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☆ UK military faces $22 billion equipment shortfall, watchdog says
▼ + stars: | 2023-12-04 | by ( ) www.reuters.com time to read: +2 min

LONDON, Dec 4 (Reuters) - Britain's armed forces face an equipment funding shortfall of 17 billion pounds ($21.6 billion) over the next 10 years, a public spending watchdog said on Monday, a concern for defence chiefs at a time of heightened geopolitical risks. The National Audit Office (NAO) put the estimate for the budget for new weapons and equipment at 305.5 billion pounds for 2023-2033, 16.9 billion pounds over budget, the largest deficit since its first report in 2012. Russia's war in Ukraine has highlighted the need for extra military spending across Europe, with Britain an important ally and provider of military equipment to Kyiv. The government raised spending on defence by an extra 5 billion pounds earlier this year, increasing it to about 2.25% of gross domestic product this year and next. "The Ministry of Defence acknowledges that its Equipment Plan for 2023–2033 is unaffordable," NAO head Gareth Davies said in a statement.

Persons: NAO, Grant Shapps, Shapps, Gareth Davies, Sarah Young, Bernadette Baum, Timothy Organizations: Audit, Soaring, Ministry of Defence's, Defence, Ministry, Timothy Heritage, Thomson Locations: Britain, Ukraine, Europe, Kyiv

☆ Exclusive: China orders local governments to cut exposure to public-private projects as debt risks rise, sources say
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +5 min

The guidelines were mentioned in a cabinet document that was circulated among local governments, policy banks and state lenders last month, said the two sources with knowledge of the matter. The move comes after numerous local governments' PPP expenditure hit the upper limit of the threshold in recent years. But the PPP boom has alarmed authorities who say some local governments have used public-private partnerships, government investment funds and government procurement services as "disguised channels" for raising debt. The State Council and the NAO did not immediately respond to Reuters requests for comments. A portion of the $12.6 trillion local government debt is linked to the PPP projects, as municipalities used these infrastructure-building initiatives as a conduit to raise capital.

Persons: Thomas Peter, NAO, Kevin Yao, Ziyi Tang, Sumeet Chatterjee Organizations: Central Business District, National People's Congress, REUTERS, Rights, International Monetary Fund, National Audit, State, State Council, Bank of, Reuters, National Development, Reform Commission, Thomson Locations: Beijing, China, Rights BEIJING, Bank of China

☆ Britain has a new big problem: crumbling concrete in schools, hospitals, airports, and theaters
▼ + stars: | 2023-09-09 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +8 min

The "crumbly concrete" was used in hundreds of schools and some have been shut over fears of collapses. The UK government said more than 100 schools faced closure because they contained reinforced autoclaved aerated concrete (RAAC), a material typically used in roof planks and wall panels. AdvertisementAdvertisementOther structures such as hospitals, theaters, universities and some apartment buildings are also being checked for the concrete. Why was the concrete used? According to the think-tank the Institute for Government, those cuts are linked with schools' RAAC closures.

Persons: Matthew Byatt, RAAC, –, Chris Goodier, What's, Keir Starmer, Rishi Sunak's, NAO, Gareth Davies, Rishi Sunak Organizations: Service, Health, Safety, National Audit Office, Guardian, Financial Times, of Structural Engineers, Labour, Loughborough University, Department for Education, Institute for Government, The Times, National Health Service, European Union Locations: Wall, Silicon, Heathrow, Gatwick, Kent, Sweden, London, he's, India

☆ Birmingham City Council: How an equal pay claim took down Britain's second-biggest city
▼ + stars: | 2023-09-06 | by ( Hanna Ziady | ) edition.cnn.com time to read: +5 min

London CNN —Birmingham — the biggest British city after London — is in dire financial straits. “Local government is facing a perfect storm,” Sharon Thompson, Birmingham City Council’s deputy leader, said in remarks broadcast Tuesday. How Birmingham went bustThompson blamed Birmingham’s financial troubles partly on an outstanding £760 million ($950 million) legal bill pertaining to the equal pay claims, which resulted from a Supreme Court ruling in 2012. The original case was brought by 174 former council employees, all except four of whom were women. They argued that this breached the equality clauses of their employment contracts under the Equal Pay Act of 1970 — and the court agreed.

Persons: London —, ” Sharon Thompson, Thompson, —, Shaun Davies, Rishi Sunak, England —, ” Organizations: London CNN — Birmingham, Birmingham City Council’s, Birmingham City, National Audit Office, Local Government Association, UK, Special, Municipal Authorities Locations: London, United Kingdom, “, Birmingham, England, —, West Midlands, Yorkshire, Croydon, Woking

☆ Britain lagging in delivery of new hospitals, watchdog says
▼ + stars: | 2023-07-16 | by ( ) www.reuters.com time to read: +2 min

The National Audit Office (NAO) said only 32 of 40 hospitals promised by former PM Boris Johnson were due to be completed on schedule by 2030. "Delivery so far has been slower than expected," said Gareth Davies, the head of the non-partisan NAO. The promise of 40 new hospitals in England by 2030 has been criticised as some of the proposals were for renovations of existing hospitals. Including those projects, there would be 40 new hospitals by the end of the decade, a health ministry spokesperson said. "Patients and clinicians are going to have to wait much longer than they expected before their new hospitals are completed."

Persons: Rishi Sunak, Dan Kitwood, Rishi, Boris Johnson, Gareth Davies, NAO, Sunak, Johnson, Meg Hillier, Alistair Smout, William Schomberg Organizations: British, Hospital, REUTERS LONDON, Audit, New, Labour Party, of Health, Social, Thomson Locations: Cambridge, United Kingdom, England

☆ Energy firms lose UK legal challenge over sale of collapsed rival Bulb
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

[1/2] A British Gas sign is seen outside its offices in Staines in southern England, July 31, 2014. REUTERS/Toby Melville/File PhotoLONDON, March 31 (Reuters) - Centrica's British Gas, Scottish Power and E.ON on Friday lost a court challenge over the British government’s handling of the sale of collapsed energy firm Bulb. The three other energy suppliers had argued the government had unlawfully committed billions of pounds of taxpayers' money to prop up Bulb, without considering the potential impact on the wider energy market. "It's clear that the case was a desperate attempt by those organisations to defend their waning market positions against a more efficient and customer-focused rival," Octopus Energy said in a statement. The addition of Bulb's customers catapulted Octopus to become the country's third largest domestic energy supplier behind British Gas and E.ON.

China's four new vice premiers:Ding Xuexiang, 60, is the first-ranked vice premier who also sits in the ruling Communist Party's Politburo Standing Committee, China's top echelon of power. Wang Zhigang, 65, remains minister of science and technology. Huai Jinpeng, 60, remains minister of educationPan Yue, 62, remains head of the National Ethnic Affairs CommissionWang Xiaohong, 65, remains minister of public securityChen Yixin, 63, remains minister of state security. Considered a Xi ally, he had worked with Xi when the latter was party chief of Zhejiang province from 2002-2007. Tang Dengjie, 63, remains minister of civil affairsHe Rong, 60, remains minister of justiceWang Xiaoping, 59, remains minister of human resources and social securityWang Guanghua, 59, remains minister of natural resourcesHuang Runqiu, 59, remains minister of ecology and environmentNi Hong, 60, remains minister of housing and urban-rural developmentLi Xiaopeng, 63, remains minister of transportLi Guoying, 63, remains minister of water resourcesTang Renjian, 60, remains minister of agriculture and rural affairsHu Heping, 60, remains minister of culture and tourismMa Xiaowei, 63, remains head of the National Health CommissionPei Jinjia, 59, remains minister of veterans affairsWang Xiangxi, 60, remains minister of emergency managementHou Kai, 60, remains auditor-general of the National Audit OfficeReporting by Yew Lun Tian, Ziyi Tang, additional reporting by Albee Zhang; Editing by Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.

☆ French audit office sees interest rates adding pressure to finances
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

PARIS, March 9 (Reuters) - France's long-term budget planning is once again at risk of getting blown off course by overly optimistic forecasts, with high interest rates adding new pressure, the national audit office said on Friday. The independent public audit body has made similar criticisms before, but it said this time public finances would come under additional pressure if the government's borrowing costs remained above currently planned levels. The government's long-term budget planning does not foresee France's 10-year benchmark bond yield above 3% before 2027, when its current long-term budget planning ends. The audit office said if the borrowing rate remained one percentage point above the government's expectations between now and 2027 that would add 17 billion euros ($18 billion) to debt servicing costs by then. In turn, that would push the public debt burden from an expected 111.2% of economic output this year to 113% by 2027, the audit office calculated.

☆ UK energy support schemes' cost halved as mild winter tames prices - NAO
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

In the interest of speed, it chose to role out universal support, granting 400 pounds this winter to each household regardless of need. It also capped average domestic energy bills at 2,500 pounds a year until March 31 and at 3,000 pounds until April 2024. When the scheme was first launched the government had said average bills would be capped at 2,500 pounds a year until April 2024. Last month, Britain announced plans to scale back energy subsidies for businesses for the next financial year by about 85% to 5.5 billion pounds. Without the government measures average household energy bills were set to rise more than 170% to over 3,500 pound this winter from a year earlier.

CONTAGION RISKTrust firms were dubbed "shadow banks" because of how they operated outside many of the rules that govern commercial banks. Zhongrong International Trust has been working with local governments, including Qingdao provincial authorities, to source early stage deals in intelligent manufacturing, an executive there said. CCB Trust, Zhongrong International Trust and Avic Trust did not respond to requests for comment. Ping An Trust, Zhongrong International Trust, Everbright Xinglong Trust and Minmetals International Trust have all bought project companies from struggling developers in the last few months, corporate records and company announcements showed. Ping An Trust, Zhongrong International Trust, Everbright Xinglong Trust and Minmetals International Trust did not respond to requests for comment.

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