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Sunak defends budget plans and insists 1% rise for NHS staff is fair

Chancellor tells MPs that his decisions were made in response to £355bn budget deficit
Rishi Sunak has rejected criticism that his budget plans to repair the government’s finances after Covid-19 were unrealistic, and insisted a 1% pay rise for NHS staff is fair.
The chancellor said the pay offer, alongside plans for a wider public sector pay freeze, was “proportionate, fair and reasonable” given the damage to the government’s finances caused by the pandemic and as many workers in the private sector have lost their jobs.
Answering questions from MPs on the Commons Treasury committee on Thursday, Sunak said the process was being handled by the NHS pay review body but that it was a government decision to recommend the 1% increase. Ministers have insisted the nation could not afford a higher offer, sparking intense anger across the public sector.
“For a matter of fairness, but also to protect people’s jobs in the public sector given what was going on in the private sector, we set out a targeted approach to public sector pay, which we thought was proportionate, fair and reasonable,” Sunak said.
The chancellor said the plan came “in recognition of the circumstances that we face” with the government’s budget deficit – the gap between spending and receipts – on track to reach £355bn this year.
It comes after Sunak faced criticism that his budget lacked credibility for including plans to spend £15bn a year less on public services from 2022-23 than envisaged before the Covid pandemic.
Mel Stride, the Conservative chair of the Treasury committee, warned the legacy of the pandemic would probably include greater demands on public services, telling the chancellor: “The way I’m looking at it there is a £15bn cut relative to previous plans. I would’ve thought that would be one of the areas where you’d be worrying quite a bit about that.”
However, Sunak insisted it was not a cut, despite it being labelled as such by the independent Office for Budget Responsibility. He said spending was set to rise by 2.1% once inflation is taken into account, which would leave the size of the state by the mid 2020s at historically high levels.
“Spending grows over the parliament and grows in every year. What you’re referring to are changes in forecasts from previous fiscal events. That’s not a cut in spending. Spending is growing over this parliament very strongly,” he said.
However, the chancellor hinted that permanently higher levels of tax may be needed in future to fund public services, despite concerns from backbench Tory MPs that the tax take as a percentage of GDP would rise to 35% – the highest since Roy Jenkins was chancellor in the late 1960s.
“If there are demands on the spending side that are larger, it is reasonable to expect that those have to be paid for. I think most people will understand that,” he said.
Sunak was also forced to defend the government’s record on procurement of PPE and spending on its Covid test and trace programme, in the wake of highly critical reports from parliamentary watchdogs questioning value for money.
“Given we were dealing with a pandemic it was appropriate that we approached this with a degree of flexibility,” he said.
The chancellor insisted making sure taxpayers’ money was spent well was “really important” and that if there were any lessons the Treasury could learn it would do so. However, he added: “Whilst saying that it’s important to remember the context we’re operating under at the time.”
source: Richard Partington
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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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