Plymouth freeport could ‘suck business’ from local area

Plymouth’s new freeport is “excellent for the city” but could have a detrimental impact on the local area, an expert has said.

(Freeports are not a new concept – Drake’s Island in Plymouth was made a freeport in the year 1393.)

Custom posts on the A38? – Owl

BBC News www.bbc.co.uk 

Plymouth

Plymouth is one of eight new freeports being created across England

The city successfully bid for one of eight new freeports being created across England.

The government hopes they will boost the economy in those areas.

A freeport expert said the concern is that they “suck business into the freeport area which is not necessarily good for the rest of the local region”.

Prof Catherine Barnard has written a report on freeports for the think tank UK in a Changing Europe, and said it was “very good news for Plymouth” in terms of attracting business, enterprise and creating jobs.

However she warned that evidence from abroad shows that surrounding areas “may suffer”.

“Freeports operate a bit like a big vacuum cleaner and they suck in business from the surrounding area,” she said.

In her report, she argues that if lowering the level of tariffs or regulation is justifiable, “they should be lowered for the whole country”.

“The main impact of freeports – and any associated reductions in regulation – is therefore likely to be to relocated rather than create economic activity and jobs,” the report adds.

Plymouth City Council made the successful bid with the claim that freeport status would create 9,000 new jobs over the next 10 years.

“I was actually surprised at some of the job numbers that were stated by other freeport bids and I was worried that we actually came in a bit low,” said Richard May, head of marine investment at Plymouth City Council.

“I think that within the zone itself, there’s actually a good chunk of that 9,000, but it’s the surrounding area that will also get a benefit,” he added.

What are freeports?

  • Freeports are usually located around shipping ports, or airports.
  • Goods that arrive into freeports from abroad aren’t subject to the tax charges, called tariffs, that are normally paid to the government.
  • These taxes are only paid if the goods leave the freeport and are moved elsewhere in the UK.
  • Otherwise, they are sent overseas without the charges being paid.
  • The government says the new freeports, which they hope will regenerate deprived areas, will begin operations from late 2021.

Is Cllr Stuart Hughes “asleep at the wheel”?

He is certainly very active in Sidmouth spending money on cliff surveys, we know he makes a good DJ/cabaret act, but what about his day job as Devon County Council Cabinet Member – Highways Management?

Remember the Department of Transport instructing local councils to go ahead with planned maintenance last May during the lockdown to clear a backlog of road repairs?  

Questions raised over potholes and drainage underspend

Daniel Clark www.devonlive.com

Devon County Council is forecasting a £3.7m underspend against its target budget for 2020/21 – but concerns have been raised over lack of spending on potholes and drainage.

The council’s cabinet on Wednesday morning heard that the financial position had improved from the month 8 position of a £1.9m overspend to a £3.7m underspend at the end of month 10.

But councillors heard that the level of uncertainty and pressures being faced by the public sector this year was unprecedented and continues to evolve, and while the projected underspend is welcome, there remain significant far reaching risks associated with the impact of the pandemic.

And questions were raised by opposition members that the highways maintenance budget were forecasting an underspend of £500,000, and that drainage could be underspent by up to £2.6m.

Cllr Alan Connett, leader of the Liberal Democrat group, said: “Residents are saying why during the lockdowns hasn’t more been done to fix the problems on the roads, so will we carry forward that budget to get a real march on fixing the problems that we know exist.

“They’ve taken eight months and the best weather to spend half the available revenue funding, and have left the other half to spend in four months and the worst weather when this type of work is the most challenging.”

A car in a 'water lake' at Marsh Barton in 2021

A car in a ‘water lake’ at Marsh Barton in 2021 (Image: Alan Connett)

Cllr Alistair Dewhirst added: “If residents knew we were underspending, they would have been horrified. It would have been good if works done on the highways in the last year when traffic was down, so don’t understand why we are down on that.”

But Meg Booth, chief officer for highways, infrastructure, development and waste, said that while there has a £500,000 underspend on drainage works, they had been overspending on pothole maintenance against the budget, and that the change in forecast is primarily attributable to confirmation that patches greater than 1m squared, and that the underspend in the capital budget was around the more complex infrastructure projects.

The budget forecast see children’s services forecasting an overspend of £2.2m, but this figure does not include the projected deficit of £30.1m on Special Education Needs and Disabilities, and when combined with the 2019/20 deficit, the total figure is now £49.8m, but the meeting heard the service is currently developing a recovery plan for the overall DSG deficit.

Mental health is also forecasting an overspend of £962,000, with the report saying that pressures continue to be experienced from higher client numbers within community-based settings, and Cllr Rob Hannaford, leader of the Labour group, added: “I fear that this will be the tip of the iceberg and there will be a mental health long covid repercussions that we will have to deal with, so we need substantial investment in the area.”

Mary Davis, county treasurer, in report, added: “The level of uncertainty and pressures being faced by the public sector this year are unprecedented and continue to evolve. The projected underspend is welcomed but there remain significant far reaching risks associated with the impact of the pandemic, which could be financially destabilising as well as the ongoing pressures being experienced within the DSG.

“The funding issued to support local authorities in responding to the pandemic is significant but the ever-changing landscape we are faced with continues to present service delivery challenges and financial pressures.”

The cabinet agreed to note the budget monitoring forecast position and that the confirmed additional funding Devon County Council is expecting to receive from the Government directly this financial year currently stands at £91m.

Local Plan Consultation – should we see “running totals”?

From a correspondent

I see that EDDC are announcing ‘running totals’ regarding Local Plan consultation responses, three weeks before the consultation is over.   That can’t be right.    I’ve never seen that before.

I understand the desire to get people to respond to the consultation ( is everyone tired of these things, I wonder, and responses are not coming in?  ).   It is also a very lengthy document – not badly written but turgid, and therefore off-putting.    But I think announcing the score halfway through is very unusual.  We don’t want to break the usual conventions of a Local Plan before we even start:  that’s what went wrong last time!

It is possible that an inspector might declare the consultation invalid if the results are declared halfway through.

I’m probably being unnecessarily thin-skinned.   And it is very likely that I am getting too old…

Remember the glory days of EDDC’s finest Tory Administration?

If Mark Williams needs a reminder about what a dysfunctional local authority really looks like, he need look no further than this gem from the glory days of EDDC’s finest Tory administration – when, we presume, he felt more comfortable…

[From a comment posted today – Owl]

Government beats “Purdah” to use public funds for “Beacon of Hope” video

The strapline reads: “Extraordinary. Unexpected. Fantastic. A Beacon of Hope: The UK Vaccine Story. Coming soon.”

As Owl expected this is an example of the “Dick Barton” Gambit: “with one bound they are free!”. Or are they?

Labour condemns taxpayer funding of jab film that could boost local Tory votes

Heather Stewart http://www.theguardian.com 

Labour has condemned the government for using taxpayers’ money to produce a documentary about the vaccine rollout entitled “A Beacon of Hope”, as party strategists fear the Tories will benefit from a “vaccine bounce” in May’s local elections.

Downing Street tweeted a short video on Wednesday, featuring clips of interviews with Chris Whitty and Jonathan Van-Tam, as well as Boris Johnson and Matt Hancock.

The strapline read: “Extraordinary. Unexpected. Fantastic. A Beacon of Hope: The UK Vaccine Story. Coming soon.”

With a bumper set of elections due to be held on 6 May, Labour suspects the government of trying to turn the feelgood factor from the vaccination programme and the lifting of lockdown restrictions to its political advantage.

“The government must come clean about how much taxpayers’ money was spent making this ‘documentary’ and for what purpose,” the deputy Labour leader, Angela Rayner, said.

“Sorry for the spoiler, but we already know the plot twist will be the prime minister choosing to cut the pay of the same nurses delivering the vaccine to the British people, while handing out billions in contracts to Conservative party donors and cronies.”

A No 10 source conceded that the film was taxpayer-funded, but stressed that it was made in-house, as a thank you to those involved in the successful programme, which has seen 22.8m people receive their first dose.

“Purdah” rules preclude the government from using official resources to produce party political material during pre-election periods. The government has not yet announced when that period will begin in relation to the local elections, but it is expected to be later this month or in early April.

The row about the glossy video came as Keir Starmer prepares to launch Labour’s campaign for May’s elections, using the government’s plan for a 1% NHS pay rise as a political dividing line.

The SNP is hoping to secure a pro-independence majority at Holyrood in the 6 May elections, while all 60 seats in the Welsh Senedd are up for grabs, as well as a string of metro mayoralties and local councils in England.

Starmer will launch Labour’s campaign at a virtual event on Thursday where he will speak alongside the new Scottish Labour leader, Anas Sarwar, the Welsh first minister, Mark Drakeford, and other senior party figures.

His team believe the government’s recommendation that only a 1% pay increase for NHS workers in England is affordable is a damaging misreading of the public mood in the wake of the pandemic.

Neil Parish writes about the budget – make no reference to Axminster or Seaton

He says: “I will be working alongside our local authorities to ensure every town and community across Tiverton and Honiton gets their fair share of funding.”

Neil Parish www.devonlive.com

NEIL PARISH IS THE CONSERVATIVE MP FOR TIVERTON AND HONITON

On Tuesday, I spoke in the Budget debate. Support for jobs and livelihoods was front and centre of the Chancellor’s statement – and rightly so.

The expansion of the self-employed income support scheme was particularly welcome news – providing aid to an additional 600,000 people who were newly self-employed last year. From self-employed barbers, to driving instructors and tutors, this grant money is a lifeline. I had written to the Chancellor to ask for the inclusion of those excluded last year, and this money goes some way to doing just that.

Businesses too are set to receive additional relief funding. Restart Grants of up to £18,000 are being made available, alongside an extension of the business rates holiday and the reduced rate of VAT. Alcohol and fuel duty has also been frozen for a second year in a row. Cutting these taxes and providing cash boosts will help Devon’s many tourism and hospitality businesses, including hotels, pubs, and wedding venues, to recover.

The Chancellor is also right to extend the Universal Credit uplift for a further six months. While millions of jobs have been protected, record numbers of people have had to rely on social security to get by. Universal Credit has been critical for countering the financial hardships experienced during the pandemic and it is right we continue to bolster this support.

As we build back better from coronavirus, I also want to see further innovation in our economy to create a “Green Industrial Revolution”. I welcome the announcement of the new ‘super-deduction’, rewarding businesses for investing in greener, more efficient machinery. But I also want to see it apply to new fishing boats, reducing the cost of restoring our fleets, creating jobs in this country and making fishing greener and safer for our fishers in the South West.

The Green Homes Grant is another fantastic example of how the Government can spur a green recovery, delivering subsidies for energy-saving home improvements. However, doubt hangs over the scheme. As I pointed out this week, Treasury ministers would be wise to extend and expand this support as we search for an investment-led, carbon-slashing recovery.

And as people strive to return to normality this Spring, further investment is needed in our communities. “Levelling up Britain”, as the Prime Minister has said, is key to building a fairer economy. That’s why I am delighted £4.8 billion has just been committed for the “Levelling Up Fund”- delivering investment for improvements to transport, town centres and cultural and heritage sites. Such funding will be vital for strengthening Devon’s recovery efforts and building a resilient local economy for the future.

The Chancellor and his team have worked tirelessly, in tough circumstances, to ensure people have access to financial help, whilst encouraging investment and growth in our economy. In the coming months, I will be working alongside our local authorities to ensure every town and community across Tiverton and Honiton gets their fair share of funding.

Covid has exposed dire position of England’s local councils

The pandemic has a habit of bringing hidden social crises into the open. Now it reveals the precarious position of local government, the provider of vital services from care homes to public health and bin collection, which has helped keep the show on the road in the UK’s biggest national emergency since the second world war.

Patrick Butler www.theguardian.com 

The National Audit Office (NAO) account of the near implosion of England’s local councils during Covid is sobering: only by the government’s swift, if grudging, injection of billions of pounds of emergency cash into council coffers over recent months did ministers avert what the auditors call “system-wide financial failure”.

The watchdog rightly praises ministers for this: the consequences of scores of local authorities having to declare bankruptcy in the middle of lockdown are frightening. But it makes two other points: first, that 10 years of austerity made municipal finances structurally fragile; and second, that councils’ budget crisis isn’t over.

It makes clear successive Tory governments not only dismantled the town hall roof but failed to fix it by the time hurricane Covid blew in. Council spending was cut by a third, rising demand for social care was ignored and council budgets made reliant on the whims of local income, whether council tax or car parking charges.

Grand, longstanding government plans to reform local government and social care funding failed to materialise. For years, councils patched up their threadbare budgets by using up financial reserves and cutting frontline services. The more ambitious borrowed billions to spend on risky office and retail investments.

So when Covid arrived, council spending rocketed, income crashed and many found they had little in the way of rainy-day cash reserves. As the NAO puts it: “Funding reductions … means that authorities’ finances were potentially more vulnerable to the impact of the pandemic that they would have been otherwise.”

Only one council – Croydon – went bust this financial year. Yet at least seven more have had or asked for government bailouts to head off insolvency. When the NAO surveyed councils in December, it assessed that 25 were at acute or high risk of financial failure, and a further 92 at medium risk of insolvency.

One bailout loan recipient, Luton, was reliant on a £33m-a-year dividend from its ownership of Luton airport to pay for its core services. When Covid brought air travel to an abrupt halt, so the council’s finances collapsed. In July it pushed through £17m of service cuts to stay afloat. Even that, it seems, was not quite enough.

The government has encouraged councils to quietly come to it for help, rather than unilaterally declare insolvency. Wary perhaps of the alarming optics of a long line of council leaders queueing up for rescue funds, it refuses to say how many councils have approached it for emergency bailouts.

The NAO makes it clear the future is uncertain. Many councils have little confidence in the robustness of the 2021-22 budgets they have just voted through. Most expect to make more cuts – not least because the government has failed to fully compensate them for Covid spending – and to endure more years of financial uncertainty.

The NAO urges the government to draw up a long-term plan for councils to help them recover from the “financial scarring” caused by the pandemic. Until it does so, local authorities – and the services they provide – face more years of uncertainty and agonising cuts decisions.

Swingeing cuts on cards as councils in England face funding crisis, watchdog warns

Residents face years more swingeing cuts to local services, from social care to libraries, bin collections and bus routes, as at least 25 councils teeter on the brink of bankruptcy, the public spending watchdog has warned.

Patrick Butler www.theguardian.com 

According to the National Audit Office, the vast majority of English councils (94%) expect to cut spending next year to meet legal duties to balance their budgets. The “scarring” of council balance sheets since the coronavirus pandemic began has been so fierce that half of town halls do not expect their finances to recover until at least the middle of the decade.

The watchdog said a decade of austerity for local government, which has reduced councils’ spending power by a third at a time when demand for services has soared, had left local authorities more vulnerable to the impact of the pandemic than they otherwise would have been.

Social care services for older and disabled adults are likely to be in line for cuts from April, along with special educational needs and homelessness spending, the NAO reported. Libraries, theatres and community centres face closure, bins would be collected less frequently, and subsidies propping up bus routes will shrink.

The warning of continued cuts to local services came as many councils prepare to increase council tax bills by up to 5% from April, and despite claims from ministers that austerity is over. The NAO urged ministers to draw up a programme to stabilise councils’ battered finances in the long term.

“Authorities’ finances have been scarred and won’t simply bounce back quickly,” said Gareth Davies, the head of the NAO. “Government needs a plan to help the sector recover from the pandemic and also to address the longstanding need for financial reform in the sector.”

The chair of the Commons public accounts committee, Meg Hillier MP, warned that local councils were “not out of the woods” despite billions of pounds in emergency funding in recent months.

She said: “Central government support has provided an important lifeline to keep local authorities’ heads above water. But the last year has taken its toll. Local authorities were already over-stretched and now, with reserves depleted, many will have to slash service budgets to balance their books.”

Councils have spent an estimated extra £6.9bn this financial year on Covid-related services, said the NAO. Authorities have seen costs rise as a result of social distancing and the need for personal protective equipment, especially in adult social care, while taking on extra responsibilities to house rough sleepers, support those shielding at home and help with testing, tracing and control of outbreaks.

In addition, they incurred £2.9bn losses from unpaid council tax and business rates, while lockdowns led to income losses of £695m from car parking fees, and £554m from leisure centres, theatres and museums.

Ministers have provided £9.1bn in emergency help but the resulting £600m funding gap has left a third of councils with significant holes in their budgets. This has led to authorities accusing ministers of breaking promises made early in the pandemic to “do whatever is necessary” to support councils.

The NAO said that while the government’s extra Covid funding had “averted system-wide financial failure”, the financial position of councils remained a concern, with many using increasingly depleted reserves and service cuts to shore up budgets. “The outlook for next year is uncertain,” the NAO concluded.

Just one council – Croydon – declared itself insolvent in the past year, but five others – Wirral, Luton, Eastbourne, Bexley and Peterborough – have between them sought and received £109m in government bailout loans to keep them afloat. Ministers approved a £120m emergency loan to Croydon this week.

Both Slough and Nottingham have sought £10m and £30m respectively in bailout cash from the government, and are awaiting decisions. However, the government has refused to say how many other councils have approached it for emergency loans to avoid section 114 insolvency notices.

James Jamieson, chairman of the Local Government Association, said: “We continue to call on government to meet – in full – all cost pressures and income losses incurred by councils as a result of the pandemic. Public finances are undoubtedly under huge strain but investment in our local services will be vital for our national economic and social recovery.”

Steve Reed MP, Labour’s shadow communities and local government secretary, said: “The Conservatives cut council funding by 60% over the past decade so town halls were already on the brink of financial disaster even before the pandemic. Now the government is forcing local authorities to hike up council tax so hard-pressed families are left to pay the price of the Conservatives’ broken promises.”

A spokesperson for the Ministry for Housing, Communities and Local Government said: “As the NAO acknowledges, the government acted swiftly and flexibly to ensure councils continued to deliver vital services throughout the pandemic. Councils continue to play a critical role and we have committed over £35bn to help them support communities and local businesses during this time.”

Small scale housing and jobs top East Devon residents’ wish list

Small scale developments infilling current towns and villages, more home working, support for entrepreneurs and jobs in town centres are among residents’ top priorities.

This is according to the latest answers in a consultation on the New Local Plan, which finishes on Monday (March 15).

[Below this article Owl posts a summary list of the questions and link to the EDDC web site. Closing date for submissions is 15 March (Monday). This Council is listening to you, don’t waste the opportunity to have your say. Remember that two thirds of the District lie in two AONBs which severely constrains where new development can take place.]

Daniel Wilkins, Exmouth Journal

East Devon District Council (EDDC) is urgently appealing to residents to share their views on new developments and where they think new jobs should be located and whit those jobs should be.

So far, hundreds of people have had their say In the consultation although there have been few comments from young people.

The Council is keen to hear from all groups in the community as the new Local Plan will affect everyone who lives, works and plays in the district.

This week the authority has revealed a number of randomly selected suggestions from residents who have shared their views on jobs and homes.

When asked about sties for housing developments: 25 per cent favoured one in 10 houses being built on small sites.

A further 16 per cent of respondents thought up to a quarter of new houses should be built on small sites and 29 per cent favoured options of more than a quarter of new houses being on small sites.

So far residents have said that it is important not to swamp smatter communities, especially without providing the necessary infrastructure

Other suggestions included building on small sites near towns and villages on unsightly unused brownfield sites – In the hope it would be better for town centre regeneration, with less car use. When asked where developments should go the majority of people favoured infilling in towns and larger villages over building new communities.

As part of the consultation residents have been asked how many new homes East Devon should plan for.

Overall, 29 per cent of respondents favoured an annual average of 922 this is a Government ‘minimum’ level. A total of 31 per cent favoured higher levels of growth. Residents also suggested that affordable housing should be ring-fenced for local families and not be allowed as second homes and there should be a levy/tax on existing second homes and holiday lets so the demand for these is reduced.

When it comes to jobs, residents have also been asked their thoughts on where they think future jobs should be located. The highest-ranking answer was for ‘more home working’. In order, thereafter, were ‘more jobs in towns’, jobs ‘close to Exeter – excluding the West End’ more jobs ‘at the West End’ and at the bottom of the list was jobs in ‘villages and countryside’.

Another hot topic of discussion has been the support for differing job sectors. The highest-ranking answer was for ‘more local entrepreneurs’.

In order, thereafter, were more jobs in traditional sectors, more high-tech jobs and lowest of the options was attracting inward Investment by large firms.

Among the views shared by residents were that employment creation across the whole of East Devon was important but different areas have different needs so schemes needed to be planned for sensitively.

Other views included support for home working now Cov id-19 had shown it was possible for a large proportion of people to do so and should be actively encouraged. Residents said that home working encouraged local community development as people see each other when going for their daily walk.

Cllr Dan Ledger the EDDC Portfolio Holder for Strategic Planning said: “The current Issues and options consultation asks how EDDC should look to achieve this. Through your feedback. we will try to gain a consensus on how the district wish to see employment development come forward, where job creation should be focussed and how we should perceive the future working enviromnents for all of our residents.”

The Questions – Have your say

You do not have to answer all the questions but this summary list is intended to get you started.

(Some questions that allow more detailed comment on a previous topic have been omitted from this list)

Have your say in the New Local Plan consultation here: www.eastdevon.gov.uk/newlocalplan

Q 1 Are the objectives right

Q 3 How to make best use of Neighbourhood Plans

Q 4 Planning for Health and Wellbeing

Q 5, 6 & 7 Climate emergency and related topics

Q 8 How many new homes each year

Q 9 Sites for small scale developments

Q 10 Planning for all stages of life

Q 12 Where to create jobs

Q 13 What emphasis on which job sectors

Q 15 What policies for future Town centre use

Q 17 How important to design beautiful spaces and buildings

Q 19 Importance of conserving and enhancing Heritage Assets

Q 20 Development in protected landscapes

Q 21 Gaining biodiversity

Q 23 Promoting access to walking and cycling facilities

Q 25 Score the importance of facilities from post offices to pubs, places of worship, and bus services

Q 27 Should we retain and refine the existing settlement hierarchy

Q 28 How to distribute new housing development

Q 29 Future options on the type and location of development

Q 30 Should we create a Development Corporation

Q 31 Should we start planning beyond 2040

Q 32 Have we missed anything

“Unimaginable” cost of Test & Trace failed to deliver central promise of averting another lockdown

“British taxpayers cannot be treated by Government like an ATM machine. We need to see a clear plan and costs better controlled.” Meg Hillier

Committees – UK Parliament committees.parliament.uk 

In May last year NHS Test and Trace (NHST&T) was set up with a budget of £22 billion. Since then it has been allocated £15 billion more: totalling £37 billion over two years.

The Department of Health & Social Care (DHSC) justified the scale of investment, in part, on the basis that an effective test and trace system would help avoid a second national lockdown – but since its creation we have had two more lockdowns.

In its report Public Accounts Committee says that while NHST&T clearly had to be set up and staffed at incredible speed, it must now “wean itself off its persistent reliance on consultants”; there is still no clear evidence of NHST&T’s overall effectiveness; and it’s not clear whether its contribution to reducing infection levels – as opposed to the other measures introduced to tackle the pandemic – can justify its “unimaginable” costs.

The scale of NHST&T’s activities is striking, particularly given its short life. Between May 2020 and January 2021, daily UK testing capacity for COVID-19 increased from around 100,000 to over 800,000 tests. NHST&T had also contacted over 2.5 million people testing positive for COVID-19 in England and advised more than 4.5 million of their associated contacts to self-isolate. 

But the percentage of total laboratory testing capacity used in November and December 2020 remained under 65%, and even with the spare capacity, NHST&T has never met the target to turn around all tests in face-to-face settings in 24 hours. Low utilisation rates – well below the target of 50% – persisted into October last year.  

A major focus for NHST&T in early 2021 was the mass roll-out of rapid testing in different community settings, but there have been particular setbacks for the roll-out to schools, after NHST&T had significantly underestimated the increase in demand for testing when schools and universities returned last September.

Meg Hillier MP, Chair of the Public Accounts Committee, said:

“The £23 billion test and trace has cost us so far is about the annual budget of the Department for Transport. Test and Trace still continues to pay for consultants at £1000 a day.

Yet despite the unimaginable resources thrown at this project Test and Trace cannot point to a measurable difference to the progress of the pandemic, and the promise on which this huge expense was justified – avoiding another lockdown – has been broken, twice.

DHSC and NHST&T must rapidly turn around these fortunes and begin to demonstrate the worth and value of this staggering investment of taxpayers’ money. Not only is it essential it delivers an effective system as pupils return to school and more people return to their workplace, but for the £billions spent we need to see a top class legacy system. British taxpayers cannot be treated by Government like an ATM machine. We need to see a clear plan and costs better controlled.”

Department of Health did £90,000,000 deal with firm listed in Chinese hotel room

The Department of Health (DHSC) signed two PPE deals worth more than £90 million with a state-backed Chinese firm listed at a hotel room in Beijing, newly-published documents show.

Josh Layton metro.co.uk

The heavily-redacted contracts have emerged as the Government is accused of signing off ‘secretive big money deals’ with foreign firms despite British companies having tendered their services.

Matt Hancock’s department spent an estimated £9.5 billion on vital PPE equipment during the first wave as it tried to rush supplies to the NHS supply chain, according to Tussell market intelligence.

The deals struck with Beijing Union Glory Investment Co. Ltd feature in documents which were released last week.

The largest amount was £69.9 million, paid for surgical theatre gowns in a contract that began in May 2020. Under the terms, 70% of the contract value was to be paid by transfer through China Everbright Bank within three working days of the deal being struck.

The company’s address is listed as Room 9401A, Guobin Hotel, No9 Fuwai Street, Xicheng District. The closest hotel is the opulent Presidential Beijing, also known as the Guobin, which lies in the business district, although the postcode is a few digits different.

The grand hotel has 486 bedrooms, including the Royal, Presidential and State suites, which offer a 24-hour butler service, and three executive floors which boast ‘bespoke facilities, business tools and complimentary services’.

The suites are billed as offering ‘an exclusive, discreet environment in which to fuse business or leisure with unsurpassed pleasure’, while guests can also make use of a grand ballroom.

A source familiar with the district said the address provided by Beijing Union Glory is the same as the location given on the hotel’s website.

The Presidential did not reply to a request for comment.  

Another contract for gowns, which listed the same address, was signed off for £26.4 million the previous month.

Again, the terms included a 70% down-payment, this time within two working days. In this instance, the buyer was the British Embassy in Beijing on behalf of the UK Government.

Both documents are heavily redacted with quantities and unit prices blacked out, making it impossible to ascertain if the orders reflected value for money for the taxpayer. Although the award notices have been included on the Government’s online register since October, the corresponding documents were only added last week.

MP Matt Western said British companies which repurposed their operations to respond to the pandemic have been dealt a ‘kick in the teeth’ after being overlooked in favour of contractors mainly based in China and Turkey.

Mr Western has taken up the case of companies which say they were overlooked for PPE contracts despite spending hundreds of thousands of pounds answering a ‘call to arms’ during the first wave.

Mr Western, who represents Warwick and Leamington, said: ‘I have called for the firms in my constituency – and others across the UK that suffered financially after being overlooked for PPE contracts – to be reimbursed by the Government and prioritised for any future NHS contracts. 

‘The secretive big money deals reached with foreign firms like Beijing Union Glory in China is a kick in the teeth for them.

‘Firms like Contechs in my constituency have taken a big hit as a result of this betrayal after the Government’s “call to arms” in April.

‘They invested heavily to develop and manufacture PPE here in the UK, expanding manufacturing space and sourcing capital equipment only to be told at the last minute they would not be successful. 

‘It is infuriating to hear about the DHSC signing off contracts with Conservative Party donors, companies with no prior experience and chums of the Secretary of State – with the equipment purchased sometimes unusable.

‘And now profiteering “middle-men” dealing with Turkish and Chinese companies are granted contracts rather than the Government sourcing directly from our UK companies with UK employees making high quality products at similar or lower cost.’

Allegations of cronyism have repeatedly been denied by Government ministers.

A fast-track lane without the usual procurement and transparency requirements was used in the first wave in an effort to secure supplies for the health service, with the department saying it needed to act in ‘extreme urgency’ during ‘unprecedented’ events.

The Good Law Project (GLP) has been calling on the Department of Health to disclose further information relating to the deals.

The non-profit organisation secured a victory in the High Court last month when the Health Secretary was ruled to have acted unlawfully by not releasing Covid contracts within a 30-day deadline.

The DHSC maintains that its protocols specify that all PPE is quality assured, meets high standards and is only distributed if it meets strict standards in line with the Government’s technical specifications.

The department holds that it has ‘taken advantage of every avenue to get PPE into the country including working with companies that have established productions and delivery routes outside of their normal business’.

It also says that ‘proper due diligence is carried out for all Government contracts and we take these checks extremely seriously’, with ‘clear Treasury guidance to ensure value for money was achieved’.

Offers not offering value for money were rejected, according to the DHSC.

The department says it recognises ‘the importance of transparency in the award of public contracts and will continue to publish information about contracts awarded as soon as possible’.

A DHSC spokesperson said: ‘We have been working tirelessly to deliver PPE to the frontline.

‘Over 8.8billion items have been delivered so far and almost 32billion items have been ordered to provide a continuous supply, which will meet the future needs of health and social care staff.

‘Proper due diligence is carried out for all government contracts and we take these checks extremely seriously.

‘All offers were prioritised based on volume, price, meeting clinical standards and the time it will take from an offer being accepted by DHSC to the supplier delivering those items.’

On a website for the firm’s parent company, China National Complete Engineering Corporation, Union Glory says it acts with ‘creation, honesty, efficiency and co-prosperity’.

Political donations escape ‘money laundering’ checks, MPs told

Opening a bank account or giving to charity requires tougher checks than donating to a political party, an investigation into “dark money” has heard.

www.independent.co.uk

Charities must prove the cash they receive has not been laundered – yet parties receiving billions of pounds escape any such protections, a Commons committee was told.

“That seems to me to be a fairly big anomaly in the ability to donate money into the political system,” he told the public administration committee.

“There’s absolutely no reason why political parties shouldn’t be able to adopt those customer requirements, because we’ve all had to deal with these when we’ve opened a bank account, when we we’ve done something online.”

“And I see no reason why all parties shouldn’t have to apply those money laundering regulations as well.”

I would like to be emailed about offers, events and updates from The Independent.

Dr Clark added: “People are going to be asked for identity to vote – yet no one’s really asking for identity for those who are donating money to political parties.”

The inquiry comes amid Conservative threats to overhaul – or abolish – the Electoral Commission which Amanda Milling, the Tory chairwoman, branded “not fit for purpose”.

The government has been accused of a revenge mission, after the watchdog punished Vote Leave for breaking electoral law during the Brexit referendum campaign.

Meanwhile, the prime minister was accused of giving the Kremlin the green light to meddle in UK politics, after dismissing many of the findings of the Russia report – after eventually releasing it.

But Dr Clark said the Commission’s powers needed to be strengthened, because – with fines capped at just £20,000 – campaigners “don’t see it as serious deterrent”.

“They can exploit loopholes in the law,” he warned, adding: “They will take a fine at the end of it, if they get found out.”

Dr Clark added: “The ISC [intelligence and security committee] Russia report pointed to Russian being able to do this.

“So the permissibility regime that we have is very much beyond its sell-by date. We really do need to be thinking about tightening up here.”

Professor Toby James, of the University of East Anglia, raised fears about the elections in May – postponed from last year – with decisions left to local authorities, amid the pandemic restrictions.

In Scotland, the Holyrood parliament enjoyed powers over day-to-day preparations, while in England and Wales “there is no central authority able to do that”.

“Is every polling station booked? Are they all in place?” he asked, adding: “We’ll see what happens in May.”

Covid outbreak and death confirmed among care home residents in Sidmouth

An extensive Covid-19 outbreak has been confirmed at an East Devon care home where residents and staff had already received their first vaccination.

Anita Merritt www.devonlive.com

It is alleged there were as many as 33 positive coronavirus cases in the space of three days recorded at Holmesley Care Home in Fortescue Road, Sidmouth.

Five residents are thought to have been admitted to hospital, and one of those sadly passed away yesterday.

The care home, which was reported to have had 42 residents living there in September 2020, has not confirmed how many Covid cases there have been, but has said one resident has died.

Residents had reportedly been due their second vaccination this weekend.

Yesterday Devon Live reported cases of coronavirus have quickly risen in an area of East Devon – primarily in the over-85s.

Infection rates in East Devon rose from a low of 33.5/100,000 – the lowest since the end of September – on Saturday, to 45.8/100,000 on Sunday, when cases dated March 2 were added to the data.

The rise is believed to be due to the outbreak in the Sidmouth care home, with the MSOA area reporting 34 cases in the seven day period between February 24 and March 2 – with 29 of them attributed to March 2 alone.

Care home director Will Neal said: “We can confirm that we currently have a high number of positive cases of coronavirus among residents in the home, and that one of our residents has now sadly passed away.

“For nearly 12 months the staff team have worked hard and kept the virus from entering our home. We are deeply saddened by this outbreak.

“Nearly all our residents and the team have received their first dose of the vaccine and were about to have their second dose, and we hope this may have helped prevent an even worse situation.

“We are working closely with Public Health England and Public Health Devon, and have a comprehensive package of measures in place to halt the spread and to ensure that our residents are receiving the care they need.

“We cannot speculate how the virus might have entered our home, but our clear priority right now is the care of our residents and staff and to do all we can to reduce risk of further cases.”

The outbreak is a stark reminder that being vaccinated doesn’t mean transmission will be stopped and that precautions must remain in place for seniors and care homes.

However, vaccines are said to still be effective because they prevent severe illness and death.

The report said: “We looked at infection prevention and control measures under the safe key question.

“We look at this in all care home inspections even if no concerns or risks have been identified. This is to provide assurance that the service can respond to coronavirus and other infection outbreaks effectively.

“We found care was taken to ensure people were safeguarded from the risk of infection. There was a team of housekeepers who took pride in their work. All areas of the home were regularly cleaned.

“There were sufficient stocks of personal protective equipment and staff took all precautions needed to keep people safe.”

A spokesman for Public Health Devon, said: “Public Health England South West and Devon County Council are working together to support staff and residents of Holmesley care home in Sidford following an outbreak of Covid-19 in residents. Sadly a resident has passed away.

“The home is currently closed to visitors.

“Residents and staff in the home have received their first dose vaccinations, which will be providing a level of protection for them.

“In addition, the home has a range of measures in place to respond to this sudden rise positive cases, and to prevent further transmission. There is no current evidence of wider community spread.”

Steve Brown, director of Public Health Devon, said: “This level of outbreak is unusual following the roll out of the vaccination programme, but it is a helpful reminder that we must all stay on our guard.

“While the vaccine roll out is going well and proving effective, we need to remember that no vaccination is ever 100 per cent effective.

“We are working with health colleagues to do everything we can to minimise the spread of the virus in Devon.

“It is important that we do all we can to protect the elderly and vulnerable in care homes, which is why we have issued extensive advice and guidelines to support them in managing suspected and confirmed cases of Covid-19.

“We all have a part to play in reducing the risk of infection and must continue to stay at home and only go outside for food, health reasons or work, but only if you cannot work from home.

“If you do have to leave the house, please stick to the rules – keep your social distance, wear a face covering when indoors in public spaces, and to wash your hands regularly.”

Holmesley Care Home received a focused, but not full inspection, by independent health and social care regulator the Care Quality Commission (CQC) in September 2020. It was rated good for being safe and well-led.

It was the first inspection of the service since it was newly registered in August 2019. People living in the home, staff and most relatives praised the provider and management team for the improvements they had made.

It was noted a visitors room had been set up with a Perspex screen to enable visitors to enter from the outside and sit and talk with their loved-ones safely. Inspectors were told the facility was widely appreciated by people in the home and their relatives.

A Correspondent takes a look at Mark Williams’ “Morale Report”

 From a correspondent.

You just have to dip into the detail of the Staff Morale Report prepared by Mark Williams to see how opinionated and selective it is. It also paints an idealised picture of “time past” completely at variance with all the comments made in the  torrent of recent posts.

First of all he uses the personal pronoun “I” throughout.

 “If I were to compare and contrast where we are with where we were I would summarise that this time last year the following factors were noticeable and important in terms of facilitating high morale and the ability of the organisation to cope with change/additional work:

1. Mutual respect between members and officers

2. A recognition by members that officers would always do their best and work hard with the resources that they were allocated to achieve the best possible results.

3. A sense of pride in the organisation and what it was seeking to achieve for the district.

The latest survey results suggest that these 3 factors are now less noticeable and that they have been replaced by a growing recognition of an inappropriate work environment; a sense of a ‘blame culture’ with officers increasingly fearful of doing their jobs and much less likely to ‘go the extra mile’ for the organisation”

 To support these conclusions he draws on a detailed comparison between a staff morale survey conducted last “summer” 2020 and another one conducted in Jan/Feb 2021 (Appendices 1 and 2 to his report)

Unfortunately these surveys aren’t directly comparable. They are not presented in the same way and clearly didn’t ask the same questions.

But should we really be surprised that staff report more strain and stress in January and February? This strain is quite general in society with people from all walks of life having to deal with homeschooling and Lockdown 3. 

Should we be surprised to find Housing, Streetscene and Planning to be the most stressed? 

Planning has certainly been working hard and effectively in providing excellent comments on the two government “mutant algorithm” consultations, getting out of GESP, preparing for the previously neglected new Local Plan Review and getting the LORP planning application before the planning committee in short order to meet the funding constraints. Pressure on Housing and Streetscene will obviously have increased under Covid.

In the February survey 329 members of staff filled in the questionnaire (67% of total staff) (which included the specific question: “I am subject to bullying at work” which didn’t seem to feature in the summer 2020).

What is interesting is that 327 answered this question and 83% replied never, 11% replied seldom and 6% sometimes. (No specification as to where the bullying might have come from, though in the small print elsewhere it looks like four individuals mention councillors ). This is recorded on page 26 of the reference. If you study  this page you will find that all the other questions get a much more negative response, and these are the sort of questions that concern management generally e.g. “Different groups at work demand things from me that are hard to combine.”

This is also very obvious from an examination of the free text comments on page 36, the vast majority concern management issues.

The past year will have been difficult for EDDC staff. They have had to deal with providing an essential service under Covid restrictions whilst serving a new administration naturally keen to make progress on a  very different set of priorities. As someone commented yesterday, it is Mark Williams’ duty to facilitate this change. In fomenting trouble by ignoring the management problems highlighted by his staff, concentrating instead on unsubstantiated claims of bullying against the cabinet, he is failing the staff he is supposed to support; council taxpayers who pay his salary and to do his duty.

Finally, it is worth drawing the attention of Mark Williams and all Councillors to the seven individuals who commented along the lines: “There is political infighting and Councillors disrespecting other Councillors, which is stressful.”

Covid cases spike in area of East Devon – care home the cause?

Cases of coronavirus have quickly risen in an area of East Devon – primarily in the over 85s.

Daniel Clark www.devonlive.com 

Infection rates in East Devon rose from a low of 33.5/100,000 – the lowest since the end of September – on Saturday, to 45.8/100,000 on Sunday, when cases dated March 2 were added to the data.

The rise is down to what appears to be an outbreak in a care home in the Sidbury, Offwell and Beer area, with the MSOA area reporting 34 cases in the seven day period between February 24 and March 2 – with 29 of them attributed to March 2.

Infection rates in the oldest age groups also rose at the same time – going from 187/100,000 on Saturday to 562/100,000 on Sunday in the over 90s, and from 118/100,000 to 380/100,000 in the 85-89s, with smaller rises also seen in the 80-84s and 75-79s. In the week up to March 2, there were no positive cases in East Devon for anyone under the age of 14.

Government MSOA map of infection rates for the Sidbury, Offwell and Beer area

Government MSOA map of infection rates for the Sidbury, Offwell and Beer area

As no area other than Sidbury, Offwell and Beer saw a rise in their figures when March 2 specimens were added, the rise in both infection rates and in the age range infection rates are likely linked.

A care home outbreak in the area the most likely explanation for the rise.

A spokesman for Public Health Devon said: “There is currently a rise in new cases in the Sidbury, Offwell and Beer area of East Devon, and the majority of them are linked to a single setting.

“We and Public Health England are working closely with that setting to ensure that all reasonable measures are in place and appropriate action is taken to ensure everyone’s ongoing safety, and to prevent spread of infections. Controls are in place and there is no current evidence of wider community spread.”

However, despite the spike in cases in East Devon, the district’s infection rate is still in the bottom third in England, sitting 207 th of the 315 local authority areas.

Across the rest of Devon, Exeter has the 279 th highest infection rate, Mid Devon 292 nd lowest, Torbay 298 th , Teignbridge 305 th , Torridge 309 th , West Devon 313 th , North Devon 314 th and South Hams 315 th and the lowest in England.

At an upper tier level, only the Isle of Wight and Cornwall have a lowest infection rate than Devon, with the 22.4/100,000 the lowest since the end of September.

In the week leading up to March 2 in Devon, only one person aged 65-69 tested positive for Covid-19, while there were 0 positive cases in the 5-9 age group.

Beach warning after more rusty pipework and other hazards appear

Beach-goers and swimmers have been warned after the sea exposed rusty old pipework and other dangerous hazards.

[At least it’s not a bomb – Owl]

Chloe Parkman www.devonlive.com 

Exmouth RNLI says the pipework could pose a significant risk to people using the East Devon beach.

In a statement on Twitter, a spokesperson for Exmouth Lifeboat said: ”Sea conditions have exposed some old structures that are a significant risk to water users off Exmouth and could cause serious injury/incapacity especially during high tides.

“The hazards are located about 80 yards west of Exmouth RNLI Lifeboat Station.

”Please avoid this area.”

Last month, Devon Live reported on a similar incident in which the weather and sea conditions exposed old pipework on the beach.

Following last month’s pipe exposure, Exmouth RNLI said the pipes could cause ‘serious injury’, especially during high tides.

They urged people to avoid the area.

Calls for district council leadership to ‘consider positions’ in heated dispute over staff bullying claims

No bullying is acceptable. It is a pity it has reared its head again in EDDC, hopefully it will now be dealt with by the new administration. Many will recall the attacks Claire Wright suffered and many others will remember being humiliated when making public statements to planning and council meetings with no right of reply. – Owl

Francesca Evans sidmouth.nub.news 

Leading members of East Devon District Council were asked to consider their positions this week, during a passionate discussion on claims made by council staff that they were “bullied at work”.

The three-hour debate followed a staff survey carried out in January and February of this year, which raised claims that new councillors and the new political leadership at East Devon was “seriously mistreating officers” and “unnecessarily micro-managing and causing extra workload”.

There were also concerns over increased staff absence due to depression, stress and anxiety during the latter months of the Covid-19 pandemic, and that six per cent of respondents said they were “sometimes bullied at work”.

The leader of the council, Cllr Paul Arnott, who represents Colyton, said he was “certain my Cabinet are innocent of any bullying”.

In a report on the survey results, East Devon’s chief executive Mark Williams said he had already written to councillors highlighting his concern about an “oppressive and menacing” online work environment that some officers had experienced from “certain councillors”.

He said the issues facing the council were “very serious”.

Giving the background to the survey, Mr Williams stated in his report that EDDC had traditionally been an organisation where staff morale had been high.

In January 2020 the council received Platinum Investors In People status, which was the highest level achievable, and a previous staff survey carried out in June 2020 said there was an “optimistic feeling” within the council at the end of the first lockdown.

The latest staff survey in January/February 2021 comes after a new political leadership took over EDDC.

Independents took control of the council following the election in May 2019, after 45 years of Conservative rule.

But the Independent Group, led by Cllr Ben Ingham, were then overthrown by a new Democratic Alliance in May 2020, led by Cllr Paul Arnott and made up of councillors from the East Devon Alliance, Liberal Democrats, Green Party and some independents.

Mr Williams – who himself admitted to feeling bullied at work during this week’s Scrutiny Committee meeting – made several references in his report to “new councillors/new political leadership” and “change in political culture”.

Speaking at this week’s meeting, Independent councillor Geoff Pook (Beer & Branscombe) said “the most upsetting and serious claims” from staff did stem from last year’s change in administration and he posed several questions to Cllr Arnott.

“Does the leader accept the outcome of the report and that 18 of our staff state that the new political leadership are seriously mistreating our officers, which is very stressful? This includes seven members who say they feel bullied, intimidated and are being harassed.

“Does the leader agree that this is totally unacceptable?

“Does the leader agree that, as leader, he is totally responsible for the deplorable actions of his administration?

“Does the leader agree that those responsible must consider their positions and, as leader, he should address this? And does the leader agree he holds ultimate responsibility for the actions and behaviour of his team and should perhaps consider his own position?”

‘No proof where problems are coming from’

In response, Cllr Arnott said he would offer a “blanket no” to all of Cllr Pook’s questions regarding the political leadership, adding that the phrasing ‘new councillors/new political leadership’ used in the report was “unfortunate”, as new councillors came from all political parties.

“There is no proof or indication from where problems are coming,” he added.

Cllr Arnott continued: “This has been one of the most challenging times for local government in our history and I could not be more proud of our staff and officers, which I have said repeatedly and publicly.”

He added that the leadership had taken concerns over the mental health of staff “extremely seriously”.

Cllr Arnott said that there had been issues within the council prior to the new administration, using his own experiences in Exmouth as an example.

“Exmouth has been toxic beyond belief for many years before my time,” he said.

“I came in and raised it through this very committee and we then set up the Exmouth Queen’s Drive Delivery Group, which I have chaired with patience and courtesy and removed the poison from that.

“I have protected officers and I have I think created a peace there where there was not a peace before, and involved the public. I would be astonished if any officers had any criticism of that whatsoever; it was a model of sorting out what had been previous problem.”

He continued: “There is another side to this coin and we need to understand the members’ perspective as well and I hope Scrutiny comes forward with a set of policies and engagements, and I would be very pleased to present my own evidence and those of my Cabinet.

“I am certain that they are innocent of any of these allegations of bullying, which are not identified in this report as being anything to do with councillors.”

New councillors are ‘across all political groups’

Independent East Devon Alliance councillor John Loudoun (Sidmouth Rural) also raised concerns over the use of the phrase ‘new councillors/new political leadership’ in the report, describing it as a “broad phrase” which conflates two sets of members.

He pointed out that 24 new councillors across all political groups joined the council after the May 2019 elections.

“We should all look at what we’re doing, the implications of what we’re doing and how we need to change. I hope each group leader will be honest, look at their group and say ‘can we do things better?’” he said.

Former council leader Ben Ingham (Woodbury & Lympstone), a former Independent who has joined the Conservative party since losing his position to Cllr Arnott, also called for the new leadership to consider their positions.

He said the feeling of optimism shown in the June 2020 survey had gone and had been replaced with stress and depression, with many staff continuing to work from home despite suffering from mental health issues.

“What an appalling situation for us to be in – six months of vindictive disorientation and poor leadership,” he commented.

“Bullying in the workplace is against the law. The Cabinet and leadership of this council have a lot to answer for and should consider their positions.”

Conservative councillor Ian Hall (Axminster) asked chief executive Mark Williams whether he felt bullying was still ongoing and whether he had ever felt personally bullied.

Mr Williams replied yes to both questions.

Cllr Hall went on to apologise if he had ever added to an officer’s workload during the pandemic, adding that if he was implicated in any harassment or bullying he would “stand aside because we cannot tolerate that sort of behaviour”.

Fellow Axminster councillor Andrew Moulding, who is leader of the Conservative group at East Devon, added: “The officers of this council have been exemplary over many years and are now being undermined by the current administration. This cannot continue and we must find a way of addressing the issue.”

What happens now?

After three hours of debate, the committee eventually agreed on four proposals put forward by Independent East Devon Alliance councillor Val Ranger (Newton Poppleford & Harpford). These were as follows:

1) To note the report and thank the chief executive.

2) To ask the chief executive to undertake a follow-up staff survey at a suitable future point.

3) Request the chief executive to discuss this survey data with the staff representatives and to feed back to portfolio holder for Council and Corporate Co-ordination the outcome and actions resulting from that engagement to form an action plan.

4) Recommend to the chief executive, members of the SMT and portfolio holder for Council and Co-ordination discuss this survey data and any other relevant information to identify what actions are necessary to address the four key points identified within the report:

– Workload, staff shortages, vacancies and management support for staff

– Home working and staff isolation

– Member conduct with staff

– Staff community cations

5) Ask the chief executive to update this committee in light of completion of the above four recommendations.

Cllr Ranger had initially proposed the phrase ‘member engagement’ be used instead of ‘member conduct’ under her fourth recommendation, but Mr Williams expressed concerns that this would come across as “tone deaf” to staff members who had been “exceptionally brave” in their responses to the survey, so it was agreed to change this.

Earlier in the meeting, Mr Williams warned councillors: “It doesn’t take a lot of time for a council to appear on the Secretary of State’s watch list as a council of interest.

“Traditionally it’s been councils that have got themselves into financial trouble but actually, if you look at the criteria the Secretary of State applies, financial trouble is one of them, dysfunctional relationships, poor corporate governance, and those types of matters particularly affecting the three statutory officers, is an area where the Secretary of State does show an interest.”

Planning applications validate by EDDC for week beginning 22 February

£1bn to ‘level up’ towns … but Tories already cut £2.4bn

It was supposed to redraw the economic map of Britain. But funding announced by Rishi Sunak last week for 45 struggling towns across England is worth less than half the amount cut from their local budgets under the Conservatives, according to an Observer analysis.

Richard Partington www.theguardian.com 

Using the budget to restart the government’s levelling-up agenda after dealing with the Covid pandemic, the chancellor announced £1bn of funding from the flagship “towns fund” for communities including Castleford, Rochdale and Wolverhampton.

However, analysis of local authority finances by the Observer reveals the 45 towns are located in council areas that have suffered budget cuts worth in excess of £2.4bn since the Tories came to power in 2010.

The assessment, based on figures from the Centre for Progressive Policy, show some of the councils have experienced deeper cuts in total service expenditure than most in the decade before the pandemic, with towns in northern England bearing the brunt.

According to the figures, Rochdale – which is set to receive £23.6m from the towns fund – spent almost £100m less, after taking account of inflation, in 2019-20 on local services than in 2009-10. Meanwhile neighbouring Bolton – due to get £22.9m from the pot – has suffered cuts worth £74m.

It comes after Sunak was accused last week of “pork barrel politics” given that 39 of the 45 towns are represented by Conservative MPs. His Richmond constituency also emerged among areas in the highest priority tier for support from the government’s levelling-up fund, a separate programme, while less prosperous neighbouring areas had been left out.

Council spending on services has still fallen dramatically in these places. Matthew Brown, the Labour leader of Preston city council, said the £20m the city is due to receive from the towns fund was helpful, but insufficient to patch up the fallout from years of cuts directed from Westminster.

“It’s been difficult to respond to Covid when your services are cut to the bone,” he said, adding that Preston’s budget has been cut by a third since 2010, forcing it to sell public assets and cut spending on community projects.

“Obviously it is welcome because places like Preston have been disinvested in for decades, so yes £20m for our city centre is welcome. But in the context of years of austerity and the neoliberal economics we’ve had for decades, I think we need a lot more than this,” he said.

The figures analysed by the Observer assess cuts to council service budgets – the funds for day-to-day spending on areas such as adult social care, road maintenance and bin collections. This differs from the aim of the towns fund, which provides a one-off boost for infrastructure investment.

The government said more was being spent on local areas than the towns fund alone, including £51bn for councils in 2021-22, £2.3bn more than this year, while all councils could bid for the £4.8bn levelling-up fund.

A spokesman for the communities department said the analysis was flawed and it had committed more than £35bn since the start of the pandemic to support councils. “It ignores all the other funding provided to councils and the fact that councils are responsible for managing their own spending,” he added.

However, experts said the stark contrast between the towns fund and budget cuts since 2010 was important to make. Paul Swinney, director of policy at the Centre for Cities thinktank, said: “The background of 10 years of local authority cuts is what people feel on a day-to-day basis.

“We’ve seen a budget where there has been a sprinkling of gimmickry almost. It’s a contradiction, saying, ‘look we’re coming giving sweets here’, but at the same time it’s these areas where services have deteriorated, and there will be more to come. It doesn’t point to a levelling-up agenda.”

Zoe Billingham, head of policy at the Centre for Progressive Policy, said funding for physical infrastructure was welcome, but service spending was important to address more fundamental weaknesses. “To level up left-behind places we need to see investment in social infrastructure: in social care, libraries, skills and youth services. This will be essential for an inclusive economic recovery.”

“So far, we have seen little evidence to suggest the levelling-up agenda is on the right track,” she said.

Steve Reed, the shadow communities secretary, said the towns fund was a “drop in the ocean” compared with a decade of austerity.

“Funding vanity projects like rebuilding Newark’s medieval gatehouse doesn’t fix major inequalities between our regions, revive local economies or restore crucial services like social care,” he said.