Grant Shapps has been announced as the UK’s new defence secretary, as the prime minister carries out a mini-reshuffle at the top of government.
The appointment comes after Ben Wallace revealed last month he would be leaving the role the next time Rishi Sunak made changes to his cabinet – as well as stepping down as an MP at the next election.
Mr Shapps had been serving as the energy security and net zero secretary before his promotion to the Ministry of Defence.
The new role will be his fifth cabinet position in a year – having been transport secretary under Boris Johnson, having a brief stint as home secretary under Liz Truss, and having been appointed business secretary when Mr Sunak first took office.
It is not yet clear who will replace Mr Shapps in his current role, but minister for children, Claire Coutinho, was seen entering Number 10 this morning.
Sky News’ deputy political editor Sam Coates said both MPs were “loyalists”, adding they had been chosen “not just perhaps because of their skills, but because they have stuck by Rishi Sunak”.
More on Ben Wallace
Related Topics:
Image: Minister for children, Claire Coutinho, was spotted heading into Downing Street on Thursday morning.
Tweeting after his appointment, the new defence secretary said he was “honoured to be appointed” to his post and he paid tribute to his predecessor’s “enormous contribution… to UK defence and global security”.
Mr Shapps added: “As I get to work… I am looking forward to working with the brave men and women of our Armed Forces who defend our nation’s security. And continuing the UK’s support for Ukraine in their fight against Putin’s barbaric invasion.”
Advertisement
But the new hire has already attracted criticism from opposition parties, with Liberal Democrat defence spokesperson Richard Foord saying: “At a time when the Armed Forces need someone to stand up for them, Rishi Sunak has appointed a yes-man.
“The Conservative government merry-go-round has to stop. They have taken the Armed Forces for granted for too long, and we are all left less safe as a result.”
Labour’s shadow defence secretary John Healey congratulated his new opposite number on Twitter – but accompanied his welcome with a dig.
“The first duty of any government is to keep our country safe and I will always work with the new defence secretary on this basis, especially on Ukraine.
“But after 13 years of Tory defence failures, a change at the top will not change this record.”
‘Time to invest’
Mr Wallace officially resigned his post on Thursday morning, saying it had been a “privilege” to serve in the post for four years.
In his letter to the PM, he said the Ministry of Defence was now “more modern, better funded and more confident than the organisation I took over in 2019”, and it was “back on the path to being once again world class with world class people”.
And in a parting shot to secure his department’s future, Mr Wallace added: “I know you agree with me that we must not return to the days where defence was viewed as a discretionary spend by government and savings were achieved by hollowing out.
“I genuinely believe that over the next decade the world will get more insecure and more unstable. We both share the belief that now is the time to invest.”
Image: Ben Wallace, announced he planned to step down in July, but officially resigned on Thursday.
Mr Sunak responded to the letter by saying the outgoing defence secretary had “served our country with distinction”.
He added: “I fully understand your desire to step down after eight years of exacting ministerial duties. As you say, the jobs you have done have required you to be available on a continuous basis.
“But I know you have more to offer public life both here and internationally. You leave office with my thanks and respect.”
A Labour source said Mr Wallace had “shown important leadership in supporting Ukraine from the start”.
But, while they said the former minister “deserves credit for his support” of Ukrainian fighters, “his record on British armed forces has been poor, with cuts and procurement failures the order of the day”.
The source added: “The new defence secretary needs to get a grip, boost British forces and give them the resources, kit and accommodation they deserve.”
Former prime minister Boris Johnson said he was “sad to see the departure” of Mr Wallace, who “got so many calls right – especially on Ukraine”. But he praised the expected appointment of Mr Shapps, calling it “an excellent choice”.
A US judge has granted prediction markets platform Kalshi a temporary reprieve from enforcement after the state of Connecticut sent it a cease and desist order last week for allegedly conducting unlicensed gambling.
The Connecticut Department of Consumer Protection (DCP) sent Kalshi, along with Robinhood and Crypto.com, cease and desist orders on Dec. 2, accusing them of “conducting unlicensed online gambling, more specifically sports wagering, in Connecticut through its online sports event contracts.”
Kalshi sued the DCP a day later, arguing its event contracts “are lawful under federal law” and its platform was subject to the Commodity Futures Trading Commission’s “exclusive jurisdiction,” and filed a motion on Friday to temporarily stop the DCP’s action.
An excerpt from Kalshi’s preliminary injunction motion arguing that the DCP’s action violates federal commodities laws. Source: CourtListener
Connecticut federal court judge Vernon Oliver said in an order on Monday that the DCP must “refrain from taking enforcement action against Kalshi” as the court considers the company’s bid to temporarily stop the regulator.
The order adds that the DCP should file a response to the company by Jan. 9 and Kalshi should file further support for its motion by Jan. 30, with oral arguments for the case to be held in mid-February.
Kalshi does battle with multiple US states
Kalshi is a federally regulated designated contract maker under the CFTC and, in January, began offering contracts nationally that allow bets on the outcome of events such as sports and politics.
Its platform has become hugely popular this year and saw a record $4.54 billion monthly trading volume in November, attracting billions in investments, with Kalshi closing a $1 billion funding round earlier this month at a valuation of $11 billion.
However, multiple US state regulators have taken issue with Kalshi’s offerings, which have led to the company being embroiled in lawsuits over whether it is subject to state-level gambling laws.
Kalshi sued the New York State Gaming Commission in October after the regulator sent a cease and desist order claiming it offered a platform for sports wagering without a license.
In September, Massachusetts’ state attorney general sued Kalshi in state court, which the company asked to be tossed. So far this year, Kalshi has sued state regulators in New Jersey, Nevada, Maryland and Ohio, accusing each of regulatory overreach.
Sir Keir Starmer has called for a tougher approach to policing Europe’s borders ahead of a meeting between leaders to discuss a potential shake-up of the European Convention on Human Rights (ECHR).
The prime minister said the way in which the ECHR is interpreted in courts must be modernised, with critics long claiming the charter is a major barrier to deportations of illegal migrants.
His deputy, David Lammy, will today be in Strasbourg, France, with fellow European ministers to discuss reforms of how the agreement is interpreted in law across the continent.
In an opinion piece for The Guardian, Sir Keir and his Danish counterpart, Mette Frederiksen, said the change was necessary to prevent voters from turning to populist political opponents.
Image: Small boat crossings have risen this year. File pic: PA
What’s the issue with the ECHR?
The ECHR, which is the foundation of Britain’s Human Rights Act, includes the right to family life in its Article 8.
That is often used as grounds to prevent deportations of illegal migrants from the UK.
More on Asylum
Related Topics:
There has also been a rise in cases where Article 3 rights, prohibiting torture, were used to halt deportations over claims migrants’ healthcare needs could not be met in their home country, according to the Home Office.
The Conservatives and Reform UK have both said they would leave the ECHR if in power, while the Labour government has insisted it will remain a member of the treaty.
But Sir Keir admitted in his joint op-ed that the “current asylum framework was created for another era”.
“In a world with mass mobility, yesterday’s answers do not work. We will always protect those fleeing war and terror – but the world has changed, and asylum systems must change with it,” the two prime ministers wrote, as they push for a “modernisation of the interpretation” of the ECHR.
Please use Chrome browser for a more accessible video player
2:16
System ‘more than broken’, says asylum seeker
What is happening today?
Mr Lammy is attending an informal summit of the Council of Europe.
He is expected to say: “We must strike a careful balance between individual rights and the public’s interest.
“The definition of ‘family life’ can’t be stretched to prevent the removal of people with no right to remain in the country [and] the threshold of ‘inhuman and degrading treatment’ must be constrained to the most serious issues.”
It is understood that a political declaration signed by the gathered ministers could carry enough weight to directly influence how the European Court of Human Rights interprets the treaty.
The UK government is expected to bring forward its own legislation to change how Article 8 is interpreted in UK courts, and is also considering a re-evaluation of the threshold for Article 3 rights.
Image: David Lammy will swap Westminster for Strasbourg today
The plans have been criticised by Amnesty International UK, which described them as weakening protections.
“Human rights were never meant to be optional or reserved for comfortable and secure times. They were designed to be a compass, our conscience, when the politics of fear and division try to steer us wrong,” Steve Valdez-Symonds, the organisation’s refugee and migrant rights programme director, said.
Sir Keir’s government has already adopted several hardline immigration measures – modelled on those introduced by Ms Federiksen’s Danish government – to decrease the number of migrants crossing the Channel via small boats.
Please use Chrome browser for a more accessible video player
2:40
Beth Rigby: The two big problems with Labour’s asylum plan
Starmer-Macron deal ‘a sticking plaster’
Meanwhile, French far-right leader Jordan Bardella told The Daily Telegraph he would rewrite his country’s border policy to allow British patrol boats to push back small vessels carrying migrants into France’s waters if he were elected.
The National Rally leader called Sir Keir’s “one-in, one-out” agreement with Emmanuel Macron, which includes Britain returning illegal arrivals in exchange for accepting a matching number of legitimate asylum seekers, a “sticking plaster” and “smokescreen”.
Please use Chrome browser for a more accessible video player
4:02
Far-right, 30, and France’s most popular politician
He said that only a complete overhaul of French immigration policy would stop the Channel crossings.
Mr Bardella is currently leading in opinion polls to win the first round of France’s next presidential election, expected to happen in 2027, to replace Mr Macron.
The race for the new US Federal Reserve chair is nearing the finish line, with US President Donald Trump reportedly set to begin interviewing finalists for the top job this week.
According to a report from the Financial Times on Tuesday, Treasury Secretary Scott Bessent has presented a list of four names to the White House.
One of these is former Fed governor Kevin Warsh, whom Bessent is scheduled to meet with on Wednesday. Another is National Economic Council director Kevin Hassett, who is seen as the frontrunner for the role.
Another two names would be picked from a list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.
Trump and Bessent are expected to hold at least one interview next week, as a decision looks likely to be announced in January.
However, Trump has revealed he already has his eye on one particular candidate.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said to journalists on Air Force One on Tuesday.
Kevin Hassett is a frontrunner for Fed chair role
The upcoming round of interviews suggests that Hassett may not be the clear lock in for the role as previously thought, though he is seen as the favorite.
Earlier this month, prediction market odds on Kalshi and Polymarket shot up for Hassett significantly following comments from Trump at the White House on Dec. 2.
While welcoming guests, Trump labeled Hassett as “potential Fed chair” leading many to assume the president had let a major hint slip.
With Hassett’s odds spiking to 85% after Trump’s comments last week, they have since declined to around 73% for Hassett, while Warsh’s odds sit at 13% on Kalshi at the time of writing, which has floated around this range over December.
Regardless of who ends up taking over as chair, the move is bound to impact crypto markets under the new leadership.
If elected, Hassett has asserted that he will be apolitical in terms of running the Fed, despite his close ties to Trump. Speaking with The Wall Street Journal this week, Hassett said that “You just do the right thing” when asked if he would blindly follow orders from Trump.
“Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut,” Hassett said, adding that he would rely on his own “judgment, which I think the president trusts.”