House builders won’t close the gap …

” … The public sector has to be a steady supplier of homes, much as it was during the 1950s under the Winston Churchill, Anthony Eden and Harold Macmillan governments.

To most people in the housing industry, this was obvious for years. Labour, under Tony Blair and Gordon Brown, attempted to bully private housebuilders into including social housing in their estates. But it was always an uphill task. Tony Pidgley, the chairman of Berkeley Group, who pocketed a 42% rise in his take home pay to £23m last year, could not close the supply gap even if he wanted to.

He needs to make a profit for his hungry shareholders, who have set him a target of generating £2bn in pretax profit over three years from 2015, as reservations fall by 20%. Social housing is a discreet element of the Berkeley mix, but like most other major housebuilders, it cannot be more than that.

Turnbull makes no judgment on private developers, other than to highlight the empirically irrefutable point that they never build more than 120,000-130,000 homes a year in a country that, even if net migration were brought down to the tens of thousands, would require at least 200,000 new homes a year.

Fathom Consulting is one of the economic consultancies that continue to make this point year after year. It argues that property suffers from a market failure, which must be tackled by the government. Let’s hope that the Lords makes the same point.”

https://www.theguardian.com/business/2016/jul/04/construction-first-casualty-brexit-housebuilders-jitters-eu-referendum

Public Accounts Committee sees BIG problems with devolution scrutiny

FINALLY MPs WAKE UP TO MAJOR FLAWS IN DEVOLUTION PLANS! BUT IS IT TOO LITTLE, TOO LATE?

MPs on the Public Accounts Committee have stated they have little confidence in scrutiny arrangements being put in place around the government’s flagship devolution deals, and called for these to be improved in order to protect taxpayers’ interests.

A report by the Public Accounts Committee published on 1 July, warned that, following the abolition of the Audit Commission, the existing arrangements for local scrutiny of devolved functions must be made more robust.

Examining devolution agreements in 10 areas – Greater Manchester, Cornwall, Sheffield City Region, the North East, Tees Valley, Liverpool City Region, the West Midlands, East Anglia, Greater Lincolnshire, and the West of England – the PAC said local authority scrutiny was constrained.

The devolution deals for these areas, while all bespoke, share a number of elements, including devolved responsibilities in areas of local transport, business support and further education.

Committee chair Meg Hillier said English devolution represented a big change to the way large sums of taxpayers’ money is spent. “It is therefore alarming to report that, as we hurtle towards mayoral elections planned for next year [in these combined authority areas], so many questions still hang over the process,” she added.

“Parliament and the public must be assured that devolved spending is subject to effective scrutiny and there are clear lines of accountability for delivering value for money. “These vital arrangements are still very much work-in-progress and must be confirmed as a matter of urgency.”

The committee recommended that government should set out by November how it intends to ensure local scrutiny of devolved functions and funding will be well supported.

The Cities and Local Growth report highlighted that, currently, local auditors focus on individual bodies’ financial statements and arrangements for securing value for money.

“It is not yet clear whether there will be any sort of independent institutional scrutiny of devolution deals as a whole, or what form this might take,” it stated. “As more powers, funding and responsibilities are devolved to the local level, we are therefore concerned that a gap in the scrutiny of value for money might be appearing.”

The report, which the committee acknowledged was being carried out in an evolving policy context, highlighted this was an untested policy area. There were already clear tensions emerging in the deals, with evidence that some deals may disintegrate. There should be greater clarity from ministers about what they are hoping to achieve, Hillier added.

“The government has set an ambitious timetable to implement devolution deals but it must not skip over crucial details in a blinkered race to the tape. “The interests of taxpayers are paramount and we urge the government to act on our recommendations now to ensure devolution fully serves those interests.”

A DCLG spokesman said the report “misses the point of devolution, which is to end the one-size-fits-all approaches of the past and hand power from Whitehall to local people who know their areas best”.

He added: “We’ve agreed 10 landmark devolution deals covering nearly 30% of the country, with local leaders accountable to their residents including through the election of mayors to oversee the new powers.

“This is a voluntary, bottom-up process based on local proposals demonstrating strong local agreement and clear accountability.”

http://www.publicfinance.co.uk/news/2016/07/pac-raises-doubts-about-devolution-scrutiny

New PM: our boys like the girls!

Owl did, as self-predicted, get our MPs first preferences wrong! Swire likes May, Parish likes Leadsom. Oh well, one of them will be right!

Taking control and sovereignty – whose control?

Tricky one this. Presumably people voting Brexitassumed that control and sovereignty rested with Parliament. But David Cameron appears to think he can by-pass Parliament on this one. So, it’s a bit like the “elected Mayor” situation in devolution where one person gets to decide what happens next. Owl always thought that was a definition of dictatorship!

The referendum held on 23 June was an exercise to obtain the views of UK citizens, the majority of whom expressed a desire to leave the EU. But the decision to trigger article 50 of the Treaty of European Union, the legal process for withdrawal from the EU, rests with the representatives of the people under the UK constitution.

The government, however, has suggested that it has sufficient legal authority. Mishcon de Reya has been in correspondence with the government lawyers since 27 June 2016 on behalf of its clients to seek assurances that the government will uphold the UK constitution and protect the sovereignty of parliament in invoking article 50.

If the correct constitutional process of parliamentary scrutiny and approval is not followed then the notice to withdraw from the EU would be unlawful, negatively impacting the withdrawal negotiations and our future political and economic relationships with the EU and its 27 member states, and open to legal challenge. This legal action seeks to ensure that the article 50 notification process is lawful.”

Source: Guardian Live blog

Is Neil Parish indirectly supporting UKIP if he votes for Andrea Leadsom?

“No hysteria, I’m sure, in the Conservative party, where the whittling-down of leadership candidates begins tomorrow. Andrea Leadsom launches her official campaign today amid accusations that she is the Ukip choice for Tory leader. Ukip and Leave.EU funder Arron Banks is certainly on Team Leadsom, and Tory MP David Jones (a Theresa May backer) has warned:

There is no doubt that elements of Ukip are intending to try to steal a Conservative leadership election.”

Source: Guardian live blog

Osborne has a 5 point plan …

Chancellor George Osborne has come up with one [plan] and his also has five points [see Johnson, Boris], key among them a proposal to cut corporation tax to below 15% – the lowest of any major economy – to encourage businesses to invest in post-Brexit Britain. The others, as revealed in an interview with the Financial Times, are:

Ensuring support for bank lending.

A push for more investment in China.

A focus on delivering the Northern Powerhouse.

Maintaining Britain’s fiscal credibility.

No word from the chancellor on the brightness of the future, though he does urge everyone to stop “moping around”.

Source: Guardian Live blog

If that’s the plan, where does it place devolution outside the “Northern Powerhouse”?

And did he mean investment IN China or FROM China?

Whatever, our LEP members – all hit hard by Brexit implications in their individual sectors (nuclear, arms dealing, housing development and universities) – must surely be taking time out from their LEP duties to spend more time with their own businesses, now in dire need of their expertise.

Rural broadband: the missing 5% deserve better

“RENEWED effort is required to ensure that the final 5% of premises have adequate broadband connections, says the Rural Services Network.

The government’s proposed “right to request” superfast broadband connections was disappointing, said the network in response to an Ofcom consultation.
Rural homes and businesses were being treated differently to the 95% of premises already connected, the network warned.

“Government intervention through the Superfast Broadband Programme has enabled networks to extend into rural areas where there has been a market failure,” said the network.

“This is benefitting many rural households and businesses – albeit often in the easier-to-reach rural areas,” it added.

The government has proposed a Universal Service Obligation that would see all premises given a legal right to receive a minimum broadband speed of 10Mbps.

But the network said: “Renewed effort is now required to reach the final 5% of premises, most of whom are in rural locations and who still constitute around a quarter of all rural premises.”

It had become clear that the proposal was, in fact, simply a “right to request” access to a broadband network rather than universal provision of access to such networks.

“This is very disappointing and means that households and businesses in the final 5% are being treated quite differently from those in the 95%.”
The network said premises which couldn’t achieve an acceptable broadband connection must not be financially penalised simply because of their location.

“Some form of uniform pricing structure is therefore required for USO provision,” it said. “This would be in line with other USOs, such as that for postage.”

The network said it strongly supported the notion that the cost of providing a USO connection to consumers should not be disproportionate.

Proposals for the USO would lead to unreasonable connection costs for some rural consumers, especially in the most remote or sparsely populated areas.
By definition it was likely to be relatively costly to provide broadband to the remaining 5% of yet-to-be connected areas, said the network.

“Setting a £3,400 (or similar) connection cost threshold will impose a cost penalty on many rural consumers, which in certain cases could be very high.
“The USO could be especially unfair to the farming community.

“We do not think it is either fair or reasonable to make consumers responsible for all of the costs above such a threshold.

“This will result in some deciding to forego a broadband connection and will particularly hit low income rural households or financially marginal rural businesses.”

The network added: We conclude that the proposed threshold is both fundamentally unfair to the final 5% of consumers and is likely to be unworkable in the real world.”

http://www.rsnonline.org.uk/services/network-fights-for-better-broadband

Ofcom wants rural broadband volunteers for research panel

“Ofcom said it wanted to find out more about the “rural broadband experience” by encouraging rural people to join its research panel.

Ofcom said it existed to make communications markets work for everyone. One of the ways it did so was by conducting research to find out about the customer experience across the UK.

Each year, Ofcom reports its findings in its flagship Connected Nations report – which provides a snapshot of the state of the UK communication network.

To inform this and wider work, Ofcom is calling for volunteers to sign up to join its expanded research panel of broadband customers.

Ofcom said it was “particularly looking to sign up more people who live in rural areas in order find out more about the challenges they face”.

Potential participants are encouraged to sign up via Ofcom’s partner’s website at https://signups.samknows.com/ofcom/

Volunteers who meet Ofcom’s sample requirements will be sent a unit to plug into a mains socket and connect to their home broadband router. …”

http://www.rsnonline.org.uk/services/telecoms-watchdog-seeks-rural-volunteers