Daily Archives: 10 Jan 2019

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10 Jan 2019

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Affordable and Social Housing, Housing (local)

“[Mortgage] Loans lasting up to 40 years can leave buyers unable to save for pension, say regulators”

“First-time buyers are taking out jumbo loans on longer terms that will leave four in 10 borrowers paying off their mortgage well into retirement, regulators have warned.

The Financial Conduct Authority (FCA) found that 40% of borrowers who took out a mortgage in 2017 will be aged over 65 when their mortgage matures – leaving them unable to save for a pension, and vulnerable to any financial shocks.

The 40% figure represents a huge change over the last five years. As recently as 2012, just 22% of mortgages were expected to run into the borrower’s retirement. But that number has nearly doubled as buyers stretch themselves to pay for escalating house prices.

Historically, buyers have taken out 25-year mortgages to pay for their home, and in 2007 the 25-year term was still the most common deal. But the FCA found that 30-year terms have now become the norm, with 34% of loans taken out in 2017 lasting 30 years or more.

Most lenders now allow mortgages of 35 years, while Halifax and Nationwide, the two biggest lenders, will offer loans with 40-year repayment terms.

Many first-time buyers are also delaying a purchase until they are in their 30s as they save to afford the deposit.

In a grim assessment of the financial health of UK households, the FCA warned that the burden of a mortgage throughout people’s working lives is likely to limit their ability to save for a pension and deal with financial shocks. …”

https://www.theguardian.com/money/2019/jan/10/four-in-10-uk-first-time-buyers-will-retire-with-mortgages-fca-warns

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10 Jan 2019

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Accountability, Hugo Swire, Post-Brexit Adjustments

Swire Brexit intervention “flimsy rubbish” says Brexiteer MP

“In normal times, a PM’s ‘late’ decision to adopt a backbench amendment can swing the ten or so rebels needed to win a vote. However, the new normal on Brexit is that battle-hardened backbenchers are less likely than ever to cave to such tactics. The string of ‘concessions’ announced by Brexit secretary Steve Barclay and pushed by No10 yesterday met with a collective shrug at best and ridicule at worst.

The Hugo Swire amendment, to give MPs a final say on the ‘backstop’ or the transition period, was burned off by Brexiteer Steve Baker as “flimsy rubbish which will only persuade those who have decided to be persuaded”.

The DUP’s Nigel Dodds said the plan – which No.10 insiders admit would involve the UK struggling to meet its international obligations – was ‘meaningless and cosmetic’ “

Source: The Waugh Zone, Huffington Post

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10 Jan 2019

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Accountability, Audit (EDDC), EDDC, Local Government Finance

Many local authorities not providing value for money

“The number of public bodies in England failing to provide value for money is “unacceptably high” and increasing, the public spending watchdog has warned.

Of the nearly 1,000 councils, police, fire and NHS bodies across England, 208 (22%) were found to have “significant weaknesses” in securing value for money in 2017-18, a National Audit Office report out today revealed.

This was higher than the 170 (18%) of public bodies awarded a ‘qualified’ audit conclusion – signifying the significant weaknesses – in 2015-16.

“This increase varies between local government and NHS sectors”, the report found – with NHS bodies seemingly faring worse than other public bodies….

Financial performance issues that can lead to a qualified conclusion, include failure to meet financial targets, such as annual spending limits or delivering planned savings.

The NAO report said: “Qualified conclusions on arrangements to secure value for money locally are both unacceptably high and increasing.”

It continued: “The proportion of local public bodies whose plans for keeping spending within budget are not fit-for-purpose, or who have significant weaknesses in their governance, is too high. This is a risk to public money and undermines confidence in how well local services are managed.” …

The report also suggested that a large proportion of local bodies may not fully understand the purpose of an auditor’s conclusion on arrangements to secure value for money.

Of 61 local public bodies that responded to the NAO, 82% said auditors identified issues they were already aware of, but the NAO stressed that the auditor’s report is to provide public assurance on the adequacy of arrangements in place, not to uncover new issues.

While 95% of respondents said they had plans in place to address issues in the auditor’s report, only 5% said had already dealt with their auditor’s concerns.

Rob Whiteman, CIPFA chief executive, said: “Value for money conclusions should be treated as a cornerstone on which local bodies can show their dedication to transparency and accountability, crucial aspects of good governance in the public sector.

“Local auditors, councillors and directors should exercise their powers to hold executives to account, especially where local bodies are not taking sufficient action to address issues raised.

Meg Hillier, chair of the Public Accounts Committee, said: “It is deeply concerning that local auditors are raising increasing numbers of concerns about local bodies’ arrangements to secure value for money, but these are often not being listened to and there is no consequence for the local bodies themselves.

“With ever stretched public services, citizens deserve to know that there are effective arrangements in place to make sure they are getting value for money.

“Local auditors should be using the full range of their powers and local bodies should be acting on their findings transparently, with departments holding them to account.”

https://www.publicfinance.co.uk/news/2019/01/more-public-bodies-failing-provide-value-money-says-nao

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10 Jan 2019

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Accountability, DCC, East Devon Alliance, Martin Shaw (Seaton), Post-Brexit Adjustments

“County Council leader tells me he ‘hasn’t got a clue yet’ about No Deal Brexit planning” says EDA Independent Councillor

“At yesterday’s DCC Cabinet meeting, Leader John Hart answered three questions I had put in writing about estimated risks from Theresa May’s Brexit and No Deal, about help to businesses for No Deal, and emergency planning for disruption to fuel, food and medical supplies in Devon as a result of No Deal.

The questions and answers are attached. It will be seen that Cllr Hart did not answer any of the questions. When I asked when he would answer them, he said ‘We haven’t got a clue yet’ about what is going to happen, and that there would be a meeting next week, with just 10 weeks left to when the UK will crash out of the EU with No Deal if no change is made.

It can be seen that there are no protections in place to protect Devon from the effects of a No Deal. Economy Cabinet member Cllr Rufus Gilbert said ‘we can’t plan for a hypothetical’ but at the moment No Deal is the default scenario for 29th March.

This is why Devon and Dorset MPs like Ben Bradshaw, Sarah Wollaston and Oliver Letwin are absolutely right to try to block No Deal. I told Cabinet it was irresponsible of them not to support these moves.

Martin Shaw
Independent East Devon Alliance County Councillor for Seaton & Colyton”

dcc leader’s replies on no deal brexit 9.1.19

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10 Jan 2019

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Accountability, Asset Management Group, Conflict of interest, EDDC, EDDC HQ, Knowle/Honiton/Exmouth relocation

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The Knowle “Flog It” scandal rumbles on

Recent Freedom of Information request:

“Dear East Devon District Council,

The following is a request in accordance with the Freedom of Information Act 2000.

Recently an email from a Conservative counsellor was released into the public domain regarding the purchase of a “very large table in the members room” as a result of “an auction of council furniture, chattels, etc” to the benefit of members and EDDC staff.

The email went on to state “I have been told that I have been successful in my bid so the table along with the 8’ extension is heading back to Exmouth to sit in (address of councillor), Exmouth in its rightful Town (some may say)” and then stated arrangements for its removal date in order that it could be used for the Councillor’s Christmas dinner for 22 family members.

Subsequently on 21st December 2018, the Leader of the Council made a statement about the disposal of a range of items, including this table. He said the large table “attracted little professional interest with one valuer estimate of just £50”.

I would like to know:

If one valuer’s estimate was £50, what were the other estimates?

What are the names of the valuers who gave estimates for the table?

Does EDDC audit not require a range and record of estimates for the disposal of council assets, as well as a record of disposals?

EDDC, like other councils, should have a written policy and procedure for the disposal of assets such as used equipment, furniture and other plant, What is that policy and procedure?

Who was the Councillor that successfully bid for “the very large table in the members room”?

How much did the Councillor pay?

Was the ornate clock on the mantel piece (as shown on the cover of the Residents Magazine, December 2018) part of this disposal process?

If so, what was the valuation given?

What price was paid?

Who bought this clock?

The Leader of the Council referred to proceeds of this sale and other sales going to the Chairman’s Civic Fund.

How much money was raised from this sale of “items of sentimental interest or practical use”?

What are the “other sales” Councillor Thomas refers to?

How much money was raised from each of these “other sales”?

What is the total now of the Chairman’s Civic Fund?

Information about the Chairman’s Civic Fund is not easily accessible on the EDDC website; a word search on the site produces “no result”. Where can details of this fund and its administration be found?

Yours faithfully,”

https://www.whatdotheyknow.com/request/auction_of_council_furniture_cha

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10 Jan 2019

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Accountability, Audit (EDDC), Austerity cuts, Local Government Finance, NHS (local)

“NHS and councils full of financial problems, says watchdog”

“National Audit Office shocked by state of bodies including police and fire authorities.

The number of NHS and local government bodies with significant financial weaknesses in their ability to give value for money is unacceptably high and increasing, according to Whitehall’s spending watchdog.

The National Audit Office has examined the financial statements from nearly 937 local health authorities, councils, police and local fire bodies which are responsible for about £154bn of net revenue spending every year.

Auditors conclude in a report published on Wednesday that the number of local bodies with significant weaknesses increased from 170 (18%) in 2015-16 to 208 (22%) in 2017-18.

It follows the publication of an International Monetary Fund report in October which found that the UK’s public finances were among the weakest in the world after the 2008 financial crash.

Sir Amyas Morse, the head of the NAO, said he was shocked by the persistent high level of qualified audit reports at local public bodies.

“A qualification is a judgment that something is seriously wrong, but despite these continued warnings, the number of bodies receiving qualifications is trending upwards,” he said.

“Let us hear no cries of: ‘Where were the auditors?’ when things go wrong. The answer will be: ‘They did the job, but you weren’t listening.’

“This is not good enough. Local bodies need to address their weaknesses, and departments across government should ensure they are challenging local bodies to demonstrate how they are responding.”

Each year, local auditors give an opinion on whether local public bodies have produced financial statements which comply with reporting requirements and are error-free, and conclude whether local public bodies have arrangements to manage their business and finances.

Wednesday’s report examined accounts from 495 local authorities, local police and local fire bodies in England; and 442 local local NHS bodies in England, which include clinical commissioning groups, NHS trusts and NHS foundation trusts.

In the NHS, the number receiving qualified accounts rose from 130 (29%) to 168 (38%) across the same period. The number of local government bodies receiving qualified conclusions was 40 (8%) in 2015-16, but 18% of single-tier local authorities and county councils received a qualification in 2017-18.

Meg Hillier, the chair of parliament’s public accounts committee, said: “It is deeply concerning that local auditors are raising increasing numbers of concerns about local bodies’ arrangements to secure value for money, but these are often not being listened to and there is no consequence for the local bodies themselves.

“With ever-stretched public services, citizens deserve to know that there are effective arrangements in place to make sure they are getting value for money.

“Local auditors should be using the full range of their powers and local bodies should be acting on their findings transparently, with departments holding them to account.”

https://www.theguardian.com/society/2019/jan/10/nhs-and-councils-full-of-financial-problems-says-watchdog

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10 Jan 2019

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Accountability, Austerity cuts, Inequality, Poverty

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“MPs want hunger minister role introduced”

This is a cross-party group of MPs, not just opposition MPs. Truly shameful. But it seems only Brexit can enrage the general population these terrible days.

“A group of MPs wants the government to introduce a Minister for Hunger to respond to a growth in food insecurity in the UK – especially among children.

The Environmental Audit Committee highlighted 2017 Unicef figures showing 19% of children under 15 in the UK live with adults who struggle to buy food.

It says ministers have failed to recognise and respond to the problem.
The government says the number of children living in workless households is at a record low.

But MPs say the number of people without reliable access to affordable, nutritious food – or food insecure – is “significant and growing”, with the unemployed, sick or those with children most likely to be affected.
The committee wants to see the appointment of a new minister with “responsibility and accountability for combating hunger and food insecurity within the UK”.

The job would involve exploring the scale, causes and impact of hunger, food insecurity and malnutrition and implementing strategies to improve the situation. …”

https://www.bbc.co.uk/news/education-46810707