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Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case None - A court in Bangladesh has granted bail to Nobel laureate Muhammad Yunus in a $2.3 million embezzlement case DHAKA, Bangladesh -- A court in Bangladesh on Sunday granted bail to Nobel laureate Muhammad Yunus in a $2.3 million embezzlement case. Yunus, who was awarded the Nobel Peace Prize in 2006 for pioneering the use of microcredit to help impoverished people, was sentenced to six months in prison in January on a separate charge of violating labor laws. He was granted bail in that case too and has appealed. Prosecutor Mir Ahmmad Ali Salam said the embezzlement case involves a workers welfare fund of Grameen Telecom, which owns 34.2% of the country’s largest mobile phone company, Grameenphone, a subsidiary of Norway’s telecom giant Telenor. “The charges involve the embezzlement of over 250 million takas and money laundering. The accused gave the money to trade union leaders instead of the workers. This way they deprived the ordinary workers of their rightful earnings,” Salam said. Yunus and seven other defendants appeared in court Sunday and six others were absent. Defense counsel Abdullah Al Mamun told the court that Yunus, 83, and the others were innocent. Last year, more than 170 global leaders and Nobel laureates urged Bangladesh’s Prime Minister Sheikh Hasina to suspend legal proceedings against Yunus. His supporters say he has been targeted because of his frosty relations with Hasina. The government has denied the allegations.
Will Nikki Haley consider not endorsing Trump if he wins the nomination? None - Will Nikki Haley consider not endorsing Trump if he wins the nomination? Republican presidential candidate Nikki Haley is set to hold her final presidential rally before Super Tuesday in Fort Worth, Texas and Ali Vitali join Morning Joe to discuss Haley's bid and if she will endorse Trump if he receives the nomination.March 4, 2024
Co. Sec. of State Jena Griswold: 'My larger reaction is disappointment' to SCOTUS ballot ruling None - The Supreme Court has ruled that the state of Colorado cannot bar former President Donald Trump from appearing on the ballot. Colorado Secretary of State Jena Griswold joins Katy Tur to react to the decision. “My larger reaction is disappointment. I do believe that states should be able under our constitution to bar oath breaking insurrectionists," Griswold told Katy. “Ultimately, this decision leaves open or leaves open the door for Congress to act to pass authorizing legislation, but we know that Congress is a nearly non functioning body. So ultimately, it will be up to the American voters to save our democracy in November."March 4, 2024
Rep. Katie Porter: California Senate primary is 'a race about the future' None - In an exclusive interview with NBC News' Jacob Soboroff, California Senate candidate Rep. Katie Porter talks about how she hopes to "change how Washington works" ahead of the state's Super Tuesday primary.March 4, 2024
Ex-Trump CFO Allen Weisselberg pleads guilty to two counts of perjury None - Former Trump Organization CFO Allen Weisselberg pleaded guilty to two counts of perjury in the connection with testimony he gave during former President Trump's New York civil fraud trial.March 4, 2024
Why Biden is still the Democrats' best bet in November None - Why Biden is still the Democrats' best bet in November The Atlantic's Jonathan V. Last discusses why he says President Biden is still the Democrats' best bet for November against Trump.March 4, 2024
Emotional Jason Kelce announces retirement from NFL None - Rep. Barbara Lee on what sets her apart from others in the California Senate primary
Eurozone inflation eases to 2.6% in February as energy prices fall and food inflation moderates None - Eurozone inflation eases to 2.6% in February as energy prices fall and food inflation moderates Eurozone inflation eases to 2.6% in February as energy prices fall and food inflation moderates
AI chatbot rivalry accelerates again with new Claude chatbots from Anthropic, an OpenAI rival None - The race to build the smartest artificial intelligence chatbot completed another lap Monday when startup Anthropic unveiled a new AI model it says is more than advanced than those before it SAN FRANCISCO -- The race to build the smartest artificial intelligence chatbot completed another lap on Monday when startup Anthropic unveiled a new AI model it says is more advanced than those before it. San Francisco-based Anthropic, an OpenAI rival started by former leaders at the ChatGPT maker, announced Claude 3 — the third generation of its large language model. While OpenAI has closely tied itself to its business partner Microsoft, Anthropic's primary cloud computing partner is Amazon, which has said it would invest up to $4 billion in the company. Another cloud provider, Google, has also invested in Anthropic. All of the partnerships have attracted scrutiny from U.S. antitrust enforcers at the Federal Trade Commission, which is expecting more information later this month in response to compulsory orders it sent the companies. The new Claude 3 models come in three versions, all of which have computer vision capabilities that enable them to analyze what's in a photo, chart or graph. But they won't generate new images, avoiding the troubles that forced Google to recently shut down a feature of its Gemini chatbot over how it was depicting race and ethnicity. The most advanced and priciest, called Claude 3 Opus, beats OpenAI's ChatGPT-4 and Google's Gemini Ultra in certain multiple-choice tests that are used to measure a chatbot's capabilities, according to Anthropic.
Puerto Rico's power company holds a massive debt. A key hearing to restructure it has started None - A key hearing over the future of Puerto Rico’s crumbling power company and its staggering $9 billion debt has begun following years of acrimonious talks between the U.S. territory’s government and creditors seeking to recover their investments SAN JUAN, Puerto Rico -- A key hearing over the future of Puerto Rico’s crumbling power company and its staggering $9 billion debt began Monday in federal court following years of acrimonious talks between the U.S. territory's government and creditors seeking to recover their investments. The hearing, which is expected to last up to two weeks, will focus on a proposed debt-restructuring plan. It comes nearly seven years after Puerto Rico’s government filed for the biggest bankruptcy in U.S. municipal history after announcing it was unable to pay its more than $73 billion debt following decades of corruption, mismanagement and excessive borrowing. Scores of protesters gathered outside the courthouse before the hearing, decrying that power bills, already among the highest in a U.S. jurisdiction, would increase again if the plan is approved, leading to an even higher cost of living in the U.S. Carribean territory. “Every dollar we pay bondholders is a dollar that is not available for the energetic transformation that Puerto Rico urgently needs,” Juan Rosario, who previously represented consumers on the power company’s board, said before the hearing. The island of 3.2 million people is still struggling through chronic power outages more than six years after Hurricane Maria pummeled Puerto Rico as a powerful Category 4 storm, razing its electric grid. Officials have noted that aging infrastructure and lack of maintenance also is to blame, with Puerto Rico currently relying on generators from the federal government to help meet its energy needs. More than 800 people have objected to the debt-restructuring plan in a document that lawyers filed in court, and more protests are expected. The plan was crafted by a federal control board appointed by U.S. Congress to oversee Puerto Rico’s finances. In a meeting held days before the hearing, Robert Mujica, the board’s executive director, called the plan “fair and equitable.” “We believe it’s confirmable,” he said. That remains to be seen, with Judge Laura Taylor Swain on Monday hearing from an array of attorneys who have noted that the majority of creditors don't approve of the plan. Swain also is scheduled to hear from Puerto Rican retirees, business owners and others on Tuesday. Previous debt-restructuring plans have been scrapped in recent years, further enflaming already bitter discussions between creditors and the government. The debt held by Puerto Rico’s Electric Power Authority is the largest of any of the island’s government agencies and the only one that hasn’t been restructured. Government officials have said that restructuring the debt is key to boosting Puerto Rico’s economy and attracting new investors.
Macy's, United Rentals rise; Apple, Spirit Airlines fall Monday, 3/4/2024 None - Stocks that traded heavily or had substantial price changes on Monday: Macy’s, United Rentals rise; Apple, Spirit Airlines fall The Associated Press By The Associated Press NEW YORK -- Stocks that traded heavily or had substantial price changes on Monday: Apple Inc., down $4.56 to $175.10. The European Union has fined the iPhone maker nearly $2 billion for breaking competition laws. Spirit Airlines Inc., down 70 cents to $5.76. JetBlue is terminating its proposed buyout of the airline after a court blocked the deal. Akero Therapeutics Inc., up $3.26 to $31.07 The drug developer gave investors an encouraging update on a potential liver condition treatment. Iovance Biotherapeutics Inc., up 17 cents to $16.96. The biotechnology company gave investors an encouraging update on a lung cancer treatment. Blackbaud Inc., up $2.12 to $72.48. The software and services provider in the nonprofit sector announced a stock buyback plan. Super Micro Computer Inc., up $168.86 to $1,074.34. The server technology company is joining the S & P 500 index. Macy's Inc., up $2.44 to $20.45. Arkhouse Management and Brigade Capital Management raised their offer for the department store chain. United Rentals Inc., up $11.72 to $712.31. The equipment rental company is buying Yak Access for about $1.1 billion.
One Tech Tip: Change these settings on X to limit calls and hide your IP address None - Elon Musk’s social media platform X has made audio and video calling capabilities available to all users, not just those with paid accounts One Tech Tip: Change these settings on X to limit calls and hide your IP address Elon Musk's social media platform X has made audio and video calling capabilities available to all users, not just those with paid accounts. But a privacy issue has emerged from the rollout. The changes have made it so anyone following you on the platform formerly known as can call and see your Internet Protocol address by default. An IP address lists where your phone or computer lives on the internet — it’s how you get messages and load websites. An exposed IP address can make you more vulnerable to dangers from spam to ID theft to revealing your location. It poses perhaps the most serious risk to people like human-rights activists who create online accounts under pseudonyms to avoid persecution. If you want to avoid random calls from people you may not know or want to hide your IP address from the X community, here are the mobile app settings you need to change: Navigate to the X app on your phone. Click on your profile picture in the upper-left corner, navigate to “Settings and Support,” then hit “Settings and privacy." Touch the “Privacy and safety” menu and then scroll to the “Direct messages” subcategory. If you want to use X's new audio and video call functions but limit the exposure of your IP address, scroll down and toggle on the “Enhanced call privacy” option. It’s toggled off by default. X says this setting will help you avoid revealing your IP address to your contact during a call. In this same menu, you also have a number of choices to limit who can call you, including an option that allows only people in your address book to reach out. In the “Direct messages” menu, toggle off the “Enable audio and video calling” option. This will collapse the previous options and prevent anyone on X from calling you. Limiting IP address visibility and turning off the calls entirely is only available in the settings if you are using the mobile app version of the former Twitter. For now, at least, there does not appear to be an option to turn off the feature using the web version of X. A representative for X did not immediately return a message for comment on Monday. ___ Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.
Beer maker Anheuser-Busch InBev reports better-than-expected Q4 earnings despite Bud Light backlash None - Multinational beer and beverage company Anheuser-Busch InBev, maker of Budweiser, Bud Light, Stella Artois and Corona, has reported a 7% increase in operating profit for last year, even as as sales sagged in the United States due to a decline in demand... FRANKFURT, Germany -- Anheuser-Busch InBev — maker of Budweiser, Bud Light, Stella Artois and Corona — reported better-than-expected net income in the fourth quarter despite lower beer volumes. The Leuven, Belgium-based beverage company said Thursday that its fourth-quarter operating earnings, which exclude financial factors such as interest and taxes, rose 7% to $19.98 billion, or 82 cents per share. That was ahead of the 76-cent profit analysts expected, according to FactSet. Fourth quarter revenue rose 6% to $14.5 billion. That was lower than the $15.5 billion analysts were expecting. Beer volumes were down nearly 4% globally for the quarter, although non-beer sales were up 3%. U.S. revenue declined 17.3% in the fourth quarter and 9.5% for the full year. Bud Light, the company's best-selling U.S. brand, faced a conservative backlash last year after it sent a commemorative can to transgender activist Dylan Mulvaney. Transgender rights supporters also deserted the brand, saying it didn’t do enough to support Mulvaney. AB InBev CEO Michel Doukeris said Thursday that Bud Light has been slowly regaining its U.S. market share since last May. The company has refocused its advertising on sporting events and concerts. “I think that we are making progress. It’s not at the fast pace that we were expecting or that we’ve been working for. But nevertheless, progress is in place,” Doukeris said during a conference call with investors. He said the company's other brands, including Michelob Ultra and Cutwater spirits, have gained some of the U.S. shelf space that Bud Light lost. There also was some good news for AB InBev in the U.S. late Wednesday. It avoided a strike by 5,000 of its U.S. workers after reaching a tentative contract agreement with the Teamsters union. Workers are expected to vote on the agreement next week. The company performed better in Europe in the fourth quarter, where it increased revenue despite declining volumes and also grew operating profit. In China, revenue jumped 11% despite lower volumes. Doukeris said Chinese sales were strong for premium and super-premium brands. The company said it would increase its dividend to shareholders by 9% to 82 cents per share. AB InBev shares were down nearly 4% in morning trading on the New York Stock Exchange. ___ Dee-Ann in Detroit contributed to this story.
WeightWatchers shares plunge by 25% after Oprah Winfrey announces departure from board None - Winfrey has served on the company’s board of directors since 2015. Shares in WeightWatchers dropped by more than 25% in premarket trading Thursday after Oprah Winfrey’s announcement that she has decided not to stand for reelection to the board at the upcoming annual meeting of shareholders in May. Winfrey has served on the company’s board of directors since 2015, according to a statement from the company confirming her departure. After briefly rallying at the opening bell, the stock remained down by 23% midday Thursday. “I look forward to continuing to advise and collaborate with WeightWatchers and CEO Sima Sistani in elevating the conversation around recognizing obesity as a chronic condition, working to reduce stigma, and advocating for health equity,” said Oprah Winfrey. Winfrey also announced that she plans to donate her financial interest in WeightWatchers to the National Museum of African American History and Culture in Washington, D.C. LOS ANGELES, CALIFORNIA - FEBRUARY 04: Oprah Winfrey attends the 66th GRAMMY Awards at Crypto.com Arena on February 04, 2024 in Los Angeles, California. Neilson Barnard/Getty Images for The Recording A “Weight Health is a critically important topic and one that needs to be addressed at a broader scale. I plan to participate in a number of public forums and events where I will be a vocal advocate in advancing this conversation,” continued Winfrey. “In addition, I have decided to donate my interest in WeightWatchers to the National Museum of African American History and Culture (NMAAHC). I have been a long-time supporter of this worthy organization, and I am proud to continue my support.” The Board of Directors of WeightWatchers said that they were supportive of Winfrey’s proposal to donate all of her stock to the museum. “Ms. Winfrey is making the donation to support the NMAAHC’s goal to promote and highlight the contributions of African Americans and to eliminate any perceived conflict of interest around her taking weight loss medications,” WeightWatchers said in their statement. “In addition, Ms. Winfrey intends to donate the proceeds from any future exercises of her WW stock options to NMAAHC.” Meanwhile, the company published its latest financial report on Wednesday, including its fourth-quarter and full-year 2023 results which showed a total loss of $88.1 million, more than twice the amount during the same period in the previous year at $35.8 million. Winfrey has a stake in the company of around 10% and is one of the company’s biggest shareholders. “Oprah has been an inspiring presence and passionate advocate for our members, providing critical insights and counsel that has helped shape WeightWatchers over these last 8 years. On behalf of the Board, I would like to thank her for her energy, dedication, and for continuing to play a role as collaborator and thought partner going forward. What I know for sure, we will dearly miss her presence on the Board,” said Thilo Semmelbauer, chairman of the board. In a statement Thursday evening, WeightWatchers thanked Winfrey for being a part of the organization for so long. "After nearly a decade of service as a member of WeightWatchers’ Board of Directors, Oprah Winfrey has decided to not stand for re-election in May," the statement read. "We are deeply grateful to Oprah for her dedication, unwavering support, and invaluable partnership. Her ability to inspire millions of people to put their health and wellness first will have a lasting impact on our members and brand. We’re enthusiastic about her continued advisement and collaboration with the company, including her role in our upcoming Weight Health event and her advocacy in addressing this critically important topic."
'They were terrified': George Conway unloads on SCOTUS for Trump ballot decision None - 'They were terrified': George Conway unloads on SCOTUS for Trump ballot decision Jen Psaki is joined by conservative attorney George Conway for a conversation on the constitutional basis of the SCOTUS ruling, that only Congress can disqualify an insurrectionist from federal office.March 5, 2024
Why SCOTUS Justices split over whether Congress should’ve been brought into the Colorado ruling None - The Supreme Court unanimously decided to keep former president Donald Trump on states’ ballots on Monday. However, there was a split, five to four, over whether the court should have brought Congress into the ruling. President and CEO of the National Constitution Center and Law Professor at George Washington University Jeff Rosen, and former Senior Investigative Counsel for the House Select Committee to investigate the Jan. 6 Attack Temidayo Aganga-Williams joins MSNBC’s Chris Jansing to break down the legal analysis of the decision.March 4, 2024
Trump reacts after Supreme Court rules he cannot be removed from state ballots None - Trump reacts after Supreme Court rules he cannot be removed from state ballots Former President Trump praised the Supreme Court for their unanimous ruling that he could not be removed from state ballots, overturning a decision in Colorado.March 4, 2024
How Apache Stronghold's fight to protect Oak Flat in central Arizona has played out over the years None - Native American groups have struggled with mining interests over a decade over Oak Flat, a piece of national forest land in central Arizona How Apache Stronghold's fight to protect Oak Flat in central Arizona has played out over the years PHOENIX -- Oak Flat, a piece of national forest land in central Arizona, is at the heart of a yearslong struggle between Native American groups and mining interests that both consider it important for their future. Resolution Copper, a subsidiary of international mining giants Rio Tinto and BHP, wants to develop the large deposit of copper ore deep under Oak Flat into a massive mine. The nonprofit Apache Stronghold considers the land sacred and says it should be preserved for religious ceremonies. In a significant blow to Apache Stronghold, a divided federal court panel voted 6-5 on Friday to uphold a lower court’s denial of a preliminary injunction to halt transfer of land for the project. Apache Stronghold says it will appeal to the U.S. Supreme Court. Here is how the fight has played out over the years: November 2013: Resolution Copper introduces its initial general plan of operations for a proposed mine at Oak Flat. Dec. 12, 2014: The U.S. Senate approves a must-pass military spending bill that included the Oak Flat land swap, giving the national forest property to mining companies for development of America’s largest copper mine. A rider tucked into the legislation called for Resolution Copper to get 3.75 square miles (9.71 square kilometers) of forest land in return for eight parcels it owns in Arizona. March 4, 2016: The Forest Service adds Oak Flat to the National Register of Historic Places. Arizona Republican Congressman Paul Gosar and Democratic Rep. Ann Kirkpatrick oppose the historic place designation, with Gosar saying it is “sabotaging an important mining effort.” May 24, 2020: A Rio Tinto iron mining project destroys two rock shelters that were inhabited by Indigenous people for 46,000 years in Juukan Gorge in Western Australia state, prompting the resignation of the company CEO. Jan. 12, 2021: Apache Stronghold sues the federal government, saying the Forest Service cannot legally transfer the land to Rio Tinto for several parcels the company owns and maintains the land around Oak Flat was reserved for Western Apaches in an 1852 treaty with the U.S. Feb. 12, 2021: A federal judge rejects the request to keep the Forest Service from transferring the land to Resolution Copper. saying that because Apache Stronghold is not a federally recognized tribe it lacks standing to argue the land belongs to Apaches. March 1, 2021: The U.S. Department of Agriculture pulls back an environmental review that had cleared the way for the land swap, saying it needed more time to consult with Native American tribes and others. Oct. 21, 2021: Apache Stronghold asks a three-member panel of the 9th U.S. Circuit Court of Appeals to keep Rio Tinto from getting the Oak Flat property. Months later, the panel issues a 2-1 decision that the federal government can give the Oak Flat land to Rio Tinto, but then agrees to let a larger appeals panel hear the case. March 21, 2023: Apache Stronghold tells a full panel of the 9th U.S. Circuit Court of Appeals that the Resolution project would prevent Native American groups from exercising their religion by destroying land they consider sacred. The 11-member panel says it will issue a decision in the coming months. March 1, 2024: An 11-member “en banc” panel of the Ninth Circuit Court of Appeals votes 6-5 to uphold a lower court’s denial of a preliminary injunction to halt the transfer of land for the project.
UK spends least among major European economies on low-carbon energy policy, study shows None - The UK spends less on low-carbon energy policy than any other major European economy, analysis has shown, despite evidence that such spending could lower household bills and increase economic growth more than the tax cuts the government has planned. Spending on low-carbon measures for the three years from April 2020 to the end of April 2023 was about $33.3bn (£26.2bn) in total for the UK, the lowest out of the top five European economies, according to an analysis by Greenpeace of data from the International Energy Agency. Italy topped the table for western European economies, having spent $111bn in the period. Germany spent $92.7bn, France $64.5bn and Spain about $51.3bn. The data includes spending on electricity networks, energy efficiency, innovation on fuels and technology, low-carbon and efficient transport and low-carbon electricity. In addition to spending on these measures, all the countries spent substantial amounts on holding down energy bills for households, in many cases more than was spent on low-carbon measures. The UK spent about $42bn on energy affordability in the period, through measures such as the energy bills rebate and payments and discounts for the vulnerable. Only about $13.3bn was spent on energy efficiency for homes and industry, $12.8bn on low-carbon transport and less than $6bn on renewable electricity and innovation in the UK. When spending on energy affordability was stripped out, per capita spending was also much lower in the UK, at just under $500 per person across the three years, compared with more than $950 in France, $1,115 in Germany and $1,880 in Italy. On Wednesday, Jeremy Hunt, the chancellor of the exchequer, will deliver the last budget of this parliament, which is likely to centre on tax cuts that economists have said will mainly benefit better-off people. Hunt is expected to devote little resource to energy or green issues, despite a growing body of evidence and expert opinion suggesting that government spending is needed to kickstart the UK’s flagging economy and dismal productivity, and that green spending could provide a greater boost than tax cuts. Bob Ward, the policy and communications director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said: “There is now very clear evidence that the UK has been investing much less than its competitors across a range of areas, including on tackling climate change, biodiversity loss and environmental degradation. “This low investment explains why productivity has stagnated in the UK and growth has been so feeble. It also explains why our homes and businesses are vulnerable to climate change impacts, our countryside and seas are becoming depleted of wildlife, our cities have dirty air, and our rivers and beaches are covered in sewage.” A study from the LSE earlier this year found that investing about £26bn a year in the low-carbon economy would reduce household bills, attract about twice as much additional investment from the private sector, and do more to boost the economy than tax cuts. Georgia Whitaker, a climate campaigner at Greenpeace UK, said the UK was losing out to international rivals in the race for the economy of the future. “It’s clear that despite the government’s bluster, we are utterly failing on the world stage when it comes to green investment. Not only are the US and China leaving us in the dust in the race on green technology, we’re also doing terribly compared to our European neighbours,” she said. She called instead for a green industrial strategy and infrastructure investment. “Jeremy Hunt should use the spring budget to address this embarrassing failure, but instead he’s flirting with tax cuts that disproportionately benefit the wealthiest. Meanwhile, the rest of us struggle on with the cost of living,” she said. A Department for Energy Security and Net Zero spokesperson said: “This report fails to recognise our progress compared to European allies. We are the first major economy in the world to halve our emissions, and we have the second largest renewables capacity in Europe. “We have a clear strategy to boost UK industry and reach net zero by 2050 – backed by £300bn in low carbon investment since 2010.”
What are the UK’s ‘fiscal rules’ and why is the OBR under attack? None - It has been described as a millstone around the chancellor’s neck and the reason Conservative MPs could be disappointed by Jeremy Hunt’s budget on Wednesday if he spurns their demands for large pre-election tax cuts. After coming under intense criticism during Liz Truss’s premiership, the Office for Budget Responsibility (OBR), the Treasury’s tax and spending watchdog, is once again under fire. What is the OBR and why is it so powerful? Created by George Osborne in 2010 to “remove the temptation [from politicians] to fiddle the figures”, the OBR’s role is to provide analysis of the UK economy and public finances independent of the Treasury. It is tasked with producing five-year forecasts twice a year, normally alongside a spring budget or autumn statement. At first the OBR was used by Osborne to signal the Tories’ ironclad commitment to balancing the books, aiming to portray his party as the most trusted stewards of the economy, in opposition to Labour. However, it is increasingly seen within Tory circles as a roadblock to transformative tax and spending policies, a view also held by some on the left of politics. Truss sidelining the OBR for her mini-budget was one of the reasons cited for the ensuing financial market meltdown, inadvertently strengthening its position further. Charlie Bean, an ex-member of the independent watchdog and a former Bank of England deputy governor, says: “It’s shooting the messenger. Because the UK’s fiscal context is really very challenging at the moment, which neither party is really recognising.” So what are these ‘fiscal rules’? The main constraints on the chancellor are in fact self-imposed, through fiscal rules the government has set. The OBR is tasked with assessing whether these rules are being met, but Hunt could choose to ignore them, or decide a new set of fiscal rules instead. The primary target is for government debt to be falling as a percentage of GDP in the final year of a five-year forecast. There are also rules for borrowing – the annual budget deficit – not to exceed 3% of GDP over the same time period, and a welfare cap limiting the amount spent on certain benefits. However, economists say the rules are harder to meet while the UK’s economic growth outlook remains weak; alongside higher borrowing costs, and rising demands on public services from an ageing population. Government debt as a share of the economy is already high, at 96.5% of GDP, having risen sharply after the 2008 financial crisis and Covid pandemic. Andy King, a former OBR member who is now a specialist partner at the advisory firm Flint Global, says: “My reading of what’s going on at the moment is that the criticism of the OBR is in some respect reflective of the challenging fiscal position, and that comes in part from the weak outlook for growth.” And what about ‘headroom’? The margin within which the fiscal rules are met is often termed as the chancellor’s “headroom”. MPs often interpret this as the scope available for tax cuts or higher spending – even if this means the government continually bumping up against its primary fiscal rule. At last year’s autumn statement, the OBR forecast that Hunt had about £31bn of headroom before any tax or spending decisions were made. Hunt’s policy measures – including a 2p national insurance cut and tax breaks for businesses – reduced his headroom to about £13bn. The OBR warned this was a historically slim margin, with previous chancellors having kept about £29.7bn in reserve on average. View image in fullscreen Jeremy Hunt has been accused of gaming the system with his tax and spending policies. Photograph: Stefan Rousseau/Stefan Rousseau / PA It is understood the OBR has presented Hunt with forecasts showing headroom of about £13bn before any tax and spending decisions are taken at the budget. David Gauke, a former Conservative chief secretary to the Treasury, says: “The fact is, we are very close to breaking the chancellor’s own rules, but that’s not the OBR’s fault. “The government sees the edges of the fiscal rules almost as a target, which is why the decisions on the margins by the OBR are having such an important impact on the budget.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Economists warn that hard-to-predict changes in the economy could have big impacts on the public finances in future, with the likelihood the headroom can be drastically reduced. “There is this tendency of chancellors to be responsible in future. But then you never get the debt under control in the medium term, in a sort of mañana strategy,” says Bean. What are the chancellor’s options? Hunt could choose to ignore his main fiscal rule, or rip it up and announce new targets instead. The government has changed its fiscal rules nine times since they were first introduced in the 1990s, with seven different sets since 2010. They were most recently changed by Hunt in November 2022, with the horizon for getting debt falling extended from three to five years. According to the Institute for Government thinktank, the UK’s fiscal rules have the shortest lifespan before being changed out of 35 nations it analysed. However, it’s most likely the chancellor will stick to the target – reflected in the reports that Hunt is planning to fund his plans using cuts in the public sector, as well as revenue-raising measures such as scrapping the non-dom tax regime. There are economic and political reasons for doing so. After Truss’s mini-budget meltdown, the chancellor will be wary about signalling to markets a willingness to push up the UK’s debt levels. Meanwhile, sticking to the target throws down a gauntlet to Labour to act within the same rules, which could be helpful ahead of the general election. However, Hunt could also game the system – as he was accused of doing at the autumn statement – by setting tax and spending policies so that debt falls as a share of GDP in the fifth year, even if the policies are unlikely to be delivered or are not considered to be desirable. This led Richard Hughes, the chair of the OBR, to criticise Hunt’s plans as a “work of fiction”. “It’s an invitation for the chancellor to fiddle what’s happening in that final year,” Bean says. “The broad objective is sensible, you want debt to GDP falling in the good times, to build up space for the next bad shock. “Clearly what’s not sensible is the way it’s being operated. Partly because the rule itself allows this Augustinian approach to public policy: make me chaste, but not today.”