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Scottish parties making unrealistic spending promises, warns IFS

Institute says health and social care manifesto pledges affordable only by increasing taxes or service cuts
Scotland’s main political parties have made unrealistic spending promises as they battle for votes in May’s Holyrood election, the Institute for Fiscal Studies has warned.
The IFS said the Scottish National party, Conservatives and Labour were pledging billions of extra pounds in health and social care funding that was affordable only by raising taxes or cutting other public services.
It accused all three parties of relying too heavily on UK government funding increases next year and beyond, which were unlikely to be anywhere near as high as they were leading voters to believe.
David Phillips, an IFS associate director, said neither the SNP, which is on course to comfortably win the election on 6 May, or Labour, had made a serious attempt to cost their manifesto pledges or explain properly how they would be paid for.
Their manifestos offered a “smörgåsbord” of headline-grabbing promises, including the SNP’s offer to increase NHS spending by £2.5bn while freezing income tax, and Labour’s undertaking to spend £4.5bn on an expansive Covid recovery programme.
The Conservatives had shown greater prudence overall yet had underestimated their pledge to protect NHS spending by at least £600m or a quarter of future funding increases. Even though all three parties’ NHS funding pledges looked very generous, in reality they would not keep pace with rising costs and demand, and would be lower than NHS funding increases in England.
Phillips, a specialist in devolved nations’ finances, said the parties had “failed to level with voters on the challenges ahead”. All three manifestos shared “a disconnect from the fiscal reality the next Scottish government is likely to face.
“Rising demand for, and costs of, health and social care could easily absorb three-quarters of the projected cash increase in the Scottish government’s budget over the next few years, substantially more than the SNP and Conservatives have budgeted for.
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The IFS analysis, funded by the University of Glasgow’s Scottish Policy Foundation, is its first comparative critique of Holyrood election manifestos. It did not analyse the Scottish Greens and Liberal Democrats’ manifestos because it did not have the capacity to do so.
Phillips said the biggest problem with all three manifestos was it were they relied heavily on the UK government keeping Treasury funding at current levels: that was extremely unlikely next year. Instead, Treasury support could increase by only 1%, leaving huge holes in their spending plans.
source: Severin Carrell
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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