Sources say UK to hold emergency mini-budget on September 23
September 15, 2022, 8:00 pm

Sources say UK to hold emergency mini-budget on September 23

Everyday life in London city, UK (Photo: Pixabay)

Britain’s new finance minister, Kwasi Kwarteng, will deliver an emergency mini-budget on September 23 to give more details about support to help ease the country’s cost-of-living crisis, government sources said on Thursday (Sep 15).

Prime Minister Liz Truss took office last week after winning the contest to lead the governing Conservative Party with a promise to immediately cut taxes and redouble efforts to promote economic growth.

Hours before Queen Elizabeth’s death last week, Truss outlined a plan to cap consumer energy bills for two years and funnel billions into propping up power companies.

Truss told parliament that Kwarteng would make a formal fiscal statement about the expected cost of her plans before the end of the month.

The period of national mourning following the queen’s death has left ministers with little room to fit it in, making a date at the end of next week the only option.

Passengers queue for busses outside Victoria Station London, on August 19, 2022, as strike action on Buses, National Rail and London Underground affects services. (AFP)

Investors are keen to hear details about the vast cost of the plans, with estimates ranging between £100 billion and £200 billion ($115-230 billion). But they may be disappointed: the Office for Budget Responsibility will not be publishing detailed forecasts next Friday, one source said.

British government bond prices have fallen sharply over the last month in anticipation of Truss’s tax and spending plans, because they imply a sharp increase in government borrowing and with it issuance of gilts.

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Truss said average household energy bills would be held at around 2,500 pounds a year for two years, staving off a major price leap expected next month that threatened the finances of millions of households and businesses.

While that should stop headline inflation surging towards 20 percent in the coming months - as some economists expected in the absence of a freeze in energy bills - the Bank of England may need to keep interest rates higher for longer, given the improvement to the outlook for households’ spending.

Britain’s response to the cost-of-living crisis has differed from its European peers, notably in Truss’s rejection of a windfall tax on energy companies’ profits.

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On Wednesday the European Union’s executive outlined plans to raise more than $140 billion from energy firms to help shield households and businesses from spiraling prices.

France will cap power and gas price increases for households at 15 percent next year, Prime Minister Elisabeth Borne said on Wednesday, to ease the pain for consumers of Europe's worst energy crisis in decades.

Source: alarabiyaenglish

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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.