logo
Spend every penny of increased cash on affordable housing, charity urges

Spend every penny of increased cash on affordable housing, charity urges

Yahoo11-06-2025

Scottish ministers have been urged to fully pass on a funding increase caused by a boost in housing spend by the UK Government.
Chancellor Rachel Reeves announced on Wednesday £39 billion would be spent over the next decade on housing.
The cash will result in an increase in funding for Scotland, though the Treasury has as yet been unable to say how much extra cash will come north of the border.
The announcement comes as the Scottish Government has been dealing with a housing emergency in the country for more than a year and as Mairi McAllan was appointed Housing Secretary on Wednesday.
Shelter Scotland – a key housing charity north of the border – has urged ministers to ensure every penny provided to the Scottish Government as a result of the boost goes towards affordable homes.
'The UK Government has finally recognised the importance of social housing and placed it at the heart of the Chancellor's plans,' the charity's director, Alison Watson, said.
'If additional funding is made available, only the Scottish Government can decide how it is allocated. But if the First Minister is serious about tackling the housing emergency and ending child poverty, housing must be a priority.
'We demand that any consequentials arising from this investment in housing in England are passed directly to Scotland's affordable housing supply programme.
'This is already the case with NHS spending – housing should be no different. After all, home is everything.
'We know that building more social homes is the only way to tackle the housing emergency.
'It is the only way we can move the 10,360 children currently in temporary accommodation into secure, permanent homes.'
A Scottish Government spokesperson said: 'As part of his reshuffle, the First Minister has put tackling the housing emergency at the heart of his Cabinet by appointing Mairi McAllan as Cabinet Secretary for Housing.
'This financial year, we have increased the Affordable Housing Supply Programme budget by £200 million to £768 million, including £40m targeted towards acquisitions to support the local authorities with the most sustained homelessness and temporary accommodation pressures.
'The full implications of the UK spending review, which outlined spending on housing in the next 10 years, are still being considered.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How the stablecoin bill gives Treasury Secretary Bessent a new tool to fund the U.S. deficit
How the stablecoin bill gives Treasury Secretary Bessent a new tool to fund the U.S. deficit

CNBC

time21 minutes ago

  • CNBC

How the stablecoin bill gives Treasury Secretary Bessent a new tool to fund the U.S. deficit

The crypto industry is on the verge of a major regulatory milestone, and it could lead to digital assets being a significant source of funding for the U.S. government. On Tuesday, the Senate passed the GENIUS Act , which lays out a regulatory framework for stablecoins, sending it on to the House of Representatives with bipartisan support. Treasury Secretary Scott Bessent praised the bill in a post on X , saying that a regulated and growing stablecoin market could create new buyers for U.S. government debt. "A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users — across the globe — to the dollar-based digital asset economy," Bessent said. "It's a win-win-win for everyone involved" The exact size the stablecoin market can reach in the future is unclear, but it does appear that the U.S. government will have plenty of debt to sell to it. The Congressional Budget Office's dynamic score — which takes into account the legislation's potential changes to factors like economic growth — said the tax and spending bill that recently passed the House would increase the total deficit by $3.4 trillion from 2025 to 2034, including interest costs. The current size of the U.S. dollar-denominated stablecoin market is around $230 billion to $250 billion, according to Robbert van Batenburg, strategist at The Bear Traps Report, and there is a theory that a clearer regulatory framework can help lead to wider adoption. Several major tech and consumer companies are reportedly exploring issuing their own stablecoins or using existing coins more frequently. Bessent previously told the House Financial Services Committee in May that there is "speculation" the stablecoin market could be "up to $2 trillion of demand over the next few years for U.S. government securities from digital assets." The market could in theory surpass that $2 trillion figure if stablecoins start to take market share from traditional credit card payment networks, van Batenburg said. The stablecoin bill also comes at a time when Wall Street has started to fret about foreign investors and governments turning away from U.S. assets. Katie Haun, founder and CEO of Haun Ventures and former Coinbase board member, said Friday on " Squawk Box " that the stablecoin industry is already 14th largest holder in the world of U.S. Treasurys, ahead of nations like Germany and Norway, and that the new legislation should help it continue to grow. "I've been asking for regulatory clarity and more rules of the road, and I think the GENIUS Act is exactly that," Haun said. How stablecoins work Stablecoins are a type of digital currency that is often used to facilitate crypto trading but can also work for other types of transactions. They are designed to be "stable" at a set value. Some stablecoins have drawn scrutiny in the past over concerns that their reserves were insufficient or relied on mechanisms that would unreliable in times of market stress. The Senate bill calls for stablecoins to be backed on at least a 1-to-1 basis by highly liquid assets, including U.S. currency, U.S. Treasury bills, repurchase agreements — or "repos" — backed by Treasury securities, government money market funds and central bank reserve deposits. An example of a stablecoin's reserves can be found in the disclosures from Circle , which went public earlier this month and has seen its stock soar . CRCL 1M mountain Shares of Circle have soared since the IPO. Circle's IPO prospectus shows that the vast majority of its stablecoin reserves are held in a BlackRock vehicle called the Circle Reserve Fund . That fund's holdings are split roughly 50-50 between short-term U.S. Treasury Debt and Treasury repurchase agreements. If the GENIUS Act is enacted as currently written, stablecoin companies will be required to certify they have these holdings on a monthly basis, with the oversight of registered public accounting companies. Risks A growing stablecoin industry in the U.S. is not likely to completely fix the government's debt funding problem, and it could introduce additional risks. Nonprofit group Better Markets opposes the GENIUS Act, and its policy director Amanda Fischer said in a statement that the bill ignores "the susceptibility of stablecoin companies to runs, bankruptcies, and taxpayer-funded bailouts." Counting on the industry as a funding source for the Treasury market could also be tricky. Lawrence McDonald, founder of the Bear Traps Report, cautioned that additional demand from stablecoins will take time to develop while the U.S. Treasury will likely need to issue significant amounts of debt securities over the next year. McDonald also said that, while interest costs of short-term debt are cheaper than that of 30-year Treasurys, relying so heavily on the short-end of the bond market can be a problem for countries. "If something ever went wrong, in terms of say oil, and that prevented the [Federal Reserve] from cutting, then you're going to have a high bill rate for a long-time and the deficit is going to spiral out of control," McDonald said.

Starmer Faces Brewing Rebellion Over £5 Billion Benefit Cut
Starmer Faces Brewing Rebellion Over £5 Billion Benefit Cut

Yahoo

timean hour ago

  • Yahoo

Starmer Faces Brewing Rebellion Over £5 Billion Benefit Cut

(Bloomberg) -- UK Prime Minister Keir Starmer is less than 10 days away from the biggest parliamentary challenge to his authority in his not-yet year-long tenure. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown Unpopular cuts to disability benefits unveiled earlier this year as part of Chancellor of the Exchequer Rachel Reeves' efforts to balance the country's books are due before the House of Commons for their first vote on July 1, with a large-scale rebellion brewing on the Labour back benches. So far, at least 150 of the governing party's Members of Parliament have indicated concerns about the cuts in two letters to the government. Other non-signatories have told Bloomberg they also intend to vote against the bill. While Starmer's attention this week was centered on the escalating tensions in the Middle East, the domestic threat was laid bare on Thursday when Vicky Foxcroft, a government whip who would have been tasked with helping quell the revolt, quit, citing her own objections. The rebellion threatens to bruise Starmer's and Reeves' credibility and further damage their stock with the left of their party. In order to avoid falling to what would be an unprecedented defeat for a government enjoying such a large majority so early in its tenure, ministers could at worst be forced into major concessions that reduce the bill's expected cost savings, forcing the Treasury to conjure up money from other cuts or tax rises at the budget in the fall. 'It's a test of Starmer's authority and the way he and Rachel Reeves are running the economy,' Tim Bale, professor of politics at Queen Mary University London, said in a phone interview. 'If the rebellion is too big, you start to run into questions about the loyalty of your backbenchers and even perhaps the future of your leadership.' The welfare reforms allowed Reeves to save about £5 billion ($6.5 billion) a year by 2030 by making it harder for disabled people to claim a benefit called the personal independence payment, or PIP. The chancellor factored them into a spring statement as part of spending cuts designed to help meet her self-imposed fiscal rules. Reeves says the changes are necessary because an extra thousand people a day have been signing on for PIP, creating an 'unsustainable' impact on the public finances. PIP payments had been projected to almost double to £41 billion by the end of the decade, within overall spending on disability and incapacity benefits that the Office for Budget Responsibility — the government's fiscal watchdog — sees rising to £100 billion from £65 billion last year. The government has also says there is a moral case for supporting people back into work. But Labour lawmakers are concerned the government announced changes in a rush to deliver savings, without thinking through the impact on vulnerable people. 'There are alternative and more compassionate ways to balance the books, rather than on the backs of disabled people,' one Labour backbencher, Debbie Abrahams, told the House of Commons. There are particular concerns about a new requirement for claimants to score four or above in one of the daily living components of the PIP assessment, meaning people who can't wash half their body or cook a meal will be denied the payments if they have no other impairments. One Labour MP describing the process as letting the OBR tail wag the government dog. Some 45 Labour MPs signed a public letter objecting to the measures, while another letter — arranged in secrecy so that even signatories couldn't see who they were joining — garnered 105 signatures and was sent to the chief whip. While some of the would-be rebels have indicated they could be swayed by the government whips, one of them told Bloomberg they are confident that more than 80 MPs will commit to voting against the government. Given Starmer's working majority is 165, if all opposition parties vote against the bill, it would take 83 Labour rebels to defeat the government. The main opposition Conservative Party is planning to vote against the changes, Danny Kruger, one of the party's work and pensions spokespeople, told parliament in May. Its reasons are different: the Tories argue the measures don't go far enough. One Labour MP told Bloomberg that concerned lawmakers plan to put forward a procedural challenge to the bill. While they don't expect the speaker to select that amendment for debate, the aim is to force further changes from the government, and organize would-be Labour rebels into a coherent group which could eventually vote down the bill. Many in Labour had been waiting to see the bill before making up their minds. When the text was published on Wednesday, the concessions to their concerns were minimal, largely amounting to a 13-week transition period for those losing their PIP. Foxcroft — the whip who had previously served for four years as Starmer's shadow disability minister in opposition — quit within hours of the publication, saying she didn't believe cutting the disability benefits should be part of the solution to tackling ballooning welfare costs. Culture Secretary Lisa Nandy said Friday that Foxcroft's resignation wasn't a sign of a major rebellion, while conceding that 'of course' there are dissenting voices on such a big reform. 'Vicky is the only front-bencher that I've had a conversation with about resigning,' she said. Nevertheless, many so-called 'red wall' Labour MPs in northern and central England face a tough decision. Health Equity North, a public health institute, found that all the places most affected financially by the PIP reforms are Labour constituencies in northern England. In several areas, the number of people affected by the welfare changes exceeds the Labour majority, meaning those MPs could see a crucial drop in support. The government is gearing up for a fight, indicating it will make no further concessions. On Wednesday, Deputy Prime Minister Angela Rayner failed to rule out stripping the whip from Labour rebels, while government enforcers are warning MPs that their political career prospects will be ruined if they oppose the bill. Whips and wannabe rebels alike expect the potential revolt to be whittled down as July 1 approaches. Some opponents are weighing whether to abstain at the second reading and wait until the third reading to take a more decisive vote, as whips are encouraging them to do. 'I'd be amazed if he were defeated here,' Anand Menon, director of the UK in a Changing Europe think-tank, said. 'If the whips got a whiff they were going to get defeated, they'd give some concessions. The worst of all outcomes is to lose this.' Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Medicare go-broke date pushed up three years in latest trustees report
Medicare go-broke date pushed up three years in latest trustees report

Yahoo

time3 hours ago

  • Yahoo

Medicare go-broke date pushed up three years in latest trustees report

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. A key trust fund underpinning Medicare's hospital benefit will go broke three years earlier than previously expected absent congressional action, threatening benefits for seniors, according to the Medicare trustees' annual report released Wednesday. The Medicare Hospital Insurance trust fund will be depleted in 2033, instead of 2036, as Medicare spending continues to outpace the program's income, the trustees — a group comprised of the HHS, Treasury and Labor secretaries, along with the Social Security commissioner — warned. The bleaker outlook is due to higher-than-expected spending for hospital care, hospice services and physician-administered drugs. The trustees called on Congress to act quickly to stabilize Medicare, though near-term action is unlikely as the Republican majority focuses on advancing their reconciliation megabill. Medicare has been teetering on the edge of insolvency for a while. But the latest report from Medicare's trustees is more dire than last year's, which projected Medicare would become insolvent in more than a decade. Now, Medicare's hospital trust fund will start running out of money in eight years — when today's 57-year-olds first become eligible for the program. The looming go-broke date is a result of the fund's substantial shortfall as Medicare costs continue to grow rapidly, trustees said in the report. Medicare costs are expected to increase from 3.8% of the gross domestic product in 2024 to 6.2% in 2050 before reaching 6.7% in 2099, the report projects. Costs to another fund that pays Parts B and D, called the Supplemental Medical Insurance trust fund, are also climbing, increasing pressure on beneficiary budgets and the federal budget. (Though, the Supplemental Medical Insurance trust fund is largely funded by premiums and general revenue that resets each year and doesn't face the same solvency concerns.) This year's estimates, which are based on current payment rates, could be conservative, trustees said. Under an alternate scenario, in which provider payments grow at a rate more consistent with underlying medical costs — a change aggressively lobbied for by physician associations — Medicare spending will rise to 8.8% of the GDP in 2099 rather than 6.7%, according to the report. The precarious footing of the federal insurance program, which covers almost 69 million people in the U.S., is due to the country's underlying demographic shifts, according to experts. More and more Americans are aging into Medicare, while at the same time the number of workers paying into its trust fund is dropping. More seniors are also selecting privatized Medicare Advantage plans, which are more expensive than traditional Medicare coverage. If and when the U.S. hits Medicare's go-broke date, the hospital trust fund, which pays hospitals and providers of post-acute services and also covers some of the cost of private Medicare Advantage plans, will have inadequate income to fund those benefits. Medicare payments would immediately be cut by 11%, according to the report. Those cuts would grow over time, likely disrupting services for seniors and reimbursement for providers. It's worth nothing that there's a significant degree of uncertainty in trustees' projections, which vary based on macroeconomic forces in a given year. For example, in 2020, in the early throes of COVID-19, the board predicted the hospital trust fund would run out by 2026. That deadline was pushed back to 2028 and then 2031 in subsequent years' reports, amid a broader economic rebound and more care shifting to cheaper outpatient settings. Still, the fund hasn't met the trustees' test for short-range financial adequacy since 2003, and has triggered funding warnings since 2018. To date, Congress has not allowed Medicare to go under. But legislators' lack of action despite years of warnings is a source of heartburn for budget hawks, Medicare advocates and physician lobbies. Experts say lawmakers need to act soon given many reforms to stabilize Medicare could take a few years to go into effect. 'The projections in this report show that change is needed to address Medicare's financial challenges,' the Medicare trustees wrote in their report. 'The sooner solutions are enacted, the more flexible and gradual they can be.' According to the Committee for a Responsible Federal Budget, restoring Medicare solvency would require Congress to boost the payroll tax rate by 14% or reduce Medicare spending by 9% — both politically unappetizing proposals. Other reforms that could curb Medicare spending, like implementing site-neutral payments or reducing overpayments in MA, have more bipartisan support but aren't a policy priority on the Hill. Republicans are currently focused on hammering out legislation to extend tax cuts from President Donald Trump's first term, cut green energy programs, fund border control and curb Medicaid spending. 'We are running out of time to phase in changes gradually and avoid harsh cuts, sharp tax increases, or unacceptable borrowing. Demagoguing this issue may be politically expedient, but it will ultimately prove ruinous for the tens of millions of Americans that rely on the programs,' Maya MacGuineas, the president of the CRFB, said in a statement Wednesday. Recommended Reading Medicare go-broke date extended to 2036, but warning bells continue ringing

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store