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The Labour Party has been accused of attempting to delay a high-profile trial against five of its former employees because the case could prove to be “embarrassing” ahead of the next general election.

The party is currently engaged in a protracted legal wrangle with five former employees whom it has accused of leaking a controversial report into how antisemitism complaints were handled under the leadership of Jeremy Corbyn.

It can also be revealed that to date, Labour has spent almost £1.5m on the ongoing legal action, which is currently going through the High Court.

Court documents seen by Sky News also reveal that Labour expects to spend a further £868,000, which could take the party’s own legal costs to the region of £2.4m.

It has previously been reported that the Labour Party could face a legal bill of between £3m and £4m if it loses the case and taking into account the combined costs for both sides.

Party sources have recently expressed concerns that such a costly legal case could dent the party’s election fund, with one member of the party’s ruling body, the National Executive Committee (NEC), telling The Guardian in August that costs were “spiralling out of control”.

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The source said Labour should be “questioning this monumental waste of members’ and affiliates’ money pursuing what appears to be a pointless political vendetta”.

“Candidates will be up in arms that we are gambling with the party finances needed to win their seats,” they added. “We need to have a laser focus on getting the Tories out.”

However, in September it was revealed that the party had secured a record level of funding between April and June this year, totalling almost £7.5m – just shy of the Tories £10m.

The latest figures show the party has received £11.9m in donations so far this year.

The revelations come just days before senior Labour figures and activists gather in Liverpool for the party’s annual conference and when it enjoys a near 20-point lead over the Conservatives in the polls.

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‘Jeremy Corbyn will not stand for Labour’

The court action against the five ex-employees – including Mr Corbyn’s former chief of staff Karie Murphy and his former director of communications Seumas Milne – was triggered after an internal report into the party’s handling of antisemitism complaints was leaked to the media in 2020.

The 860-page report contained a number of damaging claims, including that factional hostility towards Mr Corbyn contributed to “a litany of mistakes” that hindered the effective handling of complaints.

The investigation, which was completed in the last month of Mr Corbyn’s leadership, claimed to have found “no evidence” of antisemitism complaints being treated differently to other forms of complaint, or of current or former staff being “motivated by antisemitic intent”.

The report also contained thousands of private WhatsApp communications between former senior party officials that were often derogatory about Labour staff, members, and Corbyn-supporting MPs.

The party has accused the five former employees, which also include Georgie Robertson, Laura Murray and Harry Hayball, of leaking the confidential report to undermine the party, which they deny.

At a recent hearing in the High Court, the party requested that the trial be postponed until after the next general election, which is expected to be held in either the spring or autumn of next year and cannot be held any later than January 2025.

The five claim that the party’s wish to postpone the case until February next year at the earliest “is in fact heavily influenced by a desire to avoid, during an election period, litigation which will bring the Labour Party into the public eye in ways it might find embarrassing or uncomfortable, but which it has chosen to bring”.

Witness statements by Mr Hayball and Ms Robertson that were read out in court were critical of attempts to delay the trial, with the latter arguing that the legal proceedings had already put her life “on hold”.

“I am very anxious that the longer I am out of work, and therefore the bigger the gap in my CV, the harder it will be to attain employment, especially in a competitive field, even once my name has been cleared of the Labour Party’s serious allegations in these proceedings,” her witness statement read.

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In response, the Labour Party’s lawyers argued that the five could obtain “a major tactical advantage” if the trial date coincided with the general election.

“It would be unfair and wrong in principle to place the defendant [the Labour Party] in a position where it was required to prepare for and conduct a trial in this very complex and weighty litigation… whilst also having to perform its vital constitutional role of contesting a general election,” they said.

“It cannot effectively do both of these things at the same time.”

A Labour spokesperson said: “The party has conducted a wide-ranging and appropriately thorough investigation following the leak and is confident of the case it has presented to the court.”

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Wolf Capital co-founder pleads guilty to $9.4M Ponzi, promised 547% returns

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Wolf Capital co-founder pleads guilty to .4M Ponzi, promised 547% returns

According to the US Department of Justice, Wolf Capital’s co-founder has pleaded guilty to wire fraud conspiracy for luring 2,800 crypto investors into a Ponzi scheme.

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Rachel Reeves lands in China amid pressure to cancel trip over market turmoil

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Rachel Reeves lands in China amid pressure to cancel trip over market turmoil

Making Britain better off will be “at the forefront of the chancellor’s mind” during her visit to China, the Treasury has said amid controversy over the trip.

Rachel Reeves flew out on Friday after ignoring calls from opposition parties to cancel the long-planned venture because of market turmoil at home.

The past week has seen a drop in the pound and an increase in government borrowing costs, which has fuelled speculation of more spending cuts or tax rises.

The Tories have accused the chancellor of having “fled to China” rather than explain how she will fix the UK’s flatlining economy, while the Liberal Democrats say she should stay in Britain and announce a “plan B” to address market volatility.

However, Ms Reeves has rejected calls to cancel the visit, writing in The Times on Friday night that choosing not to engage with China is “no choice at all”.

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The chancellor will be accompanied by Bank of England governor Andrew Bailey and other senior executives.

She will meet with her counterpart, Vice Premier He Lifeng, in Beijing on Saturday to discuss financial services, trade and investment.

She will also “raise difficult issues”, including Chinese firms supporting Russia’s invasion of Ukraine and concerns over constraints on rights and freedoms in Hong Kong, the Treasury said.

But it did not mention whether Ms Reeves would raise the treatment of the Uyghur community, which Downing Street said Foreign Secretary David Lammy would do during his visit last year.

Britain's Foreign Secretary David Lammy and Chinese Foreign Minister Wang Yi shake hands before their meeting at the Diaoyutai State Guesthouse in Beijing. Pic: AP
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Britain’s Foreign Secretary David Lammy and Chinese Foreign Minister Wang Yi in Beijing. Pic: AP

On Friday, Culture Secretary Lisa Nandy defended the trip, telling Sky News that the climbing cost of government borrowing was a “global trend” that had affected many countries, “most notably the United States”.

“We are still on track to be the fastest growing economy, according to the OECD [Organisation for Economic Co-operation and Development] in Europe,” she told Anna Jones on Sky News Breakfast.

“China is the second-largest economy, and what China does has the biggest impact on people from Stockton to Sunderland, right across the UK, and it’s absolutely essential that we have a relationship with them.”

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Nandy defends Reeves’ trip to China

However, former prime minister Boris Johnson said Ms Reeves had “been rumbled” and said she should “make her way to HR and collect her P45 – or stay in China”.

While in the country’s capital, Ms Reeves will also visit British bike brand Brompton’s flagship store, which relies heavily on exports to China, before heading to Shanghai for talks with representatives across British and Chinese businesses.

It is the first UK-China Economic and Financial Dialogue (EFD) since 2019, building on the Labour government’s plan for a “pragmatic” policy with the world’s second-largest economy.

Sir Keir Starmer was the first British prime minister to meet with China’s President Xi Jinping in six years at the G20 summit in Brazil last autumn.

Relations between the UK and China have become strained over the last decade as the Conservative government spoke out against human rights abuses and concerns grew over national security risks.

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How much do we trade with China?

Navigating this has proved tricky given China is the UK’s fourth largest single trading partner, with a trade relationship worth almost £113bn and exports to China supporting over 455,000 jobs in the UK in 2020, according to the government.

During the Tories’ 14 years in office, the approach varied dramatically from the “golden era” under David Cameron to hawkish aggression under Liz Truss, while Rishi Sunak vowed to be “robust” but resisted pressure from his own party to brand China a threat.

The Treasury said a stable relationship with China would support economic growth and that “making working people across Britain secure and better off is at the forefront of the chancellor’s mind”.

Ahead of her visit, Ms Reeves said: “By finding common ground on trade and investment, while being candid about our differences and upholding national security as the first duty of this government, we can build a long-term economic relationship with China that works in the national interest.”

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The Bitcoin Act’s passage could eventually send BTC’s price past $1 million per coin, industry executives say.

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