of 2025, while the Investment Company Institute reported in September that total retirement assets in the US were about $45.8 trillion.
Trump is addressing crypto in retirement funds through executive orders
Separate from the Senate’s efforts to pass market structure, US President Donald Trump has attempted to change policy to allow cryptocurrencies to be included in 401(k) retirement plans. In August, Trump signed an executive order directing the Labor Department to reevaluate restrictions around alternative assets in defined-contribution plans, including digital assets.
Asset management companies have already been making moves signaling openness to adding digital assets to individual retirement arrangements (IRAs) and 401(k)s.
In October, Morgan Stanley reportedly began allowing its advisers to suggest crypto funds as part of its clients’ retirement portfolios. State-managed retirement funds, such as those in Michigan and Wisconsin, also have exposure to crypto through digital asset-linked exchange-traded funds.
It’s unclear when the Senate will vote on a market structure bill in the full chamber. Wyoming Senator Cynthia Lummis, one of the bill’s most outspoken proponents, said on Tuesday that she anticipated the banking committee releasing an updated draft this week, with a possible markup hearing before Congress broke for the holidays.