Who audits the internal auditor’s external auditor?

“The auditor of wine retailer and supplier Conviviality could face questions over its role in the company’s collapse.

The Financial Reporting Council (FRC) confirmed to City A.M. that it was “looking closely at the reported accounting issues at Conviviality”.

“If the relevant threshold tests are met in relation to accountants at the company and/or its auditors a formal investigation may be opened,” a spokesperson said.

This follows two profit warnings from Conviviality last month which it said had stemmed from accounting errors.

The first was blamed on an arithmetical mistake, while the second related to an unpaid tax bill.

The company ceased trading on London’s junior market prior to the second announcement, and scrambled to form a rescue plan as its cashflow was hit.

After unsuccessful attempts to save the company with a fundraising backed by drinks giant AB InBev, the company appointed administrators early this month.

Its direct business Matthew Clark Bibendum was sold to Magners Cider owner C&C, while its retail arm which includes Bargain Booze and Wine Rack was sold to Bestway for £7.5m.

Chief executive Diana Hunter stepped down in the midst of the scandal, but she and other board members have faced criticism for a fast-paced acquisition-focused strategy.

The FRC has the power to fine auditors it finds to be substandard, though its powers are set to be reviewed by the government following concern that the bar for misconduct is set too high.”

http://www.cityam.com/284451/kpmg-could-face-questions-auditor-watchdog-after

City faces corruption crackdown as IMF investigates wealthy countries

“The City of London will come under the spotlight of the International Monetary Fund as part of a crackdown on corruption that will investigate whether Britain and other rich countries are taking tough enough action against bribery and money laundering.

In a hardening of its approach, the IMF said it needed to look at those giving bribes and financial centres that laundered dirty money as well as improving the existing clampdown on wrongdoing in poor countries.

London has won the unenviable reputation of being the global centre for money laundering, partly as a result of cases such as the Global Laundromat, under which British-registered companies and banks helped move at least £20bn of money from criminal activities out of Russia.

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All members of the Group of Seven industrial nations – Britain, the US, Germany, Japan, France, Italy and Canada – together with Austria and the Czech Republic will be looked at by the IMF to see whether their legal systems criminalised bribery and have the right mechanism to prevent laundering of dirty money.

Christine Lagarde, managing director of the IMF, said: “The flip side of every bribe taken is a bribe given. And funds received through corruption are often funds concealed outside the country, often in the financial sectors of major capitals. It is quite possible for countries to have “clean hands” at home but “dirty hands” abroad.

“To truly fight corruption, therefore, we need to address the facilitation of corrupt practices by private actors. To do this, we will be encouraging our member countries to volunteer to have their legal and institutional frameworks assessed by the Fund – to see whether they criminalise and prosecute foreign bribery and have mechanisms to stop the laundering and concealment of dirty money.”

Lagarde said the willingness of the G7 plus Austria and the Czech Republic to allow their anticorruption regimes to be tested was a “a major vote of confidence in the new framework”.

The investigation will form part of the annual Article IV health check that the IMF conducts on every member country. Philip Hammond said in Washington that the size of the City of London meant he could not definitively say that there was no illicit money flowing through the UK financial system but that the government was working hard to reduce and eliminate illicit flows.

Lagarde said there was empirical evidence to show that high levels of corruption were linked to significantly lower growth, investment, foreign direct investment and tax revenues.

A country that slid down from halfway to three-quarters of the way down a league table of corruption and governance was likely to see growth of national income per head decline by half a percentage point or more.

“Our results also show that corruption and poor governance are associated with higher inequality and lower inclusive growth.” …”

https://www.theguardian.com/business/2018/apr/22/city-faces-corruption-crackdown-as-imf-investigates-wealthy-countries

Flagship Tory council may turn red due to councillors’ cosy relationship with developers

Owl says: If every Tory council with cosy relationships with developers turned red there wouldn’t be any left!!! Tory/developer, horse/carriage!!!

“It is the Conservatives’ local government flagship, blue since its creation in 1965. But in Westminster, amid a growing row about the influence of property developers, next month’s local elections are starting to look a bit tight.

In the ward covering London’s West End, some of the priciest real estate in Europe, two of the three sitting Tory councillors have been ousted by the party after opposing a wave of new building, which they say is overwhelming the area.

One of the councillors, Paul Church, said he had “tried to stand up for the communities I was elected to represent against the dominance of property developers and their agents, patronage and power in Westminster” but he had been “bullied, silenced and threatened by their powerful allies. Local government shouldn’t be like this.”

The other, Glenys Roberts, who has represented West End for 19 years, said: “I have tried to find out why I was deselected and they won’t tell me, so I feel as if I’m in a Kafka novel.” She said she had protested against “too much demolition” in Soho, part of her ward, adding: “If you completely get rid of the loucheness and the interestingness, do you just get rid of Soho and the reasons that anybody would ever come there?

“These are the issues I was very deeply involved with. They [the council leadership] didn’t like me being involved with State of Soho [a local group that campaigns against overdevelopment], but I just wanted the best for my area and the people I represent.”

Soho, a small area made up mainly of 18th and 19th-century houses, faces almost 20 large development schemes. Seven involve significant demolition of historic buildings, including the former Foyles bookshop in Charing Cross Road, a plan described by Historic England as doing “substantial harm” to the Soho conservation area.

The row will reopen concerns about developer influence at Westminster council, whose former deputy leader, Robert Davis, accepted more than 500 gifts or freebies, 150 of them from developers, while chairing the committee that decided on some of their planning applications.

Even the council leader, Nickie Aiken, admitted to The Sunday Times: “I do recognise that there was an historic issue in Westminster with the perception of these relationships. To date I have found no evidence of any wrongdoing or impropriety… [but] Westminster city council under my leadership will reassure residents about the integrity of the planning process.”

Davis left the planning job last year and “stepped aside” as deputy leader last month after it was revealed that he had taken gifts, meals or hospitality 514 times in three years, including nine free foreign trips, tickets to dozens of West End shows and hundreds of meals at top restaurants including the Ivy, the Ritz and Sexy Fish. He referred himself to a standards investigation but denies any wrongdoing and has been selected to stand for re-election as a Conservative.

In Mayfair, another part of her ward, Roberts said that “a lot of the rules [the council] have for keeping conservation areas in the right proportions and all the rest of it were being totally overruled”.

She said that Davis had once told her to “shut up” about a development and a number of other councillors “have told me he has tried [to silence them]”.

A third councillor who has been deselected in a different ward said Davis had telephoned to threaten them with “consequences” for their council career if they publicly spoke against controversial planning projects in their ward.

Davis said last night that he “never discouraged anyone from raising legitimate objections or concerns” but had “advised Mr Church that it is often sensible to air concerns with officers and members prior to a committee hearing, so as to allow them to be carefully considered and, ideally, addressed beforehand”.

He “expressly” denied threatening anyone with any consequences for opposing a planning application.

Roberts also said pressure was put on Westminster’s planning officers to change their recommendations to favour certain schemes.

“I was rung up by one of the officers saying there were meetings being held behind the scenes, off the record, no minutes taken,” she said.

“He was asked to change his recommendation and he refused . . . [but] the recommendations were changed subsequently.”

Roberts did not accuse Davis personally of pressurising officers and Davis said he had never asked any officer to change a recommendation.”

Source: Sunday Times (pay wall)

Telegraph says East Devon constituency is a marginal seat

https://www.telegraph.co.uk/active/11527430/HTML-Constituency-Safe-Seats.html

Potholes: a sign for the middle-classes that austerity is biting them too, and it hurts – literally!

Matthew Parris in today’s Times – it’s a sign of the times when a deep blue Tory says “enough is enough”! But it will NEVER be enough for your political masters , Matthew … as long as the people at the bottom of this stinking heap bear the brunt and you – and those high above you – live in your golden bubbles and prosper.

“I blame myself. My bicycle boy-racer days should have been over. I’d had two whiskies at the Duke of York, the night was dark, the lane was narrow and I knew well enough there were potholes. This one was a stonker. Crash, bang, wallop. Anyway I survived. I broke a few ribs but the crash helmet did its job, the ribs healed, the bruises faded and I live to tell the tale more than a year later.

I tell it now more as parable than anecdote. In a couple of weeks come important local government elections in many places. We don’t think enough about local government, whose job it was to mend that pothole.

But by starting with a me-and-my-pothole story I risk sounding like a parody of one of those ghastly charity appeals on the radio, showcasing the plight of some victim, typically a child. “So poor little Matthew fell off his bike. For just £5 your local council could fix that pothole. Please send your donation, however small, to HM Treasury, Great George Street . . .”

My story is trivial compared with cuts which for others may have meant the loss of social care in dementia, no Sure Start centre for a child, the closure of a small local hospital or the end of a vital local bus service. So is there a connection?

Yes. Throughout history rings the cry “It’s when it happens to you . . .”. Austerity often doesn’t “happen” to people like me (and many of you) as fast, as often or as painfully as it does to millions of others. But potholes we Times readers see. When in our own lives our nearside front tyre is shredded, the ruddy pothole represents a momentary twitching-back of one tiny corner of a great curtain, behind which lie, no, not potholes, but a million anxious human stories, caused in part by cuts in public spending.

And, no, I’m not going to decry cutting public spending. Much of it had to happen. But I’m making two points. First, the exercise cannot be without limit. Second, the time-lag between the cut and the pain can be so long that by the time you feel the pain the cut may have gone much deeper than you noticed. We need to wake up to that.

So back, without apology, to potholes. Thanks to another of these, a friend in Lincolnshire has just broken his neck, though not fatally, thank heaven. Potholes matter in themselves. But they are a parable for others that matter even more.

Over roughly the last decade (my figures don’t cover 2017) spending on roads by councils has fallen by about a fifth. Serious injuries to cyclists have trebled, while cyclists’ numbers have increased by a fraction of that. According to the RAC, the number of cars needing roadside assistance after hitting potholes has almost doubled since January.

According to the Asphalt Industry Alliance there are 24,000 miles of roads urgently awaiting repair in England and Wales. On present trends a road is resurfaced every 78 years and it would now take 14 years, and more than £9 billion, to return the network to a “steady state”. Our roads have been crumbling.

Roads spending has just started to rise, albeit gently. Late in the day, local and central government politicians have woken up to what’s happening.

The trouble is, it’s already happened. Voters in their millions, including Times readers in huge numbers, are telling them so. Just as my little argument with Mawstone Lane was a parable for a wider problem with potholes nationwide, so potholes nationwide are a parable for a problem far wider than that. We may be deceived by the fact that you can get away for years, but not for ever, with pushing a problem to one side.

All the pressures on those who run government, local and central, are to worry about the short-term. George Osborne had the aftermath of a world economic crash to get Britain through. Philip Hammond has Brexit. And when the Devil drives (as in politics he always does) and if you can block your ears to the caterwauling of those who always cry wolf anyway, it is usually possible to leave issues like road maintenance, decaying school buildings, rotting prisons, social care for the elderly, Britain’s military preparedness or a cash-strapped health service, to tread water for years or even decades. “They’ll get by,” say fiscal hawks, and in the short-term they’re often right.

Nobody’s likely to invade us; the NHS is used to squeezing slightly more out of not enough; cutting pre-school provision is hardly the Slaughter of the Innocents; the elderly won’t all get dementia at once; there’s little public sympathy for prisoners; teachers can place a bucket under the hole in the roof; and road users can dodge potholes.

In the case of local government Mr Osborne found you could slash, not snip. It has lost, unbelievably, almost 50 per cent of what it gets from the general taxpayer in less than a decade. But, hey, the rubbish is still collected.

All this has encouraged those, like me, of a Conservative disposition who see state wastefulness everywhere, to think that maybe you can just keep on cutting and never reach bone. For so it has often seemed, however urgent the shrieks of doom-mongers.

But beneath the surface problems build up. The old get older, and more numerous. Potholes start breaking cyclists’ necks. Care homes start going under. The Crown Prosecution Service begins to flounder. We run out of social housing. Prisoners riot. And is there really no link between things like pre-schooling, sports and leisure centres and local outreach work, and the discouragement of knife crime? It all takes time, though.

In that most unfashionable thing, public administration, the life cycle of a problem may be counted in decades, even generations. The cycle of an elected politician’s term is four or five years. Democratic politics and good public administration march to different drumbeats.

When New Labour was elected in 1997 we Tories groaned as it tipper-trucked money into the NHS, school building and other public services. But after 18 years of saying no, we had let an undersupply arise: of bricks, mortar, equipment, wages, staff and morale — invisible on any Treasury balance sheet. Thirteen years later when Labour left office the undersupply was monetary, the red ink all too visible.

Must we forever oscillate like this? Probably. Unless politics understands this paradox: the right time to fill a pothole is before it’s a pothole.”

Beware “Independents” with dubious intentions … next time around

We currently have VERY Independent Independents at EDDC.

But, given the “race to the bottom” that is happening in party politics at the moment, we can expect more of this sort of thing:

Care at home? Not if there are no carers for the homes

Care for 13,000 Britons at risk as provider seeks rescue plan

“The care of more than 13,000 elderly and vulnerable Britons could be thrown into turmoil after one of the biggest providers of home care visits in the UK warned it would go bust unless creditors backed a rescue plan.

Allied Healthcare, which has contracts with 150 local authorities and also provides out-of-hours services for the NHS, is asking for breathing space on its finances after cashflow problems that have been triggered in part by an £11m bill for back pay owed to sleep-in care workers.

The loss-making company has 12,000 employees and cares for 13,500 people in their homes via a network of 83 branches around the country. According to the Allied website it is the country’s largest domiciliary care business, twice the size of its nearest competitor.

Its Primecare division provides primary and urgent healthcare services, including NHS 111 telephony services, GP-led medical centres and end-of-life care. It also provides healthcare services in a number of secure settings including prisons, immigration centres and secure training centres.

Allied was bought by the German private equity firm Aurelius in a £19m deal in December 2015 but it has struggled against a backdrop of local authority funding cuts.

In a letter to creditors seen by the Guardian, its chief executive, Luca Warnke, said it had “significant funding pressures on our customers that have impacted on their ability to deliver financially viable health and social care services”. It added that it had taken the decision to pursue a company voluntary arrangement (CVA), an insolvency procedure that will enable it to agree a payment plan with creditors that include landlords and members of its pension schemes. It expects to file for the procedure on Monday.

Warnke blamed rising agency labour costs for its woes, pointing to the shortage of doctors and nurses since the Brexit vote as well as a potential £11m bill for backdated “sleep in” payments depending on HMRC’s calculation of the pay period.

Last year the government changed its guidance on how sleep-in carers should be paid, advising that they were entitled to earn the national minimum wage for the entirety of the time they were present in a house rather than just a flat rate. At that time some charities warned it could cost the sector £400m and potentially bankrupt many social care charities and providers.

The company said in a statement: “As with many independent providers in the UK health and social care sector, Allied Healthcare has been operating in a highly challenging environment for a sustained period of time, which has placed pressure on the company.

“As a result of these challenges, Allied Healthcare has has taken the decision to pursue a company voluntary arrangement as part of a prospective business plan that will ensure safe continuity of care across our UK-wide operations, place the company on a sustainable long-term footing and maximise repayments to creditors.

“The proposed CVA will not impact on the safe continuity of care that Allied Healthcare provides across the UK,” it said. “Allied Healthcare will continue to trade safely and it remains business as usual for Allied Healthcare employees and customers.”

The company insisted there were currently no plans for redundancies or branch closures.

A spokesman for the Local Government Association (LGA), which represents local authorities, insisted that councils have “robust” contingency plans in place to manage the care of individuals if necessary if the company were to fail.

“The absolute priority for councils affected is to protect the vital care and support that older and disabled people rely on and ensure it is able to continue without interruption,” a spokesman said. “The LGA is working alongside the Care Quality Commission and the government to support Allied, where possible, as it plans to financially restructure the business and continue to provide high-quality home care.”

https://www.theguardian.com/society/2018/apr/20/care-for-13000-britons-at-risk-as-provider-seeks-rescue-plan

“Poorest families ‘going without food or power’ “

Owl says: Are we back in the Middle Ages with rich feudal barons and poor serfs?

“Hundreds of thousands of the poorest families in Britain are going without basic necessities, according to two separate surveys.

Citizens Advice said as many as 140,000 households are going without power, as they cannot afford to top up their prepayment meters.

And the Living Wage Foundation – which campaigns for fair pay – said many of the poorest parents are skipping meals.

However the government said workers are now earning more, and paying less tax.

The survey conducted by Citizens Advice suggests that most households that cannot afford to put money in the meter contain either children or someone with a long-term health condition.

Some people are left in cold houses, or without hot water.

“It is unacceptable that so many vulnerable households are being left without heat and light,” said Gillian Guy, chief executive of Citizens Advice.

“For some people self-disconnection is easily managed, but for many others it is an extremely stressful experience that can have harmful physical and emotional effects.”

http://www.bbc.co.uk/news/business-43827846

“Developers ‘must stop taking buyers for granted’ ” – says Minister who can stop it!

“Britain’s biggest housebuilders are taking customers for granted and doing too little to help when things go wrong, the housing secretary has said.

Sajid Javid intervened yesterday in the debate over construction standards at new-build developments to say it was “not acceptable” that some companies were “letting down their customers”.

The comments follow an investigation by The Times which found that Bovis Homes was misleading buyers and delaying essential repairs to poorly built properties. Hundreds of the company’s customers have complained of springy floors, leaks, missing insulation panels, poor drainage, unfinished gardens and, in some cases, serious structural faults.

Mr Javid wrote on Twitter: “Thank you The Times for highlighting how some big developers are letting down their customers. Not acceptable. Our plans to change… “

Source: Times (pay wall)

“Don’t let over 55s decide elections”

Owl says: With SO many over-55s in East Devon influencing voting, we certainly do need younger voices to be heard.

“Labour’s election campaign chief has expressed fears that Jeremy Corbyn’s army of young supporters may not turn out to vote in the local elections, meaning the party might fail to live up to high expectations.

Andrew Gwynne, who is also the shadow communities secretary, said there was a danger that the young voters who backed in Labour at the general election would stay at home.

“That’s why we’ve been trying to make the case that local councils have a big impact on young people’s lives,” he said. “It is so important for young people not to leave local elections just to the over-55s.”

https://www.theguardian.com/politics/2018/apr/19/dont-let-over-55s-settle-local-elections-urges-labour-campaign-chief

“Devon councillors allowances set to rise by an inflation-busting 15 per cent”

“An inflation-busting 15 per cent hike in allowances for Devon County councillors has been proposed.

The independent remuneration panel has recommended that a rise from the current figure of £10,970 to £12,607 to be implemented by the council. It comes as no rise in allowances for members have taken place in the last nine years.

… Devon County Council’s procedures committee on Wednesday morning voted to recommend to full council that the 15 per cent rise should be implemented, but councillors from all parties will be given a free vote when it goes before them. … “

[There then follows a long justification from a Tory councillor about why this is acceptable and a table of the new allowances]

https://www.devonlive.com/news/devon-news/devon-councillors-allowances-set-rise-1473146

“GRUBBY CORRUPTION’ Tax officials refused to investigate money laundering at telecoms company ‘because they donated cash to the Tories’ “

“TAX officials are under fire after it emerged they refused to investigate a company for money laundering – saying the firm was a massive Tory donor.

HMRC was asked by French authorities to raid the offices of telecoms firm Lycamobile, but turned down the request.

BuzzFeed revealed that in an email to the French officials, a senior civil servant said: “It is of note that they are the biggest corporate donor to the Conservative party led by Prime Minister Theresa May and donated 1.25m Euros to the Prince Charles Trust in 2012.”

HMRC has admitted the reference to Lycamobile’s political links was a mistake – but insisted that was not the reason they refused to probe the firm.

Furious MPs accused the tax authorities of “grubby corruption” and demanded an explanation from Philip Hammond.

Prosecutors in France launched an investigation into claims that Lycamobile uses its phone business to launder money two years ago.

They asked HMRC to help out by raiding the company’s offices in London, but the British officials refused in an email sent in March last year.

The email included the information about the links between Lycamobile and the Tories – who have now stopped accepting donations from the company.

Asked about the letter, HMRC initially denied it was authentic, saying: “This is the United Kingdom for God’s sake, not some third world banana republic where the organs of state are in hock to some sort of kleptocracy.”

But they later admitted it was real and said it was “regrettable” that the line was included.

A spokesman told The Sun today: “HMRC always investigates suspected rule breaking professionally and objectively and is never influenced by political considerations.”

HMRC added that the reason the request to raid Lycamobile was refused was that French officials didn’t provide enough information.

Labour MP Wes Streeting blasted the revelations today, saying: “This sort of grubby corruption cannot be tolerated.”

https://www.thesun.co.uk/news/6091792/tax-officials-refused-to-investigate-money-laundering-at-telecoms-company-because-they-donated-cash-to-the-tories/

“Buyers in despair at badly built new homes” [particularly Bovis]

“One of the country’s biggest housebuilders is misleading buyers and “deliberately” delaying essential repairs to poorly built homes, according to an investigation by the Times. Bovis Homes, which builds about 3,500 properties a year, is also the only national builder to have been awarded a two-star rating out of five in the Home Builders Federation’s annual customer satisfaction survey for the year ending September 2017, meaning that between 30-40 per cent of customers would not recommend the company to a friend.”

Source:
Times p1, Sun p29

Claire Wright fights for proper scrutiny and transparency at DCC

Owl says: it beggars belief that (a) councillors are banned from asking public experts any questions and (b) minutes do not reflect PUBLIC anxieties!

And what would we do without INDEPENDENT councillors like Claire Wright!

“A recommendation will be put before Devon County Council Chairs of Scrutiny Committees on relaxing the rules around asking questions of members of the public, following today’s Procedures Committee meeting.

I proposed that there should be flexibility in the rules relating to public speaking in allowing questions from councillors on the committee. This was after I was prevented from asking a local GP a question following his submission relating to concerns on care at home, at January’s Health and Adult Care Scrutiny Committee meeting.

There was some discussion at today’s meeting and it emerged that other scrutiny chairs (Cllr Rob Hannaford in this instance) exercise discretion for points of clarification. I asked that this be made into a formal policy and it was agreed that the issue would be put before the next Chairs of Scrutiny meeting, which I will attend and make my case.

It is difficult to see a reason to argue against this modest change! My proposal to reduce the length of time that members of the public must register, from four days to two days, was not supported, unfortunately.

BETTER RECORDING OF PUBLIC SUBMISSIONS IN MINUTES BACKED

However, my request for more detailed recording in the minutes of members of the public submissions was backed by the committee this morning – after a bit of persuasion! This is important for the sake of balance. I argued that the committee exists to investigate matters of public concern. And it’s also important for the audit trail if the local health service did (heaven forbid) catastrophically fail and the health scrutiny committee was held to account.

Currently, the NHS presentations are recorded in detail, but members of the public representations are so glossed over in the minutes that no one would have a clue what their position was on the subject or what they said. With a simple tweak this will hopefully now be altered, which I believe more fully reflects what we are are here to do as councillors … which is represent members of the public.”

http://www.claire-wright.org/index.php/post/devon_county_council_public_speaking_changes_proposal_to_be_put_before_chai

“Funding for poorest children used to plug school budgets, say teachers”

“Schools are cutting back on staff, IT, equipment and day trips while funding for the UK’s poorest children is being used to plug budgets, teachers have claimed.

More than a fifth of teachers and school leaders believe pupil premium cash – the money aimed at the most deprived youngsters – is instead being used to make ends meet, a poll by the National Foundation for Educational Research found.

Almost half told the study that academisation – removing schools from local authority control – had a negative impact on the classroom, or no no impact at all.

The findings come amid widespread concerns from teachers, unions and parents about a squeeze on school budgets in England, though ministers have insisted more money is going to schools.

The survey of 1,246 primary and secondary teachers and senior leaders, working in English state schools, found that 22% said money from the pupil premium – extra funding to support the most disadvantaged youngsters – is being used to plug gaps elsewhere in their school’s budget.

Just over a third (36%) said this was not happening and the rest did not know.

Among the senior leaders polled, 34% said pupil premium funding was being used elsewhere, with 57% saying no.

Those surveyed by the National Foundation for Educational Research (NFER) were asked whether their school was cutting back on certain areas for financial reasons.

Some 63% said their school was cutting back on teaching assistants, making it the most popular answer, with 50% saying there had been cuts to support staff, and 39% saying teaching staff.

In addition, 44% said trips and outings had been cut back and 41% said there had been cuts to IT equipment.

The survey was commissioned by the Sutton Trust ahead of its education summit in New York. …”

https://www.huffingtonpost.co.uk/entry/funding-for-poorest-children-used-to-plug-schools-budget-say-teachers_uk_5ad7c36be4b03c426dab01f8

“Labour would rip up definition of affordable housing, Corbyn says”

“A Labour government would rip up the government’s definition of affordable housing and instead bring in a measure linked to people’s incomes, Jeremy Corbyn will say on Thursday.

A report, Housing for the Many, accuses ministers of stretching the term affordable to breaking point to include homes let at up to 80% of market rents – more than £1,500 a month in some areas – and homes for sale up to £450,000. “It has become a deliberately malleable phrase, used to cover up a shift in government policy towards increasingly expensive and insecure homes,” it says.

The Labour leader and John Healey, the shadow housing secretary, set out the party’s plans to link affordability to people’s incomes on tenures including social rent, living rent and low-cost ownership, in the 40-page green paper, to be launched on Thursday.

Labour says one “common yardstick” is whether rent or a mortgage costs more than one-third of a household’s after-tax income.

The green paper says Labour is keen to help not just the poorest in society, but also “the ‘just coping’ class in Britain today who do the jobs we all rely on – IT workers, HGV drivers, joiners, warehouse managers, lab technicians, nurses, teaching assistants, call centre supervisors, shop staff. They are the backbone of the British economy and heart of our public services.”

Britain faces an acute housing affordability crisis, with around 1.7m private rented households currently paying more than a third of their income in rent and 1m owner-occupiers paying more than a third of their income on their mortgage.

Corbyn will say: “When housing has become a site of speculation for a wealthy few, leaving the many unable to access a decent, secure home, something has gone seriously wrong. We need to restore the principle that a decent home is a right owed to all, not a privilege for the few. And the only way to deliver on that right for everyone, regardless of income, is through social housing.”

The paper includes a series of other measures, including creating a new Department of Housing and an independent watchdog, along the lines of the Office for Budget Responsibility, to assess the government’s policies and ensure they are delivered.

A Labour government would also end the right to buy, which the Cameron government extended to cover tenants in social housing, risking the depletion of the supply of social housing. Labour would also lift the cap on borrowing by local authorities, to allow councils to build more social housing themselves.

A Conservative spokesperson said: “Labour would kick away the housing ladder from everyone living in council houses by taking away their right to buy, just as Labour did in Wales. Under the Conservatives, we are investing £9bn to build more good-quality homes that people can afford and have seen the highest number of new homes being built for a decade.”

Healey will say: “The housing market is broken and current Conservative housing policy is failing to fix it. We have to build more affordable homes to make homes more affordable.”

https://www.theguardian.com/politics/2018/apr/18/labour-would-rip-up-definition-of-affordable-housing-corbyn-says

Jeremy Hunt didn’t tell Standards Commissioner he had bought 7 flats from an “a cquaintance” who was also a Tory donor

“Jeremy Hunt received a “bulk discount” on seven flats bought from a Conservative donor, the Guardian can disclose, as parliament’s watchdog opened an investigation into the health secretary’s admission that he breached money laundering rules.

The health secretary was forced to apologise for failing to declare his part-ownership of a company, which bought the luxury seaside flats in Southampton.

Kathryn Stone, parliament’s commissioner for standards, received a complaint about Hunt on Friday. The commissioner’s website confirms that Hunt is now under investigation.

Guardian inquiries established that the 82-flat block, called Alexandra Wharf, was developed by Nicolas James Group, a south coast property firm owned and chaired by businessman and Conservative donor Nicolas James Roach.

Neither Hunt nor Roach agreed to disclose the value of the deal but a source close to the health secretary said he had received a “bulk discount” for buying multiple apartments.

A spokesperson for Roach said that all sales at Alexandra Wharf were at “open market value”, adding that the businessman’s political donations had been properly declared on the Electoral Commission website.

They added that the pair had known each other for “several years” but had no business relationship beyond the purchase of the flats.

A spokesperson for Hunt said: “The owner of the development is a long-standing acquaintance.

“Jeremy paid standard market rates which would have been available to anyone else making an equivalent purchase.

“As Jeremy has been clear from the outset, the rental income from these properties will be donated to charity.”

Roach has made more than £50,000 in donations to Hunt’s South West Surrey constituency office since 2011, mostly in the form of complimentary venue hire.

The pair were pictured together in 2011 at a party to launch a £60m hotel in Guildford, Surrey, that was developed by Nicolas James Group.

Sir Alistair Graham, the former chairman for the committee on standards in public life said: “In terms of public perception of ministerial priorities, Hunt seems more concerned with maximising his personal interests rather than ensuring that there are good public services.

“On a local level, there does seem to be an incestuous relationship between a local donor and a local politician in a way which will make the public uneasy.” …”

https://www.theguardian.com/politics/2018/apr/18/jeremy-hunt-investigated-breach-money-laundering-rules-luxury-flats

Best live in western East Devon and not in northern or eastern East Devon!

In some parts of East Devon you are lucky to get a couple of buses each day!

“East Devon District Council gave the go ahead to fund four projects, unlocking new jobs and employment space locally.

Some £530,000 has been allocated over three years for an ‘enhanced’ bus service connecting the Enterprise Zone – Exeter Science Park, Skypark, Airport Business Park and Cranbrook town centre – and Exeter, with some services also running to Woodbury and Exmouth. This will be for a three year period from summer 2018. …”

http://www.exmouthjournal.co.uk/news/enhanced-bus-service-for-exmouth-to-boost-job-opportunities-1-5481849

Yet another Conservative-run Council seems to be facing bankruptcy – and this time it’s in a Tory Minister’s OWN Constituency

“There is a massive budgetary disparity at the heart of Tory-run Worcestershire County Council. The council, which includes Housing and Communities Secretary Sajid Javid’s constituency, has, it seems, sought to bury a damning review of its finances carried out by the Chartered Institute of Public Finance and Accountancy (CIPFA).

Worcestershire’s forecast increase in demand for services was 2.5 times larger than its expected growth in resources. The CIPFA has warned the council that they face a £26.4m hole in their finances in 2018-2019, which looks to rise to £60.1m in 2020-2021.

The shadow Housing and Communities Secretary, Andrew Gwynne MP has noticed the pertinent similarities between the situation in Worcestershire CC and Tory-run Northamptonshire County Council’s bankruptcy:

“This Government has utterly failed local government, forcing many authorities to struggle to maintain basic services after cutting their funding to the bone. The National Audit Office and the IFS are calling for a change in direction, one of the Government’s own councils has gone bankrupt, and now with this mess happening in the Secretary of State’s own Council – how much longer can Sajid Javid ignore this crisis?

Almost eight years of Tory austerity clearly isn’t working. It didn’t work for Northamptonshire, and it’s not working for Worcestershire. We need to elect as many Labour councillors as possible on 3 May to stand up to the Conservatives’ cuts.”

A reduction of 47% in the council’s usable reserves over the last 5 years, as well as overspending on children’s services, has seen the Worcestershire CC looming over a prospective £60m black hole.”

https://evolvepolitics.com/yet-another-conservative-run-council-is-facing-bankruptcy-and-this-time-its-in-a-tory-ministers-own-constituency/

Sidmothians balk at contributing £3 m to flood defences: EDDC accused of “fiddling while Rome burned”

Local people and businesses in a coastal Devon town are being asked to help pay towards the cost of a new £9m flood defence scheme.

Sidmouth’s eastern cliffs, which protect the town from flooding, are vulnerable and eroding at the rate of about a metre a year.

East Devon District Council is asking locals and businesses to contribute £3m towards the project.

But many locals do not see why they should pay, and are accusing the council of having wasted time and money over the last decade, “fiddling while Rome burns”.

[EDDC response:]

“East Devon District Council is completely committed to this project. We have already invested over £500,000 of our own money into the research, investigations and all the other necessary work that is done. If we can find another £3m, we can then unlock funding just under £6m from Defra, who are the primary agency concerned with flood protection.”
Tom Wright
Environment Porfolio, East Devon District Council

http://www.bbc.co.uk/news/live/uk-england-devon-43712628