The big 2022 “social housing” con

“… May’s rabbit-in-the-hat was an additional 2bn funding for affordable housing. Considering the scale of the crisis, this is almost pitiful. It will build just 40,000 new affordable homes, when we have a need for more than a million. And the funding itself won’t be available until 2022, at which point are very likely to have a different government and/or prime minister. …

… For a number of years, big housing associations have been behaving more and more like private developers. May was quite right yesterday when she said they are ‘major multi-billion pound businesses’. And as the number of homes they build increases, their new model is proving so lucrative that private providers, pension funds and other investors are coming along for the ride, reinventing themselves as ‘affordable housing developers’, seeing a clear business opportunity for doing something that apparently has a social purpose.

But the homes they are building are not the houses we need, and the social purpose is often harder and harder to see. By far the greatest need is for social housing, and we are building the lowest levels of that since the Second World War, despite the pretty high housing outputs of housing associations. …

https://www.huffingtonpost.co.uk/entry/social-housing-theresa-may-housing-crisis_uk_5ba3bfbce4b0375f8f9af692

What happens if most English local authorities fail due to inadequate funding?

Owl has a theory.

Their money (but with fewer responsibilities and much less scrutiny) will immediately be passed to Local Enterprise Partnerships!

Unelected, unaccountable, barely scrutinised they will be free to use our money however they wish. And responsible only to government.

A score of unelected business people of dubious quality, dubious expertise and with complex conflicts of interest get full power.

What could possibly go wrong?

“Home builders’ lobbyist pushed council leader to ‘sort’ and speed planning”

Is this any different to having a (Tory) COUNCILLOR in charge of planning running his own planning consultancy AND chairing an influential business forum? And if this expose came about from a Freedom of I formation request about events in Wandsworth in 2011 and 2013 …..

https://www.telegraph.co.uk/news/politics/9920971/If-I-cant-get-planning-nobody-will-says-Devon-councillor-and-planning-consultant.html

“A lobbyist for some of the UK’s biggest property developers used a direct communication channel to the leader of a flagship Conservative council to help push through planning applications for luxury apartment developments.

Peter Bingle used his longstanding relationship with Ravi Govindia, the leader of the London borough of Wandsworth, in attempts to circumvent council officials he believed were being obstructive to his clients, including over the size of payments due to public projects.

Bingle’s access has been revealed in a cache of emails released under the Freedom of Information Act that show him asking Govindia, a former flatmate, to smooth the passage of planning applications for hundreds of luxury homes between 2011 and 2013. Govindia responded in some cases by promising to chase officials and fix meetings.

Berkeley calls affordable housing targets ‘unviable’ as chairman earns £174m

Bingle is a former Conservative councillor at Wandsworth and was chairman of Bell Pottinger Public Affairs, once one of the country’s biggest lobbying firms. He set up Terrapin Communications, whose clients have included Ballymore and Bellway, the housebuilders, and Royal Mail when it was selling off its land for housing.

When Royal Mail complained about the junior rank of the planning officer assigned to its application and having to repeat details of its plans to officials, Bingle emailed Govindia: “This wouldn’t have happened under the old regime. Your help would be appreciated in sorting things out.”

Bingle later forwarded the Royal Mail’s plan for its presentation to the Wandsworth planning committee to Govindia asking “What’s your advice?” Govindia replied two minutes later: “Will call as soon as I finish this meeting”.

Nearly 100 London councillors have links to property industry

There is no suggestion of wrongdoing, but the correspondence provides a rare window on the methods developers use to apply pressure to politicians behind the scenes to speed up high-stakes planning decisions and to reduce infrastructure payments. An investigation last week revealed how Berkeley Homes, one of London’s largest developers of luxury homes, routinely told local authorities that their affordable housing targets were unviable.

In April, the Guardian revealed planning lobbyists regularly entertained Robert Davis, Westminster city council’s former planning committee chairman. Davis received hospitality or gifts 893 times over six years, frequently from developers and their agents, including Bingle. He has since resigned as deputy leader.

The emails relate to when Bingle was working as a lobbyist for the Royal Mail, which had submitted plans for a 1,800-home development on its site close to Battersea Power Station. In one email to Govindia he lambasted the council’s handling of a negotiation about how much his client should pay to the public purse as “chaotic and shambolic”. He told Govindia it “does nothing for Wandsworth’s reputation in the property world … Something has gone seriously wrong.”

The planning application was eventually approved. Royal Mail last year sold part of the site to US investors for £101m.

Bingle chased Govindia for updates on progress of another 252-home application at Battersea for another client, complaining about “non-committal” planning officials. He applauded the leader when a separate application for 104 private flats in Putney by Berkeley Homes was approved, signing off an email: “Many thanks for a great result.” It had no social housing.

Bingle has denied exerting any undue influence and Govindia said he made no apology for delivering more homes for Wandsworth.

Public records show Bingle has entertained at least 31 councillors in different London boroughs in recent years, taking some out for lunch or dinner more than a dozen times. When Govindia, who was among those he entertained, was awarded a CBE in 2017 Bingle said: “Never has an award for services to local government been more deserved.”

Govindia did not sit on Wandsworth’s planning committee, but Bingle repeatedly urged him to help, often simply forwarding on complaints from property developers.

In January 2012, Royal Mail was concerned about what the council wanted in terms of payments for schools and education. Bingle forwarded an email about that directly to Govindia saying “Ravi, Views?”

Govindia replied later that day: “I will chase the education chaps”.

By March, the development consultant on the scheme asked Bingle to “prod Ravi that we need to get on with this”. Bingle forwarded the email to Govinidia saying “I thought it simplest just to forward this to you”.

When Bingle sent an email asking: “Leader, Can we get a meeting with you in the diary for next week? This scheme is now stuck,” Govinida replied: “I have asked for an update from planners next week.”

Asked about the relationship Bingle said: “The fact that this information came from a freedom of information request shows that it was always available for scrutiny in the public domain. And rightly so. Having been a long-standing friend of Ravi I know it is impossible for anybody to have undue influence over him. Since his earliest days on Wandsworth as a backbench councillor he has always resolutely defended his own viewpoint even if it meant voting against the Conservative group.”

Govinidia said: “It is first and foremost the job of any council leader to press those on all sides to deliver improvements to their borough and improve the lives of their residents. To do the job effectively you need to listen to all voices and make sure that when problems or snags arise that you are on top of them and that you can secure solutions to drive forward and deliver these improvements. I make no apology whatsoever for fulfilling my role as a council leader to deliver more homes, more jobs and more opportunities for our residents.”

He said the Royal Mail development will deliver 318 new affordable homes, a higher number than the developers were originally offering.”

https://www.theguardian.com/uk-news/2018/sep/13/home-builders-lobbyist-pushed-council-leader-to-sort-and-speed-planning

“DUP fined £1,000 over ‘inaccurate’ loan reporting”

Owl says: remarkable how this article gives no details of EXACTLY what the DUP did wrong, how much money was involved and borrowed from whom, for how long and at what rate of interest! Transparency my …..!

“THE DUP has been fined £1,000 by the Electoral Commission for “inaccurate” loan reporting.

The watchdog imposed two fines worth £500 each, which were paid earlier this month, its latest report disclosed.

In a statement it said: “The Commission considered, in accordance with the enforcement policy, that sanctions were appropriate in this case.”

Ann Watt, head of the Electoral Commission in Northern Ireland, added: “The reporting requirements are clear, so it is always disappointing when parties fail to comply.

“It’s vital that voters are given an opportunity to see accurate and full reportable data on what parties spend money on in order to influence them at elections and referendums.

“This provides transparency in the political finance system and is open for anyone to scrutinise.

“The Commission will continue to enforce these requirements on all parties and campaigners to ensure voters have the information they need.”

The Traditional Unionist Voice was also fined £1,000 for late delivery of a spending return for last year’s general election. The fine was due to be paid earlier this month.”

http://www.irishnews.com/news/politicalnews/2018/08/21/news/dup-fined-1-000-over-inaccurate-loan-reporting-1412808/

Evo-North: 11 business-led Local Enterprise Partnerships unite to hijack funding formerly controlled by local authorities

Coming soon to a group of Local Enterprise Partnerships on your doorstep.

On 9 July 2018 it was announced that 11 Northern Local Enterprise Partnerships would join together as “Evo-North”:

“Christine Gaskell, chair of the Cheshire and Warrington LEP and vice-chair of NP11, said: “To translate the Northern Powerhouse concept into increasing impact requires new types of conversations across the region and at the heart of this collaboration are common goals which transcend local interests.”

Gaskell noted that the The NP11 will serve as a “strong coherent regional voice” with national government about the potential of an innovation-led economy for the North.”

http://www.publicsectorexecutive.com/Public-Sector-News/council-for-the-north-on-the-way-aimed-at-aligning-businesses-for-northern-powerhouse?dm_i=4WAR,1AG5,WEIUK,3PBB,1

Now we see the full take-over of former local authority funding by this new business-led UNELECTED group as a press release publicising one of its forthcoming events makes clear:

“Following last month’s announcement from Northern Powerhouse minister Jake Berry that 11 LEPs will form the government-funded body ‘NP11’ to act as a modern-day ‘Council for the North’, last week, a cross-party group of MPs called for £100bn investment to transform the north of England’s transport by 2050 and for the date of Northern Powerhouse Rail to be brought forward to 2032.

This makes EvoNorth the perfect opportunity to put your products and services in front of the budget-holders who are actively seeking them. You get the opportunity to ask questions and network with the people responsible for delivering the Northern Powerhouse by attending this exclusive event. You can benefit from branding and exhibition opportunities by contacting the events team on 0161 833 6320, and you can also submit an enquiry or click here to contact us by email.

EvoNorth is an important event and platform where the Northern Powerhouse is discussed and debated across a wide range of topics including skills, employment & apprenticeships; digital revolution and innovation; health and social care; wellbeing & fulfilment; and infrastructure, business and inward investment.

It stands out from the crowd with its immersive series of lively and engaging Q&As, roundtable discussions, workshops and exhibitions. You can be a part of this exciting opportunity by attending, exhibiting or sponsoring: just contact the events team on 0161 833 6320, submit an enquiry or click here to contact us by email.”

https://cognitivepublishing.co.uk/4WAR-1AG5-B6WEIUK95/cr.aspx

So, very, very soon our district, our county and our region will almost certainly be in the grip of these unelected business people who have already shown their conflicts of interest countless times.

And we can do nothing to stop them …. unless the Conservative government which has enthusiastically x nay zealously – driven this initiative is removed from power.

“Parish and town councils overwhelmingly support single code of conduct”

“Some 90% of parish and town councils surveyed would support a single, mandatory code of conduct, research by the National Association of Local Councils (NALC) has revealed.

The NALC survey also found that nearly 70% of local councils would like new powers to impose additional sanctions.

“At the moment sanctions used by local councils include apologies and training. However, around 60% of local councils believe these are neither sufficient to punish breaches of the code of conduct or deter future breaches,” the association said.

Almost 40% of local councils meanwhile stated that their members had not received any training and 20% reported that most members did not understand the rules around declaring interests.

Cllr Sue Baxter, chairman of NALC, said: “NALC does not believe the current ethical standards arrangements are working as well as they could and a review of the regime is something we have long called for. We would like to see stronger sanctions available to local councils, including the power of suspension and disqualification.

“In light of our research, we are also asking the government to invest £2m towards a national training programme that would see all new councillors undertake training on ethical standards and the code of conduct as part of their induction.”

The research comes as the Committee on Standards in Public Life is conducting a review into local government ethical standards. The committee is due to report to the Prime Minister by the end of the year.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=36290%3Aparish-and-town-councils-overwhelmingly-support-single-code-of-conduct-nalc&catid=59&Itemid=27

Top lawyers argue tax avoidance laws cause privacy problem for their rich client!

“The law firm Mishcon de Reya has filed a legal complaint against new anti-tax evasion measures, arguing that they infringe privacy and data protection rights.

The Information Commissioner’s Office confirmed it had received a complaint against HMRC and the Common Reporting Standard, a system whereby different countries’ tax authorities automatically exchange information.

The complaint was filed on behalf of an unnamed EU citizen who did not wish to be identified, according to the Financial Times. The woman is domiciled in Italy, meaning she argues it is her home for tax purposes.

It is not known where she is currently resident, though she was reported to have been previously resident in the UK and to have had a UK bank account containing £4,000.

The complaint claims that sharing her information with overseas tax authorities would subject her to a risk of her data being hacked, and would infringe European data protection and human rights laws. …”

https://www.theguardian.com/money/2018/aug/02/mishcon-de-reya-complains-about-anti-tax-evasion-measures

“Jacob Rees-Mogg firm advising top Canada marijuana market investor”

“Jacob Rees-Mogg’s investment firm is advising one of the highest-profile investors in Canada’s marijuana market.

Somerset Capital Management, co-founded by the prominent Brexiter MP, is an adviser to an emerging markets fund established by Purpose Investments.

Purpose Investments has emerged this year as one of the most prominent investors in the Canadian cannabis market. The drug will become legal for recreational use there in October, but it has been legal for medical use since 2001.

Rees-Mogg, chair of the pro-Brexit European Research Group, has refused to back either the decriminalisation or legalisation of cannabis in the UK.

The development comes days after it emerged that Somerset set up a second fund in Ireland after it warned earlier this year about the financial dangers of the sort of hard Brexit favoured by the Conservative MP.

Documents show that Somerset Capital Management is an adviser to the Purpose Emerging Markets Dividend Fund, which invests in sectors including financials, IT and mutual funds in countries such as South Korea, Russia, China and Turkey. The fund does not include investments in the marijuana market.

With legalisation in Canada due in the autumn, funds across North America are looking to cash in.

In January, it was reported that Purpose’s subsidiary Redwood Asset Management had set up Canada’s first actively managed marijuana-themed exchange-traded fund. According to the Purpose website, the Purpose Marijuana Opportunities Fund is close to fully invested.

Rees-Mogg, the MP for North East Somerset, said in an interview last year that he would not be in favour of the legalisation or decriminalisation of cannabis. “With the [cannabis] laws as they currently are, you provide a certain amount of protection for people.

“If you have a system of protection which is saving people you are right to keep the ban in place. The onus of proof is on those who wish to change the law and I don’t think they have managed to establish that the extra risk is worth taking,” he said.

A spokesman for Somerset Capital Management confirmed that it advises an account on behalf of Redwood.

Rees-Mogg has been contacted for comment. …”

https://www.theguardian.com/politics/2018/jul/31/jacob-rees-mogg-firm-advising-top-canada-marijuana-market-investor

” ‘Culture of impunity’ among MPs over hospitality from corrupt regimes “

“More than £330,000 was spent on flights and accommodation for MPs to visit Azerbaijan between 2007 and 2017, and 12 MPs were paid more than £90,000 to appear on Russian state TV, according to a report by Transparency International UK.

The report focused on parliamentarians who had accepted hospitality from corrupt and repressive governments while providing political access and lobbying.

It said many of the MPs and peers had been given all-expenses-paid trips to such countries paid for by the host government.

The publication of the report follows the suspension of the DUP MP Ian Paisley last week after he admitted he had failed to declare £50,000 of family holidays paid for by the Sri Lankan government.

The parliamentary commissioner for standards found that Paisley had breached the rules on paid advocacy by writing to David Cameron in 2014 to lobby against a UN resolution on human rights abuses in Sri Lanka, after receiving holidays from the country’s government.

Transparency International UK’s report also found that two MPs had provided advisory services to the king of Bahrain over the period the government enforced a brutal crackdown of Arab spring protesters in 2001.

The authors of the report say that not only have some MPs actively supported corrupt and repressive governments, but that there is also a “culture of impunity” regarding such practices.

“The activities of the Azerbaijan lobby in parliament has become so infamous that it is seemingly tolerated as almost an eccentricity,” the report said.

Steve Goodrich, Transparency International UK’s senior researcher officer and one of the authors of the report, said: “This is not the first time that the inappropriate behaviour of foreign regimes in lobbying UK parliamentarians has been exposed. But our report shows that this has become a systemic pattern of behaviour, with many MPs and peers completely ignorant or knowingly dismissive of these problems.

“This type of engagement between parliamentarians and corrupt and repressive regimes can no longer be kicked into the long grass because it’s politically convenient. It is a detriment to the UK’s standing as a beacon of democracy and the rule of law.”

Following the publication of its report, Transparency International UK is calling for an inquiry into the conduct of MPs and peers in legitimising corrupt and repressive governments.

The group recommends that MPs and peers should also be banned from taking trips paid for by foreign states and their lobbyists over £500 in value. Instead, the group suggests that a list of organisations should be agreed in parliament for whom paid trips over this amount are acceptable.

Transparency International UK also recommends that MPs should be prohibited from providing paid or voluntary services to foreign governments and state institutions, and that the register of members’ financial interests should be published as structured open data.

Duncan Hames, director of policy at Transparency International UK, said it was “time to end the discredited practice of our parliamentarians enjoying generous foreign hospitality”.

He said: “International visits can certainly aid informed parliamentary debate, but when these trips are offered by foreign governments they undermine the independence of those MPs accepting them.

“Our politicians are elected to work on our behalf, not the interests of foreign states who increasingly have subversive desires. Global scandals have exposed the activity of foreign states meddling in the affairs of others and we need to shore up our defences against this sort of activity.” …

https://www.theguardian.com/uk-news/2018/jul/30/transparency-international-uk-hospitality-corrupt-regimes-azerbaijan

Governance and transparency – How does our Local Enterprise Partnership measure up?

A long read, but if you worry about the unaccountability of our Local Enterprise Partnership (and you should) it is a “must read” – note the requirement for LEPs to be scrutinised by council scrutiny committees:

For good or ill the Government has chosen Local Enterprise Partnerships (LEPs) to play a key part in assisting in the delivery of government policies to support local economic growth.

There are 38 LEPs in England. Through the Local Growth Fund, the government has committed £12 billion to local areas between 2015 and 2021; £9.1 billion of this is through Growth Deals with LEPs. The government also sees LEPs as key to its new industrial strategy. But performance has varied as acknowledged in the government’s publication of July 2018 “Strengthened Local Enterprise Partnerships”.

Amongst other things this paper announced that all the recommendations of last year’s Mary Ney review (see below), and this year’s Public Accounts Committee (PAC) report on Governance and Departmental oversight of the Greater Cambridge Greater Peterborough (GCGP) LEP, would be accepted.

Now is the moment to review these three publications which, taken together, amount to a scathing criticism of the way LEP governance arrangements, and government oversight of them, have, to date, been working.

PUBLIC ACCOUNTS COMMITTEE

https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/896/896.pd

In 2016 the PAC reported on the governance of LEPs and made clear recommendations for improvement which were accepted by the Ministry of Housing, Communities and Local Government. [Footnote: East Devon Alliance submitted evidence to this inquiry].

Despite this, things are going seriously wrong and, in the words of the PAC: “the Department needs to get its act together and assure taxpayers that it is monitoring how LEPs spend taxpayers’ money and how it evaluates results.

In the case of CGGP (Greater Cambridge Greater Peterborough Enterprise Partnership) the LEP could not respond satisfactorily to allegations of conflicts of interest, levelled by an MP. The governance arrangements were not up to standard. There were no comprehensive conflicts of interest policies nor an up to date register of interests for board members. In addition, the LEP was not acting transparently.

In March 2017, the Department applied the nuclear option and withheld the release of money to the LEP. Then, in December 2017, the LEP went into voluntary liquidation, following the Chair’s resignation the previous month.

Key findings by the PAC were that GCGP LEP did not comply with expected standards in public life, particularly in terms of accountability and transparency. Also that the Department’s oversight system failed to identify that GCGP LEP as one which should have raised concerns. Furthermore, that the Department has a long way to go before it can be sure that all LEPs have implemented Mary Ney’s review properly.

MARY NEY REVIEW

https://www.gov.uk/government/publications/review-of-local-enterprise-partnership-governance-and-transparency

Which leads us to: the “Review of Local Enterprise Partnership Governance and Transparency”, Led by Mary Ney, Non-Executive Director, DCLG Board, October 2017. This is an internal departmental review but nevertheless surprisingly thorough.

The review makes 17 recommendations (all now formally accepted) covering the following topics: Culture & Accountability; Structure & Decision-Making; Conflicts of Interest; Complaints; Section 151 [financial accounting] Officer Oversight; Transparency; Government Oversight & Enforcement. Just a few of these 17 recommendations of particular importance are highlighted out below.

Many LEPs have codes of conduct reflecting the requirements of company board directors and do not sufficiently embrace the dimension of public sector accountability. This is inadequate as it does not reflect the dual dimension (i.e. public and private) of the role of board members.

The code of conduct, which all board members and staff sign up to, should explicitly require the Nolan Principles of public life to be adopted as the basis for this code. E.g. the notion of integrity whereby holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships.

Key features of decision-making to ensure good governance and probity should include:

• a clear strategic vision and priorities set by the Board which has been subject to wide consultation against which all decisions must be judged;
• open advertising of funding opportunities;
• a sub-committee or panel with the task of assessing bids/decisions
• independent due diligence and assessment of the business case and value for money;
• specific arrangements for decisions to be signed off by a panel comprising board members from the local authority, in some cases including a power of veto;
• Section 151 officer line of sight on all decisions and ability to provide financial advice;
• use of scrutiny arrangements to monitor decision-making and the achievements of the LEP.

Conflict of Interest declarations must include employment, directorships, significant shareholdings, land and property, related party transactions, membership of organisations, gifts and hospitality, sponsorships. Interests of household members to also be considered.

LEPs to include in their local statements how scenarios of potential conflicts of interest of local councillors, private sector and other board members will be managed whilst ensuring input from their areas of expertise in developing strategies and decision-making, without impacting on good governance.

LEPs will need to publish a whistleblowing policy.

As part of transparency, in addition to the obvious things such as agendas and minutes, LEPs should maintain on their websites a published rolling schedule of the projects funded giving a brief description, names of key recipients of funds/ contractors and amounts by year.

GOVERNMENT RESPONSE – STRENGHTENED LEPs

Click to access Strengthened_Local_Enterprise_Partnerships.pdf

In accepting these recommendations the government in its “strengthened LEP” paper does add a few points of clarification which are worth noting.

Readers may recall our LEP, Heart of the South West (HotSW), proposing in its 2015 prospectus “towards a devolution deal” to deliver, amongst other things, a world-class integrated health and care system within our communities. A prospectus produced without any public consultation. Well, the government has taken on board a further PAC criticism that it has not been clear about the current role, function, and purpose of LEPs.

The government now says it will set all Local Enterprise Partnerships a single mission to deliver Local Industrial Strategies to promote productivity.

Each Local Enterprise Partnership’s overall performance will be held to account through measures agreed in their delivery plans. The Government will work with Local Enterprise Partnerships to ensure that they have these plans in place by April 2019.

In addition, Government will commission an annual economic outlook to measure and publish economic performance across all Local Enterprise Partnerships and benchmark performance of individual Local Enterprise Partnerships. In the light of HotSW aim of a 4% annual growth rate and record-breaking productivity growth, starting this year, this might prove to be an interesting exercise.

Other points on topics such as increasing diversity of board members are covered in the previous Watch blog:

https://eastdevonwatch.org/2018/07/27/government-proposes-shake-up-of-local-enterprise-partnerships/

MEANWHILE

The House of Commons Communities and Local Government Committee inquiry into Effectiveness of local authority overview and scrutiny committees was also investigating LEPs and made this recommendation in December 2017 [East Devon Alliance submitted evidence to this inquiry as well]:

“The Government to make clear how LEPs are to have democratic, and publicly visible, oversight. We recommend that upper tier councils, and combined authorities where appropriate, should be able to monitor the performance and effectiveness of LEPs through their scrutiny committees. In line with other public bodies, scrutiny committees should be able to require LEPs to provide information and attend committee meetings as required.”

Click to access 369.pdf

Russians give May’s Tories £800,000

“Theresa May could be forced to come clean on the source of Tory cash linked to Russia.

A report on meddling in UK politics by Vladimir Putin’s regime urges the Electoral Commission to devise “more stringent requirements for major donors to demonstrate the source of donations”.

The intervention by MPs on the Digital, Culture, Media and Sport Committee comes after a Mirror probe revealed the Prime Minister accepted a £50,000 donation from the wife of a former Russian minister – on the day she blamed Moscow for the Skripal poisoning.

In total, Mrs May has let more than £800,000 from Russia-linked sources into Tory coffers while PM.

Shadow Cabinet Office Minister Jon Trickett said she should hand it all back, adding: “Serious questions must be answered about why she thinks it is appropriate to accept this money after warning about Russian interference in the UK.”

And Lib Dem spokeswoman Christine Jardine said her “refusal” to explain donations “threatens the integrity of our democracy”.

A Tory spokesman said all donations are properly declared and comply with the law.”

http://flip.it/D1jX6R

Exeter Masonic Lodge prints Conservative Party literature

“Did you know that the newsletters and fliers posted through your letter box by Exeter Conservatives are printed inside Exeter’s mysterious Masonic Lodge?

It’s just one of the unusual and illuminating facts about the establishment tucked away on the historic Gandy Street. …

In the past year, the building has also become home to Exeter Conservative Party’s printing office.

Despite its reputation over its exclusion of women, female Tory party members now regularly enter the building – easily missed by the eye – to print off fliers, newsletters and other paperwork. …

Devon has around 50 halls and around 137 lodges or clubs.

A £2m fund, set up by former Exeter grand master William Alexander Kneel, donates around £40,000 a year in Devon.”

https://www.devonlive.com/news/devon-news/exeter-masonic-lodge-conservative-tory-1834379

“Jacob Rees-Mogg’s investment firm launches second Irish fund”

“A second investment fund has been set up in Ireland by the City firm co-founded by Jacob Rees-Mogg, after it warned earlier this year about the financial dangers of the sort of hard Brexit favoured by the Conservative MP.

The fund, which is backed by $50m (£38m) in seed money from the Swedish national pension plan, was created to meet demand from international investors, according to Somerset Capital Management (SCM).

Uncertainty over the UK’s stance on withdrawal from the EU and the potential impact on banking and related services has led asset managers based in London to establish new financial products in European financial hubs including Dublin and Frankfurt.

A spokesperson for SCM said that for many years it had plans to launch a dedicated strategy for UK and European investors, saying: “Our decision to choose Ireland as a domicile had absolutely nothing to do with Brexit. We have funds domiciled all over the world including in Europe, the US and Australasia, and we will continue to offer a global service to our client base.”

In March, SCM described Brexit as a risk in a prospectus to a new fund, which has been marketed to international investors who want to keep their money in the EU long-term.

The disclosures have been used by political opponents of Rees-Mogg, who has been working part-time at Somerset Capital in addition to his work as an MP and who has repeatedly dismissed the concerns of those worried about the financial risks of Brexit.

The MP has a stake of more than 15%, according to the register of MPs’ financial interests.

On Saturday, Rees-Mogg said Britain was heading for a no-deal exit from the EU but said falling back on World Trade Organization terms was “nothing to be frightened of”.

Rees-Mogg chairs the European Research Group, which continues to put pressure on the prime minister to adopt a more antagonistic stance towards Brussels as the UK negotiates its exit from the EU.”

https://www.theguardian.com/politics/2018/jul/22/jacob-rees-mogg-second-irish-fund-scm

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

HMRC declined to comment on individual cases.

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

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

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

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

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

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

“Revealed: Tory donors who paid £7m to socialise with Theresa May”

Owl says: hedge funds expect to make squillions from Brexit.k

Jacob Rees-Mogg’s business partner, Brexit backers and wife of Putin minister among benefactor

Jacob Rees-Mogg’s business partner, a string of Brexit backers and the wife of a former senior minister to President Putin are among the Conservative donors who have paid more than £7m to socialise with Theresa May since the general election.

Eighty-one party benefactors have paid a total of £7.4m to the Conservative party for access to the prime minister at dinners, post-prime minister’s questions’ lunches and drinks receptions since July 2017, records show.

Party insiders say the large amount raised over just nine months from a single revenue stream is evidence that the Tories are aiming to be “election ready” for the autumn.

At least 10 of the donors, who joined the Leader’s Group for £50,000 a head, are supporters of a hard Brexit.

Dominic Johnson, who attended two of the group’s events in 2017, is the co-founder of Somerset Capital Management – an investment firm set up with Rees-Mogg, a hard Brexiter and the chairman of the European Research Group [ERG].

Somerset was recently reported to be warning its clients about “considerable uncertainty” as a result of Brexit, and set up a fund in Ireland, which benefits from EU financial passporting rights.

Sir Michael Hintze, the hedge fund billionaire who gave £100,000 to Vote Leave, is a familiar figure in Conservative circles and attended at least one dinner in 2017 with the prime minister, sources said.

Hardy McLain, a retired US hedge fund manager living in London, attended events in 2017 and 2018. He previously donated £20,000 to the Vote Leave campaign.

It is the first time since July 2017 that any details of dinner guests of May’s Leader’s Group have emerged. Their identities have been quietly released by the Conservatives this week.

Receiving campaign donations is a routine activity for politicians. But each gift carries with it a potential conflict of interest if the prime minister’s policies appear to benefit those who made the donations.

Edmund Truell, who attended dinners in 2017 and 2018, owns a Swiss-listed private equity business called Disruptive Capital, whose mission statement is to “exploit market uncertainty” to generate returns.

Only two women are among the Leader’s Group donors disclosed in the documents.

Lubov Chernukhin, whose husband, Vladimir, was the deputy finance minister of the Russian president, Vladimir Putin, was given access to the prime minister between last July and September. She has given £626,500 to the Tories since 2012, including £160,000 to play tennis with Boris Johnson and £30,000 to dine with the defence secretary, Gavin Williamson.

Alisa Swidler, a US philanthropist and friend of Bill Clinton who has given £336,686 to the party, also attended an event with May.

The party’s chief executive, the mining tycoon Sir Mick Davis, told a meeting of donors in September that the party needed to raise an additional £6m through the parliamentary cycle if it was to win the next general election.

The party spent £18.5m on last year’s election, when the Conservatives lost their working majority, compared with £11m by Labour. Sources told the Guardian the Tories are aiming for a 40% annual increase in the party’s budget – money that will be spent on up to 100 local campaign co-ordinators.

Records show that Lord Ashcroft, the former Conservative party treasurer who gave millions to the party under William Hague’s leadership but stopped donating during Cameron’s premiership, appears to be back in the fold and is a member of May’s leader’s Group. He was joined by the former government adviser and investor in payday loans, Adrian Beecroft.

May appears to bring cabinet members to each event. She was joined by Amber Rudd and the party chairman, Brandon Lewis, at events between the election and the end of September; the chancellor, Philip Hammond, and Boris Johnson, the foreign secretary, accompanied her to Leader’s Group meetings in the autumn; between January and April this year, May was joined by Johnson, Michael Gove, Liam Fox and four other cabinet ministers.

The Conservatives had not updated details of donors who attended events since July 2017. Cameron pledged to release donors’ data following an outcry over the Leader’s Group dinners and whether they were allowing the rich and powerful to buy access to the cabinet.

The documents were spotted this week by campaigners for a second referendum on membership of the EU. Chris Bryant, the MP for Rhondda and supporter of the People’s Vote campaign, said: “People will rightly be angry to see the government listen to Brexit donors in return for donations to the Tory party while denying the British public a vote on their deal.”

https://www.theguardian.com/politics/2018/jul/20/revealed-tory-donors-who-paid-7m-to-socialise-with-theresa-may

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“New MP’s EXPENSES SCANDAL: MP’s fiddling the books will be allowed anonymity”

“MPs who are accused of cheating on their expenses will be able to remain anonymous under rules it has emerged, just after a record ban was handed to Ian Paisley after he went holidays funded by Sri Lankan Government.

The Government has been accused of trying to push through the change under the radar.

It would hide the names of all MPs under investigation and the Government has been accused of “protecting the sensitiveness of politicians”.

Since the expenses scandal in 2008, all MPs under inquiry are automatically published on the website of the Parliamentary Commissioner for Standards.

The new system would mean the process would be anonymous.

Further, the commissioner would not be required anymore to automatically publish the verdicts.

However, the Commissioner could decide to make decisions and complaints public if it is deemed to be in the public interest.

Ian Paisley was handed a record 30-day suspension from the House of Commons after it was revealed by the Daily Telegraph he went on two family holidays funded by the Sri Lankan government.

If the new change was already implemented the public may not have found out about the case of Mr Paisley.

Andrea Leadsom, Leader of the Commons, published the results as she is also head of a cross-party group set up last year after the sexual harassment scandal.

The Committee on Standards, that analyses complaints made against MPs, has said it does not agree with the decision and opposes it.

It aims to table an amendment to block the changes before a vote by members.

The Committee said: “Any decision to step back from this will be perceived as conducting investigations in secret and a radical departure from a commitment to openness and transparency.

“It is important to publish at least a summary of each case she has concluded so that it can be shown that justice has been done and that MPs are accountable.”

Kevin Barron, the chair of the Standards Committee, said: “It would be a huge step backwards in terms of transparency to block the publication of all disciplinary cases, including cases outside of the new code for things, such as incorrect use of stationery or abuse of their expenses.”

The commissioner’s inquiries this year have included Jeremy Hunt and Craig Mackinlay.

Sir Alistair Graham, the former chair of the Committee on Standards in Public Life, said it would “seriously undermine our democratic system”.

https://www.express.co.uk/news/uk/991074/MPs-anonymous-expenses-new-plans

London borough pulls out of housing development joint venture

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

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

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

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

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

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

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

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

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

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

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

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

Lendlease has been contacted for comment. …”

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