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Sky News' Paul Kelso delves into the reasons behind the rising borrowing costs and their significance.

Business and economics reporter @pkelso

Thursday, January 9, 2025, 5:

The chancellor is facing significant challenges as fluctuations in financial markets have increased the costs associated with government borrowing, jeopardizing the economic strategies of Rachel Reeves.

What's happening, and is there cause for concern?

Exploring Bonds: What Are They

UK government securities, commonly referred to as gilts, a name derived from their historical gold-trimmed edges, serve as a means for the government to raise funds by borrowing from investors.

They provide a consistent yearly income, termed a coupon, to the investor for a specified term—commonly five, 10, or 30 years—and are exchanged on global markets, causing their price to fluctuate even though the income stays constant.

Finance Blog: Leading Cell Phone Provider to Hike Rates in Upcoming Month

This implies that the actual interest rate they pay is determined by the 'yield', which is figured out by taking the annual return and dividing it by the present value. Therefore, as the prices of bonds decrease, the yield—or the real interest rate—increases.

Further Updates on the UK Economy

Lisa Nandy reassures that the public need not be concerned about disturbances in the financial markets.

There's substantial worry regarding the yields on UK government bonds and the overall economic stability, but this situation does not mirror the crisis experienced under Liz Truss.

Chancellor set to further restrict Whitehall spending in response to deteriorating economic forecasts

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In recent months, there has been a noticeable decline in the purchase of UK bonds, leading to an increase in the nation's borrowing expenses. This week, the yield on 30-year government bonds climbed to a peak not observed since 1998, reaching 5.37%, while yields on 10-year bonds momentarily surged to rates reminiscent of the post-financial crisis era, causing unease both in financial circles and among political leaders in Westminster.

What's causing the sell-off in UK bonds?

The performance of bond markets is shaped by various elements, yet the main internal factor is the ongoing threat of sustained inflation, which results in prolonged periods of elevated interest rates.

Rising inflation diminishes the value of the bond’s fixed payments, and increasing interest rates devalue the bond further as new bonds offer more attractive returns. This situation is currently evident in the UK.

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Inflation continues to exceed the Bank of England's target of 2%, and numerous major corporations are signaling that prices will climb further due to upcoming increases in taxes and wages this spring.

Consequently, it is now anticipated that the Bank will lower interest rates just twice this year, rather than the four decreases that were forecasted by market expectations as of November.

There is little hope that the economic expansion forecasted by the chancellor will provide immediate relief, as business organizations caution that tax increases may restrain investment.

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Is the UK isolated?

No. The global bond markets have recently been predominantly influenced by increasing borrowing rates in the US, which have been spurred by Donald Trump's re-election and the expectation that his policies on tariffs and other measures will lead to inflation.

The UK, along with other European countries such as Germany and France, which are also experiencing their own political upheavals, has seen an increase in costs. Furthermore, if robust employment data from the US on Friday suggests that interest rates will stay elevated, American influence may grow further.

However, unique internal elements, especially the potential for stagflation, are significant. Additionally, the UK depends more heavily on foreign investors compared to other G7 countries, highlighting the importance of market dynamics.

What is the significance of this for Reeves?

The expense of acquiring loans impacts not only the creation of new debt but also the cost of servicing current debts. This is significant as these increased expenses might diminish the financial leeway that Ms. Reeves allocated in her budget.

Headroom refers to the extent of leeway she possesses relative to her voluntarily adopted budgetary guideline, which aims to affirm to investors that the UK remains a secure investment destination. The rule mandates that by the fiscal year 2029-30, all regular government expenditures must be covered by tax income.

During the budget announcement, she was working with a surplus of £9.9 billion, but some experts believe market forces have reduced this buffer to just £1 billion.

Further reading: Prominent union leader to retire. Retail organization cautions that grocery costs are set to increase following budget-related tax increases.

By the close of March, the Office for Budget Responsibility is set to release an update on the financial outlook, and while market conditions might shift by that time, if they remain static, Ms. Reeves might need to reconsider her strategies.

This week, the Treasury stated that the fiscal policies are firmly set, indicating that the only options are to increase taxes or, more likely, reduce expenditures to balance the budget.

Why is this important for everyone else?

Sustained elevated interest rates might lead to rising expenses for consumer debt, making mortgages and various loans more burdensome. Moreover, the condition of the economy is significant for everyone.

The core issues – ongoing inflation, sluggish economic expansion, declining productivity, deteriorating public services – are deep-seated, and Labour has committed to tackling them.

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Investments in infrastructure and emerging sectors, driven by strategic planning and reforms in financial markets, are promised as solutions to address systemic issues over the medium term. However, politics, much like the financial markets, tends to focus on the short term, and Ms. Reeves could benefit from some immediate relief, beginning with favorable inflation and growth data expected next week.

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Steering the Ship: Is Sir Keir Starmer Firmly at the Helm Amidst Global Turbulence?

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Does Sir Keir Starmer Truly Hold the Reins?

Thursday, January 9, 2025, 07:39, UK

👉Tune into the Politics At Jack And Sam's podcast on your favorite listening app👈

Sky News' assistant political chief Sam Coates, along with Politico's Jack Blanchard, return in 2025 to offer a quick, daily political briefing, all in less than 20 minutes.

How are international developments such as Trump's actions, China's strategies, and global economic trends influencing British political dynamics? Foreign Secretary David Lammy aims to demonstrate that the Labour Party is taking the lead – Jack and Sam debate whether he will succeed.

Chancellor Rachel Reeves is facing a close examination of her budgetary policies, amid worries that there might be increases in taxes or reductions in spending, as she travels to China alongside Andrew Bailey, the governor of the Bank of England. Additionally, there are questions about the feasibility of Sir Keir Starmer’s strategy to address human trafficking.

To get in touch with Jack and Sam, shoot them a WhatsApp message at 07511 867 633 or drop them an email at jackandsam@sky.uk.

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Global Tensions Rise: Lammy Brushes Off Trump’s Controversial Claims on Greenland and Panama Canal

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UK Foreign Secretary David Lammy dismisses Donald Trump's remarks about potentially taking control of Greenland and the Panama Canal.

The incoming US president has stated that he cannot guarantee he won't consider using military action to acquire Greenland and the Panama Canal.

Political journalist @alixculbertson

Thursday, January 9, 2025, 09:

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Foreign Secretary David Lammy has declined to criticize Donald Trump's declarations about taking control of Greenland and the Panama Canal.

Speaking to Wilfred Frost on Sky News, Mr. Lammy stated that he does not aim to criticize "our closest ally" in response to inquiries about whether he would condemn the rhetoric of the incoming U.S. president.

On Wednesday, Mr. Trump stated that he could not guarantee that he wouldn't use military force or economic pressure in efforts to gain authority over Greenland and the Panama Canal.

He expressed his desire for the United States to acquire the large island located off the east coast of Canada, which hosts a significant American military facility, citing national security and global freedom as his reasons.

Politics Update: Lammy Introduces Groundbreaking Sanctions Policy Aimed at Human Traffickers

The president stated that the Panama Canal, originally constructed for the U.S. military and crucial to both the U.S. and China, is now "operated by" China. He expressed disapproval of former President Jimmy Carter’s decision to transfer control of the canal to Panama in 1977.

France and Germany have voiced their apprehensions regarding Mr. Trump's statements, while Mr. Lammy dismissed the idea that he is concerned.

Politics Update

Latest in Politics: Despite facing significant pressure to cancel her visit, Reeves heads to China for economic discussions.

Harriet Harman demands a limited investigation into racial concerns highlighted by the grooming gangs controversy.

Educators advised against striking, with unions set to poll members on a 2.8% salary proposal.

"He described it as typical behavior for Donald Trump," he said to Sky News.

"Consider this: Donald Trump has just secured a victory in the election, garnering the support of 77 million voters. His appeal has broadened across various demographics, notably including African Americans and Latinos."

"He entered the scene emphatically stating his commitment to advocate for the working class. Moreover, he views the core of America's national economic security as focusing on this commitment."

"This is the reason he's bringing up concerns about the Panama Canal, and I believe also regarding Greenland."

"He consistently emphasizes that to the maximum degree, with the utmost intensity. However, underlying that are genuinely significant issues related to national security and the economy."

Discover More: What are Trump's Interests in Greenland and the Panama Canal?

Mr. Lammy commented that Mr. Trump's inability to guarantee that he wouldn't resort to military action heightened the severity of his statements.

He stated, "To be explicit, no NATO member states have engaged in warfare since NATO was formed. I also don't foresee that happening."

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Germany and France have cautioned Mr. Trump against making threats towards Greenland, however, Mr. Lammy stated that he would not be following suit.

German Chancellor Olaf Scholz stated that the rule of respecting national borders holds true for all countries, regardless of their size or power.

French Foreign Minister Jean-Noël Barrot emphasized, "it is clear that the European Union will not allow any global nations to violate its sovereign boundaries."

Further details on this issue: Denmark plans to increase military funding for Greenland. Trump's warnings may pose a crucial challenge for NATO's unity.

Mr. Lammy noted that Germany's firm position is probably because they are in the midst of an election campaign.

He mentioned that he believes the matters of national security and the impact of China on the Panama Canal are "valid concerns," which have been similarly discussed in the UK.

He further commented on Greenland, stating: "Ultimately, the decision rests with the Greenlandic people and their right to self-determination."

Greenland, an original member of NATO, operates as a largely self-governing region under Denmark and holds a strategic position at the Arctic Circle, bridging North America, Russia, and Europe.

For over a century and a half, the United States has recognized the strategic benefits of the Arctic. Now, as climate change reduces the ice coverage in the region, it paves the way for increased maritime commerce and

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Lammy Brushes Off Trump’s Bold Claims on Greenland and Panama Canal Amidst Global Concerns

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UK Foreign Secretary David Lammy dismisses Donald Trump's claims of potentially taking control of Greenland and the Panama Canal

The incoming US president has stated that he cannot guarantee he would refrain from using military action to acquire Greenland and the Panama Canal.

Political correspondent @alixculbertson

Thursday, January 9, 2025, 09:

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Foreign Minister David Lammy has declined to criticize Donald Trump's statements about taking control of Greenland and the Panama Canal.

Speaking to Wilfred Frost on Sky News, Mr. Lammy expressed that he is "not in the business of condemning our closest ally" in response to whether he would criticize the rhetoric of the incoming U.S. president.

On Wednesday, Mr. Trump stated that he couldn't guarantee he wouldn't use military force or economic pressure to attempt to gain control over Greenland and the Panama Canal.

He has expressed his desire for the US to acquire the extensive island located off the east coast of Canada, which hosts a significant US military base, citing reasons of national security and global freedom.

Politics update: Lammy introduces groundbreaking sanctions policy aimed at human traffickers

The president stated that the construction of the Panama Canal was primarily for the U.S. military and emphasized its crucial importance to both the U.S. and China, which is now "managing it." He also expressed disapproval of former President Jimmy Carter's decision to transfer control of the canal to Panama in 1977.

France and Germany have voiced their unease regarding Mr. Trump's remarks, while Mr. Lammy dismissed the idea that he is concerned.

Latest in Politics

Political Update: Reeves heads to China for financial discussions amid calls to scrap the visit

Harriet Harman requests a focused investigation into racial concerns highlighted by the grooming gangs controversy.

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"He epitomizes typical Donald Trump," he said to Sky News.

"Consider this: Donald Trump has just secured a victory in the election, garnering support from 77 million voters. His backing has increased across almost all demographic groups, notably among African Americans and Latinos."

"He entered with a clear message that he intended to advocate for the working class. Moreover, he views the core of America's national economic security as focused on this principle."

"This is the reason he's bringing up concerns about the Panama Canal, and I believe Greenland as well."

"He consistently emphasizes that point, pushing it to its maximum intensity. However, underlying that are some very serious issues related to national security and the economy."

Discover further: What are Trump's reasons for seeking control over Greenland and the Panama Canal?

Mr. Lammy stated that Mr. Trump's inability to guarantee he would refrain from using military action intensified the strength of the language used.

He emphasized, "Let's be clear. Since NATO was established, no member countries have engaged in warfare with each other. And I don't foresee that happening."

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Germany and France have cautioned Mr. Trump against making threats towards Greenland, however, Mr. Lammy stated that he would not be issuing similar warnings.

German Chancellor Olaf Scholz stated that the rule of respecting national borders holds true for every nation, regardless of its size or strength.

French Foreign Minister Jean-Noël Barrot emphasized that the European Union would undoubtedly defend its borders against any assaults from countries around the world.

Further details on this issue: Denmark plans to increase military funding for Greenland as Trump's warnings may pose a critical challenge for NATO.

Mr. Lammy noted that Germany's firm position is probably due to their ongoing election battle.

He mentioned that he believes the concerns regarding national security and China's impact on the Panama Canal are "valid concerns," which have been similarly discussed in the UK.

He also mentioned Greenland, stating, "Ultimately, the decision lies with the Greenlandic people and their right to self-determination."

Greenland, which is part of Denmark and has self-governing capabilities, holds a strategic position as it sits on the Arctic Circle, bridging North America, Russia, and Europe. It is also an original member of NATO.

For over a century and a half, the United States has recognized the strategic benefits of the Arctic. Now, as climate change reduces the ice levels, new pathways for maritime trade and commerce are emerging in the region.

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Environment Secretary Apologizes Amid Farmer Tax Outrage, Denies Inheritance Tax Is To Blame for Industry Woes

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Environment Secretary Steve Reed has issued an apology to farmers over the surprise regarding tax changes. Reed states that the current bankruptcy issues among farms are not related to alterations in inheritance tax, but rather stem from the lack of profitability in the agriculture sector.

Climate journalist @SeabrookClimate

Thursday, January 9, 2025, 3:

Environment Secretary Steve Reed has expressed apologies for the distress caused to farmers following the government's decision to increase farm taxes.

Government officials are facing strong opposition from agricultural producers in response to several policies revealed in the previous year's budget. These include the implementation of inheritance tax on farming enterprises valued over £1 million, and an accelerated transition from European Union-era subsidies to payments focused on environmental initiatives.

The Environment Secretary recently issued an apology for the disruptions caused by recent reforms, while outlining new strategies to facilitate financial support to agricultural operations.

"In his address at the Oxford Farming Conference, he expressed his apologies, noting, 'The vast financial deficit we inherited was staggering, and I regret that the measures we implemented were similarly surprising to you.'"

Occasionally, his voice was overwhelmed by the noise from about 30 tractors demonstrating outside.

A handful of farmers sounded their horns and played 'The Final Countdown' as a signal that the new tax reforms could spell doom for several agricultural operations.

However, Mr. Reed rejected the idea that increasing the inheritance tax would compel some farms to sell.

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Is this what farming will look like going forward? A look inside Europe's largest vertical farm

During a pivotal period of transformation, Sky News dedicated an entire year to documenting life on a farm.

Climate change and bureaucratic hurdles may be threatening the availability of reasonably priced food in the UK.

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"I reject that notion," he said to the press following his address.

He acknowledged their sentiments, but pointed out that farms were failing even before the current administration, citing that the issue isn't related to inheritance tax but rather the lack of profitability in the sector.

He acknowledged that there would be some challenges during the transition, with the changes not taking effect until 2026.

Explore further: Dispute regarding how many farms impacted by inheritance tax strategy. IFS reports that most farmers are not influenced by the recent tax adjustments in the budget.

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Farmers are currently struggling with a series of challenges, including severe weather conditions that have damaged crops, payment delays in environmental programs, low earnings from supermarket sales, and trade issues following Brexit.

In his address, he introduced new strategies aimed at restoring profitability to the industry.

The measures proposed involved assisting farmers in selling surplus solar energy back to the power network, simplifying the process for constructing barns and additional facilities to enhance agricultural output, and ultimately aiming to raise the percentage of domestically grown produce purchased by government bodies.

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Tom Bradshaw, leader of the NFU agricultural advocacy organization, expressed that the apology made a significant impact.

"This marks the initial instance where an acknowledgment of the necessity for an apology has been expressed."

"However, the subsequent discussion on diversification implies a misunderstanding that the profitability of food production is crucial."

He expressed approval for several of today's announcements, yet noted that it would take years for their positive effects to be felt, at a time when the industry is currently in a critical state.

Calls are being made for a review of the updates to inheritance tax, expedited compensation for ecological initiatives, and the establishment of more equitable markets.

He acknowledged that while no farms are currently failing due to the budget, the situation might shift when the policy is implemented next year.

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National Crisis: Safeguarding Minister Jess Phillips Declares Grooming Gangs Present in Every Part of the UK

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According to Jess Phillips, grooming gangs exist across the entire nation.

Despite investigations into grooming gangs in various UK towns and cities, the safeguarding minister indicates that this issue is nationwide.

Thursday, January 9, 2025, 10:

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Jess Phillips informed Sky News that grooming gangs exist "in every single part of our country."

The minister responsible for safeguarding announced during an interview with Beth Rigby, Sky's political editor, on the Electoral Dysfunction podcast, that she was extending an "open invitation" to Conservative leader Kemi Badenoch to join her in meeting with victims.

A representative for Ms Badenoch stated that she has not had meetings with any victims of grooming gangs following her proposal for a fresh nationwide investigation on Wednesday.

Latest in Politics: Lammy Announces New Measures Against Human Trafficking

Ms. Phillips stated, "Grooming gangs exist in every area of our nation."

"I cannot emphasize sufficiently that organized child sexual abuse is prevalent throughout our nation.

"I am utterly outraged. My only comment is that I plan to call them whenever I am required to be in court alongside victims of rape. I'll invite them to see if they're interested in joining."

"Kemi always extends an invitation. Whenever I next arrange to meet a grooming survivor, or on every Friday afternoon in my office, I set aside two hours for the girls I've mentored over time, as their need for support continues indefinitely."

Further reading: Key events in the grooming gangs controversy – Jess Phillips open to considering a nationwide investigation

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The problem of grooming gangs came to the forefront once more when it was revealed that Ms. Phillips had turned down requests from Oldham Council for a national investigation into the town's scandal, stating that a local inquiry would be more suitable.

Elon Musk has persistently taken to Twitter to comment on the controversy, targeting Ms. Phillips and Sir Keir Starmer, who have both responded to his accusations.

Numerous investigations have been conducted on grooming gangs across the nation, culminating in a comprehensive seven-year national investigation that released its findings in 2022.

👉 Tap here to subscribe to Electoral Dysfunction on your favorite podcast platform 👈

Over the years, Sky News has covered numerous investigations and has extensively reported on various grooming cases spanning the last twenty years.

Home editor Jason Farrell has interviewed numerous victims throughout his career, uncovering instances of child abuse in Telford through his investigative work.

Over the past week, numerous victims have expressed to him their doubts about the effectiveness of a new inquiry, citing concerns over its lengthy duration.

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Legal Clash: Liz Truss Sends Cease and Desist to Keir Starmer Over Economy Crash Claims

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Liz Truss has issued a legal warning to Sir Keir Starmer, demanding he retract statements suggesting she was responsible for an economic downturn. The letter accuses him of trying to undermine her position in her South West Norfolk constituency. It argues that the aftermath of the mini budget does not constitute an "economic crash."

Political journalist @alixculbertson

Thursday, January 9, 2025, 3:

Attorneys representing Liz Truss have issued a cease and desist notice to Sir Keir Starmer in response to his accusations that she "crashed the economy".

The correspondence asserts that Sir Keir has consistently accused the previous Conservative prime minister of ruining the economy through the mini budget of September 2022, an allegation that is considered defamatory and expected to "persistently inflict significant damage to her reputation."

The article highlights assertions by the Labour leader from June of the previous year amid the general election, which alleged that she had wrecked the economy. These claims, it suggests, were intended to harm Ms. Truss's reputation among voters as she was running for a parliamentary seat.

Latest in Politics: Lammy Reveals New Sanctions Strategy Against Human Smuggling

Ms. Truss, who resigned from her position as prime minister after less than two months in office, was defeated in the election for the South West Norfolk constituency by Labour candidate Terry Jermy, a seat she had occupied since 2010.

A spokesperson for Sir Keir stated that the prime minister does not intend to alter his choice of words in response to the letter.

He also raised doubts about whether Ms. Truss would be sending letters to the "millions of people across the nation" who agreed with Sir Keir’s perspective.

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Mention of Liz Truss' controversial mini-budget was omitted from the King's Speech following objections from the former Prime Minister.

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The correspondence refutes allegations that the mini budget led to an economic collapse, citing a definition of an "economic crash" provided by Dr. Andrew Lilico, a specialist affiliated with the conservative Institute of Economic Affairs and the managing director at Europe Economics consultancy.

The letter argues that the market's reaction to the mini budget should not be labeled a "crash," and criticizes Sir Keir for showing a "lack of understanding of fundamental economic principles" by suggesting otherwise.

After the announcement of the mini budget, featuring £45 billion in tax reductions not covered by existing funds, the UK saw a significant increase in its long-term borrowing rates, which surged by 0.3 percentage points in just one day.

The British pound subsequently plummeted to all-time lows compared to the dollar, and the expense of long-term government debt increased significantly by 0.5 percentage points following indications from the then Chancellor Kwasi Kwarteng that additional tax reductions were forthcoming.

This resulted in increased mortgage rates and the removal of numerous products from the market, which also affected pension funds in the UK.

What is a cease and desist letter?

A cease and desist letter is a formal request sent to an individual or organization to halt any activities deemed illegal.

This is a significant alert and could potentially initiate legal action.

They frequently warn of strict legal consequences if the recipient does not halt and refrain from continuing their actions.

This might involve requesting an injunction—a legal command issued by a court that prevents a person from performing a specific action.

Cease and desist letters typically specify the steps that will be undertaken and the potential repercussions if the stipulated conditions are not fulfilled.

The correspondence from the legal representatives of Liz Truss contains no actual threats of litigation but rather a plea for cessation of claims that she ruined the economy, urging Sir Keir to avoid inflicting additional harm on their client.

Stay ahead with the latest breaking news updates.

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Ms. Truss's legal representatives attributed the fluctuations in interest rates to the Bank of England, specifically citing its mishandling of the crisis involving liability-driven investment bonds (LDI) and its regulatory shortcomings.

The text highlights that the Bank of England operates autonomously from the government, noting: "Therefore, the applicable adjustments in interest rates were not 'caused' by our client."

"By May 2024, if not earlier, these truths had become apparent."

Discover further details on Sky News: Chancellor likely to further restrict Whitehall's financial plans. Lammy dismisses Trump's claims of taking over Greenland and the Panama Canal.

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The correspondence asserts that there was no increase in joblessness, no prolonged decline in wealth, and no lasting economic effects.

The report indicates that neither Ms. Truss nor the mini budget were major factors in the financial market's instability during September and October 2022, noting that nearly all fiscal measures had already been disclosed prior to the mini budget.

The letter urges Sir Keir to stop claiming she ruined the economy and seeks a friendly resolution to the issue.

"The letter emphasizes that this appeal is grounded in the fundamental courtesies expected among high-ranking officials, and it is anticipated that you will act in a manner befitting this understanding."

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Chancellor Reeves Faces Pressure as Pound Tumbles and Critics Call for Strategy Shift Amid Market Turmoil

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Rachel Reeves' involvement dismissed amid declining pound

The Conservatives and Liberal Democrats have both called on Rachel Reeves to scrap her scheduled business visit to China in order to address the recent turmoil in the markets.

Business and economics journalist at Sky News Business

Thursday, January 9, 2025 3:54

The government has dismissed the possibility of the chancellor stepping in to boost the faltering confidence in the UK financial markets, even as the pound continues to lose value.

Early on Thursday, the British pound dropped to its weakest point against the dollar since November 2023, continuing its recent decline.

A mix of troubling issues such as stagnant growth due to budget constraints, increasing joblessness, and the impact of high interest rates aimed at controlling escalating inflation is causing worry.

This was further confirmed by a significant rise in the UK's long-term borrowing rates, which reached heights this week that hadn't been observed since 1998.

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The situation intensifies scrutiny on the Chancellor as it indicates that investors are seeking higher returns for purchasing UK government bonds, thereby increasing the financial burden on Ms. Reeves, who is acquiring funds to finance public services, along with the existing fiscal demands on businesses and affluent individuals.

This morning in the Commons, the Conservatives received permission to pose an urgent question, pressing her to explain the market's negative response to her budget, which detractors argue will damage investment, employment, wages, and cause an increase in prices.

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Addressing Parliament on behalf of the absent official, Treasury Minister Darren Jones conveyed that no additional statements would be made beyond the Treasury declaration released Wednesday, which supported the government's strategy.

Shadow Chancellor Mel Stride has called on Ms. Reeves to abandon her scheduled, long-prepared trade visit to China, suggesting a shift in strategy to restore market confidence.

He argued that British citizens are suffering because "another socialist government is creating problems by increasing taxes and ramping up spending."

Mr. Jones stated that he would not accept economic management advice from the Conservatives.

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Learn more: Significant worries about the UK economy persist, yet it's not a crisis akin to Truss's tenure.

Liberal Democrat chief Ed Davey called for an urgent financial declaration to the parliament that would revoke the scheduled increase in national insurance contributions for employers in April, aiming to stimulate economic expansion and reduce interest rates.

Amid concerns about Mr. Reeves's fiscal policies, the British pound has faced further pressure as the US dollar gains strength, influenced by market forecasts predicting fewer reductions in US interest rates this year.

The British pound is currently valued at $1.22, a rate last recorded in November 2023.

In September, the spot rate reached a peak of $1.34.

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It has also significantly decreased in value compared to the currencies of other nations.

At the beginning of the week, the British pound has dropped by one cent against the euro, trading at €1.19, with a decline of 0.6 cents in today's trading activity.

This week, long-term bond yields, indicative of perceived risks, reached their peak since 1998, while yields on other key government bonds also trended upward.

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Higher interest rates increase the financial burden on Ms. Reeves as she manages her debt repayments.

She might have to decide between increasing taxes, which she had earlier dismissed, or reducing expenditures due to the growing burden of rising borrowing costs.

In its announcement, the Treasury emphasized: "It is absolutely essential for everyone to understand that adhering to the fiscal regulations is imperative, and the Government will maintain strict control over public spending."

The United Kingdom holds the position of having the second smallest national debt among the G7 nations. Forecasts from the Office for Budget Responsibility (OBR) are the only reliable source for determining the fiscal leeway available to the government; all other estimates are merely

"Stimulating the economy is the top priority for the current administration as it implements its Plan for Change. In the upcoming weeks and months, the Chancellor is committed to exhaustively pursuing strategies to bolster economic growth and advocate for the workforce."

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Discover additional details on Sky News: Anticipated increase in food costs linked to new budgetary tax increases. Bank of England's currency printing division faces acquisition bid.

Matthew Ryan, who leads market strategy at the international finance company Ebury, commented on recent market trends, stating: "These developments are a harsh criticism of Labour's economic strategies, especially the increase in National Insurance contributions for employers, a change that businesses have cautioned could drive up prices and negatively affect the job market."

The fallout from the bond market downturn has extensive consequences. Diminished appetite for UK bonds could either lead to reductions in government expenditures or an increase in taxes to stabilize the nation's financial health, both scenarios potentially stifling economic expansion.

Increased yields on government bonds are expected to translate into higher mortgage rates, potentially tightening the financial strain on family budgets.

"Concerns have significantly increased the value of UK assets, and further declines in the value of the sterling could occur as a consequence."

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Elon Musk Accuses Sir Keir Starmer of Complicity in Grooming Gangs Scandal: A Detailed Timeline of Events and Inquiries

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Timeline of grooming gangs scandal: Events, investigations, and Sir Keir Starmer's role following allegations by Elon Musk

Sir Keir led the Crown Prosecution Service for a period of five years during which investigations into grooming gangs took place.

Politics correspondent @alixculbertson

Wednesday, January 8, 2025, 7:

The controversy surrounding grooming gangs has resurfaced in the news following criticisms from Elon Musk, who accused Sir Keir Starmer and Minister Jess Phillips of neglecting children's welfare.

The tech mogul has charged Sir Keir with playing a role in the system's shortcomings in safeguarding victims and bringing perpetrators to justice during his tenure as the director of public prosecutions from 2008 to 2013.

Sir Keir has responded to Musk, stating that his history demonstrates his direct approach to addressing the problem.

Latest in Politics: Ex-chair of child abuse investigation argues against the necessity of a new inquiry

The controversy began when it emerged last week that Jess Phillips, the minister for safeguarding, had turned down Oldham Council's request for a government-led investigation into past grooming gangs in the area, stating that the council should conduct its own inquiry.

She has responded firmly to Mr. Musk's recent criticisms of her.

Sky News examines the chronology of the grooming gangs controversy, the investigations that followed, and the involvement of Sir Keir.

How did the scandal involving grooming gangs come to light and what legal actions have been taken?

From 2001, authorities were given lists of taxi drivers accused of collecting girls from Rotherham care facilities for exploitation. However, it wasn't until 2010 that the first guilty verdicts were handed down, with subsequent convictions continuing through 2024, totaling 61.

2004: A Channel 4 documentary detailing allegations that young white girls in Bradford were being sexually groomed by Asian perpetrators was postponed following warnings from police that it might exacerbate racial strife. The documentary was eventually broadcast three months after its initial scheduled release.

2010: A group of 11 men, mostly from Asian descent, were found guilty of crimes related to the sexual exploitation of minors in Derbyshire.

2011: Times reporter Andrew Norfolk begins to get anonymous hints about child abuse by mainly Asian males in Rotherham. Despite facing accusations of racism and worries that extremist groups might exploit the story, his determination to follow through brought the issue to light, prompting a nationwide investigation.

2011: A young woman exploited by a grooming gang in Huddersfield pens a letter to a judge detailing her ordeal. It took until 2013 for another survivor to approach the police and file formal complaints, which led to numerous other girls and boys being interviewed over the subsequent three years. Victims and their families reported that they had continuously informed the police and other officials, yet no action was taken.

2011: In Oxford, authorities initiate Operation Bullfinch, a collaborative police and council effort to investigate a child sex abuse network. The operation leads to its first convictions in May 2013, followed by additional convictions in the years 2015, 2016, 2019, and 2020.

May 2012: In a significant legal development, nine men from Rochdale and Oldham were convicted for their roles in a child sexual exploitation ring that operated out of two fast food outlets in Greater Manchester starting in 2008. The subsequent year, an additional five individuals from the Rochdale area were sentenced to prison for their involvement.

May 2013: It has been revealed that seven men were imprisoned following the culmination of trials addressing child sexual abuse incidents in the Telford region.

2014: In Bristol, 13 men were found guilty of child sexual exploitation following the completion of Operation Brooke.

In 2017, 29 individuals associated with a grooming gang in Huddersfield faced charges, though a reporting restriction was initially placed on the case to prevent influencing subsequent trials. This embargo faced criticism from far-right factions, notably Tommy Robinson (real name Stephen Yaxley-Lennon), who received a 13-month prison sentence, later shortened to nine months, for breaching the restriction by recording outside the courthouse during the trial.

2018: A group of twenty men, predominantly of Pakistani descent, involved in the Huddersfield child exploitation network, were found guilty of committing 120 acts of rape and other abuses targeting 15 young girls. Collectively, they received sentences amounting to 221 years.

Due to the large number of individuals involved, it was necessary to conduct three distinct trials. By August 2021, additional convictions increased the total to 41 men.

In 2023, Prime Minister Rishi Sunak's administration established a specialized task force to address grooming gangs, incorporating skilled personnel from each of the 43 police departments across England and Wales, along with data analysts. By May 2024, this initiative led to the arrest of 550 suspects and the identification of 4,000 victims.

2023: Nine additional individuals have been indicted for sexual crimes in Rotherham as part of Operation Stovewood, with the majority of these incidents occurring between 2003 and 2008.

2024: In Rotherham, Operation Stovewood results in the conviction of 11 additional men for exploiting vulnerable young females.

For further reading: Not reporting child sexual abuse to be classified as a criminal act. The inquiry into child abuse will be effective in safeguarding children only if law enforcement is adequately equipped. Child sexual exploitation: 'I would find bruises on my legs after waking up.' Victims of child abuse in Telford recount being raped at gunpoint.

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What investigations have taken place?

There have been 10 investigations and studies regarding the grooming gangs.

2013: A report by the Home Affairs Select Committee on the Rochdale incidents concludes that the police, social workers, and Crown Prosecution Service (CPS) prosecutors failed to safeguard the children involved.

2014: A study initiated by the council in 2013 and conducted by Professor Alexis Jay reveals that, between 1997 and 2013, approximately 1,400 minors in Rotherham were victims of sexual exploitation, primarily at the hands of men of British-Pakistani descent.

Former Home Secretary Theresa May initiated the Independent Inquiry into Child Sexual Abuse in England and Wales in response to the Jimmy Savile scandal. Professor Jay took over as chair after the resignation of three previous chairs.

2015: Following a Freedom of Information request by the Birmingham Mail, a 2010 report from the West Midlands Police is made public.

The document reveals that police were aware, as early as five years prior, that Asian grooming gangs were preying on children near schools in Birmingham, yet they harbored concerns about potential community unrest if these details were disclosed.

2015: An investigation into Rotherham Council, initiated by the government and overseen by Baroness Casey, reveals that the council maintained a hostile and misogynistic environment that concealed data and muffled those who attempted to expose wrongdoing.

A fresh investigation into child sexual abuse in Rotherham has been initiated, following the conviction of 19 men and two women in 2016 and 2017 for sexual crimes that occurred starting in the late 1980s.

2015: A comprehensive investigation conducted by the Oxfordshire Safeguarding Children's Partnership revealed that as many as 373 children, among them 50 boys, may have been victims of grooming and sexual exploitation in the area. The report criticized Thames Valley Police for their skepticism towards the complaints made by these children.

2019: Greater Manchester Mayor Andy Burnham orders a comprehensive investigation into allegations of child sexual abuse in Oldham's shisha bars between 2011 and 2014, following a request from Oldham Council.

2020: The Home Office declines to publish a study on grooming gangs, stating that disclosing it does not serve the public interest. After facing public backlash, it eventually releases the document, which concludes that there is no reliable proof that any specific ethnic group is disproportionately involved in child sexual exploitation. Critics label the report a cover-up.

2022: After an eight-year investigation, the Independent Inquiry into Child Sexual Abuse, led by Professor Jay, is released. The report reveals that authorities, including the police and local councils, minimized the extent of the issue, and victims were frequently held responsible for their own abuse.

The report suggests several measures such as compulsory disclosure of child sexual abuse by professionals in child-related sectors, setting up a nationwide monetary restitution program for victims failed by organizations, and the formation of an agency dedicated to child safety.

In 2022, local officials in Oldham demanded a national investigation into the issue of grooming gangs, but the request was declined by the Conservative government, which instead advised that the local council should undertake its own review.

2022: The investigation into the grooming gangs in Oldham, conducted by Greater Manchester, was published. It revealed that both the police and the local council did not safeguard at-risk youth and concealed their shortcomings.

2022: The independent investigation in Telford released its findings, revealing that over 1,000 children were victims of sexual exploitation within the town. The report disclosed that this abuse persisted for several years, often with the victims themselves being wrongfully blamed.

The investigation revealed that concerns were not pursued due to apprehensions regarding racial sensitivities, which led to discouragement among teachers and youth workers from reporting incidents of child sexual exploitation.

In 2024, Oldham council members renewed their demands for a governmental investigation, however, Jess Phillips, the minister responsible for safeguarding, stated that the council itself must undertake the investigation.

What role does Sir Keir Starmer play?

2008-2013: For a span of five years, Sir Keir Starmer served as the Director of Public Prosecutions (DPP), leading the Crown Prosecution Service (CPS), the agency responsible for overseeing criminal cases in England and Wales.

2009: The Crown Prosecution Service faced backlash for its decision not to pursue legal action against suspects of the Rochdale grooming gang in 2008 and 2009, citing the primary victim's lack of credibility as the reason for discontinuing the case.

During the fiscal year of 2010-2011, the number of child sexual abuse cases prosecuted peaked at 4,794 under the tenure of Sir Keir as the Director of Public Prosecutions (DPP). By the 2016/17 financial year, this number had escalated to nearly 7,200

2011: Nazir Afzal, the chief prosecutor for northwest England, appointed by Sir Keir, reversed the previous decision not to prosecute in Rochdale.

2013: According to a report by the Home Affairs Committee, the Crown Prosecution Service distinguished itself from other agencies by openly acknowledging its shortcomings in serving victims. The CPS has actively sought to understand the root of these widespread issues and has made efforts to enhance its procedures to prevent future occurrences.

The report noted: "Throughout his tenure as DPP, Mr. Starmer has made concerted efforts to enhance how victims of sexual assault are treated within the criminal justice system."

Former Manchester detective and whistleblower Maggie Oliver spoke to the BBC, stating that the Crown Prosecution Service (CPS) holds significant responsibility for the shortcomings related to this matter, which includes levying insufficient charges and faulting the victims.

2013: Sir Keir updated the guidelines regarding child sexual exploitation to facilitate more effective future legal actions. Previously, the credibility of victims could have been questioned if they did not report the abuse promptly, or if they had been under the influence of drugs or alcohol, or if their attire and behavior were judged in certain ways.

2013: Sir Keir established the Child Sexual Abuse Review Panel to reassess decisions made by the CPS to either not press charges or to discontinue cases from June 5, 2013, onward.

What statements has Elon Musk made?

The billionaire, active on X—a platform under his ownership—frequently shares posts daily. He has participated in multiple interviews and previously addressed issues concerning grooming gangs and child sexual exploitation. He has expressed support for both the Reform party and Tommy Robinson, and started consistently discussing the grooming gang scandal from late December to early January, often in reaction to comments from others.

31 December: Reacting to a post on X about grooming gangs that stated "the government went to great lengths to hide the crimes due to political correctness," Mr. Musk responded: "The officials in the government and judiciary involved should be dismissed in disgrace for this."

In reply to a message stating, "Parents trying to save their kids were detained upon police arrival," he commented on X, "Numerous individuals in various positions of authority in the UK should be incarcerated for this."

1 January: Following a string of responses to comments that shared comparable sentiments, showing empathy towards Tommy Robinson and endorsing Reform, he replied to a message that stated, "Labour's Jess Phillips, Minister for Safeguarding, declined to support a public investigation into child exploitation in Oldham," with a remark: "Disgraceful behavior by Jess Phillips. She should be expelled."

2 January: He replies to a flyer by advocating for another vote, then…

He writes: "In Britain, grave offenses like rape necessitate the endorsement of the Crown Prosecution Service (CPS) before police can formally charge individuals. During the period when exploitation rings targeted young girls with impunity, who was leading the CPS? Keir Starmer, from 2008 to 2013."

Who currently oversees Jess Phillips? Keir Starmer. The primary cause she's declining to probe into the rape gangs is due to the potential repercussions it could have on Keir Starmer, who was leading the CPS during that period.

In reply to a comment that disapproved of what was referred to as the legacy media, he stated: "This is the exact media that concealed the truth that over 250,000 young girls were – and continue to be – relentlessly assaulted by gangs of migrants in Britain. They are utterly despicable. Reprehensible individuals."

3 January: Reacting to a discussion on the expenses of another public inquiry, he comments: "No UK government investigation into the gang rape of innocent young girls, yet £22M is allocated to a clearly violent madman. Shame, shame, shame."

He proceeded to charge Keir Starmer with being "complicit" and labeled Jess Phillips as an "apologist for rape genocide."

4 January: He reacted to a report in The Daily Telegraph that alleged a concealment of the grooming scandal by stating "How the rape of Britain was covered up." He later remarked, "The sniveling cowards who permitted the widespread abuse of young girls in Britain still hold power… for now."

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Political Maneuvering: Why the Tories’ Push for a Grooming Gang Inquiry May Fail Despite Commons Support

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The Conservative Party's efforts to initiate an inquiry into grooming gangs through a proposal in the Commons are unlikely to lead to an actual investigation, despite their push for one. Even if their proposal is approved, it won't necessarily trigger a formal inquiry.

Journalist specializing

Tuesday, January 7, 2025, 7:

The Conservative Party's efforts to compel Members of Parliament to support a legislative inquiry into child sex gangs will not necessarily result in such an investigation, even if it gains approval in the House of Commons.

In the latest developments, Conservative leader Kemi Badenoch has announced her party's intention to propose an amendment to the Children's Wellbeing Bill this Wednesday, calling for a mandatory investigation into grooming gangs.

In her piece for X, Ms. Badenoch expressed her desire for "members of all political groups" to endorse the investigation.

Adopting the amendment would not necessarily compel the government to initiate an inquiry; rather, it would result in the demise of the legislation.

Live Politics: Downing Street has not set a schedule for the release of the investigation

Explaining the reasons…

What is the purpose of this modification?

Initially, it should be emphasized that actions of this nature are primarily driven by political motives, as opposed to procedural concerns.

By pushing for a vote on a modification and with Labour in opposition, the Conservatives can highlight that Labour voted against an inquiry.

Labour's substantial lead makes it nearly impossible for the Conservatives to secure a victory, a strategy commonly employed by all opposing parties.

Conservative tacticians are likely also aiming to stir discord among Labour MPs who may be dissatisfied with how Downing Street or Sir Keir Starmer are handling the situation.

Read more: Not reporting child sexual abuse to be criminalized. Starmer responds to demands for investigation. Analysis: Navigating politicians' interactions with Elon Musk.

Why wouldn't backing the amendment lead to an investigation?

Here, we delve into the complexities of parliamentary protocol.

When a piece of legislation is brought forward in the House of Commons, it undergoes multiple phases. Initially, it is presented to the members of the House, and at this stage, there is no discussion.

Following that, a "second reading" takes place, during which Members of Parliament discuss the bill for the first time and cast their votes to decide if it should move forward.

Following this stage, Members of Parliament delve into detailed examination of the bill in a committee setting, scrupulously analyzing and suggesting changes to each line. This process is accompanied by additional voting and further deliberations in the House of Lords prior to the bill being enacted into law.

The proposed legislation concerning children's welfare is scheduled for its second discussion this coming Wednesday.

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As previously stated, changes are usually not made until following this phase.

In advancing an amendment during the second reading, the Conservatives are employing a strategy referred to as a "reasoned amendment."

If approved, this measure would terminate the proposed bill, preventing it from advancing to subsequent rounds of voting.

Additionally, this would prevent the government from bringing the Children's Wellbeing Bill back before the next King's Speech.

The intent of the Children's Wellbeing Bill is to overhaul aspects such as the child care system and the safety of children in educational environments.

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Is a vote scheduled to occur?

The decision to hold a vote rests with the Speaker of the House of Commons.

It's uncertain whether he will opt for the amendment, but typically, amendments proposed by the opposition leader and backed by the shadow cabinet are chosen for discussion.

A "reasoned amendment" must be crafted with care, particularly by providing a clear and specific justification for opposing the bill.

Erskine May, the authoritative guide for the House of Commons, specifies that the standard procedure involves phrasing such as "this House declines to give a second reading to a bill which …", or "to the … Bill because …".

This involves casting a vote not just on the overall bill, but specifically through the usual voting process.

The most recent instance of a bill effectively terminating legislation occurred in 1986.

Efforts by Margaret Thatcher to change the laws regarding Sunday trading were stopped at that time by the Labour Party, under the leadership of Neil Kinnock.

The session experienced some disarray. Initially, the Speaker declined to permit Members of Parliament to cast their votes on Mr. Kinnock's amendment, but later reversed this decision during the course of the debate.

Following a late-night vote that saw considerable dissent within her party, Mrs. Thatcher faced defeat due to Tory rebels.

What are the different groups claiming?

Following Ms. Badenoch's declaration on Monday, the Conservatives have reinforced their stance.

A representative from the party stated: "Labour is seeking any reason to avoid initiating a crucial nationwide investigation into child rape grooming gangs.

Labour's efforts to use parliamentary rules to shift focus from the victims will not shield them from their ethical failings, nor will it excuse their inability to provide the victims with the clarity they need.

"Labour members of Parliament are now presented with the opportunity to make a just decision by casting their votes in favor of justice."

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👉 Tune in to the Politics At Jack And Sam's podcast on your favorite podcast platform👈

Labour, on the other hand, contends that previous investigations have already done the necessary work to examine grooming gangs.

The organization has committed to adopting every suggestion from the Jay review and will reveal further specifics in the upcoming Crime and Policing Bill later in the year.

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Chancellor Reeves to Impose Further Cuts on Whitehall Amid Economic Downturn, Testing Government Promises

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According to Sky News, Chancellor Rachel Reeves is expected to maintain her commitment to borrowing limits when she presents her spring statement on March 26, as the economic forecast continues to deteriorate.

Assistant Political Editor @SamCoatesSky

Wednesday, January 8, 2025, 7:

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Sky News has learned that Rachel Reeves is likely to impose stricter budget constraints on Whitehall's public services in the upcoming spending review, due to the deteriorating economic forecast.

This sets up a confrontation between the chancellor and certain ministers who believe she is forsaking the commitments outlined in the manifesto that they are supposed to implement. They argue these can't be met under the constraints of stringent budgets, all in an effort for her to keep her own pledges.

In the latest budget announcement, the chancellor pledged to fund routine governmental expenditures via tax revenues instead of resorting to loans, a practice that hasn't been seen in many years.

In the budget announced in October, she allocated herself a slender margin of £9.9 billion, from an overall public spending amount that exceeds £1 trillion.

Jess Phillips Responds to Elon Musk – Latest Political Updates

Deteriorating economic situations, characterized by the highest borrowing rates seen since 1998, suggest that the financial cushion might now be reduced to as low as £1 billion and could potentially be depleted completely.

Sky News has learned that the Treasury is preparing for the scenario where, during the spring statement on March 26, the Office for Budget Responsibility determines that she has violated her fiscal rule, prompting immediate corrective measures.

Further Insights on Rachel Reeves

There is significant worry regarding UK bond yields and the state of the economy, however, this situation does not parallel the Liz Truss era.

UK's long-term debt costs reach a century peak

While serving as the shadow pensions minister, Chancellor Rachel Reeves actively campaigned for Waspi compensation, often joined by her mother in these

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It is expected that she will adhere to her financial commitments – the fiscal policies declared in the October budget. Moreover, the Treasury has pledged that there will be no alterations to taxes in the upcoming spring statement on March 26.

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In such a scenario, Ms. Reeves would be compelled to further reduce the budgets for public spending and also seek extra cuts in welfare funding, which might be unfavorable politically.

In her financial plan, Ms. Reeves designated an increased spending rise of 4.3% for the fiscal year 2024-2025, followed by a more restrained increase of 2.6% for 2025-2026

However, she has earmarked a mere 1.3% from 2026 to 2029, which falls below the levels seen during the administrations of Tony Blair and Gordon Brown, as well as during Boris Johnson's tenure.

For further information: This century's peak in long-term borrowing expenses. What are the financial guidelines of the Labour Party? Deteriorating economic scenarios could compel Ms. Reeves to tighten budgets more severely, possibly providing less than 1.3% annually post-2026. Such constraints could lead to conflicts with key departments such as the Home Office, justice, housing, transportation, and environmental agencies.

The 1.3% increase must already include a rise in defense funding to set the UK on track to achieve 2.5% of its GDP for defense, indicating reduced budgets for other Whitehall departments. Any additional cuts to the budget will probably be met with dismay by certain cabinet members.

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Political Firestorm: Bridget Phillipson Slams Tories Over Grooming Gangs Inquiry Amid Children’s Wellbeing Bill Debate

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Bridget Phillipson has labeled the Conservatives as opportunists who are indifferent to children's issues, criticizing their demand for an inquiry into grooming gangs. The Tories have proposed an amendment to the Children's Wellbeing Bill to initiate a nationwide investigation into these gangs. However, Labour argues that this amendment might jeopardize the entire bill.

Political correspondent @alixculbertson

Wednesday, January 8, 2025, 09:

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Education Secretary Bridget Phillipson has criticized the Conservatives, labeling them as opportunists who are indifferent to children's welfare, in their push for a nationwide inquiry into grooming gangs.

The Conservative Party has proposed a change to the Children's Wellbeing and Schools Bill, which is scheduled for discussion on Wednesday, that calls for a mandatory investigation into grooming gangs following the refusal of safeguarding minister Jess Phillips to initiate one.

Adopting the amendment might not compel the government to initiate an investigation, but it could result in the failure of the entire bill, which is designed to enhance the protection of children, to pass through parliament.

Latest in Politics: Conservatives Challenged to 'Act or Remain Silent'

Ms. Phillipson informed Sky News' Wilfred Frost that the Conservative government failed to act on any suggestions from the eight-year national investigation into grooming gangs that concluded in 2022.

The education secretary stated, "The initiatives and laws I am announcing today advance our efforts by mandating that every local council establish dedicated teams to ensure the safety of children."

"Recently, those who have joined the cause don't actually care about the children or taking steps to bring about change."

"They had ample time to accomplish it, yet they failed to do so."

Explore further: Timeline of the grooming gangs scandal and why the Conservative Party's efforts to mandate an investigation will fail

The controversy surrounding grooming gangs has resurfaced in the news recently, with tech mogul Elon Musk charging Sir Keir Starmer with involvement. Starmer was the Director of Public Prosecutions from 2008 to 2013, during which time several of these gangs were active.

Mr. Musk has criticized Ms. Phillips for dismissing the idea of a national inquiry, pointing out that she believes it should be conducted by Oldham Council, the body that called for it.

In 2022, the Conservative party followed suit.

Sir Keir and Ms Phillips responded to Mr. Musk's criticisms, emphasizing their proven track record in safeguarding children.

Ms. Phillips conveyed to Sky News' political editor, Beth Rigby, "He should proceed with his plan to reach Mars. Elon Musk will continue being Elon Musk."

"There are more significant matters on my mind."

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Ms. Phillipson noted that several Conservative MPs, who are now calling it a "national scandal" that no actions were taken following the inquiry, were actually ministers at the time of its release in 2022.

She stated, "I concur that it's a disgrace for the nation that no action was taken."

"Do they even own a mirror? It's ironic because they are the ones who failed to take action, and now, these same Conservatives are planning to obstruct our bill that aims to protect children.

"I believed there was a boundary to their descent, but I underestimated it."

Laura Trott, the Conservative shadow education secretary, stated that her administration responded to the national inquiry, with Rishi Sunak establishing the Grooming Gangs Taskforce in 2023. This initiative led to 550 arrests and the identification and protection of 4,000 children within a year.

She informed Sky News that it's still unclear how many victims and perpetrators there are, which makes a national inquiry "extremely crucial."

Stay ahead with the latest breaking news updates.

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Stay informed with the most recent updates from the UK and globally by tuning into Sky News.

Ms. Phillipson further commented, "The Conservatives have a choice to support this critical landmark legislation or, as they intend, to completely thwart it."

Over the past week, they have been visiting studios like this one, assuring your audience of their commitment to children's safety.

"They ought to take action or remain silent, support this bill, and do exactly that. Or are they merely interested in securing a quick headline and capitalizing on political opportunities?"

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Jess Phillips Open to New National Inquiry into Grooming Gangs as Government Sets Up Victim’s Panel

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Jess Phillips leaves open the possibility of a fresh national investigation into grooming gangs

The government is establishing a new panel to listen to victims of grooming gang abuse.

Wednesday, January 8, 2025, 1:

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Jess Phillips has stated that all options, including potentially launching a new national inquiry, are being considered in response to the grooming gangs scandal if that is what the victims desire.

During a discussion on the Electoral Dysfunction podcast with Sky's political editor Beth Rigby, the safeguarding minister revealed that she intends to engage with victims through a newly established government panel announced earlier this week.

"She stated that all options are being considered."

"If the victims approach me during the panel discussion and express their belief that a national inquiry is necessary, I will certainly take their views into account."

Latest in Politics: Conservatives Urged to 'Act or Remain Silent'

She made her remarks following revelations that she had declined Oldham Council's request for a government-led inquiry into the town's grooming gangs, advising the council to organize the investigation themselves.

This has resulted in tech magnate Elon Musk criticizing her and Sir Keir Starmer for their failure to initiate a nationwide investigation, while also alleging that the prime minister is "complicit" in the misconduct.

In 2022, Professor Alexis Jay concluded an extensive eight-year investigation into child sexual abuse across the nation and presented a set of recommendations to the government.

Explore further: What unfolded in the grooming gangs controversy? Why the Conservative Party's efforts to mandate an investigation will fail

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On Wednesday, the Conservatives proposed a modification to the Children's Safeguarding and Schools Bill that mandates an official investigation into grooming gangs.

Speaking to Sky News, Education Secretary Bridget Phillipson accused the Tories of indifference towards children's welfare, arguing that the amendment might jeopardize the progress of the entire bill.

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She stated, "The initiatives I am introducing today, along with the legislation, are more comprehensive as they mandate every council to establish dedicated teams focused on child protection."

"Recently, the newcomers on the bandwagon show little concern for children or taking decisive action to address the issue.

"They had ample time to accomplish it, yet they failed to do so."

In 2022, the Conservatives dismissed a request from Oldham Council for a governmental investigation.

Tune in for Beth's complete conversation with Jess Phillips in an exclusive episode of Electoral Dysfunction, which will be available this Thursday.

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