Ministers ignoring own risk advice by refusing to negotiate with striking unions

Ministers’ refusal to negotiate with striking union leaders on pay goes against the Government’s own official advice on resolving industrial disputes, i can reveal.

Jane Merrick inews.co.uk

The Government’s Risk Register, which assesses the likelihood and impact of different threats to the UK, says “negotiation and mediation” is encouraged “as a means of resolving industrial action both before and during a strike”.

Union leaders have said they will pause the wave of strikes if ministers agree to discuss workers’ pay, which is the number one issue at the heart of the disputes hitting the NHS, airports, railways and other key public services this month.

But while Health Secretary Steve Barclay has held meetings with Pat Cullen, the general secretary of the Royal College of Nursing, he has refused to negotiate on the issue of pay. He has also declined a suggestion from Ms Cullen to use the Acas mediation service.

Ministers have also declined negotiations with the three unions representing striking ambulance workers, and the PCS union on behalf of Border Force staff.

Unite’s general secretary, Sharon Graham, said the revelation showed ministers were being “cavalier with their own rules” and that ministers are “holding the country to ransom”.

The 2020 Risk Register says the threat of industrial action can be tackled through prevention, including “wherever possible, government encourages negotiation and mediation, such as via the Advisory, Conciliation and Arbitration Service, as a means of resolving industrial action both before and during a strike”.

It also says the impact of strikes can be lessened through monitoring, including “UK Government and the devolved administrations work together closely to monitor impending strike action and resolve it where possible”.

The Risk Register warns that consequences of industrial action may include “disruption to essential services, particularly transport, health and education; disruption to business (via lost working hours); possible public order challenges; economic damage (particularly for transport sector industrial action)”.

Union leaders have warned that ministers’ failure to get round the negotiating table is prolonging the disputes. But the Government has insisted it cannot meet the demands for above-inflation pay rises because it would hit frontline public services.

Rishi Sunak said on Monday he was prepared to hold out for “months” before giving into “unreasonable” pay demands of unions.

But Unite general secretary Sharon Graham said: “The Government could have stopped these strikes taking place. It is clear from the deal done in Scotland a solution can be found and that unions are more than willing to negotiate.

“Instead, it looks like the Government is being cavalier with its own rules, breaking its own Risk Register rules by refusing to negotiate on pay. What a state to be in.

“It’s Steven Barclay who is holding the country to ransom, not the unions. He will have to carry the can if patients suffer. This Government is guilty of criminal negligence in its deliberate hollowing out of the NHS long before now. If the staff exodus is to be sorted there needs to be decent pay. In fighting for that, those taking strike action are actually trying to save the service.”

A PCS spokesperson said: “The Government should practice what it preaches. PCS stands ready to negotiate whenever the Government wants to come to the table. Only then will we be able to resolve this dispute.”

Unison head of health, Sara Gorton, said: “The Government’s let everyone down. Ministers have known this was coming for months and should have made some effort to resolve the dispute. Instead they’ve dug in their heels and done nothing.”

In an interview with the Daily Mail, the Prime Minister Rishi Sunak said: “The Government is acting fairly and reasonably and will always continue to do so. I’m going to do what I think is right for the long-term interests of the country – combating inflation.”

A Government spokesperson said: “We regret the decision taken by unions to strike and we greatly value the work of all their members across the country. We will do all we can to mitigate the impact of this action, but the only way to stop the disruption completely is for union bosses to get back round the table and call off these damaging strikes.

“We want to ensure people are paid fairly, and we have been reasonable in our approach to agreeing to the independent pay review bodies’ recommendations for public sector pay rises.

“An inflation-matching pay increase of 11 per cent for all public sector workers would cost £28 billion, worsening debt and embedding inflation, which makes everyone poorer. That would be a cost to each household of just under £1,000.”

Army reservists could in future be asked to play a larger role in certain crises, according to a government report on the future of resilience, to end reliance on under-pressure Armed Forces.

The report from the Cabinet Office warns that with the Armed Forces “facing pressure as risks multiply” at home and abroad, personnel “cannot be the first port of call whenever an emergency hits”.

Any changes would see the reserves play a “greater role” in military aid to the civil authorities (Maca) protocol operations and in other areas, and use of the Armed Forces for more routine tasks will be “an indication of policy failure”.

Sidford business park on the market for £4m

A stark illustration of the potential value of gaining planning permission. – Owl

Daniel Clark www.devonlive.com 

The site of a hugely controversial new business park on the edge of a Devon village has been placed on the market. Former farmland in Sidford, earmarked for the Sidford Business Park, has been put on for sale for £4m.

The plans divided the village and had been refused by East Devon District Council because of concerns over dangers from increased HGV traffic through Sidbury and Sidford as a result of the development. There are also worries about the visual impact, as it is in an ‘Area of Outstanding Natural Beauty.’

But a planning inspector overturned that decision on appeal – one that was described as “basically a two fingers up to the Sid Valley”. A reserved matters application for the details and design of the business park scheme was approved earlier this year.

The scheme was set to see 8,445sqm of employment space built on the outskirts of the village and create 250 new jobs. But now, it seems that it may not go ahead after all, as owners Tim and Mike Ford are selling off the land at Two Bridges Road.

It is understood the pair have decided instead to focus on improvements to the existing Alexandria Industrial Estate in Sidmouth, instead which they own. A planning application for a new access road to make getting in and out of the site easier has been submitted.

The 8,445-square-metre site in Sidford, where some flood improvement work has already been completed, is being marketed as an ‘oven ready’ brownfield site. While it has planning permission for employment use, the sale brochure says that the access is most likely to be suitable for Residential use.

It states: “The owner of the site is a fourth-generation employment land owner of another employment site in Sidmouth. This other site, known as the Alexandria Industrial Estate, is now determined by the owner to be the best location for further employment investment. The proceeds from the sale of land at Sidford will assist employment investment in this alternative location.

“Consequently, the land at Sidford is now offered as an exciting opportunity to an investor who can quickly engage with the Local Plan Review by making appropriate representations. The site is to be sold via an informal tender and offers are invited to be placed on an Option or Subject to Planning basis by February 10, 2023.”

Building firms going bust at fastest rate since financial crisis

Construction businesses are going bust at their fastest rate in a decade, driving the number of company insolvencies to its highest level since the financial crisis.

Gurpreet Narwan, business correspondent news.sky.com

Rising material costs, staff shortages and plummeting consumer demand are weighing on businesses, forcing them to squeeze their margins to unsustainable levels.

Official figures show that in the second quarter of this year, company insolvencies in England and Wales reached their highest quarterly level since the third quarter of 2009.

In the first half of the year, the Insolvency Service recorded 10,717 company insolvencies.

The construction sector accounted for a fifth of these with 2,094 businesses going bust.

The industry had 1,048 insolvencies in the first quarter of the year, which marked its highest level since the same quarter in 2012.

The industry, which accounts for around 7% of the economy, is especially vulnerable to rising inflation because businesses often operate with slim profit margins.

Construction materials typically account for between 20-25% of the cost of most building projects and the price of core materials, including timber and steel, have rocketed over the past year.

According to figures compiled by the business department, the cost of steel bars rose by 17% in the year to October.

The cost of blocks and bricks has risen by 18% and timber is up 19%.

A recent report by the Federation of Master Builders found that the vast majority – 90% – of its members have been hit with higher costs over the past year.

They are also battling with shortages of key staff, including labourers, carpenters, joiners and bricklayers.

In a sign of the economic malaise plaguing Britain, builders said they were struggling to pass these costs on as clients were pulling projects and refraining from commissioning new ones.

Local builders most vulnerable

Smaller, local builders are especially vulnerable as they are less able to benefit from economies of scale so are more exposed to sharply rising costs.

Mark Wigley, managing director of Osprey Homes, a small-to-medium sized housebuilder in Hertfordshire, said: “It makes the viability of certain projects very difficult, in as much as we have to assemble our financial appraisals well in advance of bidding for new land and that generally takes a minimum of 12 months.

“House prices are not increasingly in line with the costs of our material increases.

“So as a result, the developers are really carrying a lot of additional costs that we’re finding it very difficult to absorb within our day to day business.”

He warned that smaller businesses were at the sharp end of the crisis because they are less able to benefit from economies of scale.

“If we’re not careful, then houses will just be built by the big PLCs who are only really interested in these massive development sites,” he said.

“So these little infill plots, where we are able to demonstrate high quality, will just cease to exist.

“We employ a lot of people within the construction industry and the wider economy.

“So the ripple effect of anything that happens to our industry is quite significant.”

Cranbrook faces ‘devastating’ energy price rise

Another twist in the district heating saga – Owl

Lewis Clarke www.devonlive.com

Heat network customers need action now to protect them from the potentially devastating consequences of unregulated price rises and reliability issues, an expert has warned. It is likely that district and communal heat networks won’t be regulated by Ofgem until at least 2024, leaving householders facing another two years of catastrophically high bills whilst the cost-of-living crisis continues. In addition, householders who face issues of intermittent supply of their heating and hot water will remain at the mercy of their provider to find a solution, with no option to seek redress from a regulator.

This news comes after recent supply problems have arisen in Exeter with the E.ON district heat network that supplies the new build town of Cranbrook and surrounding areas. A recent problem has arisen with the valves situated in the heat interface unit within many of the properties served by the network resulting in numerous customers in Exeter being left with no, or very limited, heating and hot water for close to a week.

Dr Catherine Caine, from the University of Exeter Law School, has called on the Government to take action now to help those affected.

Heat networks have the potential to deliver up to 20 per cent of heat to homes in the UK by 2050 and could deliver significant reductions in carbon emissions. However, the sector is currently unregulated which means that the consumers of heat networks can be paying much higher prices for heating systems, which may have also been poorly constructed and which they do not understand. Some bills have risen as high as 700 per cent since April 2022.

There are more than 14,000 heat networks in Great Britain, approximately 2,000 of which are district heat networks and 12,000 are communal heat networks. Combined, these serve around 500,000 households.

Heat networks provide hot water to residential and commercial buildings and remove the need for gas boilers to be installed in individual buildings. Consumers do not receive protection regarding the price that they pay and are often poorly informed about what their heat network is and how it differs from a traditional gas boiler.

Under the Premiership of Boris Johnson, the Energy Bill was introduced in Parliament which, if enacted in law, would appoint Ofgem as the regulator of the sector. Under the Bill, heat network suppliers would be held to a nationally recognised standard when they install and commission their heat network. The Bill also included proposals for consumers to receive clearer information. However, since the recent changes in Government progress on the Energy Bill appears to have been put on hold.

Dr Caine said: “Over summer, progress on the Energy Bill looked very promising, but the half-a-million residents living in homes supplied by heat networks are still supplied by a monopoly that is unregulated – without the ability to switch suppliers. It is very unfortunate that the Energy Bill has been put on hold. The plans for the regulatory framework going through Parliament need to be implemented as soon as possible, and certainly before future systems are constructed so as to ensure these problems do not hinder the positive impact that heat networks can have in the UK.

Alarm over surge in Airbnbs and holiday lets in Devon

Liberal Democrat MP for Tiverton & Honiton, Richard Foord has called for the Government to publish the findings of their review into the usage of Airbnbs and short-term holiday lets. There are over 8,000 properties across Devon listed on Airbnb and the number of UK listings grew 33% between 2017 and 2018.

Lewis Clarke www.devonlive.com 

There are concerns about the growing size of this market at a time when many local people are struggling to find an affordable place to live. The Government held a review into the growth of short-term tourist accommodation in June – but has yet to publish the findings.

Speaking in a Westminster Hall debate, Mr Foord criticised the ‘unrestricted growth’ of this market. He called for the Government to both publish the review’s findings and act upon them to support local people.

Speaking after the debate, Richard Foord MP said: “Here in the West Country our communities are being put under pressure by the growth of short-term holiday lets. There are more than 11,000 short-term lets, such as Airbnb, in Devon alone – and this is affecting local communities.

“I have many constituents contacting me about their difficulty finding local homes to buy or rent, and they find it galling just how many properties are being snapped up as holiday homes or investment opportunities. Earlier this year there were just three homes available in all of Honiton for private rent. It’s clear to me that we need more affordable homes for local people, not more Airbnbs and short-term lets.

“The Government said it would carry out a review into short-term lets months ago, but disappointingly has not yet published the findings. I simply don’t see what they are waiting for. They should publish the review in full as soon as possible, and act upon its findings to ensure our towns and villages can continue to thrive – without local people being priced out of their own community.”

East Devon areas left without water for 24 hours

South West Water (SWW) have confirmed that water has since been restored to areas of East Devon after locals reported more than 24-hours without water. Residents in Axminster and Tiverton faced hours without water over the weekend after a number of pipes burst, and some locals in Seaton say they still do not have water access.

The taps might be running dry, but given the rain we have had, you can bet that the Combined Sewer Outfalls (CSOs) will have been pouring freely into our rivers and into the sea. Strange smells in Exmouth? – Owl

www.devonlive.com

Some locals reported they had no access to water for 36 hours after the pipes burst. A statement from SWW said the company had been working “through the night” to restore water, and had delivered bottled water to residents without water.

Jane, from Seaton, told Devon Live: “I don’t know how many are affected. There is a care home in Seaton without water. “

She continued: “They’ve given different reasons at the moment; one was a burst pipe, another was a pumping issue. We don’t know what is going on but it’s a bit much.”

Jane says she has been unable to shower due to the water issues. She said: “I’ve tried to ring SWW but it was a two-hour wait. When is it going to be fixed? There are elderly and vulnerable people involved. “

A resident in Honiton said they were unable to “drink water, flush the toilet, or shower” from around 10pm on Sunday, December 18. According to the SWW Twitter account, a burst pipe on Saturday (December 17) meant residents in Seaton lost water – this was followed by a second burst pipe which extended the loss.

A statement from SWW, released today (Monday), said water has since been restored to Axminster, though customers may experience a drop in water pressure while “water recharged the system”. The company said “extreme weather conditions, with temperatures moving quickly from -6 to 11 degrees” put pressure on pipes, leading to bursts.

A South West Water spokesperson said: “We know that some customers in Tiverton and Seaton are experiencing disruption to their water supply. We have worked hard all weekend and through the night to restore supplies to customers in Axminster and water is now restored, but customers may experience low pressure while water recharges into the system.

“The extreme weather conditions, with temperatures moving quickly from -6 to 11 degrees, did put our network under pressure and our team are responding very quickly to find and fix bursts. We thank customers for their patience while we work hard to restore all customer supplies.”

Cheap £2 bus fares – Not quite what they seem.

From a correspondent:

People with annual tickets won’t get a refund.

Stagecoach says it will happen on MOST routes but does not specify which ones.

Cuts to routes mean that people who used to take one bus now take 2-3 so unlikely to be a saving for them.

(A comment has already pointed out that you first have to find your bus.)

To Further Complement ‘A Christmas Carol’ from Mike Temple

Another correspondent becomes inspired to write a “Carol” for our times.

(Owl enjoys these contributions immensely. Thank you.)

Below is ‘A Christmas Jingle’ to be sung to the tune of ‘Santa Claus is coming to town!’

LAND DEVELOPERS ARE COMING TO TOWN!

You better watch out
you better not cry;
you better not pout,
I’m telling you why –
Land Developers are coming to town!

They’re making a list
they’re checking it twice –
It matters not whether you’re naughty or nice –
Land Developers are coming to town!

They pinpoint those found sleeping –
they avoid those wide awake;
without a five-year housing plan
‘You’re toast – for goodness sake!’

They’re raising a glass
To profits galore –
They really don’t care
If you’re needy or poor –
Land Developers are coming to town!

They’ll build on your green spaces;
High rise is in their scope –
Alas, there’s no protection –
because ‘The Council’ just can’t cope!

You better watch out –
it’s really quite scary –
A Farringdon new town (?) –
Build, build, build in Clyst St Mary –
Land Developers are coming to town!



Planning applications validated by EDDC for week beginning 5 December

More than 130 bus operators to offer £2 tickets

More than 130 bus operators outside London will begin capping single adult fares at £2 next month as part of a government-funded scheme to help people save money.

www.bbc.co.uk

National Express and Stagecoach will be among those to introduce the cap in England from 1 January to 31 March.

Single local bus fares in England cost £2.80 on average but can exceed £5 in rural areas, the government says.

Labour has said it was a “half measure” after “years of soaring fares”.

The cities of Manchester, Liverpool and West Yorkshire – all of which have Labour mayors – have already introduced £2 caps as part of longer-term schemes.

The Department for Transport, which originally announced the scheme in September, said buses were the most popular form of public transport in England, making up half of all journeys.

It said the government was spending £60m on the cap to “help families, students and commuters” while taking “two million car journeys off the road”.

According to latest official figures, the number of people travelling by bus has been rising but remains well below pre-Covid levels.

At the same time local bus fares in England were up 4.2% in the three months to 30 June when compared with the same period last year.

The government says the scheme will help the bus industry’s recovery, while also enabling passengers to save.

It also said the cap was “an important step” in ensuring passengers got a fair deal.

The Campaign for Better Transport, a charity, welcomed the cap but said it should be extended.

Spokesman Norman Baker said: “Capping bus fares will help struggling households, cut traffic congestion and carbon emissions, and inject new life into dwindling bus services.

“It’s such a win-win that it shouldn’t be restricted to three months, but should be extended indefinitely, for the sake of our pockets, our economy and our environment.”

Billion pound gap as government spends less on cutting UK emissions than it raises in carbon tax

The New Economics Foundation says this decision is at odds with the 2021 Environment Act which commits the government to the principle that ‘the polluter pays’

Saphora Smith www.independent.co.uk 

The government is spending a billion pounds less on cutting domestic emissions than it is expected to raise through carbon taxes over the next 12 months, contradicting its own principle that “the polluter pays”, according to analysis.

The UK emissions trading scheme – which charges certain businesses for emitting greenhouse gases – is expected to raise £6.5bn this year, more than six times the £1bn it raised in 2021-2022, according to a study of carbon credit auction prices by the New Economics Foundation and Oxfam.

But despite the significant projected windfall, the government has only allocated £5.5bn to cutting carbon emissions domestically this year.

Alex Chapman, a senior researcher from NEF who conducted the analysis, says the gap is at odds with the 2021 Environment Act which commits the government to the notion that “the polluter pays”.

“We’re set to raise over £20bn over the next four years from our most polluting businesses but we’re not putting it to good use,” he said.

“This government has the opportunity to reinvest this money to cut our dangerous carbon emissions and repair some of the damage caused by the climate crisis,” he added.

Caroline Lucas, the Green MP for Brighton Pavilion, said the analysis showed that the government “isn’t even capable of following its own legislation”.

“Instead of polluters paying for their climate-wrecking emissions, the public is being forced to pay up instead,” she told The Independent.

“Ministers must urgently plug the gap in climate spending if their own Environment Act is worth the paper it’s written on.”

The UK government is spending the £5.5bn on a range of policies to cut emissions ranging from transport to energy efficiency, hydrogen, and offshore wind.

But the emissions trading scheme is not designed to pay for all of our climate action, and the Climate Change Committee has said that next year over £12bn of capital investment is needed to help decarbonise the buildings and surface transport sectors alone.

The scheme applies to energy-intensive industries, such as the power generation sector and aviation.

The industries are allocated a certain number of credits for free, but have to buy the majority through the scheme, in which the number of credits is capped.

The aim is to control the volume of emissions that can be emitted by the regulated sectors to ensure the UK meets its target of reaching net zero greenhouse gas emissions by 2050.

The reduction in the number of credits available – as well as a drop in free credits – has pushed up the price of the credit in recent years.

Over the past two years the average price of a tonne of carbon in the scheme has trebled from around £28 to around £80, according to NEF.

And yet this dramatic increase is not being reflected in this year’s core net zero budget to cut emissions from transport, buildings and the energy sector among others.

“Once again the Conservative government has shown they are not committed to climate action,” said Liberal Democrats climate change spokesperson, Wera Hobhouse.

Mike Childs, head of policy at Friends of the Earth, said the analysis underscored “just how significantly the government is still underinvesting in the vital measures that will cut the UK’s carbon emissions.”

“With the energy crisis biting and millions of people shivering in their homes, there couldn’t be a more pressing need for the government to prioritise investment in a street-by-street insulation programme, starting with the most in-need neighbourhoods,” he said.

Other European countries are better at reinvesting revenue from their emissions trading schemes into climate action, according to the analysis. Germany, France, Portugal and Greece all invest between 90 and 100 per cent of emissions trading scheme revenues into reducing greenhouse gas emissions, it said.

The analysis comes as a new report by the Institute for Public Policy Research (IPPR) published on Friday found that increased investment to reach net zero is an “economic, environmental and political necessity” that could boost GDP by 2 per cent by 2030 and 3 per cent by 2050.

The government has repeatedly said it remains committed to reaching net zero by 2050, and that between 1990 and 2019 the economy grew by 76 per cent while the UK cut emissions by some 44 per cent, decarbonising faster than any other G7 nation.

Last month, Chancellor Jeremy Hunt announced an extra £6bn to improve energy efficiency from 2025 to cut demand for expensive energy.

But the foundation recommends that the government invests an additional £8.75bn this parliament to insulate draughty homes, plus an extra £3.6bn to kick-start an emergency basic insulation programme this winter.

It also calls on the government to contribute to loss and damage funding to compensate vulnerable countries for damage caused by climate-fuelled extreme weather and slow onsets like rising sea levels.

The Independent approached the Department for Business, Energy and Industrial Strategy for comment.

More on: How not to run a railway

Avanti West Coast handed millions of pounds of taxpayer-funded bonuses

Avanti West Coast was handed millions of pounds of taxpayer-funded bonuses for a period in which it was Britain’s worst train operator for delays, Labour Party analysis shows.

Joseph Connor www.thelondoneconomic.com 

Shadow transport secretary Louise Haigh called the payments a “scandalous waste of taxpayers’ money” and a “symptom of a broken rail system”.

Labour analysis of Department for Transport (DfT) figures published on Thursday found Avanti West Coast was awarded the highest possible rating for “operational performance” and “customer satisfaction” between April 1 and September 18 last year.

That contributed to a bonus payout of £4.1 million.

This is despite Office of Rail and Road (ORR) figures showing just 60.1% of stops at stations by Avanti West Coast trains were within a minute of the schedule between April and June 2021 – the worst figure for all operators.

Separate ORR data also revealed that the company had a higher rate of complaints per passenger than every operator except Caledonian Sleeper during that period.

Ms Haigh said: “Ministers have rewarded abject failure, handing over millions of pounds in performance bonuses and fees to this failing operator.

“Rather than hold operators to account for shambolic performance, ministers are doling out taxpayer-funded bonuses.

“This is a symptom of a broken rail system where passengers come last.

“The next Labour Government will bring our railways back into public ownership as contracts expire, ending the Tories’ failing system, and putting passengers back at the heart of our rail network.”

Ministers came under fire last month for renewing Avanti West Coast’s contract despite it slashing services in August to reduce short-notice cancellations.

A new timetable introduced earlier this month featured a 40% uplift in services, according to the company, which is a joint venture between FirstGroup (70%) and Italian state operator Trenitalia (30%).

A DfT spokesperson said: “This performance fee is based on data from before the current period of disruption. Avanti need to improve services on their network to ensure passengers can get the reliable, timely service that they deserve.

“We have put Avanti on a short term, six-month contract, as they roll out vital improvements and service upgrades and continue to monitor the situation closely.”

The strikes are a baleful legacy of a 12-year obsession with tax cuts and a small state

David Cameron first took aim at public sector workers in 2010. Continued Conservative policies have brought them to their knees.

“Contemporary Tory governments are singularly bad and unsympathetic employers”

Will Hutton www.theguardian.com 

The anger, despair, hardship and sense of being trapped that drove last week’s nurses’ strike, the first in the history of the Royal College of Nursing, with ambulance workers and other large parts of the NHS joining them this Wednesday, did not come out of a clear blue sky. They have been years in the making, as has the industrial action blighting rail, the tube and the post office and those planned in schools and the civil service early in the new year.

For contemporary Tory governments are singularly bad and unsympathetic employers. Although Liz Truss and Kwasi Kwarteng have been dispatched, their libertarian hostility to the state, to taxes and to the very concept of public endeavour is shared, if less moronically, by Rishi Sunak and Jeremy Hunt.

In their terms, the public sector workforce is an unfortunate evil, whose claim on the public purse is a residual one once prior ambitions to lower taxes and debt have been met – a far nobler and more moral aim for them than strong public services operated by motivated and reasonably paid staff. So it was in 2010, when David Cameron assumed office. It is the case today, too, but the capacity to run an undeclared pay policy that keeps public sector wages under continuous downward pressure has come apart with inflation running above 10%. The nurses are castigated for striking for an inflation increase plus 5%, which is seen as ”unreasonable”. But were it offered, their starting salaries in real terms would still be lower than they were in 2010. It is a similar story across the public sector.

It is a pay policy not openly acknowledged by ministers. Future public spending plans are set out in successive comprehensive spending reviews: public sector wages are budgeted to rise in cash terms for the next three years by never more than the assumed inflation rate. Varying parts of the public sector – there are eight pay review bodies, ranging from the NHS to education – may choose to offer more than the cash cap reflecting circumstances but, if so, the resources will have to be earned by “efficiency savings”. In the case of the NHS, those are assumed to be 2.2% a year.

In the immediate wake of the financial crisis, with economic activity depressed and inflation virtually nonexistent, public and private sector pay in real terms fell broadly in sync, but since 2015 the system has delivered an increasingly unfair and unbridgeable gap. In 2021, private sector pay finally climbed above its 2010 levels in real terms. Meanwhile, since 2015 public sector pay has risen a little, but not at the same pace – and from 2021 that widening has accelerated. In September, private sector pay in real terms (including bonuses) had grown cumulatively 5.5% since 2010, while in the public sector it had declined by 5.9%, with nearly half of that formidable 11.4% gulf opening up since January 2021. The government’s projected cash increases for wages have been eaten away by far higher than expected inflation. It’s been a hard time for everyone, but especially for those in the public sector. The core problem has been the productivity calamity, made worse in the public sector by even lower investment than in the resource-starved business sector. The figures are a disgrace. Since 2010, British capital spending on healthcare has consistently been the lowest of nine comparable European countries, plus the US and Canada; our stock of MRI and CT scanners per million people is the lowest, as are beds per 1,000 people. Worse, since Covid, one in seven of those hospital beds is occupied by a patient who could be discharged, but lack of care home capacity and social and community care has meant they are blocked in hospital. So despite more doctors, nurses and ambulance staff since 2019, the NHS is treating 12% fewer people from waiting lists and 14% fewer emergency admissions. These are not just barren statistics: accounts of patients needing emergency treatment but not receiving it because of system blockages are commonplace.

These are not acts of God. They are the results of policy choices. The coalition government took over an NHS in pretty good shape. But as the Institute of Government’s Giles Wilkes, sometime economic adviser to both Vince Cable and then Theresa May, candidly observed last week, its great error was not only to squeeze NHS spending too hard; it was obsessed with tax cuts – increasing personal allowances, cutting corporation tax, freezing fuel duties and capping council tax. As a result, he says, crucial “fiscal firepower for public services in future” was squandered. Then add Brexit, without which GDP would now be £120bn higher and tax revenues up some £50bn. Far from the £350m a week more for the NHS, we have £1bn a week less.

There is no honesty about any of this. Instead, the government twists and turns, making outlandish claims about the unaffordability of the pay claims and their contestable impact on inflation. It is one of the baleful results of post-Brexit Tory politics that Johnsonian half-truths and misrepresentation are now increasingly the currency of public life. The reality is that the government faces the consequences of the sins of its predecessors. Had successive generations of Tory ministers avoided stupid policies, there would have been the fiscal firepower to maintain public sector wages at levels that did not provoke strikes and by raising investment levels allow workers to do better jobs. Unions may need to accept that jobs and systems have to change to reflect technological change, but to work in public service should be properly rewarded.

In a sense, it is a civilisational battle. An NHS that cannot do its job properly means that more than half-a-million workers can’t enrol for work because they can’t get medical treatment. Worse gaps, delays, endemic shortages and bottlenecks are literally killing people. The vast majority of the electorate do not share the mania for state shrinking and tax cuts that animates the government. It wants properly resourced public services. The nurses are fighting to protect minimal living standards – but also for a stronger NHS, for better policy and, to an extent, for our civilisation itself. It is a cause we must support.

A Christmas Carol: an update from Mike Temple

This post “A modern day Christmas Carol” has inspired Mike Temple to pen this poem

(may be sung to the tune of “Once in Royal David’s city…”)

Once in Little-Britain City
Lived a Tory known as Scrooge,
Stranger he to Truth and Pity
But his assets were quite huge.
His cash was tax-free, stashed offshore.
He didn’t care about the Poor.

He cut their benefits and “credit”,
Ignored the homeless at his door;
“Want” was “humbug” (yes, he said it).
His friends grew richer than before.
Bob Cratchit was this Tory’s stooge,
Kept on low pay by the said Scrooge.

Bob Cratchit on his low wage went
To nearby Food Banks every week.
He spent so much on heat and rent.
His prospects did look very bleak,
While for his son called Tiny Tim The future really did look grim.
At Xmas-time Scrooge went to bed
But didn’t sleep a wink at all;
He’d drunk a lot and was well fed
But saw a Ghost upon the wall
Who oped his cloak, and what Scrooge saw
Were kids called “Ignorant” and “Poor”.

This Ghost was from the Tory Past,
From just about three years ago;
The kids were mean, also low-classed
And marked with misery and woe.
They looked at Scrooge as if to say:
“Your policies turned out this way.”

Next night our Scrooge was sleeping when
The Ghost of the Time-Present came
Who showed the children once again –
It was indeed a crying shame:
The kids were hollow-eyed and thin
With little flesh, just bone and skin.

The third night’s Ghost from Future Time
Brought on the double-act once more,
Both skeletons – it was a crime
And done by those who’d made them poor.
The “Poor” kid was now Tiny Tim
And millions more were just like him.

Mike Temple

Not a way to run a railway: the lunacy of trains in the UK

“The government and unions are engaged in a long, ideological brawl for which the traveller and taxpayer are mere bystanders.”

Simon Calder www.independent.co.uk

Imagine a business that, in the course of three years, has lost one in five of its customers. Revenue has shrunk even further, to just 71 per cent of where it was in 2019. That translates to taking £10m less per day than in 2019.

It gets worse. Three different bosses in seven weeks. A pricing policy so irrational and riddled with anomalies that an increasing number of customers make two or more purchases to obtain a single product, typically saving 40 per cent in the process. And bewildering working arrangements for staff.

In one unit of this business, the terms of employment depends on which side of a range of hills your job happens to be based. It is a seven-day-a-week operation, and the staff in the east could be rostered on any day. Yet those on the western side can work Sundays only when they feel like earning some overtime.

This is an organisation that clearly needs to be reconstructed from the ground up, with far lower costs, greater flexibility, sane pricing and fresh ideas. Yet to the contrary, the service is sliding downhill with toxic industrial relations and an apparent death wish: the company is recommending prospective customers to avoid it for much of the time in the next three weeks.

As you realise, I am describing the railways of Britain in the dying days of a chaotic year.

Those passenger and revenue figures (released this week for July to September 2022) spell out the scale of the slump since the coronavirus pandemic.

Mark Harper took over as transport secretary from Anne-Marie Trevelyan who replaced Grant Shapps, himself sacked by Liz Truss for supporting Rishi Sunak’s campaign for leadership. And all this during a long and bitter rail strike that has dragged on for six months and blights travel planning in the UK.

While you can point to a fragmented industry involving dozens of individual enterprises, many privately owned, the reality is that His Majesty’s secretary of state for transport calls the shots.

Some train operators are in the private sector and effectively pick up fees for running services as stipulated by the Department for Transport (DfT). Others are publicly run, such as Northern Trains – whose employment agreements are decided according to the worker’s position relative to the Pennines.

There are good arguments for a fully state-owned railway, and conversely for the present largely outsourced arrangements. But the notion that billions of pounds are exiting the industry to “foreign shareholders” and could simply be redirected to provide inflation-matching pay rises is preposterous. As things stand, the railway is haemorrhaging cash and the taxpayer is picking up the bill.

“Split ticketing,” whereby you legally exploit anomalies in the fare structure to cut the cost of rail travel, has moved into the mainstream. With ticket apps presenting you will ways to save, revenue is further depleted. Surely nobody ever buys a full-fare ticket from Bristol to London with the “Didcot Dodge” (buying one ticket to the Oxfordshire junction and another from there) cutting the cost by 40 per cent.

Everyone in the business realises the unappealing truth that much needs to change. Yet from most of those involved there is no sign of meaningful advances to improve services, cut costs and boost business. On the contrary, the government and unions are engaged in a long, ideological brawl for which the traveller and taxpayer are mere bystanders.

The RMT union, which is ending the year and starting 2023 with 12 days of strikes, believes that the government has a bottomless pit of cash and will eventually hand more of it over. Ministers, in contrast, believe that they can face down the strikers and set an example to other public-sector workers. A plague on both your platforms, say passengers as we book flights, hire cars or simply stay at home as the train firms urge. Every day that the disputes drag on and the fundamental problems of the railway remain unaddressed will dull the appetite for train travel and hasten the spiral of decline that both sides have chosen to back.

High Court declares that the Home Secretary is acting unlawfully…

… by failing to meet asylum seekers’ essential living needs and protect them from destitution in the cost of living crisis

www.doughtystreet.co.uk (Extract)

The High Court has today ruled that the Home Secretary, Suella Braverman, has acted and is continuing to act unlawfully by failing in her legal duty to provide for the essential living needs of asylum seekers.  This follows evidence that she ignored advice from her officials, first issued on 31 August 2022 and repeated in September and November 2022, that she must increase the rate of weekly financial support paid to asylum seekers in order to avoid breaking the law. 

Under Act of Parliament, the Home Secretary is under a legal duty to review the rate of support for asylum seekers in order to ensure that it is sufficient to meet their basic subsistence needs such as food, drink, clothing, toiletries, travel and non-prescription medication.

Internal Home Office advice to the Minster, disclosed during the proceedings, revealed that the current rate of £40.85 per week is no longer sufficient to meet basic living neamieeds. Officials recommended repeatedly that in light of rising inflation the rate must be increased in order to protect asylum seekers from destitution. On 15 November 2022 stated categorically that the rate had to be increased immediately to £45 per week.  The Home Secretary again did not act on this advice. She provided no reasons or explanation to the Court for this failure, despite the court hearing having been listed for many months.

The legal ruling confirms that the Home Secretary is in breach of the law and is legally required to immediately increase the rate of weekly support.  A further judgment on whether the Secretary of State acted unlawfully by using a less accurate methodology for calculating the cost of meeting the essential living needs of asylum seekers is likely to be handed down in the next few weeks. In the event that the Home Secretary refuses to act in light of today’s ruling the Court is likely to have no choice but to order her to do so.

The case was brought by an asylum seeker, CB, whose name has been anonymized to protect her identity.

“Vulcan” cracks the problem of NHS bed shortages

John Redwood, a thrice rejected candidate for the Tory leadership from the dying days of the Major era, has resurfaced. 

Here is the brilliant solution he tweeted yesterday: “short of beds. Why don’t managers put more in?”

Simples – Owl

Link to Tweet here

Genuinely good news for East Devon

East Devon has been successful in securing a new £1.8 million pound Investment Plan.

“The primary goal of the Investment Plan is to support the transition to a net zero economy, build pride in towns and villages, support business development and improve opportunities for local people to grow their skills.”

Adam Manning www.midweekherald.co.uk

The county will receive £1,796,363 in funding over three years from government, designed to replace European Union structural funds.

Following assessment of East Devon District Council’s Investment Plan for the UK Shared Prosperity Fund, the Secretary of State for Levelling Up, Housing and Communities (DLUHC) has conditionally approved almost £1.8m funding for East Devon over the next three years.

The primary goal of the Investment Plan is to support the transition to a net zero economy, build pride in towns and villages, support business development and improve opportunities for local people to grow their skills.

Funding for year one (2022/23) is set at £218,005, funding for year two (2023/24) is set at £436,011 and funding for year three (2024/25) is expected to be £1,142,347. These funds are conditional on complying with the terms and conditions of the funding.

Cllr Paul Hayward, East Devon District Council’s portfolio holder for economy and assets, said: “This is fantastic news for East Devon! We’re delighted that our plan has been approved. It means we can progress our aims to transition to a net zero economy, improve skills to create a vibrant workforce and support culture and leisure.

“We had expected confirmation of the funds in October. This means we will need to work very quickly to allocate year 1 funding before 31st March 2023.

“We will be calling for grant applications from East Devon businesses for a new round of the Innovation and Resilience Fund and a new Culture, Leisure and Tourism Fund. Full details of the criteria for grants will be made available as soon as possible. In the meantime, interested businesses should sign up for the business newsletter to receive the latest information.”

The East Devon Investment Plan proposes funding for twelve interventions:Action on Poverty Fund, Active Travel Fund (starts 2024), Business Support Programme, Disability Employment Support Programme (starts 2024, East Devon Council for Voluntary Service, East Devon Culture Programme, East Devon Leisure Programme, East Devon Towns Feasibility Work, NEET Employment Support Programme (starts 2024), Net Zero Innovation Fund (delivered through the Innovation and Resilience Fund two), Retrofit Programme (starts 2024), Sustainable Tourism Fund (partly delivered through the Culture, Leisure and Tourism Fund)