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Daily Mail
26-05-2025
- Politics
- Daily Mail
GRAHAM GRANT: Welcome to Scotland's biggest growth industry... the inquiries that cost taxpayers millions of pounds
The inquiry has long been a favoured standby of blundering politicians with their backs to the wall - ordering one can buy you valuable time. It means they can refuse to comment because a probe is under way - and naturally it would be wrong to pre-judge its outcome. But in Scotland there has been an explosion in statutory inquiries, to the extent that they have become the country's only growth industry. They have been good news for lawyers - their pockets lined at taxpayers' expense - but it has been clear for years that the costs have been allowed to run out of control. Belatedly, MSPs on the finance committee have got round to looking into the issue, after the total bill soared to £230million – and there's every sign it will continue to rise. That's enough to hire nearly 9,000 nurses or 7,300 police officers, or possibly build a ferry – so the stakes are high, particularly at a time of lean public finances when we're told that every penny is a prisoner. So, we now have an inquiry into inquiries - and if it's deemed not to have been robust enough then there might well be calls for yet another inquiry to look into it. A steady stream of inquiries has come to define devolution, spawning a permanently backward-looking political culture, trapped in endless introspection – though it's rare for heads to roll. The worth of some of these fact-finding exercises isn't in doubt, including the valuable work of the £95.3million Scottish Child Abuse Inquiry (SCAI), launched a decade ago. It has uncovered scandal after scandal, after putting religious orders, charities and private schools under the microscope. True, it took many years for survivors to win their fight for the probe, but it has triggered multiple police investigations and created a comprehensive record of abuse and neglect, helping current and future generations to protect children in care. No one knows when it will wrap up, or if they do they won't say, and in the meantime the costs keep ratcheting up. It is now at the centre of a separate probe by Jason Beer KC, instigated by the SCAI, after abuse survivor Kevin Sutherland was believed to have taken his own life. Last week, Professor Sandy Cameron, who chaired the Independent Jersey Care Inquiry, told MSPs that the country 'can't keep going like this', adding: 'We need to think about other ways of achieving justice.' The case for doing so becomes all the more pressing when you consider that long-running public inquiries have cost Scotland's beleaguered NHS more than £12million in the past four years alone. National Services Scotland (NSS), the administrative arm of NHS Scotland, admitted that it has had to fork out £9million in legal fees and £3.1million in staff costs since 2021 to respond to probes that include the Scottish Hospitals Inquiry and the Covid-19 probe. Meanwhile, the probe into disgraced NHS Tayside surgeon Sam Eljamel has cost £1 million before the inquiry has even begun. Inquiries are a recurring feature of political life, so that at any given point one is either going on, being demanded, urged, threatened or occasionally refused (if a call for one is rejected, there must be something really bad lurking in the closet). Between 1990 and 2024, the UK and devolved governments spent at least £1.5billion on completed public inquiries, according to the Institute for Government. The inquiry chaired by Lord Hardie into the disastrous £1billion Edinburgh trams project uncovered evidence of myriad failings and ineptitude, laying bare a catalogue of delays and organisational chaos that formed a damning indictment of local government incompetence. Yet the inquiry itself cost more than £13million and took nine years to publish its findings, despite Alex Salmond saying it would be 'swift and thorough'. Lord Hardie has now told Holyrood's finance committee that there is a perception that public money is being wasted because the findings of public inquiries 'sit on ministers' shelves gathering dust'. He spoke out as the cost of the troubled Sheku Bayoh Inquiry rose to £24.8million – up by £1million since the end of last year - though that figure does not include the cost of the inquiry to the public bodies involved, such as Police Scotland and the Crown Office. The true cost to the taxpayer - so far - is around £50million, and yet the inquiry, which began back in 2020, is under serious threat after the Scottish Police Federation (SPF) called for chairman Lord Bracadale to be ousted on the grounds of perceived bias. Mr Bayoh died in police custody in 2015 amid allegations of racism and the use of excessive force by the officers restraining him. Lord Bracadale, a retired High Court judge, has had five meetings with Mr Bayoh's grieving relatives 'to address issues relating to the welfare of the family members'. He will chair hearings next month into his own suitability to continue leading the probe – so we now have another situation where an inquiry is holding a mini-inquiry into itself. A decade on, it seems that any chance of finding out exactly what happened is slipping away, with the SPF, representing rank-and-file officers, threatening a judicial review to remove Lord Bracadale as chairman. This toxic mess shows the gap between political rhetoric when inquiries are launched - focusing on the need for rapid answers - and the bleak reality, as they become bogged down in bureaucracy and bitter battles. The inquiry which set the tone for the ongoing obsession with official probes was the one that examined the fiasco surrounding the building of the Scottish parliament, which cost more than £400million (the original price-tag was around £10million). Its chairman, the late Lord Fraser, who reported back only three weeks before the building opened in 2004, memorably concluded that 'the ancient walls of the Canongate have echoed only to the cry of 'it wisnae me'.' More than 20 years on, that remains a familiar refrain among bungling bureaucrats and their political masters. It's probably only a matter of time before some hapless Minster announces an inquiry into the ferries fiasco (750million and counting) Let us hope the bill for that is less than the boats cost to build. But there is a radical solution – if they didn't make so many mistakes, we wouldn't need so many inquiries, conducted at our expense. In the meantime, we're paying a steep price for their incompetence - and the bill keeps rising.
Malay Mail
26-05-2025
- Business
- Malay Mail
‘Public funds not enough', Malaysia urges Asean to reform finance policies for US$3t energy shift
KUALA LUMPUR, May 26 — Malaysia has urged Asean member states to embrace a fundamental shift in financing strategies to achieve the region's ambitious energy transition goals, with cumulative investments estimated at over US$3 trillion by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia alone requires more than US$143 billion to meet its renewable energy (RE) targets under the National Energy Transition Roadmap. 'These figures underscore a simple but profound truth: public finance alone is insufficient. 'Therefore, it is imperative for governments across the region to create a robust enabling environment that catalyses private investment, both domestic and international, through coordinated policy reform and innovative financial instruments,' he said. In his keynote address at the 'Energy Transition Meeting in Asean: Fostering Regional Cooperation' conference here today, Fadillah, who is also the Energy Transition and Water Transformation Minister, said these instruments include blended finance mechanisms and public guarantees to de-risk early-stage RE projects. He added that Asean must also strengthen its capital markets through the issuance of green bonds, Islamic finance instruments such as sukuk, and sustainability-linked loans to channel capital into clean energy projects. 'Carbon pricing frameworks that reflect the real cost of emissions are essential to incentivise the shift toward low-carbon technologies. 'Digitalisation of the energy ecosystem, including smart grids, artificial intelligence-based forecasting tools, and demand-side management systems, will play a crucial role in enhancing system flexibility and efficiency across the region,' he said. At the national level, Fadillah said Malaysia has already begun aligning its policies and financing landscape to support this transformation. 'As a trading nation, we (Malaysia) recognise that competitiveness and climate ambition must go hand in hand. The Corporate Renewable Energy Supply Scheme enables large electricity consumers to directly source RE from private developers, offering a market-driven route to decarbonisation. 'The Low Carbon Energy Generation Programme introduces a Contract-for-Difference mechanism to improve the bankability of renewable projects and offer price certainty for investors, while Bank Negara Malaysia's Low Carbon Transition Facility provides concessional financing to small and medium-sized enterprises investing in clean technologies,' he said. Fadillah emphasised that efforts to enable a region-wide energy transition must be matched by regional alignment. 'A well-integrated Asean energy market, supported by common investment frameworks, harmonised technical standards, and coordinated green finance mechanisms, will unlock economies of scale and reduce capital costs,' he said. — Bernama
Bloomberg
22-05-2025
- Business
- Bloomberg
FTSE 100 Live: UK Stocks Sink After US Selloff and Oil Price Slide
It's not been a good day for UK markets. The big story globally has been a loss of confidence in government debt after a Treasury selloff in the US, due to a rising deficit, spread across to Europe. That wasn't helped by UK public finance data which showed its own deficit having grown more than expected last month. Gilt yields climbed at the longer end of the curve, with the yield on the 30-year security at one point looking set to close at its highest since 1998. That was even as PMI data showed an improvement in the UK's private sector output -- with the rate of contraction slowing -- largely down to a pickup in services. Manufacturing activity shrank more than expected, with the sector shedding jobs at the fastest pace for five years. consumer confidence report and everything else you need to know for UK markets.
Yahoo
22-05-2025
- Business
- Yahoo
UK government borrows almost £15bn more than expected
The government borrowed more than expected in the year to March by nearly £15bn, according to official figures. Borrowing, the difference between spending and income from taxes, came in at £151.9bn, up £20.7bn from the previous financial year, according to the Office for National Statistics (ONS). The amount borrowed was much higher than the £137.3bn predicted by the UK's official forecaster, the Office for Budget Responsibility. The ONS said borrowing rose to £16.4bn last month, the third-highest amount for March since monthly records began. Grant Fitzner, the ONS's chief economist, said: 'Our initial estimates suggest public sector borrowing rose almost £21bn in the financial year just ended as, despite a substantial boost in income, expenditure rose by more, largely due to inflation-related costs, including higher pay and benefit increases. Read more: Bank of England poised to cut interest rates in May 'At the end of the financial year, debt remained close to the annual value of the output of the economy, at levels last seen in the early 1960s.' The OBR warned last month that, despite recent welfare cuts, the government's fiscal headroom remains historically small at £9.9bn. Chief secretary to the Treasury, Darren Jones, said: 'Economic stability is crucial within a changing world. We will never play fast and loose with the public finances, that's why our fiscal rules are non-negotiable and why we are going through every penny of taxpayer money spent, line by line, for the first time in 17 years to tear out waste. "We are laser-focused on making sure taxpayer money is delivering our Plan for Change missions to put more money in people's pockets, rebuild the NHS and strengthen our borders." On Tuesday, the IMF cut its 2025 growth forecast for the UK to 1.1%, down from its previous estimate of 1.6%, warning of widespread economic disruption from trade tensions. Chancellor Rachel Reeves is in Washington DC this week where she has vowed to 'defend British interests' in meetings. However, economists are warning she might be forced to increase taxes amid the borrowing overshoot. Read more: Mortgage rates rising despite Bank of England interest rate cuts Ruth Gregory, deputy chief UK economist at Capital Economics, said the figures showed Britain's fiscal position 'was overshooting the OBR's forecast even before the influence from the tariff chaos is felt'. She explained: 'This raises the chances that if the chancellor wishes to stick to her fiscal rules, more tax hikes in the autumn budget will be required.' She added: 'Further bad news for the chancellor is on the way. The rise in borrowing costs since March has already whittled down the headroom against the fiscal mandate from £9.9bn to £7.7bn. 'And the OBR has yet to incorporate the likely upward impact on borrowing from the tariff shock. 'All of this means that Reeves may not be too far away from having to raise money again in the autumn budget, by cutting spending and/or raising taxes, to meet her fiscal rules.' Nabil Taleb, an economist at PwC UK, said: "Rachel Reeves continues to hold the fiscal line, but the next six months will be critical – and she needs some clear wins. While her spring statement restored the £9.9bn headroom, that cushion remains precarious. "In the worst-case scenario outlined by the government's independent forecaster, Trump's new tariffs could alone shave 1% off UK GDP – enough to wipe out the headroom entirely. "The rising cost of government borrowing and growing global uncertainty are compounding the pressure for Reeves to put tax rises on the table during the autumn budget." Public expenditure was £6.2bn higher in March than the same month last year at £88.9bn, outweighing an increase in tax receipts to £93.5bn, which were £2.5bn higher than the same month in 2024. Alison Ring, ICAEW director of Public Sector and Taxation, said: 'After another year with little growth, public sector net debt now stands at £2,814bn – equivalent to approximately £95,300 per household in the UK. "This is £3,500 per household more than a year ago, and well on its way to reaching £100,000 per household within the next couple of years. 'Today's numbers show that the reality is much worse than the £22bn 'black hole' in the 2024/25 budget identified by the incoming government last summer, with higher debt interest and weaker tax receipts adding to the chancellor's financial headaches."Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
22-05-2025
- Business
- Reuters
UK public finances show bigger-than-expected deficit in April
MANCHESTER, England, May 22 (Reuters) - Britain's government kicked off the 2025/26 financial year in April by again borrowing more than expected, suggesting no let-up in the pressure on the public finances and finance minister Rachel Reeves ahead of a major review of spending. Public sector net borrowing was 20.155 billion pounds ($27 billion) in April, the Office for National Statistics said on Thursday. A Reuters poll of economists showed a median forecast of 17.9 billion pounds for public sector net borrowing. Economists have routinely under-estimated the extent of Britain's budget deficit each month over the past year. Reeves is due to deliver her first multi-year spending review on June 11 which will set the budgets for public services. The ONS revised down its estimate of borrowing for the last financial year that ended in March to 148.3 billion pounds from 151.9 billion pounds previously, or 5.1% of economist output compared to 5.3%. In 2023/24, the deficit was 4.8% of GDP. In its forecasts published in March, the Office for Budget Responsibility - which provides the fiscal and economic outlooks used by the government - projected a budget deficit for the financial year ending in March of 137.3 billion pounds. ($1 = 0.7447 pounds)
