With a cumulative deficit of around £167.5 million, the government, going full ostrich, seems to think this can all be swept away by savings from a little bit of reorganisation.

Forever hopeful! – Owl

Bradley Gerrard, local democracy reporter www.radioexe.co.uk 

Improvements made but pressure remain

A Devon council is predicting it will overspend by nearly £8 million this year as government grant cuts and spending pressures in key services combine.

Two key departments at Devon County Council – adult social care and children’s services – look likely to make up the bulk of the predicted £7.8 million overspend for this year.

Devon County Council’s cabinet heard that children’s services had overspent by just over £6 million so far, while adult social care had a more than 2.6 million overspend at the half-way point in the financial year.

Savings in other areas help bring the total down slightly, although the council highlighted the loss of a £10 million government grant was also taking its toll.

Westminster removed the rural services delivery grant from Devon this year, funding which was given to the county in recognition of the higher costs of providing services in the rural county.

Councillor James Buczkowski (Liberal Democrat, Cullompton & Bradninch) said it was an “important time to take stock”.

“The headline figure must be treated seriously but it is a £2.3 million net improvement from recent months, which reflects the discipline of our teams with their tighter controls and management of demand,” he said.

He acknowledged adult social care was a sector that faced “huge national pressures” and that this meant Devon was not alone in challenges here.

Concerningly though, Cllr Buczkowski said the overspend linked to special educational needs and disabilities (SEND) was expected to be £57.4 million, which would take its cumulative deficit to around £167.5 million.

That’s in spite of Devon receiving a £95 million bailout through the government’s Safety Valve scheme last year, albeit the cash is paid out in tranches over eight years.

Special government rules mean that this overspend is essentially ringfenced, meaning it does not have an impact on the council’s day-to-day finances.

The government has pledged to look at how to deal with SEND overspends, which are estimated to be around £6 billion pounds across the country’s councils that have responsibility for education.

“At the mid-way point, it is a balanced picture, and while there is real pressure, there is real progress,” Cllr Buczkowski said.

“Savings are being delivered and we are demonstrating financial discipline.”

Leader Councillor Julian Brazil (Liberal Democrat, Kingsbridge) thanked the council’s staff for trying to keep spending under control.

“I’ve sat in meetings [when in opposition] when things were a lot worse,” he said.

“Let’s hope for a balanced budget at year-end.” 

Under plans to be set out by Steve Reed, the housing secretary, councils will be prevented from refusing planning permission for housing projects of more than 150 homes and will have to refer the application to the government for a decision.

The government said that the new process would also be quicker as ministers would not automatically have to hold a formal inquiry into the development. Instead, they said, cases could be handled through written submissions, which would be “simpler and faster”.

Unless Steve Reed’s Ministry is seriously overstaffed, Owl wouldn’t bet on that.

“This has always been about how, not if, new homes are built, and the housing secretary is clear we are leaving no stone unturned to build 1.5 million homes. 

The message is clear: go big, go bold, go build.” (Government source).

[To save time, why not send your planning applications directly to: The Rt Hon Steve Reed OBE MP, Secretary of State for Housing, Communities and Local Government, 2 Marsham Street, London, SW1P 4DF.?]

Councils to lose power to block large housing developments

Oliver Wright www.thetimes.com

Ministers are to strip local councils of their power to block or delay large-scale housing projects in the latest attempt to tackle England’s sluggish rate of homebuilding.

Under plans to be set out by Steve Reed, the housing secretary, councils will be prevented from refusing planning permission for housing projects of more than 150 homes and will have to refer the application to the government for a decision.

At present the law requires that councils only refer large-scale developments that they have approved in case they breach national planning guidelines.

Senior government sources claimed the change would put ministers “in the driving seat” and allow them to force through developments quickly even if they faced local opposition. However, it has been attacked by council leaders who said it would erode local democracy.

The latest government figures show that between April and June this year building work started on just 29,490 new homes, just a 2 per cent increase on the previous quarter. In the last full year 196,500 new homes were completed, down from 221,000 homes the previous year.

The figures are a long way off Labour’s election target of building 1.5 million homes by the time of the next election, which would require 300,000 a year over the five years of the parliamentary term. Some experts say that there is now little chance of the target being hit.

However, ministers remain committed and insist they will change the law as necessary to speed up planning delays.

In particular they are concerned that, while changes to England’s planning laws are to be made in the Planning and Infrastructure Bill, many local authorities are still dragging their feet and trying to delay or block unpopular developments in their areas.

Government sources claim that almost 900 major housing schemes have been “stopped in their tracks” in the past year alone.

Reed plans to issue a legally binding instruction to councils to inform him of any development of over 150 units that an authority intends to block. This will allow him to “call in” the project and appoint a planning inspector who will examine the scheme and make a recommendation on whether it should go ahead.

Critically, the final decision rests with the secretary of state, allowing him to veto local opposition.

The government said that the new process would also be quicker as ministers would not automatically have to hold a formal inquiry into the development. Instead, they said, cases could be handled through written submissions, which would be “simpler and faster”.

“We know the powers at our disposal have their limits so it’s only right that we look again and put ministers back in the driving seat if councils are standing in the way of good developments,” said a government source. “This has always been about how, not if, new homes are built, and the housing secretary is clear we are leaving no stone unturned to build 1.5 million homes. The message is clear: go big, go bold, go build.”

The Home Builders Federation (HBF) welcomed the change. “It will help ensure more larger sites come forward and prevent unnecessary delays to sites appropriate for development,” it said. “If the government can reduce regulatory costs so more sites are viable, and ensure people are able to buy, the move could help drive housing supply.”

The number of new homes completed last year was down by 24,500 compared with the previous year

The Local Government Association criticised the changes, however, saying they would undermine democratic accountability.

“Councils are central to addressing the housebuilding crisis across the country and are ready to play their part, already approving nine out of ten planning applications which come before them,” it said.

“Councils know their communities best and should remain at the heart of the planning process. The democratic role of councillors in decision-making is the backbone of the English planning system, and this should not be diminished.”

Last month the HBF warned the budget watchdog that its forecasts for economic growth from house building were too optimistic.

It has called on ministers to use the budget to stimulate demand for new housebuilding by bringing back the Help to Buy scheme, which allowed first-time buyers to get onto the housing ladder with government subsidised loans. It has also called for ministers to reduce the burden of regulation on house builders, which it claims is putting up the cost of new houses.