How do you lose nearly £4 million in expenditure? Easy if you are EDDC!

Page 9 – Annual Audit Letter from Grant Thornton:

We identified two adjustments affecting the Council’s reported financial position. The draft financial statements for the year ended 31 March 2015 presented for audit recorded net expenditure of £13.757m. Following the agreed audit adjustments, the audited financial statements showed net expenditure of £17.641m. The changes related to:

• reversal of upward revaluation of £1.546m to assets under construction which actually related to additions which had already been accounted for; and

• reversal of upward revaluation of infrastructure assets of £2.338m in year as the Code states such assets should be carried at historical cost and not fair value.

Click to access 191115-combined-agenda-a-and-g.pdf

Well spotted Grant Thornton!

116 Labour council leaders demand 1-to-1 meetings with Cameron and his advisers

“The mass letter-writing tactic is aimed at ensuring that Mr Cameron is not offering any ‘special favours’ to his own council to cushion the impact of Treasury cuts.”

http://www.huffingtonpost.co.uk/2015/11/12/david-camerons-hypocrisy-_n_8544624.html

Cameron offers Oxfordshire council leader fast access to no 10 advisers

“David Cameron has been accused of offering a Conservative council chief special access to No 10 advisers as a way to resolve a disagreement about proposed budget cuts.

The prime minister is facing questions about his conduct after he wrote to Ian Hudspeth, the leader of Oxfordshire county council, chastising him for considering cuts to day centres, libraries and museums. Cameron’s own constituency of Witney falls within the area.

In the letter, Cameron extended an offer for how to help to manage the cuts, saying he would be happy to “initiate a dialogue” with the No 10 policy unit about the possibilities of devolution deals and suggesting that Hudspeth contact his aide Sheridan Westlake, who used to work in the Department for Communities and Local Government.”

http://www.theguardian.com/politics/2015/nov/11/david-cameron-offered-oxfordshire-council-leader-access-to-advisers

David Cameron in denial about cuts – here’s the proof

“… In leaked correspondence with the Conservative leader of Oxfordshire county council (which covers his own constituency), David Cameron expresses his horror at the cuts being made to local services. This is the point at which you realise that he has no conception of what he has done.

The letters were sent in September, but came to light only on Friday, when they were revealed by the Oxford Mail. The national media has been remarkably slow to pick the story up, given the insight it offers into the prime minister’s detachment from the consequences of his actions.

Cameron complains that he is “disappointed” by the council’s proposals “to make significant cuts to frontline services – from elderly day centres, to libraries, to museums. This is in addition to the unwelcome and counter-productive proposals to close children’s centres across the county.” Why, he asks, has Oxfordshire not focused instead on “making back-office savings”? Why hasn’t it sold off its surplus property? After all, there has been only “a slight fall in government grants in cash terms”. Couldn’t the county “generate savings in a more creative manner”?

Explaining the issue gently, as if to a slow learner, the council leader, Ian Hudspeth, points out that the council has already culled its back-office functions, slashing 40% of its most senior staff and 2,800 jobs in total, with the result that it now spends less on these roles than most other counties. He explains that he has already flogged all the property he can lay hands on, but would like to remind the prime minister that using the income from these sales to pay for the council’s running costs “is neither legal, nor sustainable in the long-term since they are one-off receipts”.

As for Cameron’s claim about government grants, Hudspeth comments: “I cannot accept your description of a drop in funding of £72m or 37% as a ‘slight fall’.”

Again and again, he exposes the figures the prime minister uses as wildly wrong. For example, Cameron claims that the cumulative cuts in the county since 2010 amount to £204m. But that is not the cumulative figure; it is the annual figure. Since 2010, the county has had to save £626m. It has done so while taking on new responsibilities, and while the population of elderly people and the numbers of children in the social care system have boomed. Now there is nothing left to cut except frontline services.

… It’s worth remembering that Oxfordshire, which is run by Conservatives, is among the wealthiest counties in England, with the nation’s lowest level of unemployment. In common with every aspect of austerity, the cuts have fallen hardest on those least able to weather them: local authorities in the most deprived parts of the country.

As a report commissioned by the Joseph Rowntree Foundation discovered, the cuts in some areas are so extreme that local authority provision is now being reduced to little more than social care, child protection and other core services, while the budgets for libraries, museums, galleries, sports facilities, small parks and playgrounds, children’s centres, youth clubs, after-school and holiday clubs, planning and environmental quality have already been slashed to the point at which these can barely function.

In July, the Financial Times revealed that the funding for children’s centres across England has been cut by 28% in just three years: is Cameron unaware of this? As for public protection, it is all but gone. Visits to workplaces by health and safety inspectors have fallen by 91% in four years, and have been abandoned altogether by 53 local authorities. If you want to endanger your workers, don’t mind us. You begin to see how the government’s agendas mesh.

Now, as there is nothing else left to cut, the attack turns to social care, with untold consequences for children, the elderly and people who have mental health problems.

And we are only halfway through the government’s elective, unwarranted austerity programme. The spending review this month will demand even greater cuts from budgets that have already been comprehensively fleeced. How will this be possible without dismantling the basic functions of the state?

The government justifies its austerity programme on the grounds of responsibility: people must take responsibility for their own lives, rather than relying on the state; local authorities must take responsibility for their spending. But, as Cameron’s letter shows, he takes no responsibility for his own policies. Like pain, responsibility is to be applied selectively.”

George Monbiot

http://www.theguardian.com/commentisfree/2015/nov/11/david-cameron-letter-cuts-oxfordshire

The end of social housing and the welfare state?

” … The housing and planning bill, now in the Commons, is designed to finish off social renting. It carries out the manifesto pledge of a right to buy housing association properties at heavy discounts. Local authorities have to sell their most valuable homes to pay towards that discount – so two social homes are lost for every one sold.

Council and housing association rents are cut by 1%, which sounds good but the Institute for Fiscal Studies says it helps very few of the 3.9 million social tenants: it just comes off their housing benefit. But it’s a bonus for the Treasury, taking £1.7bn off the housing benefit bill by leaving a disastrous hole in council and housing-association finances: they will build 14,000 fewer homes to rent. Borrowing to build will be harder, as this loss of rent caused Moody’s to downgrade housing associations’ credit ratings. The FT reports that, as a result of the rent cut, council plans to build 5,448 homes were cancelled instantly.

…For every nine social homes sold off, only one has been built. “Get Britain building,” Cameron said, but few expect those million homes he promised. Housing is at the root of all good social policy. Good jobs, better education, decent communities, children at home in secure families – all depend on somewhere permanent and decent to live. Macmillan knew it, yet Cameron has abandoned it.”

http://www.theguardian.com/commentisfree/2015/nov/10/housing-target-david-cameron-dismantling-welfare-state

Frinton … East Devon … take your pick

… Many people all over the country feel not merely neglected but abandoned by central government. They pay their taxes, as they have always done, but the services which they expect in return — be it health, education or policing — are now in steep decline.

And, while the simplistic Left like to blame it all on ‘Tory cuts’, these citizens know it’s not all about budgets. Instead, it’s about the fashionable causes and warped priorities of a richly rewarded managerial elite versus the expectations of the people they serve.

For example, the public hear the Chief Constable of Surrey saying that her officers may no longer bother chasing car thieves or those who drive away from petrol stations without paying.

They hear the Police Commissioner for Devon and Cornwall say officers may no longer bother investigating some suicides or those who do a runner from a restaurant (in an area dependent on tourism).

They hear the Police Commissioner for Bedfordshire saying — as he did this week — that motorway speed cameras might be recalibrated to extract fines from the tiniest infractions (with no mention of ‘road safety’).

Yet they also know there are plenty of police available to swoop on pensioners who remonstrate with feral youths, or to take sneak photos of celebrities from helicopters, or to round up journalists who talk to whistleblowers and so on. And sympathy is in short supply.

If Frinton was very multi-cultural or very troublesome, there might be grants and pilot schemes and shiny new infrastructure. But it is not.
This is forgotten England: one of those unglamorous, unsexy back-waters where nothing much happens and things just slowly become more and more rubbish every day.

The local GP surgery, for instance, once a partnership of doctors who tended families from cradle to grave, reached crisis point last year after the last permanent GP departed. Patients had to queue round the block at dawn to see a ‘locum’ doctor.

‘It was dreadful,’ says Tony Comber, chairman of the surgery’s patient participation group. ‘If you did manage to get in, these locums would just keep repeating, “You’ve only got ten minutes”, even when my wife was having an epileptic fit right there.’

The surgery has been taken over, in the short-term, by a local employee-owned healthcare provider, with three doctors hired until March and locums filling any gaps. But elderly patients, often with complex problems, yearn for someone who knows their medical needs.

It will be a familiar story to millions, of course, but it simply compounds the sense of neglect in end-of-the-line places such as Frinton.

While other parts of the country look forward to expensive new railways or chunks of motorway, there’s nothing new heading in this direction. No one has mentioned an ‘Eastern powerhouse’.

The street lights go out between midnight and 5am to help the county council save money. The schools are overcrowded.

At the same time, central government is planning 10,000 new homes for the district, with no obvious employment for all the new arrivals, let alone extra health workers or schools.

I meet local councillors Jeff Bray and Richard Everett — both members of the Ukip opposition on the Tory-controlled district council — who say that Whitehall is clueless about the impact it will have.
Mr Bray represents a ward where an outlying village Many people all over the country feel not merely neglected but abandoned by central government. They pay their taxes, as they have always done, but the services which they expect in return — be it health, education or policing — are now in steep decline.
And, while the simplistic Left like to blame it all on ‘Tory cuts’, these citizens know it’s not all about budgets. Instead, it’s about the fashionable causes and warped priorities of a richly rewarded managerial elite versus the expectations of the people they serve.
For example, the public hear the Chief Constable of Surrey saying that her officers may no longer bother chasing car thieves or those who drive away from petrol stations without paying.
They hear the Police Commissioner for Devon and Cornwall say officers may no longer bother investigating some suicides or those who do a runner from a restaurant (in an area dependent on tourism).
They hear the Police Commissioner for Bedfordshire saying — as he did this week — that motorway speed cameras might be recalibrated to extract fines from the tiniest infractions (with no mention of ‘road safety’).

Yet they also know there are plenty of police available to swoop on pensioners who remonstrate with feral youths, or to take sneak photos of celebrities from helicopters, or to round up journalists who talk to whistleblowers and so on. And sympathy is in short supply.
If Frinton was very multi-cultural or very troublesome, there might be grants and pilot schemes and shiny new infrastructure. But it is not.
This is forgotten England: one of those unglamorous, unsexy back-waters where nothing much happens and things just slowly become more and more rubbish every day.
The local GP surgery, for instance, once a partnership of doctors who tended families from cradle to grave, reached crisis point last year after the last permanent GP departed. Patients had to queue round the block at dawn to see a ‘locum’ doctor.
‘It was dreadful,’ says Tony Comber, chairman of the surgery’s patient participation group. ‘If you did manage to get in, these locums would just keep repeating, “You’ve only got ten minutes”, even when my wife was having an epileptic fit right there.’
The surgery has been taken over, in the short-term, by a local employee-owned healthcare provider, with three doctors hired until March and locums filling any gaps. But elderly patients, often with complex problems, yearn for someone who knows their medical needs.
It will be a familiar story to millions, of course, but it simply compounds the sense of neglect in end-of-the-line places such as Frinton.

While other parts of the country look forward to expensive new railways or chunks of motorway, there’s nothing new heading in this direction. No one has mentioned an ‘Eastern powerhouse’. The street lights go out between midnight and 5am to help the county council save money. The schools are overcrowded. At the same time, central government is planning 10,000 new homes for the district, with no obvious employment for all the new arrivals, let alone extra health workers or schools.

I meet local councillors Jeff Bray and Richard Everett — both members of the Ukip opposition on the Tory-controlled district council — who say that Whitehall is clueless about the impact it will have. Mr Bray represents a ward where an outlying village of 750 homes is on course to absorb 1,000 new ones. ‘Where is the infrastructure and who will live in these houses if there isn’t the work here?’ he asks.

To cap it all, local policing is shortly to go through the wringer.
Faced with making £63 million of savings over the next five years, Essex Police is about to cut 15 of its 25 walk-in stations and shed 190 of its 250 police community support officers (PCSOs). The nearest police base to Frinton-on-Sea, in neighbouring Walton, is to be sold.

Morale is nose-diving. While the national average for sick days has fallen to four per year, the rate among Essex Police officers has risen to 13. Among PCSOs it’s 17.5. By the standards of any organisation, it’s a scandal.
‘This is the England that the politicians take for granted,’ says local MP Douglas Carswell, who defected to Ukip from the Tories and is his party’s only MP.

‘These are people who have paid into the system all their lives. Now they find themselves let down by the sheer incompetence of the state and by a political class cocooned in another world, spouting figures handed to them by civil servants. …”

http://www.dailymail.co.uk/news/article-3307955/Forced-hire-police-town-old-white-politicians-care-about.htmlof 750 homes is on course to absorb 1,000 new ones. ‘Where is the infrastructure and who will live in these houses if there isn’t the work here?’ he asks.
To cap it all, local policing is shortly to go through the wringer.
Faced with making £63 million of savings over the next five years, Essex Police is about to cut 15 of its 25 walk-in stations and shed 190 of its 250 police community support officers (PCSOs). The nearest police base to Frinton-on-Sea, in neighbouring Walton, is to be sold.
Morale is nose-diving. While the national average for sick days has fallen to four per year, the rate among Essex Police officers has risen to 13. Among PCSOs it’s 17.5. By the standards of any organisation, it’s a scandal.
‘This is the England that the politicians take for granted,’ says local MP Douglas Carswell, who defected to Ukip from the Tories and is his party’s only MP.
‘These are people who have paid into the system all their lives. Now they find themselves let down by the sheer incompetence of the state and by a political class cocooned in another world, spouting figures handed to them by civil servants.’

http://www.dailymail.co.uk/news/article-3307955/Forced-hire-police-town-old-white-politicians-care-about.html

Hugo says tax credits have been much too generous

“Tax credits need to be reformed for numerous reasons not only because they are complicated and prone to error but because they encourage employers to keep wages low because they know the state will top up their wages bill; in effect they are being given a licence to pay less. More importantly tax credits discourage recipients from working harder and longer hours for more pay so productivity and aspiration suffer. An example of this is a single parent with three children who works 16 hours a week on the minimum wage – earning them roughly £5,400 per year. Adding together child tax credit, working tax credit and support for childcare, he/she could receive an additional £23, 885 a year. They would effectively receive around 80 per cent of their income via benefits. However there is little incentive to switch to a job working more than 16 hours a week. The tax credits drop sharply; net income increases more slowly and recipients can face a high marginal tax rate.”

http://www.exeterexpressandecho.co.uk/letter-Hugo-Swire-tax-credit-reduced/story-28110462-detail/story.html

Three kids AND working 16 hours a week at a minimum wage job, probably on zero hours – how does she do it!

For comparison:

[Bankers] “Total bonuses over the past year rose by 4.9 per cent to £40.5billion, of which £14.4billion was paid in the finance and insurance industry, a 2.9 per cent increase, the ONS said”

http://www.thisismoney.co.uk/money/news/article-2737778/Bankers-bonuses-rise-double-rate-average-worker.html

Tax credits cost about £30 billion a year.

https://fullfact.org/economy/welfare_budget_public_spending-29886

Neil Parish supports government on tax credits then criticises them

Owl can’t really get its head around MPs who vote FOR something and then criticise it, feeling that it should really be the other way around.

Still, at least he said something, unlike our other MP Hugo Swire who probably thinks tax credits are something wealthy bankers deserve:

“Neil Parish, the MP for [Honiton and] Tiverton, said: “W
e have just lost our way a little, but we can come back out of the wilderness and put this right. It is not a crime to be lowly paid. We have got to put this right, because the Conservative party and the government’s reputation is at stake.”

People would be driven back on to benefits if the government were not careful with its tax credit changes, he warned.

The environment select committee chairman added: “I think we are standing up for what we believe to be right because as far as I am concerned it’s absolutely fundamental people that work are better off than those that don’t.”

http://www.theguardian.com/politics/2015/oct/29/tax-credit-cuts-face-major-mitigation-as-tory-mps-fear-they-go-too-far

“George Osborne’s favourite author” on abuse of power

“…When someone has a sufficient interest in something – profit, vanity, glory, whim – democracy (between elections) is rarely strong enough to stand in the way. However potent the politician, he or she is rarely big enough to admit a mistake. They even prefer to pursue folly to prove their power. ”

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

Conservatives are failing young people and favouring pensioners leading Tory tells David Cameron

“The government stands accused by a leading Tory thinker of creating a “country for older generations” in which pensioners benefit from constantly rising incomes while the young, their families and children pay the price of punishing policy decisions, including cuts to their tax credits.

In a hard-hitting intervention on the eve of what is expected to be a tempestuous House of Lords debate over plans to slash the incomes of millions of low-income families, former Conservative minister and prominent party intellectual David Willetts says the current policy mix is manifestly unfair and breaks the supposed “social contract” between generations. …”

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

This is the latest of several articles with a similar theme recently which seems to hint that some, or all, universal pensioner benefits (bus passes, winter heating allowance, free TV licences for over-75s, protected state pension increases) may be for the chop.

Council “hubs” and austerity cuts

Remember EDDC promised that if it moved to Honiton, it would have “hubs” in major towns: didn’t work for Mid Devon:

http://www.exeterexpressandecho.co.uk/Downward-spiral-office-set-close/story-28028156-detail/story.html

The effects of a 40% cut in local authority spending

40 percent funding reduction would devastate local services and communities, councils warn
LGA media release 19 October 2015

“A further 40 per cent real terms reduction in local government grant funding in the Spending Review would deliver the £10.5 billion knock-out blow to cherished local services, the Local Government Association warns today.

Non-protected government departments have been ordered to draw up savings plans worth, in real terms, 25 and 40 per cent of their budgets ahead of the Spending Review on November 25, which will set out government spending plans for the next four years.

Analysis by the LGA, which represents more than 370 councils in England and Wales, reveals a 40 per cent real terms reduction to core central government funding would be worth £8.4 billion. The same cut to separate local government grants would see a further £2.1 billion lost from council budgets.

This would mean local government losing 64 per cent of its grant funding between 2010 and 2020.

In its Spending Review submission to the Treasury, the LGA has already predicted councils will face almost £10 billion in separate cost pressures, through government policies, inflation and demand, by 2020 even before another penny is taken out of council budgets.

Together with another 40 per cent reduction to funding from central government, this would leave councils facing £20 billion in funding cuts and increased cost pressures by the end of the decade. Local government leaders say this would devastate local services and communities.

To put those figures into context, annual council spending on individual services in 2013/14 include:

Bin collection and recycling – £3.3 billion;
Arts and leisure (libraries, leisure centres, museums) – £2 billion
Road maintenance – £1.3 billion;
Subsidised bus services and free travel for elderly and disabled – £1.7 billion
Street cleaning – £717 million;
Parks maintenance – £690 million;
Street lighting – £530 million
Trading standards, noise, environmental health – £480 million.

The LGA said even if councils stopped providing all of these vital services for their residents, it would still not be nearly enough to plug the potential £20 billion hole in their finances by the end of the decade.

Lord Porter, LGA Chairman, said:

“Councils are under no illusions about the challenge that lies ahead. We know we face almost £10 billion in cost pressures by 2020 even before the prospect of further challenging funding reductions over the next four years.

“What is clear is that another 40 per cent real terms reduction to local government grant funding on top of these cannot be an option on November 25.

“It is a false economy to reduce funding to local government while attempting to prop up other departments.

“Providing councils with fairer funding is the only way to avoid the unintended consequence of other parts of the public sector, such as the NHS, being left to pick up the financial pieces. When making its spending decisions government must consider the huge pressure funding reductions to councils would have not just on vital local services but on the public sector more widely.

“Councils have worked tirelessly to shield residents from the impact of the 40 per cent government funding reductions they have been handed since 2010. However, the resilience of local government services cannot be stretched much further.

“It would be our residents who would suffer as councils are no longer able to deliver some of their statutory duties, like street cleaning and providing the free bus travel that is a lifeline to our elderly and disabled.

“Closing every children’s centre in England would save £700 million but this would only be enough to plug the funding gap facing adult social care for one year. Councils could stop fixing the two million potholes they fill each year to save £600 million by 2020, but this would still not be enough to keep providing free bus travel to elderly and disabled residents.

“These are the difficult decisions councils will be forced to face. Many of the things people take for granted, like clean and well-lit streets, maintained parks and access to leisure centres, will become a thing of the past as a result.”

Additional information

Breakdown of local government core spending (figures in £000s and exclude expenditure on schools and housing benefit).

2013/14
Education
£4,249,676

Highways
£1,591,039

Public Transport
£1,850,344

Children’s Social Care
£6,914,607

Adult Social Care
£14,565,464

Housing
£2,003,473

Cultural Services
£2,708,616

Waste Management
£3,324,260

Other Environmental Services
£798,707

Regulatory Services
£888,334

Planning and Development
£1,262,183

Central services
£2,618,551

All other services, capital financing and other costs
£4,693,501

Public Health
£2,507,832

Total net expenditure
£49,976,587″

http://www.local.gov.uk/web/guest/media-releases/-/journal_content/56/10180/7534443/NEWS#sthash.NUWHvIN4.dpuf

Buck stops with councils when contracting-out goes wrong

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=24666:ombudsman-fires-warning-to-councils-over-contracting-out-and-accountability&catid=52&Itemid=20

Developers will not have to pay for infrastructure, schools

“Under the “starter homes” programme, originally announced a year ago, 200,000 first-time buyers will be able to purchase new houses or flats at a 20% discount.

The quid pro quo of this arrangement is that developers will be relieved of their obligations to provide affordable homes for rent, or having to pay for general local infrastructure such as roads, or indeed schools.”

http://www.bbc.co.uk/news/business-34465513

Devon County Council “to gamble on property investment”

Devon County Council’s senior councillors are being urged to gamble up to £30million on the rising property market to help make up for Government cuts.

They are also advised to put Barclays Bank back on its approved list of “counterparties for lending” , despite its recent downgrading in the light of new banking rules.

The ruling executive will next week consider a report recommending they sanction an investment in the Churches, Charities and Local Authorities) Property Fund (CCLA) instead of bank deposits.

The CCLA fund currently has investments of over £300 million, with over 100 local authority investors including Plymouth City Council and four Devon town councils.

A report to the cabinet meeting points out the “risk” that property value could go down and that with charges a 3% rise in the market would be required for the authority to break even.

“This means that any investment would need to be medium to long term, a minimum of 2-3 years” the report said.

“Capital growth would need to be around 3% per year to ensure that the capital redeemed at the end of the investment was at least equal to the initial amount

invested,” it added.

Finance officers at the council calculate that a £30 million investment “would have the potential to yield up to £1 million additional investment income in 2016/17 and 2017/18 to help offset the budget pressures facing the council”.

But it also represents “an increased risk of loss of capital in comparison to the use of term deposits with banks and building societies”.

http://www.westernmorningnews.co.uk/Devon-County-Council-gamble-30m-property-market/story-27941787-detail/story.html

Are under-25s too lazy to deserve the National Minimum Wage?

TORY SAYS PEOPLE UNDER 25 ARE TOO LAZY FOR MINIMUM WAGE:

Workers under the age of 25 are not “productive” enough to warrant being paid the new National Living Wage, according to Government Minister Matthew Hancock.

In this summer’s budget, Chancellor George Osborne announced a new minimum wage for over 25s would come into force from next April, starting at £7.20 an hour and increasing to £9 by 2020. But those under 25 will be on the old minimum wage rates, meaning they are entitled to £6.70 an hour, down to £5.30 for 18 to 20 year olds and £3.87 for under 18s.

Trade union Unison said the remarks showed the Government was “out of touch”. A Survation poll for the Huffington Post published last week showed the majority of Britons – 66 per cent – believe the new higher rate should be given to under 25s.

Speaking at a fringe event at the Conservative Party conference in Manchester this afternoon, Mr Hancock defended the different rates. He said: “This was an active policy choice. Youth unemployment, whilst falling quite sharply, is still a long way above the unemployment rate for the over 25s.

“Anybody who has employed people knows that younger people, especially in their first jobs, are not as productive, on average. “Now there are some who are very productive under the age of 25 but you have to set policy for the average. It was an active choice not to cover the under 25s.”

A UNION OFFICIAL DISAGREES:

Reacting to the remarks this afternoon, Unison General Secretary Dave Prentis said: “Remarks like this show just how out of touch the government is. Young people are every bit as productive as older workers, and can have just the same responsibilities as their more mature workmates.

“A young home care worker, for example, has to do exactly the same stressful job as the older colleagues on their team, and probably isn’t even getting the minimum wage as many aren’t paid for their travel between appointments.

“Younger workers under 25 with families face a double whammy. First they are denied a pay rise and then they get hit hard by the planned cuts to tax credits. “Thanks to the meanness of this government, under 25s with one child doing a 35 hour week on the national minimum wage won’t get the £910 a year pay increase next April, but they will still lose £1,754.20 from the tax credit changes. “Ministers should think again on tax credits, and on their decision to deny young workers the pay rise others are getting.”

Source: today’s Huffington Post UK

Muttering in the Local Authority ranks

… “Facing more cuts of as much as another 40%, the LGA’s submission to Osborne is a warning. Does he realise his own micro-managing policies, far from devolving, have imposed £10bn in new costs? A pre-election sweetener forcing councils to cut rents by 1% costs them £2.6bn. They are losing £3bn by the exemption Osborne has granted developers from a section 106 levy to pay councils for affordable housing. Universal credit loses councils more, and so does raising the minimum wage.

Osborne’s devolution may gift new powers, but as Nick Forbes, the Newcastle council leader, says: “Don’t pass the buck without passing the bucks.” Where’s the money? Osborne’s northern powerhouse project is a brilliant land-grab on Labour heartlands. He flattered seven northern leaders by sweeping them up on his grand China tour – though they had little face time to lobby him on council funding.”

…”The delusion here is that the Tories are invading the political centre ground, or the “common ground”, vacated by Labour. But remember how far to the right is Osborne’s turf. By 2020 the state will have shrunk to just 35% of GDP, smaller even than the United States, and far below the German 45% of GDP. His common ground will be a desolate desert, and what’s left of its public realm a miserable place. Few voters have been told this is his destination. Nor is it clear what his vision is for the country once he gets there.

That single-minded purpose is why there is no U-turn on tax credits: his £12bn benefit cuts are an act of faith. David Cameron and Osborne can only lie about the effects, defying the Institute for Fiscal Studies – the great arbiter – as “not right”. Preposterous claims by ministers that cutting tax credits means “cultural change” for people already in work show how far this is from being the “workers’ party”. Dangerously, they come to believe their own fictions, as Osborne repeats yet again that we have 1% of the world’s population and 4% of the world’s wealth, but spend 7% of the world’s welfare. Even the slowest brain works out that global welfare includes the likes of Somalia and Ethiopia.

Triumph sweeps caution away: they think they see Lib Dems vanquished, Labour departing the fray, boundary changes securing everlasting victory. They talk of standing in the foothills of a decade or more of power unrestrained: all they have to fear is themselves and their hubris. The NHS teeters on financial collapse, while the social care crisis risks scandals of neglect. David Davis and the Sun warn tax creditswill be their poll tax – while the referendum storm is gathering in their ranks. Europhobic invincibility makes them reckless: they may need no official opposition when they set so many land mines for themselves. …”

http://gu.com/p/4d2pq

Taxpayers Alliance: Cut pensioners benefits – “many will be dead or have forgotten who did it by the next election”

Ministers should waste no time to make unpopular cuts to pensioner benefits, a think tank director has said.
Many of those hit by a cut to the winter fuel allowance might “not be around” at the next election, said Alex Wild of the Taxpayers’ Alliance.

And others would forget which party had done it, he added.
At the group’s meeting at the Conservative conference in Manchester, former defence secretary Liam Fox said spending cuts must be “for keeps”.

Mr Wild said the Tories could not wait until a year before the next election to make the necessary cuts to the winter fuel allowance, free bus passes, the Christmas bonus and other pensioner benefits.

http://www.bbc.co.uk/news/uk-politics-34439965