Labour’s conference is opening in Brighton after Sir Keir Starmer was forced into a humiliating retreat over his attempt to re-write the party’s rulebook.
He had to put his reforms on hold after a backlash from unions and party activists, in what left-wing MPs said was an own goal that had weakened his authority.
The Labour leader is now attempting to salvage his proposals in talks with those trade unions he hopes will back them, though he may have to make significant concessions to win their support.
The conference opens with a speech by Angela Rayner, Labour’s deputy leader, who will commit the party to introduce a new deal for working people – including pay rises and new employment rights – if it wins the next election.
Ahead of her speech, Ms Rayner features in a glossy photoshoot in The Times’ Saturday magazine, accompanied by an interview in which she says she “definitely wouldn’t say no” to standing for party leader.
“If I felt it was the right thing to do for the party and the right thing for the country, then I would step up and do it,” she told The Times, in comments that will annoy Sir Keir and his inner circle at a time when his critics are questioning his leadership.
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The Labour leader was forced to abandon his plans to put his reforms – which include scrapping ‘one member, one vote’ for electing the party leader and returning to an electoral college of MPs, unions and activists – to a vote on the ruling national executive after opposition from unions.
But ahead of another meeting of the executive shortly before the conference opens, Sir Keir is to hold talks with three major unions, Unison, Usdaw and the GMB, which he hopes to persuade to back his proposals.
Image: Deputy leader Angela Rayner will speak at the opening of the party conference
It is thought that to win their support, however, the beleaguered Labour leader may have to drop some of his proposals, including his plans to bring back the electoral college, which was replaced with one member, one vote by former leader Ed Miliband in 2014.
Speaking to Sky News after Sir Keir withdrew his proposals, at least temporarily, former party chair and leading Jeremy Corbyn supporter Ian Lavery said the Labour leader had scored an own goal and his position as leader had been weakened.
“Had the consultation taken place with the unions, with the CLPs, things might have been different,” said Mr Lavery.
“It’s a huge lesson to be learned by Keir Starmer tonight, and that is everybody counts in the Labour Party, not just the few in the leader’s room.”
The left-wing pressure group Momentum said it celebrated the delay, declaring: “Starmer’s attack on democracy is floundering.
“This delay has been won by the grassroots members who have taken action to organise their delegates, lobby their unions and mobilise ahead of conference.
“But it is not over yet. We have to keep up the pressure to make sure this rule change and all the other regressive changes concocted by the leadership get comprehensively rejected.”
Image: Angela Rayner has been tipped as a possible replacement for Sir Keir
Just hours before the start of the conference, Sir Keir also came under attack from Mr Corbyn, his predecessor, who said: “Our movement has the answers to the big questions of the age – inequality, the climate crisis and the pandemic – but our leaders are failing to listen and put these solutions front and centre.
“At conference, I hope to hear how Labour will bring in a wealth tax to fund a National Care Service like the NHS, will take the radical action needed to decarbonise by 2030, stand against the drumbeat of a new Cold War, and will rein in the runaway wealth and power of a tiny elite.
“I know our trade unions and members have developed these policies. But the signs are that the party leadership wants to try to shut down debate, side-line the members and trade unions with the end result that Labour props up rather than challenges our broken political and economic system.”
In her speech pledging a new deal for workers, Ms Rayner will say: “It will be the driving mission of the next Labour government to end the poverty wages and insecure work that blights millions of lives and is holding back our economy. Labour will make Britain work for working people.
Image: Jeremy Corbyn is among those who have criticised Sir Keir
“Work should provide not just a proper wage that people can raise a family on, but dignity, flexibility and security. Better pay and more secure work is good for workers, good for businesses and good for the economy.
“Labour will deliver a new deal for working people so they get a fair share of the wealth they create, and within the first 100 days of the next Labour government we will sign this new deal for working people into law.”
“Working people don’t want a handout from a minister sat in Whitehall – workers want the power to stand up for themselves and demand their fair share and a better deal.”
She will add: “The best way to improve the lot of working people is collectively, achieving more by the strength of our common endeavour than we achieve alone.
“So the next Labour government will bring together representatives of workers and employers to agree fair pay agreements that will apply to every worker in each sector, starting in social care.
“Fair pay agreements will drive up pay, improve conditions in the workplace and stop bad bosses from exploiting their workers and driving down pay and standards for everyone.
“When Labour is in government there won’t just be a former social care worker and shop steward in the office of deputy prime minister, working people will have a seat at the cabinet table and their voices will be heard. The next Labour government will end poverty wages and insecure work for good.”
US bank SoFi Technologies has launched crypto trading services to its customers, as clearer rules have allowed the crypto market to court greater interest from traditional finance.
SoFi said on Tuesday that its crypto service will aim to offer dozens of cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), and started in a phased rollout on Monday, with more customers able to gain access in the coming weeks.
SoFi CEO Anthony Noto told CNBC’s Squawk Box on Tuesday that his bank is the first and only nationally chartered bank to launch crypto trading to consumers and was spurred to do so after the Office of the Comptroller of the Currency (OCC) eased its stance on how banks can engage with crypto in March.
“One of the holes we’ve had for the last two years was in cryptocurrency, the ability to buy, sell, and hold crypto. We were not allowed to do that as a bank. It was not permissible,” he said.
SoFi also plans to introduce SoFi USD, a stablecoin backed dollar-for-dollar by reserves, and integrate crypto into its lending and infrastructure services for borrowing and faster payments.
“We believe blockchain and cryptocurrencies are a super cycle technology just like AI, and it will be pervasive across all the financial system,” Noto said.
He added that stablecoins would fundamentally change payments, provided they have liquidity and don’t carry credit risk or duration risk.
SoFi CEO Anthony Noto speaking to CNBC on Tuesday. Source: YouTube
“I actually worry quite significantly about stablecoins from operators that are not banks. Where are the reserves sitting? Is there duration risk for those reserves? Is there credit risk for those reserves? Are those reserves bankruptcy remote?” he said.
“That’s three elements that you have to think about with whatever stablecoin you use. Just because it’s back dollar for dollar doesn’t mean those dollars will be there when you try to liquidate.”
Members back crypto shift
SoFi has over $41 billion in assets, according to financial metric platform Business Quant. The bank’s third-quarter results list its net revenue as $962 million and show a member base of 12.6 million people.
Noto said 60% of the bank’s members surveyed were interested in crypto investments and also revealed he has allocated 3% of his personal portfolio to crypto, mainly Bitcoin.
“We have exposure to it because I believe we’re investing in a technology not in a currency. The analogy I use with people is imagine if in 1990 you could have bought a piece of the World Wide Web through some coin called the World Wide Web coin.”
“It’s very similar to that. These are networks, communication networks used for payments and other applications,” Noto added.
Bitwise’s spot Chainlink exchange-traded fund (ETF) has appeared on the Depository Trust and Clearing Corporation’s registry, a usually positive sign that the fund is moving closer to launch.
The Bitwise Chainlink ETF was added to the DTCC’s “active” and “pre-launch” categories on Tuesday under the ticker CLNK. The listings don’t guarantee that the US Securities and Exchange Commission will approve the ETF, but they have historically been a good indicator that a product is set to be greenlit.
DTCC is a post-trade market infrastructure platform that clears, settles, and records transactions, serving as a central hub for markets to ensure trades in assets like stocks and ETFs are processed efficiently and securely.
Bitwise is yet to file a Form 8-A for its Chainlink product, one of the final documents that must be lodged before securities are offered on an exchange, and often means that a product’s launch is imminent.
Grayscale is another crypto asset manager that has a spot Chainlink ETF in the works. However, it may face more regulatory challenges than Bitwise’s as it seeks to incorporate staking.
Government shutdown slows ETF process
Dozens of spot crypto ETFs are currently awaiting SEC approval amid the US government shutdown, which is in its 42nd day but is expected to end sometime this week after the Senate passed a funding bill.
Crypto asset managers have filed ETFs to track increasingly speculative altcoins in the hopes of attracting investor attention, from Dogecoin (DOGE) and Solana (SOL) to Aptos (APT), Avalanche (AVAX) and Hedera (HBAR).
New SEC listing standards could see more approvals
Industry analysts are now expecting more spot crypto ETFs to be approved as the SEC created new generic listing standards that enable the approval of crypto investment products without them needing to be reviewed on a case-by-case basis.
The SEC’s new listing standards were released on Sept. 17, less than two weeks before the US government shutdown, leaving little time for the new rules to be put to use.
Since then, the government shutdown has forced the SEC to operate with limited capacity and funding.
Sir Keir Starmer is vowing to fight any challenge to his leadership rather than stand aside, amid claims of plotting by MPs being compared to TV’s The Traitors.
Number 10 is going on the attack ahead of a difficult budget this month, with fears it could prove so unpopular that Labour MPs may move against Sir Keir.
But Sky News political editor Beth Rigby reports the prime minister “has no intention of giving way”, with allies warning any challenge would lead to a “drawn-out leadership election, spook the markets, and create more chaos that further damages the Labour brand”.
One senior figure told Rigby any move against Sir Keir would be more likely to arrive after next May’s elections, rather than the budget.
They said many Labour MPs could probably get behind measures like tax rises for wealthier workers, pensioners and landlords, as well as scrapping the two-child benefit cap, if that’s what the chancellor announces on 26 November.
But there are a series of potentially damaging elections in May, including in London and for the Senedd in Wales, as Labour face a challenge from Reform UK on the right and parties like the Greens and Plaid Cymru on the left.
Rigby said there is a “settled view among some very senior figures in the party that Starmer lacks the charisma and communication skills to take on Nigel Farage and win over the public, particularly if or when he breaks a bunch of manifesto pledges”.
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The Number 10 operation to ward off a challenge comes after Sky News deputy political editor Sam Coates likened the febrile mood in the Labour high command to the TV hit The Traitors.
Speaking on the Politics At Sam And Anne’s podcast, he said: “A minister got in touch at the start of the weekend to say they believe that there’s some quite substantial plotting going on.
“They say there was at least one cabinet minister telling colleagues that Keir Starmer, and I quote, is finished.”
When Boris Johnson was facing mutiny from Conservative MPs, his allies launched “Operation Save Big Dog”.
When Margaret Thatcher was about to be ousted by her rebellious MPs in 1990, she declared: “I fight on, I fight to win.”
And Harold Wilson, constantly paranoid about plots, famously quipped in 1969: “I know what’s going on. I’m going on.”
Boris Johnson was ousted less than six months after “Operation Save Big Dog”, Margaret Thatcher resigned the following morning after saying “I fight on”, and Harold Wilson lost a general election to Edward Heath a year after vowing that he would go on.
Coates said the cabinet minister “absolutely and totally denies they are up to anything nefarious whatsoever”.
“I actually do think that this is all in the style of The Traitors, because I’m not sure that there is hard and fast evidence of plotting – there might be some hints from some quarters,” he added.
“But what seems to be completely logical is that if you’re a bit worried in Number 10, you’re trying to pitch roll and ward off people who are maybe thinking about the need to position themselves by starting to get out rumours of plots and hoping that the political system turns against them for disloyalty.”
Image: Who is plotting to unseat the PM? Pic: PA
Cloak-and-dagger
Reports emerged on Tuesday night in The Times, The Guardian, and from the BBC of a “bunker mode” in Number 10, “regime change”, and “plotting” to replace Sir Keir.
Responding to the reports, Health Secretary Wes Streeting denied he was seeking to oust the prime minister.
A spokesperson for Mr Streeting told Sky News: “These claims are categorically untrue.
“Wes’s focus has entirely been on cutting waiting lists for the first time in 15 years, recruiting 2,500 more GPs and rebuilding the NHS that saved his life.”
Image: It’s not me, insists Wes Streeting. Pic: Reuters
However, there is clearly a co-coordinated campaign by allies of the increasingly unpopular Sir Keir to try to prevent a leadership challenge by a cabinet minister or stalking horse.
Sir Keir’s biographer Tom Baldwin questioned the logic of those briefing from within the corridors of power.
“I’m at a loss to understand why anyone would think this sort of briefing will help Keir Starmer, the government, or even their own cause,” he said on social media. “Some people just can’t resist, I guess, but it’s all a bit nuts.”
What next?
It comes ahead of Prime Minister’s Questions this lunchtime, handing Tory leader Kemi Badenoch the chance to make it an awkward afternoon for Sir Keir.
The health secretary will start his day on Sky News’ Morning With Ridge And Frost and will then speak at an NHS providers’ conference.
Watch and follow live coverage across Sky News – including in the Politics Hub.