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Labour accuses Sunak of ‘smoke and mirrors’ budget due to lack of new money

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Labour accuses Sunak of ‘smoke and mirrors’ budget due to lack of new money

Labour has accused Rishi Sunak of presiding over a “smoke and mirrors” budget after he conceded that just 20% of his biggest single spending commitment unveiled before the speech is made up of new money.

The Treasury has committed to almost £26bn of spending in a rush of announcements before Wednesday’s budget and spending review. It is expected to contain no tax cuts and the chancellor has sought to reassure anxious Tory MPs that he is a fiscal Thatcherite at heart.

Following months of general equanimity among parliamentary colleagues and the public as Sunak spent billions on Covid relief, he faces a hugely tricky budget, trying to balance the worries of Tory MPs about what they see as an increasingly high-tax, high-spend government, and demands for new infrastructure.

On Sunday, Sunak conceded that of £7bn to be pledged in the budget for what could be the flagship announcement, part of the so-called levelling up agenda, just £1.5bn is actually new money.

Challenged on Sky News about the makeup of the money committed for rail, tram and bus projects outside London, Sunak accepted that most of it had already been announced, with the main news on Wednesday being where it will be spent.

Sunak said he had already announced £4.2bn for the “overall envelope for improving how people get around our big cities”, adding: “What we’ve actually done is top that up, as you said, by £1.5bn, but then crucially give out the allocations in that envelope – where all the bits are going to go.”

Of a dozen Treasury trails for budget commitments, several others are not fully new spending, or involve money used to replace earlier commitments. For example, of money announced to assist crime victims, including victims of domestic and sexual assault, just 40% is new. For a new safer streets fund, two-thirds is new. Other announcements cover the UK Shared Prosperity Fund, which replaces funding from the EU.

Rachel Reeves, Labour’s shadow chancellor, said: “We’ve seen a weekend full of Treasury smoke and mirrors ahead of the budget – with a government that would rather re-announce plans than get the work done.”

The commitments already made by Sunak even before Wednesday are nonetheless extensive, including an extra near-£6bn for NHS catch-up and diagnostics, and £5bn for genomic health research, £3bn on skills, and £850m for museums and galleries.

Another £500m will be spent on families an early years programmes, including for family support programmes, and on so-called family hubs, a scheme reminiscent of Labour’s sure start centres, a programme decimated by austerity since 2010.

Sunak argued that in spending on families and early intervention he was not accepting that cutting Sure Start had been a mistake, arguing that work done more recently by Tory colleagues such as former business secretary Andrea Leadsom had only now demonstrated the need for such policies.

“What they show very clearly, as the evidence does, is the very early years in young families’ lives are critical and that’s where parents often struggle and that’s where actually we need to provide a little bit more attention,” Sunak told Sky.

In response, Reeves said Sunak was proposing a “pale imitation that doesn’t even take us back to where we were in 2010”.

She said: “It’s all well and good saying we’re going to invest in these family parks, but thousands of children’s centres and Sure Start centres that were proud features of our communities, particularly of our poorer communities, have long gone.”

In another interview, with the BBC, Sunak rejected a call from Marcus Rashford, the Manchester United striker and anti-poverty campaigner, to extend free school meal programmes into the school holidays for the next three years.

Sunak said that as with the furlough scheme, while such programmes were necessary during lockdown, “it’s right that we’ve transitioned to a more normal way of doing things”.

Sunak also confirmed that on Wednesday he will unveil the results of a review into business rates – but gave no sign that this could lead to a reduction in the levy. Business groups and many Tory MPs have called for a cut to boost high streets, but the Treasury appears resistant.

Writing in the Mail on Sunday, former minister David Davis castigated Sunak for his approach to taxation, and called into doubt the chancellor’s allegiance to the fiscal ideas of Margaret Thatcher.

“I knew Margaret Thatcher, so I will watch with interest whether he can match the brilliance that Thatcher, and her great Chancellor Nigel Lawson brought to government,” Davis wrote.

“Sadly, every indication so far is that his current course will take us on to the rocks – not away from them.”

Challenged about his policies on Sky, Sunak insisted he still stood for low-tax Conservatism: “Of course I do stand for that, and that’s what I would want to deliver, and that’s what my instincts are. But you also have to take a step back and think, what have I and the government had to grapple with over the past year and a half? We’ve had the biggest economic shock that we’ve experienced in 300 years.”

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Development

Abiodun Promises More Infrastructural Development, Commissions Siun-Owode Road

L-R: Ogun State Commissioner for Works and Infrastructure, Engr. Ade Akinsanya; Chairman of the All Progressives Congress (APC), Chief Yemi Sanusi; a member of the House of Representatives, Olumide Osoba; Kwara State Governor, Mallam Abdul-Rahman Abdul-Razaq; Ogun State Governor, Prince Dapo Abiodun; his Deputy, Engr. (Mrs.) Noimot Salako-Oyedele and the Speaker, Ogun State House of Assembly, Rt.Hon Oludaisi Elemide, during the commissioning of the 6km Siun-Owode Road in Obafemi Owode Local Government area of Ogun State on Thursday.

Ogun State Governor Prince Dapo Abiodun on Thursday said his government will continue with its infrastructural drive, especially in the area of road construction as a catalyst for economic growth and development.

Abiodun spoke at the commissioning of the six kilometres (first phase) of the Siun-Owode-Ofada road in the Obafemi Owode Local Government of the state.

Speaking at the event, which was attended by the Kwara State Governor, Alhaji AbdulRahaman AbdulRasak, Governor Abiodun emphasized the importance of road construction in the overall development of the state.

The governor described the newly rehabilitated road as an alternative to the ever busy Lagos-Ibadan Expressway, adding that it would also impact positively on the socio-economic development of communities along the road.

He said the construction of the road was a testimony to the dedication to strategic and methodical development of infrastructure across the state to enhance the socio-economic landscape as enshrined in the “Building our Future Together” agenda of his administration.

“The road represents a vital link between communities to boost local economies and connect all those coming from Abeokuta to Siun, Owode up to Mowe. This local government is where people work in Lagos but reside and commune daily.

“The road is an alternative for people from Abeokuta to Lagos. It will significantly impact the socio-economy development of the state,” the governor noted.

He added that the road is the first to be commissioned this year, just as the Mowe-Ofada road has been completed, adding that his administration would soon commissioned more roads including the Ilaro -Owode road and the Gateway International Cargo Airport at Ilisan.

Governor Abiodun listed Obantoko, Gbonogun, Ikorita Meje-Aderinde-Olokotutu, Olomore-Sanni, Somorin- Kemta-Idi-Aba, Panseke-Adigbe as well as the Olusegun Osoba-Toyin- Agbado as some of the roads that have been attended to in Ogun Central Senatorial District, even as he pledged that more roads would be put in good shape soon.

Abiodun who spoke on why some road projects were delayed, blaming the development on the high price of construction materials.

He said: “We have had a slow down on construction due to the situation of things in the country in the last few months which has not allowed for objective pricing of construction materials.

“But for us, construction represents a lot. Besides the fact that road construction allows for movement of goods, services, and people, the construction industry is the largest employer of labour. So, we will continue to prioritize construction.

“We have harvested priority roads in each local government area. We will begin our reconstruction all over again as a result of the price stability. Our contractors will go back to sites. All the roads harvested during our last town hall meetings, you will begin to see construction on the roads.”

He called on the people to take ownership of the road and other infrastructure provided by the government by protecting them as they were commonwealth and taxes were used in providing them.

The Kwara State Governor, who is also the Chairman, Nigerian Governors’ Forum (NGF), Alhaji Abdulrahaman Abdulrasak, praised Governor Abiodun for the infrastructural revolution going on in the state.

According to him, the Abiodun-led administration has judiciously invested the commonwealth of the people.

He said he has visited other states in the country but was impressed with the level of development in Ogun State.

He called on his colleagues from other parts of the country to take a cue from Ogun State by providing their people with the needed infrastructure to enjoy the dividends of democracy.

The Senator representing Ogun Central Senatorial District, Shuaib Afolabi Salis, recalled that the road was pencilled down for reconstruction in 2022 and expressed appreciation to the governor, for not abandoning the road like his predecessors.

He called on the people to make good use of the road as it belongs to them.

The state Chairman of the All Progressives Congress (APC), Chief Yemi Sanusi, described the road as historic to the Egba people because of its interconnectivity to various communities and its importance to the commercial activities in the communities along the road.

The Chairman, Obafemi Owode Local Government Area, Hon. Adesina Ogunsola appreciated the state government for reconstructing the road and for providing a 7.5 KVA transformer to Owode to restore power to the town.

In his welcome address, Commissioner for Works and Infrastructure, Engr. Ade Akinsanya said the road, which was in bad shape for many years, was reconstructed with a standard drainage system to conform with the federal government’s specification for highways.

The event was attended by prominent dignitaries, including the Deputy Dovernor, Engr. Noimot Salako-Oyedele, former deputy governors, members of the National and State Assemblies, traditional rulers, party stalwarts, among others.

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GOVERNOR AIYEDATIWA NOMINATES 12 NEW COMMISSIONERS

Governor Lucky Orimisan Aiyedatiwa

The Governor of Ondo State, Honourable Lucky Orimisan Aiyedatiwa, has nominated twelve individuals for the position of Commissioner with the aim of enhancing the efficiency of governance and fostering continued progress across various sectors

According to a press statement issued by the Chief Press Secretary to the Governor of Ondo State, Prince Ebenezer Adeniyan, the announcement underscores Governor Aiyedatiwa’s unwavering commitment to fortifying the state’s leadership framework. The nominees, representing a diverse range of talents and expertise, have been selected based on their demonstrated dedication to the advancement of Ondo State.

The list of nominees, forwarded by Governor Aiyedatiwa to the Speaker of the House of Assembly, Rt. Honorable Olamide Oladiji, includes: Pastor Segun Ayerin, Mr. Olaolu Akindolire, Alhaji Hamidu Takuro, Dr. Banji Ajaka,
Mr. Boye Ologbese, Mr. Sunday Akinwalere, Deaconess Lola Fagbemi, Mr. Saka Yusuf Ogunleye, Mr. Rasheed Badmus, Mr. Olayato Aribo, Mr. Adewale Akinlosotu and Barrister Gbenga Olaniyi

Each nominee brings a wealth of knowledge, experience, and dedication to public service, underscoring Governor Aiyedatiwa’s commitment to assembling a proficient and capable team.

Governor Aiyedatiwa emphasized his confidence in the nominees’ capabilities to serve the state diligently. He urged the House of Assembly to expedite the confirmation process, recognizing the significance of having a fully constituted executive team to address the needs and aspirations of the people of Ondo State effectively.

As the state embarks on this pivotal phase of governance, Governor Aiyedatiwa reaffirmed his administration’s dedication to transparency, accountability, and inclusive decision-making processes that prioritize the welfare and progress of all citizens.

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Kano State Government subsidises Hajj fares

Governor Abba Yusuf of Kano State has extended a helping hand to intending pilgrims by subsidising their Hajj fares.

Under the auspices of the Kano State Pilgrims Welfare Board, each Kano intending pilgrim is set to receive N500,000 to facilitate their journey for this year’s Hajj pilgrimage.

The Director General of the Board, Alhaji Lamin Rabiu Dan Baffa, announced this while addressing journalists on Wednesday.

Dan Baffa emphasised that the decision was prompted by the recent hike in Hajj fares by the National Hajj Commission of Nigeria, NAHCON, attributed to the volatility of the forex exchange rate.

Acknowledging the prevailing economic hardships, Dan Baffa underscored the significance of easing the financial burden on intending pilgrims.

He urged all beneficiaries to settle the balance before March 28, 2024, in compliance with NAHCON’s directives.

He said the subsidy initiative targets those who have already initiated part-payments with the board, benefiting over 2,900 intending pilgrims thus far.

NAHCON’s recent announcement of a N1,918,032.91 increase in Hajj fares brings the total to N6,617,032.91. Fresh intending pilgrims are required to pay N8,254,464.74 for the full Hajj fare this year.

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