The new “magic money tree” appears to have no roots

“… Remember the “magic money tree”? The Conservative party appears to have found it, if the rash of spending promises of new Prime Minister Boris Johnson are anything to go by.

Johnson appears to be doing two things with his promises of billions for railways, tax cuts and “left behind” towns, write the Guardian’s Larry Elliott and Richard Partington: revving up the economy to gain support for his plans with a fallback that more spending could cushion the fallout of a no-deal departure.

Although framed by Johnson as spending headroom at his disposal, economists say the additional firepower is something of an illusion. Thomas Pugh, of the consultancy Capital Economics, said:

This isn’t money sitting in a savings account waiting to be spent. It’s more like borrowing from an overdraft where the limit is set at 2% of annual income. So spending it would result in a higher deficit and more borrowing. …”

https://www.theguardian.com/business/live/2019/jul/29/sterling-new-two-year-low-no-deal-brexit-fears-pound-euro-us-dollar-currencies-business-live?CMP=Share_iOSApp_Other

“More than 4m in UK are trapped in deep poverty, study finds”

“More than 4 million people in the UK are trapped in deep poverty, meaning their income is at least 50% below the official breadline, locking them into a weekly struggle to afford the most basic living essentials, an independent study has shown.

The Social Metrics Commission also said 7 million people, including 2.3 million children, were affected by what it termed persistent poverty, meaning that they were not only in poverty but had been for at least two of the previous three years.

Highlighting evidence of rising levels of hardship in recent years among children, larger families, lone parent households and pensioners, the commission urged the new prime minister, Boris Johnson, to take urgent action to tackle growing poverty.

The commission’s chair, Philippa Stroud, a Conservative peer, said there was a pressing need for a concerted approach to the problem. “It is time to look again at our approach to children, and to invest in our children as the future of our nation,” she said.

Campaigners said the commission showed austerity had undermined two decades of anti-poverty policy. “By cutting £40bn a year from our work and pensions budget through cuts and freezes to tax credits and benefits, the government has put progress into reverse,” said Alison Garnham, the chief executive of Child Poverty Action Group.

The commission’s membership is drawn from experts across the political spectrum, and includes representatives from the Institute for Fiscal Studies, the Joseph Rowntree Foundation and the Office of the Children’s Commissioner. It was set up in 2016 to develop a new way of measuring poverty.

It found that of 14.3 million in the UK in poverty, 4.5 million were in deep poverty – a third of all those on the breadline, and 7% of the population. In cash terms this means a couple with two children would have an income of less than £211 a week after housing costs, and a single parent with one child would be on less than £101.50 a week. …”

https://www.theguardian.com/society/2019/jul/29/uk-deep-poverty-study-austerity?CMP=Share_iOSApp_Other

Johnson makes big promises to (Labour) north, none so far for (Tory) south-west

Critics doubt Boris Johnson can deliver new [Manchester-Leeds] rail route pledge:

https://www.theguardian.com/politics/2019/jul/27/critics-doubt-boris-johnson-can-deliver-new-rail-route-pledge?CMP=Share_iOSApp_Other

All our nuclear eggs in a broken basket (case)

… and, so, far, not a peep out of our Local Enterprise Partnership – who put pretty much all our local eggs in that same government basket …

Wonder what (if anything) Johnson thinks of that?

Today’s Times (pay wall)

Flamanville points to nuclear fiasco

As French existential jokes go, little beats building a nuclear power plant at a place called Flammable. OK, it’s actually Flamanville. But who cares about that sort of nicety — not least when the project’s proving so incendiary?

It was due to be up and running in 2012 at a cost of €3.3 billion. Not only that. Flaming Ville was to be the showcase for the European Pressurised Reactor, the wizzy new tech developed by the state-backed EDF. True, it’s living up to the pressurised bit, at least for EDF boss Jean-Bernard Lévy. He’s just been forced to announce another delay: a howitzer, even by usual standards, of “more than three years”. The end of 2022 is now the earliest start date; a delay bound to jack up project costs that have already exploded to €10.9 billion

The reason? France’s spoilsport nuclear safety authority has ordered EDF to repair eight bits of dodgy welding: who’d have thought nukes had to be welded together properly? And, yes, the whole thing is turning into a nice French farce. Except for one thing, of course: the joke’s on us.”

AND (in more detail):

The latest delay at Flamanville comes after the French Nuclear Safety Authority ordered EDF to repair eight faulty welds at the plant.

Jean-Bernard Lévy, 64, EDF’s chief executive, said: “The time that we will need to prepare the repairs, carry out the repairs, test the repairs and get everything checked and then have the whole plant tested again and prepared to be launched, that will lead to delays of more than three years. So I don’t think it’s possible to commission it before the end of 2022.”

The European Pressurised Reactor at Flamanville was initially due to come on stream in 2012 at a cost of €3.3 billion. In its most recent estimate, EDF said that the costs had risen to €10.9 billion. The latest delay means that this will almost certainly have to be revised upwards.

Critics want EDF to take the reactor off the market, given the difficulties at Flamanville and elsewhere. Plans to build one in Finland are also running more than ten years behind schedule.

Engineers started working on the model in the early 1990s but only one — in China — has so far been switched on.

EDF reported first-half earnings before interest, taxes, depreciation and amortisation of €8.3 billion, up 3.5 per cent from a year earlier. Revenue rose by 4.3 per cent to €36.47 billion.

The French government plans to split EDF into two units under a state-owned parent company. EDF Bleu will hold the nuclear assets and be wholly owned by the state and EDF Vert will concentrate on renewable energy and services, with a minority stake in private hands.

The defective welds responsible for the latest setback at Flamanville were detected last year. EDF said that it would repair most of them but argued that those in the building enclosing the reactor could be left for now. Those are difficult to access and to repair.

EDF said that it was “highly improbable” that they would break and urged nuclear inspectors to allow the construction programme to go ahead without repairing them but the watchdog insisted that they should be fixed before the reactor was started up.

EDF said it would agree with the watchdog how to repair the welds.

“Further delay for Hinkley-style reactor raises pressure on EDF”

“The company building Britain’s new nuclear reactors has announced a further delay to its troubled high-profile project in France.

EDF, the French state-owned group, said that the launch of its nuclear reactor at Flamanville in Normandy had been put back three years until the end of 2022.

The group is leading the project to build two similar reactors at Hinkley Point in Somerset at a cost of £19.68 billion.

Vocal Brexiteer James Dyson buys second mega-million Singapore home

“Weeks after paying £43m for the city-state’s most expensive penthouse, the inventor has reportedly lined up a £26.5m house …

Dyson, 72, a prominent supporter of Brexit, announced plans in January to move his company’s head office from Britain to Singapore to be closer to its fastest-growing markets. His firm plans to build its first electric car in the city-state.

Dyson has also purchased a three-storey “super penthouse” at the top of Singapore’s tallest building. He reportedly paid £43m for the five-bedroom property which comes complete with a 600-bottle wine cellar.

A spokeswoman for his company, Dyson Limited, said: “We do not comment on the private affairs of the Dyson family.”

When contacted about the previous penthouse purchase, a spokesman said: “Given the decision to locate the headquarters in Singapore and the growing focus of the company’s business in the region, of course James Dyson has bought a property there.”

https://www.theguardian.com/technology/2019/jul/26/james-dyson-reported-to-have-bought-second-ultra-luxury-singapore-home?CMP=Share_iOSApp_Other

CORRECTION: The Tory hopeful with 3 homes who says he’s ordinary bloke is NEW HOUSING MINISTER

New unitary authorities … the criteria restated for counties AND districts

The Communities Secretary, James Brokenshire, has set out the circumstances in which he would be prepared to issue a formal invitation to councils under the Local Government and Public Involvement in Health Act 2007 to submit proposals for the establishment of new unitary councils.

In what could be one of his last acts as Secretary of State, with the prospect of Boris Johnson becoming Prime Minister and choosing a Cabinet, Brokenshire said in a written ministerial statement yesterday that he would also set out how he intended to assess any unitary proposals councils make in response; and the Government’s continued approach to any proposals two or more district councils may make to merge in order to form a new larger district council.

The Secretary of State said: “Locally-led changes to the structure of local government, whether in the form of unitarisation or district mergers, can – with local support – be an appropriate means of ensuring more sustainable local government and local service delivery, enhanced local accountability, and empowered local communities. This statement …. continues the Government’s commitment to supporting those councils that wish to combine, to serve their communities better and will consider unitarisation and mergers between councils when locally requested.

“However, I recognise that unitarisation may not be appropriate everywhere. I also recognise that it is essential that any local government restructuring should be on the basis of locally led proposals and should not involve top-down Whitehall solutions being imposed on areas. The Government does not support top-down unitary restructuring. This has been the Government’s consistent approach since 2010.”

The Secretary of State said he also wanted to provide further clarity for those councils who might consider the possibility of restructuring, by setting out the factors councils should consider and the processes to be followed – including with regard to local support.

For councils wishing to restructure to form unitary local government, the first step of the statutory process as set out under the 2007 Act is for the minister to issue an invitation to councils to submit proposals.

Brokenshire said there were two circumstances in which he would consider issuing such an invitation.

The first circumstance, he said, is where the following two conditions are met:

There is a local request for an invitation.

That he considers that the request “demonstrates local opinion is coalescing around a single option which is reasonably likely to meet the existing publicly announced criteria for unitarization”.

The Secretary of State said, in forming his view, he would carefully consider the request, including the groups making and supporting it and their reasons for so doing. “Where I issue an invitation, I would do so to all those councils that I consider to have regard to the area concerned, whether or not they were among those who had made the original request.”

The minister said the second circumstance was where he considered that doing so would be appropriate given the specific circumstances of the area, including in relation to the long-term sustainability of local services. This was the situation in which his predecessor, Sajid Javid, issued an invitation to the councils in Northamptonshire, he said.

“Following such an invitation, it would be for the councils concerned to decide whether to develop and submit proposals for unitarisation, either individually or jointly by two or more councils.”

In the statement Brokenshire confirmed that he would assess any locally-led unitary proposal that he received against the criteria for unitarisation announced to Parliament in 2017.

These criteria state that subject to Parliamentary approval a proposal can be implemented, with or without modification, if the Secretary of State has concluded that across the area as a whole the proposal was likely to:

improve the area’s local government;

command “a good deal of local support across the area”; and

cover an area that provides a credible geography for the proposed new structures, including that any new unitary council’s population would be expected to be in excess of 300,000.

On district council mergers, the Secretary of State confirmed that where two or more district councils submit a proposal to merge, he would assess this against the criteria for mergers announced to Parliament in November 2017 and which had been used since then.

“The statutory process for such mergers does not involve my inviting proposals, and I recognise that particularly small district councils may wish to propose merging as a natural next step following a number of years of successful joint working, sharing of services and senior management teams,” he said.

The criteria for district council mergers are that, subject to Parliamentary approval, a proposal to merge would be implemented if the minister had reached a judgement in the round that if so implemented it would be likely to:

improve the area’s local government;

command local support, “in particular that the merger is proposed by all councils which are to be merged and there is evidence of a good deal of local support”; and

the area is a credible geography, consisting of two or more existing local government areas that are adjacent, and which, if established, would not pose an obstacle to locally-led proposals for authorities to combine to serve their communities better and would facilitate joint working between local authorities.

Brokenshire said: “This statement is intended to provide clarity to councils and communities and help ensure that time and effort are not wasted on pursuing proposals which are unlikely to get the go ahead. It is important that those seeking to pursue locally led proposals are confident that there is a broad basis of common local support for the proposals to avoid unnecessary local conflict and distraction from the delivery of quality public services. The statement underlines the need for any proposals to be innovative, improve services, enhance accountability, have local support and deliver financial sustainability if they are to be taken forward.

“Moreover, restructuring is only one of the different ways that councils can move forward. Joint working with other councils and partners could also be an appropriate and sustainable way forward. Such joint working can take a variety of forms ranging from adopting joint plans, setting up joint committees, and sharing back office services, to establishing Combined Authorities, and may extend across county boundaries. Those in an area will know what is best – the very essence of localism to which the Government remains committed.”

https://www.localgovernmentlawyer.co.uk/governance/396-governance-news/41073-communities-secretary-sets-out-circumstances-in-which-unitary-proposals-would-be-considered

“Sidmouth rated as one of the most expensive holiday spots in UK”

https://www.sidmouthherald.co.uk/news/hotel-prices-in-sidmouth-among-highest-in-uk-1-6173376

Sick, elderly people ripped off – government pockets £31 million fine for it

“Standard Life Assurance Limited has just been fined £30,792,500 by city watchdog the Financial Conduct Authority.

What did they do to deserve it? Sold people the wrong pensions that would have seen them miss out on money every single year for the rest of their lives.

Worse, it was the people with health problems that were mis-sold.

Announcing the fine, the FCA’s Mark Steward said staffs were offered incentives to sell policies over the phone without checking they were suitable “which led to unfair outcomes for some customers”.

Significant numbers of staff received bonuses that doubled their salary for making these sales, which saw thousands of customers miss out on an average of more than £1,500 each as a result. …”

https://www.mirror.co.uk/money/city-firm-fined-31million-mis-18668642

How has Devon fared under Theresa May?

Badly – crime, education, homelessness and health and social care have all got much worse, only unemployment has improved with the gig econony and zero hours contracts:

https://www.devonlive.com/news/devon-news/how-devon-changed-under-theresa-3123246

NHS privatisation : follow the money – £9.2 billion to be precise

On the back of this article saying £9.2 billion has already gone from the NHS to private companies:

https://www.theguardian.com/society/2019/jul/21/private-firms-nhs-budget-matt-hancock-promise?CMP=Share_iOSApp_Other

It’s good to be reminded of this oldie:

Adult social care vastly underfunded in Devon

“A new report has found that Devon County Council to be one of the lowest spenders on adult social care.

Most adult social care spending in England is paid for by local councils.

The report, commissioned by the Salvation Army, examined nationwide social care spending of rural and urban councils and concluded that Devon was among the worst.

The charity calculated the “spending potential” for over-65s with a disability of every local council and unitary authority.

In Devon, the theoretical per person spending was approximately £6,900, a fraction of the £32,000 that Lambeth Council in London can spend.”

https://www.bbc.co.uk/news/live/uk-england-devon-48987369

Data used to justify fire station closures – allegation of serious flaws which should lead to withdrawal of consultation document

Owl has received a link to a communication to Sarah Randall Johnson, DCC Chair of Devon & Somerset Fire & Rescue Authority about Fire Station closures and the data used to justify them.

This is somewhat technical, but the substance is that the allegation seems to be that Fire Service has manipulated data (possibly without realising it but possibly deliberately) to present it in a way that is more favourable to them. The writer urges that, because of serious flaws, the document should be withdrawn.

Owl is no mathematician and leaves it to those who are of a more mathematical nature to challenge the assertions made:

“Consultation document misleading, over 600,000 people face increased life risk

My email to Sara Randall Johnson, Chair of Devon & Somerset Fire & Rescue Authority, sent yesterday:

Dear Fire Authority Chair,

Whilst I am sure you were unaware, the consultation document you have put your name to is deliberately misleading. Sadly, it appears this has been done to deceive the residents of Devon & Somerset and I would urge you to withdraw the document.

My experience of FSEC modelling made me doubt the claims made by ACFO Pete Bond in his BBC interview on 2nd July, so I submitted questions to the Safer Together Programme Team. Their answers, and another D&SF&RS document (attached), confirm my suspicions that the presentation of the risk modelling outcomes are deliberately misleading.

The reduced risk claim is frankly fraudulent, as it is based on a comparison for the future, which assumes all the service’s fire engines are available, with the current situation, which assumes several fire engines are not available. The excuse given is that crewing and contract changes will ensure all appliances will be available in future. That is outrageous speculation and it is highly unlikely that will ever be achieved.

So, the only honest and responsible method is to compare current theoretical full availability with future theoretical full availability. That comparison shows, although not very clearly in the public consultation document, an extra death every other year on option 5 (25 extra in dwellings and 22 extra in RTCs in 100 years). A figure that will be higher, as not all deaths have been included in the results. Fire deaths not in dwellings, which in some years have exceeded those in dwellings, and deaths at non-fire incidents, other than road traffic collisions, have not been included.

The figure shown for RTCs is also highly suspicious, as the service saves many more lives at RTCs than it does at dwelling fires. Delayed responses will therefore impact more on RTC fatalities than on dwelling fire fatalities. FSEC modelling in other fire & rescue services show that for every extra death in a dwelling fire there can be 15 extra deaths in non-fire incidents, as a direct result of longer response times.

Although the reply I received states that the modelling for RTCs was based on attendance times for the first two fire engines, the figures in the consultation document suggest that is not the case. In option 5, fourteen second fire engines are taken out of use during the day, yet it is claimed that will make no difference to RTC fatalities (same result as for option 4). This suggests that the figures used in the consultation document are for first fire engine only, so once again deliberately misleading. It is also concerning that modelling figures have not been provided for property damage, which is also certain to increase if the proposals go ahead.

The figures for option 6 are also dubious and wholly unreliable. I am told that the roving fire engines were “in certain locations for the purpose of the modelling”. Whilst there may be odd occasions when a roving fire engine happens to be near enough to an incident to provide an improved response time, the random nature of emergencies means there is a much higher probability that it will not. Evidence of this unreliability can be found in the Analytical Comparison of Community Impacts from Service Delivery Operating Model document, dated June 2019. This is stated to be “the evidence base to assess the impact of changes to our Service Delivery Operating Model”. This shows the outcomes for options 5 and 6 as the same, which means there is no improvement on response times for roving fire engines.

Whilst the Analytical Comparison document seems generally more accurate than the consultation document, there are still some concerning conclusions in it. For example, on page 45, the increased response time shown for Porlock and Woolacombe, if they are closed, is just two to five minutes. Yet the nearest fire engines are Minehead and Ilfracombe respectively, both six miles away. Even Lewis Hamilton could not achieve that on those roads in even light traffic. Similarly, the map on page 46 shows day crewing at Barnstaple only increasing first pump response time by one to two minutes. The reality is that at night, with On Call Firefighters responding from home, it would be an increase of around four minutes. These outputs suggest the results have been manipulated to appear less severe.

However, what the Analytical Comparison document does reveal is that over 600,000 residents will face an increased risk to their lives if the full proposals are carried out (262,486 households x 2.3 average occupancy = 603,718 people). That detail should not be kept secret, the public deserve to know before responding to the consultation. It is also very disturbing that the station risk profiles for every fire station have suddenly been removed from the D&SF&RS website. Removing recent (2018/19) performance information during a consultation is not being responsible and accountable.

I would add that I requested copies of the actual modelling data used, but this has not been supplied.

I can’t believe that you would be happy about the public and Fire Authority Members being misled in this way. Please have the document withdrawn and postpone the consultation until a revised document can be published showing full, accurate and honest details of the impact of these cuts. Given the seriousness of this matter I have copied this email to Fire Authority Members and other concerned parties.

Yours sincerely
Name notshown”

https://stopfirecutsdevonandsomerset.blogspot.com/2019/07/consultation-document-misleading-over.html

Profile of blogger of above information (Tony Morris):

“I spent 32 years in the fire service in Bedfordshire and West Sussex. My last six years in the service were as Operational Planning Officer responsible for contingency planning. I was then Senior Emergency Management Adviser for West Sussex County Council for 15 years, covering all areas of emergencies and business continuity.

I served on several inter-agency groups at local, regional and national level dealing with major incident procedures & training, maritime and airport emergencies, incidents involving hazardous materials (CBRN, COMAH etc.), telecommunications and other critical infrastructure.

I have studied how fire services operate and how major incidents are handled in different parts of the World. All this has given me a good understanding of the complexities of emergencies and how to deal with them, as well as a keen eye to spot inadequacies in planning, training or resources.

Now fully retired I am free to challenge ill-considered cuts to the fire & rescue service and my blogs are intended to alert the public to the truth behind the spin. The first blog covered West Sussex, where I live, and the second Devon, where I was born and raised.”

Fingerprint analysis backlog in south west – some taking up to 12 months

Hello, Police and Crime Commissioner Hernandez, hello …

“… Figures show more than 830 fingerprint cases were waiting to be analysed by South West Forensic Services in May.

Examination of some digital material was being delayed by up to 12 months, according to the Police Federation.

South West Forensics said it was urgently recruiting staff to “cope with demand” and it was “committed to safeguarding victims of crime”. …”

https://www.bbc.co.uk/news/uk-england-48913467

“School-holiday pressure likely to push food bank usage to ‘record levels’ “

“Food bank usage is expected to rise again when schools break up this summer, a charity has said.

The Trussell Trust has said it fears UK food banks will experience their busiest ever summer in 2019.

A huge 87,496 food parcels went to children in the UK in summer 2018 – a 20% increase on the previous summer, and the charity expects this trend to continue.

The trust said that more than a third of all emergency food parcels distributed by food banks in the its network go to children, and that extra holiday-time financial pressure placed on families who are entitled to free school meals during term time would fuel the rise.

The total number of food parcels handed out to children and adults between 1 July and 31 August last year was 240,000. The areas that received the most food packages in 2018 were the North West (24,000), London (17,000) and East of England (16,000).

To combat UK hunger, the charity is calling for the government to end the five-week wait for universal credit payments.

Emma Revie, chief executive of the Trussell Trust, said: “Food banks will do all they can to help families over the summer, with many running holiday clubs to support parents who find that their income simply won’t stretch to meet the extra pressure of missing free school meals or paying for additional childcare during the holidays.

“But no charity can replace the dignity of having enough money for the basics.”

Revie called on the government to ensure that benefits reflected the true cost of living and that work is secure and pays the real Living Wage. …”

https://www.publicfinance.co.uk/news/2019/07/school-holiday-pressure-likely-push-food-bank-usage-record-levels

Extreme poverty becoming more common

Extreme poverty – where families are routinely unable to afford regular meals, wash clothes or provide their children with basic items such as beds and sheets – is becoming more common, according to frontline family support workers.

Three-quarters of support professionals such as health visitors and social workers said they had seen an increase in the numbers of families they regularly worked with who experienced destitution and were in need of basic financial support.

Despite more families facing greater difficulties, official support was harder to come by, the survey found. “The only substantive increase in support over the last year was the increase in the number of families support workers have seen using food banks,” it read.

The survey of 1,290 frontline family support workers from 616 organisations across the UK was published by the poverty grants charity Buttle UK. It said it was undertaken to provide a “thermometer reading” of the lives of some the UK’s most vulnerable families.

It comes amid rising concern that alongside headline increases in relative poverty in recent years – more than 4 million children in the UK live below the breadline – a cohort of the very poorest families is experiencing the extreme and intractable form of poverty known as destitution.

Destitution is defined as experience of at least two of six measures over the previous month, including eating fewer than two meals a day for two or more days; or as a weekly income after housing costs of £70 for a single adult or £140 for a couple with children – an amount below which people “cannot meet their core material needs for basic physiological functioning from their own resources”.

Last week, the MPs Frank Field and Heidi Allen warned that austerity cuts meant that the poorest communities were now “blighted by the constant spectre of destitution”. An estimated 1.5 million people in the UK, including 350,00 children, experienced destitution in 2017. …”

https://www.theguardian.com/society/2019/jul/15/destitution-on-the-rise-say-frontline-family-support-workers?CMP=Share_iOSApp_Other

“New PM given stark warning over future of local councils”

“The next prime minister has just 100 days to “save” local government, a think-tank has warned.

In their first 100 days, the new leader must provide a one-year emergency settlement for local government, drop the council tax referendum requirement and come up with a strategy for health and social care funding.

These are the recommendations from the Local Government Information Unit think-tank, whose Local Finance Taskforce paper was published today. The report is based on evidence taken from 254 senior figures in local government.

Jonathan Carr-West, chief executive of LGiU, said: “The next prime minister will have 100 days to save local government when he is elected on 23 July.

“At the moment, councils have no idea how they will be funded this time next year. They face a financial cliff edge on 31 March 2020 and currently have no ability to budget or plan their services for the year ahead.

“Some may soon be forced to take very difficult decisions, based on their worst-case scenario budget estimates – making redundancies, stripping down services, selling valued public assets – that may turn out to be completely unnecessary.”

LGiU noted, from its previous research, that one in 20 councils fear it will be unable to fulfil statutory duties this year, while one in 10 expects to face legal challenges due to service cuts.

The think-tank called on the next prime minister to set out a plan for local government finance that considers overall quantum, uncertainty and risk, adult social care, business rates, council tax and other sources of funding.

On business rates, LGiU noted that despite a commitment to moving to 75% business rates retention by 2020, there is still little detail on how this will be redistributed, and called for a strategy to published “as a matter of urgency”.

The council tax referendum threshold – whereby councils must hold a local referendum on decisions to increase council tax beyond 3% – is “outdated and ripe for removal” the report said.

“Local government deserves better and local government deserves more,” Carr-West concluded.”

https://www.publicfinance.co.uk/news/2019/07/new-pm-given-stark-warning-over-future-local-councils

NHS: Councils vow to fight £2.35bn business-rates court challenge

“The Local Government Association (LGA) will support 45 councils defending a challenge to business rates levied on NHS hospital properties that could see £2.35bn clawed back and set a significant precedent.

Consultants advising a group of 17 NHS trusts challenging the business rates on their properties said this week that a High Court trial has now been set for a test case in which Derby Teaching Hospitals NHS Foundation Trust and the others will seek 80% relief on its rates bill.

The move aims to gain the same charitable-status rates relief enjoyed by many private healthcare operators and, according to property firm Altus Group, would see the affected trusts get mandatory relief on their business rates backdated to April 2010 – costing town halls and the government around £2.35bn.

Data released by Altus ranked the Royal London Hospital in Whitechapel, east London, as the biggest single source of business rates payments to any council affected by the challenge.

It said the hospital would pay £9.16m in business rates in the current financial year to Tower Hamlets Council in London.

Altus said the Queen Elizabeth Hospital in Birmingham and Bristol’s Southmead Hospital will pay £7.15m and £5.99m respectively to their local collecting authorities.

NHS Trusts – and other organisations – have the right to challenge their business rate assessments if they believe they are not fair and correct.

However, formal advice pre-dating the 2017 revaluation suggested trusts are not entitled to relief under Section 47 of the Local government Finance Act 1988 as they were not considered charitable organisations but public-sector funded organisations with boards of directors and rather than trustees.

The LGA, which is the lobby group that represents the vast majority of English councils, said it would back town halls involved in the November challenge on that basis.

“The LGA is supporting member councils who have received applications for mandatory relief from business rates on behalf of a number of NHS trusts and are working with them,” it said.

“We have sought legal advice from counsel.

“We believe that NHS Trusts and Foundation Trusts are not charities, and that the applications for rate relief are therefore unfounded.”

Altus Group said around one in four private hospitals are registered as charities – and benefit from the 80% mandatory business rates relief.

It said Nuffield Health, is the UK’s third largest charity by income.

Altus head of UK business rates Robert Hayton said many people would consider it “iniquitous” that NHS hospitals were treated like businesses and called on the government to end the dispute before the Derby-led case came to trial.

“If the case was successful it risks setting a precedent for other deserving public services with the significant loss in revenue which goes to fund essential public services having to shift to businesses at the next revenue neutral revaluation in 2021 at a time when the tax burden is already far too high,” he said.

The court case is scheduled for trial at the Royal Courts of Justice in the week commencing 4 November.”

Councils vow to fight £2.35bn business-rates court challenge

“More cuts to bus services would leave MILLIONS unable to travel to school or work”

“Millions would find it difficult getting to hospital, school, work or shops without bus services, research shows.

As cuts continue to result in routes being axed across the country, 83% of people think it would be hard to get to shops and town centres if bus services were not available.

Around 75% said the same about work, and hospitals or GP surgeries.

David Brown, chief executive of bus operator Go-Ahead which was behind the survey, said: “Without buses, it would be a tiresome daily struggle for many people simply to get to work or school.

“It’s essential the nation puts in place a meaningful strategy to ensure services can prosper.

“A single bus can take as many as 75 cars off the road, with obvious benefits in terms of relieving congestion and pollution. It’s time for politicians to sit up and take notice.

Buses need to be given greater priority in road design if we want to achieve the Government’s broader policy goals in improving air quality, combating loneliness and regenerating local communities.”

The poll of 2,000 people revealed 63% think schools would be hard to get to without a bus.

The research also showed the role of buses is underestimated.

Over half of those quizzed believe less than 40% of public transport journeys are by bus – in fact it is about 67%.

A cross-party group of 23 MPs last week backed calls for a National Bus Strategy, a key demand of the Campaign for Better Transport.”

https://www.mirror.co.uk/news/politics/more-cuts-bus-services-would-17535584