UK diplomats told to cut up to 70% from overseas aid budget
January 26, 2021, 12:05 pm

UK diplomats told to cut up to 70% from overseas aid budget

British military personnel delivering aid to the hurricane-stricken Bahamas in 2019.

Officials have just weeks to slash costs, prompting fears that speed of cuts could ‘cost lives’

British diplomats have been instructed to find at least 50% cuts in UK overseas aid in the next six weeks in advance of the next financial year, the Labour party has said.

Sarah Champion, the chair of parliament’s international development select committee, said: “Our ambassadors have today been instructed by the Foreign Office to cut 50-70% from the aid budget.”

Describing the speed of the planned cuts as catastrophic, she added: “There is no doubt that lives will be lost as a consequence and our global standing as humanitarians destroyed. Welcome to day 26 of global Britain.”

The Foreign Office is due to make a written statement setting out its aid spending plans. So far officials have been more forthcoming about the parts of the budget that will be protected than those that will have to be cut. The current foreign aid budget is approximately £15bn.

The Labour claim has come before the foreign secretary, Dominic Raab, appears in front of the international development select committee for the first time since the Department of International Development merged with the Foreign Office to form the Foreign, Commonwealth and Development Office. Critics have described the merger as, in effect, a takeover of the aid budget.

The merger, completed at speed last autumn, has coincided with a £5bn cut in the overseas aid budget this year, caused by the collapse in annual growth as a result of the Covid crisis. The annual UK aid budget is currently legally set at 0.7% of gross national income.

But the Foreign Office announced before the integrated defence and foreign policy review that the aid budget would be cut from 0.7% to 0.5%, a reduction that UK legislation allows so long as it is temporary.

Ministers have said they will introduce legislation to allow a more long-term cut to 0.5%, but know they are likely to face a backbench rebellion over the issue, including from the former prime minister Theresa May and the former former aid minister Andrew Mitchell.

The aid committee has been told by campaigners that the effect of the slowdown in growth will mean a long-term cumulative cut in aid spending. Even if 0.7% was maintained, the UK would face a cumulative cut in the aid budget of about £5.2bn from 2020-25. The additional cut to 0.5 % will mean the cumulative cut from the aid budget will be likely to lead to about £25bn-£30bn being lost by 2025.

Ministers are likely to argue that they are being upfront with parliament by publishing the details of the cuts on the day that Raab is scrutinised by the international development committee.

Ministers are broadly confident the aid cuts are politically popular at a time of domestic belt-tightening, and the overall UK aid budget remains more than many G7 competitors.

The Foreign Office has been approached for comment.

source: Patrick Wintour

Levant

Teachers in England ‘should pick vulnerable pupils for early return’ UK sells arms to nearly 80% of countries under restrictions, says report

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.