Latest news with #publicspending
Irish Times
a day ago
- Business
- Irish Times
Watchdog may compel Peter McVerry Trust to come before it amid growing anger over finances
The Dáil's most powerful public spending watchdog will consider compelling the Peter McVerry Trust (PMVT) to appear before it to answer questions about its €15 million State bailout . Sinn Féin TD John Brady, who is chair of the Public Accounts Committee (PAC), expressed 'dissatisfaction and anger' towards the housing charity which has now twice refused to appear before the committee. Mr Brady said the PAC would now consider 'what options are open to us at this point', which could include compelling the trust to appear. At a meeting in public session on Thursday morning, a number of cross-party TDs expressed anger at the PMT for refusing to answer questions about its financial troubles. It came after serious governance failings by the trust came to light in investigations by two State regulators. READ MORE The trust has so far failed to file its company accounts for 2023. In early 2024, it told the PAC it could not appear before it due to ongoing investigations. In a letter to the PAC this week, the trust again refused to make itself available for public questioning, claiming it was not in a position to attend 'at this time'. 'There's a real level of dissatisfaction and anger here by members, and I include myself in that,' Mr Brady said. He added that he was also aware of attempts over the last year by the Oireachtas housing committee to invite PMVT to appear before it. Mr Brady said the trust had received 'huge' sums of public funding and 'there needs to be accountability'. 'I propose that we write immediately to PMVT imploring them to come in at the earliest opportunity,' Mr Brady said. He said PAC will be seeking guidance from the Oireachtas standing orders committee to see what options it had to expand its remit and bring PMVT before it. 'It is deeply unsatisfactory and disheartening, as members said, when an organisation such as PMVT does not actually take cognisance of the last word in that – trust,' he said. 'Public trust is foremost here and people cannot have trust in how public money is being spent and the governance around that. I think that is deeply concerning.' PMVT said in a statement: 'At this time, PMVT is not in a position to take part in the committee's meeting. We are currently awaiting the completion of our audited financial statements for the year ended December 31st, 2023. 'Once these audited accounts are available, they will be published and we will share relevant information with our stakeholders and the public as appropriate, including making representatives available for the appropriate Oireachtas committee in due course.'
Telegraph
2 days ago
- Business
- Telegraph
The £1bn cost of the National Insurance raid that Reeves ignored
Rachel Reeves's National Insurance tax grab has left councils facing a seven-figure shortfall with more at risk of bankruptcy, MPs have warned. The Chancellor raised employer contributions to 15pc during her Budget, but a Public Accounts Committee (PAC) report on Wednesday said ministers had failed to properly assess another £1.1bn of potential costs. MPs said the Government had not carried out an assessment of the true costs, and demanded it review the short- and long-term impact on providing services. Councils are now facing the risk of private providers passing on their increased costs and handing back social care contracts they can no longer afford to deliver, it said. The report added that local government finance was in a 'perilous state', with budget deficits putting many councils at risk of effectively going bankrupt. The Local Government Association (LGA), which represents councils, has already warned that more than half of councils are on course for insolvency next year. The National Insurance contribution rate for employers rose from 13.8pc to 15pc in April following changes in October's Budget. The salary threshold also dropped from £9,100 to £5,000, as the Government tried to raise tax for public spending. Ministers set aside £4.7bn to support the public sector, including £502m for councils to cover increases in their direct employment costs. However, the LGA calculated the actual cost to be £637m. It also warned of £1.1bn in extra costs for councils passed on by service providers they had commissioned. The PAC report said: 'Some local authorities may be able to provide financial support to service providers for these increases in costs, but it is unacceptable that the Ministry of Housing, Communities and Local Government and HM Treasury have not assessed how much impact this could have on local authorities.' It added: 'Spending on special educational needs and disabilities (Send) has outstripped the money available from the Department for Education to pay for it. Local authority deficits from these overspends are expected to be between £2.9bn and £3.9bn a year by the end of 2027–28. 'The mechanism which allows local authorities to keep these deficits off their books is due to run out in March 2026, and without it, many local authorities are at risk of effectively going bankrupt.' The charity, Mencap, which supports more than 4,000 people with learning difficulties, also told the committee it could be forced to hand back social care contracts after a potential £18m annual increase in costs due to National Insurance and national living wage rises. It comes as council tax is expected to rise again to fund major commitments announced earlier this month in Ms Reeves's first spending review. Rates are already at record levels, with nine in 10 areas across England enduring the maximum 4.99pc council tax rise this year, and parts of Scotland and Wales slapped with even higher increases. A spokesman for the County Councils Network, which represents local authorities, said the Government's compensation covered less than half of the increased costs in National Insurance. He said: 'This year, county and unitary councils are having to make an unprecedented £1.2bn in savings due to rising demand for services, compounded by recent government decisions. One of those was the decision to raise employers' National Insurance contributions, which has adversely impacted on councils. 'Our recent survey found that the Government's compensation covered just 40pc of the costs of this policy for county and unitary councils this year, meaning they will have to make up the shortfall through service reductions and other efficiencies.' Councillor Louise Gittins, chairman of the LGA, said the spending review had left councils under continued financial pressure. She said: 'Many will continue to have to increase council tax bills to try and protect services, but still need to make further cutbacks. While the Government faced tough choices, future funding for adult social care is good news but a lack of significant extra government money needed to meet immediate pressures is worrying.' Jim McMahon, of the Ministry of Housing, said the PAC's claims were not supported by the evidence. He said: 'The spending review provided over £5bn of new grant funding for local services, and that's on top of the £69bn we have already injected this year to boost council finances. 'The results speak for themselves. Over 95pc of audited accounts were submitted for the deadline we set, no S114 were issued by councils as a result of financial distress, and claims against Exceptional Financial Support were £1bn less than the previous year.'
Bloomberg
3 days ago
- Business
- Bloomberg
German Investor Confidence Jumps as Fiscal Boost Outweighs Trade
Investor confidence in Germany's economy improved more than anticipated as a forthcoming surge in public spending outweighs fears over looming US tariffs. An expectations index by the ZEW institute increased to 47.5 in June from 25.2. the previous month. That's way above the 35 median estimate in a Bloomberg survey. A measure of current conditions also gained.
Zawya
4 days ago
- Business
- Zawya
GCC's total public spending for 2025 set to hit $542bln
The total public spending by the six GCC countries – the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain – is estimated to reach $542.1 billion in the current financial year 2025, according to data released by the Muscat-based GCC Statistical Center (GCC-Stat). Most GCC countries have projected an increase in public spending in 2025 compared to their 2024 spending estimates. This increase is considered a key driver of economic growth in the GCC region and is directed toward completing infrastructure projects and stimulating growth in certain economic sectors, in line with strategic development plans, said GCC-Stat in its report. GCC-Stat expects government revenues in the GCC countries to remain relatively stable, with oil prices likely to stay at moderate to high levels in 2025. Estimated total public revenues for the GCC countries are projected to be around $487.8 billiion during the current financial year, while the combined budget deficit of the six countries is estimated at $54.3 billion. In the GCC, government revenues are directly affected by movements in global oil prices, as oil revenues constitute the largest proportion of income sources for the region. GCC countries follow a conservative approach in calculating the break-even oil price in their general budget estimates. This approach aims to account for international economic fluctuations and volatility in global oil prices, said the report. The GCC countries plan to finance budget deficits through the use of reserves and domestic and foreign borrowing, it added.
Gulf Business
4 days ago
- Business
- Gulf Business
GCC public spending projected to hit $542bn in 2025
Image: Getty Images/ For illustrative purposes Total public spending by the six Gulf Cooperation Council (GCC) countries is expected to reach $542.1bn in the 2025 financial year, according to data released by the GCC Statistical Center ( According to a report published by the state news agency, WAM , the six member states — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — have largely projected higher public expenditures compared to 2024, directing increased funds toward infrastructure completion and targeted economic sector growth in line with long-term development strategies. GCC-Stat data shows that government revenues across the bloc are forecast to remain relatively stable in 2025, supported by expectations that global oil prices will remain at moderate to high levels throughout the year. Total public revenues for the GCC countries are estimated at $487.8bn, resulting in a combined budget deficit of $54.3bn for the year, the WAM report stated. Read: Oil revenues: Major part of GCC government income Oil revenues remain the largest component of government income in the region, making fiscal positions highly sensitive to global oil price fluctuations. To mitigate risk, GCC countries adopt a conservative methodology when calculating break-even oil prices in their budget frameworks, aiming to buffer against volatility in the international energy markets. To bridge the fiscal gap, GCC countries plan to rely on a mix of financial reserves and both domestic and international borrowing
