“Council pensions poured into Carillion” [just before the company crashed]

“A City fund is under fire for pouring tens of millions of pounds of councils’ pension money into projects run by the outsourcer Carillion weeks before it went bust.

Pensions Infrastructure Platform (PIP) invests the pensions of councils from Strathclyde to the West Midlands. It bought 10 infrastructure schemes from Standard Life Aberdeen for £400m in late November.

That deal included two Carillion hospital projects — the troubled Royal Liverpool and Southmead in Bristol.

PIP’s investors demanded an investigation after the fund was left nursing heavy losses in the wake of Carillion’s collapse into liquidation in January.

That internal review, which has been completed, recommended that PIP tighten its internal controls.”

https://www.thetimes.co.uk/edition/business/council-pensions-poured-into-carillion-v3xsrmsvk

Seaton fights for Axe Valley health care

Owl says: good to see the deprived eastern side of East Devon banding together to fight for its (similarly deprived) health services.

Priorities identified for Axe Valley healthcare provision

“A ten point plan to safeguard healthcare provision across the Axe Valley has been drawn up.

The list of priorities has been agreed following a series of meetings between representatives from statutory and voluntary health groups along with local councillors.

Following the workshops, organised by Seaton Area Health Matters group, 10 priorities have emerged:

* To take an area approach for the Axe Valley, not just Seaton.

* Improving communication and co-ordination between voluntary organisations.

* Maintaining and extending NHS services in GP practices and at Seaton Hospital.

* The challenges in older age groups (chronic diseases, loneliness and isolation).

* The challenges in younger age groups (drug and alcohol addiction, housing, poverty).

* Mental health support.

* Transport difficulties to access services.

* Promoting health and wellbeing

* Communication on what is available.

* Co-ordination and ownership to tackle the challenges.

To look at these challenges a steering group has been established under the chairmanship of Seaton town councillor Jack Rowland.

A Terms of Reference was agreed at the last meeting on July 12 and two initial working parties have been established to work on the priorities and report back on progress at the September 6 meeting of the steering group.

A website and Facebook page will also be set up to communicate what is happening and enable people to contribute their views and receive answers, where appropriate.

Explained Cllr Rowland: “The working parties will utilise the experience and knowledge of whoever they need to as part of producing recommendations for approval by the Seaton Area Health Matters Steering Group and then potential approval and support from the Clinical Commissioning Group (CCG) and the Royal Devon and Exeter Trust (RDE).

The next meetings of the Seaton Area Health Matters group are:

Thursday, September 13, at
2pm

and

Thursday, December 13, at 2pm

both at the Marshlands Centre, Harbour Road, Seaton.

Anyone who has an interest in healthcare in the Axe Valley is welcome to attend.

Representatives from groups involved in health, care and wellbeing are actively invited to become members of Seaton Area Health Matters by attending the meetings.

Other members of the steering group are: Cllr Geoff Pook (vice chair), Cllr Marcus Hartnell, Victoria Parry (Healthy eating charity and Clinical Commissioning Group community representative), Cllr Martin Shaw, Roger Trapani (CCG community representative) Tina Trapani (Devon Senior Voice representative), Dr Mark Welland (Seaton GP and chairman of Seaton and District Hospital League of Friends).”

http://www.midweekherald.co.uk/news/group-identifies-patients-needs-1-5616100

The Great Council House Funding Con!

Councils have warned that a £2bn funding pot finally made available to them will not be enough to deliver the new generation of council homes promised by Theresa May. Their message comes as the first ever social housing green paper by a Conservative government is expected to be published this week.

Local Government Association chair, Lord Porter, the Conservative leader of South Holland District Council, Lincolnshire, said he would not be able to build enough council homes to meet local demand because the government was only offering 166 councils extra borrowing capacity and additional funding for social housing.

“I’m building petty cash numbers. I need about 200 a year and I’m not even building 20. It means I’ve got a bunch of people sitting on a waiting list,” he said. “You have to be in the crappiest life circumstances in my area to access a council house. That should not be the case. If you don’t earn a lot of money, you shouldn’t have to rent in the private sector, where rents will be double what they are in the social sector.”

The green paper, still expected before parliament breaks for the summer this week, and May’s pledge at last year’s Conservative conference that she wanted to build a new generation of council homes, have raised hopes that government would free councils to build at scale again.

Streets in the sky … the Sheffield high-rises that were home sweet home
The latest figures show that social house building has hit a new low, with only 5,900 homes completed in 2017 – the lowest proportion of overall housing supply since records began. In 2011 nearly 40,000 socially rented homes were built in England.

Porter said the Treasury was unlikely to allow councils to borrow against existing housing, termed “sweating”. “We can’t borrow against our own stock, which is insane. We are sitting on hundreds of billions of pounds in assets that are un-sweated,” he said.

Councils have lost around 100,000 socially rented homes since 2012 through right-to-buy sales and conversions to much higher affordable rents, according to research by the Chartered Institute of Housing. …”

https://www.theguardian.com/society/2018/jul/21/may-2bn-council-housing-pledge-not-enough-council-leaders-warn

BoJo refuses to leave (free and almost tax free) Foreign Office luxury pad that should go to Jeremy Hunt

“Boris Johnson has refused to budge from his £20million taxpayer-funded mansion, as Downing Street admitted he could still be there for “weeks”.

There is growing anger as he remains at the luxury official residence, despite resigning as Foreign Secretary 12 days ago.

The Tory MP was today spotted sheepishly leaving the mansion, with two large suitcases packed in an awaiting car for him.

But wife Marina Wheeler was understood to still be in the home today.

A No10 spokeswoman said: “He’s leaving within the next few weeks.”

Mr Johnson refused to answer questions on his living situation when confronted by the Mirror at the property.

Two taxpayer-funded, unmarked police cars with four staff waited for two hours at One Carlton Gardens in Central London as the MP readied himself.

Mr Johnson was whisked away in a Jaguar, with the suitcases in a 4×4 BMW.

He has raked in thousands from renting out a home just four miles away in Islington, North London, while he lived rent-free in the mansion.

Grenfell Tower survivor Aalya Moses, 57, who spent months cooped up in a hotel room as she awaited a new home after the blaze, hit out at the former Cabinet minister.

She said: “If he’s still living in there I think it’s disgusting, it’s outrageous.

“A man like him will have earned plenty of money and he’s living for free in a second home he shouldn’t really be living in any more. And it’s at the taxpayers’ expense?

“What planet is he on? It’s diabolical.”

Labour MP David Lammy said it was proof of a “serious class problem” here.

Referring to the recent scandal over treatment of Windrush migrants, he added: “Those like Boris Johnson, who are drenched in privilege, feel entitled to claim far beyond what they are owed.

“Meanwhile, many of the poorest in our society often do not get even their most basic rights.

“As Boris luxuriates in Carlton Gardens at the taxpayers’ expense, despite resigning from his role, many from the Windrush generation remain homeless due to Government failures and its hostile environment.”

It also emerged Mr Johnson may have enjoyed the grace-and-favour property without paying tax.

Ministers are usually expected to declare such accommodation as a taxable benefit on the department’s annual report, according to the Treasury.

Mr Johnson, who has lived there since being made Foreign Secretary two years ago, has not.

The Treasury said: “Government ministers occupying official residences by virtue of their jobs meet the statutory conditions for an exemption from a tax charge on the property itself.

“However, tax is charged on associated services, such as heating, lighting, repairs…

“The charge of the benefit limited to 10% of the net earnings from the ministerial salary (not including their parliamentary salary).”

HMRC declined to comment on individual cases.

The Foreign Office failed to respond to the Mirror for comment, and to confirm whether Mr Johnson had vacated Carlton Gardens.

The Foreign Office leases the mansion from the Crown Estate, which looks after the Queen’s properties. Officials paid £482,341 a year in rent on it in 2015.

If this has not gone up since then the Foreign Office is paying £1,321.48 a day for the property.

That means as of yesterday, the taxpayer had paid £14,536 for it since Mr Johnson quit over Brexit on July 9.

The Georgian mansion is considered the most plush of all the ministers’ grace-and-favour pads. …”

https://www.mirror.co.uk/news/politics/boris-johnson-wont-budge-rent-12955434

Beware the employer suddenly interested in your “wellbeing”

Comment on Guardian article, pertinent to the current situation of less people doing more work.

“At my last job, there was a sudden uptick in the company’s interest in things like sleeping patterns and mental health. Obviously the more switched-on people reacted with mounting worry (what were they about to do to us?), but it got really sinister when we were introduced to an online system which could help us ‘keep track’ of our fitness and stress management regimes. Not, of course, compulsory (they don’t dare go that far yet) but it was framed as an amazing indication of how much the company cared about us.

I recall asking the person who was taking us through this exactly who was keeping hold of this very intimate personal data, where it went and what was done with it (some of the fine print suggested outsourcing) – they could not give me an answer to that and seemed uncomfortable that it had been asked, which was a dead giveaway. Needless to say, before I left the corporate clouds were gathering – job responsibility creep had started, people were getting looked at askance for not having picked up an email over the weekend, the cottage industry in oversight was the only one expanding…

Never, ever forget that your relationship with your employer is purely transactional. They are renting your time , labour and expertise and you owe them nothing more than what you have mutually contractually agreed to. Don’t let them put themselves in any other relationship to you than that – they are not your friend, they are not your parent and they are certainly not anyone who has any business being interested in your inner life. That’s the way to avoid job stress.”

https://www.theguardian.com/commentisfree/2018/jul/20/wellbeing-buzzword-employers-mental-health

Privatisation: today Barnet … tomorrow …? The end of “easy councils”

Owl gathers that the company Barnet outsourced most of its services to is known in the borough as C(r)apita!

“London Borough of Barnet is considering proposals to bring 11 services back in-house — including finance and accounting — in a move that could spell an end to its “easy council” approach.

The council achieved notoriety in 2012 when it decided to outsource up to 70% of its services through a separate joint venture company established with Capita.

But a report to the council’s cabinet this week recommended a rethink of the policy in response to the outsourcing giant’s financial problems and continuing austerity.

The council report said: “Capita’s focus in future will be delivering technology-enabled services, at scale, where the company believes it can add the most value to service delivery.”

Capita’s change of strategic direction — including a sale of treasury adviser Capita Asset Services — occurred last year after issuing a series of profit warnings.

The council added: “The rapidly changing external environment has accentuated the need for the council to increase the level of direct control it exercises over the levers that affect its strategic direction”.

In response, the council says it prefers the option of bringing some services back in-house, rather than a wholesale insourcing, or continuing with the existing arrangements.

Finance and accounting — apart from transactional services provided from a shared service centre in Darlington — are among the services earmarked for a return to direct council provision.

Others include estates, strategic human resources, some social care services, regeneration commissioning, highways, economic skills and development, cemeteries and strategic planning.

Another 17 services, among them printing, payroll, pensions administration, customer services, development control, trading standards and licensing, would continue to be outsourced to Capita.

Officers at the authority will now work on defining the best way forward and drawing up a business plan for changes.

Richard Cornelius, Barnet’s council leader, said: “Many things are working well, and it’s right that we build on them. Where this is not the case, changes are needed.”

Cornelius said that changes would only be recommended if they offered a good deal for the Barnet taxpayer.

Jonathan Prew, managing director of Local Public Services at Capita, said: “The proposed review is an opportunity to respond to changing circumstances and needs that have evolved over the last five years to ensure that a future partnership is focused on providing services that will deliver best value for residents and all stakeholders.

“Our partnership has achieved significant financial benefits, and we continue to be focused on strengthening our performance where we need to and delivering quality services across the borough.”

The chief executive and leader of the council have resigned from the board of the joint venture, Regional Enterprise, to avoid conflicts of interest during the review period.”

http://www.room151.co.uk/resources/barnet-on-the-verge-of-returning-services-in-house/

EDDC flogging off the Ocean Centre Exmouth – well, it might cover a bit of the new HQ bill!

“According to agent Vickery Holman Property Consultants, Ocean Blue, in The Esplanade, is on the market for £2,700,000.

The facility, which opened its doors for the first time in 2012, has 12-lane 10-pin bowling, a gaming area and the Ocean Bar and Grill, with a seating capacity of 100 on the first floor and a large children’s soft play area and café for 22 children.

On the second floor, there is a function suite, bar and two outside terraces which has become a popular wedding venue with a capacity for 350 people.

The complete site is subject to a 125-year lease with East Devon District Council and was sublet to LED Leisure Ltd for 25 years in 2015.

The Journal understands this agreement will not be affected by the sale of the site.”

http://www.exmouthjournal.co.uk/news/exmouth-s-ocean-goes-on-the-market-for-2-700-000-1-5612363

London borough pulls out of housing development joint venture

Haringey pulls out in favour of building council houses on its own land rather than (supposed) 40% affordables with developer partner. The pre-build costs are shocking. Meanwhile EDDC plans to goe ahead with its version …

“Haringey Council has voted to bury the controversial development scheme aiming to join forces with the private sector to build more housing.

The decision taken at a cabinet meeting on Tuesday means the council will now have to repay £500,000 to the company that it went into business with in the divisive regeneration project.

Cabinet documents revealed that the council’s budgeted spend since work on the Haringey Development Vehicle had begun in 2014 has been roughly £2.5m.

Following local elections in May, the council selected a new administration that promised to cancel the HDV.

Joseph Ejiofor, leader of Haringey Council, said: “The preference of this administration, as stated in our manifesto, is to build council homes on our own land. We firmly believe that what is currently public land should remain in public ownership.

“Building on commitments we made during the recent elections, we have now taken decisive action to set a new direction for the council, with this final decision that the HDV will not now go ahead.”

The £2bn programme was expected to provide 6,400 new homes in the borough, but opponents of the scheme had accused the council of social cleansing because only 40% of them would be affordable properties.

The council has already spent £250,000 in legal costs to fight a judicial review brought by campaigners against the plans, and there are fears that there could be further legal action – this time from the council’s private partner Lendlease.

Ejiofor said: “We are obviously concerned at the threat of protracted legal action by Lendlease, however the people of Haringey elected us to govern their borough, and to take decisions that are in the best interest of all Haringey’s residents.”

Ahead of the cabinet meeting on Tuesday night, Lendlease wrote a letter to the council expressing its concern.

It read: “If the council decides to reverse our appointment as the successful bidder, we will have no choice but to seek to protect Lendlease’s interest given our very significant investment over the last two and a half years.”

Lendlease has been contacted for comment. …”

https://www.publicfinance.co.uk/news/2018/07/haringey-ditches-divisive-housebuilding-project

When losing your job can be a money-spinner!

“A higher education boss was handed more than £500,000 in a “golden goodbye” pay package after the government scrapped her organisation.

Professor Madeleine Atkins, ex-chief executive of the Higher Education Funding Council for England (HEFCE), secured a 96% increase on her annual pay deal in the body’s final 12 months, accounts published this week show.

The HEFCE was wound up by the Department for Education and replaced by the Office for Students and Research England in April.

Atkins, who was appointed to HEFCE for a five-year term in 2014, had a final remuneration package worth £554,648 once bonuses, pension payments and other benefits were counted. Salary accounted for £528,891 of the total.

Her previous year’s total remuneration was £282,354, of which salary comprised £263,865.

Atkins begins a new role as president of Lucy Cavendish College, University of Cambridge, in October. …”

https://www.express.co.uk/news/uk/990416/housing-crisis-local-government-association-empty-dwellings-bill

Privatisation – more evidence of the downside – Housing sale and leaseback

“A “disastrous” Ministry of Defence property deal could get worse when rental rates are reviewed in 2021, MPs have said.

The MoD’s sale and leaseback arrangement in 1996 with Annington Property Limited had left the department between £2.2bn and £4.2bn worse off over the first 21 years of the contract.

The Public Accounts Committee said the deal has been “disastrous for taxpayers” but could cost them even more when rent is reviewed from 2021.

PAC chair Meg Hillier said: “Taxpayers have lost billions as a result of this appalling deal and there could be worse to come if the MoD fares poorly in rent negotiations.

“The uncertainty over those negotiations is a further slap in the face for those forces families who, for far too long, have endured poor standards of subsidised accommodation.”

Under the deal, agreed during John Major’s time as prime minister, 55,000 houses were sold by the MoD to Annington before being rented back on 200-year leases.

A report by the National Audit Office in January found that rising housing prices since the deal was agreed had left the government between £2.2bn and £4.2bn worse off than it would have been if it had kept the properties.

The rents Annington charges the MoD for the houses – subject to a 58% downwards adjustment to date – are expected to increase significantly when the current agreement ends in 2021.

In its report, which was published on Friday, the PAC said that the average annual cost to rent, manage and maintain each property is £7,807 and recommended the MoD develop a plan to reduce the number of empty properties.

The committee said that the number of empty properties currently stands at more than 10,000 – roughly the same as 21 years ago – despite a 30% fall in the total number of properties rented back from Annington over that period.

It said it was “scandalous that the department still holds so many empty properties at a time of a national housing shortage, and has made almost no progress in 20 years in reducing the number.”

https://www.publicfinance.co.uk/news/2018/07/accounts-committee-blasts-mod-property-deal

The case against privatisation of public services – evidence

“Research conducted in 2015 by the New Economics Foundation for the Trades Union Congress found that outsourced staff at private companies earned less, worked longer hours and were more insecure in their jobs than their counterparts in the public sector. The differences can be stark: a senior care worker for a private contractor will be paid almost half the hourly rate of a colleague in the public sector.

None of this is coincidence. It’s widely accepted that when a low-paid service job, such as cleaning or portering, is contracted out to a company it drives up profits at the expense of workers.

“Through outsourcing, university managers routinely allow low-paid workers to be treated disgustingly, in ways they would never tolerate for their own staff,” says Jason Moyer-Lee , general secretary of the Independent Workers of Great Britain (IWGB), a trade union leading some of the key fights for the rights of college facilities staff. “Yet when we raise these issues, the standard college answer is: ‘This is nothing to do with us; take it up with the contractor’.”

It took 11 years of campaigning by the Unison trade union and students for Soas University of London to agree to bring cleaners in-house, starting this autumn. Last summer, the London School of Economics agreed to do the same. Yet the IWGB is still battling Senate House, the administrative hub of the University of London, for better rights for facilities staff. …”

https://www.theguardian.com/commentisfree/2018/jul/18/cleaners-fair-wages-university-in-house-working-lives

“Dark money lurks at the heart of our political crisis”

“Democracy is threatened by organisations such the Institute of Economic Affairs that refuse to reveal who funds them.

A mere two millennia after Roman politicians paid mobs to riot on their behalf, we are beginning to understand the role of dark money in politics, and its perennial threat to democracy. Dark money is cash whose source is not made public, and which is spent to change political outcomes. The Facebook/Cambridge Analytica scandal, unearthed by Carole Cadwalladr, and the mysterious funds channelled through Northern Ireland’s Democratic Unionist party to the leave campaign in England and Scotland have helped to bring the concept to public attention. But these examples hint at a much wider problem. Dark money can be seen as the underlying corruption from which our immediate crises emerge: the collapse of public trust in politics, the rise of a demagogic anti-politics, and assaults on the living world, public health and civic society. Democracy is meaningless without transparency.

The techniques now being used to throw elections and referendums were developed by the tobacco industry, and refined by biotechnology, fossil fuel and junk food companies. Some of us have spent years exposing the fake grassroots campaigns they established, the false identities and bogus scientific controversies they created, and the way in which media outlets have been played by them. Our warnings went unheeded, while the ultra-rich learned how to buy the political system.

The problem is exemplified, in my view, by the Institute of Economic Affairs (IEA). In the latest reshuffle, two ministers with close links to the institute, Dominic Raab and Matthew Hancock, have been promoted to the frontbench, responsible for issues that obsess the IEA: Brexit and the NHS. Raab credits the IEA with supporting him “in waging the war of ideas”. Hancock, in his former role as cabinet office minister, notoriously ruled that charities receiving public funds should not be allowed to lobby the government. His department credited the IEA with the research that prompted the policy. This rule, in effect, granted a monopoly on lobbying to groups such as the IEA, which receive their money only from private sources. Hancock has received a total of £32,000 in political donations from the IEA’s chairman, Neil Record.

The IEA has lobbied consistently for a hard Brexit. A report it published on Monday as an alternative to Theresa May’s white paper calls for Brexit to be used to tear down the rules protecting agency workers, to deregulate finance, annul the rules on hazardous chemicals and weaken food labelling laws. Darren Grimes, who was fined by the Electoral Commission on Tuesday for spending offences during the leave campaign, now works as the IEA’s digital manager.

So what is this organisation, and on whose behalf does it speak? If only we knew. It is rated by the accountability group Transparify as “highly opaque”. All that distinguishes organisations such as the IEA from public relations companies such as Burson-Marsteller is that we don’t know who it is working for. The only hard information we have is that, for many years, it has been funded by British American Tobacco (BAT), Japan Tobacco International, Imperial Tobacco and Philip Morris International. When this funding was exposed, the IEA claimed that its campaigns against tobacco regulation were unrelated to the money it had received. Recently, it has been repeatedly dissing the NHS, which it wants to privatise; campaigning against controls on junk food; attacking trade unions; and defending zero-hour contracts, unpaid internships and tax havens. Its staff appear on the BBC promoting these positions, often several times a week. But never do interviewers ask the basic democratic questions: who funds you, and do they have a financial interest in these topics? …

While dark money has been used to influence elections, the role of groups such as the IEA is to reach much deeper into political life. As its current director, Mark Littlewood, explains, “We want to totally reframe the debate about the proper role of the state and civil society in our country … Our true mission is to change the climate of opinion.”

Astonishingly, the IEA is registered as an educational charity, with the official purpose of helping “the general public/mankind”. As a result it is exempted from the kind of taxes about which it complains so bitterly. Charity Commission rules state that “an organisation will not be charitable if its purposes are political”. How much more political can you get? In what sense is ripping down public protections and attacking the rights of workers charitable? Surely no organisation should be registered as a charity unless any funds it receives above a certain threshold (say £1,000) are declared.

The Charity Commission announced last week that it has decided to examine the role of the IEA, to see whether it has broken its rules. I don’t hold out much hope. In response to a complaint by Andrew Purkis, a former member of the Charity Commission’s board, its head of regulatory compliance, Anthony Blake, claimed that the IEA provides a “relatively uncontroversial perspective accepted by informed opinion”. If he sees hard Brexit, privatising the NHS and defending tax havens as uncontroversial, it makes you wonder what circles he moves in.

I see such organisations as insidious and corrupting. I see them as the means by which money comes to dominate public life without having to declare its hand. I see them as representing everything that has gone wrong with our politics.

• George Monbiot is a Guardian columnist”

https://www.theguardian.com/commentisfree/2018/jul/18/dark-money-democracy-political-crisis-institute-economic-affairs

Dept of Work and Pensions: Heartless, hopeless, indifferent and arrogant

“A cross-party group of MPs has criticised the Department for Work and Pensions’ “culture of indifference” after it took six years to correct a major error which left chronically-ill and disabled benefit claimants thousands of pounds out of pocket.

An estimated 70,000 claimants were underpaid by between £5,000 and £20,000 between 2011 and 2016 because the DWP failed to ensure they received the correct amounts when moving them from incapacity benefit on to the employment and support allowance (ESA).

The cost of fixing the error, which a public accounts committee’s (PAC) report said stemmed from a string of avoidable management failures, will cost the DWP at least £340m in back payments to claimants and £14m in administrative costs.

Up to 75,000 benefit claimants were underpaid for years.

As well as losing out on thousands of pounds through underpayments, the DWP’s failure to check claimants’ entitlements meant some were also denied their rights to help with dentistry costs, as well as free school meals and free medical prescriptions.

The report criticised the DWP for rushing into the transfer without taking legal advice or making basic checks, brushing aside evidence that people were being underpaid, and ignoring warnings from its own policy advisors that it should pause and fix the process before proceeding.

Even after it became formally aware of its error in 2014, the department failed to act, initially attempting to pass the mistake off as being the fault of claimants. After years of “inertia” it began to put in place a repayment plan in 2017, and then only after receiving advice that it had a legal responsibility to act.

The report concluded the DWP’s lack of urgency in taking six years to start to address the error indicated “a culture of indifference” towards people being underpaid. …”

https://www.theguardian.com/society/2018/jul/18/disability-claimants-owed-340m-after-dwp-blunder-say-mps

“Rise of dealmaker CEOs puts governance skills ‘at risk’ “

“The rise of the commercially-minded “dealmaker” as a local authority chief executive requires a “reappraisal” of council governance skills, according to CIPFA chief executive Rob Whiteman.

Whiteman spoke to Room151 at the 2018 CIPFA conference in Bournemouth, explaining the need for his organisation’s new financial resilience index.

Whiteman said that it made sense for many councils to appoint chief executives with commercial skills, but added that traditional oversight skills are in danger of being lost.

“Councils are now understandably appointing dealmakers, and that is good in terms of developing their commercial and their development opportunities.

“But there is a risk to that. For want of a better word, the town clerk element of being a chief executive is under pressure.

“This is the element which insists on good governance; that insists on options being looked at; that gives advice on there being a fit and proper relationship between officers and members, where officers can speak truth unto power and can give an opinion even if that opinion is unwelcome.”

Whiteman said that hand-in-hand with improved commercial know-how, councils must have “a reappraisal of governance skills because we are placing the taxpayer and public at more risk unless we strengthen the safeguards and assurances that we have”.

He added: “If we are going to have more dealmakers we have to have better governance and better assurance.”

Whiteman said CIPFA’s new index is a necessary response to the decision earlier this year by Northamptonshire County Council to issue a section 114 notice bringing a halt to all but essential spending.

“There is a strong feeling that, as the body that regulates professional conduct and the quality of financial management support in local government, we need to take steps to acknowledge that Northamptonshire was a failure of sector-led improvement.”

Northamptonshire’s section 114 notice was issued in February, five months after a financial peer review commissioned by the Local Government Association raised a number of issues with the authority’s financial management.

“The advice from Max Caller, the independent inspector of Northamptonshire, is that a section 114 notice should have been served earlier and, if it had been, it may have stopped the authority getting to a position which, to the lay person, was one of insolvency,” Whiteman said.

He went onto say that in some authorities, a lack of effective communication between finance officers and top level council decision makers can hinder efforts to avoid financial problems.

He said: “I speak to finance officers who think they are not being listened to by the corporate management team or by members or by the chief executive. On the other hand, I could speak to corporate managers, or members or chief executives, who think finance officers are not listening to them.

“What we cannot allow, as a sector, is the position that people might be heading for financial failure and they don’t know it.”

The proposed resilience index is also intended to help prevent a culture of denial leading to overlooked financial problems , Whiteman said.

“The reason that CIPFA is looking at the index is to make sure we have an alternative to speculation that can be dismissed or discounted.”

He said the index was driven by a need to ensure council finances were heading in the right direction.

“That is not only good for those councils but it is good for the sector,” he said.

Whiteman said that CIPFA would produce the index using its in-house team of 30 analysts, would not take sponsorship to fund it and would not charge councils for it.

“It is important that an independent body such as CIPFA produces a way of warning where failure could occur in a few years’ time,” he said.

“If CIPFA doesn’t do it, who else would do it? And, if nobody does it, could we have other Northamptonshire style failures?”

http://www.room151.co.uk/funding/rob-whiteman-rise-of-dealmaker-ceos-puts-governance-skills-at-risk/

Profligate, cost-cutting council …

No (not yet) EDDC but Hounslow:

“Hounslow Council has spent more than £25million of taxpayers’ money employing external consultants to advise it over the past three-and-a-half years.

A Freedom of Information (FOI) request submitted by the BBC Local Democracy Reporting Service shows the council spent £25,018,721 on consultant fees between the start of 2015 and the most up to date available in 2018.

The biggest area of spend was in consultancy on business matters which was £12,103,360 over the period, equating to more than £3million each year.

The second highest area of spend was £7,777,769 on property consultancy.

To put the figure in context, the council’s total spend for the 2018/2019 financial year will be £139million, whereas in 2014/2015 financial year it was £182.7m. …”

https://www.getwestlondon.co.uk/news/west-london-news/hounslow-council-spends-25million-consultants-14911545

“Harsh winter deepens pothole crisis for struggling councils”

“Councils are losing the battle against potholes, it is claimed today as the number of cars damaged by crumbling roads has reached a three-year high.

Figures from the RAC show that 4,091 call-outs were made over three months for damage commonly attributed to poor road surfaces including damaged shock absorbers, broken suspension and distorted wheels. The statistics, recorded between April and June, were the highest for the three-month period since 2015.

The RAC warned that local roads had been left in a terrible condition by freezing weather at the start of the year when the “Beast from the East” struck. Critics claimed that roads were already in a poor state because of years of underfunding and a backlog of repairs. The Asphalt Industry Alliance claimed in April that £9.3 billion was needed to bring all roads up to scratch.

The government is investing about £1 billion a year in local roads and said recently that another £100 million was being spent to repair routes affected by the severe winter weather.

The RAC has called for 2p a litre to be invested from fuel duty into local roads, in addition to existing budgets, saying that over a ten-year period it would give councils the money needed to “eliminate the backlog in repairs and preventative maintenance”.

David Bizley, the RAC’s chief engineer, said: “Councils have been working hard to fix potholes and general road surface degradation but despite further emergency funding from central government their budgets are even more stretched than in previous years.

“Our figures demonstrate they are not winning the battle and as a result the safety of too many drivers, cyclists and motorcyclists is being put at risk.”

He added: “Central government must now consider how we can develop a long-term plan to improve the condition of our local roads. We urge the Department for Transport to work with the Treasury to ring-fence a proportion of fuel duty receipts over a sustained period to fund this.”

A Department for Transport spokeswoman said that councils were being given more than £6 billion over six years for local roads. “This funding includes a record £296 million through the pothole action fund: enough to fix around six million potholes,” she said.”

Source: Times, pay wall

Shocking survey: Two-thirds of public finance officers have been pressurised to behave unethically

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Its 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed.

This is their report on pressure on public finance officials being pressurised to behave unethically.

“Almost two thirds of finance professionals say they have come under pressure to act in an unethical way at some point in their careers, according to early findings from CIPFA’s ethics survey revealed today.

Of the 63% that said they had faced this kind of issue in the workplace, nearly half (47%) said it had happened once or twice, 29% between two and five times and 23% more than five times.

Pressure was exerted by line managers in 42% of cases, by chief executives or chief finance officers in 30% of cases, and board, cabinet or council in 15% of cases.

This was often done in the form of threats to bypass individuals for promotion and disciplinary action.

Respondents working in auditing firms were told that if they did not comply with a client’s wishes their bill might not be paid or they could lose out on future work.

Only 7% of respondents said they had carried out the unethical request and 29% said they had partially carried out the request. Almost two third (64%) said they had refused to act unethically or gave no answer.

Unethical experiences highlighted included excessive optimism in budgets and business cases, ‘getting around’ financial regulations, unreasonably downplaying risks and accounting for revenue as capital.

Among the comments submitted by respondents were that “ethics [is] seen as theoretical and discarded when convenient for senior management” and “commercialisation of local government is distorting the view of what ethical activity should be”.

The findings were based on 157 responses to the ethics survey as of 30 June. Eighty seven per cent of respondents were qualified accountants, while 73% were CIPFA qualified.

Four in ten respondents worked in local government, 20% in the NHS and the remainder from a variety of sectors including charities and audit firms.

Results were revealed by Rick Tazzini, a member of CIPFA’s ethics working group, at the CIPFA annual conference today. Tazzini said some of the issues were the “kind of things that got Carillion into trouble”.

The survey also revealed relatively low awareness of the code of ethics. Just 76% said they were aware of the code and less than half of these had read it recently.

Tazzini said he was expecting awareness of the code to have been higher.

“It’s a really important document for all of us as professionals,” he said.

Opening the session, Margaret Pratt said: “Every CIPFA colleague should be challenged to take their ethical temperature from time to time.”

She added that members needed to be equipped with “moral courage and resilience”.

Pressure on finance professionals was now greater than it ever has been, she said.

CIPFA’s ethics survey remains live and can be completed here. PF will be reporting on the full findings later in the year.”

https://www.publicfinance.co.uk/news/2018/07/majority-finance-professionals-pressured-acting-unethically-says-survey

Claire Wright concerned about unpaid carers – asks for them to contact her

Could you imagine Swire being concerned about this – concerned, not just anodyne words.

“Some of Devon County Council’s Health and Adult Care Scrutiny Committee will visit Westbank League of Friends to hear from staff who support unpaid carers, later this month, following my proposal for a spotlight review into how unpaid carers who look after friends and family members are faring.

I have seen a confidential report of a focus group meeting that took place last year, which indicates that the 24 people in Devon who took part, are suffering from a lack of support, a lack of money and a lack of respite care….. many reported that their mental and physical health was suffering as a result.

I asked for the (anonymised) report to be published with the June health scrutiny papers, but this was refused as the focus group report was not ever intended to be made public and consent had not been given. Instead a rather more neutral version of the report was published, but as I told the committee, this did not reflect the original report and I don’t believe people’s voices have been heard.

The media reports today that unpaid carers save the economy a massive £60bn a year – https://www.bbc.co.uk/news/uk-40560827 – here’s the BBC story on the subject.

Anecdotally, my conversations with local people 100 per cent support the findings from Devon County Council’s focus group. Many unpaid carers are at their wits end.

I did propose a spotlight review into how unpaid carers are faring but this was not voted on unfortunately. There didn’t seem support from around the room. However, the issue will return to the agenda in September and I will pursue it then.

If you are an unpaid carer and wish to get in touch I would be very pleased to hear from you.

Email me at claire@claire-wright.org

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

Local government in crisis – chilling figures

“Hundreds of councillors and council leaders gathered in Birmingham last week to discuss the big issues facing local government. But while the sun was shining bright there was a destiny dark cloud over head.

We’ve become used to hearing of the dramatic and disproportionate cuts affecting local government. We’ve seen in every community — though some much more than others — the real impact as basic services have been reduced, facilities lost and a fire sale on land and property.

Income from the disposal of assets jumped from £1.2 billion in 2008/09 to £3.2 billion by 2016/17. In fact, almost as much was raised in the final quarter of that year than the whole of 2008.

Local government has also seen a staggering 811,000 jobs lost while at the same time central government has seen an increased workforce.

Whatever has gone might fill local government leaders with sadness, but what is coming down the line is enough to fill them, and all of us with any understanding of public services, with fear.

The Local Government Association issued a stark warning in its usually measured way, underpinned by facts and critical analysis. They highlight a breath-taking jump in the current funding gap of £2.6 billion to £7.8 billion by 2025.

This doesn’t include any rebuilding of frontline services lost as a result of the £16 billion cut in funding; that would be an eye-watering £23.8 billion — much more than the £20 billion announced to “save the NHS”.

Demand on children’s services has been hit hard with 500 child protection investigations every day. Although local government have much less to spend, overall children’s service spending has increased from £5.9 billion in 2008/09 to a forecast £15.4 billion by 2025, already running at £11.6 billion.

Adult social care spend, despite an estimated 1.5 million older people not receiving the care they would have previously been entitled to, has jumped from £14 billion a decade ago to a forecast £22.2 billion by 2025.

In the last six months alone over 8,000 people have been affected by carehome providers collapsing or withdrawing from contracts because of the squeeze.

That’s before the 77,000 families stuck in temporary accommodation including 120,000 children.

This paints a picture of a system ready to fall over. Not just individual councils failing to balance the books, but a whole system failure where a legal challenge to entitlement or new pressure such as the recent increase in National Minimum Wage and National Insurance will be the final straw.

At that point questions will be asked as to who was to blame? That is clear. Local government has done everything asked of it and more. It has taken on a disproportionate burden of cuts through austerity and every year it has highlighted the crisis coming down the line.

It has been central government with a string of toothless secretaries of state and a treasury indifferent to the human disaster developing where blame is due.

They ignore what could be a final warning at their peril.

Jim McMahon is shadow local government minister”

Source: The Red Box (podcast)