Fat cats getting fatter

“… A financial elite plunged the country into calamity and effectively got away with it unscathed, while workers suffered the longest period of reduced pay since the Victorian era. Meanwhile public services, social security and secure jobs were slashed. It has become increasingly clear – as the Panama Papers underscored – that a significant chunk of our economic elite simply do not like paying tax in this country.

The problem is that this injustice is met with resignation, rather than anger. While rage at the smaller misdemeanours of the poor – such as benefit fraud – seems easy to stir, destructive behaviour on this far greater scale is discussed like the weather. The rich pay themselves ludicrous sums of money, major corporations avoid tax, sometimes it rains …”

http://gu.com/p/4tg5d

“Those who can’t afford a home are being abandoned”

“Cash from council sell-offs will go to high-earning first-time buyers. It’s a huge blow to social housing.

Is this the worst thing this government has done? That’s a tough choice for those low-earning households written off as unlikely to vote Tory. Governments come and go, attempting to reverse each other’s actions – Labour spends more, then Tories cut back, but the housing and planning bill now in the Lords will do virtually irreparable damage.

The bill takes away properties from those who can never afford to buy, to give a large subsidy to better-off aspiring under-40s to buy starter homes. Council and housing association homes will be sold off, deliberately transferring housing provision from the worst-off to those above them – another trickle up.

This bill forces housing associations to sell homes to tenants (probably only the better-off ones) at a discount. To compensate housing associations, councils will be obliged to sell their most valuable properties – so two social homes are lost for each one sold. The money raised by the local authority sales will also pay for 20% discounts to first-time buyers of starter homes at prices of up to £450,000.

All parties want more home ownership, falling fast because of high prices. Generation rent is paying more to landlords than a mortgage costs. The injustice is in making councils pay for this subsidy from resources earmarked for families on waiting lists, instead of meeting it from general taxation.

Once sold, these homes can never be brought back into the social sector. Of the 2m council properties sold so far, over a third have ended up with private landlords who charge high rents. For every nine council homes sold, only one replacement has been built.

That’s why this is an un-housing bill. It will lose 180,000 social homes in the next five years, with 88,000 council homes gone, according to the local government association. George Osborne’s eye-catching 1% cut to social rents has already stopped dead plans to build 14,000 social homes, says the Institute for Fiscal Studies. Nor does the rent cut help most tenants, who just get it clawed back from housing benefit.

Worse is to come. As more people have moved on to universal credit, with their rent no longer automatically paid, 89% have fallen into arrears so far, further depleting money for new social housing. A third of housing associations are building no new affordable homes.

The bill is punitive towards tenants, making any council-house family who together earn more than £30,000 (£40,000 in London) pay a market rent, often so steep they will have to leave. The Treasury will snatch this pay-to-stay extra rent – so it can’t be used for local housing. New tenants only get short tenancies of two to five years so they risk joining the insecure multitude of families in the private sector with six-month rental agreements.

Security was the great gift of social housing. A family knew they would stay near their jobs and schools, make local bonds and join lasting communities. Good estates have stable populations, which include some people with average incomes. How do you educate children who keep moving schools, never settling? Already there are 1.5 million children growing up in private rented homes, without security of tenure.

A family support worker I spoke to last week was struggling to help a family who had moved four times in just over two years – because of temporary housing and short tenancies – with the children moving schools each time. One mother, sent to a distant town, had been leaving home for a bus at 6am every morning to try to keep her children in their old school two hours away, in the hope she would find a home in their old neighbourhood; but she had to give up.

A few weeks ago I spent time in court watching eviction cases, talking to tenants whose lives had become rootless through insecure jobs causing arrears. Landlords are eager to re-let flats at higher rents as prices soar. Most of those families will never reach the safe haven of a council home.

Ending social housing is part of the great escape from the welfare state planned by David Cameron and Osborne. But they may yet again be tripped up by their failure to think beyond ideology. Are they really willing to abandon the third of citizens who can never join their homeowning democracy? Tipping them on to the street is embarrassing, which is why the rising number of street homeless were given a small bung in the budget.

If not abandonment, then there are only two options: build social housing at a cheap rent; or leave people to private landlords where housing benefit picks up the bill. Even capped, housing benefit is extravagantly wasteful when – as Labour’s housing spokesman, John Healey, points out – building social housing makes a profit from rent after 20 years, by far the cheaper option. The government hasn’t dared abolish councils’ duty to house the vulnerable or homeless families with children, but how can they do that with ferocious budget cuts and this bill stripping away existing properties?

No wonder Tory as well as Labour council leaders are up in arms. Surrey’s leader wrote to the Guardian to protest at being forced to sell his council houses. Good for the Lords, who tonight followed up last week’s rebellions with more amendments to pay-to-stay plans. Valiant objections from trusted crossbenchers, such as Bob Kerslake, former head of the civil service, may force the government to soften some terms.

But nothing will prevent the main provisions passing: this is the first bill under English votes for English laws, stopping Scottish MPs voting – so despite some Tory rebels, it will pass in the Commons easily.

Eventually only real-world consequences can force the government to reconsider. Though housing is a fast-rising public concern, this bill has had too little attention. Though 74% worry about housing themselves or for their children or grandchildren, this demolition of social housing is still below the political radar. Ownership is political dynamite, but social housing gets less traction.

Ask how this government plans to house the many who could never afford full-cost rents and it has no answer. In their magical thinking, if council estates are sold off, the troublesome poorer denizens will melt into thin air.

This bill takes a wrecking ball to the great social housing ideals founded by Octavia Hill and other philanthropists who understood that decent housing is the bedrock of a decent society.”

http://gu.com/p/4te9m

“10 ways the ‘disgraceful’ Tory Housing Bill is being quietly torn to shreds”

“George Osborne’s housing plans are not going well.

Remarkable scenes have been unfolding in the House of Lords over the last two weeks. Piece after piece of the Tories’ “disgraceful” Housing Bill has been torn to shreds by peers who say it could destroy social housing as we know it. bFlagship David Cameron policies like Starter Homes, the Pay to Stay ‘tenant tax’ and council homes sell-off have all been butchered.

These days Labour is calling the law everything from “half-baked” to a “dog’s breakfast”.

It’s an eye-watering 206 pages long, and some of the major changes involve changing a single word.

That means it’s easy to lose sight of just how many climbdowns and defeats the Tory government has suffered in the unelected House.

So here’s a list of all of biggest ones so far after three days of House of Lords debate.

There could be more to come – as the law will return to the Lords for two more days on April 20 and April 25. …”

http://www.mirror.co.uk/news/uk-news/10-ways-disgraceful-tory-housing-7781908

A scary description of the state we are in (and a manifesto for Local Enterprise Partnerships?)

“Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning.

Attempts to limit competition are treated as inimical to liberty. Tax and regulation should be minimised, public services should be privatised. The organisation of labour and collective bargaining by trade unions are portrayed as market distortions that impede the formation of a natural hierarchy of winners and losers. Inequality is recast as virtuous: a reward for utility and a generator of wealth, which trickles down to enrich everyone. Efforts to create a more equal society are both counterproductive and morally corrosive. The market ensures that everyone gets what they deserve.

We internalise and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances.

Never mind structural unemployment: if you don’t have a job it’s because you are unenterprising. Never mind the impossible costs of housing: if your credit card is maxed out, you’re feckless and improvident. Never mind that your children no longer have a school playing field: if they get fat, it’s your fault. In a world governed by competition, those who fall behind become defined and self-defined as losers. …

… The privatisation or marketisation of public services such as energy, water, trains, health, education, roads and prisons has enabled corporations to set up tollbooths in front of essential assets and charge rent, either to citizens or to government, for their use. Rent is another term for unearned income. When you pay an inflated price for a train ticket, only part of the fare compensates the operators for the money they spend on fuel, wages, rolling stock and other outlays. The rest reflects the fact that they have you over a barrel.

Among the results, as Paul Verhaeghe documents in his book What About Me? are epidemics of self-harm, eating disorders, depression, loneliness, performance anxiety and social phobia. Perhaps it’s unsurprising that Britain, in which neoliberal ideology has been most rigorously applied, is the loneliness capital of Europe. We are all neoliberals now.” …

… Perhaps the most dangerous impact of neoliberalism is not the economic crises it has caused, but the political crisis. As the domain of the state is reduced, our ability to change the course of our lives through voting also contracts. Instead, neoliberal theory asserts, people can exercise choice through spending. But some have more to spend than others: in the great consumer or shareholder democracy, votes are not equally distributed. The result is a disempowerment of the poor and middle. As parties of the right and former left adopt similar neoliberal policies, disempowerment turns to disenfranchisement. Large numbers of people have been shed from politics. …

… The invisible doctrine of the invisible hand is promoted by invisible backers. Slowly, very slowly, we have begun to discover the names of a few of them. We find that the Institute of Economic Affairs, which has argued forcefully in the media against the further regulation of the tobacco industry, has been secretly funded by British American Tobacco since 1963. We discover that Charles and David Koch, two of the richest men in the world, founded the institute that set up the Tea Party movement. We find that Charles Koch, in establishing one of his thinktanks, noted that “in order to avoid undesirable criticism, how the organisation is controlled and directed should not be widely advertised”. …

… The words used by neoliberalism often conceal more than they elucidate. “The market” sounds like a natural system that might bear upon us equally, like gravity or atmospheric pressure. But it is fraught with power relations. What “the market wants” tends to mean what corporations and their bosses want. “Investment”, as Sayer notes, means two quite different things. One is the funding of productive and socially useful activities, the other is the purchase of existing assets to milk them for rent, interest, dividends and capital gains. Using the same word for different activities “camouflages the sources of wealth”, leading us to confuse wealth extraction with wealth creation. …

… These anonymities and confusions mesh with the namelessness and placelessness of modern capitalism: the franchise model which ensures that workers do not know for whom they toil; the companies registered through a network of offshore secrecy regimes so complex that even the police cannot discover the beneficial owners; the tax arrangements that bamboozle governments; the financial products no one understands.”

• George Monbiot’s How Did We Get into This Mess?

extracts from
http://gu.com/p/4tbfb

How to become a “high achiever” the Alan Duncan MP way

“The fees office began insisting that MPs provide documentation to prove that they have a mortgage only in 2003. In the last six years, Mr Duncan has claimed £127,658 under the second home allowance – £126 short of the maximum. Mr Duncan is rich thanks to his career as an oil trader before his election as an MP.

He worked with Marc Rich, the disgraced commodities trader, and has maintained his connections with the energy industry. He declares that he still owns Harcourt Consultants, which advises on oil and gas matters. Last year, it emerged that Mr Duncan’s private office was being funded by donations from Ian Taylor, the chairman of Vitol, a controversial oil company. Mr Duncan was shadow business secretary with responsibility for energy policy at the time. He later declared the funding in the register of MPs’ interests.

In the 1990s, Vitol paid $1 million to Arkan, the Serbian war criminal, to act as a “fixer” on a deal in Slobodan Milosevic’s Serbia that had collapsed. In 2007, the company was fined over the oil-for-food scandal. Vitol pleaded guilty to larceny in a New York court and paid $13million to the Iraqi people in restitution.

Mr Duncan’s main home in Westminster has also attracted controversy in the past.

Mr Duncan bought his first house on the street in 1986 and lent it to John Major as the base for his leadership campaign. In 1992, Mr Duncan was elected and was soon made a minister under John Major.Within weeks it emerged that he had lent his elderly next door neighbour money so that he could buy his home under the right-to-buy legislation.

The neighbour bought the 18th century council house at a significant discount and sold it to Mr Duncan just over three years later. In the ensuing furore, Mr Duncan resigned from his ministerial position.
He then combined the two properties into one. Mr Duncan said yesterday: “It was me who raised the issue of gardening costs with the fees office. “Although it was a legitimate claim, we agreed that it might be seen as too large a single item and therefore I did not claim it.”

http://www.telegraph.co.uk/news/newstopics/mps-expenses/5304976/Alan-Duncan-claimed-thousands-for-gardening-MPs-expenses.html

“Foreign aid spending to overtake council funding next year”

“Foreign aid spending will outstrip the amount given to councils to collect bins, install street lights and run local services for the first time next year, official government estimates show.

Forecasts buried in the Treasury’s Budget book reveal that spending on international development will hit £9.3bn in 2017/18 – overtaking local government spending of £8.2bn that year.

Tory MPs questioned whether at a time when councils are under “massive pressure” from cuts it was right to be spending “shedload of taxpayers’ money” on foreign aid. …

… Day-to-day spending at the Department for International Development [Dfid] will increase from £7.2bn to £10.4bn over the next five years, according to Treasury estimated released last month,

Over the same period spending on local government will drop from £10.8bn to £6.2bn as the government cuts central funding for councils. The crossover will happen in 2017/18.

Ministers justified the cut at the time by arguing extra council tax raising powers and the right to keep more money raised from business rates would counter the impact.

However council bosses have reacted with fury at the cuts from Treasury funding and said the new powers will not cover the financial black hole.

Tory MPs reacted with fury to the idea the government is prioritising foreign aid at a time when, bin collection, protection of the elderly and other council-run services are under pressure from the cuts.

Sir Gerald Howarth, a former Tory shadow minister, said: “We are at the point of facing a real crisis in local government where absolutely essential services, such as care for the elderly, are under massive pressure.

“By contrast Dfid is awash with cash and struggling to find ways of pushing this vast shedload of taxpayers’ money out of the door.

“Politics is about priorities. Surely after all the austerity we need to show the British people that we’ve got out priories right? The priority must be to look after the vulnerable citizens at home and to strengthen our defences in the face of very dangerous turbulent world out there.”

The majority of local authorities across the country have taken advantage of new powers to increase council tax by close to 4 per cent in the next financial year, partly to help fund social care.

However the Local Government Association (LGA), which represents councils, said the new powers would not cover the major cuts in centralised funding from Whitehall.

An LGA spokesman said: “Councils are increasingly having to do more with less and to try and protect services, such as caring for the elderly, protecting children and reducing homelessness, in the face of growing demand. This means having less to spend on many of the other services people value, such as filling potholes and funding leisure facilities like pools, gyms and parks, libraries and museums.

“The next few years will continue to be a challenge. While extra council tax flexibilities will help some councils offset some of the funding pressures they face, it will not prevent the need for further cutbacks to local services. Many will continue to have to make significant reductions to local services to plug funding gaps.”

The Prime Minister’s official spokesman defended the decision to spend 0.7 per cent of foreign aid, noting how money had been used to help tackle the Ebola outbreak in West Africa.

Asked about the failure of other rich countries to reach the 0.7 spending level, the spokesman said they should “step up to the plate” and meet the commitment.

http://www.telegraph.co.uk/news/2016/04/14/foreign-aid-spending-to-overtake-council-funding-next-year/

Devon and Somerset Devolution: a brief primer

By Georgina Allen, South Devon Watch, Facebook

“Devon and Somerset are in the middle of a Devolution process.

The word Devolution sounds as though it will increase and support local democracy, but in fact the opposite is true. What we are experiencing looks more and more like the privatisation of local authorities and local democracy – our devolution bid has been written and is being led by a group called the Heart of the South West Local Enterprise Partnership, or the HoSWLEP for short.

This is a quango made up mainly of business men, a couple of women and a few councillors. The business people are primarily property developers, construction CEOs and arms manufacturers. There are 24 of them and they are self-appointed, un-transparent, unaccountable and hold their meetings in secret. They publish minutes, but these are so opaque as to make them pointless. These people have written a bid for the future of Devon and Somerset, which is full of grandiose aspirations for growth.

They want to create 123,000 jobs, build business parks and growth hubs and most worryingly 179,000 houses.

They have no public mandate for this other than the fact that all our local councils have signed up to this bid.

Many local councillors have publicly stated that they are very unhappy with the way the devolution bid is shaping up. In the South Hams, the leader of the council said that they had been coerced into signing up. When questioned further about this, he explained by saying that councils had had their budgets slashed to such a point that they could hardly function.

The government has taken money away from councils and given it to the LEP, unless local councils sign up to the Devolution Bid, they will not get this funding. A simple privatisation practice, but a very effective one. With councils forced to sign up, the LEP have the illusion of a public mandate. There has been incredibly little press about the LEP and they have not consulted with the public, this Bid is going on behind closed doors and is therefore, very concerning.

Where housing is concerned – how did the LEP come up with the figure of 179,000 houses?

This is not based on any known survey. There is no mention of social, affordable or sustainable housing in the bid, just an enormous amount of market housing the LEP want to build.

As the board is mainly made up of developers this raises the question of conflict of interest, which the LEP acknowledge, but which has not stopped them from making the Devolution Bid almost entirely about growth. There is little to no mention of farming, the environment, tourism, all the industries that are most important down here, instead the Bid is about building and growth hubs and IT. It sounds more like a Bid for a northern powerhouse than it does the rural west country.

Most of the growth projections described in the Bid are reliant on Hinkley C going ahead. As there are very real worries about the viability of this, so there should be questions raised about the LEP, who are lacking a plan B. Councillors, MPs, the National Audit Office and many others are becoming increasingly concerned about the process of devolution and the LEP themselves and as a local person, I am also worried at seeing local issues like planning being passed to a quango of business people, who have financial interests in pushing the type of development that is least needed down here.”

“Politicians don’t know the price of milk – but they do know how to set up a shell company”

“… In the old days, courtiers aped the style of the monarch. Modern politicians aspire to be like today’s rulers – our corporate overlords. If you spend a sizeable chunk of your career making sure corporations can take their money offshore, and hope to work for those companies later in your career with some title like Non-Executive Director Of Thanks For All The Favours, and if corporations actively court political influence through massive lobbying operations, then you will end up with a certain level of symbiosis. …

… In the end, as a senior politician having spent a career in what is the PR wing of corporatism, offshore tax arrangements might well be one of the few things you know anything about. I mean that quite literally. Politics is full of people who don’t know the price of a pint of milk but do understand the incorporation of a shell company. Why wouldn’t they have a trust in Panama?

Corporations may hire celebrity spokesmodels, personify themselves as mascots, and in the US, demand that they have the constitutional rights of people, but they are not people. They are blueprints for making money, and they don’t address their social obligations because they don’t care. I suspect before long we’ll see corporations donating to space exploration in the hope that they’ll be able to take advantage of a zero per cent tax rate by screwing their “Company Headquarters” plaques to the surface of the moon. In a decade, it’ll be covered with so much tessellating brass, it’ll shimmer like a distant glitterball through the gaps in the roofs of their employees’ shacks.

http://gu.com/p/4t9n2

Buy your town’s community hospital from the NHS or else …

From the blog of Claire Wright, DCC Independent Councillor:

Yesterday’s BBC Good Morning Devon programme yesterday morning covered the potential fallout of NHS Property Services taking over 12 community hospitals in Devon, in June.

The community hospitals that will transfer ownership to NHS Property Services include: Axminster, Budleigh Salterton, Crediton, Exeter Community Hospital (Whipton), Exmouth, Honiton, Moretonhampstead, Okehampton, Ottery St Mary, Seaton, Sidmouth and Tiverton.

Ottery Hospital’s League of Friends members Adrian Rutter and David Roberts were interviewed expressing serious concern about the government owned company charging local NHS organisations commercial rents after acquiring them – and the possibility of the buildings being sold off if the NHS cannot afford the rents.

However, Hugo Swire seemed (after claiming such concerns were alarmist – I also wrote to him last week about this very issue) – to dismiss the idea, instead suggesting that it was up to the community to take out a lease on the buildings.

This is unbelievable. Ottery’s community raised around £250,000 to help fund a new hospital building just 20 years ago. Now the government is helping themselves to what they see as a profitable asset, charging the local NHS huge rents … and the solution… says our MP – is for the community to pay for a long term lease?

Just what planet does Mr Swire live on?

It is Mr Swire’s government that is perpetrating this plan which amounts to blatant theft and extortion. As a government minister he tells us he has considerable influence with other ministers and secretaries of state. It’s about time he used this influence to protect our precious hospitals for future generations.

Here’s the interview. Tune in at 39 mins to hear Adrian Rutter and David Roberts interview which precedes Mr Swire’s at 42 minutes – link – http://www.bbc.co.uk/programmes/p03nx07c

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

“The top is greedy and mean and will always find a way to take care of themselves. They always do”

We are not here in this world to find elegant solutions, pregnant with initiative, or to serve the ways and modes of profitable progress. No, we are here to provide for all those who are weaker and hungrier, more battered and crippled than ourselves. That is our only certain good and great purpose on earth, and if you ask me about those insoluble economic problems that may arise if the top is deprived of their initiative, I would answer ‘To hell with them.’ The top is greedy and mean and will always find a way to take care of themselves. They always do.”

Michael Foot
Speech before the 1983 General Election.

“More than half of MPs want to be able to spend more on their taxpayer-funded credit cards”

“More than half of MPs want to be able to spend more on their taxpayer-funded credit cards, with scores demanding the right to use them to pay for food and drinks.

MPs can currently spend a maximum of £1,000 on a single transaction and a total of £4,000 each month on the credit card.

However, when question by the Independent Parliamentary Standards Authority, as many as 51 per cent of MPs said they wanted looser rules on use of direct payment and charge cards.

Ipsa issues MPs with the cards to pay for a variety of items such as travel, accommodation and stationery.

The politicians then have to prove the spending was allowed within the month, or they build up debts to the watchdog.

The sums are recouped by suspending the cards and not paying out valid expenses claims, or in installments from the MP’s salary.

MPs have said they believe food and drink should to be reintroduced as an allowance on the card and that they should be allowed to use the cards when travelling on public transport in London.

It comes after more than a dozen MPs had their Commons credit cards blocked last month after running up expenses debts of up to £27,000.

Five SNP politicians – including Westminster leader Angus Robertson and his deputy Stewart Hosie – were among those subject to action by the watchdog.

The fresh calls were made in response to a 2015 survey of politicians and their staff by the expenses watchdog, which found that 34 per cent of MPs chose not to submit a claim because they were “concerned about the claim being published”.

Overall, Ipsa received 312 responses, of which 44 were MPs, 113 were MP proxies – nominated to act on behalf of an MP – and 155 members of staff.

The report states: “There are some clear signs that MPs, their proxies, and their staff think that there have been many improvements in the support and services that we offer, but, of course, there remains more for us to do.”

http://www.telegraph.co.uk/news/2016/04/12/more-than-half-of-mps-want-to-be-able-to-spend-more-on-their-tax/

“The 1% hide their money offshore – then use it to corrupt our democracy”

” … What have the super-rich got for their investment in British politics since 2010? Cuts in personal taxes, invitations from George Osborne to advise on overhauling corporation taxes, the security of knowing that their tax havens will be treated with due leniency.

In my politics lessons, we were taught that Britain was a representative democracy. But what 30 years of plutocracy have brought is an era of un-representative democracy.

With a few exceptions, our politicians no longer resemble, nor do they work for us. Amid a crisis in the rental market, you have a housing minister, Brandon Lewis, who runs a private rental portfolio. You have a former investment banker, Sajid Javid, now claiming to do his best by the steel industry. And you have a super-rich prime minister who vows he’ll take on tax havens, all the while blocking any serious attempt to do so.”

http://gu.com/p/4t8t8

The power of social media

“When George Osborne delivered his Budget on 16 March, he announced that
he would cut £4.4 billion from Personal Independence Payments (PIP).
However, within less than 48 hours (and before the resignation of Iain
Duncan Smith) he withdrew the proposal, which he has since described as
a “mistake”.

Such a swift u-turn on such a major Budget measure is without precedent
in living memory. This humiliation for Osborne follows last years slow
motion retreat on tax credits. It happened because enough Tory MPs let
Osborne know that they would vote against the PIP cuts to make him
realise that if he pressed on, he would lose the parliamentary vote and
face an even greater humiliation. And in significant part, the actions
of those Tory MPs were due to Twitter.

PIP is a benefit that helps people with some of the extra costs caused
by long-term ill-health or a physical or mental disability. It is
designed to help with such things as preparing food, washing, getting
dressed, communicating with other people and with mobility. If the
proposal had become law more than half a million people would have faced
cuts of up to £150 per week.

Osborne had reasons to feel confident that the cuts to PIP would be
voted through without much fuss, except among those who “do not vote
Tory anyway” – to borrow a phrase used by IDS.

The PIP cuts, explicitly said to be in order to fund tax-cuts, had been
trailed in the press at the weekend before the Budget, without much
reaction to concern Osborne.

Above all, only a couple of weeks previously, Tory MPs had loyally
supported the government to override defeats in the Lords to force
through a reduction of £30 per week for sick and disabled people
receiving Employment and Support Allowance (ESA).

The ESA cuts apply to sick and disabled people who are not considered
fit for work but are considered fit for activities such as training to
prepare them for work. The reason why they had been receiving £30 more
per week than other claimants was that, due to their illness or
disability, it was recognised they would incur additional costs to help
them in their task of preparing for work.

The ESA cut had gone through in the teeth of powerfully expressed
outrage by sick and disabled people, disability charities, members of
the Lords, Jeremy Corbyn, Owen Smith (Labour’s shadow DWP) and others.
It barely registered, however, in the billionaire-owned press or the
flagship BBC news programmes, Today and the news bulletins.

Only three Tory MPs defied the party whip and voted against the cut to
ESA.

So, Osborne would have felt confident about passing the cuts to PIP.

The evening after the Budget and the next day, the press and the BBC
showed as little interest in PIP as they had to ESA. Given the number of
people affected and the sums involved, the Today programme might have
given airtime to a disabled person who would be personally affected by
the PIP cuts. There was nothing like that. For the mainstream media, the
Budget story was the Sugar Tax.

But the agenda was different – and far more democratic – on Twitter
(and other social media).

For those who do not know, on Twitter, anybody can set up a Twitter
account and then they can send out their own messages (called tweets)
and they can receive the tweets of anyone else they decide to follow.

Almost all MPs have a Twitter account.

On the evening after the Budget, a succession of well-designed tweets
started to appear on Twitter. Each one featured a picture of one of the
Tory MPs who had forced through the £30 cut to ESA , together with their
constituency and any other relevant information, such as their expenses
claims and whether they were associated with disability charities. In
some of the pictures the MP was seen posing with disabled constituents.
The text varied but typically it said “XX MP claims to care about the
sick and disabled but not enough to stop them voting to force through a
£30 per week cut for sick and disabled people on ESA”.

Most of these Tweets were retweeted hundreds if not thousands of times.
Each time that happened the MP named would receive a copy. The tweets
would soon be picked up by people in their constituency.

There were complaints. One Tory MP allegedly threatened legal action.
Some people objected to the “trolling” of MPs. The tweets, of course,
were simply repeating facts already in the public domain. All these
nonsense objections were retweeted in their turn.

Osborne had first described the tax-credit and the PIP cuts as
“necessary”, but he later conceded, when forced to drop them, that they
were not necessary at all but political choices.

Twitter highlighted how MPs had passed one shameful, unnecessary
measure, attacking the sick and disabled, and were on the brink of
passing another.

Twitter did what the press and the BBC had conspicuously failed to do.
It performed a democratic service.

Tory MPs felt the democratic heat. Osborne did the counting of votes and
withdrew the PIP cut.

The Twitter campaign will continue to try and have the ESA cut withdrawn
too.”

http://tomdlondon.blogspot.com/2016/03/how-twitter-helped-force-osborne

Making beach huts more available, or maximizing assets? You can’t have it both ways

Report from Scrutiny Committee meeting:

EDDC’s Deputy Chief Executive, Richard Cohen was directly in the firing line at last night’s Scrutiny Committee held at Knowle. He was obliged to admit that Ward members had not been contacted at all, before the new prices for beach huts were announced in the Councillors’ news sheet, ‘The Knowledge’ (January 2016). It became clear that only a cursory consultation had been made, with town clerks, about possible transfer of ownership of beach huts to local councils … but councillors themselves were left in the dark.

Richard Cohen defended his actions, saying he was working under a Cabinet directive. But the behind closed doors decision to increase beach hut hire charges by over 90% by 2017 in Beer, Budleigh Salterton, Seaton and Sidmouth, has made Ward members livid.

Cllr Marianne Rixson (IEDA, Sidmouth-Sidford) found this level of price hike “staggering”. Her detailed research had shown that comparable wooden beach huts at Lyme Regis had a lifespan of 10 years, and a replacement cost estimated at £600 per hut.

So was EDDC intending to replace the 20 year old Sidmouth beach huts with new ones before handing them over to the Town Council?”, she asked.

Cllr Maddy Chapman (Con, Exmouth-Brixington) twice called the price hike “outrageous”, saying “I do find the way this council goes about things is all over the place” , and adding “I don’t understand why you are trying to make so much money out of people who can’t afford to go abroad.”

Cllr Cathy Gardner (IEDA, Sidmouth Town) said two things had got “mixed up” in Richard Cohen’s claim – that EDDC wanted to make beach huts more available, and to maximize assets. “The two things are at odds”, she told him. “Social benefit has gone out of the window. EDDC should “stop trying to sound as if they are doing people a favour”.

At the suggestion of Cllr Val Ranger (IEDA, Newton Poppleford & Harpford) Committee, there will now be a formal recommendation to Cabinet that a structured process should be introduced at EDDC, for Ward Members to be involved in decision–making from a very early stage.

But a strong warning came from Scrutiny Chair, Cllr Roger Giles (Ind, Ottery St Mary), that recommendations by Scrutiny were not always mentioned by officers in their report for Cabinet. The consequences were clear from a recent instance of a Cabinet meeting which he had attended. Despite there being no less than nine Scrutiny recommendations to be addressed, not one was referred to during the course of the meeting.

So last night’s Meeting also recommended that officers’ reports should in future highlight Scrutiny recommendations, for Cabinet consideration.

Isn’t it high time that Scrutiny was taken seriously?

Source http://eastdevonwatch.org 18/03/2016

Apprentices will cost council tax payers extra money

“The Government’s apprenticeship drive will force councils to recruit thousands of trainees each year despite them having reduced their own staff numbers by 40% since 2010, councils leaders have warned.

All public sector organisations have been set an annual target of 2.3% of the workforce that should now be apprentices. The LGA is calling for an exemption from the obligation and stressed that councils would have to create 33,000 apprenticeships each year and find an extra £400 million in salaries – the biggest contribution of any part of the public sector including the NHS.

The Association also said that finding money to pay the new apprenticeship level from April 2017 would cost councils £207 million a year and argued that money raised by the levy should be pooled locally to allow local areas to create apprenticeships to fill local skills gap and meet employers’ needs.”

Click to access the-knowledge-18-march-2016-issue-43.pdf

Whitehall or Knowle?

For Whitehall substitute EDDC and for the Treasury, substitute its Cabinet and it seems that it may not just be in Whitehall that the Conservatives have a problem.

” … Whitehall (EDDC) is today more preoccupied with short-term news management than the minutiae of policies that may not feel like a political priority at the time. This is exacerbated by the destructive process of the now twice-yearly spending rounds, where the Treasury (Cabinet) makes demands on departments so the chancellor (Leader) can square the books for the latest set-piece budget or spending statement, and made worse by the high turnover of personnel in the Treasury (Cabinet officers) – in excess of 20% a year. This means that the brightest but most inexperienced brains are often dictating policy to departments who know all too well the disastrous effects of poor spending decisions but are powerless to resist the combined might of Nos 10 and 11, (the CEO and the Leader) with their armies of spads and policy advisers. In fact, “policy” becomes no more than the latest demand in the name of the prime minister or chancellor, (CEO or Leader) rather than the considered and consulted approach that departments are so often disempowered to follow through.

The lesson is the paradox of ministers’ (Cabinet members) experience: the more the Treasury (Cabinet) centralises “to get things done”, the less actually gets done, because the officials and structures capable of carrying out real and rational action in departments are frustrated or discouraged from making decisions. The one thing that is delegated is blame. Only after things start to go wrong are those ministers (Cabinrt members) and officials (officers) given responsibility and made accountable. Thus the Treasury (Cabinet) was blaming Iain (Independents or Sidmouth – take your pick!) for the failure of the personal independence payment policy (relocation, regeneration, beach huts – take your choice again!) that it imposed in the first place. It is time for Downing Street (Knowle) to change its ways.

(Bernard Jenkin is chairman of the public administration and constitutional affairs select committee)

http://gu.com/p/4hyec

Austerity so we can subsidise Hinkley C – thanks, George

It is totally right that south-west Tory MPs should have grave reservations about cutting payment to severely disabled people.

But not one of the has spoken out about how devolution, our Local Enterprise Partnership and Hinkley C nuclear plant and the decision to bail out EDF with LEP money will affect ALL of us negatively in the south west, with disabled people then getting a double whammy.

Yet another hokey-cokey for EDDC: sell assets – no, invest in them!

From Minutes of the last Asset Management Forum:

“The recent Treasury Management review had indicated that EDDC should be looking at using some of its reserves to invest in assets to make a better return on the assets and reserves.”

Click to access 100316amfcombinedagenda.pdf

“Iain Duncan Smith: the latest MP to pretend council cuts are not his fault”

“If you’re unaware of the extraordinary budgetary challenges faced by local authorities, it must mean that you live on another planet – or you’re Iain Duncan Smith. Despite being firmly ensconced at the heart of an austerity-obsessed government, the secretary of state for work and pensions appears blissfully unaware of the way cuts are implemented by councils in and around his Chingford and Woodford Green constituency. Much like his boss David Cameron, when he expressed horror in a letter to his local council about the level of cuts it was making.

Last week, Duncan Smith came in for fierce criticism after he accused Enfield council of failing to adequately manage funding cuts when it faced a backlash to plans to cut youth services. In what Doug Taylor, the leader of Enfield council, describes as an incredibly ill-informed and inappropriate intervention, the minister told the Enfield Independent:

If you look at the successful local authorities, they are the people who have worked out what the vitally important things are that they do, and have managed to get through this process without savaging the things that really matter. My only advice to local council[s] is that if you get the balance right, you should be able to manage this in a way that is not headline news – doing it with better efficiency. It is like any company, you always face the issue of whether what you spend outweighs what you earn. Headline cuts are not the way to go.”

That such a senior and high profile member of the cabinet – with no official brief for local government – has ostensibly suggested that councils could avoid gruelling financial situations if only they were better at managing budgets, has understandably angered local politicians.

In the case of Enfield, which has had to make savings of £118m since 2010 – 49% in real terms according to a council spokeswoman – Duncan Smith’s proclamations are an affront.

Taylor insists that Enfield, like councils all over the country, has gone to great lengths to increase efficiency before even contemplating cuts to frontline services. He says the annual funding the council receives from central government has been cut by an average of £700 for every household in the borough in the past five years, and that efficiencies are no longer enough. “The £56m we need to find [as a result of the last spending review] is more than we currently spend annually on cleaning the streets, collecting the bins and lighting our streets,” he says.

Local MP Joan Ryan is particularly scathing of the secretary of state’s statement. “Iain Duncan Smith knows nothing about Enfield – that much is clear,” she says. “IDS should get his facts right, given his local authority – Waltham Forest – has also made substantial cuts. I recommend less sermonising and a better understanding of his own policies.”

Enfield’s population is rising, like many other parts of London, pushing up demand for local services and making the financial juggling act of delivering more with fewer resources even harder. Duncan Smith’s ill-informed pontifications, Taylor says, are an exercise in power without responsibility; it will be interesting to see if the MP takes Taylor up on an open invitation to visit the council and see for himself what is actually going on.

It’s bad enough that Duncan Smith is using his position to hammer councils on efficiency when he hasn’t discussed the facts with them, but let’s also not forget the impact of welfare reform. Benefit policy upheavals, for which he was architect-in-chief, have contributed immensely to the increased demand for support from local authorities just when they’re least able to provide it.

Oh, and don’t forget either that when Cameron needed to avert a backbench rebellion and magically found a £300m pot of cash to chuck at Tory councils, there were no assertions that they should improve their budget management skills instead.

Ever since local government cuts began rolling out the government has shrewdly made it look like it’s somehow nothing to do with Westminster. Duncan Smith’s latest jibe is yet another illustration of how conveniently misleading this strategy continues to be.”

Devolution – the “Northern Powerhouse”: “pie-in-the sky” with our money

Isn’t it interesting that all devolution projects include at least one mega-billion pound project that comes off the government’s books and on to those of devolved areas – presumably allowing government to manipulate the national debt to show that the deficit is coming down … when costs have simply moved. And all of them include the word “regeneration” to make them look inviting. Not that the word is an inviting one in East Devon!

“There is no guarantee that investing billions in infrastructure will help the North of England, the man leading the “Northern Powerhouse” project says.

But former CBI chief John Cridland told the BBC that people should take a “leap of faith” on new roads and railways. He said he believed reducing journey times between northern cities would improve the economy.
But critics say the money might be better spent on training and skills – or on transport within cities.

Mr Cridland’s quango Transport for the North is due to publish its first report soon.

The chancellor’s advisory National Infrastructure Commission also will make recommendations on Northern transport.

‘Pie in the sky’

The bodies have been considering transport options such as a motorway running under the Peak District from Sheffield to Manchester, or an HS3 rail link between Leeds and Manchester.

But Anne Robinson, from Friends of the Peak District, told BBC News: “These are just pie-in-the-sky schemes. We haven’t been given the slightest shred of evidence that they will do any good.”

She warned that the motorway scheme – running more than 30 miles underground – would cost a fortune, as well as creating congestion in roads at either end of the tunnel and potentially disrupting the ecology of the Peaks National Park.

Mr Cridland said ambitious infrastructure should be on the agenda: “I’m not claiming there is perfect science here. “But I am convinced that after decades of under-investment, it’s now time to close that investment gap – and it will lead to better travelling experiences and economic growth.
“Transport economics can’t always prove this: sometimes, like the Victorian engineers, you have to take a leap of faith.”

Ms Robinson said it was foolish to take a leap of faith with billions of public money.

It is likely, though, that both quangos reporting on transport in the north will concentrate their efforts on solutions which bring quick improvement for travellers – like electrifying the Leeds-Manchester route and putting on extra carriages.

Regeneration

Another likely favourite option will be to introduce hard-shoulder running by making all of the M62 a “smart” motorway.

The two bodies may also be anxious to keep hope alive for heroic inter-city infrastructure in the north so people have faith in the regeneration of the region.

There is already a degree of cynicism about ambitious words from Westminster. One Manchester business leader disparaged the term “Northern Powerhouse”.

“It’s a bit embarrassing isn’t it? Frankly it looks like a brand in search of a product,” he told me.

Mr Cridland maintains that already the Powerhouse slogan itself has created a sense of excitement and purpose.

The team making key decisions on train operation in the north has been shifted from the south to Leeds, he says – and this is making planners more responsive to local needs.

The big cities of the north are talking to each other, making plans, dreaming they can really breathe new life into the region, Mr Cridland says.

Now, he confesses, some infrastructure has to follow.

http://www.bbc.co.uk/news/business-35625738