-
Javid says he is 'turning the page on austerity'

“After a decade of recovery from Labour’s great recession, we are turning the page on austerity and beginning a new decade of renewal,” Javid said in parliament on Wednesday, taking aim at the opposition Labour Party.
Day-to-day spending would rise by 4.1% above inflation in the next financial year, the first after Britain’s scheduled departure from the European Union on Oct. 31, he said.
In his first major speech since taking over the public purse strings in July, Javid promised more money for “the people’s priorities” - education, health and the police - after a decade of tight spending controls that have frustrated voters.
He also promised an “infrastructure revolution”, more funding for the armed forces and social care, and no cuts for any government department next year.
But he said he would not be writing any blank cheques.
Opposition spokesman John McDonnell, who could soon be finance minister if Labour wins any early election, said Javid’s announcement was a sham.
“To come here and to try and fool us with references to people’s priorities is beyond irony,” McDonnell said. “We are expected to believe that these Tories who for years have voted for harsh, brutal austerity have had some form of Damascene Conversion.”
Javid was also interrupted on several occasions during his speech by the speaker of the House of Commons who asked him to refrain from making “very, very unseemly” political points about the government’s Brexit position rather than focusing on his spending plans.
MORE BORROWING AHEAD
Javid, a former Deutsche Bank managing director, is sticking with Britain’s existing fiscal rules, at least for Wednesday’s one-year spending plan but suggested he would borrow more in the future to take advantage of record-low borrowing costs.
He has a bit of room to increase borrowing to fund his planned spending increases because Britain has cut its budget deficit from almost 10% of gross domestic product in 2010 to just over 1% now.
But analysts have warned that he could end up weakening Britain’s budget credibility by making big spending pledges at a time when the economy is at risk of recession and the outcome of Brexit remains so unclear.
“In the absence of offsetting tax rises, it is touch-and-go whether Sajid Javid will breach his current fiscal rules,” the Institute for Fiscal Studies think-tank said.
The IFS also said the 4.1% real increase in day-to-day spending was only enough to reverse about two-thirds of real cuts made since 2010.
Prime Minister Johnson is pushing for an early election to resolve the parliamentary impasse over Brexit.
On Tuesday, lawmakers moved ahead with a plan to frustrate him by forcing the government to seek a delay to Britain’s exit from the EU.
In his spending speech, Javid said he would review Britain’s fiscal rules ahead of a longer-term tax-and-spending budget statement later this year.
Those rules, drawn up by Javid’s predecessor Philip Hammond, require the government to keep public borrowing below 2% of gross domestic product and to bring down debt as a share of economic output each year.
The Resolution Foundation think-tank has said Britain’s weak economy, a recent rise in public borrowing and Johnson’s long list of spending promises mean Javid is already set to break the 2% deficit rule next year.
You May Also Like
Popular Posts
Caricature
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.
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!