Labour’s smashing victory in the Rutherglen and West Hamilton by-election is just the boost Sir Keir Starmer was hoping for as he heads to his party conference, where he wants to cement his image as a prime minister in waiting.
If repeated at the approaching general election, the 20% swing to Michael Shanks the new MP, would give Labour some 40 seats, returning the party to the dominance it enjoyed before the surge of Scottish nationalism in the past decade.
Even half that total would give Labour a Tartan Wall bolstering the party’s chances of forming a majority government at Westminster rather than a hung parliament.
Please use Chrome browser for a more accessible video player
2:57
‘We are the party of change’
But, for all Labour’s excitement, it is not a done deal yet. In her introduction to the handbook for the annual Labour conference, which begins in Liverpool this weekend, Labour’s deputy leader Angela Rayner says “Labour is preparing for power with a long-term plan to give Britain back its future” but she also insists “we’ll take nothing for granted”.
Her boss, Starmer, is more cautious still, telling his party: “We’re heading in the right direction. But now is the time to step up another gear.”
This leaves Labour with two tasks as they gather in Liverpool. They want to prepare for government – by outlining their plans and showing the public that they are a trustworthy and competent team in the centre ground of British politics.
More on Labour
Related Topics:
But they have got to win the next election first, and every word spoken on the banks of the Mersey will be scrutinized as to whether it is likely to attract or repel voters.
Image: Sir Keir Starmer with Scottish Labour leader Anas Sarwar (centre) and the new Labour MP for Rutherglen and Hamilton West Michael Shanks (left)
Many Tory MPs, business representatives and lobbyists did not bother to go to the Conservative conference last week in Manchester, sensing the end of an era. There will be many more sponsored stalls, receptions and fringe meetings in Liverpool because independent interests are anticipating a change of government.
Advertisement
Unless earth-shaking events elsewhere take attention away from the conference, Starmer’s leader’s speech at 2pm on Tuesday afternoon will be the most closely watched hour of his life. He is being auditioned as the likely next prime minister.
Starmer’s popularity lacks behind that of the party
Every focus group, vox pop and survey shows that people have not yet fully warmed to him. What people think of the party leader is a strong indicator of how people will actually vote.
Starmer’s popularity lags behind Labour’s.
Sunday Morning with Trevor Phillips
Watch live each week on Sunday at 8:30am on Sky channel 501, Freeview 233, Virgin 602, the Sky News website and app or YouTube.
In the post-Tory conference YouGov poll for The Times, Labour is well ahead at 45% voting intention but Starmer rates only 34% as “best prime minister”. Rishi Sunak on 25% is about the same as his party’s 25%.
Word clouds showing what descriptions ordinary people attach to Sunak feature “rich”, “himself” and “money” prominently.
Starmer gets “boring”, “dull”, “untrustworthy” and “weak”. The two leaders have noticed these digs and routinely punch each other’s bruises in their exchanges.
In Liverpool, Starmer will need to be tougher on his opponent than mocking him for being super-wealthy and out of touch.
Please use Chrome browser for a more accessible video player
0:52
PM’s speech: Three key takeaways
In his leader’s speech last week, Sunak tried to launch himself as the “change” candidate. He disassociated himself from the last five Conservative prime ministers and did a U-turn on the full HS2 rail programme which he, David Cameron and Boris Johnson all previously backed.
Yet until now, the public has been more receptive to charges of “flip-flopping” repeatedly levelled by Tory campaigners against Starmer.
This was at the focus of Sunak’s personal attack on him last week.
“The worst thing about Sir Keir is that he just says whatever he thinks will benefit him the most”, the prime minister told his audience in Manchester. “It doesn’t matter whether he can deliver it, doesn’t matter if it’s true, it doesn’t matter if he said the opposite just a few weeks or months ago.”
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
Starmer’s service as a loyal member of Jeremy Corbyn’s shadow cabinet and his shifting policy answers to the shock of Brexit are key exhibits for the prosecution.
Starmer has dealt with the first by expelling Corbyn from Labour and abandoning the Corbynite policy pledges he made to get elected.
Starmer has dodged an obvious trap, but could face problems over Europe
Europe could yet cause problems for him in Liverpool.
Labour has only grudgingly accepted the strict limits he has placed on future ties with the EU and the leadership is fighting off calls from the grassroots for a debate on EU policy at the conference.
Labour has already endorsed Sunak’s proposal to phase out tobacco sales this century, and can easily navigate his second conference idea of reforming A-levels over the next decade.
By accepting Sunak’s abandonment of HS2 because the Tory “wrecking ball” has already done its work, Starmer has dodged the most obvious trap set for him.
Please use Chrome browser for a more accessible video player
0:57
PM announces launch of ‘Network North’
The Conservatives will not be able to challenge him on how HS2 will be paid for as well as the “Network North” road and rail schemes to which Sunak says he will redirect £36bn of savings.
Shadow chancellor Rachel Reeves will keep her iron grip on spending but some in Liverpool will be disappointed by Starmer, yet again falling in line with Tory plans.
Starmer’s speech will have to go beyond ‘if not them, why us?’
To the outrage of Conservative grandees, Labour has one significant advantage this year.
The traditional annual order for conferences is Liberal Democrats first, then Labour, then Conservatives. This autumn, more by accident than design, Labour is going last.
Starmer and his team will have the last word in what is generally expected to be the last conference campaigning season before the election.
Please use Chrome browser for a more accessible video player
0:53
Labour leader criticises PM for not addressing cost of living crisis
Last week, Sunak avoided talking about housing and the cost of living crisis and failed to engage with any detail with the rail and doctors strikes or how he plans to deliver net zero, “stop the boats” or engineer economic growth.
Labour have the opportunity to deal with all these topics, which top most peoples’ worry lists.
Each day the main conference debates have been termed Mission Plenaries, on the five “missions” which Starmer set at the beginning of the year: sustained growth, safe streets, the NHS, social mobility and green energy.
But Starmer’s speech will need to go beyond “if not them, why us?”
He also has to ridicule Sunak’s bid to escape the Tory record by posing as the true change candidate.
A senior Labour campaigner likened Sunak’s shift to a snake shedding its skin, pointing out that Theresa May, Boris Johnson and Liz Truss all tried the same trick of “vote for us to keep us in power so we can change everything”.
The former director of Public Prosecutions cannot afford to be “boring”. To seize the moment, he will need to summon more Neil Kinnock-style fury or Tony Blair-style scorn than he has managed so far.
Whether Starmer raises the roof or not, Labour delegates will sober up within 24-hours of leaving Liverpool. Next Thursday, the party faces daunting tests in two by-elections in England in constituencies held by the Conservatives.
In Nadine Dorries’ old seat of Mid Bedfordshire a 19% swing from the Conservatives would do it – the party took Selby & Ainsty this summer with a swing of 23%. But the main opposition parties are fighting each other and could end up splitting the anti-Tory vote.
The other contest in Tamworth, caused by the resignation of Tory whip Chris Pincher, demonstrates the changes in the political landscape that England has undergone since the last time Labour was seriously threatening an incumbent Conservative government – and the difficulty of the challenge facing Starmer and his party.
In 1996 for Sky News I covered another by-election in Tamworth – or South East Staffordshire, as pretty much the same constituency was then called.
The new Labour leader Tony Blair was riding high and Labour captured the seat from the Conservatives with a 22% swing.
Image: Blair speaking at Labour Party conference in 1996
The new MP Brian Jenkins held Tamworth throughout the New Labour years until 2010. Nobody is talking up Labour’s chances of victory in the by-election in Tamworth this time – even though it would take an almost identical swing this time as back then.
Tamworth and surrounding areas voted heavily for Brexit and that changed a lot. In the neighbouring Black Country, Labour now has only three of the 13 seats it held in Blair’s heyday.
Never mind the party conference hot air, Labour victories in either or both of these English by-elections would really show that Sir Keir Starmer has shifted Labour into top gear towards general election victory.
Consumer confidence has tumbled amid rampant speculation about what the chancellor will announce in the budget, figures show.
The British Retail Consortium (BRC) blamed “strong hints” from the government of income tax hikes for the public’s falling expectations of how much they’ll spend over the next three months – even as Christmas beckons.
BRC chief executive Helen Dickinson said months of uncertainty had “heightened public concern about their own finances and the wider economy”.
Consumer expectations for the state of the economy over the next three months have fallen significantly to minus 44, down from minus 35 in October, according to data from the BRC and Opinium.
Ms Dickinson said action was needed from Rachel Reeves to “bring down the spiralling cost burden facing retailers”, which she said would “keep price rises in check”.
Please use Chrome browser for a more accessible video player
2:13
Is chancellor to blame for food price rises?
Signs of ‘fragile’ recovery in jobs market
In slightly more encouraging news for Ms Reeves ahead of her statement next Wednesday, new research suggests the jobs market may be on the up.
The Recruitment and Employment Confederation said the number of new job adverts last month was 754,359, up by 2.1% from September, taking the total to more than 1.6 million.
Ms Reeves’s decision to hike national insurance contributions for employers in last year’s budget was blamed for a slowdown in the market, and a rising unemployment rate.
The report said there has been an increase in adverts for medical radiographers, delivery drivers and couriers, and further education teaching professionals.
But it warned the apparent recovery was “fragile”.
Please use Chrome browser for a more accessible video player
7:38
PM challenged on budget leaks
Reeves set to back DLR extension
One man looking forward to the budget is Sir Sadiq Khan, who has welcomed reports that London’s DLR is set to be given funding for an extension.
According to the Press Association, the chancellor will back an extension to the Docklands Light Railway to Thamesmead at a cost of £1.7bn – unlocking thousands of new homes.
Thamesmead has been notoriously short of public transport links ever since it was developed in the 1960s.
Image: Thamesmead in southeast London straddles the boroughs of Bexley and Greenwich. Pic: PA
The plan would see the line extended from Gallions Reach, near London City Airport, and include a new station at Beckton as well as in Thamesmead itself.
Sir Sadiq said the DLR extension “will not only transform travel in a historically under-served part of the capital but also unlock thousands of new jobs and homes, boosting the economy not just locally but nationally”.
It is also expected to unlock land for 25,000 new homes and up to 10,000 new jobs, along with almost £18bn of private investment in the area.
Michael Selig, who serves as chief counsel for the crypto task force at the US Securities and Exchange Commission, faced questions from lawmakers on the Senate Agriculture Committee for his nomination to be the next chair of the Commodity Futures Trading Commission.
On Wednesday, Selig appeared before the committee and addressed questions and concerns from lawmakers on both sides of the aisle regarding his potential conflicts of interest, policy views and experience as the next CFTC chair, succeeding Caroline Pham.
In his opening statement, Selig said he had advised a wide range of market participants, including digital asset companies, and warned against the agency taking a regulation-by-enforcement approach, stating that it would drive companies offshore.
“We’re at a unique moment in the history of our financial markets,” said Selig. “A wide range of new technologies, products, and platforms are emerging […] the digital asset economy alone has grown from a mere curiosity to a nearly $4 trillion market.”
The confirmation of Selig, whom US President Donald Trump nominated to chair the CFTC following the removal of his first pick, Brian Quintenz, is expected to head for a vote soon. According to the Senate calendar, the Agriculture Committee is scheduled to discuss his nomination on Thursday.
Addressing DeFi, crypto enforcement, roles of agency
The prospective CFTC chair responded to questions from the committee chair, Senator John Boozman, who advocated for the agency to take a leading role in regulating spot digital commodity markets. The senator’s remarks came as the committee is expected to consider a market structure bill that would give the CFTC more authority to regulate crypto.
“The CFTC, and only the CFTC, should regulate the trading of digital commodities,” said Boozman.
The Arkansas senator questioned Selig about his potential approach to decentralized finance if he were to be confirmed, an issue that reportedly divided many lawmakers on the market structure bill.
“When we’re thinking about DeFi, it’s something of a buzzword, but really we should be looking to onchain markets and onchain applications and thinking about the features of these applications as well as where there’s an actual intermediary involved […]” said Selig.
He added that it was “vitally important that we have a cop on the beat” in response to a question on regulating crypto, specifically spot digital asset commodity markets.
Democratic concerns about CFTC leadership
Senator Amy Klobuchar, the Democratic ranking member of the Agriculture Committee, pressed Selig and other lawmakers on the leadership at the CFTC. Since September, acting Chair Caroline Pham has been the sole commissioner at the agency, which usually has five members. Pham is expected to resign should the Senate confirm Selig.
“The CFTC has operated much of the last year without a full complement of bipartisan commissioners, and has been operating for months with only an acting chairman,” said Klobuchar. “This uncertainty surrounding the leadership at the CFTC has only created more chaos for people who rely on the CFTC.”
Selig said it was “very valuable to have a diversity of viewpoints,” and would “work with whoever the president chooses to appoint.” As of Wednesday, Trump had not announced any additional nominations for the CFTC commissioners, leaving four open seats if Selig were to be confirmed and Pham were to leave.
China’s foreign ministry has hit back at what it called “unfounded” accusations of spying in Westminster, saying it has “no interest” in gathering intelligence on the UK.
Yesterday, the security service MI5 sent a warning to MPs and peers about two recruitment headhunters who are working for Chinese security services.
They are Amanda Qiu of BR-YR Executive Search and Shirly Shen of the Internship Union.
But speaking in response to a question by Asia correspondent Helen-Ann Smith, Chinese foreign ministry spokesperson Mao Ning replied: “China has repeatedly made clear its solemn position on this matter.
“We firmly oppose such unfounded allegations and the exaggerated portrayal and sensationalism that project one’s own biases onto others.
“Judgements based on erroneous information will only lead astray.
More on China
Related Topics:
Ms Mao added: “China never interferes in the internal affairs of other countries, nor does it have any interest in gathering so-called intelligence on the British parliament.”
Chinese spying accusations may signal thorny period ahead
It is China’s standard playbook to outright deny allegations of spying.
But given that it’s common knowledge countries spy on each other, and given the recent spate of allegations of this nature, it might feel a little far-fetched for China to stick so rigorously to the position that the UK is just making it all up.
Not so, says Mao Ning, the spokesperson for China’s Ministry of Foreign Affairs.
When I put it to her, she said that these allegations are, in fact, a “projection of one’s own biases on to others”, and that China doesn’t “have any interest in gathering so-called intelligence on the British parliament”.
That is almost certainly not true. China is commonly understood to run a highly sophisticated espionage operation.
But, in a way, the truth or untruth might be immaterial to the impact on the bilateral relationship.
While the UK government may seek to send strong signals amidst criticism that it’s being too soft, China really does not appreciate this type of laundry being aired in public.
It may well signal a thorny period ahead.
In a message seen by Sky News about parliamentary staff, MPs and peers were warned that the MI5 alert “highlights how the Chinese Ministry of State Security (MSS) is actively reaching out to individuals in our community”.
The message continued: “Their aim is to collect information and lay the groundwork for long-term relationships, using professional networking sites, recruitment agents and consultants acting on their behalf.”
Security minister Dan Jarvis later said in a statement to parliament that “China has a low threshold for what information is considered to be of value, and will gather individual pieces of information to build a wider picture”.
He added: “Let me speak plainly. This activity involves a covert and calculated attempt by a foreign power to interfere with our sovereign affairs in favour of its own interests, and this government will not tolerate it.”
The government made a statement in the House of Commons following the revelations, saying it would take all “necessary measures” to protect the UK.
Westminster employees were warned that two individuals were both known to be reaching out on LinkedIn to “conduct outreach at scale on behalf of MSS”.
This latest warning comes after the collapse of a prosecution of two people suspected of spying on behalf of China.
The previous spying allegations led to controversy over how the government under Labour responded to the Crown Prosecution Service’s requests for evidence.
Sir Keir Starmer sought to blame the previous Conservative government for the issues, which centred on whether China could be designated an “enemy” under First World War-era legislation.
Sir Keir has sought to keep relationships with Beijing somewhat warm, highlighting the value of China as a trading partner.