Ian Black

Liz Truss, Britain’s Conservative prime minister who replaced Boris Johnson, has an awful lot on her plate. Last Friday, she faced an extremely challenging situation in the wake of the heavily-criticized “mini-budget’ presented by her Chancellor of the Exchequer, Kwasi Kwarteng. Truss dismissed him and then faced mounting criticism that she should go too. “The prime minister has sacked the chancellor for agreeing with her,” commented one veteran BBC journalist.

Labour and other opposition parties demanded predictably that a general election be held immediately in the face of the economic uncertainty generated by Kwarteng’s attempt to encourage growth by scrapping corporation taxes and lowering income tax for the rich – both without any financing. The resulting chaos created an unprecedented decrease in the value of the pound sterling against the US dollar and the euro and a sharp rise in interest rates.

Another government minister said privately that Truss should not have sacked Kwarteng after he had spent just 38 days in office especially after insisting on Thursday – while attending the International Monetary Fund (IMF) meeting in Washington – that he wasn’t “going anywhere.” Even active supporters of Truss reacted negatively to her move, reinforcing the spreading view that her days are numbered.

Back in early September, which now seems a very long time ago, Truss defeated Rishi Sunak, the former chancellor who competed with her to replace the scandal-prone Johnson and Brexiteer in Downing Street. But although the majority of Tory MPs backed Sunak, Truss was elected by party members of the party across the UK. “It’s checkmate,” said one Cabinet minister on Friday, albeit anonymously. “We’re screwed”.

Truss has had to abandon her policy of cutting taxes and then hoping that growth comes automatically. Markets want to be sure that her government can provide economic certainty so market turmoil has produced unprecedented and extreme political uncertainty. The Economist magazine described her approach as “pantomime radicalism.” Investors were alarmed by the amount of borrowing required to pay for the cuts. Huge tax cuts were never going to pay for themselves.

To be fair, Britain’s economic woes do not lie at the door of any one political party. Factors include Vladimir Putin’s ongoing war in Ukraine, rising energy costs, soaring food prices, inflation, increasing interest rates around the world and a strong US dollar. These are all global challenges which would be a nightmare for any government to manage.

But Britain’s predicament is worse than in many other countries in large part because it is more dependent on gas. Inflation is already in double digits; some have predicted it may exceed 20% by 2023. Shortly before Truss won, the Resolution Foundation, a respected think tank, predicted that falls in real incomes would wipe out all pay growth since 2003.

Jeremy Hunt, a former health secretary who was appointed to replace Kwarteng on Friday, conceded on Saturday that mistakes had been made. He added that Truss had won the leadership election to replace Johnson but tellingly admitted that “some people, including me, didn’t vote for the prime minister.” He added that many government departments, including health and defence (where Truss has vowed to increase spending), will face cuts. There were “difficult decisions” to come. Hunt faces an uncertain two weeks until he presents his own – hopefully - more sensible and realistic budget on October 31. And he was described as a “caretaker prime minister.”

Another respected thinktank predicted that, historically, any efficiency savings are likely to come from public sector staff cuts and pay freezes. That is why Britons are generally not optimistic about their future economic situation.

This Conservative government disarray is naturally good news for opposition parties, including Keir Starmer’s Labour, which was last in power in 2010. There was no historical precedent, he said over the weekend, for the current crisis, describing it as “grotesque chaos.”

“Britain has faced financial crises before but the prime ministers and chancellors who wrestled with them all acted fast,” Starmer said in a powerful speech at Barnsley in Yorkshire. “When their policies ran against the rocks of reality, they took decisive action. But this lot, they didn’t just tank the British economy, they also clung on as they made the pound sink. Clung on as they took our pensions to the brink of collapse. Clung on as they pushed the mortgages and bills of the British public through the roof. All the pain our country faces now is down to them.”

All this recent tumult has seen Labour, unsurprisingly, take a strong lead over the Conservatives in numerous polls. A survey published by YouGov last Thursday, found that 51% of people said they would vote Labour in a general election, while only 23% said Conservative, a gap of 28 points. As the Observer editorialized: “The country yearns for stability, good governance and solutions. It is clear it will fall to the Labour party to provide them – probably sooner than later. It had better be ready.”

If Tory MPs agree to hold an election – as they must, according to constitutional law - it will be like turkeys voting for Christmas.

BY: IAN BLACK

Iran prison fire death toll rises to 8 inmates killed 42 Sri Lankan students hospitalized following wasp attack

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.