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  • 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 –

  • MIL-OSI: Bitfarms Enters into Second 10,000 Miner Hosting Agreement with Stronghold Digital Mining

    Source: GlobeNewswire (MIL-OSI)

    – Follows initial 10,000 miner hosting agreement announced in September –

    – Agreement supports 2.2 EH/s –

    This news release constitutes a “designated news release” for the purposes of the Company’s amended and restated prospectus supplement dated October 4, 2024, to its short form base shelf prospectus dated November 10, 2023.

    TORONTO, Ontario and BROSSARD, Québec, Oct. 31, 2024 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms” or the “Company”), a global leader in vertically integrated Bitcoin data center operations, has, through one of its subsidiaries, entered into a second miner hosting agreement (the “Hosting Agreement”) with Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc.  (NASDAQ: SDIG) (“Stronghold”) at Stronghold’s Scrubgrass site in Pennsylvania.

    Under the terms of the Hosting Agreement, Bitfarms will deploy an additional 10,000 miners, originally expected to be used for its Yguazu, Paraguay site, to Stronghold’s Scrubgrass site. Energization is anticipated to start in December 2024.

    “Optimizing our assets with these rapid upgrades at Stronghold’s Pennsylvania sites will provide significant near-term value for Bitfarms,” stated Ben Gagnon, CEO. “The 20,000 miners we are deploying at the two sites between the two hosting agreements will boast efficiency of ~20.5 w/TH, continuing to improve our overall fleet efficiency. Vertically integrating our operations with Stronghold’s existing power generation infrastructure reduces capital expenditure requirements and allows us to take greater control over our cost of power via energy trading and better utilization of the T21’s wide range of operating modes. We look forward to completing our acquisition of Stronghold and executing our strategy to increase our U.S. footprint and diversify beyond Bitcoin mining.”

    The initial term of the Hosting Agreement will expire on December 31, 2025, after which it will automatically renew for additional one-year periods unless either party provides written notice of non-renewal. Pursuant to the Hosting Agreement, Bitfarms will pay Stronghold a monthly fee equal to fifty percent of the profit generated by the Bitfarms miners. In connection with the execution of the Hosting Agreement, Bitfarms also deposited with Stronghold $7.8 million, equal to the estimated cost of power for three months of operations of the Bitfarms miners, which will be refundable in full to Bitfarms at the end of the initial term.

    About Bitfarms
    Founded in 2017, Bitfarms is a global vertically integrated Bitcoin data center company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining facilities with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.

    Bitfarms currently has 12 operating Bitcoin data centers and two under development, as well as hosting agreements with two data centers, in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

    To learn more about Bitfarms’ events, developments, and online communities:

    www.bitfarms.com
    https://www.facebook.com/bitfarms/
    https://twitter.com/Bitfarms_io
    https://www.instagram.com/bitfarms/
    https://www.linkedin.com/company/bitfarms/

    Glossary of Terms

    • EH or EH/s = Exahash or exahash per second
    • w/TH = Watts/Terahash efficiency (includes cost of powering supplementary equipment)

    Forward-Looking Statements

    This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding the impact of the Hosting Agreement, projected growth, target hashrate, opportunities relating to the Company’s geographical diversification and expansion, deployment of miners as well as the timing therefor, closing of the Stronghold acquisition on a timely basis and on the terms as announced, , the ability to gain access to additional electrical power and grow hashrate of the Stronghold business, performance of the plants and equipment upgrades and the impact on operating capacity including the target hashrate and multi-year expansion capacity, the opportunities to leverage Bitfarms’ proven expertise to successfully enhance energy efficiency and hashrate, and other statements regarding future growth, plans and objectives of the Company are forward-looking information.

    Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.

    This forward-looking information is based on assumptions and estimates of management of Bitfarms at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Bitfarms to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors, risks and uncertainties include, among others: receipt of the approval of the shareholders of Stronghold and the Toronto Stock Exchange for the Stronghold acquisition as well as other applicable regulatory approvals; that the Stronghold acquisition may not close within the timeframe anticipated or at all or may not close on the terms and conditions currently anticipated by the parties for a number of reasons including, without limitation, as a result of a failure to satisfy the conditions to closing of the Stronghold acquisition; the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine digital currency is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the power purchase agreements and economics thereof may not be as advantageous as expected; potential environmental cost and regulatory penalties due to the operation of the Stronghold plants which entail environmental risk and certain additional risk factors particular to the business of Stronghold including, land reclamation requirements may be burdensome and expensive, changes in tax credits related to coal refuse power generation could have a material adverse effect on the business, financial condition, results of operations and future development efforts, competition in power markets may have a material adverse effect on the results of operations, cash flows and the market value of the assets, the business is subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with, existing or future energy regulations or requirements, the operations are subject to a number of risks arising out of the threat of climate change, and environmental laws, energy transitions policies and initiatives and regulations relating to emissions and coal residue management, which could result in increased operating and capital costs and reduce the extent of business activities, operation of power generation facilities involves significant risks and hazards customary to the power industry that could have a material adverse effect on our revenues and results of operations, and there may not have adequate insurance to cover these risks and hazards, employees, contractors, customers and the general public may be exposed to a risk of injury due to the nature of the operations, limited experience with carbon capture programs and initiatives and dependence on third-parties, including consultants, contractors and suppliers to develop and advance carbon capture programs and initiatives, and failure to properly manage these relationships, or the failure of these consultants, contractors and suppliers to perform as expected, could have a material adverse effect on the business, prospects or operations; the digital currency market; the ability to successfully mine digital currency; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power to operate cryptocurrency mining assets; the risks of an increase in electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which Bitfarms and Stronghold operate and the potential adverse impact on profitability; future capital needs and the ability to complete current and future financings, including Bitfarms’ ability to utilize an at-the-market offering program ( “ATM Program”) and the prices at which securities may be sold in such ATM Program, as well as capital market conditions in general; share dilution resulting from an ATM Program and from other equity issuances; volatile securities markets impacting security pricing unrelated to operating performance; the risk that a material weakness in internal control over financial reporting could result in a misstatement of financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to Bitfarms’ filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024 and the MD&A for the three and six months ended June 30, 2024 filed on August 8, 2024, and its registration statement on Form F-4 (File No. 333-282657) filed by Bitfarms with the SEC (the “registration statement”), which includes a proxy statement of Stronghold that also constitutes a prospectus of Bitfarms (the “proxy statement/prospectus”). Although Bitfarms has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by Bitfarms. There can be no assurance that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. Bitfarms does not undertake any obligation to revise or update any forward-looking information other than as required by law.   Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.

    Additional Information about the Merger and Where to Find It

    This communication relates to a proposed merger between Stronghold and Bitfarms. In connection with the proposed merger, Bitfarms has filed the registration statement with the SEC. After the registration statement is declared effective, Stronghold will mail the proxy statement/prospectus to its shareholders. This communication is not a substitute for the registration statement, the proxy statement/prospectus or any other relevant documents Bitfarms and Stronghold has filed or will file with the SEC. Investors are urged to read the proxy statement/prospectus (including all amendments and supplements thereto) and other relevant documents filed with the SEC carefully and in their entirety if and when they become available because they will contain important information about the proposed merger and related matters.

    Investors may obtain free copies of the registration statement, the proxy statement/prospectus and other relevant documents filed by Bitfarms and Stronghold with the SEC, when they become available, through the website maintained by the SEC at www sec.gov. Copies of the documents may also be obtained for free from Bitfarms by contacting Bitfarms’ Investor Relations Department at investors@bitfarms.com and from Stronghold by contacting Stronghold’s Investor Relations Department at SDIG@gateway-grp.com.

    No Offer or Solicitation
    This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy, sell or solicit any securities or any proxy, vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Participants in Solicitation Relating to the Merger
    Bitfarms, Stronghold, their respective directors and certain of their respective executive officers may be deemed to be participants in the solicitation of proxies from Stronghold’s shareholders in respect of the proposed merger. Information regarding Bitfarms’ directors and executive officers can be found in Bitfarms’ annual information form for the year ended December 31, 2023, filed on March 7, 2024, as well as its other filings with the SEC. Information regarding Stronghold’s directors and executive officers can be found in Stronghold’s proxy statement for its 2024 annual meeting of stockholders, filed with the SEC on April 29, 2024, and supplemented on June 7, 2024, and in its Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024. This communication may be deemed to be solicitation material in respect of the proposed merger. Additional information regarding the interests of such potential participants, including their respective interests by security holdings or otherwise, is set forth in the proxy statement/prospectus and other relevant documents filed with the SEC in connection with the proposed merger if and when they become available. These documents are available free of charge on the SEC’s website and from Bitfarms and Stronghold using the sources indicated above.

    Investor Relations Contacts:
    Bitfarms
    Tracy Krumme
    SVP, Head of IR & Corp. Comms.
    +1 786-671-5638
    tkrumme@bitfarms.com

    Media Contacts:
    Québec: Tact
    Louis-Martin Leclerc
    +1 418-693-2425
    lmleclerc@tactconseil.ca

    The MIL Network –

  • 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 –

  • MIL-OSI Video: UK Watch live: Lords debates contribution of science and technology to the UK economy

    Source: United Kingdom UK House of Lords (video statements)

    Members speaking include the Astronomer Royal, doctors, scientists and former chief executive of the NHS.

    Find out more https://www.parliament.uk/business/news/2024/october/the-contribution-of-science-and-technology-to-the-uk-economy-on-lords-agenda/

    Catch-up on House of Lords business:

    Watch live events: https://parliamentlive.tv/Lords
    Read the latest news: https://www.parliament.uk/lords/

    Stay up to date with the House of Lords on social media:

    • Twitter: https://twitter.com/UKHouseofLords
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    #HouseOfLords #UKParliament #StateOpening

    https://www.youtube.com/watch?v=B6Uivr_GIO8

    MIL OSI Video –

  • MIL-OSI USA: California claims victory against Huntington Beach’s NIMBY attempt to challenge state housing law

    Source: US State of California 2

    Oct 30, 2024

    What you need to know: The federal court of appeals today denied Huntington Beach’s NIMBY attempt to sue the state for enforcing state law that requires the city to build its fair share of housing. California will continue to hold the city accountable and ensure that it builds the housing its community deserves.

    SACRAMENTO — In March 2023, the state sued Huntington Beach for violating various state housing laws. The city retaliated by suing the state in federal court, arguing that enforcing California’s laws requiring cities to build more housing was unconstitutional. Today the Ninth Circuit affirmed the trial court in rejecting Huntington Beach’s NIMBY lawsuit.

    “Today, yet another court has slapped down Huntington Beach’s cynical attempt to prevent the state from enforcing our housing laws. Huntington Beach officials’ continued efforts to advance plainly unlawful NIMBY policies are failing their own citizens — by wasting time and taxpayer dollars that could be used to create much-needed housing. No more excuses — every city must follow state law and do its part to build more housing.”

    Governor Gavin Newsom

    “I am pleased that yet another court has emphatically rejected Huntington Beach’s attempt to exempt itself from state housing laws,” said Attorney General Bonta. “While the City has been wasting the public’s time and money pursuing this meritless lawsuit, its neighboring communities — along with every Californian struggling to keep a roof over their heads or wondering where they’re going to sleep tonight — need Huntington Beach to step up and adopt a housing plan without further delay. My office will continue pursuing all remedies in the state case against the City, where the court has already determined the City violated the state’s Housing Element Law.”  

    Today, California secured a unanimous decision by a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit affirming the district court’s dismissal of the City of Huntington Beach’s federal lawsuit challenging the constitutionality of enforcing state housing laws. 

    In 2023, the Governor announced that California was suing the city, arguing that the city is in violation of the state Housing Element Law and seeking both penalties and injunctive relief.

    A copy of the decision can be found here.

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  • MIL-OSI USA: Governor Newsom announces first-of-its-kind partnership with airlines on sustainable aviation fuel

    Source: US State of California 2

    Oct 30, 2024

    What you need to know: The nation’s leading passenger and cargo airlines agreed to accelerate the use of sustainable aviation fuels and cut pollution – a goal of 200 million gallons by 2035, which would meet about 40% of California travel demand. 

    SAN FRANCISCO AIRPORT – A new agreement between Airlines 4 America (A4A) and the California Air Resources Board (CARB) will significantly reduce carbon emissions by accelerating the use of sustainable aviation fuels for flights within the state. 

    The agreement sets a goal of increasing the availability of sustainable aviation fuel for use within California to 200 million gallons by 2035, an amount that would meet about 40% of intrastate travel demand – a more than tenfold increase from current levels. 

    “California and the aviation industry are joining forces to tackle emissions head-on. We’ve put the tools in place to incentivize cleaner fuels and spur innovation, creating opportunities like this to radically change how Californians can travel cleaner. This is a major step forward in our work to cut pollution, protect our communities, and build a future of cleaner air and innovative climate solutions.”

    Governor Gavin Newsom

    This achievement was made possible by the development and innovation of alternative fuels spurred by the state’s Low Carbon Fuel Standard program.

    “California is once again demonstrating that smart climate action is good for the environment and good for business,” said CARB Chair Liane Randolph. “This partnership with the nation’s leading airlines brings the aviation industry onboard to advance a clean air future and will help accelerate development of sustainable fuel options and promote cleaner air travel within the state.”

    A4A’s members include Alaska Airlines, American Airlines, Atlas Air Worldwide, Delta Air Lines, FedEx, Hawaiian Airlines, jetBlue Airways, Southwest Airlines, United Airlines, UPS, and associate member Air Canada. 

    “A4A is pleased to launch a partnership with CARB focused on protecting the environment, reducing emissions, and increasing the use of SAF in California and across the country,” said Kevin Welsh, Vice President of Environmental Affairs and Chief Sustainability Officer at Airlines for America. “This partnership reflects the type of collaboration between government and the private sector that is necessary to achieve ambitious climate goals, and the agreement announced today reflects the strength of our commitment to a cleaner, more sustainable future for air travel. We’re excited to work with CARB and other SAF stakeholders to further our industry’s efforts to achieve net-zero carbon emissions by 2050.”

    Key goals of this agreement

    • CARB and A4A will work together with sustainable aviation fuel producers, aviation stakeholders and the federal government to ensure that at least 200 million gallons of cost-competitive options are available for use by airlines within California by 2035.
    • To achieve these goals, CARB and A4A will work together to identify, evaluate, and prioritize new policies and actions, including incentives for investment and timely permitting to help accelerate the availability and use of sustainable aviation fuels within California. 
    • The partnership will establish a Sustainable Aviation Fuel Working Group of government and industry stakeholders that will meet annually to report progress and address barriers to meeting these goals. 
    • CARB staff plans to create a public website that will display the latest information on the availability and use of conventional jet fuel and sustainable aviation fuel in California, as well as details on relevant state and federal incentives and policies.

    Read the agreement here.

    Recent news

    Oct 30, 2024

    News What you need to know: The Governor signed an executive order to help curb rising electricity costs and provide electric bill relief. SACRAMENTO – Today, Governor Gavin Newsom signed an executive order designed to reduce electric costs for Californians. The…

    Oct 29, 2024

    News What you need to know: The Biden-Harris Administration is granting more than $1 billion to California’s ports to accelerate their transition to zero-emission operations and create good paying jobs. SACRAMENTO – California ports are about to become cleaner and…

    Oct 29, 2024

    News What you need to know: Governor Newsom today announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness. The grant agreements include strong…

    MIL OSI USA News –

  • MIL-OSI USA: Governor Newsom issues executive order tackling rising electric bills

    Source: US State of California 2

    Oct 30, 2024

    What you need to know: The Governor signed an executive order to help curb rising electricity costs and provide electric bill relief.

    SACRAMENTO – Today, Governor Gavin Newsom signed an executive order designed to reduce electric costs for Californians. 

    The Governor’s action encourages electric bill relief while maintaining the state’s commitment to achieving carbon neutrality and 100% clean electricity by 2045. The action comes as millions of Californians received an average credit of $71 on their October electric bills from the California Climate Credit, provided by the state’s Cap-and-Trade program.

    We’re taking action to address rising electricity costs and save consumers money on their bills. California is proving that we can address affordability concerns as we continue our world-leading efforts to combat the climate crisis.

    Governor Gavin Newsom

    Tackling rising electricity costs

    While California has been successful in keeping electric bills lower than many other states on average thanks to decades of work advancing energy efficiency standards, Californians have seen their electric bills rising in recent years. A major driver has been critical utility wildfire mitigation efforts that have accelerated to match the pace of the climate crisis, as well as several programs added over time. 

    The Governor’s executive order addresses both of these cost drivers by zeroing in on some programs that could be inflating customer bills and evaluating utility wildfire mitigation expenses for potential administrative savings. 

    The Governor’s executive order:

    • Encourages electric bill relief. The executive order asks the California Public Utilities Commission (CPUC) to identify underperforming programs and return any unused energy program funds back to customers receiving electric and gas service from private utilities as one or more credits on their bills. 
    • Maximizes the California Climate Credit. The executive order directs the California Air Resources Board (CARB) to work with the CPUC to determine ways to maximize the California Climate Credit, which is a twice annual credit that shows up on many Californians’ electric and gas bills in the spring and fall and is funded by the state’s Cap-and-Trade program.
    • Manages and reduces electric costs for the long-term. The executive order asks the CPUC to evaluate electric ratepayer supported programs and costs of regulations and make recommendations on additional ways to save consumers money. It also asks the CPUC to pursue any federal funding available to help lower electricity costs for Californians. Additionally, the executive order directs the California Energy Commission (CEC) to evaluate electric ratepayer-funded programs and identify any potential changes that could save Californians money on their bills. 
    • Smarter wildfire mitigation investments. The executive order directs the Office of Energy Infrastructure Safety, and requests the CPUC, to evaluate utility wildfire safety oversight practices and ensure that utility investments and activities are focused on cost-effective wildfire mitigation measures. 

    Text of the executive order is available here.

    In addition to the Governor’s action, earlier this year, the CPUC approved a proposal to reduce the price of residential electricity through a new billing structure authorized by the state Legislature. This follows actions in recent years such as providing direct relief to customers and using state funds, rather than ratepayer monies, to develop a Strategic Reliability Reserve to maintain electric grid reliability during extreme conditions.

    The Governor welcomes partnership with the legislature to further additional actions that will address electric bill affordability.

    “Californians expect us to take a hard look at their monthly energy and electricity bills and deliver reduced costs and savings for the long-term,” said Assembly Speaker Robert Rivas (D-Salinas). “I support increased oversight efforts, because regulators must ensure energy programs are implemented effectively and responsibly. The Governor’s action today is another step forward to lessen households’ total energy burden and lower the cost of living in our state.”

    “Rising electricity costs are impacting Californians and their quality of life,” said Senate President pro Tempore Mike McGuire (D-North Coast). “The state, including its regulatory agencies, needs to buckle down and blunt the expanding fiscal impacts on ratepayers. This is an important start by Governor Newsom, and the Senate plans to double down on this progress in the months ahead.”

    Press Releases, Recent News

    Recent news

    Oct 29, 2024

    News What you need to know: The Biden-Harris Administration is granting more than $1 billion to California’s ports to accelerate their transition to zero-emission operations and create good paying jobs. SACRAMENTO – California ports are about to become cleaner and…

    Oct 29, 2024

    News What you need to know: Governor Newsom today announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness. The grant agreements include strong…

    Oct 28, 2024

    News SACRAMENTO – Governor Gavin Newsom and First Partner Jennifer Siebel Newsom issued the following statement regarding the death of Barstow Fire Protection District Fire Captain Garret Miller: “Our heartfelt sympathies are with Fire Captain Miller’s family,…

    MIL OSI USA News –

  • MIL-OSI Global: TB in Africa: global report shows successes, but Nigeria and DRC remain important hotspots

    Source: The Conversation – Africa – By Tom Nyirenda, Extraordinary Senior Lecture in the Department of Global Health, Stellenbosch University

    The World Health Organization’s 2024 Global Tuberculosis report reveals a sobering reality. Formidable challenges remain in the fight against the world’s most infectious disease: persistent poverty in high burden countries; increased rates of infection among vulnerable populations; the inability to find and treat all missing cases; and funding shortfalls.

    The WHO’s report measures progress in two ways: the number of TB-related deaths, and the number of people who become ill. There is still a long battle ahead to eradicate a disease that results in over 10 million patients among those already infected and claims around 1.5 million lives each year. This even though it is preventable and curable.

    The good news is that some countries in Africa have made significant progress in reducing infection rates and TB-related deaths.

    Global health specialist Tom Nyirenda assesses some of the report’s key findings and messages.

    Tackling poverty beats TB

    In 2023, an estimated 10.8 million people fell ill with TB worldwide, including 6.0 million men, 3.6 million women and 1.3 million children. This is slightly more than the 10.6 million people recorded in 2022.

    TB can be defeated because we have good diagnostic tools and effective treatment for the commonest forms of the disease. Global funding, which is critical in fighting TB, is not yet up to the scale that is required to stop the disease. Only 26% of the funding committed by global partners to TB prevention, diagnostic and treatment services has materialised so far.

    Good diagnostic tools and treatment aren’t the panacea. Almost 87% of TB cases are from 30 high burden poor countries of the world. Slow or lack of economic progress of affected populations is one of the greatest challenges the world continues to face.



    Read more:
    New TB skin test could offer cheaper and easier way to detect the disease

    TB-related deaths

    On the positive side, progress has been made in reducing TB related deaths in the Africa region. The continent saw the biggest drop in TB related deaths since 2015 of all six regions – 42%. The European region came next with TB deaths down by 38% in the same period.

    When it comes to TB infections the WHO African and European regions have made the most progress: a reduction of 24% in Africa and 27% in Europe.

    One of the main reasons for the success in Africa has been progress in treating HIV patients. This is because TB is one of the most common opportunistic infections among patients with HIV. (Opportunistic infections occur more often or are more severe in people with weakened immune systems.)

    Before antiretrovirals transformed treatment for HIV patients, the African continent had the highest TB-HIV co-infection rates in the world. High mortality was experienced among co-infected patients.

    At one stage HIV prevalence among TB patients was estimated to be as high as 90% in some areas of sub-Saharan Africa.

    Treating co-infected patients with antiretrovirals has contributed significantly to the drop in TB-related cases and deaths on the continent.

    Some countries have increased TB screening among vulnerable groups such as children and those who live in confined areas, such as prisoners and displaced people.

    Mixed bag of infection rates

    Successes within the African region vary from country to country.

    For example Nigeria and the Democratic Republic of Congo are among eight countries that accounted for about two-thirds of the global number of people estimated to have developed TB in 2023. Nigeria has 4.6% of the global new cases and the DRC has 3.1%.

    It’s noteworthy that both countries have high levels of poverty; they are vast, with huge populations; and their health services are limited compared to the scale of disease burdens they face.



    Read more:
    Medical science has made great strides in fighting TB, but reducing poverty is the best way to end this disease

    Sometimes increases in reported cases are not a bad thing. They can be due to improved case finding or better diagnostic procedures. But vigilance is required to maintain the drive towards achievement of global targets.

    Barriers to seeking treatment

    Families of TB sufferers often have to bear costs such as for medications, special foods, transport, and a loss of income.

    Such expenses sometimes discourage TB sufferers from seeking treatment.

    The WHO global report estimates families in many countries in Africa are among those facing “catastrophic total costs” as a result of members becoming ill with TB. This is when direct and indirect costs account for more than 20% of a family’s annual household income. The countries where this is the case include Niger, Ghana, Burkina Faso, Tanzania and South Africa.

    Vaccine race

    The only vaccine against TB, the Bacillus Calmette-Guérin vaccine, has been used for more than 100 years. It is largely effective for children under five, but less so in older people. And it can’t be used on patients who have certain medical conditions.

    Development of vaccines is a lengthy and costly exercise. Only one-fifth of the finance necessary for research has been forthcoming to date.



    Read more:
    TB: gene editing could add new power to a 100-year-old vaccine

    The good news is that of all infectious diseases TB is probably the one that has the most vaccine candidates in the pipeline (about 17). There are currently six vaccine candidates for adults in phase III trials. They could be available within the next five years.

    Beating the disease will require an effective primary or recurrent TB prevention vaccine or a therapeutic vaccine for those already infected with the TB bacteria but who have not yet developed the disease.

    Future threats

    Climate change will affect food security and nutrition, essential for recovery from TB, and also diverting TB resources to epidemics and pandemics associated with it.

    Human conflict, migration and displacement are other threats that world faces that will hinder TB infection control and treatment.

    There is also the urgent need to tackle drug-resistant tuberculosis.

    These dangers strengthen the case for multi-sectoral collaboration to share rare resources and strive for a meaningful impact. The speed at which COVID-19 vaccines were developed in the middle of a pandemic and global lockdowns shows this is possible in better and worse times.

    What needs to be done

    Without government support the war against TB will never be won. Every country and every community is different. It is therefore essential that locally relevant economic research is conducted in every situation to guide policies that reduce the economic burden of TB on communities. Generated evidence should guide policy and practice. Above all good financing should be mobilised, with governments leading the course.

    Tom Nyirenda is affiliated with European and Developing Countries Clinical Trials Partnership -EDCTP.

    – ref. TB in Africa: global report shows successes, but Nigeria and DRC remain important hotspots – https://theconversation.com/tb-in-africa-global-report-shows-successes-but-nigeria-and-drc-remain-important-hotspots-242489

    MIL OSI – Global Reports –

  • 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 

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI Security: Leesburg native serving at U.S. Navy Medicine Readiness and Training Command Guantanamo Bay on the path to becoming an officer

    Source: United States Navy (Medical)

    Story courtesy of Ashley Craig, Navy Office of Community Outreach

    MILLINGTON, Tenn. – Petty Officer 1st Class Breanna Funderburk, a native of Leesburg, Florida, was recently selected for the Medical Service Corps In-Service Procurement Program while serving in the U.S. Navy assigned to U.S. Navy Medicine Readiness and Training Command Guantanamo Bay, Cuba.

    The Medical Service Corps In-Service Procurement Program is a pathway for career-driven active-duty sailors to become commissioned officers.

    Funderburk graduated from Leesburg High School in 2016. Additionally, Funderburk earned an associate degree in health science from Incarnate Word University in 2020, a bachelor’s degree in healthcare administration from Purdue Global University in 2022 and a master’s degree in healthcare administration from Louisiana State University Shreveport in 2024.

    The skills and values needed to succeed in the Navy are similar to those found in Leesburg.

    “Growing up in my hometown, and because of poverty levels of the economy, I always sought to be successful,” said Funderburk. “With this goal in mind, I began working at the age of 15 and diligently studied in school to ensure that this was to be my outcome. I earned two scholarships when I graduated high school, yet I returned these and knew that there was something greater out there for me. I carried my desire for higher education and work ethic with me as I began my naval career just seven and a half years ago. Everything happens for a reason and I wouldn’t be who I am today without the hometown experiences that shaped me into who I am and who I continue be in my naval career.”

    Funderburk joined the Navy seven and a half years ago. Today, Funderburk serves as a hospital corpsman.

    “I joined the Navy to find a solid foundation while pursuing higher education and to challenge myself in ways I couldn’t have imagined if I stayed in my comfort zone,” said Funderburk. “I wanted to serve a greater purpose, gain new skills and grow as a person by exploring opportunities beyond my hometown. The Navy offered me not only stability but also the chance to be a part of something bigger, experience new cultures and contribute to something meaningful. It’s been a decision that has expanded my horizons in ways I never thought possible.”

    Naval Hospital Guantanamo Bay provides health care to the U.S. Naval Station Guantanamo Bay community, which consists of approximately 4,500 military members, federal employees, U.S. and foreign national contractors and their families. The hospital also operates the only overseas military home health care facility providing care to elderly special category residents who sought asylum on the installation during the Cuban Revolution.

    “What I love most about my role in the Navy is the opportunity to mentor and guide junior sailors and my peers,” said Funderburk. “The ‘sailorization’ process – helping others grow, develop their skills, and reach their potential – is deeply rewarding for me. As a leader, I strive to embody a servant leadership style, where my focus is on supporting others and empowering them to succeed. There’s nothing more fulfilling than watching someone I’ve mentored overcome challenges and achieve their goals. Knowing that I played a part in their growth is a reminder of the true purpose of leadership; serving others and uplifting those around you.”

    With 90% of global commerce traveling by sea and access to the internet relying on the security of undersea fiber optic cables, Navy officials continue to emphasize that the prosperity of the United States is directly linked to recruiting and retaining talented people from across the rich fabric of America.

    Funderburk serves a Navy that operates far forward, around the world and around the clock, promoting the nation’s prosperity and security.

    “We will earn and reinforce the trust and confidence of the American people every day,” said Adm. Lisa Franchetti, chief of naval operations. “Together we will deliver the Navy the nation needs.”

    Funderburk has many opportunities to achieve accomplishments during military service.

    “My proudest achievement in the Navy is being selected through the Medical Service Corps In-Service Procurement Program to commission as a United States Navy officer with my master’s degree in healthcare administration,” said Funderburk.

    Funderburk can take pride in serving America through military service.

    “Serving in the Navy means being part of something greater than myself,” said Funderburk. “It’s about commitment, sacrifice and dedication to protecting our nation and supporting those in need. It’s given me the opportunity to grow both personally and professionally, to learn from diverse experiences and to develop a strong sense of discipline and teamwork. Serving in the Navy has instilled a deep pride in knowing that my contributions make a tangible impact, and it’s allowed me to build a lifelong bond with others who share the same mission of service and excellence.”

    Funderburk is grateful for the opportunities the Navy has provided to help them reach their goals.

    “A main goal of mine when I joined was to have stability and a strong foundation while attending college and I sought to be very academically successful,” said Funderburk. “With that, the Navy has provided me with great opportunities and I was able to go to corpsman-specialized schooling, which awarded me with my associate in health sciences and a license as a Certified Respiratory Therapist, which is transferable to the civilian sector. Later, at my second command at Navy Medicine and Training Command Fort Belvoir, I was able to complete both my bachelor’s and master’s degrees in healthcare administration through online colleges within four years of being stationed there.

    “It can be very challenging balancing the active duty lifestyle and excelling in your education, but it is not impossible.”

    MIL Security OSI –

  • MIL-OSI Economics: Christine Lagarde: Interview with Le Monde

    Source: European Central Bank

    Interview with Christine Lagarde, President of the ECB, conducted by Eric Albert, Philippe Escande and Béatrice Madeline on 28 October 2024

    31 October 2024

    In September, former ECB President Mario Draghi published an alarming report on how the European economy is falling behind. Do you agree with this assessment?

    Europe is falling behind. It’s true. And so is France. Mario Draghi’s report highlights the productivity gap, which is largely due to the tech sector. Tech players in Europe and the United States believe that the gap first emerged during the digital revolution that began in the mid-1990s.

    The question now is whether the boost that the United States got from the mid-1990s will continue with artificial intelligence, the accumulation of data centres and the exploitation of these data. This is the key issue. In Europe we need to roll up our sleeves and make an effort to keep those companies that start out here and then develop themselves elsewhere. We need to try to make them stay.

    So what is the solution? Do you think the gap will remain?

    We need to look at why Europe is falling behind. The energy component is key, especially as regards data centres. Labour is also important, with mobility being much greater in the United States. And regulation is a crucial issue, too. In overly simple terms, the United States is developing AI very quickly, and already has a number of major players. In the meantime, not only is Europe lacking such big players, but it has also become a pioneer in AI regulation. This causes players in this sector to say “OK, let’s do this elsewhere. It’ll be easier and we’ll have fewer obstacles and fewer restrictions”.

    What about the public funding provided to businesses in the United States?

    The fourth factor that is contributing to Europe falling behind is the “light” industrial policy pursued by the United States. It’s not light in terms of money because the Inflation Reduction Act of August 2022 is very large, but there are relatively few criteria to qualify for funding to start a company on US soil. When I ask manufacturers, they pretty much all agree that in Europe, the process is complicated and unwieldy. And on top of the multi-layered European system, you then have those of the Member States.

    The final factor is private funding. In the United States there are pension fund plans and other financial instruments that make it possible to channel savings and get savers (employees or retirees) interested in the future of the economy or the evolution of the stock market. In many European countries, these plans are still a long way off of those mechanisms, especially share participation and company profit sharing. Hence the need to develop a capital markets union.

    But we have been talking about this project for the past 15 years. And when Mario Draghi’s report was published, Germany immediately opposed common borrowing. Is Europe really capable of reacting?

    You’re right. We have been talking about a capital markets union since the time of Jean-Claude Juncker (President of the European Commission from 2014 to 2019), and little progress has been made. The Letta and Draghi reports are a wake-up call for Europeans, a warning. The assessment is severe but fair and provides specific recommendations. It suggests that all Europeans should gear up and be ready to give up a bit of sovereignty to ‘combine the best,’ to paraphrase what Paul Valéry once said. But what gives me hope is the engagement of all European institutions on the capital markets union. The ECB’s Governing Council is firmly engaged as well. We must use this momentum.

    In 2020, the plan for a collective European loan of €750 billion was a major step forward. Four years later, less than half of the loan has been allocated. Should we see this as another example of European slowness?

    We had exactly the same problem during the Greek crisis. The administrations of the different countries are not always able to quickly manage the incoming funds. The finance ministers of countries receiving a lot of funds tell you that they have of course identified what bridge or railway line should be constructed, but that they need to obtain local authorisations as well as permissions to expropriate property, and that environmental organisations are taking court actions. All of this takes a lot of time.

    In this context, what consequences could the US elections on Tuesday 5 November have for Europe?

    I do not want to give an opinion on any particular candidate. But US international trade policy will of course have an impact on economic activity in the rest of the world, and primarily on China. Whoever wins, if trade fragmentation worsens, the effect on global GDP will be negative, with losses reaching 9% in a severe scenario of full decoupling according to ECB simulations. But remember: when Joe Biden was elected, everyone thought that he would remove the customs barriers erected by his predecessor (Donald Trump). Nothing came of that.

    Between China, which is withdrawing towards Asia, and the United States, which is closing up again, isn’t Europe, as a partner to both powers, the big loser?

    That’s why we need to act and roll up our sleeves. Will Europe need to undergo another crisis for it to bring about reforms? It’s always in times of crisis that we are able to make things happen. That may be why Mario Draghi speaks of “agony”, it’s a way of saying “the crisis is here, now, do something!”.

    There is talk of a European decoupling. But isn’t there a French decoupling within Europe?

    If you compare today’s GDP figures with those of 2019, the United States has grown by 10.7%, the European average by 4.8% and France by 3.7%. France is lagging behind the European average.

    What is your view of the surge in the French deficit?

    The prospect of returning in line with European standards by applying European fiscal rules should serve as a binding guideline.

    And are the French promises to restore public finances credible?

    As I said, applying European fiscal rules should serve as a binding guideline.

    Will we be heading towards a recession in Europe in 2025?

    Based on the information now available and our current assessment, we don’t see a recession in 2024, nor in 2025, nor in 2026.

    What will drive this growth, given the weakness in demand?

    The two levers are exports and domestic demand, which is set to pick up. Today, with wages rising and inflation falling, disposable income is increasing. For the moment, this benefits savings more than consumption. But we are convinced, and economic history shows us, that this additional disposable income will ultimately flow towards consumption.

    How do you explain the fact that it is proving so difficult for consumption to recover?

    We can indeed ask why households are choosing to save their money instead of spending it. It could be that people are reluctant to make major purchases owing to geopolitical uncertainty. A second explanation could be related to the return on their savings, which is still fairly high in the euro area. A third could be that people are deciding it’s better to save rather than spend when they expect their taxes or other contributions to go up.

    Euro area inflation was at 1.7% in September, below your 2% target. Is it now under control?

    The target is in sight but I’m not going to tell you that inflation is defeated yet. Inflation stood at 1.7% in September. Excluding energy and food, it was still at 2.7%. We are pleased about the 1.7% figure, but we also know that inflation is going to rise again in the coming months simply because of base effects. In September energy prices were 6.1% lower than a year earlier, bringing down the cost of the consumption basket. Besides, inflation in the services sector – which is highly dependent on wages – is still at 3.9%. So, prudence is warranted.

    How do you respond to those who say the ECB was too late in reacting to the rise in inflation?

    I tell them we should look at the facts. Don’t forget that inflation was at 10.6% two years ago. It has fallen back to 1.7%. Perhaps we could have started a few months earlier. But we raised rates at the fastest pace ever and we managed to bring down inflation considerably in a short period of time. I now want to see inflation reach the 2% target on a sustained and durable basis. Unless there is a major shock, this will happen during the course of 2025.

    And what do you say to those who now accuse you of cutting rates too late and not quickly enough?

    The pace at which interest rates are cut will be determined by the economic data we receive in the coming weeks and months – based on our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. And to revitalise growth, urgent action is needed in the area of structural reforms.

    The spread between France and Germany has increased from 0.5% to 0.8% since the French National Assembly was dissolved. The ECB has an instrument that it can use to intervene and calm the markets. Are you ready to use it?

    We have clearly outlined the conditions under which we will use this instrument. And that is not an issue today.

    A number of emerging countries brought together by the BRICS (Brazil, Russia, India, China and South Africa) are thinking about a payments system to circumvent the dollar. Is dedollarisation happening?

    That would require another country to be able to take on the role of reserve currency. China is preparing for that, but it isn’t ready yet. I won’t see the renminbi take the place of the dollar in my lifetime.

    MIL OSI Economics –

  • MIL-OSI Economics: Euro area bank interest rate statistics: September 2024

    Source: European Central Bank

    31 October 2024

    Bank interest rates for corporations

    Chart 1

    Bank interest rates on new loans to, and deposits from, euro area corporations

    (percentages per annum)

    Data for cost of borrowing and deposit interest rates for corporations (Chart 1)

    The composite cost-of-borrowing indicator, which combines interest rates on all loans to corporations, decreased in September 2024. The interest rate on new loans of over €1 million with a floating rate and an initial rate fixation period of up to three months decreased by 31 basis points to 4.72%, driven by the interest rate effect. The rate on new loans of the same size with an initial rate fixation period of over three months and up to one year fell by 31 basis points to 4.47%, driven by the interest rate effect. The interest rate on new loans of over €1 million with an initial rate fixation period of over ten years decreased by 22 basis points to 3.58%. In the case of new loans of up to €250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged fell by 12 basis points to 5.02%.
    As regards new deposit agreements, the interest rate on deposits from corporations with an agreed maturity of up to one year fell by 14 basis points to 3.28% in September 2024. The interest rate on overnight deposits from corporations stayed almost constant at 0.88%.
    The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate and an initial rate fixation period of up to one year decreased by 22 basis points to 5.19%, driven by the interest rate effect.

    Table 1

    Bank interest rates for corporations

    i.r.f. = initial rate fixation
    * For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories. Outstanding amounts data are derived from the ECB’s monetary financial institutions balance sheet statistics.

    Data for bank interest rates for corporations (Table 1)

    Bank interest rates for households

    Chart 2

    Bank interest rates on new loans to, and deposits from, euro area households

    Data for cost of borrowing and deposit interest rate for households (Chart 2)

    The composite cost-of-borrowing indicator, which combines interest rates on all loans to households for house purchase, decreased in September 2024. The interest rate on loans for house purchase with a floating rate and an initial rate fixation period of up to one year decreased by 11 basis points to 4.59%. The rate on housing loans with an initial rate fixation period of over one and up to five years fell by 6 basis points to 3.82%. The interest rate on loans for house purchase with an initial rate fixation period of over five and up to ten years decreased by 10 basis points to 3.52%. The rate on housing loans with an initial rate fixation period of over ten years fell by 10 basis points to 3.27%, mainly driven by the interest rate effect. In the same period the interest rate on new loans to households for consumption decreased by 7 basis points to 7.75%.
    As regards new deposits from households, the interest rate on deposits with an agreed maturity of up to one year remained broadly unchanged at 2.97%. The rate on deposits redeemable at three months’ notice stayed constant at 1.75%. The interest rate on overnight deposits from households remained broadly unchanged at 0.37%.

    Table 2

    Bank interest rates for households

    i.r.f. = initial rate fixation
    * For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories; deposits placed by households and corporations are allocated to the household sector. Outstanding amounts data are derived from the ECB’s monetary financial institutions balance sheet statistics.
    ** For this instrument category, the concept of new business is extended to the whole outstanding amounts and therefore the business volumes are not comparable with those of the other categories. Outstanding amounts data are derived from the ECB’s monetary financial institutions balance sheet statistics.

    Data for bank interest rates for households (Table 2)

    Further information

    The data in Tables 1 and 2 can be visualised for individual euro area countries on the bank interest rate statistics dashboard. Additionally, tables containing further breakdowns of bank interest rate statistics, including the composite cost-of-borrowing indicators for all euro area countries, are available from the ECB Data Portal. The full set of bank interest rate statistics for both the euro area and individual countries can be downloaded from ECB Data Portal. More information, including the release calendar, is available under “Bank interest rates” in the statistics section of the ECB’s website.

    For media queries, please contact Nicos Keranis, tel.: +49 69 1344 7806

    Notes:

    • In this press release “corporations” refers to non-financial corporations (sector S.11 in the European System of Accounts 2010, or ESA 2010), “households” refers to households and non-profit institutions serving households (ESA 2010 sectors S.14 and S.15) and “banks” refers to monetary financial institutions except central banks and money market funds (ESA 2010 sector S.122).
    • The composite cost-of-borrowing indicators are described in the article entitled “Assessing the retail bank interest rate pass-through in the euro area at times of financial fragmentation” in the August 2013 issue of the ECB’s Monthly Bulletin (see Box 1). For these indicators, a weighting scheme based on the 24-month moving averages of new business volumes has been applied, in order to filter out excessive monthly volatility. For this reason the developments in the composite cost of borrowing indicators in both tables cannot be explained by the month-on-month changes in the displayed subcomponents. Furthermore, the table on bank interest rates for corporations presents a subset of the series used in the calculation of the cost of borrowing indicator.
    • Interest rates on new business are weighted by the size of the individual agreements. This is done both by the reporting agents and when the national and euro area averages are computed. Thus changes in average euro area interest rates for new business reflect, in addition to changes in interest rates, changes in the weights of individual countries’ new business for the instrument categories concerned. The “interest rate effect” and the “weight effect” presented in this press release are derived from the Bennet index, which allows month-on-month developments in euro area aggregate rates resulting from changes in individual country rates (the “interest rate effect”) to be disentangled from those caused by changes in the weights of individual countries’ contributions (the “weight effect”). Owing to rounding, the combined “interest rate effect” and the “weight effect” may not add up to the month-on-month developments in euro area aggregate rates.
    • In addition to monthly euro area bank interest rate statistics for September 2024, this press release incorporates revisions to data for previous periods. Hyperlinks in the main body of the press release lead to data that may change with subsequent releases as a result of revisions. Unless otherwise indicated, these euro area statistics cover the EU Member States that had adopted the euro at the time to which the data relate.
    • As of reference period December 2014, the sector classification applied to bank interest rates statistics is based on the European System of Accounts 2010 (ESA 2010). In accordance with the ESA 2010 classification and as opposed to ESA 95, the non-financial corporations sector (S.11) now excludes holding companies not engaged in management and similar captive financial institutions.

    MIL OSI Economics –

  • 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.

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: Property Market – Slowing rate of decline signals potential value floor – CoreLogic

    Source: CoreLogic

    Property values in New Zealand fell -0.5% in October according to CoreLogic’s hedonic Home Value Index (HVI) – the eighth drop in a row – taking the total decline in values since February to -5.1%.

    Values across Aotearoa New Zealand now stand at $805,984, which is around 18% below the post-COVID cyclical peak but still about 16% higher than the pre-COVID level from March 2020.
    Around the main centres, Te Whanganui-a-Tara Wellington dropped by -1.2% in October, with both Kirikiriroa Hamilton and Tāmaki Makaurau Auckland down by -0.7%. Ōtepoti Dunedin’s fall was slightly smaller (-0.4%), while Tauranga was flat in October, and Ōtautahi Christchurch edged up by 0.2%.
    Although the property market remained relatively sluggish in October, the pace of decline has roughly halved in the past couple of months after an average fall of around -0.9% from May to August.
    CoreLogic NZ Chief Property Economist, Kelvin Davidson said that could be a sign of an approaching floor for property values.
    ““The latest fall in national home values suggests that even though mortgage rates have already dropped quite sharply, the influence of job losses and the wider feelings of reduced job security are playing the more important role at present. This was echoed in the latest ANZ consumer confidence survey. That said, it’s not all one-way traffic for property values, with Ōtautahi Christchurch continuing to show relative resilience amongst the main centres, alongside Tauranga in October.”
    “It’s hard to prove categorically, but there’s certainly a ‘vibe’ out there that The Garden City is still considered an attractive place for people outside the area to relocate to, driven by both lifestyle and affordability.”
    “There has also been a change in the on-the-ground mood around Aotearoa NZ’s wider property market in the past few weeks. That shift has been seen across a range of segments, from property valuers to individual investors, to developers and construction industry consultants.”

    “Rising sentiment may take some time to hit the ‘hard data’, but there’s a sense that the end could be in sight for the recent downturn.”

    “For property investors in particular the falls in mortgage rates are key, flowing directly through to better cashflow on a typical rental purchase – or in other words reduced losses – and smaller top-ups from other income. Increased interest deductibility supports that effect too.”

    Tāmaki Makaurau Auckland

    Each of Tamaki Makaurau Auckland’s sub-markets saw property values decline in October, although the falls in Papakura and Franklin were marginal (-0.1%). Elsewhere, the falls ranged from -0.4% in Rodney, up to -0.8% in Auckland City and -0.9% in Manukau.

    Generally speaking, values across Tamaki Makaurau Auckland are still around 21-24% lower than the post-COVID peak (apart from a drop of closer to 26% in Waitakere), while the falls since the more recent ‘mini peak’ at the start of this year have typically been between -7% and -9%.

    Mr Davidson added: “Auckland’s property market continues to be weighed down by abundant supply, both in terms of existing properties listed for sale as well as the continued pipeline of new-builds being completed. However, there are signs in a market such as Papakura that values have started to flatten out to some degree, so it’ll be interesting to see if the falls also lessen or stop altogether in other parts of the super-city in the next few months too.”

    Te Whanganui-a-Tara Wellington

    The wider Te Whanganui-a-Tara Wellington area underperformed in October, with Porirua down by -0.5%, and then the falls increasing to -0.7% to -0.8% in the Hutt Valley, and to more than 1% in both Kapiti Coast and Wellington City itself. Porirua has been slightly more resilient than elsewhere over a wider three-month horizon – while across the rest of Wellington, values are down by close to 3% or more since July.

    “Wellington looks to be a good example of where job insecurity is outweighing the benefits to sentiment and households’ finances of lower mortgage rates. This could also make it an interesting test case for property values, in terms of the strength of any recovery in 2025 amidst the backdrop of labour market weakness.”

    Regional results

    Reflecting the counteracting influences of lower mortgage rates and job losses, property value trends across many of the provincial markets remained patchy in October. Nelson, Whanganui, Rotorua, and Gisborne all edged higher, while Queenstown was stable. But value falls of -0.7% or more were seen in Invercargill, Whangarei, and Napier.

    “Putting aside the normal monthly variability that you see in any part of the cycle, it’s interesting to note the recent divergences over the year as a whole,” Mr Davidson noted, pointing to areas such as Napier and Whangarei which were down by -7% to -9% since the latest mini-peak, compared to Whanganui and Invercargill, which were down by -1 to -2%.

    “Lower house prices in the latter two areas may have given their markets some insulation. Of course, the affordability argument certainly doesn’t apply in somewhere like Queenstown, where the market has only fallen slightly in 2024 despite a median value of $1.5m.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: UConn Receives $500,000 from Travelers to Support Housing Stipends for UConn Hartford Students

    Source: US State of Connecticut

    The UConn Foundation today announced that it will receive $500,000 from Travelers spread over the next five years to help cover the cost of room and board for qualified UConn students at the new, 200-bed residence hall on Pratt Street in Hartford.

    This marks a pivotal moment for the UConn Hartford campus, which will offer student housing for the first time when the apartment-style units open in fall 2026. The project involves transforming a former law office into a vibrant, residential community, part of the university’s broader strategy to elevate student education and experiences.

    “Thanks to this generous gift from Travelers, more students will have access to our new residence hall, which will have a transformative impact on their education and lives,” says Mark Overmyer-Velázquez, campus dean and chief administrative officer at UConn Hartford. “The residence hall will serve as a catalyst for learning as well as connecting students to the rich historical, cultural, political, and business resources of our capital city.”

    In a 2023 survey, about 70% of UConn Hartford undergraduates expressed interest in nearby student housing. Many students noted that affordability is crucial, given that most currently reside with parents.

    The new housing initiative aligns with UConn’s vision, alongside state and local leaders, to establish Hartford as a “college town” where students play an integral role in the city’s cultural landscape.

    “Our relationship with UConn spans decades, and we are proud to be a part of the university’s efforts in expanding its presence in downtown Hartford,” says Andy Bessette, executive vice president and chief administrative officer for Travelers. “UConn’s dedication to excellence in education is why it was one of our inaugural partners when we started our school-to-career pipeline program, Travelers EDGE, 17 years ago. Together, we are helping to build a brighter future for our city and state.”

    Travelers EDGE, a program that aims to give students increased access to higher education and career preparation, has supported 133 UConn scholars since its inception, with 93 interning at Travelers and 35 graduates accepting full-time jobs at the company.

    “We are thrilled that Travelers is making this transformational investment in UConn, our students, and the city of Hartford through this $500,000 donation,” says Nathan Fuerst, UConn’s vice president for student life and enrollment.

    “This visionary gift ensures the success of UConn’s expanded footprint in Hartford and helps alleviate the financial barriers facing many students who choose to live downtown. It also brings more scholars to downtown, where many will stay and establish deep roots,” Fuerst says.

    The new residence hall is one of many initiatives UConn has underway to deepen its ties with the capital city. The University recently opened its new Community Intersections & Innovation Space for research and academic use near the XL Center and is opening a café for students next fall in the Hartford Times main campus building.

    The UConn Foundation also recently launched the Hartford Residential Scholars Enhancement Fund to raise additional funds to support qualifying UConn Hartford students. Find more information about supporting the Hartford Residential Scholars Enhancement Fund [here].

    MIL OSI USA News –

  • MIL-OSI Economics: Lending and Deposit Rates of Scheduled Commercial Banks – October 2024

    Source: Reserve Bank of India

    Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) received during the month of October 2024 are set out in Tables 1 to 7.

    Highlights:

    Lending Rates:

    • The weighted average lending rate (WALR) on fresh rupee loans of SCBs stood at 9.37 per cent in September 2024 (9.41 per cent in August 2024).

    • The WALR on outstanding rupee loans of SCBs was placed at 9.90 per cent in September 2024 (9.91 per cent in August 2024).1

    • 1-Year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs remained unchanged at 8.95 per cent in October 2024 from that of September 2024.

    Deposit Rates:

    • The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.54 per cent in September 2024 as compared to 6.46 per cent in August 2024.

    • The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was placed at 6.95 per cent in September 2024 (6.93 per cent in August 2024).1

    Ajit Prasad           
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/1411

    MIL OSI Economics –

  • MIL-OSI Economics: The future of finance

    Source: Bank for International Settlements

    The title of this panel is “The Future of Finance”. I know this is an issue you have thought a lot about and one that has been a key focus area for the BIS throughout your tenure as General Manager. Why is the topic so important? How should the financial system change?

    Financial innovation is important because finance is important – it is the bloodstream of the real economy.

    Today’s financial system falls short in many dimensions: many financial transactions are too slow; many are too costly; for these reasons, useful transactions don’t take place. And in too many countries, too few people are able to access financial services. Improving the functioning of the financial system could make everyone better off.

    It is appropriate for the private sector to take the lead in financial innovation. But the public sector has a role as a catalyst for innovation, for instance, by providing the pipes and rails on which finance runs.

    Many public institutions – including central banks – are not natural innovators. They may lack experience, expertise and budgets.

    Moreover, many countries face similar challenges.

    For this reason, there can be great value in working together. 

    That is why we at the Bank for International Settlements (BIS) established the BIS Innovation Hub as a mechanism for collaboration among central banks to develop technological public goods.

    When we first came up with this concept, the idea was to have a small unit of four staff members, based in Basel. It quickly became apparent that the appetite among our member central banks to work together and innovate went far beyond that.

    Today we have more than 100 staff working in our seven Innovation Hub centres in eight locations throughout North America, Europe and Asia, as well as a strategic partnership with the Innovation Centre of the New York Federal Reserve.

    The Innovation Hub undertakes projects across six broad themes: (i) suptech and regtech, (ii) next generation financial market infrastructures, (iii) open finance, (iv) cyber security, (v) green finance and (vi) central bank digital currency, or CBDC. Our CBDC work accounts for a large part of the Innovation Hub’s project portfolio and certainly accounts for much of the public attention. But we have made important contributions in each theme.

    Since establishing the Innovation Hub, we have completed 28 projects, with another 27 currently under way. Central banks, of course, are doing their own innovations, and there are many other initiatives under way by both the public sector and the private sector.

    While all of the technological innovation has been important, it would be fair to say that it has had modest real-world impact to date. If you compare the degree of progress in the application of digital technologies in, say, the communications industry to that in the financial industry, I am sure you will agree.

    The issue is not the technology itself. As I mentioned, there have been great advances there.

    What has been lacking is a vision of how the various initiatives should fit together, and of what the financial system of the future should look like and how it should function.

    Together with Nandan Nilekani – Chairman of Infosys and the driving force behind India’s digital public infrastructure initiatives – I wrote a paper earlier this year that laid out such a vision. We call it the “Finternet”. The aim of the Finternet is to use technology to make the financial system much more user-centric and to eliminate many of the frictions that add cost and complexity to today’s financial system. It does not advocate for a specific technology, but instead aims to add some guidance about what we want to achieve.

    Let me delve more deeply into the Finternet. What does it involve, concretely?

    The Finternet rests on three broad pillars. The first is a robust economic and financial architecture. The second is the application of advanced technology. The third is a sound legal and regulatory basis. Let me address each in turn.

    The basic economic and financial architecture would resemble that of today’s financial system. As is the case today, there would be a two-tier banking system. Central bank money would be at the core, with commercial bank money accounting for the bulk of the money used day to day. This money, however, would have a more advanced digital representation. We would have tokenised central bank money, which could exist in wholesale form – the digital equivalent of central bank reserves – or retail form – the equivalent of digital banknotes. And we would have tokenised commercial bank deposits.

    But tokenising money is just the first step. To get the real benefits of tokenisation you need to combine money with other financial assets, ideally residing on the same ledger.

    Government bonds strike me as a natural starting point. These are incredibly important assets in today’s financial system. They serve as the basis for pricing all other financial assets.

    Once you have money and government bonds residing on the same platform, you essentially have the basis of the current financial system. Adding other assets to the platform would naturally follow.

    Tokenising financial assets would bring many benefits. In particular, if the assets were on a common ledger, there would be much less need for complex messaging and clearing, which are the source of so much cost and delays in today’s financial system. Tokenised assets can settle atomically, helping to further reduce the time needed for financial transactions. And tokenised assets can be programmed. This could open up a huge array of financial transactions that are not possible today.

    Of course, not all assets will be tokenised and not all tokenised assets will reside on the same ledger. So we need some way of moving assets across ledgers and from the tokenised to the non-tokenised world. Technology can also help achieve this.

    Other technologies can also help to turn the Finternet into reality. For example, compliance with anti-money laundering and countering the financing of terrorism regulations – which I would emphasise is hugely important – can also be extremely costly. Technology should allow us to automate such checks, allowing for greater reliability, lower costs and faster processing speeds. Data governance and privacy would draw on the latest privacy-preserving technology. There are many related topics we explore through our projects. One good example is Project Mandala, which has shown how to embed regulatory compliance in cross-border transaction protocols. Beyond economics and technology, the Finternet will also rest on a sound legal and regulatory basis. At a minimum, this should respect all existing laws and governance measures. Privacy, cyber security and related concerns will also need to be addressed. However, technology should also allow us to achieve greater security in the financial system.

    This all sounds very promising in principle. But can it be delivered? How could one turn the Finternet vision into a reality?

    Absolutely. Indeed, we are already taking active steps to turn it into reality, including through our Innovation Hub projects.

    Let me give you a concrete example of one such project, called Project Agorá.

    This is probably our largest Innovation Hub Project to date. We have teamed up with six central banks and more than 40 private sector institutions, coordinated by the Institute for International Finance. I should mention that Santander is one of the participants.

    The specific aim of Project Agorá is to look at whether, using tokenised deposits integrated with tokenised wholesale central bank money, we can streamline cross-border payments.

    This is an area ripe with inefficiencies, and where services in some jurisdictions have actually worsened in recent years due to the shrinkage of the correspondent banking system. One important reason is that the system, by and large, rests on legacy systems. This implies long sequences of messages being sent back and forth, across national borders, using systems that do not necessary communicate with each other very well. The various regulatory compliance measures – which are particularly important in cross-border transactions – often require manual processes, which add delays and lead to errors.

    In principle, using tokenised assets residing on unified ledgers could ease many of these burdens. Transactions using tokenised assets can settle atomically – that is immediately – with all parts of the transaction settling at once. Compliance with regulatory norms can be embedded programmatically inside the tokens. So they will be adhered to with certainty and without the need for manual intervention.

    So this is a big project, with big potential gains.

    But even more than the specific application, what really excites me about Project Agorá is that it has central banks and commercial banks working together to craft a structure that could form the basis for a future financial system.

    I mentioned before the useful catalytic role for central banks in initiating technological innovation. But central banks cannot do it alone. The two-tier banking system lies at the heart of today’s financial system. The system needs money. But very little money comes from the central bank. Commercial bank money provides the bulk of it.

    The two-tier banking system helps deliver two foundational principles. The first is the singleness of money. This ensures that a euro is a euro, whether it is the banknote in my pocket or in my deposit at Santander or any other bank. The second is settlement finality, which comes about through the final settlement of all transactions on the balance sheet of the central bank.

    We do not know what the financial system of the future will look like. But it is hard for me to imagine that it will not require a two-tier banking system. This means that as well as tokenised central bank money – particularly in wholesale form – it will require banks to provide their customers with tokenised deposits. Project Agorá provides a powerful use case, and I hope that it will spur further innovation.

    At the same time, cross-border payments can be a controversial topic. For example, I have noted media speculation recently that one of your projects – Project mBridge – could provide the basis for a BRICS initiative to circumvent sanctions. Is that plausible? Can you comment on this?

    In the Innovation Hub we try to be a catalyst for innovation. The way it works is that we talk with the community of central banks, identify their needs and then develop projects. And we do them in partnership with central banks.

    MBridge has been a project we have been involved with for four years. We have several central bank partners and many, many observers. I think the project has been a big success. It’s a payment system where through wholesale CBDCs you could facilitate tremendously cross-border transactions.

    I would say that the project has been so successful that we can declare that we have graduated out. The BIS is leaving that project, not because it was a failure and not because of political considerations but instead because we have been involved for four years and it is at a level where the partners can carry it on by themselves. That has happened already with other projects.

    At the same time, I have to say that mBridge is not mature enough to start operating; it is many years away from that.

    With respect to political aspects, the noise out there, mBridge is not the “BRICs bridge” – I have to say that categorically. mBridge was not created to cater to the needs of the BRICs. It was put together to satisfy broad central bank necessities. 

    We at the BIS – I think this is an opportunity to set record straight – we always try to be good global citizen. And the BIS does not operate with any countries, nor can its products be used by any countries that are subject to sanctions. This will continue to be the case. And all central bank members are in this mindset that we need to be observant of sanctions and whatever products we put together should not be a conduit to violate sanctions. 

    MIL OSI Economics –

  • MIL-OSI Economics: Fannie Mae Reports Net Income of $4.0 Billion for Third Quarter 2024

    Source: Fannie Mae

    WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today reported its third quarter 2024 financial results and filed its Third Quarter 2024 Form 10-Q with the Securities and Exchange Commission. The filing provides condensed consolidated financial statements for the quarter ended September 30, 2024. The following documents are now available on Fannie Mae’s website at www.fanniemae.com.

    Fannie Mae has scheduled a conference call to discuss the company’s results today at 8:00 a.m., ET. Participants may join the conference call in listen-only mode via the webcast link below.

    Listen-only webcast:
    https://event.webcasts.com/starthere.jsp?ei=1691512&tp_key=ce5c202816
    Click on the link above to attend the presentation from your laptop, tablet, or mobile device. Audio will stream through your selected device. If you have difficulty accessing the webcast, please click the “Listen by Phone” button on the webcast player and dial the number provided.

    MIL OSI Economics –

  • MIL-OSI Europe: EUAA takes first steps in implementing €2.8 million grants programme for 2024-2025

    Source: European Asylum Support Office

    The European Union Agency for Asylum (EUAA) will begin to offer financial grants for the first time, with initial projects aiming to support some of the Agency’s activities including providing information to asylum seekers and strengthening its Situational Awareness work. In a pilot phase, the Agency will further develop its database of Asylum Case Law, with a call for proposals launching today. 

    The EUAA has launched its first call for proposals, as part of a pilot phase for a new EUAA grants programme, with an expected value of 2.8 million euros for 2024-2025. The grants programme is a direct result of the Agency’s strengthened mandate. Grants will be awarded in order to help the Agency to implement several activities that are critical to fulfilling its mandate to support Member States’ asylum and reception systems.

    Over the next year, the Agency will prepare a series of calls for proposals that will provide funding to eligible organisations that can support it with several activities including:

    • Developing its collection of asylum case law: In its first call for proposals, launching today, the Agency aims to enhance the accessibility to, and collection of, jurisprudence relating to asylum – within the context of the Common European Asylum System.
    • Strengthening its information provision activities: The Agency is currently providing operational support in 11 EU countries; in several countries this includes providing information to applicants for international protection. At times, this involves Civil Society organisations and International Organisations, which may soon be able to benefit from EU funding under the EUAA grants programme.
    • Strengthening support to resettlement: The Agency will seek to strengthen its resettlement activities by creating new Resettlement and Support Facilities (RSFs). They will serve as important locations for coordinated work between the EUAA and representatives of EU+ countries’ resettlement and humanitarian admission programmes.
    • Enhancing the implementation of the European Asylum Curriculum: Comprised of 50 different training modules, a future grant will support national capacity to implement the EUAA’s European Asylum Curriculum, and foster greater convergence in Europe’s asylum and reception systems.

    Background

    Under Article 56(2) of the EUAA Regulation, the Agency is newly empowered to offer grants, to help it discharge its responsibilities. The Agency supports Member States in implementing their asylum and receptions systems by implementing the tasks set out in Article 2 of the same Regulation. To that end, the Agency will begin to offer grants, in line with the principles of the EU’s Financial Regulation.

     

    MIL OSI Europe News –

  • MIL-OSI United Kingdom: Government takes first steps to fix the foundations and save the NHS

    Source: United Kingdom – Executive Government & Departments

    More than £3 billion has been set aside to mend crumbling wards and bring NHS technology into the 21st century.

    • Concrete steps to fix the foundations and rebuild Britain’s public services to make them fit for generations to come.
    • More than £2 billion to upgrade NHS technology and £1 billion to deal with massive NHS maintenance backlog.
    • NHS will deliver 2% productivity growth in new commitment.

    New technology and functioning hospitals will be the first priority in the Government’s ambition to modernise the NHS and make it fit for the future. 

    More than £3 billion has been set aside to mend the crumbling wards and bring healthcare tech into the 21st century – to give patients the right care, in the right location, with the right technology. 

    It’s only with this new technology and functioning hospitals that the NHS can begin to reform in earnest – and create a health service that can thrive for generations to come. 

    This is part of the Chancellor’s record-breaking £22.6 billion increase in day-to-day spending and £3.1 billion capital boost for the Department for Health and Social Care from 2023/24 to 2025/26, which will reduce waiting times and rebuild the NHS. 

    Paired with reforms set out in the Government’s 10-Year Health Plan, this overdue injection of capital spending will fix the foundations and make the delivery of healthcare more efficient for generations to come. It will move us from hospital to community, analogue to digital, and from sickness to prevention. 

    It comes alongside a commitment to deliver 2% productivity growth to the nation’s healthcare system.

    Prime Minister, Rt Hon Keir Starmer, said:

    We’re fixing the foundations to deliver change – by fixing the NHS and rebuilding Britain, while ensuring working people don’t face higher taxes in their payslips.

    Yesterday’s budget marks a huge step towards that – setting us on the path to make our public services fit for the future.

    This new settlement follows a shocking report by Lord Darzi earlier this year, which laid bare the chronic underinvestment in both facilities and technology that has been stunting the NHS.  

    He concluded the last decade was a “missed opportunity” to prepare the NHS for the future and embrace the technologies that would enable a shift in the model from ‘diagnose and treat’ to ‘predict and prevent’— something he warned about 15 years ago. 

    Yesterday’s budget puts an end to that – with £2 billion set aside to tilt the NHS towards technology and £1 billion to deal with the bulging backlog of maintenance work that has left hospitals on their knees. 

    The investment of more than £2 billion will transform the way NHS staff work as the service looks to harness new technologies to free up their time so they can focus on the care and treatment of patients. 

    The £1 billion will tackle critical repairs and the NHS maintenance backlog which has built up since 2010; something highlighted by Lord Darzi, which has meant the NHS has been left in a ‘critical condition’.

    Chancellor of the Exchequer, Rt Hon Rachel Reeves, said: 

    This was a Budget to fix the foundations and deliver change – starting by fixing the NHS.   

    It’s a service that matters to so many of us and this is us delivering on our promise of change.

    Health and Social Care Secretary, Wes Streeting, said: 

    We’re on a mission to fix our broken NHS by driving fundamental reform, to bring our analogue health service into the digital age. We will put the latest kit in the hands of NHS staff and use modern technology to give patients real control over their own healthcare. 

    Through our 10-Year Health Plan we will cut waiting lists, reduce waiting times and get the health service delivering for patients and staff once again.

    Dr Vin Diwakar, NHS National Director for Transformation, said:

    The NHS has already made £2 billion of efficiency savings so far this financial year, and the Chancellor’s confirmation of funding for next year will allow us to continue to roll out technology to improve productivity and switch services from analogue to digital.  

    Whether it is critical estates maintenance, cyber security or digitising patient records, the NHS is committed to working with the Government in the coming months to fix the foundations of the health service, while also transforming for the future.

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)

    Source: Hong Kong Government special administrative region

    PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)
    PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)
    ******************************************************************************************

    The following is issued on behalf of the Hong Kong Monetary Authority: 

    Discussions to anchor a joint US$1 billion fund to invest in companies with Hong Kong nexus expanding to Saudi Arabia to drive localisation of key industries, including manufacturing, renewables, fintech and healthcare
    Collaboration marks significant milestone aligning with Saudi Vision 2030 and with Hong Kong’s position as one of the world’s leading financial hubs

         PIF and the Hong Kong Monetary Authority (HKMA) today (October 31) signed a memorandum of understanding (MoU) to work towards jointly anchoring a new investment fund, with a target size of US$1 billion. The MoU was signed at the 8th edition of the Future Investment Initiative (FII) in Riyadh.     Under the MoU, the fund would explore investment in manufacturing, renewables, fintech and healthcare, supporting the localisation in Saudi Arabia of companies connected to Hong Kong and the Greater Bay Area. It would enable the creation of highly skilled local jobs and drive economic growth through fostering regional champions in the target sectors. It would reinforce Hong Kong’s position as one of the world’s leading financial hubs, leveraging its diverse talent pool, efficient financial infrastructure and deep liquidity.     The signing of this MoU is a new milestone and underlines the economic ties between two leading institutions – PIF and HKMA. The proposed new fund aligns with PIF’s strategy of economic diversification and sustainability.     This partnership has the potential to drive shared prosperity by investing in industries that will shape future economies, combining HKMA’s long-term investment expertise with PIF’s strategy for the target sectors.     The new fund would promote foreign direct investments via Hong Kong, providing a platform for companies to internationalise their businesses and have access to attractive investment opportunities in Saudi Arabia.

     
    Ends/Thursday, October 31, 2024Issued at HKT 20:45

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: ICYMI: Murphy Administration Announces Approval of Triennium 2 Energy Efficiency Programs

    Source: US State of New Jersey

    TRENTON – The New Jersey Board of Public Utilities (NJBPU) today announced the approval of Triennium 2 (T2) energy efficiency programs proposed by the state’s seven electric and gas utilities. In the process of supporting building decarbonization and energy conservation, these programs will prioritize low-income customers who shoulder disproportionately high energy burdens.

    “Today’s approval of the Triennium 2 energy efficiency programs marks a major milestone in our progress toward achieving the goals set out in Governor Murphy’s Energy Master Plan, which is paving the way for a healthier, more sustainable Garden State,” said NJBPU President Christine Guhl-Sadovy. “By bolstering New Jersey’s ongoing building decarbonization efforts and the NJBPU’s robust array of energy efficiency initiatives, the T2 programs will further boost long-term cost and energy savings for New Jersey customers.”

    “These ambitious programs are the largest single step by New Jersey to achieve Governor Murphy’s ambitious goal in EO 316 to electrify 400,000 residential and 20,000 commercial units by 2030,” said Eric Miller, Executive Director of the Office of Climate Action and the Green Economy. “The steps taken today by the BPU will grow our clean energy workforce, lower bills for participating customers, and reduce greenhouse gas emissions.”

    Triennium 2 is the second cycle of the State’s multi-year utility-run energy efficiency programs. Established by the Clean Energy Act of 2018, natural gas utilities must achieve energy savings of 0.75% and electric utilities must achieve energy savings of 2% of the average annual usage in the prior three years within five years of implementation of their energy efficiency programs.

    To date, it is estimated that Triennium 1 (T1) programs have disbursed $1.25 billion in financial incentives to ratepayers statewide and reduced annual electricity usage by 3 million megawatt hours, annual natural gas usage by 8.5 million MMBtu, and reduced customers’ utility bills by $600 million. T1 resulted in 1.4 million metric tons of annual greenhouse gas emission reductions, which is equivalent to approximately 300,000 cars removed from the road per year.   

    The T1 portfolio was expanded in T2 to address two important challenges for NJ: building decarbonization and demand response. The building decarbonization start-up programs incentivize adoption of key measures such as electric heat pumps and water heaters to reduce building emissions from fossil fuels. Demand response programs encourage homeowners and businesses to reduce consumption of energy at peak times through smart thermostats, controls, and price signals. Collectively, over $3.75 billion has been budgeted for the programs and will be implemented over a 30-month period from January 1, 2025 through June 30, 2027. This investment will help the State achieve Governor Murphy’s goals outlined in Executive Order 316 and are anticipated to reduce annual electricity usage by 2.3 million megawatt hours, annual natural gas usage by 8.9 million MMBtu, and annual greenhouse gas emissions by 1.5 million metric tons.

    To promote energy equity, the Income-Qualified Program will have more capacity compared to T1 to provide comprehensive home energy assessments and offer health and safety, weatherization, HVAC, and other energy efficiency upgrades at no cost to eligible customers.  More broadly, programs across the utilities’ portfolios will continue to include enhanced incentives and more favorable financing terms for income-eligible customers. 

    One notable addition in T2 is the standardization of the Direct Install model, including a Public Sector Direct Install program pathway, which will help support partners in labor in growing a local workforce that represents the diverse fabric of our state. Approximately 37,000 people work in the clean buildings sector, and T2 will strengthen the pathway for diverse workers and businesses to continue to build the clean energy economy.

    For more information about State and utility-led efficiency programs, please visit: https://www.njcleanenergy.com/EEP

    About New Jersey’s Clean Energy Program (NJCEP)
    NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.

    About the New Jersey Board of Public Utilities (NJBPU)
    NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu. 

    MIL OSI USA News –

  • MIL-OSI: Assetera, Republic, and SquadApp Join Forces to Revolutionize Global Marketing & Distribution of Real-World Tokens

    Source: GlobeNewswire (MIL-OSI)

    New York, 30th October 2024: Assetera, Europe’s first EU-regulated secondary market for tokenized securities, has teamed up with leading investment firm Republic and influencer marketing platform SquadApp to globalize distribution of tokenized securities, encompassing financial assets and tangible assets. This strategic alliance aims to unlock new opportunities in the tokenized economy and enhances influencer marketing at scale for every token issuer. 

    “With tokenization gaining global regulatory support, content creators will be essential to driving retail adoption. Republic empowers all market participants to trade tokenized securities, safeguarded by the transparency and security of blockchain, said Andrew Durgee, President of Republic.

    Republic’s extensive experience in democratizing access to private investments will play a pivotal role in accelerating the adoption of tokenized assets across global markets. By leveraging Republic’s broad investor base and expertise, this establishes an inclusive, accessible marketplace for tokenized securities, empowering both issuers and investors alike.

    The collaboration will leverage Assetera’s investment and blockchain knowledge, Republic’s experience in connecting investors with businesses to create shared value, and SquadApp’s influencer marketing capabilities to transform how issuers raise awareness and capital for their projects, and distribute to their investor base. According to McKinsey, tokenized market capitalization could reach $2 trillion by 2030, while the influencer marketing industry is expected to grow to $50 billion in the same period.

    “By tokenizing shares or other financial instruments, issuers will be able to allocate assets as part of long-term marketing budgets for partnerships with influencers, effectively creating a new way to finance marketing campaigns”, Anthony Adamovich, Co-founder, CEO SquadApp.

    “This gathering not only facilitates the efficient distribution of tokens, which is a primary concern for issuers, but also provides the 3 million Republic Wallet clients with the opportunity to trade these tokens on Assetera”, Thomas Labenbacher, CEO, Founder Assetera. By integrating these services, Republic enhances the liquidity options available to its users and strengthens its position in the marketplace.
    About Republic

    Headquartered in New York City, Republic is a global financial firm operating a network of retail-focused investment platforms and an enterprise digital advisory arm. With a deep track record of legal and technical innovation, Republic is known for providing access to new asset classes to investors of all types. Backed by Valor Equity Partners, Galaxy Interactive, Hashed, AngelList and other leading institutions, Republic boasts a global portfolio of over 2,000 companies and a community of nearly three million members in over 150 countries. More than $3 billion has been deployed through investment platforms, funds, and firms within the Republic family of companies. Republic has established operations in the US, the UK, EU, the UAE, South Korea, and Singapore.

    About Assetera
    Assetera, regulated by the Austrian Financial Market Authority in the EU, is set to become a game-changer in the digital asset trading space. It will offer a range of tokenized financial instruments, including financial assets and real-world assets (RWAs) such as real estate, art, transferable securities, money market instruments, fund units, and derivatives.
    Assetera provides services to retail and institutional investors, and features a DLT system deployed on the Polygon blockchain to enable trading and atomic settlement. By utilizing blockchain technology, Assetera aims to democratize access to previously illiquid asset classes, providing clients with a secure, transparent, and efficient trading experience.

    About SquadApp
    SquadApp is a US-based, data-driven influencer marketing platform that helps brands connect with influencers globally. Specializing in optimizing campaign effectiveness and maximizing ROI, SquadApp streamlines brand-influencer collaborations, providing businesses with scalable solutions to execute high-impact influencer marketing strategies. SquadApp’s participation in this collaboration will provide tokenized projects with the critical global marketing support needed to reach diverse and global audiences.

    The Vision for Global Impact
    The partnership between Assetera, Republic, and SquadApp introduces a groundbreaking model for project promotion and global token distribution. By tokenizing financial instruments, such as shares and leveraging those assets for influencer marketing campaigns, this initiative creates a novel approach for projects and issuers to  attract investment while simultaneously building global brand visibility. This model is in line with the emerging trends in digital assets, the finance world and decentralized marketing, offering cutting-edge solutions for brands and companies to engage with audiences and thrive in the evolving digital economy.

    For more information or inquiries:
    Contact Information
    Jasmyn Pizzimbono
    PR Lead, Republic
    jasmyn@republic.co

    The MIL Network –

  • MIL-OSI: Change to the Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    To Nasdaq OMX Copenhagen
    30 October 2024
    Company Announcement No 14/2024

    Change to the Board of Directors

    Today, Ellen Dalsgaard Zdravkovic, member of the Board of Directors in the Bank of Greenland has informed us, that she steps down from the Board of Directors as of today. The change happens because she takes on a new position in another financial institution.

    Ellen Dalsgaard Zdravkovic has been a member of the Board of Directors in the Bank of Greenland since March 2021. Following the resignation, Chairman Gunnar í Liða states that: ”Ellen Dalsgaard Zdravkovic has been a well-liked member of the Board of Directors and has made a great effort for the Bank of Greenland. I thank Ellen for her contribution and wish her the best of luck going forward”.

    26 March 2025, on the Annual General Meeting, a new candidate to the Board of Directors will be recommended instead of Ellen Dalsgaard Zdravkovic. Until then, the Board of Directors in the Bank of Greenland will consist of 8 board members.

    Please direct any questions to:

    The Bank of Greenland
    Martin Kviesgaard
    Managing Director

    Attachment

    The MIL Network –

  • MIL-OSI USA: Congresswoman Barbara Lee Applauds Announcement of Over $300 Million for Port of Oakland

    Source: United States House of Representatives – Congresswoman Barbara Lee 13th District of California

    October 29, 2024

    Oakland, CA – Congresswoman Barbara Lee (CA-12) today applauded the U.S. Environmental Protection Agency’s (EPA) announcement of $322 million for the Port of Oakland to decarbonize Port activities by providing Port tenants and Port users the opportunity to transition to zero emission alternatives. This funding comes after Lee led a letter with her congressional colleagues to EPA Administrator Michael Regan in July pushing for the grant application to be approved.

    This federal funding will advance the EPA Clean Ports Program’s mission of zero-emissions equipment at the Oakland Seaport and will help improve overall air quality at the Oakland Seaport and in neighboring communities. It is the largest-ever amount of federal funding for a Bay Area program aimed at cutting emissions from seaport cargo operations. The grant will finance 663 pieces of zero-emissions equipment which includes 475 drayage trucks and 188 pieces of cargo handling equipment.  

    “The climate crisis demands that we act urgently and boldly to protect our communities,” said Congresswoman Lee. “This investment will protect Oakland from the damaging effects of fossil fuels and will move us faster toward a zero-emissions future. Further, this investment will improve air quality and reduces pollution in local communities by cutting emissions from diesel-heavy port operations. This brings us closer to an economy that provides good jobs while expanding environmental justice. I’d like to thank the Biden-Harris administration for their leadership and my colleagues in the Northern California Delegation in Congress for their work in helping secure this funding. It is critical that we continue to invest in zero-emissions operations, and I’m proud the Port of Oakland is leading the way.”

    “California’s ports move the goods that power our economy. This historic investment of over $320 million in the Port of Oakland is a monumental step forward in accelerating the zero-emission infrastructure transition,” said Senator Alex Padilla. “Thanks to the Inflation Reduction Act, we’re decarbonizing our supply chain to produce cleaner air and protect public health in neighboring communities while developing the next-generation East Bay workforce.” 

    As a result of this critical funding, emissions reductions and climate adaptation community initiatives will see actionable and measurable results for the surrounding communities in Oakland.

    “I am thrilled to support the ‘Transforming the Port of Oakland to Zero Emissions Project,’ which will not only strengthen the local workforce but also provide zero-emission transportation alternatives for everyone, especially the region’s most underserved communities. This new EPA funding for the Port of Oakland unlocks critical federal financing to meet the Bay Area’s community priorities, reducing carbon emissions and supporting climate adaptation initiatives,” said Congressman John Garamendi (CA-08). “As a senior member of the Committee on Transportation and Infrastructure, one of my top priorities in Congress is securing federal investments that promote economic and environmental justice for all Californians.”

    “The EPA’s $322 million grant to support the ‘Transforming the Port of Oakland to Zero Emissions Project’ marks a huge step in our efforts to maintain the Port of Oakland as a key hub for goods movement and a sustainability leader for our region,” said Congressman Mike Thompson (CA-04). “I was glad to join Rep. Lee as she led Congressional support for the Port of Oakland’s application for this grant. This funding will help adapt Port operations in the face of climate change and I look forward to seeing the project’s community benefits, including improvements to our air quality and opportunities for local clean energy workforce development.”

    “The Port of Oakland is vital to our local economy and it’s critical that we advance its goals to reduce emissions.  Funding through the EPA’s Clean Ports Program, made possible by the Inflation Reduction Act, will support sustainability, make our air cleaner, and create good-paying jobs. I was proud to join Congresswoman Barbara Lee and my colleagues in supporting for this funding,” said Rep. Ro Khanna (CA-17).

    “Special thanks to Congresswoman Barbara Lee for always being a champion of the Port’s decarbonization efforts,” said Port of Oakland Executive Director Danny Wan. “These grant funds and our Clean Ports partnership with our customers and our community are transformative for the Port and the region—and will accelerate all of our zero emissions efforts currently underway.”

    “The Clean Ports grant from the U.S. EPA is a major environmental victory,” said Port of Oakland Board President Michael Colbruno. “We are grateful to U.S. Senators Laphonza Butler and Alex Padilla, Congresswoman Barbara Lee, and the Bay Area congressional delegation who stood together in strong advocacy for this grant. This funding will go a long way toward decarbonizing the Oakland supply chain and providing environmental and economic benefits for the region.” 

    MIL OSI USA News –

  • MIL-OSI: Orrön Energy AB’s Nomination Committee

    Source: GlobeNewswire (MIL-OSI)

    Orrön Energy AB (“Orrön Energy”) is pleased to announce the composition of the Nomination Committee for the 2025 Annual General Meeting (“AGM”) to be held on 5 May 2025.

    The Nomination Committee has been formed with the following members:

    • Aksel Azrac (Nemesia S.à.r.l.)
    • Sussi Kvart (Handelsbanken Fonder AB)
    • Richard Ollerhead (JNE Partners LLP)

    At the Nomination Committee’s first meeting, Aksel Azrac was elected as Chair of the Nomination Committee.

    The Nomination Committee shall make recommendations to the 2025 AGM regarding:

    • Election of the Chair of the 2025 AGM
    • Remuneration of the members of the Board of Directors, distinguishing between the Chair and other members, and remuneration for Board Committee work
    • Election of members of the Board of Directors, including number of members
    • Election of the Chair of the Board of Directors
    • Remuneration of the auditor
    • Election of the auditor
    • Nomination Committee Process for the 2026 AGM, if any amendments are proposed to the Process for the 2025 AGM

    Shareholders who wish to present a motion to the Nomination Committee regarding the above-mentioned matters, should contact the Chair of the Nomination Committee, Aksel Azrac, at nomcom@orron.com no later than 31 January 2025.

    For further information, please contact:

    Robert Eriksson
    Director Corporate Affairs and Investor Relations
    Tel: +46 701 11 26 15
    robert.eriksson@orron.com

    Jenny Sandström
    Communications Lead
    Tel: +41 79 431 63 68
    jenny.sandstrom@orron.com

    Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: “ORRON”) renewable energy company within the Lundin Group of Companies. Orrön Energy’s core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics and Europe. With significant financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.

    Forward-looking statements
    Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company’s control. Any forward-looking statements in this press release speak only as of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.

    Attachment

    The MIL Network –

  • MIL-OSI USA: CONGRESSMAN PAT RYAN, GOVERNOR KATHY HOCHUL, AND MAYOR YVONNE FLOWERS ANNOUNCE LANDMARK FUNDING TO TACKLE CITY’S LEAD PIPE CRISIS

    Source: United States House of Representatives – Congressman Pat Ryan (New York 18th)

    Congressman Pat Ryan, Governor Kathy Hochul, and Mayor Yvonne Flowers Announce Landmark Funding to Tackle City’s Lead Pipe Crisis

    Lead pipes can leach the toxin into drinking water, exposing families to the extreme health hazard; Nearly $12M will help Poughkeepsie remove the toxic pipes from the city’s drinking water infrastructure

    Announcement builds on Ryan’s record of fighting for clean water for Hudson Valley families and his commitment to eliminating sources of lead exposure from NY-18 communities

    POUGHKEEPSIE, NY  –  Today, Congressman Pat Ryan, Governor Kathy Hochul, and Mayor Yvonne Flowers announced $11,869,472 in funding to tackle Poughkeepsie’s lead pipe crisis and remove the toxic service lines from the city’s drinking water system. The funding from New York State will help the city identify the locations of lead service lines, inventory the extent of the city’s lead pipe crisis, and fund the beginning of lead pipe removal projects. Congressman Ryan has fought for federal resources to help Poughkeepsie address its lead pipe crisis, including bringing Environmental Protection Agency (EPA) leadership to the city last year. 

    “Freedom means every American has the right to breathe clean air and drink clean water, and that’s why I’m pushing relentlessly to remove every last toxic lead pipe from the Hudson Valley,” said Congressman Pat Ryan. “Today’s funding is a huge step towards ensuring that parents in Poughkeepsie never have to worry if the water coming out of the faucet is safe for their kids. I’m proud to work alongside Governor Hochul and Mayor Flowers in this fight – we will not rest until our communities are free from toxic lead pipes for good.”

    “When it comes to New York’s water infrastructure, we’re getting the lead out,” Governor Hochul said. “We’re continuing to give municipalities the resources and support they need to replace lead water pipes and protect public drinking water.”

    “I thank Governor Hochul and Congressman Ryan for their tremendous efforts on this critically important public health issue,” said City of Poughkeepsie Mayor Yvonne Flowers. “The city recognizes it cannot complete this work without strong state and federal partners. We need their financial resources to address the significant costs it will take to replace thousands of lead pipes throughout our city to reduce our residents’ risk of lead poisoning. The city intends to methodically move forward with the allotted money and will continue to aggressively seek more funds.”

    There is no safe blood lead level for children. The corrosion of aging and outdated lead water pipes can cause toxic lead to leach into the drinking water supply, which is linked to significant adverse health effects including permanent neurological damage and impaired cognitive abilities, especially in children, as well as fertility and renal issues in adults.

    Today’s announcement comes only weeks after the Biden-Harris Administration announced that all lead pipes in drinking water systems across the country must be removed within the next ten years. Ryan applauded the announcement as a major step towards his goal of removing all lead pipes in Hudson Valley communities. The Biden Administration’s Bipartisan Infrastructure Law (BIL) will deliver $15 billion towards these efforts.

    The $11,869,472 announced today comes from state funding designated to help cover the costs of lead service line replacement projects that received financing through the federal BIL but whose costs were not fully covered by BIL grants. This funding comes in addition to the funding already allocated through the BIL and the State’s Water Infrastructure grant program. This unprecedented move takes the fiscal pressure off communities, allowing them to replace more lead service lines without incurring additional costs. The State’s comprehensive approach continues to provide communities with the resources they need to improve their water infrastructure. Last year, the City of Poughkeepsie was deemed eligible to receive $3.2 million in BIL funding to identify and inventory the locations of lead service lines and begin replacement projects. 

    Ryan has built a record of fighting for clean water for Hudson Valley families and has prioritized removing sources of toxic lead exposure from Hudson Valley communities. Ryan has especially targeted his efforts to addressing the City of Poughkeepsie’s lead pipe crisis and delivering the federal resources needed to eliminate all lead pipes from the city’s drinking water system. On August 1, 2023, Ryan brought EPA leadership to Poughkeepsie to assist the city in securing resources for lead pipe removal projects. Ryan had pressed the EPA to commit to visiting the city in a July 13, 2023 House Transportation and Infrastructure Committee hearing and for it to work closely with the city to usher in the federal resources needed to protect Poughkeepsie families from lead exposures. On July 14, 2023, Ryan also announced his plan to remove all lead pipes in Poughkeepsie. Ryan and his team have worked closely with the city and the EPA to provide technical guidance in helping the city apply for federal funds for lead service line replacements, resulting in the city announcing in April of 2024 that it was eligible for millions in federal funding and assistance for projects.

    Ryan has been at the forefront of combatting the lead contamination crisis in the Hudson Valley, immediately sounding the alarm when the Wall Street Journal reported that major telecommunications companies are allowing a network of decrepit, lead-sheathed aerial cables to shed the toxin into the environment, including at a playground in Wappingers Falls. He has repeatedly demanded that multi-billion dollar telecommunications companies Verizon and AT&T take responsibility and pay for the cleanup of their cables. Earlier this year, Ryan brought together local officials and community advocates to call on the corporations to publicly disclose the locations of the cables after Hudson Valley families reported finding them discarded across the region.

    Ryan has amassed a record of taking on big corporations that pollute Hudson Valley water, air, and soil. He spoke at the Save the River Rally, demanding that Holtec halt its plan to dump radioactive waste into the River and introduced legislation banning additional barges, carrying toxic materials like asphalt, from anchoring on the Hudson. Earlier this year, the bill was passed in the House of Representatives with overwhelming bipartisan support. Last fall, Ryan organized a coalition of local government officials, community leaders, and organizations to temporarily halt the Coast Guard’s plan to begin allowing barges to anchor on the Hudson River.

    Congressman Ryan has also spearheaded efforts to combat PFAS “forever chemical” pollution, including introducing the landmark PFAS Action Act and cosponsoring the Department of Defense PFAS Discharge Prevention Act.  The EPA has recently implemented many of the components of the PFAS Action Act, including issuing a national standard for PFAS in drinking water. Ryan has made repeated calls for the Department of Defense (DoD) to hasten its cleanup of PFAS pollution at Stewart Air National Guard Base in Newburgh.

    ###

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Three ways the Budget will put more money in working people’s pockets

    Source: United Kingdom – Executive Government & Departments

    We are raising the living wage, expanding the Help to Save scheme and limiting reductions to Universal Credit awards.

    Working people are the lifeblood of our economy. The government is not increasing the basic, higher or additional rates of Income Tax, National Insurance, or VAT.  

    Here are just some of the measures announced at the Autumn Budget 2024 that will help put more money into your pocket.  

    1. Savings boost from the government for low earners 

    The Help to Save scheme has been extended and widened. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4. This helps workers kickstart a lifelong savings habit and offers up to £1,200 over the 4 years.  

    The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025. It will be open to all working Universal Credit claimants earning at least £1 a month.   

    2. Increased National Living Wage  

    In her statement, the Chancellor announced that from 1 April 2025, the National Living Wage will increase from £11.44 to £12.21 an hour for employees aged 21 and over. That’s an increase of 6.7% from 2024.  

    For 18 to 20 year olds, it will increase by £1.40 an hour, to £10.00 an hour. This is the first step towards the government’s plan to remove discriminatory age bands and deliver a genuine living wage that all adults can benefit from. 

    3. Capping how much Universal Credit can be taken for debt repayment 

    The government is creating a new Fair Repayment Rate which caps deductions made through Universal Credit at 15% of the standard allowance. Before this Budget, it was 25%.

    This means approximately 1.2 million households will keep more of their Universal Credit payment each month, with households expected to be better off by an average of over £420 a year.   

    Other financial support available 

    These are just some of the ways the government is protecting working people. The Autumn Budget 2024 also includes further support for pensioners, those in crisis and those struggling most with the cost of essentials. Read the Budget in full to find out more.

    Answer a few questions to find out what support you might be able to get to help with living costs. Check benefits and financial support you can get.

    Updates to this page

    Published 30 October 2024

    MIL OSI United Kingdom –

  • 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:
    (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 –

  • MIL-OSI United Kingdom: Nine in a row for Aberdeen

    Source: Scotland – City of Aberdeen

    Aberdeen City Council’s catering team is celebrating after it was awarded its Food for Life Served Here Bronze certification for the ninth time by adding more local and climate-friendly peas to the school menu.

    The Council, which first received the award for its primary school meals in 2015, and for secondary schools in 2017, now serves more than 13,500 nutritious, sustainable and locally-sourced Food for Life meals across 61 sites every day.

    This achievement reflects the hard work and dedication of the council’s school catering team, as well as the commitment to scratch cooking and local sourcing. These values are on display through the Give Peas a Chance! pilot project, a collaboration between Soil Association Scotland and Aberdeen City Council to get locally-grown organic dried split peas into school meals.

    Councillor Martin Greig, the Convener of the Education and Children’s Services Committee, Aberdeen City Council, said: “Good quality food is an important way to nourish and support young people’s health and wellbeing. School meals should be nutritious and contain as much fresh, local and sustainable food as possible. It is testament to the ongoing commitment and hard work of our catering and procurement teams that the Council has received the Food for Life Served Here Bronze award for the ninth year. It is a great achievement and congratulations to everyone involved.

    “Being part of the Give Peas a Chance pilot programme has enabled us to bring more local, organic produce into the menu. This is great for our young people, the local economy and the environment. It has also given catering staff an opportunity to develop new recipes and menus.”

    The 12-month Give Peas a Chance pilot project is opening up a new route to market for this local, organic, nutritious and climate friendly plant protein, allowing pupils to access healthy and sustainable food. It is a partnership between Soil Association Scotland, Aberdeen City Council catering and procurement teams, pea producer Phil Swire of Balmakewan Farm, the Royal Highland Education Trust (RHET) and the Royal Northern Countryside Initiative (RNCI).

    Sarah Gowanlock, Partnerships Manager, Food for Life Scotland, said: “Aberdeen City Council’s ninth year of the Food for Life Served Here award is a huge achievement. It shows that staff are dedicated to providing pupils with a meal that’s healthy, freshly prepared and sustainably produced. We’re proud to be working in partnership with the council to deliver even more good food to Aberdeen City pupils through the Give Peas a Chance! pilot project, which is a fantastic example of how public procurement can have a positive impact on our food systems. Congratulations to all involved.”

    With an updated menu launched after the October break, pupils can now enjoy pea-based recipes that are part of the council’s new school meals menu, including lemon and pea risotto, sweet potato and pea curry, split pea meatballs with bolognaise sauce, and even a pea-based muffin and cookie.

    The council’s school meals service is certified by the widely respected and independently assessed scheme led by Soil Association Scotland and funded by Scottish Government. The Food for Life Scotland programme provides a framework through which local authorities can ensure they are serving food that’s good for health, the environment and the economy. This is done by following a set of standards to achieve the Food for Life Served Here award at Bronze, Silver or Gold level.

    The Bronze award recognises that a minimum of 75 percent of dishes are freshly prepared from unprocessed ingredients. Meals are also free from undesirable trans fats, sweeteners, additives and all genetically modified ingredients. Catering teams also use free range eggs, higher welfare meat and ingredients from sustainable and ethical sources.

    Photo caption: Councillor Martin Greig receives the Food for Life Served Here Bronze Award certificate from Food for Life Scotland’s Partnerships Manager Sarah Gowanlock, at a celebration with the Council’s schools catering team at Culter School. 

    MIL OSI United Kingdom –