Category: Commerce

MIL-OSI Canada: Financial Literacy Month launch event

Source: Government of Canada News

Ottawa, Ontario 

On Monday, November 4, the Financial Consumer Agency of Canada (FCAC) will launch the 14th annual Financial Literacy Month during a virtual event open to media. The theme for this year’s Financial Literacy Month is “Talk Money”.

The launch event will bring together people and organizations that share a commitment to advancing financial literacy. Guest speakers include Olympic gold medalist Bruny Surin and Sara Weller, Chair of the U.K.’s Money and Pensions Service, who will share highlights from the U.K.’s highly successful “Talk Money Week” campaigns.

This Financial Literacy Month, FCAC will lead a Canada-wide campaign to break the taboo against talking about money. Throughout November, FCAC and its Financial Literacy Month partners will be encouraging Canadians to ask questions and share their financial experiences with family and friends.

Date:
Monday, November 4, 2024

Time: 
1:15 to 2:30 p.m. ET

Location:

Virtual participation

Registration:

Participants can register at Registration – Launch of Financial Literacy Month. Media are asked to register with FCAC Media Relations at media@fcac-acfc.gc.ca prior to the event. Connection details will be provided by e-mail in advance of the event.

MIL OSI Canada News –

January 25, 2025
MIL-OSI China: Preparation work for CIIE nears completion: ministry

Source: People’s Republic of China – State Council News

BEIJING, Oct. 31 — Preparations are nearly complete for the seventh China International Import Expo (CIIE), set for November 5-10 in Shanghai, the Ministry of Commerce said on Thursday.

Ministry spokesperson He Yadong said at a press conference that exhibits from over 2,700 participating companies have entered the exhibition halls, while those from more than 700 companies are still in transit and will arrive by Nov. 2.

The spokesperson said foreign bank cards will be accepted for catering payments at the CIIE. The expo will feature a 5,000-square-meter catering zone and offer food delivery services to all booths.

The seventh CIIE has attracted participants from 152 countries, regions and international organizations, and achieved a new record with 297 Fortune Global 500 companies and industry leaders set to attend.

Since its first edition in 2018, the expo has become an important showcase, spotlighting China’s new development paradigm, a platform for high-standard opening up, and an opportunity for the whole world.

MIL OSI China News –

January 25, 2025

MIL-OSI: Cipher Mining Provides Third Quarter 2024 Business Update

Source: GlobeNewswire (MIL-OSI)

Completed acquisition of Barber Lake data center site, which includes 250 acres of land in West Texas, a newly constructed high-to-mid voltage substation, approvals for 300 MW, and agreements necessary to participate in the ERCOT market

Completed acquisition of Reveille data center site, which includes approvals for 70 MW and potential to expand to 200 MW, with energization targeted for 2027

Signed option agreements to purchase or lease three sites in Texas with targeted power capacity of 500 MW each, suitable for HPC or bitcoin mining

Third Quarter 2024 Net Loss of $87m, and Adjusted Loss of $3m

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced results for its third quarter ended September 30, 2024, with an update on its operations and business strategy.

“We had a very busy third quarter, especially on the corporate and business development side,” said Tyler Page, CEO. “We were delighted to close our acquisition of the Barber Lake site, which has 300 MW immediately available for energization, and more recently, we also closed on our acquisition of the Reveille site, which is approved for 70 MW and has potential to scale to 200 MW. Looking to the future, we also created a pathway to become one of the largest data center developers in the world by finalizing the purchase of options to acquire three new sites with a total cumulative power capacity of up to 1.5 GW. Cipher’s active portfolio and options for development now total 2.5 GW across 10 sites.”

“We have made great progress in our discussions with hyperscalers in recent weeks as we seek our first HPC tenants while also continuing to build-out our bitcoin operations with the upgrade of our miner fleet at Odessa. Our operations and construction teams have extensive experience building tier 3 data centers, and we look forward to leveraging their broad skill sets as we expand our scope to bring on our first HPC tenants in the future.”

“Despite the headwind of record low hashprices for the bitcoin mining industry in the third quarter, our team delivered another set of solid results. The value of our Odessa power purchase agreement took a significant markdown given the passage of time and the drop in forward market prices for electricity, which contributed to the headline net loss this quarter. On an adjusted basis, our adjusted loss was nearly flat quarter-over-quarter, which we see as a testament to our low-cost unit economics given the known challenges presented to the entire industry in the first full quarter after the bitcoin halving. With our fleet upgrade at Odessa in the fourth quarter, we will be powering an extremely efficient fleet of rigs with industry-low costs for electricity, so we should be well-positioned for brighter bitcoin mining conditions going forward,” said Mr. Page.

Finance and Operations Highlights

Completed acquisition of 300 MW Barber Lake data center site
Completed acquisition of 70 MW Reveille data center site, which may be expanded to 200 MW and is well-suited for both HPC or bitcoin mining data centers
Signed options to acquire up to 1.5 GW of new sites in Texas that are also suitable for both HPC or bitcoin mining data centers
Upgrade of Odessa site bringing total self-mining hashrate to ~13.5 EH/s remains on track for Q4 2024
Construction of the 300 MW data center at Black Pearl progressing well, with expected energization in Q2 2025
Q3 2024 net loss of $87 million, or $0.26 per diluted share, and adjusted loss of $3 million, or $0.01 per diluted share

Business Update Call and Webcast

The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about our beliefs and expectations regarding our future results of operations and financial position, planned business model and strategy, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of our business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in the Company’s other filings with the SEC, including without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

This press release includes supplemental financial measures, including Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case , which exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability. These supplemental financial measures are not a measurement of financial performance under accounting principles generally accepted in the United Stated (“GAAP”) and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe the use of these non-GAAP financial measures can also facilitate comparison of our operating results to those of our competitors.

Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from the non-GAAP financial measures, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers and directors. Similarly, we expect that depreciation and amortization will continue to be an expense over the term of the useful life of the related assets. Our non-GAAP financial measures are not meant to be considered in isolation and should be read only in conjunction with our financial statements prepared in accordance with GAAP. We rely primarily on such financial statements to understand, manage and evaluate our business performance and use the non-GAAP financial measures only supplementally.

Contacts:
Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining
josh.kane@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com


CIPHER MINING INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except for share and per share amounts) (unaudited)

	September 30, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	25,342		$	86,105
Accounts receivable		226			622
Receivables, related party		59			245
Prepaid expenses and other current assets		3,488			3,670
Bitcoin		95,459			32,978
Derivative asset		27,185			31,878
Total current assets		151,759			155,498
Restricted cash		14,392			–
Property and equipment, net		310,699			243,815
Deposits on equipment		144,573			30,812
Intangible assets, net		25,742			8,109
Investment in equity investees		54,973			35,258
Derivative asset		47,225			61,713
Operating lease right-of-use asset		10,564			7,077
Security deposits		15,301			23,855
Other noncurrent assets		210			–
Total assets	$	775,438		$	566,137
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	13,154		$	4,980
Accounts payable, related party		–			1,554
Accrued expenses and other current liabilities		40,764			22,439
Finance lease liability, current portion		3,695			3,404
Operating lease liability, current portion		1,479			1,166
Warrant liability		–			250
Total current liabilities		59,092			33,793
Asset retirement obligation		19,810			18,394
Finance lease liability		8,319			11,128
Operating lease liability		9,662			6,280
Deferred tax liability		6,564			5,206
Total liabilities		103,447			74,801
Commitments and contingencies (Note 13)
Stockholders’ equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of September 30, 2024, and December 31, 2023		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized, 355,771,238 and 296,276,536 shares issued as of September 30, 2024 and December 31, 2023, respectively, and 347,800,186 and 290,957,862 shares outstanding as of September 30, 2024, and December 31, 2023, respectively		356			296
Additional paid-in capital		870,565			627,822
Accumulated deficit		(198,922	)		(136,777	)
Treasury stock, at par, 7,971,052 and 5,318,674 shares at September 30, 2024 and December 31, 2023, respectively		(8	)		(5	)
Total stockholders’ equity		671,991			491,336
Total liabilities and stockholders’ equity	$	775,438		$	566,137


CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for share and per share amounts) (unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Revenue – bitcoin mining	$	24,102		$	30,304		$	109,047		$	83,423
Costs and operating expenses (income)
Cost of revenue		15,063			13,008			44,164			37,017
Compensation and benefits		14,738			17,071			44,058			41,676
General and administrative		8,919			6,827			23,362			20,977
Depreciation and amortization		28,636			16,217			66,131			42,284
Change in fair value of derivative asset		48,520			(4,744	)		19,181			(13,294	)
Power sales		(1,444	)		(2,720	)		(3,726	)		(8,469	)
Equity in (income) losses of equity investees		(847	)		1,998			(1,008	)		4,179
Losses (gains) on fair value of bitcoin		1,911			1,848			(22,336	)		(3,276	)
Other gains		–			(95	)		–			(2,355	)
Total costs and operating expenses		115,496			49,410			169,826			118,739
Operating loss		(91,394	)		(19,106	)		(60,779	)		(35,316	)
Other income (expense)
Interest income		1,188			11			3,027			112
Interest expense		(346	)		(627	)		(1,118	)		(1,513	)
Change in fair value of warrant liability		–			10			250			(49	)
Other expense		(4	)		(6	)		(1,235	)		(18	)
Total other income (expense)		838			(612	)		924			(1,468	)
Loss before taxes		(90,556	)		(19,718	)		(59,855	)		(36,784	)
Current income tax expense		(211	)		(95	)		(932	)		(143	)
Deferred income tax benefit (expense)		4,013			1,192			(1,358	)		555
Total income tax benefit (expense)		3,802			1,097			(2,290	)		412
Net loss	$	(86,754	)	$	(18,621	)	$	(62,145	)	$	(36,372	)
Loss per share – basic and diluted	$	(0.26	)	$	(0.07	)	$	(0.20	)	$	(0.15	)
Weighted average shares outstanding – basic		332,680,037			251,789,350			314,820,110			249,858,033
Weighted average shares outstanding – diluted		332,680,037			251,789,350			314,820,110			249,858,033


CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

	Nine Months Ended September 30,
		2024			2023
Cash flows from operating activities
Net loss	$	(62,145	)	$	(36,372	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		65,661			42,284
Amortization of intangible assets		470			–
Amortization of operating right-of-use asset		888			688
Share-based compensation		31,865			28,687
Equity in losses (gains) of equity investees		(1,008	)		4,179
Non-cash lease expense		429			1,477
Other		(1,235	)		–
Deferred income taxes		1,358			(555	)
Bitcoin received as payment for services		(109,443	)		(83,161	)
Change in fair value of derivative asset		19,181			(13,294	)
Change in fair value of warrant liability		(250	)		49
Gains on fair value of bitcoin		(22,336	)		(3,276	)
Changes in assets and liabilities:
Accounts receivable		396			(262	)
Receivables, related party		186			(958	)
Prepaid expenses and other current assets		182			3,238
Security deposits		16,851			144
Other non-current assets		(210	)		–
Accounts payable		565			2,366
Accounts payable, related party		–			(1,529	)
Accrued expenses and other current liabilities		62			10,732
Lease liabilities		–			(762	)
Net cash used in operating activities		(58,533	)		(46,325	)
Cash flows from investing activities
Proceeds from sale of bitcoin		79,786			78,729
Deposits on equipment		(135,263	)		(4,533	)
Purchases of property and equipment		(92,373	)		(32,980	)
Purchases and development of software		(1,059	)		–
Purchase of strategic contracts		(17,044	)		–
Capital distributions from equity investees		–			3,807
Investment in equity investees		(29,194	)		(3,545	)
Prepayments on financing lease		–			(3,676	)
Net cash (used in) provided by investing activities		(195,147	)		37,802
Cash flows from financing activities
Proceeds from the issuance of common stock		225,181			11,644
Offering costs paid for the issuance of common stock		(3,487	)		(298	)
Repurchase of common shares to pay employee withholding taxes		(10,760	)		(3,224	)
Principal payments on financing lease		(3,625	)		(8,184	)
Net cash provided by (used in) financing activities		207,309			(62	)
Net decrease in cash, cash equivalents, and restricted cash		(46,371	)		(8,585	)
Cash, cash equivalents, and restricted cash, beginning of the period		86,105			11,927
Cash and cash equivalents, and restricted cash, end of the period	$	39,734		$	3,342

	Nine Months Ended September 30,
		2024		2023
Supplemental disclosure of noncash investing and financing activities
Reclassification of deposits on equipment to property and equipment	$	21,502	$	74,186
Property and equipment purchases in accounts payable and accrued expenses	$	17,422	$	–
Bitcoin received from equity investees	$	10,487	$	317
Settlement of related party payable related to master services and supply agreement	$	1,554	$	–
Right-of-use asset obtained in exchange for finance lease liability	$	4,375	$	14,212
Sales tax accrual on machine purchases	$	1,388	$	1,837
Equity method investment acquired for non-cash consideration	$	–	$	1,926
Finance lease cost in accrued expenses	$	–	$	2,060

The following table provides a reconciliation of Cash and cash equivalents together with Restricted cash as reported within the Condensed Consolidated Balance Sheets to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.


	Nine Months Ended September 30,
		2024		2023
Cash and cash equivalents	$	25,342	$	3,342
Restricted cash	$	14,392	$	–
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	39,734	$	3,342

Non-GAAP Financial Measures

The following are reconciliations of our Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case excluding the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability, to the most directly comparable GAAP measures for the periods indicated (in thousands, except for per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Reconciliation of Adjusted Earnings:
Net loss	$	(86,754	)	$	(18,621	)	$	(62,145	)	$	(36,372	)
Change in fair value of derivative asset		48,520			(4,744	)		19,181			(13,294	)
Share-based compensation expense		10,211			10,699			31,865			17,988
Depreciation and amortization		28,636			16,217			66,131			42,284
Deferred income tax expense		(4,013	)		(1,192	)		1,358			(555	)
Other gains – nonrecurring		–			(95	)		–			(2,355	)
Change in fair value of warrant liability		–			(10	)		(250	)		49
Adjusted (loss) earnings	$	(3,400	)	$	2,254		$	56,140		$	7,745


Reconciliation of Adjusted Earnings per share – diluted:
Net loss per share – diluted	$	(0.26	)	$	(0.07	)	$	(0.20	)	$	(0.15	)
Change in fair value of derivative asset per diluted share		0.14			(0.02	)		0.07			(0.05	)
Share-based compensation expense per diluted share		0.03			0.04			0.10			0.07
Depreciation and amortization per diluted share		0.09			0.06			0.21			0.17
Deferred income tax expense per diluted share		(0.01	)		—			—			—
Other gains – nonrecurring per diluted share		—			—			—			(0.01	)
Change in fair value of warrant liability per diluted share		—			—			—			—
Adjusted (loss) earnings per diluted share	$	(0.01	)	$	0.01		$	0.18		$	0.03

The MIL Network –

January 25, 2025

MIL-OSI: Allegro MicroSystems Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

MANCHESTER, N.H., Oct. 31, 2024 (GLOBE NEWSWIRE) — Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its second quarter ended September 27, 2024.

“We delivered results in-line with our commitments. Second quarter sales were $187 million, with sequential growth in both Automotive and Industrial and Other end markets. Non-GAAP EPS was $0.08, at the high end of our outlook,” said Vineet Nargolwala, President and CEO of Allegro. “We are encouraged by the continued demand for our differentiated solutions and the progress made by our customers and partners to rebalance their inventories. We continue to invest for growth to extend our market leadership. The accelerating pace of our new product introductions, as evidenced by our latest product releases, sets the stage for significant growth momentum in the near future.”

Second Quarter Financial Highlights:

In thousands, except per share data	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net Sales
Automotive	$	141,893		$	131,184		$	197,321		$	273,077		$	382,751
Industrial and other		45,498			35,735			78,188			81,233			171,051
Total net sales	$	187,391		$	166,919		$	275,509		$	354,310		$	553,802
GAAP Financial Measures
Gross margin %		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%
Operating margin %		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%
Diluted EPS	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65
Non-GAAP Financial Measures
Gross margin %		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%
Operating margin %		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%
Diluted EPS	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

Business Outlook

For the third quarter of fiscal year 2025 ending December 27, 2024, the Company expects net sales to be in the range of $170 million to $180 million. This outlook comprehends continued progress toward vehicle electrification and ongoing inventory rebalancing as reflected in the latest third-party estimates, as well as typical December quarter seasonality. The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 49% and 51%,

The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and

Diluted Earnings per Share are expected to be between $0.04 and $0.08.

Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, October 31, 2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholders has substantial control over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited)

	Three-Month Period Ended					Six-Month Period Ended
	September 27, 2024			September 29, 2023		September 27, 2024			September 29, 2023
Net sales	$	187,391		$	275,509	$	354,310		$	553,802
Cost of goods sold		101,729			116,006		193,877			236,349
Gross profit		85,662			159,503		160,433			317,453
Operating expenses:
Research and development		43,510			43,428		88,714			86,403
Selling, general and administrative		38,085			43,160		78,282			87,389
Total operating expenses		81,595			86,588		166,996			173,792
Operating income (loss)		4,067			72,915		(6,563	)		143,661
Interest and other (expense) income		(12,398	)		156		(18,341	)		(2,486	)
Loss on change in fair value of forward repurchase contract		(34,752	)		—		(34,752	)		—
(Loss) income before income taxes		(43,083	)		73,071		(59,656	)		141,175
Income tax (benefit) provision		(9,470	)		7,400		(8,430	)		14,615
Net (loss) income		(33,613	)		65,671		(51,226	)		126,560
Net income attributable to non-controlling interests		62			54		124			93
Net (loss) income attributable to Allegro MicroSystems, Inc.	$	(33,675	)	$	65,617	$	(51,350	)	$	126,467
Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:
Basic	$	(0.18	)	$	0.34	$	(0.27	)	$	0.66
Diluted	$	(0.18	)	$	0.34	$	(0.27	)	$	0.65
Weighted average shares outstanding:
Basic		189,182,850			192,431,094		191,324,281			192,214,210
Diluted		189,182,850			195,100,855		191,324,281			195,055,495

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

	Three-Month Period Ended				Change						Six-Month Period Ended				Change
	September 27, 2024		September 29, 2023		Amount			%			September 27, 2024		September 29, 2023		Amount			%
	(Dollars in thousands)										(Dollars in thousands)
Automotive	$	141,893	$	197,321	$	(55,428	)		(28	)%	$	273,077	$	382,751	$	(109,674	)		(29	)%
Industrial and other		45,498		78,188		(32,690	)		(42	)%		81,233		171,051		(89,818	)		(53	)%
Total net sales	$	187,391	$	275,509	$	(88,118	)		(32	)%	$	354,310	$	553,802	$	(199,492	)		(36	)%


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	September 27, 2024			March 29, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	188,751		$	212,143
Restricted cash		10,287			10,018
Trade accounts receivable, net		76,985			118,508
Inventories		176,648			162,302
Prepaid income taxes		38,636			31,908
Prepaid expenses and other current assets		32,253			33,584
Current portion of related party notes receivable		—			3,750
Total current assets		523,560			572,213
Property, plant and equipment, net		325,051			321,175
Deferred income tax assets		61,839			54,496
Goodwill		203,151			202,425
Intangible assets, net		266,753			276,854
Related party notes receivable, less current portion		—			4,688
Equity investment in related party		30,186			26,727
Other assets		81,577			72,025
Total assets	$	1,492,117		$	1,530,603
Liabilities, Non-Controlling Interests and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	50,245		$	35,964
Amounts due to related party		5,546			1,626
Accrued expenses and other current liabilities		62,742			76,389
Current portion of long-term debt		5,475			3,929
Total current liabilities		124,008			117,908
Long-term debt		396,056			249,611
Other long-term liabilities		33,345			31,368
Total liabilities		553,409			398,887
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—			—
Common stock		1,840			1,932
Additional paid-in capital		993,988			694,332
(Accumulated deficit) retained earnings		(31,931	)		463,012
Accumulated other comprehensive loss		(26,583	)		(28,841	)
Equity attributable to Allegro MicroSystems, Inc.		937,314			1,130,435
Non-controlling interests		1,394			1,281
Total stockholders’ equity		938,708			1,131,716
Total liabilities, non-controlling interests and stockholders’ equity	$	1,492,117		$	1,530,603


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)

	Three-Month Period Ended						Six-Month Period Ended
	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Cash flows from operating activities:
Net (loss) income	$	(33,613	)	$	65,671		$	(51,226	)	$	126,560
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		15,997			15,080			32,455			29,353
Amortization of deferred financing costs		306			73			1,087			107
Deferred income taxes		(2,796	)		(9,772	)		(7,795	)		(18,134	)
Stock-based compensation		11,545			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			34,752			—
Provisions for inventory and expected credit losses		2,111			4,239			4,488			9,422
Change in fair value of marketable securities		—			(72	)		—			3,579
Other non-cash reconciling items		6,563			43			6,577			43
Changes in operating assets and liabilities:
Trade accounts receivable		(13,717	)		2,676			41,417			(7,645	)
Inventories		(2,845	)		(3,274	)		(18,831	)		(31,221	)
Prepaid expenses and other assets		(14,093	)		(6,253	)		(15,808	)		(16,453	)
Trade accounts payable		13,470			(15,736	)		13,670			2,695
Due to and from related parties		695			(3,990	)		4,132			6,112
Accrued expenses and other current and long-term liabilities		(2,828	)		(12,832	)		(16,838	)		(29,944	)
Net cash provided by operating activities		15,547			46,730			49,743			96,393
Cash flows from investing activities:
Purchases of property, plant and equipment		(9,972	)		(31,191	)		(20,949	)		(76,101	)
Sales of marketable securities		—			6,204			—			16,175
Net cash used in investing activities		(9,972	)		(24,987	)		(20,949	)		(59,926	)
Cash flows from financing activities:
Loan made to affiliate		—			(4,000	)		—			(4,000	)
Net proceeds from Refinanced 2023 Term Loan Facility		193,483			—			193,483			—
Payment of borrowings under 2023 Term Loan Facility		—			—			(50,000	)		—
Finance lease payments		(240	)		—			(385	)		—
Receipts on related party notes receivable		937			937			1,875			1,875
Payments for taxes related to net share settlement of equity awards		(1,126	)		(1,669	)		(12,297	)		(14,091	)
Proceeds from issuance of common stock under employee stock purchase plan		1,987			—			1,987			1,899
Repurchases of common stock		(853,805	)		—			(853,805	)		—
Net proceeds from issuance of common stock		665,850			—			665,850			—
Payment of debt issuance costs		—			—			—			(1,450	)
Net cash provided by (used in) financing activities		7,086			(4,732	)		(53,292	)		(15,767	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		2,200			(901	)		1,375			(974	)
Net increase (decrease) in cash and cash equivalents and restricted cash		14,861			16,110			(23,123	)		19,726
Cash and cash equivalents and restricted cash at beginning of period		184,177			362,321			222,161			358,705
Cash and cash equivalents and restricted cash at end of period:	$	199,038		$	378,431		$	199,038		$	378,431

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP Financial Measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP Financial Measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs.

Non-GAAP Income Tax Provision

In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.


*Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Gross Profit	$	85,662		$	74,771		$	159,503		$	160,433		$	317,453
GAAP Gross Margin (% of net sales)		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%

Non-GAAP adjustments
Transaction-related costs		10			(1	)		—			9			—
Purchased intangible amortization		4,875			4,875			273			9,750			675
Restructuring costs		16			1,200			—			1,216			—
Stock-based compensation		817			561			946			1,378			3,552
Total Non-GAAP Adjustments	$	5,718		$	6,635		$	1,219		$	12,353		$	4,227

Non-GAAP Gross Profit	$	91,380		$	81,406		$	160,722		$	172,786		$	321,680
Non-GAAP Gross Margin (% of net sales)		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%


*Reconciliation of Non-GAAP Operating Expenses*

	Three-Month Period Ended							Six-Month Period Ended
	September 27, 2024			June 28, 2024		September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)							(Dollars in thousands)
GAAP Operating Expenses	$	81,595		$	85,401	$	86,588	$	166,996		$	173,792

Research and Development Expenses
GAAP Research and Development Expenses		43,510			45,204		43,428		88,714			86,403
Non-GAAP adjustments
Transaction-related costs		206			1,029		2		1,235			9
Restructuring costs		260			169		—		429			—
Stock-based compensation		3,523			3,735		3,602		7,258			6,470
Other costs⁽¹⁾		3			—		—		3			—
Non-GAAP Research and Development Expenses		39,518			40,271		39,824		79,789			79,924

Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses		38,085			40,197		43,160		78,282			87,389
Non-GAAP adjustments
Transaction-related costs		275			814		1,804		1,089			4,876
Purchased intangible amortization		535			535		357		1,070			715
Restructuring costs		2,046			1,045		—		3,091			—
Stock-based compensation		7,205			5,822		6,329		13,027			11,897
Other costs⁽¹⁾		(1,820	)		811		100		(1,009	)		100
Non-GAAP Selling, General and Administrative Expenses		29,844			31,170		34,570		61,014			69,801

Total Non-GAAP Adjustments		12,233			13,960		12,194		26,193			24,067

Non-GAAP Operating Expenses	$	69,362		$	71,441	$	74,394	$	140,803		$	149,725

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Income (Loss)	$	4,067		$	(10,630	)	$	72,915		$	(6,563	)	$	143,661
GAAP Operating Margin (% of net sales)		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%

Transaction-related costs		491			1,842			1,806			2,333			4,885
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,322			2,414			—			4,736			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Other costs⁽¹⁾		(1,817	)		811			100			(1,006	)		100
Total Non-GAAP Adjustments	$	17,951		$	20,595		$	13,413		$	38,546		$	28,294

Non-GAAP Operating Income	$	22,018		$	9,965		$	86,328		$	31,983		$	171,955
Non-GAAP Operating Margin (% of net sales)		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of EBITDA and Adjusted EBITDA*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income	$	(33,613	)	$	(17,613	)	$	65,671		$	(51,226	)	$	126,560
GAAP Net (Loss) Income Margin (% of net sales)		(17.9	)%		(10.6	)%		23.8	%		(14.5	)%		22.9	%

Interest expense		10,353			5,377			758			15,730			1,527
Interest income		(420	)		(494	)		(850	)		(914	)		(1,693	)
Income tax (benefit) provision		(9,470	)		1,040			7,400			(8,430	)		14,615
Depreciation & amortization		15,997			16,458			15,145			32,455			29,418
EBITDA	$	(17,153	)	$	4,768		$	88,124		$	(12,385	)	$	170,427

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽¹⁾		(2,195	)		2,807			1,301			612			5,890
Adjusted EBITDA	$	32,311		$	21,949		$	102,108		$	54,260		$	203,121
Adjusted EBITDA Margin (% of net sales)		17.2	%		13.1	%		37.1	%		15.3	%		36.7	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Profit before Tax*

	Three-Month Period Ended								Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)								(Dollars in thousands)
GAAP (Loss) Income before Income Taxes	$	(43,083	)	$	(16,573	)	$	73,071	$	(59,656	)	$	141,175

Transaction-related costs		3,295			1,842			1,806		5,137			4,885
Transaction-related interest		141			709			—		850			—
Purchased intangible amortization		5,410			5,410			630		10,820			1,390
Restructuring costs		2,067			2,414			—		4,481			—
Stock-based compensation		11,545			10,118			10,877		21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—		34,752			—
Other costs⁽¹⁾		1,428			2,807			1,301		4,235			5,890
Total Non-GAAP Adjustments	$	58,638		$	23,300		$	14,614	$	81,938		$	34,084

Non-GAAP Profit before Tax	$	15,555		$	6,727		$	87,685	$	22,282		$	175,259

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Income Tax (Benefit) Provision	$	(9,470	)	$	1,040		$	7,400		$	(8,430	)	$	14,615
GAAP effective tax rate		22.0	%		(6.3	)%		10.1	%		14.1	%		10.4	%

Tax effect of adjustments to GAAP results		10,071			(395	)		2,554			9,676			6,380

Non-GAAP Income Tax Provision	$	601		$	645		$	9,954		$	1,246		$	20,995
Non-GAAP effective tax rate		3.9	%		9.6	%		11.4	%		5.6	%		12.0	%


*Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.⁽¹⁾	$	(33,675	)	$	(17,675	)	$	65,617		$	(51,350	)	$	126,467
GAAP Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
GAAP Diluted weighted average common shares		189,182,850			193,465,708			195,100,855			191,324,281			195,055,495
GAAP Basic (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.66
GAAP Diluted (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Transaction-related interest		141			709			—			850			—
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽²⁾		1,428			2,807			1,301			4,235			5,890
Total Non-GAAP Adjustments		58,638			23,300			14,614			81,938			34,084
Tax effect of adjustments to GAAP results⁽³⁾		(10,071	)		395			(2,554	)		(9,676	)		(6,380	)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.	$	14,892		$	6,020		$	77,677		$	20,912		$	154,171
Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
Diluted weighted average common shares		189,710,595			194,705,716			195,100,855			192,154,185			195,055,495
Non-GAAP Basic Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.80
Non-GAAP Diluted Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

(1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual Non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.


*Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Cash Flow	$	15,547		$	34,196		$	46,730		$	49,743		$	96,393
GAAP Operating Cash Flow (% of net sales)		8.3	%		20.5	%		17.0	%		14.0	%		17.4	%
Non-GAAP adjustments
Purchases of property, plant and equipment		(9,972	)		(10,977	)		(31,191	)		(20,949	)		(76,101	)

Non-GAAP Free Cash Flow	$	5,575		$	23,219		$	15,539		$	28,794		$	20,292
Non-GAAP Free Cash Flow (% of net sales)		3.0	%		13.9	%		5.6	%		8.1	%		3.7	%

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com

The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: Ten-year ban for director who promoted tax avoidance scheme costing HMRC more than £2.5m
Source: United Kingdom – Executive Government & Departments

Director disqualified for operating tax avoidance scheme without notifying authorities
Alastair Lunt was the director of Peak PAYE Ltd which operated a tax avoidance scheme which resulted in more than £2.5 million of unpaid tax

The scheme, which had around 250 users, promised to help its customers avoid paying income tax and National Insurance

Lunt has been disqualified as a company director until September 2034

A director who promoted a tax avoidance scheme which deprived HM Revenue and Customs (HMRC) of more than £2.5 million in unpaid tax has been disqualified.

Alastair Lunt was the director of Peak PAYE Ltd when it caused losses of at least £2.64 million to HMRC between October 2020 and February 2022.

Lunt had failed to notify HMRC of the scheme, which had around 250 users, as he was required to by law.

The 36-year-old, who now lives in southern California, was banned as a company director for 10 years.

Claire Entwistle, Assistant Director of Operations at the Insolvency Service, said:

Tax avoidance schemes are marketed as ways for people to pay less tax but do not always work as advertised, landing customers instead with a big tax bill.

Our public services also rely on everyone paying their taxes and schemes such as this deprive the UK of the revenue it needs to invest in our hospitals, schools and roads.

Peak PAYE’s director, Alastair Lunt, was required to notify HMRC of the scheme. He failed to do so, causing substantial losses to the public purse.

We will continue to work closely with our partners at HMRC to disrupt and clamp down on scheme promoters such as Peak PAYE.

Peak PAYE operated its tax avoidance scheme by paying contractors the National Minimum Wage, and then paying the remainder of their wages disguised as a financial option or as a salary advance.

The company, which had a registered office in Manchester, promised users they could avoid paying National Insurance and income tax as a result.

Promoters of tax avoidance schemes are required to inform HMRC. Peak PAYE did not do this between October 2020 and February 2022.

The company was ordered by HMRC to stop running the scheme in November 2022 and entered liquidation the following month.

Lunt moved to his current address of 16th Place, Costa Mesa, Orange County after his involvement with Peak PAYE.

The Secretary of State for Business and Trade accepted a disqualification undertaking from Lunt, and his ban started on Monday 30 September.

It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

Alastair Lunt is of 16th Place, Costa Mesa, Orange County, California. His date of birth is 23 March 1988

Peak PAYE Ltd (company number 11762908)

Individuals subject to a disqualification order or undertaking are bound by a range of restrictions

Further information about the work of the Insolvency Service, and how to complain about financial misconduct

Information about the published tax avoidance schemes and promoters

Information about HMRC’s ‘Don’t Get Caught Out’ campaign and the support available for customers who believe they are involved in a tax avoidance scheme

Visit GOV.UK to report tax avoidance schemes and those offering you the schemes

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Published 31 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI United Kingdom: Let there be lights

Source: City of Sunderland

Sunderland’s countdown to Christmas is about to get underway.

Preparations for the festive season kick off with the city’s Christmas Switch On in Keel Square on Thursday 21 November.

A firm favourite in Sunderland’s events calendar, the switch on promises to be a wonderful family event as the city comes together to start the celebrations and officially kick off the festive season.

The entertainment gets underway from 5.30pm onwards with music to get everyone in the Christmas spirit and cartoon characters doing walkabouts, before Hits Radio’s breakfast show hosts Steve and Karen take to the stage to get the party started from 6pm onwards with a host of festive hits and sparkling entertainment.

There’ll be competitions aplenty, including the chance to win tickets for this year’s Jack and the Beanstalk panto at the Sunderland Empire and Disney on Ice at the Utilita Arena in Newcastle.

Everyone’s favourite ogre, Shrek will also be putting in a special appearance, followed by panto stars from Jack and the Beanstalk before Santa, the main man himself, takes to the stage to join in the fun and games.

The Mayor of Sunderland Councillor Allison Chisnall will then be joined by Steve and Karen, SAFC players and panto stars for the grand switch on at 7pm.

Councillor Chisnall, said: “Christmas is always such a special time of year. The annual Christmas Switch On marks start of the city’s countdown to the big day and it’s something that families from across Sunderland and beyond really look forward to each year.

“We’ve got a fantastic programme of entertainment lined up for this year’s event and what better way to start the festive season.”

To coincide with the Sunderland Christmas Light Switch On, The Fire Station is also launching FireSide, its new, free-to-enter festive marquee experience in front of The Fire Station building. Offering a bar, food and cosy seating areas, this opens at 4pm on Thursday 21 November and runs through December. Visitors coming along to the switch on might also want to take advantage of some of the other fantastic restaurants and bars around Keel Square.

The launch of Christmas has been organised by Sunderland City Council and supported by Sunderland BID and Hits Radio (formerly Metro Radio)

Sharon Appleby, Chief Executive of Sunderland Business Improvement District (BID), said: “The Christmas light switch on signals the start of a really important period for businesses in the city centre.

“There are so many great venues, wonderful retailers and fabulous events in the city centre that can be visited and enjoyed. We hope to see lots of people join us at the light switch on and then to come back and do their shopping and enjoy the season in the city.”

To find out more about the Christmas Switch on, visit: https://www.mysunderland.co.uk/christmaslights2024

And to find out what else is on in Sunderland during the festive season, visit: https://mysunderland.co.uk/events

For information on parking, visit www.sunderland.gov.uk/parking

For information on the Sunderland Empire panto, visit: www.atgtickets.com/sunderland

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI United Kingdom: Budget marks first step in plan to drive up opportunity and drive down poverty
Source: United Kingdom – Government Statements

Millions of people, including families, pensioners, carers and those struggling to find work are set to benefit from Autumn Budget reforms to boost work and tackle poverty.
Welfare safety net will be strengthened with a new Fair Repayment Rate, an increase to benefits and an extension of vital crisis support.

Carers will also see a boost to the amount they can earn whilst retaining their entitlement to Carer’s Allowance.

A £240 million package for the Get Britain Working White Paper will shift department’s focus from welfare to work.

The first steps in the Work and Pensions Secretary’s plan to drive up opportunity and drive down poverty across the UK were unveiled in the Government Budget yesterday (Wednesday 30 October).

As the department shifts its focus from welfare to work, a £240 million package will open up opportunities to millions of people left behind and denied the opportunity to get into work and get on at work.

These major changes will address spiralling economic inactivity and a record 2.8 million people locked out of work due to long term sickness and are part of the Government’s ambition to reach an 80% employment rate.

The Get Britain Working White Paper will develop:

A new jobs and careers service to help get more people into work, and get on in their work, by linking jobseekers with employers, with an increased focus on skills and careers;

Joined-up work, health and skills plans to tackle economic inactivity and boost employment, led by Mayors and local areas;

A new Youth Guarantee so that every young person is given the opportunity to earn or learn.

Those with caring responsibilities will able to earn more without losing government support, with the Carer’s Allowance earnings threshold boosted by £45 a week to £196, benefitting more than 60,000 carers by 2029/30. This is the biggest ever cash increase in the earnings threshold for Carer’s Allowance. This is alongside an independent review into Carer’s Allowance Overpayments led by Liz Sayce OBE.

As well as boosting pensions and benefits through annual uprating, a new Fair Repayment Rate will be introduced, reducing Universal Credit deductions. This will mean 1.2 million of the poorest households will benefit by an average of £420 a year.

£1 billion, including Barnett impact, will be invested to extend the Household Support Fund in England by a full year, on top of the six months already announced, and to maintain Discretionary Housing Payments in England and Wales. This will help struggling families and pensioners facing the greatest financial hardship.

Work and Pensions Secretary, Liz Kendall said:

We promised change, and that is what we will deliver.

For too long, millions of people have been denied opportunities to work and build a better life, and too many children are growing up in poverty, harming their life chances and our country’s future.

This Budget shows the first steps in our plan to drive up opportunity and drive down poverty in every corner of the country.

There is still much more to do, but this Budget has shown change has begun.

Measures announced today will also improve how the department detects and prevents fraud and error, so support is targeted where it is needed most and taxpayers know every pound is spent wisely. These changes are expected to save £7.6 billion by 2029/30.

The Secretary of State has also concluded her annual review of the State Pension and benefit rates, which will see:

A 4.1 percent increase to the basic and new State Pensions due to the Triple Lock commitment – meaning those on the full rate of the new State Pension will now see an increase of over £470 per year.

A 1.7 percent increase to Universal Credit and other working-age benefits – worth an average £12.50 per month for a family on Universal Credit.

Further Information

The Get Britain Working White Paper will be published in Autumn and will set out the government’s plans to reform employment support and tackle the root causes of record-high inactivity.

Welfare reforms announced at Autumn Budget include:

A new Fair Repayment Rate to reduce Universal Credit deductions from 25% to 15%.

A £240 million Get Britain Working package

An extension of the Household Support Fund

Maintaining Discretionary Housing Payments funding.

Raising the Carer’s Allowance earnings threshold by £45 a week

Uprating disability benefits and working age benefits including Universal Credit by 1.7% in line with the year to September 2024 Consumer Prices Index figure.

Uprating basic and new State Pensions and the standard minimum guarantee in Pension Credit by 4.1% in line with the average weekly earnings figure for the year to May to July 2024.

Improving fraud, error and debt detection and prevention.

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Published 31 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI Economics: New Lufthansa Allegris First Class takes off on November 9

Source: Lufthansa Group

The time has come: in a few days, Lufthansa Allegris First Class, the flagship of the new cabin on long-haul routes, will take off on a scheduled flight for the first time. The first destinations will be Bangalore on November 9 and Mumbai (both in India) a little later, on November 15, which will then be served alternately with the new First Class. Two individual suites and the globally unique Suite Plus in the A350-900 will then take off on a scheduled flight for the first time. After a technical introduction phase, Lufthansa will initially present the new, innovative product to its most loyal guests by invitation. As soon as more aircraft with the new First Class are part of the fleet, targeted upgrades by passengers and later targeted bookings will be possible step by step.

The furnishings in the First Class Suite set new standards: guests can heat or cool their almost one-meter-wide seats in the suite according to their personal needs. The separate suites with ceiling-high walls and lockable door, large table and wide seat, a huge screen and wireless over-ear headphones, set new standards in comfort and individuality in the highest class. A personal wardrobe in the suite provides ample storage space so that travelers can change comfortably and have all their personal items to hand. Individual lamps allow travelers to create their very own feel-good atmosphere. The Suite Plus also combines maximum comfort for individual guests with the unique option of traveling together with a travel partner in a suite.

Lufthansa receives APEX Innovation Award for research into VR headsets in in-flight entertainment

Lufthansa has received the award for the world’s best in-flight entertainment innovation 2024 from the Airline Passenger Experience Association (APEX). In collaboration with Meta and MSM.Digital, the airline has launched a ground-breaking in-flight entertainment initiative and is currently testing mixed reality technologies for guests. On all flights equipped with Allegris, guests in the Business Class Suite now have the opportunity to use the headsets and give feedback on what they particularly enjoyed. With the latest generation of state-of-the-art VR headsets, Lufthansa is the only airline in the world to exclusively offer content such as captivating cinema-style movies, engaging VR 360-degree travel podcasts, interactive games and soothing relaxation exercises.

MIL OSI Economics –

January 25, 2025
MIL-OSI United Kingdom: Autumn Budget 2024 speech

Source: United Kingdom – Executive Government & Departments

Autumn Budget 2024 speech as delivered by Chancellor Rachel Reeves.

Delivered on:

30 October 2024 (Transcript of the speech, exactly as it was delivered)

Madam Deputy Speaker…

[redacted political content]

This government was given a mandate.

To restore stability to our economy…

… and to begin a decade of national renewal.

To fix the foundations…

… and deliver change.

Through responsible leadership in the national interest.

That is our task.

And I know that we can achieve it.

My belief in Britain burns brighter than ever.

And the prize on offer is immense.

As my Right Honourable Friend the Prime Minister said on Monday – change must be felt.

More pounds in people’s pockets.

An NHS that is there when you need it.

An economy that is growing, creating wealth and opportunity for all…

… because that is the only way to improve living standards.

And the only way to drive economic growth…

… is to invest, invest, invest.

There are no shortcuts.

And to deliver that investment…

… we must restore economic stability…

[redacted political content]

INHERITANCE

[redacted political content]

… it is the first Budget in our country’s history to be delivered by a woman.

I am deeply proud to be Britain’s first ever female Chancellor of the Exchequer.

To girls and young women everywhere, I say:

Let there be no ceiling on your ambition, your hopes and your dreams.

And along with the pride that I feel standing here today…

… there is also a responsibility…

… to pass on a fairer society and a stronger economy to the next

generation of women.

[redacted political content]

A black hole in the public finances…

Public services on their knees….

A decade of low growth.

And the worst parliament on record for living standards.

Let me begin with the public finances.

In July, I exposed a £22bn black hole

[redacted political content]

The Treasury’s reserve, set aside for genuine emergencies…

… spent three times over…

… just three months into the financial year.

Today, on top of the detailed document that I have provided to the House in July…

… the government is publishing a line by line breakdown of the £22bn black hole that we inherited…

It shows hundreds of unfunded pressures on the public finances…

… this year, and into the future too.

The Office for Budget Responsibility have published their own review of the circumstances around the Spring Budget forecast.

They say that the previous government – and I quote – “did not provide the OBR with all the [available] information to them”…

… and – had they known about these “undisclosed spending pressures that have since come to light”…

… then their Spring Budget forecast for spending would have been, and I quote again: “materially different”.

Let me be clear: that means any comparison between today’s forecast and the OBR’s March forecast is false…

… because the party opposite hid the reality of their public spending plans.

Yet at the very same budget…

… they made another ten billion pounds worth of cuts to National Insurance.

[redacted political content]

That’s why today, I can confirm that we will implement in full…

… the 10 recommendations from the independent Office for Budget Responsibility’s review.

But, the country has inherited not just broken public finances…

… but broken public services too.

The British people can see and feel that in their everyday lives.

NHS waiting lists at record levels.

Children in portacabins as school roofs crumble.

Trains that do not arrive.

Rivers filled with polluted waste.

Prisons overflowing.

Crimes which are not investigated…

… and criminals who are not punished.

That is the country’s inheritance

Since 2021, there had been no detailed plans for departmental spending set out beyond this year.

And [redacted political content] plans relied on a baseline for spending this year which we now know was wrong…

… because it did not take into account the £22bn black hole.

The previous government also failed to budget for costs which they knew would materialise.

That includes funding for vital compensation schemes…

… for victims of two terrible injustices…

[redacted political content]

… the infected blood scandal…

… and the Post Office Horizon scandal.

The Leader of the Opposition rightly made an unequivocal apology for the injustice of the infected blood scandal on behalf of the British state…

… but he did not budget for the costs of compensation.

Today, for the very first time, we will provide specific funding to compensate those infected and those affected, in full…

… with £11.8bn in this budget.

And I am also today setting aside £1.8bn to compensate victims of the Post Office Horizon scandal…

… redress that is long overdue for the pain and injustice that they have suffered.

[redacted political content]

… and we will restore stability to our country again.

The scale and seriousness of the situation that we have inherited cannot be underestimated.

Together, the hole in our public finances this year, which recurs every year…

… the compensation schemes that they did not fund…

… and their failure to assess the scale of the challenges facing our public services…

… means this budget raises taxes by £40bn.

Any Chancellor standing here today would have to face this reality.

And any responsible Chancellor would take action.

That is why today, I am restoring stability to our public finances…

… and rebuilding our public services.

FISCAL RULES / OBR FORECASTS

Economy forecast/growth

As a former economist at the Bank of England, I know what it means to respect our economic institutions.

I want to put on record my thanks to the Governor of the Bank, Andrew Bailey…

… and to the independent Monetary Policy Committee.

Today, I can confirm that we will maintain the MPC’s target of two per cent inflation, as measured by the 12-month increase in the Consumer Prices Index.

I want to thank James Bowler, the Permanent Secretary to the Treasury, and my team of officials.

Madam Deputy Speaker, I would also like to thank my predecessors as Chancellor of the Exchequer…

… for their wise counsel as I have prepared for this Budget.

[redacted political content]

Finally, I want to thank Richard Hughes and his team at the Office for Budget Responsibility for their work in preparing today’s economic and fiscal outlook.

Let me now take the House through that forecast.

The cost of living crisis under the last government stretched household finances to their limit, with inflation hitting a peak of above 11%.

Today, the OBR say that CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2.0% in 2029.

Next, I move on to economic growth.

Today’s budget marks an end to short-termism.

So I am pleased, that for the first time, the OBR have published not only five year growth forecasts…

… but a detailed assessment of the growth impacts of our policies over the next decade, too…

… and the new Charter for Budget Responsibility, which I am publishing today, confirms that this will become a permanent feature of our framework.

The OBR forecast that real GDP growth will be 1.1% in 2024, 2.0% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028 and 1.6% in 2029.

And the OBR are clear: this Budget will permanently increase the supply capacity of the economy…

[redacted political content]

… boosting long-term growth.

Every Budget I deliver will be focused on our mission to grow the economy.

And underpinning that mission are the seven key pillars of our growth strategy…

… developed and delivered alongside business…

… all driven forward by our Financial Secretary to the Treasury.

First, and most important, is to restore economic stability. That is my focus today.

Second, increasing investment and building new infrastructure is vital for productivity, so we are catalysing £70bn of investment through our National Wealth Fund…

… and we are transforming our planning rules to get Britain building again.

Third, to ensure that all parts of the UK can realise their potential…

… we are working with the devolved governments…

… and partnering with our Mayors to develop local growth plans.

Fourth, to improve employment prospects and skills we are creating Skills England, delivering our plans to Make Work Pay and tackling economic inactivity.

Fifth, we are launching our long-term modern industrial strategy and expanding opportunities for our small and medium sized businesses to grow.

Sixth, to drive innovation we are protecting record funding for research and development to harness the full potential of the UK’s science base.

And finally, to maximise the growth benefits of our clean energy mission, we have confirmed key investments such as Carbon Capture and Storage to create jobs in our industrial heartlands.

Our approach is already having an impact.

Just two weeks ago – we delivered an International Investment Summit which saw businesses commit £63.5bn of investment into this country…

… creating nearly 40,000 jobs across the United Kingdom.

[redacted political content]

Economic growth will be our mission for the duration of this parliament.

Stability rule

Madam Deputy Speaker, in our manifesto, we set out the fiscal rules that would guide this government.

I am confirming those today…

Our stability rule…

And our investment rule…

The “stability rule” means that we will bring the current budget into balance…

… so that we do not borrow to fund day to day spending.

We will meet this rule in 2029-30, until that becomes the third year of the forecast.

From then on, we will balance the current budget in the third year of every budget, held annually each autumn.

That will provide a tougher constraint on day to day spending…

… so difficult decisions cannot be constantly delayed or deferred.

The OBR say that the current budget will be in deficit by £26.2bn in 2025-26 and £5.2bn in 2026-27…

… before moving into surplus of £10.9bn in 2027-28, £9.3bn in 2028-29 and £9.9bn in 2029-30…

… meeting our stability rule…

… two years early.

Monthly public sector finances data shows that government borrowing in the first six months of this year…

… was already running significantly higher than the OBR’s March forecast.

And so the OBR confirmed today, that borrowing in this financial year is now £127bn…

[redacted political content]

The increase in the net cash requirement in 24-25 is lower than the increase in borrowing, at £22.3bn higher than the spring forecast.

Because of the action that we are taking…

… borrowing falls from 4.5% of GDP this year to 2.1% of GDP by the end of the forecast.

Public sector net borrowing will be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-2930.

FIXING THE FOUNDATIONS

Spending

Madam Deputy Speaker, before I come to tax…

… it is vital that we are driving efficiency and reducing wasteful spending.

In July, to begin delivering, and dealing with our inheritance…

… I made £5.5bn of savings this year.

Today we are setting a 2% productivity, efficiency and savings target for all departments to meet next year…

… by using technology more effectively and joining up services across government

As set out in our manifesto, I will shortly be appointing our Covid Corruption Commissioner, they will lead our work to uncover those companies that used a national emergency to line their own pockets.

Because that money belongs in our public services. And taxpayers want that money back.

And I can confirm today that David Goldstone has been appointed as the Chair of the new Office for Value for Money…

… to help us realise the benefits from every pound of public spending.

Welfare

Today, I am also taking three steps to ensure that welfare spending is more sustainable.

First, we inherited [redacted political content] plans to reform the Work Capability Assessment.

We will deliver those savings…

…as part of our fundamental reforms to the health and disability benefits system that my Right Honourable Friend the Work and Pensions Secretary will bring forward.

Second, I can today announce a crackdown on fraud in our welfare system…

… often the work of criminal gangs.

We will expand DWP’s counter-fraud teams..

… using innovative new methods to prevent illegal activity…

… and provide new legal powers to crackdown on fraudsters…

… including direct access to bank accounts to recover debt.

This package saves £4.3bn a year by the end of the forecast.

Third, the government will shortly be publishing the “Get Britain Working” white paper…

… tackling the root causes of inactivity with an integrated approach across health, education and welfare.

… and we will provide £240m for 16 trailblazer projects…

… targeted at those who are economically inactive and most at risk of being out of education, employment or training…

… to get people into work and reduce the benefits bill.

Tax avoidance

Before a government could consider any change to a tax rate or threshold…

… it must ensure that people pay what they already owe.

So we will invest to modernise HMRC’s systems using the very best technology…

… and recruit additional HMRC compliance and debt staff.

We will clamp down on those umbrella companies who exploit workers…

… increase the interest rate on unpaid tax debt to ensure that people pay on time…

… and go after promoters of tax avoidance schemes.

These measures to reduce the tax gap raise £6.5bn by the end of the forecast…

… and I want to thank the Exchequer Secretary for his outstanding work on this agenda.

PROTECTING WORKING PEOPLE

Madam Deputy Speaker, I know that for working people up and down our country…

… family finances are stretched…

… and pay checks don’t go as far as they once did.

So today, I am taking steps to support people with the cost of living.

Cost of living

[redacted political content]

As promised in our manifesto, we asked the Low Pay Commission to take account of the cost of living for the first time.

I can confirm that we will accept the Low Pay Commission recommendation to increase the National Living Wage by 6.7% to £12.21 an hour…

… worth up to £1,400 a year for a full-time worker.

And for the first time, we will move towards a single adult rate…

… phased in over time…

… by initially increasing the National Minimum Wage for 18-20 year olds by 16.3% as recommended by the Low Pay Commission…

… taking it to £10 an hour.

[redacted political content]

Second, I have heard representations from colleagues across this house about the Carer’s Allowance…

… and the impact of the current policy on carers looking to increase the hours they work…

… including from the Honourable member for Shipley, the Honourable member for Scarborough and Whitby and the Rt Hon Member for Kingston and Surbiton, too.

Carer’s allowance currently provides up to £81.90 per week to help those with additional caring responsibilities.

Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week…

… the largest increase in Carer’s Allowance since it was introduced in 1976.

That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance…

… allowing them to increase their hours where they want to…

… and keep more of their money.

I am also concerned about the cliff-edge in the current system and the issue of overpayments.

My Right Honourable Friend the Work and Pensions Secretary has announced an independent review to look at the issue of overpayments, and we will work across this house to develop the right solutions.

Third, we will provide £1bn from next year to extend the Household Support Fund and Discretionary Housing Payments, to help those facing financial hardship with the cost of essentials.

Fourth, having heard representations from the Joseph Rowntree Foundation, Trussell and others…

… to reduce the level of debt repayments that can be taken from a household’s Universal Credit payment each month…

… by reducing it from 25% to 15% of their standard allowance.

This means that 1.2 million of the poorest households will keep more of their award each month…

… lifting children out of poverty…

… and those who benefit will gain an average of £420 a year.

Madam Deputy Speaker, our Plan to Make Work Pay will also protect working people.

[redacted political content]

It is right that we protect those who have worked their whole lives.

In our manifesto, we promised to transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to members…

… and I have listened closely to my Honourable Friends for Easington, Doncaster Central, Blaenau Gwent, and Ayr, Carrick and Cumnock on this issue.

Today we are keeping our promise…

… so that working people who powered our country receive the fair pension that they are owed.

Our manifesto committed to the Triple Lock…

… meaning spending on the State Pension is forecast to rise by over £31bn by 2029-30…

… to ensure that our pensioners are protected in their retirement.

This commitment means that while working age benefits will be uprated in line with CPI, at 1.7%…

… the basic and new State Pension…

… will be uprated by 4.1% in 2025-26.

This means that over 12 million pensioners will gain up to £470 next year…

… up to £275 more than if uprated by inflation.

The Pension Credit Standard Minimum Guarantee will also rise by 4.1%…

… from around £11,400 per year to around £11,850 for a single pensioner.

Fuel duty

While I have sought to protect working people with measures to reduce the cost of living…

… I have had to take some very difficult decisions on tax.

I want to set out my approach to fuel duty.

Baked into the numbers that I inherited from the previous government…

… is an assumption that fuel duty will rise by RPI next year…

… and that the temporary 5p cut will be reversed.

To retain the 5p cut…

… and to freeze fuel duty again…

… would cost over £3bn next year.

At a time when the fiscal position is so difficult…

… I have to be frank with the House that this is a substantial commitment to make.

I have concluded…

… that in these difficult circumstances…

… while the cost of living remains high…

… and with a backdrop of global uncertainty…

… increasing fuel duty next year…

… would be the wrong choice for working people.

It would mean fuel duty rising by 7p per litre.

So, I have today decided to freeze fuel duty next year…

… and I will maintain the existing 5p cut for another year, too.

There will be no higher taxes at the petrol pumps next year.

Madam Deputy Speaker, the last government made cuts of £20bn to employees’ and self-employed national insurance in their final two budgets.

[redacted political content]

Because we now know they were based on a forecast which the OBR say would have been “materially different”…

… had they known the true extent of the last government’s cover-up.

Since July, I have been urged on multiple occasions to reconsider these cuts.

To increase the taxes that working people pay and see in their payslips.

But I have made an important choice today:

To keep every single commitment that we made on tax in our manifesto.

So I say to working people:

I will not increase your National Insurance…

…I will not increase your VAT…

…And I will not increase your income tax.

Working people will not see higher taxes in their payslips as a result of the choices I make today.

That is a promise made – and a promise fulfilled.

TAX

But any responsible Chancellor would need to take difficult decisions today.

To raise the revenues required to fund our public services.

And to restore economic stability.

So in today’s Budget, I am announcing an increase in Employers’ National Insurance Contributions.

We will increase the rate of Employers’ National Insurance by 1.2 percentage points, to 15%, from April 2025.

And we will reduce the Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – from £9,100 per year to £5,000.

This will raise £25bn per year by the end of the forecast period.

I know that this is a difficult choice.

I do not take this decision lightly.

We are asking business to contribute more…

… and I know that there will be impacts of this measure felt beyond businesses, too…

… as the OBR have set out today.

But in the circumstances that I have inherited, it is the right choice to make.

Successful businesses depend on successful schools.

Healthy businesses depend on a healthy NHS.

And a strong economy depends on strong public finances.

[redacted political content]

That is the choice our country faces too.

As I make this choice, I know it is particularly important to protect our smallest companies.

So having heard representations from the Federation of Small Businesses and others…

… I am today increasing the Employment Allowance from £5,000 to £10,500.

This means 865,000 employers won’t pay any National Insurance at all next year…

… and over 1 million will pay the same or less than they did previously.

This will allow a small business to employ the equivalent of 4 full time workers on the National Living Wage…

… without paying any National Insurance on their wages.

Madam Deputy Speaker, let me come now to capital gains tax.

We need to drive growth, promote entrepreneurship, and support wealth creation…

… while raising the revenue required to fund our public services…

… and restore our public finances.

Today, we will increase the lower rate of Capital Gains Tax from 10% to 18%, and the Higher Rate from 20% to 24%…

… while maintaining the rates of capital gains tax on residential property at 18% and 24%, too.

This means the UK will still have the lowest Capital Gains Tax rate of any European G7 economy.

Alongside these changes to the headline rates of Capital Gains Tax…

… we are maintaining the lifetime limit for Business Asset Disposal Relief at £1m…

… to encourage entrepreneurs to invest in their businesses.

Business Asset Disposal Relief will remain at 10% this year…

… before rising to 14% in April 2025…

… and 18% from 2026-27…

… maintaining a significant gap compared to the higher rate of Capital Gains Tax.

Together, the OBR say these measures will raise £2.5bn by the end of the forecast.

In a sign of this government’s commitment to supporting growth and entrepreneurship…

…we have already extended the Enterprise Investment Scheme and Venture Capital Trust schemes to 2035…

… and we will continue to work with leading entrepreneurs and venture capital firms…

… to ensure our policies support a positive environment for entrepreneurship in the UK.

Next, inheritance tax.

Only 6% of estates will pay inheritance tax this year.

I understand the strongly held desire to pass down savings to children and grandchildren.

So I am taking a balanced approach in my package today.

First, the previous government froze inheritance tax thresholds until 2028. I will extend that freeze for a further two years, until 2030.

That means the first £325,000 of any estate can be inherited tax-free…

… rising to £500,000 if the estate includes a residence passed to direct descendants….

… and £1m when a tax free allowance is passed to a surviving spouse or civil partner.

Second, we will close the loophole created by the previous government…

… made even bigger when the Lifetime Allowance was abolished…

… by bringing inherited pensions into inheritance tax from April 2027.

Finally, we will reform Agricultural Property Relief and Business Property Relief.

From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all…

… but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

This will ensure we continue to protect small family farms…

… and three-quarters of claims will be unaffected by these changes.

I can also announce that we will apply a 50% relief, in all circumstances, on inheritance tax for shares on the Alternative Investment Market (AIM) and other similar markets…

… setting the effective rate of tax at 20%.

Taken together, these measures raise over £2bn in the final year of the forecast.

Next, I can confirm that the government will renew the Tobacco Duty escalator for the remainder of this Parliament at RPI+2%…

… increase duty by a further 10% on hand-rolling tobacco this year…

… introduce a flat rate duty on all vaping liquid from October 2026…

… alongside an additional one off- increase in tobacco duty to maintain the incentive to give up smoking.

And we will increase the Soft Drinks Industry Levy to account for inflation since it was introduced…

… as well as increasing the duty in line with CPI each year going forward.

These measures will raise nearly £1bn per year by the end of the forecast period.

Madame Deputy Speaker, we want to support the take-up of electric vehicles.

So I will maintain incentives for electric vehicles in Company Car Tax from 2028…

… and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.

These measures will raise around £400m by the end of the forecast period.

Madam Deputy Speaker let me update the House on our plans for Air Passenger Duty…

[redacted political content]

Air Passenger Duty has not kept up with inflation in recent years…

… so we are introducing an adjustment…

… meaning an increase of no more than £2 for an economy class short-haul flight.

But I am taking a different approach when it comes to private jets…

… increasing the rate of Air Passenger Duty by a further 50%.

[redacted political content]

These measures will raise over £700m by the end of the forecast period.

Madam Deputy Speaker, let me turn now to our high street businesses.

I know that for them, a major source of concern is business rates.

From 2026-27, we intend to introduce two permanently lower tax rates for retail, hospitality and leisure properties which make up the backbone of high streets across the country…

… and it is our intention that is paid for by a higher multiplier for the most valuable properties.

[redacted political content]

So I will today provide 40% relief on business rates for the retail, hospitality and leisure industry in 2025-26…

… up to a cap of £110,000 per business.

Alongside this, the small business tax multiplier will be frozen next year.

Next, I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year…

… but nearly two-thirds of alcoholic drinks sold in pubs are served on draught.

So today, instead of uprating these products in line with inflation…

… I am cutting draught duty by 1.7%…

… which means a penny off a pint in the pub.

Alongside the changes I am making today, I am publishing a Corporate Tax Roadmap..

… providing the business certainty called for by the CBI, British Chambers of Commerce and the Institute for Directors.

This confirms our commitment to cap the rate of Corporation Tax at 25% – the lowest in the G7 – for the duration of this parliament….

… while maintaining full expensing and the £1 million Annual Investment Allowance…

…and keeping the current rates of research and development reliefs, to drive innovation.

Manifesto

Madam Deputy Speaker, in our manifesto we made a number of commitments to raise funding for our public services.

First, I have always said that if you make Britain your home, you should pay your tax here.

So today, I can confirm…

… we will abolish the non-dom tax regime…

… and remove the outdated concept of domicile from the tax system from April 2025.

We will introduce a new, residence based scheme…

… with internationally competitive arrangements for those coming to the UK on a temporary basis…

… while closing the loopholes in the scheme designed by the party opposite.

To further encourage investment into the UK, we will also extend the Temporary Repatriation Relief to three years and expand its scope…

… bringing billions of pounds of new funds into Britain.

The independent Office for Budget Responsibility say that this package of measures will raise £12.7bn over the next five years.

Next, the fund management industry provides a vital contribution to our economy…

… but as our manifesto set out, there needs to be a fairer approach to the way carried interest is taxed.

So we will increase the Capital Gains Tax rates on carried interest to 32% from April 2025…

… and – from April 2026 – we will deliver further reforms to ensure that the specific rules for carried interest are simpler, fairer and better targeted.

In our manifesto we committed to reforming stamp duty land tax to raise revenue while supporting those buying their first home.

We are increasing the stamp-duty land tax surcharge for second-homes…

…known as the “Higher Rate for Additional Dwellings”…

… by 2 percentage points, to 5%, which will come into effect from tomorrow.

This will support over 130,000 additional transactions from people buying their first home, or moving home over, the next five years.

Next, we committed to reform the Energy Profits Levy on oil and gas companies.

I can confirm today that we will increase the rate of the levy to 38%, which will now expire in March 2030…

… and we will remove the 29% investment allowance.

To ensure the oil and gas industry can protect jobs and support our energy security…

… we will maintain the 100% first year allowances and the decarbonisation allowances too.

Finally, 94% of children in the UK attend state schools.

To provide the highest quality of support and teaching that they deserve…

… we will introduce VAT on private school fees from January 2025…

… and we will shortly introduce legislation to remove their business rates relief from April 2025, too.

We said in our manifesto that these changes…

… alongside our measures to tackle tax avoidance…

… would bring in £8.5bn by the final year of the forecast.

I can confirm today that they will in fact raise over £9bn…

… to support our public services and restore our public finances.

That is a promise made – and a promise fulfilled.

Madam Deputy Speaker, I have one final decision to take on tax today.

The previous government froze income tax and National Insurance thresholds in 2021…

… and then they did so again after the mini-budget.

Extending their threshold freeze for a further two years raises billions of pounds.

Money to deal with the black hole in our public finances…

… and repair our public services.

Having considered this issue closely…

… I have come to the conclusion…

… that extending the threshold freeze…

… would hurt working people.

It would take more money out of their payslips.

I am keeping every single promise on tax that I made in our manifesto.

So there will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous government.

From 2028-29, personal tax thresholds will be uprated in line with inflation once again.

When it comes to choices on tax, this government chooses to protect working people every single time.

SPENDING

Madam Deputy Speaker, these are the choices I have made.

To restore economic stability.

And to protect working people.

The next choice I make is to begin to repair our public services.

In recent months, we have conducted the first phase of the Spending Review…

… to set departmental budgets for 2024-25 and 2025-26…

… and I want to thank my Right Honourable Friend the Chief Secretary to the Treasury for his tireless work with colleagues from across government.

Because I have taken difficult decisions on tax today…

… I am able to provide an injection of immediate funding over the next two years…

… to stabilise and to support our public services.

The next phase of the Spending Review will report in late Spring, and I have set the overall envelope today.

Day to day spending from 2024-25 onwards will grow by 1.5% in real terms…

… and total departmental spending, including capital spending, will grow by 1.7% in real terms.

At the election we promised there would be no return to austerity.

Today we deliver on that promise.

But given the scale of the challenges that are facing our public services…

… that means there will still be difficult choices in the next phase of the Spending Review.

Just as we cannot tax and spend our way to prosperity…

… nor can we simply spend our way to better public services.

So we will deliver a new approach to public service reform…

… using technology to improve public services…

… and taking a zero-based approach…

… so that taxpayers’ money is spent as effectively as possible…

… and so that we focus on delivering our key priorities.

Spending Review: Phase 1

In the first phase of the Spending Review…

… I have prioritised day-to-day funding to deliver on our manifesto commitments.

I want every child to have the best start in life…

… and the best possible start to the school day, too…

… and I know my Right Honourable Friend the Education Secretary shares my ambition.

So I am today tripling investment in breakfast clubs to fund them in thousands of schools.

I am increasing the core schools budget by £2.3bn next year…

… to support our pledge to hire thousands more teachers into key subjects.

So that our young people can develop the skills that they need for the future…

… I am providing an additional £300m for further education.

And finally, this government is committed to reforming special educational needs provision…

… to improve outcomes for our most vulnerable children and ensure the system is financially sustainable.

To support that work, I am today providing a £1bn uplift in funding, a 6% real terms increase from this year.

There is no more important job for government than to keep our country safe, and we are conducting a Strategic Defence Review to be published next year.

And as set out in our manifesto, we will set a path to spending 2.5% of GDP on defence at a future fiscal event.

Today, I am announcing a total increase to the Ministry of Defence’s Budget of £2.9bn next year…

… ensuring the UK comfortably exceeds our NATO commitments…

… and providing guaranteed military support to Ukraine of £3bn per year, for as long as it takes.

Last week, alongside my Right Honourable Friend the Defence Secretary, I announced, in addition to this, further support to Ukraine – on top of our NATO commitment…

… through our £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration agreement…

… repaid using profits from immobilised Russian sovereign assets.

And as we approach Remembrance Sunday…

… it is vital that we take time to remember those who have served our country so bravely.

So I am today announcing funding to commemorate the 80th anniversary of VE and VJ day next year…

… to honour those who have served at home and abroad.

We must also remember those who experienced the atrocities of the Nazi regime first hand.

I would like to pay tribute to Lily Ebert, the Holocaust Survivor and educator who passed away aged 100 earlier this month.

I am today committing a further £2m to holocaust education next year…

… so that charities like the Holocaust Educational Trust, can continue their work to ensure these vital testimonies are not lost and are preserved for the future.

Madam Deputy Speaker, to repair our public services we also need to work alongside our mayors and our local leaders.

We will deliver a significant real-terms funding increase for local government next year…

… including £1.3bn of additional grant funding to deliver essential services…

… with at least £600m in grant funding for social care…

… and £230m to tackle homelessness and rough sleeping

We are today confirming that Greater Manchester and the West Midlands will be the first mayoral authorities to receive integrated settlements from next year…

… giving Mayors meaningful control of the funding for their local areas.

*

And to support our local high streets…

… we are taking action to deal with the sharp rise in shoplifting we have seen in recent years.

We will scrap the effective immunity for low-value shoplifting introduced by the party opposite.

And having listened closely to organisations like the British Retail Consortium and USDAW…

… I am providing additional funding to crack down on the organised gangs which target retailers…

… and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.

Finally, I am today providing funding to support public services and drive growth across Scotland, Wales and Northern Ireland.

Having discussed the matter with the First Minister of Wales, Eluned Morgan, and my HFs for Llanelli and Pontypridd…

… I am providing a £25m to the Welsh Government next year for the maintenance of coal tips to ensure we keep our communities safe.

And to support growth, including in our rural areas, we will proceed with City and Growth Deals in Northern Ireland…

… in Causeway Coast and Glens; and Mid-South West.

And we will drive growth in Scotland [redacted political content] including a City and growth Deal in Argyll and Bute.

This budget provides the devolved governments with the largest real-terms funding settlement since devolution…

… delivering an additional £3.4 billion for the Scottish Government through the Barnett formula…

… funding which must now be spent effectively to improve public services in Scotland.

This budget also provides £1.7 billion to the Welsh Government…

… and £1.5 billion to the Northern Ireland Executive in 2025-26.

I said there would be no return to austerity, and that is the choice I have made today.

REBUILDING BRITAIN

Madam Deputy Speaker, to rebuild our country we need to increase investment.

The UK lags behind every other G7 country when it comes to business investment as a share of our economy.

That matters.

It means the UK has fallen behind in the race for new jobs…

… new industries…

… and new technology.

By restoring economic stability…

… and by establishing the National Wealth Fund to catalyse private funding…

… we have begun to create the conditions that businesses need to invest.

But there is also a significant role for public investment.

Hospitals without the equipment they need.

School buildings not fit for our children.

A desperate lack of affordable housing.

Economic growth held back at every turn.

Under the plans I inherited…

… public investment was set to fall from 2.5% to 1.7% of GDP.

But in Washington last week, the International Monetary Fund were clear:

More public investment is badly needed in the UK.

So today, having listened to the case made by the former Governor of the Bank of England, Mark Carney…

… former Treasury Minister, Jim O’Neill…

… and the former Cabinet Secretary, Gus O’Donnell…

… among others…

… I am confirming our investment rule.

As set out in our manifesto, we will target debt falling as a share of the economy.

Debt will be defined as Public Sector net Financial Liabilities, or “net financial debt”, for short…

… a metric that has been measured by the Office for National Statistics since 2016…

… and forecast by the Office for Budget Responsibility since that date too.

“Net financial debt” recognises that government investment delivers returns for taxpayers…

… by counting not just the liabilities on a government’s balance sheet, but the financial assets too.

This means that we count the benefits of investment, not just the costs…

And we free up our institutions to invest…

… just as they do in Germany, France and Japan.

Like our stability rule, our investment rule will apply in 2029-2030…

… until that becomes the third year of the forecast.

From that point onwards, net financial debt will fall in the third year of every forecast.

Today, the OBR say that we are already meeting our target two years early…

… with “net financial debt” falling by 2027-28…

… with £15.7bn of headroom in the final year.

So that we drive the right incentives in government investments…

… we will introduce four key guardrails to ensure capital spending is good value for money and drives growth in our economy.

First, our portfolio of new financial investments will be delivered by expert bodies like the National Wealth Fund which must, by default, earn a rate of return at least as large as that on gilts.

Second, we will strengthen the role of institutions to improve infrastructure delivery.

Third, we will improve certainty, setting capital budgets for five years and extending them at every spending review every two years.

Finally, we will ensure there is greater transparency for capital spending, with robust annual reporting of financial investments…

… based on accounts audited by the National Audit Office…

… and made available to the Office for Budget Responsibility at every forecast.

Taken together with our stability rule…

…these fiscal rules will ensure that our public finances are on a firm footing…

… while enabling us to invest prudently alongside business.

Growth projects

The capital plans I now set out…

… to drive growth across our country…

… and repair the fabric of our nation…

… are only possible because of our investment rule.

Let me set out those investment plans.

Industrial strategy

Today we are confirming our plans to capitalise the National Wealth Fund…

… to invest in the industries of the future…

… from gigafactories, to ports to green hydrogen.

Building on these investments, my Right Honourable Friend the Business Secretary is driving forward our modern industrial strategy…

… working with businesses and organisations like Make UK…

… to set out the sectors with the biggest growth potential.

Today, we are confirming multi-year funding commitments for these areas of our economy, including…

… nearly £1bn for the aerospace sector to fund vital research and development, building on our industry in the East Midlands, the South-West and Scotland…

… over £2 billion for the automotive sector…

… to support our electric vehicle industry and develop our manufacturing base…

… building on our strengths in the North East and the West Midlands…

And up to £520m for a new Life Sciences Innovative Manufacturing Fund.

For our world-leading creative industries…

… we will legislate to provide additional tax relief for visual effect costs in TV and film…

.. and we are providing £25m for the North East Combined Authority…

… which they plan to use to remediate the Crown Works Studio site in Sunderland…

… creating 8,000 new jobs.

Research & Development

To unlock these growth industries of the future, we will protect government investment in research and development with more than £20bn worth of funding.

This includes at least £6.1bn to protect core research funding for areas like engineering, biotechnology and medical science…

…through Research England, other research councils, and the National Academies.

We will extend the Innovation Accelerators programme in Glasgow, in Manchester and in the West Midlands.

And with over £500m of funding next year, my Right Honourable Friend the Science, Technology and Innovation Secretary, will continue to drive progress in improving reliable, fast broadband and mobile coverage across our country, including in rural areas.

Housing

We committed in our manifesto to build 1.5 million homes over the course of this parliament…

… and my Right Honourable Friend the Deputy Prime Minister is driving that work forward across government.

Today, I am providing over £5bn of government investment to deliver our plans on housing next year.

We will increase the Affordable Homes Programme to £3.1bn…

… delivering thousands of new homes.

We will provide £3bn of support in guarantees…

… to boost the supply of homes and support our small housebuilders.

And we will provide investment to renovate sites across our country…

… including at Liverpool Central Docks…

… where we will deliver 2,000 new homes…

… and funding to help Cambridge realise its full growth potential.

Alongside this investment, we will put the right policies in place to increase the supply of affordable housing.

Having heard representations from local authorities, social housing providers and from Shelter…

… I can today confirm that the government will reduce Right to Buy Discounts…

… and local authorities will be able to retain the full receipts from any sales of social housing…

… to reinvest back into the housing stock, and into new supply..

… so that we give more people a safe, secure and affordable place to live.

We will provide stability to social housing providers, with a social housing rent settlement of CPI+1 percent for the next five years.

And we will deliver on our manifesto commitment to hire hundreds of new planning officers, to get Britain building again.

We will also make progress on our commitment to accelerate the remediation of homes following the findings of the Grenfell Inquiry…

… with £1bn of investment to remove dangerous cladding next year.

Transport

Working with my Right Honourable Friend the Transport Secretary, I am changing that.

We are today securing the delivery of the Trans-Pennine upgrade to connect York, Leeds, Huddersfield and Manchester…

… delivering fully electric local and regional services between Manchester and Stalybridge by the end of this year…

… with a further electrification of services between Church Fenton and York by 2026.…

… to help grow our economy across the North of England…

… with faster and more reliable services.

We will deliver East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge…

… with the first services running between Oxford, Bletchley and Milton Keynes next year…

… and trains between Oxford and Bedford running from 2030.

We are delivering railway schemes which improve journeys for people across our country…

… including upgrades at Bradford Forster Square…

… improving capacity at Manchester Victoria…

… and electrifying the Wigan-Bolton line.

My Right Honourable Friend the Transport Secretary has also set out a plan for how to get a grip of HS2.

Today, we are securing delivery of the project between Old Oak Common and Birmingham…

… and we are committing the funding required to begin tunnelling work to London Euston station…

… This will catalyse private investment into the local area.

I am also funding significant improvements to our roads network.

For too long, potholes have been an all too visible reminder of our failure to invest as a nation.

Today, that changes…

… with a £500m increase in road maintenance budgets next year…

… more than delivering on our manifesto commitment to fix an additional one million potholes each year.

We will provide over £650m of local transport funding to improve connections across our country…

… in our towns like Crewe and Grimsby…

… and in our villages and rural areas, from Cornwall to Cumbria.

… we understand how important bus services are for our communities…

…so we will extend the cap for a further year, setting it at £3 until December 2025.

Finally we will deliver £1.3bn of funding to improve connectivity in our city regions, funding projects like…

… the Brierley Hill Metro extension in the West Midlands…

… the renewal of the Sheffield Supertram…

… and West Yorkshire Mass Transit, including in Bradford and Leeds.

Energy

Madam Deputy Speaker, to bring new jobs to Britain and drive growth across our country…

… we are delivering our mission to make Britain a clean energy superpower, led by my Right Honourable Friend the Energy Secretary.

Earlier this month, we announced a significant multi-year investment between government and business into Carbon Capture and Storage…

… creating 4,000 jobs across Merseyside and Teesside.

Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales – they will be among the first commercial scale projects anywhere in the world…

… including in Bridgend, East Renfrewshire and in Barrow-in-Furness

We are kickstarting the Warm Homes Plan by confirming an initial £3.4bn over the next three years…

… to transform 350,000 homes…

… including a quarter of a million low-income and social homes.

And we will establish GB Energy…

… providing funding next year to set up GB Energy at its new home in Aberdeen.

Overall, we will invest an additional £100bn over the next five years in capital spending…

… only possible because of our investment rule.

The OBR say today that this will drive growth across our country in the next five years…

… and in the longer term increase GDP by up to 1.4%.

It will crowd in private investment…

… meaning more jobs, and more opportunities…

… in every corner of the UK.

That is the choice that I have made.

To invest in our country…

… and to grow our economy.

Today, I am setting out two final areas in which investment is so badly needed…

… to repair the fabric of our nation.

Schools

[redacted political content]

… schools roofs are crumbling….

… and millions of children are facing the very same backdrop as I did.

I will be the Chancellor that changes that.

So today, I am providing £6.7bn of capital investment to the Department for Education next year…

… a 19% real-terms increase on this year.

That includes £1.4bn to rebuild over 500 schools in the greatest need…

… including St Helen’s Primary School in Hartlepool, and Mercia Academy in Derby…

… and so many more across our country.

And we will provide a further £2.1bn to improve school maintenance, £300m more than this year…

… ensuring that all our children can learn somewhere safe…

… including dealing with RAAC affected schools in the constituencies of my HFs the members for Watford, Stourbridge, Hyndburn, and beyond.

Alongside investment in new teachers…

… and funding for thousands of new breakfast clubs…

… this government is giving our children and young people the opportunities that they deserve.

NHS

Madam Deputy Speaker, I come to our most cherished public service of all: our NHS.

[redacted political content]

In our first week in office, he commissioned an independent report into the state of our health service by Lord Darzi.

Its conclusions were damning.

While our NHS staff do a remarkable job, and we thank them for it…

… it is clear that, that in so many areas…

… we are moving in the wrong direction.

100,000 infants waited over 6 hours in A&E last year.

350,000 people are waiting a year for mental health support.

Cancer deaths here are higher than in other countries.

It is simply unforgiveable.

In the Spring, we will publish a 10 year plan for the NHS…

… to deliver a shift from hospital to community…

… from analogue to digital…

… and from sickness to prevention.

Today, we are announcing a downpayment on that plan…

… to enable the NHS to deliver 2% productivity growth next year.

These reforms are vital.

But we should be honest.

The state of the NHS we inherited…

… after – and I quote Lord Darzi – “the most austere decade since the NHS was founded” –

… means reform must come alongside investment.

So today…

… because of the difficult decision that I have taken on tax, welfare and spending…

… I can announce…

… that I am providing a £22.6bn increase in the day to-day health budget…

… and a £3.1bn increase in the capital budget…

… over this year and next year.

This is the largest real-terms growth in day to day NHS spending outside of Covid since 2010.

Let me set out what this funding is delivering.

Many NHS buildings have been left in a state of disrepair.

So we will provide £1 billion of health capital investment next year to address the backlog of repairs and upgrades across the NHS.

To increase capacity for tens of thousands more procedures next year…

… we will provide a further £1.5bn…

… for new beds in hospitals across the country…

… new capacity for over a million additional diagnostic tests…

… and new surgical hubs and diagnostic centres …

… so that those people waiting for their treatment can get it as quickly as possible.

My Right Honourable Friend the Health Secretary will be announcing the details of his review into the New Hospital Programme in the coming weeks…

… and publishing in the new year…

… but I can tell the House today…

… that work will continue at pace to deliver those seven hospitals affected including…

… West Suffolk Hospital in Bury St Edmunds…

… and Leighton Hospital in Crewe.

And finally…

… because of this record injection of funding…

… because of the thousands of additional beds that we have secured…

… and because of the reforms that we are delivering in our NHS…

… we can now begin to bring waiting lists down more quickly…

… and move towards our target for waiting times no longer than 18 weeks…

… by delivering our manifesto commitment for 40,000 extra hospital appointments a week.

[redacted political content]

CLOSING

Madam Deputy Speaker, the choices that I have made today are the right choices for our country.

To restore stability to our public finances.

To protect working people.

To fix our NHS.

And to rebuild Britain.

That doesn’t mean these choices are easy.

But they are responsible.

[redacted political content]

This is a moment of fundamental choice for Britain.

I have made my choices.

The responsible choices.

To restore stability to our country.

To protect working people.

More teachers in our schools.

More appointments in our NHS.

More homes being built.

Fixing the foundations of our economy.

Investing in our future.

Delivering change.

Rebuilding Britain.

We on these benches commend those choices…

… and I commend this Statement to the House.

Updates to this page

Published 30 October 2024

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI USA: President Trump Announces Appointments to the White House Offices of Communications, Public Liaison, and Cabinet Affairs

US Senate News:

Source: The White House
President Trump announced key appointments to the White House Office of Communications, Public Liaison, and Cabinet Affairs, which will be overseen by Deputy Chief of Staff for Communications and Public Liaison, and Cabinet Secretary Taylor Budowich.
COMMUNICATIONS
President Trump previously announced the appointments of Assistant to the President and White House Communications Director Steven Cheung and Assistant to the President and Press Secretary Karoline Leavitt. Today’s announcements include: Alex Pfeiffer will join the White House as a Deputy Assistant to the President and Principal Deputy Communications Director after previously serving as a Communications Adviser for the Trump-Vance 2024 Campaign and Communications Director for MAGA Inc. Pfeiffer previously served as an Investigative and Editorial Producer for Fox News’ Tucker Carlson Tonight. Kaelan Dorr will return to the White House as a Deputy Assistant to the President and Deputy Communications Director after serving as Senior Strategist and Spokesperson for MAGA Inc. Dorr previously served as Senior Advisor for Public Affairs at the Department of Treasury, Congressional Communications Director and Strategic Communications Advisor in the Executive Office of the President in the Trump Administration, Global Head of Marketing and Engagement for GETTR, Vice President of Communications for America First Policy Institute, and Chief Marketing Officer for Donald J. Trump for President. Harrison Fields will return to the White House as Special Assistant to the President and Principal Deputy Press Secretary, having previously served as Assistant Press Secretary in the Trump Administration. Fields has also served as Senior Advisor to Congressman Byron Donalds and Assistant Director of Media and Public Relations at The Heritage Foundation. Anna Kelly will join the White House as a Deputy Press Secretary after serving as National Press Secretary for the Republican National Committee. Previously, Kelly was Communications Director for Congressman Derrick Van Orden, Michels for Governor, and the Republican Party of Wisconsin. Kush Desai will serve as a Deputy Press Secretary after serving as Deputy Battleground States & Pennsylvania Communications Director at the Republican National Committee. Desai also served as Deputy Communications Director for the 2024 Republican National Convention and Communications Director for the Republican Party of Iowa. Ian Kelley will join the White House as Special Assistant to the President and War Room Director after serving as War Room Director for the Trump-Vance 2024 Campaign. Previously, Ian worked as Rapid Response Manager for the social media platform GETTR. Dylan Johnson will join the White House as Special Assistant to the President and Assistant Communications Director for Special Projects after serving as a Deputy Director of Communications for the Trump-Vance 2024 Campaign. Johnson previously served as the Campaign Manager for the Greitens for U.S. Senate campaign and was an Executive Producer for Just The News. Sonny Joy Nelson will join the White House as Special Assistant to the President and Media Affairs Director, after serving as Director of Media Affairs and Surrogates for the Trump-Vance 2024 Campaign. Previously, Nelson served as Director of Media Affairs for the social media platform GETTR, Booking Producer for Real America’s Voice, Director of Media Affairs for the Republican National Committee, and Associate Director of Strategic Communications for Donald J. Trump for President, Inc. Dan Boyle will join the White House as the White House Director of Research after serving as a Research Consultant on the Trump-Vance 2024 Campaign, and previously as Director of Research for MAGA Inc. Boyle previously served as the Research Director for Citizens United and as a Research Analyst for the Government Accountability Institute. Johanna Persing will join the White House as Cabinet Communications Director after playing an integral role in the Trump-Vance 2024 campaign’s surrogate operation, including leading the media booking operation at the 2024 Republican Convention in Milwaukee. Persing previously served as the Deputy Communications Director for the Republican National Committee and as Communications Director for Congressman Ryan Costello. Charyssa Parent will join the White House as Congressional Communications Director after serving as the Communications Director for Senator Roger Marshall. Parent previously served as the Deputy Director of Communications for the House Republican Conference and as the Director of Broadcast Media for the Republican National Committee. Jacki Kotkiewicz will join the White House as Policy Communications Director after working as a Vice President at Argus Insight. Kotkiewicz previously served as the Director of Policy Research at the Republican National Committee and was a Research Analyst on the Trump 2020 campaign. Jake Schneider will join the White House as Rapid Response Director after serving as Rapid Response Director for the Trump-Vance Campaign. Schneider previously served as the Deputy Director of Rapid Response for the 2020 Trump campaign and as Communications Director and Press Secretary for Congresswoman Michelle Fischbach.
OFFICE OF PUBLIC LIAISON Jim Goyer will return to the White House as Deputy Assistant to the President and Director of the Office of Public Liaison. Goyer served President Donald J. Trump in his first Administration as Special Assistant to the President and Deputy Director of the Office of Public Liaison. Goyer previously served as Political Coordinator at the National Republican Senatorial Committee. Goyer is joining from Goldman Sachs, where he served as an Associate of Asset and Wealth Management.
Lynne Patton will serve as Deputy Assistant to the President and Director of Minority Outreach, where she will be charged with ensuring that President Trump continues to build upon his historic Election Day support from Blacks, Latinos and Women. Patton served as Senior Advisor on the Trump Campaign and has been one of the Trump family’s longest serving and most trusted aides. Prior to joining the Trump campaign, Patton was the Regional Administrator for Federal Region II at the U.S. Department of Housing and Urban Development and Senior Advisor to Secretary Ben Carson. At HUD, Lynne worked tirelessly to bring accountability, reform and results to some of the most challenging housing issues facing our country. From championing the rights of underserved communities to exposing corruption and mismanagement within public housing systems, Lynne consistently fought for fairness and opportunity, earning her the bipartisan respect of industry peers and local elected officials alike. Lynne’s deep connection to the issues affecting minority communities combined with her remarkable interpersonal skills, makes her the ideal person to lead this critical outreach effort. She holds a B.S. from the University of Miami and attended Quinnipiac University, School of Law. Brette Powell will return to the White House as Special Assistant to the President and Deputy Director of the Office of Public Liaison, having previously served for three years in the White House Management Office and the Advance Office in the Trump Administration. Powell previously served the President for four years through his Save America PAC and the Trump-Vance 2024 campaign as the Director of Strategic Political Stakeholder Engagement. Hailey Borden will return to the White House as Special Assistant to the President and Director of Business Outreach in the Office of Public Liaison, having previously served as Associate Director of the Office of Public Liaison in the Trump Administration. Borden previously was Director of Coalitions and Member Services on the House Committee on Small Business and is currently the Director of Business Coalitions for House Majority Whip Tom Emmer. Alex Flemister will return to the White House as Director of Strategic Initiatives in the Office of Public Liaison, having previously served as Associate Director in the Office of Public Liaison in the Trump Administration. Flemister previously worked for Governor Sarah Huckabee Sanders on her campaign as Advisor and Director of Operations and worked in her official governor’s office as the Director of Office Appointments. Flemister is currently the Founder and President of The Flemister Group. CABINET AFFAIRS Lea Bardon will join the White House as a Special Assistant to the President and Director of Cabinet Affairs. Bardon previously served as Director of Development Operations at the America First Policy Institute. Bardon also served on President Trump’s reelection campaign in 2020 and as Executive Roundtable Manager at the Republican Attorneys General Association. Thomas Bradbury will join the White House as Associate Director for Policy. Bradbury is currently the Director of Advocacy and Policy at American Conservative Union (CPAC). Cami Connor will return to the White House as Associate Director for Agency Outreach, having previously served as Associate Director of Agency Outreach in the first Trump Administration. Connor currently serves on the Government Operations team at The Boeing Company.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Congressman Robert Garcia Urges Support for Superfund Designation of Exide Technologies and Impacted Communities in Vernon, California

Source: United States House of Representatives – Congressman Robert Garcia California (42nd District)

Washington, D.C. – Today, Congressman Robert Garcia (CA-42) sent a letter to the head of the U.S. Environmental Protection Agency (EPA) urging support for adding Exide Technologies, Inc., in Vernon, California, to the National Priorities List (NPL), a key step towards a final Superfund Designation. The letter highlights the need for federal resources to facilitate a long-term comprehensive cleanup of the affected communities and to secure environmental justice for the residents of Southeast Los Angeles. Congressman Garcia emphasized that any federal cleanup must address soil, air, and other pollution sources, in addition to groundwater. He also called for improved community engagement and outreach, particularly targeting renters and Spanish speakers. To read the full letter, click here.

Excerpts of the letter can be found below.

“Dear Administrator Regan,

Thank you for your commitment to addressing critical threats to human health and the environment. I am writing in support of the U.S. Environmental Protection Agency’s (EPA) proposed addition of Exide Technologies, Inc., in Vernon, California to the National Priorities List (NPL) and the federal resources necessary for a long-term, comprehensive cleanup of the affected communities.

One of my first actions in Congress was writing with our California Senators on February 13, 2023, to urge you to designate this as a Superfund site. In our letter, we highlighted that, ‘the severity of the crisis, the failure of past remediation efforts to create healthy communities, and the risk to public health requires assistance from the EPA and the resources available under the Superfund program.’ Additionally, I directly raised this issue with you during a July 10, 2024, hearing of the Oversight and Accountability Committee.

For decades, Exide Technologies released dangerously high levels of lead, trichloroethylene (TCE), a known human carcinogen, and other toxic substances in the air, water, and soil of the residential cities and neighborhoods surrounding Vernon—notably Maywood, Commerce, East Los Angeles, and Boyle Heights, California. The impact of this environmental degradation has been most severe in historically underserved, Latino communities.

There are no safe levels of lead for any family or child. As you know, lead is a potent toxicant linked to severe behavioral, developmental, and educational impacts, and it is also a contributor to high blood pressure and heart disease. The federal government’s intervention is essential to fully correct the failures of past remediation efforts and to resolve this crisis.

The Southeast L.A. communities I represent deserve the basic right to a clean, safe environment—not just groundwater. If your investigation confirms soil lead contamination above background levels linked to the Exide site, it is essential that the EPA collaborates with the community to implement a cleanup plan aligned with California’s lead contamination standard of 80 parts per million.

The time has come for decisive federal action to rectify these long-standing environmental injustices. I stand ready to collaborate with the EPA to ensure a comprehensive resolution to this crisis and to help bring about a future where every resident can live without the threat of pollution in their homes, air, and water.”

###

MIL OSI USA News –

January 25, 2025
MIL-OSI United Nations: Secretary-General’s press encounter at the end of his visit in Colombia [bilingual, scroll down for Q+A]

Source: United Nations secretary general

Ladies and gentlemen of the media.

I thank President Petro for hosting the United Nations Biodiversity Conference in Cali.

I congratulate Colombia on the excellent organization of this COP.

I also thank the people of Colombia for their warm welcome, we all felt very much at home.

The world has come to Cali to make peace with nature.

Let me be clear: we are facing an existential crisis.

Temperatures are climbing higher and higher.

We are losing more and more species – forever.

We are poisoning our waters.

And treating nature as a disposable asset.

Human activities have already altered three-quarters of Earth’s land surface and two-thirds of its waters.

And no country, rich or poor, is immune to this devastation.

To survive, humanity must make peace with nature.

We must transform our economic models – shifting our production and consumption to nature-positive practices.

Renewable energy, sustainable supply chains and zero-waste policies are not optional.

They must become the default option for both governments and businesses.

Dear friends,

The good news is that we have a plan:
The Kunming-Montreal Global Biodiversity Framework, adopted two years ago.

But nature cannot wait for its implementation any longer.

This is what this COP is about:

Turning promises into action.

We have seen good progress, and I want to thank everyone for their efforts.

But with less than two days of negotiations left to go, we need to accelerate.

I want to highlight three priorities.

First – Cali must spark a new era for ambitious national biodiversity plans.

As of today, a majority of countries have national targets that align with the Global Biodiversity Framework.

I urge every Member State to follow suit and align these national plans with their adaptation plans and updated climate Nationally Determined Contributions – due early next year.

We must also reach an agreement on a strengthened monitoring and transparency framework to ensure accountability and move forward together.

Second – we must leave Cali with concrete plans to unlock new funding and share the benefits from the use of genetic resources.

This means capitalizing the Global Biodiversity Framework Fund.

I thank the countries and regions that pledged an additional 163 million US dollars this week.

But if we are to deliver the Global Biodiversity Framework in full, we need much more.

We must make sure we are able to mobilize 200 billion dollars annually by 2030 from all sources – domestic, international, public and private.

Developed countries must lead the way and provide at least 20 billion dollars per year – by next year – to support developing countries, in particular the Least Developed Countries and Small Island States, in their conservation and restoration efforts.

Businesses profiting from nature must also contribute to its protection and restoration.
This includes operationalizing a mechanism for sharing the benefits from the use of the Digital Sequence Information on Genetic Resources – in a clear, fair and efficient way.

Third – we must recognize, involve, and protect those who guard our natural heritage.

Indigenous Peoples and local communities possess vital knowledge of biodiversity conservation.

And in this region, People of African descent are key custodians of natural resources.

They must all be at the center of our decisions, not on the sidelines.

In Cali, we must agree on the proposal to establish a new permanent body for Indigenous peoples and local communities within the Convention on Biological Diversity – ensuring their voices are heard at every step across the work of the Convention.

The clock is ticking.

The survival of our planet’s biodiversity – and our own survival – are on the line.

We don’t have a moment to lose.

Señoras y señores de la prensa,

Mientras el mundo se reúne en este hermoso país para comprometerse a hacer la paz con la naturaleza, aprovecho la oportunidad para reafirmar nuestro compromiso con la paz en Colombia.

Me complace estar de nuevo en Colombia en este momento propicio para cerrar los dolorosos capítulos de guerra y consolidar este ejemplo de paz ante el país y el mundo.

Saludo los esfuerzos renovados del Presidente Petro y su gobierno para acelerar la implementación del Acuerdo Final de Paz – incluso mediante el Plan de Choque que se enfoca en aspectos concretos para mejorar la calidad de vida en los territorios priorizados.

Asimismo, reconozco el compromiso firme de la otra parte firmante – los que fueron combatientes de las FARC-EP.

Estos antiguos adversarios trabajan hoy como socios en la construcción de la paz.

Llegando con avances y desafíos a su octavo aniversario, este histórico Acuerdo debe de mantenerse en el centro de los esfuerzos de consolidación de la paz.

El Acuerdo sigue siendo la hoja de ruta principal para romper con los ciclos de violencia en Colombia.

Y también para enfrentar las causas estructurales de esta violencia mediante el compromiso de llevar la presencia integral del Estado a las regiones históricamente olvidadas.

Una presencia que conlleva seguridad, oportunidades de desarrollo y gobernanza inclusiva.

No debe haber más demora para que los dividendos de paz lleguen a todos los territorios. A todos aquellos pueblos que todavía esperan que se concrete la promesa de paz.

Asegurar la justicia para las víctimas también es impostergable.

Reconozco la noble y valiente labor del sistema pionero de justicia transicional creado por el Acuerdo. Y animo a que avance.

La Paz Total impulsada por el gobierno nacional es un objetivo loable.

Las iniciativas de diálogo, a pesar de los desafíos, buscan ampliar la paz en el país de manera complementaria al Acuerdo de Paz.

Aconsejo no dejarse desviar del camino del diálogo.

Estos diálogos son oportunidades para acabar con la violencia que sigue azotando a las poblaciones de regiones que también son claves para la implementación del Acuerdo de Paz.

Especialmente a las comunidades Indígenas y Afrocolombianas, a los desplazados y confinados por los grupos armados, a las mujeres víctimas de la violencia sexual y a los niños y niñas reclutados en la guerra.

Hoy, mi llamado al pueblo colombiano es de perseverar.

Que trabajen juntos para que sea un esfuerzo nacional, compartido.

Les quiero recordar que Colombia nunca estará sola en sus esfuerzos por la paz.

Será un honor seguir acompañando a Colombia en su camino hacia la paz, a través de la Misión de Verificación de la ONU y las agencias y programas del equipo de país.

Cuenten siempre con mi apoyo y mi solidaridad con Colombia, así como con mi profunda gratitud por la confianza que han otorgado a las Naciones Unidas.

Estaremos siempre al lado de Colombia.

Question: Muchas gracias Secretario. Quiero trasladarle una pregunta de muchas delegaciones acá y es ¿Cómo vio usted la presencia en la COP16 del Canciller venezolano Yván Gil, lo cuestionan muchas delegaciones -más de la mitad- incluso usted, que le ha exigido que publique las actas de las elecciones y esto no cayó nada bien aquí su presencia. Lo vimos incluso a usted distante del Canciller Gil. Si bien la diversidad y la protección de la naturaleza debe abarcar la mayor cantidad de actores posibles, ¿Cómo vio usted la presencia de Venezuela aquí en la COP16?

Answer: Hay dos aspectos distintos. En primer lugar, la opinión que formamos sobre la forma como se transcurrieron las elecciones, la ausencia de una transparencia adecuada y el hecho que hay muchos gobiernos que aún no han reconocido el gobierno de Venezuela. La otra parte es el mecanismo del funcionamiento de las organizaciones multilaterales y en particular de las COPs. Y en las COPs hay una acreditación en que los que están, participan desde que la misión del país los acredite. Esta es una práctica que no podemos cambiar porque es la práctica establecida estatutariamente, pero eso no invalida la opinión que podemos tener sobre lo que pasó en Venezuela.

Question: [Inaudible] – AFP. There are five years left to achieve the coming Montreal Objective Framework – to have them reversed by biodiversity laws by 2030. Here the focus is mainly on resource mobilization. Is that the correct approach? Is it really the fight over finance that will determine the success of the [Global Biodiversity Framework Fund] GBF. Is it the fight over finance that is key to determine the success of GBF? Or is it something else?

Answer: I think the most important thing in it – and that is the reason my presence in this COP – is to change what has been the permanent neglect of biodiversity, namely when compared with our efforts in relations to climate change.

We need, first of all, to accept the concept that we are facing three existential crises: climate change, biodiversity and pollution, namely plastics.

But they are all interlinked and indivisible. So, the central question is to make sure that we are able to put biodiversity as the center of our concerns in all aspects of policy and strategy and financing as we are putting climate change.

Obviously, finance is essential, but finance is not enough. What we need is a political priority at government levels. Political priorities at multilateral institution levels, and the clear commitment of the Private Sector to be involved in order to make sure that we understand that without defeating the biodiversity crisis, we will not defeat the climate crisis, we will not defeat the pollution crisis, and we will condemn our world to a situation of extreme poverty in the natural environments and this is totally unacceptable.

So, we must bring the attention of the people of the government, the institutions, and the Private Sector to the centrality of biodiversity in the context of our environmental processes.

Question: Sir, this is Stella Paul from IPS news (Inter Press Service News). Our overarching theme here is making peace with nature, but at the time, when we are seeing increasing impact of war and conflict on biodiversity across the world, starting from Ukraine to all the way to Palestine and we are not seeing enough discussion of that in a formal way, even at the COP, how do you think that we can make peace with nature? Thank you.

Answer: Well, we need peace with nature, and we need peace among ourselves. That is the reason I’ve been asking for in line with the Charter, in line with international law, and in line with the General Assembly resolutions. That is why we have been asking for an immediate ceasefire in Gaza, releasing all hostages and massive humanitarian aid to Gaza. That is why we have been asking for peace in Lebanon and peace that respects Lebanese sovereignty and Lebanese territorial integrity and paves the way for a political solution. That is why we have been asking for peace in Sudan, where an enormous tragedy exists. And, obviously, we need to make peace in nature, but we need to make peace among ourselves because wars have one of the most devastating impacts – wars have some of the most devastating impacts on biodiversity on climate and on pollution.

Thank you so much. At the back there, Le Monde. Thank you.

Question: Hi [inaudible] for Le Monde. Many issues of the negotiations are still unresolved, and many Ministers are leaving tonight. Are you worried this COP could fail or at least not be as successful as is should?

Secretary-General: I have to say that I met with the five groups. And I heard a large number of ministers talk. And I felt that there was a huge will to find a successful result and a huge will to compromise on the pending issues. So, I’m quite optimistic that it will be possible to reach a consensus and not a consensus on the consensus, but the consensus that paves the way for progress after the COP in the implementation of the Kunming-Montreal Framework

Question: Secretario, Silvia Patiño de W Radio Colombia. Usted estuvo ayer reunido con el Presidente Gustavo Petro y el presidente le planteó la posibilidad de cambiar el mecanismo a través del cual la ONU mide la cantidad de hectáreas de cultivos de coca en Colombia. ¿La ONU está dispuesta a eso? Porque el Presiente además planteó hace algunas semanas la posibilidad de comprar los cultivos de coca a los campesinos para tratar de enfrentar el tema de narcotráfico. A la ONU ¿le suena, le gusta, le parece esta idea en torno al tráfico de drogas?

Answer: Hay convenciones sobre drogas y la ONU está vinculada a esas convenciones. Pero creo que es importante abrir la puerta a una reflexión muy seria en un mundo donde vemos que desafortunadamente el tráfico de drogas es simultáneo con el tráfico de armas, de muchos otras formas incluso de tráfico de mujeres, hombres y niños. Y que ese tráfico está minando en muchos países la estructura del Estado, por la corrupción generada.

Entonces creo que el apelo del Presidente Petro a una reflexión sobre los mecanismos que hoy tenemos en relación con el combate al narcotráfico y en relación con la droga, creo que el apelo que es hecho a una reflexión sobre la eficacia sobre los mecanismos que tenemos es un apelo que debe ser escuchado. Yo no conozco en detalle el proyecto, pero si la compra es hecha para después ser utilizada de una forma positiva, ¿puede impedir el tráfico no?

Si eso puede garantizar que haya una neutralización de esa producción y que esa producción no alimente al tráfico. Pero naturalmente el objetivo nuestro tiene que ser un objetivo de preservar la salud de la gente de todo el mundo. Muchas gracias.

MIL OSI United Nations News –

January 25, 2025
MIL-OSI Global: What Labour’s first budget means for wages, businesses, the NHS and plans to grow the economy – experts explain

Source: The Conversation – UK – By Linda Yueh, Fellow in Economics/Adjunct Professor of Economics, University of Oxford

For the first time in 14 years, it was a Labour chancellor who delivered the UK budget. And for the first time ever, that chancellor was a woman. But Rachel Reeves faces an almighty task: plugging a £40 billion spending gap in the knowledge that pre-election promises not to raise the main taxes are still fresh in people’s memories.

Growth was the buzzword of the election campaign – Reeves now had to lay her cards on the table. So here’s what our panel of experts made of the plans:

More challenges for employers and small businesses

Shampa Roy-Mukherjee, Associate Professor in Economics, University of East London

The budget introduces £40 billion in tax hikes and, in some areas, spending cuts that will put pressure on the economy and business in particular. But it also reflects the government’s focus on economic growth, with policies intended to stabilise finances while addressing some of the concerns of small businesses.

The chancellor has retained her commitment to preserve the rates of income tax, employee national insurance and VAT. But a notable change is the increase in employers’ national insurance contributions (NICs) from 13.8% to 15%.

There was also a reduction in the secondary threshold, which is the amount at which the employer starts paying NI on each employee, from £9,100 to £5,000. Altogether this will raise £25 billion annually but will significantly impact many businesses that will now face higher wage bills.

The national living wage is also rising by 6.7% to £12.21 per hour in April 2025, boosting incomes for about three million workers but again increasing costs for many businesses. These rising taxes and wage increases, alongside incoming employment regulations, will strain businesses, particularly in sectors with high labour demands.

To offset some of these pressures, the employment allowance, which allows some smaller employers to reduce their NICs, has been raised from £5,000 to £10,500. The chancellor said that over 1 million employers will not see their NICs bill rise as a result.

Small businesses in retail, hospitality and leisure, where profits have been hit as consumers struggle with the cost of living, will benefit from a 40% business rate relief on properties up to £110,000. Other supportive measures include a continued freeze on fuel duty, which will aid logistics and transport costs. Corporation tax remains fixed at 25%.

Higher wages for three million, but it could cost more to get the bus to work

The biggest change for those on low incomes was an increase in the national minimum wage (for 18 to 20-year-olds) of 16.3%, from £8.60 to £10 an hour, and an increase in the national living wage (for employees aged 21 and over) of 6.7%, from £11.44 to £12.21, from April 2025. This will lead to a pay rise for more than 3 million workers.

Business associations warn that this will cause job losses, particularly in hospitality and the care sector, where many employees earn the minimum wage. But a large body of research has not found a negative effect of minimum wages on employment.

There is some evidence that earlier minimum wage rises caused an increase in the number of zero-hours contracts in social care, as firms tried other ways to reduce wages. However, the new employment rights bill introduced earlier in October would limit the use of zero-hours contracts in this scenario.

The budget could have an indirect effect on pay packets though. The effect of the change to employer NICs will be greater in sectors with more low-paid workers, such as hospitality, and employer associations have warned that it will risk jobs. There is also some evidence that in the long term, firms pass some of these costs on to employees by reducing their wages.

However, the minimum wage increase will reduce the capacity for firms to reduce wages. And any long-term effect would also be offset by lower income taxes that will come after 2028 when the chancellor has said she will increase the threshold at which people starting paying tax.

So if wages and profits fall because of increased contributions, then the amount Reeves raises will be lower than expected, because income and corporation tax receipts will be hit.

Another indirect factor affecting incomes is the cost of getting to work. The fuel duty freeze will continue, but the bus fare cap will increase from £2 to £3. Lower-paid workers and jobseekers are much more likely to use the bus than those with higher incomes, who are more likely to drive, but the cost of bus travel increased much more than the cost of train travel or petrol over the last parliament.

At the next stop they’re putting up bus fares.
Mistervlad/Shutterstock

The fare cap reversed some of this increase, and some evidence shows that it led to more people travelling by bus. But the new £3 cap will only last until the end of 2025, which may be too soon to see much effect.

A downpayment on growth – but probably not quickly

Linda Yueh, Adjunct Professor of Economics, University of Oxford

The chancellor declared that the government will “invest, invest, invest”. This is an important enabler of economic growth.

But, the country’s creditors need reassuring, so Reeves also announced two new fiscal rules that aim to achieve that balance of allowing the government to borrow to invest (and generate growth), but not to pay for day-to-day spending.

Specifically, the investment rule permits borrowing to invest and the stability rule requires day-to-day spending to be paid for by taxes. Both rules support the government’s growth aims while trying to reassure the country’s creditors that the borrowing will pay off by generating future growth – and also higher tax receipts with which to repay that borrowing.

But spending watchdog the Office for Budget Responsibility (OBR) has downgraded the UK’s GDP growth outlook from 2% to 1.8% in 2026, and to 1.5% in 2027 and 2028. The OBR’s forecast of slower growth highlights the impact of the £40 billion of tax increases, which dampens economic activity.

This underscores the government’s challenge of investing to grow while at the same having to raise taxes to balance the books when it comes to its daily spending. In particular, the OBR’s assessment of slowing growth towards the middle of this parliament raises questions about how long it will take for the investment-fuelled growth to materialise.

It may be that five years is still too short a period. Many physical investments require planning and those reforms could also take a while. Moreover, getting investment projects under way requires scoping, and private investors will want time to assess before joining the government in energy projects.

But this budget is certainly a start on a much-needed growth strategy.

Good news on public investment – emerging industries could benefit

Phil Tomlinson, Professor of Industrial Strategy, University of Bath

The key budget change related to the chancellor’s fiscal rules. By redefining how public debt is calculated, Reeves has been able to increase public investment by around £100 billion. The new fiscal rules have gone not as far as some economists have advocated – but they are a welcome step in the right direction.

Investment was the core focus of the budget. For decades, the UK has suffered from low investment and weak productivity compared to other leading economies. Since 1990, the UK’s investment gap with the average across rich countries in the Organisation for Economic Co-operation and Development (OECD) has been around £35 billion a year – the UK now ranks 28th of 31 OECD countries on business investment. British workers are using outdated kit and so are less productive. This has meant a stagnant economy and lower living standards.

So, the budget’s plans to boost investment in the UK’s crumbling infrastructure and public services and to support the new industrial strategy are a positive move. The latter should see additional funding to support emerging tech industries, such as artificial intelligence, cyber and clean energy. And this public investment should “crowd in” additional private investment.

Clean energy boost?
StudioFI/Shutterstock

In the long run, these investments should pay for themselves. For instance, the Office for Budget Responsibility estimates that a sustained increase in public investment of 1% of GDP increases that GDP by 0.5% after five years and more than 2% after ten to 15 years.

The rise in employer national insurance contributions will increase business’s operating costs, especially those in the care and hospitality sectors. But paradoxically, in the long run, it may encourage some businesses (in sectors where it is feasible) to invest in new labour-saving capital equipment.

Read more:
Rachel Reeves is the UK’s first female chancellor. Here’s why that’s so significant

The NHS gets a cash injection – but it may not go that far

Karen Bloor, Professor of Health Economics and Policy, University of York

Amid all the gloomy pre-budget talk of tough choices and economic problems, would the government’s plans to improve the NHS cheer up the country (England, at least)? Not entirely.

On the plus side, the chancellor promised a generous spending increase of £22.6 billion in the year 2025 to 2026, with £3.1 billion on capital investment. But solving the problems of the NHS is not just about money, and there will be difficult decisions to come.

Meanwhile, increases in employers’ national insurance contributions, while raising funds, will also have a big impact on the NHS, which employs over 1.5 million people. So the additional spending may be less than it appears.

The new government has said it has three main priorities for healthcare in England: moving care from hospitals to the community, moving resources from treatment to prevention, and changing systems from analogue to digital. None of these ideas are new, and there are good reasons why they haven’t happened already.

Expanding primary and community care often does not translate into reduced demand for hospital services – in fact, it can do the opposite, by uncovering previously unmet needs. And successive governments have failed to address long-standing problems in social care, which is crucial to addressing pressures on the NHS. A successful NHS means people living longer, but often with long-term health problems.

Returns on investment in preventing illness can be substantial, but they vary widely, and can be difficult to achieve. This is particularly true when it comes to interventions needing individual behaviour change, such as increasing exercise or cutting down on alcohol. Even when clearly positive, they take a very long time to generate cost savings.

And there are other aspects of the chancellor’s plans which could arguably harm public health. Abolition of winter fuel payments for example, could affect the health of older people on low incomes.

Rising bus fares could affect people’s ability to attend appointments, and the controversial two-child benefit cap, which can affect child health remains in place.

Finally, while technology should improve the efficiency of services, people need care from people. Capital investment – in scanners, radiotherapy machines and diagnostics – will need to be matched by the cost of the professionals who operate them and interpret their findings.

More reaction to be published soon.

Karen Bloor receives funding from the NIHR policy research programme to conduct responsive analysis for the Department of Health and Social Care,

Phil Tomlinson receives funding from the Engineering and Physical Sciences Research Council (EPSRC) for Made Smarter Innovation: Centre for People-Led Digitalisation.

Rachel Scarfe is a member of the Labour Party.

Jonquil Lowe, Linda Yueh, and Shampa Roy-Mukherjee do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. What Labour’s first budget means for wages, businesses, the NHS and plans to grow the economy – experts explain – https://theconversation.com/what-labours-first-budget-means-for-wages-businesses-the-nhs-and-plans-to-grow-the-economy-experts-explain-242509

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI United Kingdom: A Budget to fix the foundations and deliver change for Wales
Source: United Kingdom – Executive Government & Departments

Chancellor takes long-term decisions to restore stability, rebuild Britain and protect working people across Wales.
HM Treasury

Chancellor takes long-term decisions to restore stability, rebuild Britain and protect working people across Wales.

No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.

Record £21 billion for the Welsh Government in 2025/26 includes £1.7 billion through the Barnett formula.

Funding for freeports, City and Growth Deals and coal tips to fire up growth and deliver good jobs across Wales.

The Chancellor has delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation. She set out plans to rebuild Britain, while ensuring working people across Wales don’t face higher taxes in their payslips. The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.

This Budget takes difficult decisions to restore economic and fiscal stability, so that the UK Government can invest in the economic future of Wales and lay the foundations for growth across the UK as its number one mission.

The Chancellor announced that the Welsh Government will be provided with a £21 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £1.7 billion top-up through the Barnett formula, with £1.5 billion for day-to-day spending and £250 million for capital investment.

Secretary of State for Wales Jo Stevens said:

This Budget has delivered for Wales for the first time in a generation.

The biggest settlement since devolution will provide a record boost to spending for the Welsh Government to support public services like the NHS while thousands of working people across Wales will benefit from today’s increases to their wages.

Little more than a week after the anniversary of Aberfan disaster it is fitting that we have committed £25m to make coal tips safe. It is testament to the new relationship between the UK and Welsh government, based on cooperation, respect and delivery.

We will also drive economic growth and support our world-leading Welsh industries with Investment Zones, Freeports and funding for communities across Wales.

We have prioritised money to support our steel communities, with nearly £100m to support workers and businesses.

This Budget delivers on what’s important to the people of Wales, and shows the difference we can make when two governments work together for the benefit of all.

Protecting working people and living standards

While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Wales, meaning they will not see higher taxes in their payslip.

The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.

The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.

Working people will benefit from these increases, with there estimated to be over 70,000 minimum wage workers in Wales in 2023.

The Chancellor has made the decision to protect working people in Wales from being dragged into higher tax brackets by confirming that National Insurance Contributions thresholds will be unfrozen from 2028-29 onwards.

The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 2.1 million people in Wales, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.

To support Welsh pubs and smaller brewers in Wales, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.

Over 600,000 Welsh pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.

Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 80,000 pensioners in Wales.

Around 1.1 million families in in Wales will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.

Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Welsh family by over £420 a year on average.

The weekly earnings limit for Carer’s Allowance will be increased by £45 a week from April next year, expanding support to more carers in Wales and helping them balance work and caring responsibilities. This is the largest ever increase to the earnings limit and provides certainty for carers with a commitment that the earnings limit will increase with the National Living Wage in the future.

Rebuilding Britain

This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Wales. This includes £160 million of targeted funding for the Welsh Government, of which £150 million is in capital investment.

The UK Government will deliver £88 million for City and Growth Deals, unlocking growth and investment across Wales.

The government also confirms £80 million funding for the Port Talbot / Tata Steel Transition Board, with work already underway to support workers and businesses affected by decarbonisation at Tata Steel.

£29 million of funding will be provided to the Welsh Government for the necessary build costs of border facilities in Holyhead and Pembrokeshire.

Essential work being undertaken by the Welsh Government to keep disused coal tips maintained and safe will be supported by £25 million of funding in 2025/26.

The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including the Celtic Freeport where tax sites will be operational from next month.

The Chancellor committed the UK Government to working closely with the Welsh Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.

Under-served parts of Wales will benefit from the rollout of digital infrastructure enabled by over £500 million of UK-wide investment in Project Gigabit and the Shared Rural Network.

A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation.

The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Wales’ thriving cultural sector.

Repairing public finances

The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.

The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.

The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Welsh firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.

Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.

To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.

The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.

The OBR say changes to CGT will raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.

Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.

From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.

From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%.

The Budget also announced a package of measures that disincentivise activities that cause ill health, by:

Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%). 

Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking.

To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.

The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.

The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:

A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.

Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.

The planned 50% reduction for foreign income in the first year of the new regime will be removed.

Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.

The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.

The UK Government will also introduce 20% VAT on education and boarding services provided for a charge by private schools from 1 January 2025.

The Chancellor also doubled down on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.

One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Welsh Government greater clarity for in its own budget-setting. A Fiscal Lock will also ensure no future government can sideline the OBR again.

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Published 30 October 2024
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI Global: What Labour’s first budget means for wages, taxes, business, the NHS and plans to grow the economy – experts explain

Source: The Conversation – UK – By Linda Yueh, Fellow in Economics/Adjunct Professor of Economics, University of Oxford

For the first time in 14 years, it was a Labour chancellor who delivered the UK budget. And for the first time ever, that chancellor was a woman. But Rachel Reeves faces an almighty task: plugging a £40 billion spending gap in the knowledge that pre-election promises not to raise the main taxes are still fresh in people’s memories.

Growth was the buzzword of the election campaign – Reeves now had to lay her cards on the table. So here’s what our panel of experts made of the plans:

More challenges for employers and small businesses

Shampa Roy-Mukherjee, Associate Professor in Economics, University of East London

The budget introduces £40 billion in tax hikes and, in some areas, spending cuts that will put pressure on the economy and business in particular. But it also reflects the government’s focus on economic growth, with policies intended to stabilise finances while addressing some of the concerns of small businesses.

The chancellor has retained her commitment to preserve the rates of income tax, employee national insurance and VAT. But a notable change is the increase in employers’ national insurance contributions (NICs) from 13.8% to 15%.

There was also a reduction in the secondary threshold, which is the amount at which the employer starts paying NI on each employee, from £9,100 to £5,000. Altogether this will raise £25 billion annually but will significantly impact many businesses that will now face higher wage bills.

The national living wage is also rising by 6.7% to £12.21 per hour in April 2025, boosting incomes for about three million workers but again increasing costs for many businesses. These rising taxes and wage increases, alongside incoming employment regulations, will strain businesses, particularly in sectors with high labour demands.

To offset some of these pressures, the employment allowance, which allows some smaller employers to reduce their NICs, has been raised from £5,000 to £10,500. The chancellor said that over 1 million employers will not see their NICs bill rise as a result.

Small businesses in retail, hospitality and leisure, where profits have been hit as consumers struggle with the cost of living, will benefit from a 40% business rate relief on properties up to £110,000. Other supportive measures include a continued freeze on fuel duty, which will aid logistics and transport costs. Corporation tax remains fixed at 25%.

At the next stop they’re putting up bus fares.
Mistervlad/Shutterstock

Higher wages for three million, but it could cost more to get the bus to work

Rachel Scarfe, Lecturer in Economics, University of Stirling

The biggest change for those on low incomes was an increase in the national minimum wage (for 18 to 20-year-olds) of 16.3%, from £8.60 to £10 an hour, and an increase in the national living wage (for employees aged 21 and over) of 6.7%, from £11.44 to £12.21, from April 2025. This will lead to a pay rise for more than 3 million workers.

Business associations warn that this will cause job losses, particularly in hospitality and the care sector, where many employees earn the minimum wage. But a large body of research has not found a negative effect of minimum wages on employment.

There is some evidence that earlier minimum wage rises caused an increase in the number of zero-hours contracts in social care, as firms tried other ways to reduce wages. However, the new employment rights bill introduced earlier in October would limit the use of zero-hours contracts in this scenario.

The budget could have an indirect effect on pay packets though. The effect of the change to employer NICs will be greater in sectors with more low-paid workers, such as hospitality, and employer associations have warned that it will risk jobs. There is also some evidence that in the long term, firms pass some of these costs on to employees by reducing their wages.

However, the minimum wage increase will reduce the capacity for firms to reduce wages. And any long-term effect would also be offset by lower income taxes that will come after 2028 when the chancellor has said she will increase the threshold at which people starting paying tax.

So if wages and profits fall because of increased contributions, then the amount Reeves raises will be lower than expected, because income and corporation tax receipts will be hit.

Another indirect factor affecting incomes is the cost of getting to work. The fuel duty freeze will continue, but the bus fare cap will increase from £2 to £3. Lower-paid workers and jobseekers are much more likely to use the bus than those with higher incomes, who are more likely to drive, but the cost of bus travel increased much more than the cost of train travel or petrol over the last parliament.

The fare cap reversed some of this increase, and some evidence shows that it led to more people travelling by bus. But the new £3 cap will only last until the end of 2025, which may be too soon to see much effect.

Second thoughts about that second home?
Andrew Roland/Shutterstock

Taxing times for the wealthy

Jonquil Lowe, Senior Lecturer in Economics and Personal Finance, The Open University

As expected, the budget targeted several wealth taxes, including capital gains tax (CGT), which is charged on profits you make when you “dispose of” (sell or give away) an asset. The first slice of such profits (£3,000 in 2024-25) is tax-free. Profit above that is added to your income to determine what rate will apply: a lower rate for profit covered by the basic income tax rate band and a higher rate on anything more.

Reeves announced that CGT rates on financial assets – things like shares – will immediately increase from 10% to 18% (for the lower rate) and from 18% to 24% (for the higher rate). Financial assets account for around 85% of all disposals within the scope of CGT, but only around 350,000 people a year pay the tax.

This brings the rates on financial assets into line with residential property, such as a second home. (There is no CGT when you sell or give away your only or main home.) But this still leaves wealth taxed less heavily than income.

The government says it is committed to tackling the UK’s housing shortage. So to deter multiple home ownership, it has raised stamp duty for people buying a second (or third or fourth) home. Purchases completed will now incur an extra 5% tax (currently 3%) over and above the normal stamp duty rates.

There were also changes to inheritance tax (IHT). Pension savings left unused at death have in recent years been passed on tax free. But from April 2027, the savings will count as part of the estate and be subject to IHT at a rate of up to 40%.

The first slice of the estate a person leaves, called the nil-rate band, is IHT-free, and that band has been frozen at £325,000 since 2010. Reeves extended the freeze until April 2030.

As a result of these changes, the government expects almost 6% of estates to pay IHT this year, up from fewer than 5% in recent years. People in London and the south east are more likely to be IHT-payers, largely due to higher property values in those areas.

A downpayment on growth – but probably not quickly

Linda Yueh, Adjunct Professor of Economics, University of Oxford

The chancellor declared that the government will “invest, invest, invest”. This is an important enabler of economic growth.

But, the country’s creditors need reassuring, so Reeves also announced two new fiscal rules that aim to achieve that balance of allowing the government to borrow to invest (and generate growth), but not to pay for day-to-day spending.

Specifically, the investment rule permits borrowing to invest and the stability rule requires day-to-day spending to be paid for by taxes. Both rules support the government’s growth aims while trying to reassure the country’s creditors that the borrowing will pay off by generating future growth – and also higher tax receipts with which to repay that borrowing.

But spending watchdog the Office for Budget Responsibility (OBR) has downgraded the UK’s GDP growth outlook from 2% to 1.8% in 2026, and to 1.5% in 2027 and 2028. The OBR’s forecast of slower growth highlights the impact of the £40 billion of tax increases, which dampens economic activity.

This underscores the government’s challenge of investing to grow while at the same having to raise taxes to balance the books when it comes to its daily spending. In particular, the OBR’s assessment of slowing growth towards the middle of this parliament raises questions about how long it will take for the investment-fuelled growth to materialise.

It may be that five years is still too short a period. Many physical investments require planning and those reforms could also take a while. Moreover, getting investment projects under way requires scoping, and private investors will want time to assess before joining the government in energy projects.

But this budget is certainly a start on a much-needed growth strategy.

Clean energy boost?
StudioFI/Shutterstock

Good news on public investment – emerging industries could benefit

Phil Tomlinson, Professor of Industrial Strategy, University of Bath

The key budget change related to the chancellor’s fiscal rules. By redefining how public debt is calculated, Reeves has been able to increase public investment by around £100 billion. The new fiscal rules have gone not as far as some economists have advocated – but they are a welcome step in the right direction.

Investment was the core focus of the budget. For decades, the UK has suffered from low investment and weak productivity compared to other leading economies. Since 1990, the UK’s investment gap with the average across rich countries in the Organisation for Economic Co-operation and Development (OECD) has been around £35 billion a year – the UK now ranks 28th of 31 OECD countries on business investment. British workers are using outdated kit and so are less productive. This has meant a stagnant economy and lower living standards.

So, the budget’s plans to boost investment in the UK’s crumbling infrastructure and public services and to support the new industrial strategy are a positive move. The latter should see additional funding to support emerging tech industries, such as artificial intelligence, cyber and clean energy. And this public investment should “crowd in” additional private investment.

In the long run, these investments should pay for themselves. For instance, the Office for Budget Responsibility estimates that a sustained increase in public investment of 1% of GDP increases that GDP by 0.5% after five years and more than 2% after ten to 15 years.

The rise in employer national insurance contributions will increase business’s operating costs, especially those in the care and hospitality sectors. But paradoxically, in the long run, it may encourage some businesses (in sectors where it is feasible) to invest in new labour-saving capital equipment.

Read more:
Rachel Reeves is the UK’s first female chancellor. Here’s why that’s so significant

The NHS gets a cash injection – but it may not go that far

Karen Bloor, Professor of Health Economics and Policy, University of York

Amid all the gloomy pre-budget talk of tough choices and economic problems, would the government’s plans to improve the NHS cheer up the country (England, at least)? Not entirely.

On the plus side, the chancellor promised a generous spending increase of £22.6 billion in the year 2025 to 2026, with £3.1 billion on capital investment. But solving the problems of the NHS is not just about money, and there will be difficult decisions to come.

Meanwhile, increases in employers’ national insurance contributions, while raising funds, will also have a big impact on the NHS, which employs over 1.5 million people. So the additional spending may be less than it appears.

The new government has said it has three main priorities for healthcare in England: moving care from hospitals to the community, moving resources from treatment to prevention, and changing systems from analogue to digital. None of these ideas are new, and there are good reasons why they haven’t happened already.

Expanding primary and community care often does not translate into reduced demand for hospital services – in fact, it can do the opposite, by uncovering previously unmet needs. And successive governments have failed to address long-standing problems in social care, which is crucial to addressing pressures on the NHS. A successful NHS means people living longer, but often with long-term health problems.

Returns on investment in preventing illness can be substantial, but they vary widely, and can be difficult to achieve. This is particularly true when it comes to interventions needing individual behaviour change, such as increasing exercise or cutting down on alcohol. Even when clearly positive, they take a very long time to generate cost savings.

And there are other aspects of the chancellor’s plans which could arguably harm public health. Abolition of winter fuel payments for example, could affect the health of older people on low incomes.

Rising bus fares could affect people’s ability to attend appointments, and the controversial two-child benefit cap, which can affect child health remains in place.

Finally, while technology should improve the efficiency of services, people need care from people. Capital investment – in scanners, radiotherapy machines and diagnostics – will need to be matched by the cost of the professionals who operate them and interpret their findings.

Karen Bloor receives funding from the NIHR policy research programme to conduct responsive analysis for the Department of Health and Social Care,

Phil Tomlinson receives funding from the Engineering and Physical Sciences Research Council (EPSRC) for Made Smarter Innovation: Centre for People-Led Digitalisation.

Rachel Scarfe is a member of the Labour Party.

Jonquil Lowe, Linda Yueh, and Shampa Roy-Mukherjee do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. What Labour’s first budget means for wages, taxes, business, the NHS and plans to grow the economy – experts explain – https://theconversation.com/what-labours-first-budget-means-for-wages-taxes-business-the-nhs-and-plans-to-grow-the-economy-experts-explain-242509

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI USA: Attorney General James Leads Multistate Coalition Backing National Ban on Price Gouging

Source: US State of New York

NEW YORK – New York Attorney General Letitia James today led a coalition of 15 attorneys general urging Congressional leaders to support a ban on price gouging at the national level. While over 40 states ban price gouging, there is no federal law preventing businesses from raising prices to increase their profits on essential goods during an emergency. In a letter to Congressional leaders, Attorney General James and the coalition argued that a national ban on price gouging would give the federal government the power to crack down on price gouging that cannot be stopped by a single state, and allow states and the federal government to work together to stop illegal price gouging in national supply chains.

“Businesses should never be able to hike prices during an emergency just to increase their profits,” said Attorney General James. “When companies take advantage of major disruptions and raise prices of food and supplies that New Yorkers rely on, my office holds them accountable, getting people their money back and protecting their wallets. Our federal government should have the same power to protect Americans when disaster strikes and stop price gouging at the national level that threatens both hardworking families and small businesses.”

Bans on price gouging let businesses raise prices to cover costs but prevent them from raising prices further solely to increase their profits during an emergency. Attorney General James and the coalition argue in their letter that prohibiting price gouging benefits both consumers and businesses. First, it encourages much-needed production at critical times by only allowing businesses to make more money by selling more products, instead of by raising prices. Second, it prevents businesses from risking long-term harm and reputational damage by overreacting in an emergency and setting prices too high. Third, it discourages hoarding in an emergency, since rising prices can prompt customers to over-buy. Fourth, price gouging bans protect consumers from monopolists who can raise prices without worrying about consumers’ reactions or being undercut by a competitor.

The COVID-19 pandemic and the onset of war in Ukraine disrupted supply chains at the national level, creating opportunities for price gouging that were sometimes out of reach from individual states. Attorney General James and the coalition argue in their letter that a federal ban would complement states’ anti-price gouging measures to help stop price gouging at the national level.

As Attorney General James and the coalition note, attorneys general have successfully stopped price gouging at the state level, demonstrating a clear need for national enforcement to complement these efforts. In New York, Attorney General James has secured decisive settlements with companies for illegally raising prices during emergencies, including the COVID-19 pandemic. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City as part of a settlement with Walgreens for illegally raising prices of baby formula during the 2022 shortage. In May 2023, Attorney General James recovered $100,000 from Quality King for price gouging Lysol products at the beginning of the COVID-19 pandemic. In April 2021, Attorney General James secured 1.2 million eggs for New Yorkers from Hillandale Farms Corporation as part of a settlement resolving a lawsuit brought by the Office of the Attorney General (OAG) in August 2020 for illegally gouging egg prices in the early months of the pandemic.

In March 2023, Attorney General James proposed new rules to protect consumers and small businesses by making it easier for OAG to investigate and combat price gouging. Throughout the pandemic, during major disruptions, and ahead of recent declared disasters, Attorney General James has issued consumer warnings against price gouging on essential supplies.

Joining Attorney General James in sending the letter to Congress are the attorneys general of California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, and the District of Columbia.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: South Carolinians Affected by Hurricane Helene Can Apply for FEMA Assistance and SBA Disaster Loan at the Same Time

Source: US Federal Emergency Management Agency

Headline: South Carolinians Affected by Hurricane Helene Can Apply for FEMA Assistance and SBA Disaster Loan at the Same Time

South Carolinians Affected by Hurricane Helene Can Apply for FEMA Assistance and SBA Disaster Loan at the Same Time

In addition to applying for FEMA assistance, homeowners and renters in designated South Carolina counties have the option to apply for a low-interest disaster loan from the U.S. Small Business Administration at various stages of their recovery. While FEMA doesn’t require survivors to apply for an SBA loan before being considered for FEMA assistance, the SBA can offer financial support to individuals and business owners to aid their recovery.Homeowners and renters in Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Hampton, Jasper, Kershaw, Laurens, Lexington, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Union and York counties and the Catawba Indian Nation can apply for federal assistance.How To Apply for FEMA AssistanceThe quickest way to apply is to go online to DisasterAssistance.gov.To get in-person assistance, you can visit any Disaster Recovery Center. To find a center close to you, please go to fema.gov/drc or text “DRC” and a Zip Code to 43362. You can also apply using the FEMA App for mobile devices or calling toll-free 800-621-3362. The telephone line is open every day. Help is available in many languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. For a video with American Sign Language, voiceover and open captions about how to apply for FEMA assistance, select this link FEMA programs are accessible to survivors with disabilities and others with access and functional needs. FEMA assistance is available for people with disabilities and others with access and functional needs.How To Apply for SBA Disaster LoansThe SBA offers disaster loans to assist businesses, private nonprofits, homeowners and renters with their recovery. Homeowners and renters are eligible to apply for disaster loans to repair or replace disaster-damaged or destroyed real estate and damaged or destroyed personal property. Businesses and nonprofits are eligible to apply for loans to cover physical damage. Economic Injury Disaster Loans (EIDLs) are also available to qualified businesses and nonprofits to help meet working capital needs caused by the disaster.
dalton.kramer
Wed, 10/30/2024 – 18:38

MIL OSI USA News –

January 25, 2025
MIL-OSI: MEF Honors Industry Leaders at GNE 2024
Source: GlobeNewswire (MIL-OSI)

DALLAS, Texas, Oct. 30, 2024 (GLOBE NEWSWIRE) — MEF, a global industry association of network, cloud, security, and technology providers accelerating enterprise digital transformation, today announced winners of its 2024 MEF NaaS Excellence Awards. These awards recognize outstanding achievements by service providers, technology providers, and professionals pioneering the future of digital services in an ecosystem optimized for a cloud-driven experience.

Winners were unveiled at MEF’s Global Network-as-a-Service Event (GNE) happening this week in Dallas, Texas and selected by a distinguished panel of senior industry analysts from ACG Research, Analysys Mason, Appledore Research, Atlantic-ACM, AvidThink, Dell’Oro Group, Frost & Sullivan, IDC, Omdia, TeleGeography, and Vertical Systems Group.

“We are thrilled to announce the winners of the 2024 MEF NaaS Excellence Awards, celebrating the visionaries advancing the automated network ecosystem,” said Nan Chen, CEO, MEF. “As the industry shifts toward dynamic, cloud-based service models, these awards recognize the achievements of the companies and individuals whose dedication and innovation are shaping the future of digital communications. This year’s honorees exemplify leadership and commitment to a future-ready, cloud-optimized ecosystem.”

2024 MEF Excellence Awards Winners

Service Provider Category:

NaaS Service Provider of the Year
- Global – Colt Technology Services
- Europe – Colt Technology Services
- North America – Lumen Technologies
- Asia Pacific – Console Connect
- Latin America – Ufinet
Best NaaS Vision
- Colt Technology Services
MEF 3.0 CE Service Provider of the Year
- Global – Tie: Verizon Business and Tata Communications
- Europe – Comcast Business
- North America – Verizon Business
- Asia Pacific – Tata Communications
- Latin America – Ufinet
Secure Access Service Edge (SASE) Service Provider of the Year
- Global – AT&T
- Europe – Sparkle
- North America – AT&T
- Asia Pacific – Tata Communications
- Latin America – Cirion Technologies
SD-WAN Service Provider of the Year
- Global – AT&T
- Europe – Colt Technology Services
- North America – AT&T
- Asia Pacific – Tata Communications
- Latin America – Cirion Technologies
- Middle East / Africa – CMC Networks
Service Automation Leadership
- Global – AT&T
- Europe – Colt Technology Services
- Asia Pacific – Console Connect
- Latin America – Orchest Technologies
Best Services Ecosystem Automation Platform
- Colt Technology Services
Technology Provider Category:

Network Technology Vendor of the Year

Best NaaS Vision

SASE Vendor of the Year

SD-WAN Vendor of the Year

LSO Solution Provider of the Year

Most Impactful Service Automation Vendor
- Netcracker Technology
Most Innovative Service Automation Vendor
- InsidePacket
NaaS Accelerator Live Best of Show
- Silent Comet – Amartus, NTT Communications, Tata Communications
Professional Awards:

MEF Distinguished Fellow
- Isabelle Morency, Head of Engineering and Standards, Iometrix
Michael Howard Industry Impact Award
- Roy Chua, Founder and Principal Analyst, AvidThink
Industry Executive of the Year
- Kelly Ahuja, CEO, Versa Networks
For more information, please visit https://www.mef.net.

About MEF
MEF is a global consortium of service, cloud, cybersecurity, and technology providers collaborating to accelerate enterprise digital transformation. It delivers standards-based frameworks, services, technologies, APIs, and certification programs to enable Network-as-a-Service (NaaS) across an automated ecosystem. MEF is the defining authority for certified Lifecycle Service Orchestration (LSO) business and operational APIs and Carrier Ethernet, SASE, SD-WAN, Zero Trust, and Security Service Edge (SSE) technologies and services. MEF’s Global NaaS Event (GNE) convenes industry leaders building and delivering the next generation of NaaS solutions. For more information about MEF, visit MEF.net and follow us on LinkedIn and Twitter. 

Media Contact:
Melissa Power
MEF
pr@mef.net

The MIL Network –
January 25, 2025
MIL-OSI Russia: SUM Renews Traditions: The University Hosted the D.S. Lvov National Economic Forum

Translation. Region: Russian Federation –

Source: State University of Management – Official website of the State –

On October 30, 2024, the National Economic Forum named after D.S. Lvov was held at the Information Technology Center of the State University of Management, within the framework of which a new master’s educational program of the Eurasian Network University “Economics of Integration Processes in the Eurasian Economic Union” was opened.

The plenary session was attended by: Vice-Rector of the State University of Management Maria Karelina, Co-Chair of the Forum, Corresponding Member of the Russian Academy of Sciences, Head of the Department of Institutional Economics of the State University of Management Georgy Kleiner, Corresponding Member of the Russian Academy of Sciences, Director of the Central Economics and Mathematics Institute of the Russian Academy of Sciences Albert Bakhtizin, Head of the Scientific Direction “Macroeconomics and Institutional Theory” of the Central Economics and Mathematics Institute of the Russian Academy of Sciences Viktor Dementyev, Director of the Department of Support of New Businesses of the State Corporation “Rosatom” Dmitry Baidarov, Academician of the Russian Academy of Sciences, Head of the Department of Economic Policy and Economic Measurements of the Institute of Economics and Finance of the State University of Management Sergey Glazyev. The moderator was Director of the IEF of the State University of Management Galina Sorokina.

The renewal of the tradition of holding the Forum will allow the State University of Management to advance in economic science. This was stated by the Vice-Rector of the State University of Management Maria Karelina. Addressing all participants, students of Academician Dmitry Lvov and future economists, she also noted that this decision will contribute to interdisciplinary research, which is especially relevant today.

It should be noted that this year marks the 70th anniversary of Dmitry Lvov’s graduation from the Moscow Ordzhonikidze Engineering and Economics Institute (now the State University of Management). The head of the Department of Institutional Economics at our university, Georgy Kleiner, delivered a report to the audience. Georgy Borisovich drew attention to the fact that not many economists offered their economic paradigm to the world. Academician Lvov saw the essence of economics in the fusion of material factors, spiritual quests, emotions and institutional influences. It is thanks to this science that we are a society. A person is not only the main resource of the economy, but also a beneficiary, a source of progress. He should not be a hostage to the economic system, but a part of it. Dmitry Lvov’s key idea was that the economy should be a link between man and humanity. It was to study such global issues that Academician Lvov created the first Department of Institutional Economics in Russia at the State University of Management.

During the active work of Dmitry Lvov, the Internet had not yet penetrated into all spheres of life, but today the academician’s speeches would be constantly on everyone’s lips, because he outraged the space with uncomfortable questions. This was very subtly noted by the director of the Central Economics and Mathematics Institute of the Russian Academy of Sciences, Albert Bakhtizin. Back in 2004, he drew attention to the depopulation of Russia, the unfair division of resources, noted the importance of contacts with China, described the instruments of pressure of the USA on other countries, that is, he saw the contours of the future world order. The speaker analyzed modern economic problems in detail, in particular, he noted that even experts in the USA understand how harmful excessive dollarization is for the world economy.

Viktor Dementyev, head of the Macroeconomics and Institutional Theory research department at the Central Economics and Mathematics Institute of the Russian Academy of Sciences, gave a report on the topic of “The Resilience of Russian Regional Economies under Different Shocks.” According to him, the modern economy has experienced four shocks: the Great Recession of 2009, the sanctions wave of 2015, the pandemic, and, of course, the second wave of sanctions, which is still ongoing. Research has shown that entities that are resilient to one shock are also resilient to others. But at the same time, methods for successfully overcoming one crisis do not always work under another.

Dmitry Baidarov, Director of the Department for Support of New Businesses at the Rosatom State Corporation, expressed the opinion that economic challenges facing Russia did not appear after the start of the SVO or during the pandemic – they have always been there, it’s just that the attitude towards them was different before. The history of Rosatom shows that if you pay attention to a gap in the economy in time, you can quickly and effectively fill it. For example, the corporation currently fulfills 88% of global orders for the construction of nuclear power facilities. Dmitry Baidarov regretfully noted that the paradigm of a competitive rather than a partnership economy, imported from outside, still prevails in Russia. The speaker said that Rosatom only realized two years ago how much engineers and economists are needed in production, and there are almost none left on the labor market, so the focus of the State University of Management on training just such specialists is very timely.

Sergey Glazyev, Head of the Department of Economic Policy and Economic Measurements at the Institute of Economics and Finance at the State University of Management, said that Dmitry Lvov was his academic advisor, with whom they substantiated the priorities of Russia’s new economic development and discussed the need to create state corporations as opposed to the fragmentation of production cycles. China has followed this path and achieved a lot, and we are facing dynamic catch-up, which is also impossible without the creation of state corporations. For an economic breakthrough, we need not just a sharp increase in investment, but targeted investment lines. The experience of Asian economies shows that this is the only way it works. If we followed the ideas of Lvov, who claimed that money cannot be a moral value and the core of the economy, we would already be world leaders along with India and China, where this is carefully monitored.

The second part of the plenary session was no less interesting and productive. It was dedicated to the opening of the educational program of the Eurasian Network University “Economics of Integration Processes in the Eurasian Economic Union”.

The program was presented by the Vice-Rector of the State University of Management Dmitry Bryukhanov, who noted that questions about the “fifth freedom”, freedom of knowledge, are becoming increasingly loud today, so the opening of the new program is fully supported by the Ministry of Science and Higher Education of the Russian Federation and Rossotrudnichestvo. The Vice-Rector reported that the program was developed with the assistance of the Eurasian Economic Commission and about 20 master’s students have already been enrolled, and training will start this week. The process will be hybrid, for which a special information environment has been developed.

One of the developers of the program, Deputy Director of the Department of Macroeconomic Policy of the Eurasian Economic Commission Kanybek Azhekbarov wished all applicants good studies and drew the attention of those gathered to the fact that the program was created on the basis of additional professional education, which has already trained 40 specialists.

The head of the program, Sergey Glazyev, thanked the Ministry of Science and Higher Education of the Russian Federation, the government of Kyrgyzstan and the State University of Management for their support. He shared plans to expand the program and noted that the Eurasian Economic Union and its labor market cannot effectively exist without a common educational space, and the State University of Management is an excellent platform to begin forming it.

At the end of the new program, students were presented with a symbolic pass to the State University of Management. After the break, the Forum continued in sections and round tables.

Subscribe to the TG channel “Our GUU” Date of publication: 10/30/2024

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

January 25, 2025

MIL-OSI: Alpine Banks of Colorado announces financial results for third quarter 2024

Source: GlobeNewswire (MIL-OSI)

GLENWOOD SPRINGS, Colo., Oct. 30, 2024 (GLOBE NEWSWIRE) — Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the quarter ended September 30, 2024. The Company reported net income of $13.6 million, or $127.16 per basic Class A common share and $0.85 per basic Class B common share, for third quarter 2024.

Highlights in third quarter 2024 include:

Basic earnings per Class A common share increased 16.8%, or $18.28, during third quarter 2024.
Basic earnings per Class A common share decreased 16.8%, or $18.30, compared to third quarter 2023.
Basic earnings per Class B common share increased 16.8%, or $0.12, during third quarter 2024.
Basic earnings per Class B common share decreased 16.8%, or $0.12, compared to third quarter 2023.
Net interest margin for third quarter 2024 was 2.98%, compared to 2.87% in second quarter 2024, and 2.87% in third quarter 2023.

“Third quarter 2024 results show a continuation of our improving financial performance,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Alpine successfully grew customer deposit balances, paid down brokered CDs and decreased the cost of our funding during the third quarter. Both our net interest margin and return on assets saw improvements over the first and second quarters of 2024.”

Net Income
Net income for third quarter 2024 and second quarter 2024 was $13.6 million and $11.7 million, respectively. Interest income increased $1.9 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in yields on the loan portfolio and increased balances in due from banks. These increases were slightly offset by decreased yields and volumes in the securities portfolio and decreased rates on due from banks, along with decreased volume in the loan portfolio. Interest expense increased $0.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increased balances in deposit accounts. This increase was partially offset by decreases in costs on, and volume of, the Company’s trust preferred securities. Noninterest income increased $1.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in service charges on deposit accounts, and other income. Noninterest expense decreased $0.8 million in third quarter 2024 compared to second quarter 2024, due to decreases in other expenses and salary and employee benefit expenses slightly offset by increases in occupancy expenses and furniture and fixture expenses. A provision for loan losses of $1.2 million was recorded in third quarter 2024 compared to a $0.2 million provision recorded in second quarter 2024.

Net income for the nine months ended September 30, 2024, and September 30, 2023, was $35.9 million and $46.0 million, respectively. Interest income increased $18.5 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $31.8 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $3.3 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in earnings on bank-owned life insurance, service charges on deposit accounts and other income. Noninterest expense increased $3.0 million in the first nine months of 2024 compared to the first nine months of 2023, due to increases in salary and employee benefit expenses and occupancy expenses. These increases were partially offset by decreases in furniture and fixture expenses and other expenses. Provision for loan losses decreased $0.3 million in the first nine months of 2024 due to loan portfolio declines and a small volume of loan charge-offs, compared to the nine months ended September 30, 2023.

Net interest margin increased from 2.87% in second quarter 2024 to 2.98% in third quarter 2024. Net interest margin for the nine months ended September 30, 2024, and September 30, 2023, was 2.89% and 3.17%, respectively.

Assets
Total assets increased $107.0 million, or 1.7%, to $6.58 billion as of September 30, 2024, compared to June 30, 2024, primarily due to increased cash and due from banks and investment securities balances, partially offset by decreased loans receivable. Total assets increased $110.6 million, or 1.7%, from September 30, 2023, to September 30, 2024. The Alpine Bank Wealth Management* division had assets under management of $1.34 billion on September 30, 2024, compared to $1.09 billion on September 30, 2023, an increase of 23.3%.

Loans
Loans outstanding as of September 30, 2024, totaled $4.0 billion. The loan portfolio decreased $36.3 million, or 0.9%, during third quarter 2024 compared to June 30, 2024. This decrease was driven by a $22.9 million decrease in real estate construction loans and a $33.7 million decrease in residential real estate loans, partially offset by a $13.7 million increase in commercial and industrial loans, a $5.0 million increase in commercial real estate loans, a $1.6 million increase in consumer loans, and a $0.1 million increase in other loans.

Loans outstanding as of September 30, 2024, reflected a decrease of $5.0 million, or 0.1%, compared to loans outstanding of $4.0 billion on September 30, 2023. This decrease was driven by a $102.8 million decrease in real estate construction loans, partially offset by a $54.9 million increase in commercial real estate loans, a $20.8 million increase in residential real estate loans, a $20.0 million increase in commercial and industrial loans, a $1.8 million increase in consumer loans and a $0.3 million increase in other loans.

Deposits
Total deposits increased $74.1 million, or 1.3%, to $5.9 billion during third quarter 2024 compared to June 30, 2024, primarily due to a $110.1 million increase in demand deposits and a $49.5 million increase in money market accounts. This increase was partially offset by a $36.4 million decrease in certificate of deposit accounts, a $3.8 million decrease in savings accounts, and a $45.4 million decrease in interest-bearing checking accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $390.5 million on June 30, 2024. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 29.3% on June 30, 2024.

Total deposits of $5.9 billion on September 30, 2024, reflected an increase of $38.5 million, or 0.7%, compared to total deposits of $5.8 billion on September 30, 2023. This increase was due to a $248.2 million increase in money market accounts, partially offset by a $41.6 million decrease in certificate of deposit accounts, a $111.6 million decrease in interest-bearing checking accounts, a $27.0 million decrease in demand deposits and a $29.5 million decrease in savings accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $563.7 million on September 30, 2023. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 31.4% on September 30, 2023.

Capital
The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of September 30, 2024, the Bank’s Tier 1 Leverage Ratio was 9.62%, Tier 1 Risk-Based Capital Ratio was 14.15%, and Total Risk-Based Capital Ratio was 15.30%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.23%, Tier 1 Risk-Based Capital Ratio was 13.59%, and Total Risk-Based Capital Ratio was 15.85% as of September 30, 2024.

Book value per share on September 30, 2024, was $4,787.58 per Class A common share and $31.92 per Class B common share, an increase of $294.62 per Class A common share and $1.96 per Class B common share from June 30, 2024.

Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights.

Dividends
Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150^th) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends.

During third quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On October 10, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on October 28, 2024, to shareholders of record on October 21, 2024.

About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.6 billion, independent, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five-star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non-voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX® Best Market. Learn more at www.alpinebank.com.

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

Contacts:	Glen Jammaron	Eric A. Gardey
	President and Vice Chairman	Chief Financial Officer
	Alpine Banks of Colorado	Alpine Banks of Colorado
	2200 Grand Avenue	2200 Grand Avenue
	Glenwood Springs, CO 81601	Glenwood Springs, CO 81601
	(970) 384-3266	(970) 384-3257

A note about forward-looking statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “continues,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward- looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include, but are not limited to:

The ability to attract new deposits and loans;
Demand for financial services in our market areas;
Competitive market-pricing factors;
Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
Effects of future economic, business and market conditions, including higher inflation;
Adverse effects of public health events, such as the COVID-19 pandemic, including governmental and societal responses;
Deterioration in economic conditions that could result in increased loan losses;
Actions by competitors and other market participants that could have an adverse impact on expected performance;
Risks associated with concentrations in real estate-related loans;
Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
Market interest rate volatility, including changes to the federal funds rate;
Stability of funding sources and continued availability of borrowings;
Geopolitical events, including acts of war, international hostilities and terrorist activities;
Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
Any increases in FDIC assessments;
Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
The ability to recruit and retain key management and staff;
The ability to raise capital or incur debt on reasonable terms; and
Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.

There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Key Financial Measures
The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).

Key Financial Measures 09.30.2024

Consolidated Statements of Comprehensive Income 09.30.2024

Consolidated Statements of Financial Condition 09.30.2024

Consolidated Statements of Income 09.30.3024

The MIL Network –

January 25, 2025

MIL-OSI USA: Salazar and Pettersen Introduce Legislation to Improve Retirement Security for Family Caregivers

Source: United States House of Representatives – Congresswoman María Elvira Salazar’s (FL-27)

WASHINGTON, D.C. – Rep. María Elvira Salazar (R-FL) joined Rep. Brittany Pettersen (D-CO) in introducing two bills to give critical support to caregivers across the United States who selflessly support their families. U.S. Senators Susan Collins (R-ME) and Mark Warner (D-VA) introduced the Senate versions of these bills.

The Improving Retirement Security for Family Caregivers Act (H.R. 9765) and Catching Up Family Caregivers Act (H.R. 9764) would help address the financial challenges faced by individuals who leave the workforce to care for loved ones, often sacrificing their own long-term financial security. Our family caregivers need as many tax breaks and incentives as possible to help navigate the challenges they face while supporting their family.

“Caregiving is one of the most important jobs, but our current policies penalize selfless Americans who look after their loved ones,” said Rep. Salazar. “I’m proud to co-lead the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, which will reward caregivers with new opportunities to secure a dignified retirement.”

The Improving Retirement Security for Family Caregivers Act would allow family caregivers to contribute up to $7,000 annually to a Roth IRA, even if their income falls below that threshold. Current law caps contributions at the lower of $7,000 or yearly income, limiting caregivers’ ability to save for retirement when their earnings are reduced due to caregiving responsibilities. By eliminating this income cap for family caregivers, the bill would help to ensure that they can continue to save for retirement despite their reduced wages.

The Catching Up Family Caregivers Act would allow family caregivers to make catch-up contributions to employer-sponsored retirement plans, an option typically reserved for those over age 50. For every year they are out of the workforce, caregivers could be eligible for an additional year of catch-up contributions, up to a maximum of five years. This provision would help caregivers who miss critical savings years get back on track with their retirement planning.

Both bills are supported by the Alzheimer’s Association, the Edward Jones Grassroots Task Force, the Society for Human Resources Management (SHRM), the Insured Retirement Institute, and the National Alliance for Caregiving.

“Caregivers do some of the most important but under-appreciated work in our country,” said Rep. Pettersen. “Caregivers do everything from cooking meals, administering medications, paying bills, and driving their loved ones to frequent medical appointments. Caregivers often take a significant financial hit when they take time out of the workforce to prioritize their loved ones and many struggle with their own financial security and ability to save in the long term. These two pieces of legislation make it easier for caregivers to save for retirement, ensuring they can take care of their own financial health while caring for their family.”

“Family caregivers provide critical support to their loved ones, yet many are forced to step away from work, significantly inhibiting their ability to save for retirement,” said Senator Collins. “Our bipartisan bills would give these individuals a better opportunity to build a secure financial future and help ensure they are not penalized for the vital care they provide.”

“Family members often make tremendous sacrifices to leave the workforce and care for their aging relatives, and as a result, they miss out on key years of saving for their own golden years,” said Senator Warner. “We need to make it easier for those folks to continue their essential care work while also securing their own financial futures. I’m proud to introduce bills that would give these family caregivers the flexibility to continue contributing to retirement accounts so it’s easier for more people to care for aging relatives without obstructing their own ability to retire with dignity.”

“Caring for a loved one living with Alzheimer’s or other dementia too often takes a devastating toll on caregivers, with many experiencing substantial emotional, financial and physical difficulties,” said Robert Egge, Alzheimer’s Association Chief Public Policy Officer and AIM president. “These two bipartisan bills will support our nation’s dementia caregivers by improving access to retirement resources that can help offset some of the financial challenges faced by families impacted by this disease. Thank you to Sens. Collins and Warner for introducing these bills and for your dedication to the Alzheimer’s community.”

“Edward Jones is grateful for Senator Collins’ leadership in introducing the Improving Retirement Security for Family Caregivers Act and Catching-up Family Caregivers Act,” said Dr. Lamell McMorris, Principal and Head of Policy, Regulatory & Government Relations for Edward Jones. “We know through our experience, that caregivers make significant sacrifices in providing care to loved ones, which can impact their personal financial security and retirement readiness. We believe that this bipartisan legislation will provide savings opportunities to improve the financial futures of millions of Americans and their families.”

“Business leaders and HR professionals are responsible for designing and implementing benefit plans that meet the needs of their team members. However, too often, caregiver support is not considered. People are living longer, and workers are caring for both children and elderly parents simultaneously. If we intend to lead with empathy, providing employees with the opportunity to care for ill, injured, or aging loved ones must be a priority,” said Emily M. Dickens, Chief of Staff and Head of Public Affairs, SHRM. “That is why we are honored to support the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act. SHRM is pleased to see the bipartisan progress in Congress being made to help employees reconstitute their retirement nest egg after a period of intensive caregiving.”

“Family caregivers often pause their careers and retirement savings to provide essential care for loved ones, a service vital to both families and the economy. However, this time away from paid work can result in reduced income and benefits, potentially leading to future financial difficulties, particularly in retirement,” said Jason Resendez, CEO & President of the National Alliance for Caregiving. “If enacted, the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act would represent progress towards acknowledging and addressing the economic sacrifices too many family caregivers make.”

BACKGROUND:

Women often take time away from careers to care for their families, resulting in a significant loss to their retirement savings. According to the Center for American Progress, an average 26-year-old female making $60,000 a year who leaves the workforce for five years to care for her children will lose close to one million dollars over her lifetime due to lost retirement assets and wage growth. A recent study from the Edward Jones Grassroots Taskforce found that 64 percent of women say their caregiving duties have negatively impacted their ability to save towards their long-term financial goals. Those taking care of an aging parent often face similar repercussions to being a family caregiver. In 2020, AARP found that three in ten caregivers have stopped contributing to their savings. Therefore, these proposals would allow those who dedicate at least 500 hours to family caregiving and are unemployed or severely underemployed the ability to contribute to their retirement now and later.

Click here to read the full text of the Improving Retirement Security for Family Caregivers Act.

Click here to read the complete text of the Catching Up Family Caregivers Act.

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MIL OSI USA News –

January 25, 2025
MIL-OSI Asia-Pac: Paddy Procurement in full swing in the Food bowl of India

Source: Government of India (2)

Paddy Procurement in full swing in the Food bowl of India

Center committed to achieve procurement targets and not a single grain will be left unprocured

Posted On: 30 OCT 2024 6:52PM by PIB Delhi

Punjab/ Haryana Procurement Estimates- KMS 2024-25

Punjab and Haryana are the food bowls of our country and like every year 185 LMT and 60 LMT of paddy is estimated to be procured from these two states respectivelyduring KMS 2024-25. These two States account for almost 40 percent of Central Pool procurement. The procurement operations are ongoing in full swing in both the States. Though the procurement of paddy commenced on October 1, 2024 in Punjab and on September 27, 2024 in Haryana, due to heavy rainfall in September and the resultant higher moisture content in paddy, the harvesting and procurement were delayed.However, despite a late start, both the states are well on track to achieve the estimates of paddy procurement by stipulated datesi.e November 30^th2024 for Punjab and November 15^th for Haryana.

Procurement operations

Till date 10 lakh farmers in Punjab and 4.06 lakh farmers in Haryana have registered to sell their produce in KMS 2024-25. In Haryana 45 LMT of Paddy has been procured till 29th October, 2024 which is 87 % of 52 LMT procured till 29th October, 2023. In Punjab 67 LMT of Paddy has been procured till 29th October, 2024 which is 80% of the quantity of 84 LMT procured last year on the same date. Compared to the previous year, the procurement of paddy in Haryana and Punjab is similar compared to the pan-India procurement in percentage terms, by 29^th Oct 2024.

Facilitation of Rice Millers

Like every year, rice millers are on boarded by the State government for the milling operations. Out of 4400 millers who applied for delivery of Custom Milled Rice (CMR), work has been allotted to 3850 millers by the state government of Punjab by Oct 29^th, 2024. Further, in Haryana, 1452 millers applied for delivery of CMR and work has been allotted to 1319 millers by the state government. Every day on an average, around 4 LMT of Paddy is being lifted from the Punjab Mand is which indicates that the remaining estimate of 118 LMT of paddy will be smoothly achieved by November 30^th, 2024.Similarly,in case of Haryana, the remaining estimate of 15 LMT shall be easily achievedby 15^th Nov, 2024 keeping in view the average lifting of paddy of appx 1.5 LMT per day.Procurement of Paddy in Kaithal and Kurukshetra districts, including mandis at Dhand and Pundri, is in full swing and almost at the level of last year’s procurement figures.

With the specific aim of facilitating Rice millers, an app based FCI Grievance Redressal System (FCI GRS) for Rice Millers has been launched on 28th October 2024 by the Union Minister of Consumer Affairs, Food and Public Distribution. This will facilitate rice millers in getting their grievances addressed by the FCI in an efficient, transparent and time bound manner.

MSP Regime Strengthened

Union Government is committed to ensure that the benefit of MSP regime is smoothly realized by all the farmers. The MSP of paddy has increased from Rs 1310/Qtl in 2013-14 to Rs 2300/Qtl in 2023-24. Since 2018-19, MSP has been assured with a return of at least 50% over all-India weighted average cost of production. As on 29^th Oct, 2024, an amount of Rs 13211 crore has been released to350961 farmers in Punjab and an amount of Rs 10529crore has been released to 275261 farmers in Haryana for KMS 2024-25. The amount is being credited to the bank accounts of the farmers through DBT within 48 hours of procurement. The entire procurement operations have been digitized to improve efficiency, transparency and accountability which reflects the commitment of the Union Government to further strengthen the MSP regime.

Record Budgetary Allocation

The budgetary allocation and release for food subsidy has increased to more than four times in the last ten years than the preceding ten years. Around 21.56 lakh Crores has been spent on food subsidy during 2014-15 to 2023-24 as compared to around 5.15 lakh Crores during 2004-05 to 2013-14. During the COVID period, the fund allocation towards food subsidy was increased substantially due to 5Kg of additional food grains made available to each NFSA beneficiary free of cost, which continued till December 2022. Since 1.1.2023, the Central Issue Price (CIP) has been made zero keeping in view welfare of the poor and vulnerable sections of the society and ensuring uniformity in the entire country. AAY households and PHH beneficiaries are being provided foodgrains free of cost under PMGKAY from 01.01.2023.

The Union Government is committed to procure the estimated target of 185 LMT and 60 LMT of Paddy in Punjab and Haryana respectively, and not a single grain shall be left unprocured.

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MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Europe: EIB Group showcases progress of European Tech Champions Initiative boosting European scale-ups at event in Madrid
Source: European Investment Bank
- Since its launch in 2023, the European Tech Champions Initiative has closed fund deals worth €2 billion and mobilising five times this amount, totalling €10 billion in public and private sector resources.
- Investments have been made in 16 technology scale-ups, two of which are Spanish.
- In Spain, the European Tech Champions Initiative has invested in a mega fund specialising in deep tech and climate, and an investment in a second mega fund is expected by 2025.
- As an ETCI participant country, Spain has announced an additional contribution of €300 million to the initiative by the Ministry of Digital Transformation that is soon to be approved by the Spanish cabinet.
The EIB Group outlined the progress of the European Tech Champions Initiative (ETCI) – the fund of funds promoted by the European Union and participating EU Member States to foster the growth of cutting-edge technology startups with high growth potential (scale-ups) – today in Madrid. This initiative is led by the European Investment Fund (EIF), the EIB Group’s specialist provider of investment capital to benefit small and medium-sized enterprises (SMEs) and mid-caps.

The presentation took place during the Tech Champions Made in Europe day, which brought together representatives of the Spanish investment and technological innovation ecosystem and was attended by EIB Group President Nadia Calviño, Spanish Minister of Economy, Trade and Business Carlos Cuerpo, EIF Chief Executive Marjut Falkstedt and Instituto de Crédito Oficial (ICO) Chairman Manuel Illueca Muñoz.

Opening the day, President Calviño had the opportunity to detail the ongoing work to bolster the European capital market, including the expansion of the ETCI and opening it up to private investors. New financial instruments are also being developed to facilitate investor exits via acquisition or listing of the technology startups on European markets.

“Thanks to EIB Group support, Spain now has a top-tier European investment mega fund. We are already working on the second phase of this initiative, in which Spain is expected to retain its key role,” said EIB Group President Nadia Calviño.

The event was closed by Spanish Minister of Economy, Trade and Business Carlos Cuerpo, who said: “Spain has already provided €400 million to the ETCI, and today we are announcing an additional contribution of €300 million from the Ministry of Digital Transformation that is soon to be approved by the Spanish cabinet.”

Since its launch in 2023, the ETCI has been fostering a positive environment in the European venture capital fund market and in the technology ecosystem. It has already closed fund deals worth €2 billion and mobilising five times this amount, totalling €10 billion in public and private sector resources for investment in growth-stage technology companies. ETCI-backed funds have so far invested in 16 European companies, two of which are Spanish.

In Spain, the ETCI has already made an initial investment in the Kembara Fund I FCR mega fund, a deep tech and climate-focused venture capital fund operating across Europe and managed by Alma Mundi Ventures SGEIC (Mundi Ventures). An investment in a second mega fund is expected by 2025. ETCI-backed funds have in turn invested in two Spanish high-tech companies in their advanced growth phase: Inke, which specialises in respiratory disease treatments, and Factorial, which develops and sells human resources software.

EIF Chief Executive Marjut Falkstedt said: “We are very happy with the ETCI’s progress to date, and are working on expanding it to increase its impact on the European venture capital and technological innovation ecosystems even further. We are exploring initiatives including structures where the private sector can play a greater role in this fund of funds, which is vital for ensuring European technological autonomy.”

During his speech, ICO Chairman Manuel Illueca Muñoz said: “The ETCI is helping to strengthen the EU innovation ecosystem. ICO Group aims to support Spanish startups and scale-ups throughout their lifecycle, until they reach sufficient maturity for the ETCI to turn them into European champions.”

Background information

The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

The European Tech Champions Initiative (ETCI) is an EU programme managed by the EIF and backed by the European Commission and participating EU Member States. It helps to cover the financing needs of European technology scale-ups, preventing them from relocating and strengthening Europe’s strategic autonomy and competitiveness. Sectors benefiting from the initiative include cybersecurity, artificial intelligence, quantum computing, deep tech, green technologies, biotechnology and digital technologies. The ETCI is also making a major contribution to the European financial markets and is an example of how the EIB Group can act as a pioneering instrument for the capital markets union.

Discurso completo de la presidenta Nadia Calviño durante la apertura de la jornada
MIL OSI Europe News –
January 25, 2025
MIL-OSI Europe: Answer to a written question – Abolition of customs duty exemption for cheap imports from China – E-001521/2024(ASW)
Source: European Parliament
The Commission is aware of the increasing concerns over the safety of products sold online, ranging from non-compliance with EU safety and environmental standards to counterfeit goods that put consumers’ health at risk.

In May 2023, the Commission put forward proposals to reform the EU Customs Union. These include, among others, the establishment of an EU Customs Authority to carry out risk management at EU level, the abolition of the current threshold whereby goods valued at less than EUR 150 are exempt from customs duty, and the responsibility of e-commerce platforms to ensure that customs duties and VAT are paid at purchase and to make information about this available to customs. These proposals are currently being negotiated by the Union co-legislator for approval[1].

Third-country traders and marketplaces targeting EU-based consumers must comply with consumer protection laws[2]. While it is responsibility of Member States to enforce compliance with the EU and national standards, the Commission can help coordinate enforcement where infringements concern several or most Member States under the Consumer Protection Cooperation Regulation (EU) 2017/2394[3].

In the political guidelines 2024-2029, the President of the Commission has announced that the next Commission will keep tackling the challenges with e-commerce platforms, also to ensure that consumers and businesses benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards.

[1] EU Customs Reform — European Commission: https://taxation-customs.ec.europa.eu/customs-4/eu-customs-reform_en

[2] Such as: the Unfair Commercial Practices Directive 2005/29/EC (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32005L0029), and the Price Indication Directive 98/6/EC (https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:31998L0006).

[3] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32017R2394
Last updated: 30 October 2024
MIL OSI Europe News –
January 25, 2025
MIL-OSI Canada: Minister Valdez announces agreement to deliver health innovations to First Nations communities
Source: Government of Canada News (2)

News release

The federal government is committed to helping small and medium-sized businesses bring their innovations to life from coast to coast to coast and ensuring that people can benefit from their creative ideas and solutions.

October 30, 2024 – Toronto, Ontario

The federal government is committed to helping small and medium-sized businesses bring their innovations to life from coast to coast to coast and ensuring that people can benefit from their creative ideas and solutions.

Today, the Honourable Rechie Valdez, Minister of Small Business, announced that the First Nations Health Authority (FNHA) will join the Coordinated Accessible National (CAN) Health Network. This partnership will enable FNHA to deliver health care innovations developed by small and medium-sized businesses to over 200 First Nations communities across British Columbia.

Through the federal government’s $42 million investment, the CAN Health Network is connecting small businesses delivering medical innovations with hospitals and health care providers, which gives these providers market-ready solutions to address health care challenges.

For health tech entrepreneurs, this initiative provides the tools and connections needed to access the Canadian health care market. Through the CAN Health Network, they can test their innovations, connect with the government procurement process and access opportunities that help them scale and grow.

In the nearly five years since it launched, the network has successfully connected 74 Canadian businesses working in health technology with different orders of government across the country. This initiative is enabling entrepreneurs across Canada to grow, all while strengthening our universal health care system by encouraging homegrown innovation.

Quotes

“By investing in the CAN Health Network, our government is simultaneously helping small and medium-sized businesses bring their innovative health care solutions to life and helping patients benefit from these groundbreaking technologies. With the First Nations Health Authority joining the CAN Health Network, First Nations communities across British Columbia will benefit from the latest Canadian health care innovations. Congratulations to both organizations for coming together.”
— The Honourable Rechie Valdez, Minister of Small Business

“The addition of the First Nations Health Authority to the Network is an important step in honouring our commitment to expand our vision and mission across the country and to support Indigenous communities. Since its launch in 2019, and with the investment and support of the Government of Canada, the CAN Health Network has welcomed 42 leading health care operators, or “Edges,” supported more than 74 companies, generated more than $550 million to date and created more than 2,000 jobs across the nation. With the support of Minister Valdez and the Government of Canada, the CAN Health Network unifies regions and leverages the diversity of individuals and organizations to lead the new health care economy.”
— Dr. Dante Morra, Chair, CAN Health Network

“Joining the CAN Health Network enables the First Nations Health Authority to amplify First Nations voices in health care innovation. Through this partnership, we’re increasing opportunities for First Nations–led approaches to enhancing access to health care. We are also helping to build the foundations for a system that is culturally safe, inclusive and respectful of First Nations peoples in British Columbia and Canada.”

– Richard Jock, CEO, First Nations Health Authority

Quick facts
- The Government of Canada has invested $42 million since 2019 to support the growth and expansion of the Coordinated Accessible National (CAN) Health Network.
- Since its launch, the CAN Health Network has grown to include 42 Edges. Edges are health care operators, including health authorities and organizations.
- To date, the CAN Health Network has supported 74 innovative Canadian health care technology businesses.
- Under the initiative, 92 commercialization projects have been rolled out.
- As of March 2024, 2,020 jobs have been created.
- The CAN Health Network has helped generate more than $550 million in revenue.
Associated links

Contacts

Callie Franson
Senior Communications Advisor and Issues Manager
Office of the Minister of Small Business
callie.franson@ised-isde.gc.ca
613-297-5766

Media Relations
Innovation, Science and Economic Development Canada
media@ised-isde.gc.ca

Stay connected

Follow Canada Business on social media.
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For easy access to government programs for businesses, download the Canada Business app.

MIL OSI Canada News –
January 25, 2025
MIL-OSI Economics: Verizon and Wounded Warrior Project® partner to support at least 1,000 veterans with upskilling
Source: Verizon

Headline: Verizon and Wounded Warrior Project® partner to support at least 1,000 veterans with upskilling
- Verizon and Wounded Warrior Project® are partnering to support at least 1,000 veterans with upskilling between Veterans Day 2024 and Veterans Day 2025.
- The partnership leverages Verizon’s free Skill Forward program, a university backed, self-paced education opportunity available for any US resident over 17.
- Verizon is committed to providing exclusive offers to active military, veterans and their families. Customers can take advantage of Mobile deals, discounts and savings with myPlan starting at just $25/month with 4 lines on Welcome Unlimited, plus 12% off all mobile perks. Customers can also save on Fios Home Internet starting at just $45/month, which can be bundled with the Mobile + Home Discount to unlock even more savings.
- Beginning November 1st, active military, veterans and their families will automatically receive Set Up and Go – a white glove service that provides customers a personalized phone setup experience, on Verizon.
BASKING RIDGE, NJ – Verizon and Wounded Warrior Project® are partnering to support at least 1,000 veterans with upskilling between this year’s Veterans Day and next year’s Veterans Day. The partnership leverages Verizon’s free Skill Forward program.

Participants in Verizon Skill Forward can access more than 250 free, credentialed courses through edX from four-year universities and distinguished institutions. Spanning over 80 unique professional certificate programs, users can pursue skills in high growth job fields like AI, business, coding, communication, finance, IT and more. The platform also provides access to tips, industry-specific events, workshops and a job board to support users’ professional development and career transition.

“We are proud and honored to be partnering with Wounded Warrior Project® to help veterans achieve their career dreams. With their resilience and adaptability, veterans are an asset to any organization. Verizon Skill Forward provides veterans – and any US resident 17 years and older – a pathway to in-demand, tech-forward careers, thanks to free, university-credentialed courses,” said Donna Epps, Verizon’s Chief Responsible Business Officer.

“We’re grateful to Verizon for supporting wounded warriors as they build their careers and futures after service,” said Brea Kratzert Todd, WWP vice president of business development. “Verizon’s ongoing commitment to our mission helps us keep our promise to always be there for those who served.”

According to a study from Call of Duty Endowment and ZipRecruiter, 33 percent of veterans are underemployed, despite having foundational skills and potential to thrive in a number of industries. The Verizon Skill Forward program is designed to pave a path to new career opportunities with free, university courses from edX.

Discounts & Savings For Those Who Serve

Verizon is committed to providing exclusive offers to active military, veterans and their families. Customers can take advantage of Mobile deals, discounts and savings with myPlan starting at just $25/month with 4 lines on Welcome Unlimited¹.

Customers can also save on Fios Home Internet starting at just $45/month, which can be bundled with the Mobile + Home Discount to unlock even more savings.²

To check your eligibility and learn more about Verizon’s military and veteran community offers, visit

¹ Plus taxes & fees. Auto Pay and paper-free billing req’d. For personal lines only.

Military discount: For eligible military; approved verification documents read. $10/mo account discount applied to single line; $25/mo account discount applied to 2-3 lines; $20/mo account discount applied to 4+ lines.

Unlimited 5G / 4G LTE: For Unlimited Welcome plan, in times of congestion, your data may be temporarily slower than other traffic. After exceeding 30 GB/mo (for Unlimited Plus plan) or 60 GB/mo (for Unlimited Ultimate plan) of 5G Ultra Wideband, 5G, or 4G LTE Mobile Hotspot data, Mobile Hotspot speeds reduced to up to 3 Mbps when on 5G Ultra Wideband and 600 Kbps when on 5G / 4G LTE for the rest of month. Mobile Hotspot not included on Unlimited Welcome plan. Domestic data roaming at 2G speeds. 5G Ultra Wideband access included with Unlimited Plus and Unlimited Ultimate plans. 5G access requires a 5G capable device.

² Auto Pay: $10/mo savings available when you sign up for Auto Pay and paper-free billing.

Mobile + Home Discount: Enrollment req’d. For existing postpaid mobile customers with a Verizon mobile plan (excludes prepaid, business and data-only plans) who then add and maintain a Fios Home Internet plan.

Fios 1 Gig and Fios 2 Gig: $25/mo Mobile + Home Discount savings available.

Fios 300 Mbps and 500 Mbps: $15/mo Mobile + Home Discount savings available. General: $99 setup and other terms may apply. Subject to credit approval.
MIL OSI Economics –
January 25, 2025
MIL-OSI Economics: WTO members review safeguard actions during latest committee meeting

Source: WTO

Headline: WTO members review safeguard actions during latest committee meeting

Japan and Australia took the floor to stress that safeguards are emergency measures, and members taking safeguard actions must ensure that they comply with the relevant rules.
Review of legislative notifications
The legislative notifications from Cabo Verde and the Solomon Islands were tabled at the meeting. Both members notified that they did not currently have regulations or administrative procedures relating to safeguard measures. The Committee also continued the review of legislative notifications from Liberia and from Ghana.
Specific notifications of safeguard actions
Notifications of various safeguard actions from the following members were reviewed by the Committee: the European Union (1 investigation); Ghana (1 investigation); India (1 investigation); Indonesia (8 investigations); Madagascar (3 investigations); the Philippines (1 investigation); South Africa (1 investigation); Türkiye (4 investigations); Ukraine (1 investigation), the United Kingdom (1 investigation); and the United States (2 investigations).
Six members took the floor in respect to the European Union’s update of the status of its safeguard measure on certain steel products. One member referred to its proposal to suspend substantially equivalent concessions against European Union imports in reaction to the European Union’s measure.
Five members took the floor to comment on the latest status of the United Kingdom’s safeguard measure on certain steel products, with several members recalling that the UK applies this measure having “transitioned” it from the EU following its departure from the European Union.
Japan expressed concerns about two specific safeguards: Viet Nam’s safeguard measure on “certain semi-finished and finished products of alloy and non-alloy steel” and Indonesia’s safeguard measure on “articles of apparel and clothing accessories”.
Indonesia’s request regarding Türkiye’s proposed suspension of concessions against its exports
On 11 July 2024, Indonesia submitted, pursuant to Article 13.1 (e) of the Safeguards Agreement, a request in relation to Türkiye’s proposal to suspend substantially equivalent concessions or other obligations against imports from Indonesia. Türkiye had proposed the suspension of concessions in response to Indonesia’s safeguard measure on carpets and other textile floor coverings.
Article 13.1 (e) of the Safeguards Agreement stipulates, as one of the functions of the Committee, to “review … whether proposals to suspend concessions or other obligations are ‘substantially equivalent’, and report as appropriate to the Council for Trade in Goods”. The Chair explained how he intends to move forward on this matter. Several members took the floor to describe their views, including with respect to the relevant period to use for the purpose of determining the value of the substantially equivalent concessions.
Discussion Group regarding safeguard proceedings
A member, on behalf of 13 other members, explained that a meeting of an informal discussion group regarding safeguard proceedings would take place after the Committee meeting. While it was not part of the Committee meeting, the discussion was open to all members. The idea behind this discussion group was to provide a broader perspective than in formal Committee meetings where members review particular notifications, and to focus more on each other’s experiences and to learn from each other.
Creation of online portal for submission of safeguard notifications
Under “Other Business”, the Chair provided an update regarding the creation by the WTO Secretariat of an online portal for the submission of safeguard notifications. The Chair reported that a prototype was now ready for delegations to test.
Next meeting
The next meeting of the Committee on Safeguards is scheduled for the week of 28 April 2025.
Background
Under the WTO rules, a member may apply measures to imports of a product temporarily (take “safeguard” actions) through higher tariffs or other measures if it determines through an investigation that increased imports of a product are causing or threatening to cause serious injury to its domestic industry. Unlike anti-dumping duties, safeguard measures cover imports from all sources, although imports from developing country members with a small share of imports are exempted through special and differential treatment provisions.
More background on safeguards is available here.

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MIL OSI Economics –

January 25, 2025
MIL-OSI USA: Carney, Carper, Coons, Blunt Rochester Announce Over $127 Million in Federal Funding to Decarbonize Port Wilmington

Source: United States House of Representatives – Representative Lisa Blunt Rochester (DE-AL)

WILMINGTON, Del. – Today, Delaware Governor John Carney, U.S. Senators Tom Carper and Chris Coons and U.S. Representative Lisa Blunt Rochester (all D-Del.) announced $127.5 million for Port Wilmington as part of the U.S. Environmental Protection Agency’s (EPA) Clean Ports Program, a $3 billion investment by the Biden-Harris Administration in zero-emission port equipment and infrastructure.

The Clean Ports Program was created by the historic Inflation Reduction Act (IRA) that Senators Carper, Coons, and Representative Blunt Rochester championed in Congress. As Chairman of the Senate Committee on the Environment and Public Works, Senator Carper was the primary author of the final environmental provisions in the IRA, including the Clean Ports Program at EPA. Senator Coons was a key negotiator of the Bipartisan Infrastructure Law and the Inflation Reduction Act, and as a member of the Senate Appropriations Committee, he has long fought to ensure critical infrastructure programs have the necessary resources to fund projects up and down our state, including at Port Wilmington. Representative Blunt Rochester’s legislation, H.R. 862, the Climate Action Planning for Ports Act, served as the framework for the Clean Ports program in the House version of the IRA.

“The Port has been a critical part of Delaware’s economy for decades,” said Governor Carney. “The investment announced today will ensure the Port continues to support good jobs and enhance environmental safety for years to come.”

“Our ports are vital to Delaware’s economic well-being, but for too long, pollution from diesel emissions have disproportionately impacted the vulnerable communities closest to them,” said Senator Carper, Chair of the Environment and Public Works Committee. “Port electrification is one solution that will clean up the air that nearby communities breathe while also addressing the climate crisis and creating new jobs. This is why I fought for the final Clean Ports Program in the Inflation Reduction Act. Investing in clean ports will put Delaware – and our nation – on the path to a brighter future with healthier communities, cleaner air, and a stronger economy.”

“Investing in our infrastructure strengthens our national security and builds a stronger economy where everyone can thrive,” said U.S. Senator Chris Coons. “As Delaware’s member of the Appropriations Committee, I’m proud to have secured this funding for the Port Wilmington that will support good-paying, union jobs for First State workers. As we increase economic growth and competitiveness through investments in Delaware’s infrastructure, we should look for more investments like this one that advance climate resilience, reduce inflation, and further equip Delaware to meet the needs of the 21st century.”

“The resiliency of Port Wilmington is crucial to the strength of our economy, our workers, and our supply chains,” said Rep. Blunt Rochester, member of the House Energy and Commerce Committee. “I’m proud to have delivered this significant investment in Port Wilmington through the Inflation Reduction Act’s Clean Ports Program, which is based on my Climate Action Planning for Ports Act. The goal of my bill was to reduce carbon emissions to improve public health and lower the environmental impact of our ports. Today’s investment meets that goal with urgency and equity, while advancing the Port’s clean energy future and benefiting our environmental justice communities.”

“It’s one thing to talk about environmental justice, it’s another thing to do something about it,” said Delaware Secretary of State and Chairman of Diamond State Port Corporation, Jeffrey Bullock. “For years, people have been talking about the importance of cleaning up our ports and using “green” technology to better protect our workers and the people living in surrounding communities, but the money has never been available. This grant is going to make a huge difference by giving the existing port of Wilmington, and the new facility we are building the resources needed to improve environmental safety and make Delaware’s ports better for everyone living in our state.”

“Our nation’s ports are critical to creating opportunity here in America, offering good-paying jobs, moving goods, and powering our economy,” said EPA Administrator Michael S. Regan. “Today’s historic $3 billion investment builds on President Biden’s vision of growing our economy while ensuring America leads in globally competitive solutions in the future. Delivering cleaner technologies and resources to U.S. ports will slash harmful air and climate pollution while protecting people who work in and live nearby ports communities.”

The Clean Ports Program, established by the Inflation Reduction Act, is designed to help ports across the country transition to fully zero-emissions operations. The program consists of two competitions: the Climate and Air Quality Planning Competition and the Zero-Emission Technology Deployment Competition. Port Wilmington is an awardee for the latter, which will allow it to attain electric cargo handling equipment and charging infrastructure. EPA’s Clean Ports Program advances President Biden’s Justice40 Initiative, which aims to deliver 40 percent of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Disadvantaged communities will benefit from cleaner air and access to high quality jobs that will be created to operate zero emissions technologies at ports.

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MIL OSI USA News –

January 25, 2025
MIL-Evening Report: What are Veblen and Giffen goods?

Source: The Conversation (Au and NZ) – By María Yanotti, Lecturer of Economics and Finance Tasmanian School of Business & Economics, University of Tasmania

photo-lime/Shutterstock

This article is part of The Conversation’s “Business Basics” series where we ask experts to discuss key concepts in business, economics and finance.

In economics, goods and services can be classified in different ways. You might be surprised to realise you already knew this, even without knowing their classification names.

Most goods and services are what we call normal goods. Normal goods are those that you purchase more of as your income increases.

For example, you might put healthier and more nutritious food in your trolley, buy more shoes and clothes, or spend more on outings at restaurants and events.

Normal goods still abide to what’s called the law of demand, which might feel like common sense: as the price of something goes up, the quantity of or frequency with which it is demanded will fall.

But there are some categories that violate our intuitions around supply and demand. And they do so for very different reasons. Meet Veblen and Giffen goods, the products that “break the rules”.

Read more:
What’s inflation – and how exactly do we measure it?

Needs and wants

Normal goods can be further divided into two types: necessity goods and luxury goods.

Most groceries are an example of necessity goods.
No Revisions/Unsplash

Broadly speaking, necessity goods are all those things we require for everyday life – food, housing, electricity and so on.

Luxury goods, on the other hand, are the those things we don’t necessarily need but are nice to have. Luxury houses, fancier cars, more expensive clothes and so on.

We become more able to afford luxury goods as we earn more. But as a result, they are also the first things we tend to cut when our income tightens.

For most of these products, something called the “law of demand” applies. That is, if their price increases, people buy less of them than they did before. Demand for them shrinks.

However, some types of good defy this “natural” principle.

Symbols of status and wealth

The first type are Veblen goods, named after American economist Thorstein Veblen. Sometimes they’re also called “snob” goods.

When these goods go up in price, demand for them actually increases.

Clear examples of Veblen goods are some forms of art, high-end designer clothes, exclusive cars and watches. The more expensive the good is, the more exclusive it is, and the more the consumers (who are attracted to it) want to purchase it.

It all centres on signalling status. Being seen to be able to purchase them can indicate someone has exquisite taste, or lots of money to spend.

Most times, Veblen goods are an example of what economists call “positional” goods. These are goods that are valued according to how they are distributed among people, and who exactly has them.

The satisfaction of purchasing a Veblen good comes from the sense of having it and being able to show it off, not necessarily from how useful it is.

The value of Veblen goods is driven by their artificial scarcity – they’re deliberately hard for people to acquire.
Andrea Natali/Unsplash

Inferior goods

On the opposite side of normal goods are inferior goods. As our income increases, we tend to consume less of these goods.

Think, for example, of two-minute noodles or the bus service.

As your income increases, you may be able to afford more nutritious and healthier food and stop consuming cheaper food. You may be able to purchase a car or a bike and stop using public transport.

But within inferior goods, one rare kind offers another exception to the law of demand – Giffen goods.

Why does a rise in price cause demand to go up? Because for people on limited incomes, this limits their ability to buy substitutes.

Take examples such as wheat, rice, potatoes, or bread. If the price of any of these goes up, a consumer on low income may have less to spend on higher quality goods like meat and fresh vegetables, increasing their demand for the inferior good.

Read more:
What is competition, and why is it so important for prices?

María Yanotti receives funding from AHURI. She is affiliated with the Economic Society of Australia, and the Women in Economics Network.

– ref. What are Veblen and Giffen goods? – https://theconversation.com/what-are-veblen-and-giffen-goods-241799

MIL OSI Analysis – EveningReport.nz –

January 25, 2025
MIL-OSI USA: Cambodia stops publishing details of new citizenships issued to foreigners – The Straits Times

Source: United States Institute of Peace

SINGAPORE – Cambodia has stopped publishing data on new citizenships issued by the kingdom to foreigners, in the wake of the $3 billion money laundering probe in Singapore.

Checks by The Straits Times and investigative journalism group, Organised Crime and Corruption Reporting Project (OCCRP), showed that the last time new citizenship details were published was in February.

The latest Royal Gazette, published on Sept 27, did not contain any new citizenship data.

Observers had zoomed in on the ease of access to Cambodian citizenship and passports after it emerged that nine of the 10 foreigners arrested in August 2023 in the probe in Singapore held Cambodian passports.

All 10 were originally from China, which does not recognise dual citizenship.

In 2018, Cambodia moved to allow foreign immigrants to request citizenship through the naturalisation process.

To be granted citizenship, foreigners have to maintain good behaviour and morality, and have no convictions for serious crime.

They must also legally reside in Cambodia for more than seven years, be able to speak Khmer, and understand the local culture and history.

Of the nine foreigners apprehended in Singapore, at least five were convicted for online gambling or were wanted by the authorities in China.

They are Wang Dehai, Vang Shuiming, Su Jianfeng, Chen Qingyuan and Su Wenqiang.

Another 17 associates of the 10 foreigners held Cambodian passports as well.

They include Su Binghai, Su Yongcan, Wang Huoqiang, Su Shuiming, Su Shuijun, Su Fuxiang and Chen Mulin.

Cambodia had averaged around 50 new citizens every month between January 2020 and August 2023, with details published monthly in the Royal Gazette.

After the raids in Singapore, the kingdom granted citizenship status to only four individuals in total between September 2023 and December 2023.

A representative from the Royal Embassy of Cambodia in Singapore told ST on Sept 18 that it could not confirm the figures as it does not have access to the data.

The representative added that he was unable to confirm if Cambodia’s citizenship by investment scheme, or naturalisation process, is still in place.

ST had also reached out to government spokesman Pen Bona, the Prime Minister’s spokesman Meas Sophorn, the office of the council of ministers, and Cambodia’s immigration office.

Established in 1996, the kingdom’s law on nationality also allows foreigners to obtain citizenship through investment in the nation.

Under the law, foreigners who invest a minimum of US$300,000 (S$384,000) in the country, or donate at least US$250,000 to the economy, will have the right to apply for citizenship.

Mr Jacob Sims, a visiting expert on transnational crime at the United States Institute of Peace, told ST that for years, Cambodia’s citizenship for investment scheme has served as a channel for individuals from sophisticated organised crime syndicates to migrate.

Said Mr Sims: “The removal of that data from the public record helps to obscure the nature of the relationship between Cambodian state actions and those criminals, as well as the sheer volume of monied crime actors Cambodia has absorbed in recent years.”

By removing the once publicly available data, Cambodia can protect those who have purchased citizenship while shielding the government from international scrutiny, he said.

Associate Professor Kristin Surak from the London School of Economics and Political Science said that not all countries strictly vet citizenship by investment applications.

She added: “I would say the scheme is very easy to exploit in Cambodia because the government does not do its due diligence. It has issues with corruption and does not have an effective bureaucratic process to ensure applications are properly checked and vetted.”

Name changes have also made it harder for the authorities to track criminals.

Dr Surak, the author of The Golden Passport: Global Mobility For Millionaires, pointed out that many applicants in the past have changed their names.

“This makes it extremely easy for someone to take on a new identity, making Cambodia a target for those with criminal intent to take advantage of,” she added.

One such example is casino kingpin She Zhijiang. ST previously reported on She and his links to scam operations in Myanmar and Cambodia.

She, who was originally from China, became a naturalised citizen of Cambodia in 2017. He then changed his name to Tang Kriang Kai.

He was arrested in Thailand in August 2022 and is currently fighting deportation to China.

Businessman David Yong, chief executive of Evergreen Group Holdings, had similarly obtained Cambodian citizenship.

Yong, who is currently facing four charges in Singapore of falsifying accounts, obtained Cambodian citizenship some time in 2023 and changed his name to Duong Dara.

He was arrested on Aug 1, just three months after he appeared in Netflix series Super Rich In Korea.

Yong’s lawyer said in court that he had surrendered his Cambodian passport to the authorities in Phnom Penh in June 2024.

In response, the authorities in Singapore said they wrote several times to their Cambodian counterparts in August to confirm the fact, but have yet to receive any reply.

Of the 10 foreigners convicted in Singapore’s largest money laundering case, eight were deported to Cambodia – which has an extradition treaty with China.

Wang Dehai was deported to the UK, while Vang Shuiming was deported to Japan.

MIL OSI USA News –

January 25, 2025

Category: Commerce

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More challenges for employers and small businesses

Higher wages for three million, but it could cost more to get the bus to work

A downpayment on growth – but probably not quickly

Good news on public investment – emerging industries could benefit

The NHS gets a cash injection – but it may not go that far

Share this page

Updates to this page

More challenges for employers and small businesses

Higher wages for three million, but it could cost more to get the bus to work

Taxing times for the wealthy

A downpayment on growth – but probably not quickly

Good news on public investment – emerging industries could benefit

The NHS gets a cash injection – but it may not go that far

Paddy Procurement in full swing in the Food bowl of IndiaCenter committed to achieve procurement targets and not a single grain will be left unprocured

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Discounts & Savings For Those Who Serve

Needs and wants

Symbols of status and wealth

Inferior goods

Paddy Procurement in full swing in the Food bowl of India

Center committed to achieve procurement targets and not a single grain will be left unprocured