Some universities’ “growth” may be financially unsustainable

Alongside business people with dubious business interests, our Local Enterprise Partnership has three leaders from further and higher education. All of them blindly follow the mantra that economic growth is the only thing that government should be concentrating on.

This is what Public Service Finances currently has to say about this sector:

The financial sustainability of higher education is uncertain, according to the government’s university funding body.

The Higher Education Funding Council for England said its analysis of the latest financial forecasts submitted by higher education institutions showed some could prove unsustainable by 2018-19 due to inadequate surpluses, declining cash levels and increased borrowing. …

… Financial forecasts to 2018-19 showed a widening gap between the lowest and highest-performing institutions.

Surpluses were projected at 2.3-4.3% of total income, which HEFCE called “relatively small margins in which to operate, particularly in an uncertain external context”.

Student number projections showed predicted growth of 10.3% among home and EU students and a 26% increase in fee income from international students, to £4.8bn by 2018-19.

HEFCE warned the sector might find these goals hard to reach due to a declining cohort of 18-year-olds, uncertainty about EU students’ long-term eligibility for loans and grants and potential changes to student immigration rules.

“These challenges, taken together, could have a significant impact on the sector’s financial projections, even if the currently weaker pound assists in the recruitment of international students in the short term,” HEFCE said.

Universities and colleges expect to invest £17.8bn in infrastructure over the next four years, 51% more than the previous four-year average.

However, within this total though nearly a quarter intended to cut their infrastructure spend, even though across the whole sector £3.6bn still needed to be spent to bring non-residential buildings to a sound condition.

HEFCE said the sector’s trend of falling liquidity and increased borrowing had continued with borrowing expected to exceed liquidity levels by £3.9bn at July 2019.

It described this as “not sustainable in the long term”.”

http://www.publicfinance.co.uk/news/2016/11/hefce-issues-warning-university-finances

Javid reiterates: no super-Mayor, no devolution

So that’s that – either Devon will be ruled by a Somerset super-mayor, or Somerset will be ruled by a Devon super-mayor or BOTH will be ruled by a super-dodgy-business-person with vested interests in one or both counties!

Speaking to the County Councils Network on Monday, the local government secretary said:

“… he was open to reorganisation proposals, such as that put forward by Buckinghamshire County Council to abolish its districts and form a county unitary.

This proposal was “exactly the kind of proactive, locally driven thinking I want to see”, he said.

While not committing commit himself on Buckinghamshire’s plan, he said: “Unitary status can be a great model…but I’m not for one moment saying it’s for everyone. This is not compulsory. It’s not going to be imposed.

However, he dashed hopes that he would allow devolution in county areas without the creation of elected mayoralties.

Former chancellor George Osborne had insisted on mayors as a condition of devolution deals but after his departure some county leaders hoped to change this policy.

Javid told the CCN: “I get that directly elected mayors aren’t universally popular within local government. And I know that’s especially true of the counties.”

He recognised arguments that counties were too large for one person to control but said: “I’m not going to devolve significant new powers and more taxpayers’ money without a corresponding increase in local accountability.”

Mayoralties would be “a real red line for me when it comes to negotiating devolution deals”, he added.”

http://www.publicfinance.co.uk/news/2016/11/nearly-all-councils-submit-plan-four-year-funding-deal-says-javid

How many tiers can “Local” Government take before it collapses?

Owl has lost count of the number of tiers and organisations and partnerships currently interfering in so-called “local” government, see:
https://eastdevonwatch.org/2016/11/03/unitary-councils-save-money-yet-a-few-years-ago-they-didnt/

Which leads to the question: just how many tiers of government do we NEED and how many can we AFFORD? And how many is too many?

For example, the savings by eliminating district councils, regional super-authorities and makeshift arrangements such as Greater Exeter would almost certainly be huge. You could still have flexible cooperative arrangements such as Strata, without having all the paraphernalia and bureaucracy.

Anyone campaigning for the County Council who includes on their platform local government reorganisation, with County and Parish Councils as the only tiers of local government might well be very popular. It would be possible to combine such a package with maximum localism/subsidiarity. For example, if the District Council was dissolved, all its responsibilities, where practicable, could be transferred to the lower tier councils for truly local management.

Removing two or three tiers of government would almost certainly produce enough savings to eliminate local NHS cuts and debts at a stroke. “Save the NHS by cutting local government bureaucracy” would be a heck of a slogan!

And the elimination of all that bureaucracy and repetitive form-filling and buck-passing could bring enormous efficiency savings and productivity.

In East Devon we would probably be immediately £15-20 million better off just with the cancellation of the new HQ at Honiton.

Whilst many staff would be transferred to town councils to continue to do the jobs that they presently perform, there would probably be a loss over time through natural wastage of perhaps 100 to 200 jobs, representing a cost saving of £3-5 million per annum. Plus reduced operational running costs of around £2 million.

This means a cash windfall of about £300-400 per household to everyone in the District, and average council tax bills would be about £130 lower.

But the big benefit would be in greater efficiency and local connectivity. A huge democratic boost.

Discuss!

Devolution: centrally-driven, centrally led, locally worthless

A report of a meeting of local Green Party and Devon United groups in south Devon:

“DEMOCRACY – LOCAL:

The meeting in Kingsbridge last week demonstrated, through the participation of a small, engaged and knowledgeable group, that the topic of Devolution has yet to excite a broader segment of the local population.

The group present, largely drawn from Totnes and Dartington with a majority representing the Open Democracy group, Devon United, engaged in a serious and considered debate of the merits and limitations of the present Devon County Council devolution prospectus.

The discussion was greatly facilitated by a thoughtful and grounding presentation from Professor Chris Balch who was able to set the present proposals in a broader historical and geographic context as well as highlighting some of the conclusions from his research on the role of the Local Enterprise Partnerships (LEPs).

The group, which included County and District Councillors from Green, LibDem and Tory parties, worked towards a conclusion which suggested action on two fronts:

1. The Constitutional Question – at some stage, if the present proposals are supported by Government in the Autumn statement, Devon and Somerset County Councils are bound to consult their resident populations more directly on their intention to create a Combined Authority for Devon and Somerset to incorporate the interests of County and District Councils and Unitary Authorities.

This consultation exercise is unlikely to lead to a local referendum, but there will be an opportunity, probably in the Spring 2017, for a concerted campaign by progressive parties and independent groups to express concerns about the formation of another tier of local Government and one which seeks to combine two Counties for the convenience of an unelected LEP.

As Julian Brazil so clearly stated in his opposition to this proposal, the Combined Authority would be directly in support of the highly problematic nuclear power station, Hinkley Point C as well a significant defence industries unidentified within an Aerospace label, both located in Somerset.
SDGP members are encouraged to join with Devon United and other progressive groups to mount an effective campaign of education and mobilisation once the consultation is announced.

The Economic Prospectus

– it is clear that DCC has no intention of consulting on the content of the Devolution Prospectus.

As Chris Balch pointed out, this is essentially aimed at meeting central Government’s requirements for economic growth through ‘high value added’ industrial sectors. The whole basis of the highly optimistic outcomes of the prospectus in terms of jobs and wages is assumed through growth of large scale enterprise in Exeter and Plymouth, in Data Analytics and Marine Industries respectively, and significant growth in housing.

The group agreed that an ‘alternative prospectus’, based on a broader understanding of the economy of the County and on progressive values and concerns could provide the basis for an election campaign by Green parties across Devon along with Independents and other progressive candidates.
At present a small group of Green party members from across Devon is working on such a prospectus and Robert Vint, for the LibDems, proposed that a broader alliance might engage with this work recognising established topics with democratic legitimacy.

Subsequent to the meeting Alan White and Georgina Allen, initiator of Devon United, have published a set of ideas on the South Devon Watch facebook page.

Common themes to emerge so far include:
Affordable Housing
Renewable Energy
Farming, fishing and food
Support for Micro- small and medium sized enterprises
Health and social services to recognise the population and geography of the County.

As one would expect from the Green Party’s core values, each of these topics combines economic with social and environmental implications, and that has to be emphasised in the alternative prospectus.

While there were a number of points of view expressed in the meeting towards differing geographical areas that might constitute an effective location for devolution of fiscal responsibilities and services, it was unanimously recognised that England is, by far the European country with the most centralised form of government. As the present proposals for devolution really do not address this issue, with primary negotiations clearly being with Government on their terms, the alternative prospectus also need to consider how we would intend to engage the relevant population in a discussion that could affect their lives far into the future.

The group at the meeting responded to a number of questions suggested by the notion of ‘Resilient Community’ fundamentally based on the recognition of identity with Place and People as the foundation for local politics. It was clear from the attendance at the meeting and many of the comments made that a politics based on Place and People needs to be rebalanced with the present politics based on party positions and power.

Members are encouraged to engage in the development of campaign strategy and support through attending relevant meetings and engaging in the growing discussion on social media.”

Unitary councils “save money” … yet a few years ago – they didn’t!

Owl is confused.

A few years ago, EDDC spent more than £250,000 to persuade us – and the Government – that they should NOT be forced to amalgamate into, basically, a “Greater Exeter” OR a unitary authority.

NOW:

We have East Devon District Council

We have Devon County Council

We have Greater Exeter – EDDC, Mid-Devon, Teignbridge and Exeter Councils – the very thing EDDC fought only a few years ago

We have STRATA – an IT partnership between EDDC, Teignbridge and Exeter but NOT Mid-Devon

We have the Local Enterprise Partnership – all of Devon and all of Somerset

AND

Research apparently reveals that unitary councils could save several billion pounds:

Creating 27 unitary councils across the whole of England could save as much as £2.9bn, according to an independent analysis of local government reorganisation options undertaken for the County Councils Network.

The report by consultants EY examined six different single and two-tier governance scenarios for county and district authorities, using existing county boundaries. Based on the analysis of national data, EY found that creation of unitaries along county boundaries could save between £2.37bn and £2.86bn over five years, and average up to £106m per county. The single unitary option has the shortest payback period, generating savings within two years and two months, according to the review. …”

Owl’s head hurts…

LEP extends its tentacles to Cornwall and Dorset: Mayor for the South-West?


” … HotSW LEP is committed to delivering the benefits of our strategic work and funding bids to the companies and communities that fall directly within our area. These are our partners and are stakeholders in our successes and achievements. Sometimes business interests don’t neatly match administrative boundaries and for some time we have been working where appropriate with our neighbours on common campaigns or programmes.

Elsewhere in the country, the numerous LEPs in the Northern Powerhouse and the Midlands Engine also work together on their common agendas.

So we’ve been working with our LEP partners in Dorset and Cornwall and the Isles of Scilly to form a new thought-piece to market our area and its growth agenda where these cross our boundaries; which we’re calling Connecting the South West as a working title. It’s early days, but there’s real commitment in this group to build on the years of expert evidence building and strong Strategic Economic Plans that have risen from the government’s mandate to generate growth through LEPs and localism.

It’s often the case that when there is a mood and an appetite for change, that several organisations are on a similar journey, albeit in different ways. Earlier this month saw the South West Growth Summit – organised and led by Pennon and the Western Morning News – welcome businesses and local leaders to discussion panels and an inspirational speech by Secretary of State for Communities and Local Government, Sajid Javid, who hailed the South West as an area with “almost unlimited potential”.

We expect more to happen on this theme in the coming months and years as the South West embarks on its renaissance.”

http://us4.campaign-archive1.com/?u=4e59660292bd6b4a5c7d7b8a7&id=e747106254&e=fa5cdb1f18

Interesting thoughts on post-Brexit devolution in England

“Uncertainty surrounded firm devolution plans for some areas before Brexit. But what about now? This timely post gives a useful update on what we can expect next on the big issue for our regions.

By PANEL WRITER Will Mapplebeck

Back in June, just before the Brexit vote, I wrote a blog post for comms2point0.co.uk called Eight Things You Always Wanted to Know About Devolution But Were Afraid to Ask. Given that quite a lot has happened since then, I thought it might be worth an update.

1. It’s not going anywhere

Despite some ‘wobbles’ at the start of Theresa May’s premiership when it appeared the policy of having directly elected mayors might be ditched, it appears that devolution is still a ‘big deal’ for Theresa May’s Government. The elected mayor elections are still on (see point 5) and the Government is still talking to and encouraging applications from groups of local authorities for devolved powers.

2. A new buzz phrase – inclusive growth

Back in June, I pointed to the fact that devolution had a strong economic case behind it, but that the social aspects were growing in importance. This is the idea that you can’t really create growth if you leave people behind as this actively damages the economy. This policy direction towards inclusive growth – making sure everyone shares in the proceeds – has continued, perhaps driven by Theresa May’s surprising play for the centre ground in her first speech as PM. The key message from Core Cities UK and others – see the RSA’s Inclusive Growth Commission interim report – is that inclusive growth can only happen at a local level, and will only happen when places are given more freedoms and powers.

3. Brexit changed everything… and nothing

The biggest decision in post war British politics was bound to cause a few high profile casualties, but so far the idea of more power to place has not been one. In fact, there’s wide acceptance that the reasons behind people voting to leave was partly due to a sense of alienation from mainstream politics and a feeling of helplessness in the face of global economic forces. People wanted to ‘take back control’ and devolving powers to local level gives them a chance to do that. There’s also a general cross-party understanding that, whatever the outcome of Brexit, our cities and other places remain relatively underpowered compared to their European Counterparts and our country is one of the most over centralised in the World.

4. Move over Northern Powerhouse, there’s a new slogan in town

While at Conservative Party Conference in Birmingham, I couldn’t help noticing that Midlands Engine was everywhere – the subject of numerous fringe programmes and receptions. Last year, in Manchester it was another slogan that sounds like a bad gay nightclub, Northern Powerhouse. Make no mistake, the powerhouse isn’t dead, despite being tied strongly to former Chancellor George Osbourne, but the Midlands Engine is the slogan of choice in various parts of Government at the moment.

5. The Metro mayors are coming

Metro mayor candidates are now lining up for battle in May, don’t under-estimate how visible they will become when they are elected in Merseyside, Greater Manchester, Tees Valley and the West Midlands (South Yorkshire’s mayor is still the subject of debate at time of writing). Metro Mayors will make sure they become the go-to for media comment and they’ll be full of ideas to raise their public profile, proving they are actually doing something. Expect new mayors to zero in on issues like transport and housing, everyday things that make a difference to voters. Interestingly, there are no high profile independent candidates, the idea of a ‘celebrity’ mayor like Terry Christian or Alan Shearer doesn’t seem to have materialised.

6. Cities still at the heart, but other places need some love as well

One big criticism of the devolution agenda that it was all about cities, big cities. I work for Core Cities UK, so I’m a little bit biased on this point. For us, the economic evidence is clear – they are the country’s economic driver and given more freedoms – like their European counterparts – and they will do far more for UK Plc. But Theresa May has signalled that other, smaller, places are important too.

7. Not everywhere got a deal… or a mayor

George Osborne would have liked mayors to cover all the big cities, but political infighting and suspicion of the Government’s agenda put paid to that. Some big areas, notably the North East and West Yorkshire, ended up with nothing at all although talks still continue. Devolution is about more than just mayors, but the Government has stayed true to the original idea that if you want the best deal, you need to accept the idea of a mayor.

8. Remember, it’s still all about the people

I’m going to say it again, at the end of the day all this policy theorising and political manoeuvring comes down to people. People’s services, homes, jobs and lives. If you want to communicate it well, think about the difference it will make and what will actually change in terms of everyday life.”

http://comms2point0.co.uk/comms2point0/2016/10/24/8-things-you-still-need-to-know-about-devolution-and-are-still-afraid-to-ask

Oh, oh – Government says we have to have an elected Mayor!

Must be a credible figure … now, THAT is going to take some finding! From Devon or Somerset? Career councillor or business person? Nuclear interests or not? LEP member or not? Brexiter or not? Developer or not? Ruralist or Urbanist? And where is DCC, Greater Exeter and EDDC in all this? …

AND Sajid Javid manages to disparage tourism and older people in one paragraph.

“Ambitious devolution plans for Devon and Somerset need an elected mayor, the region’s economic leaders have been warned. Sajid Javid, secretary of state for communities and local government said there has to be a credible figurehead for economic growth for the Government to be prepared to hand over powers for investment, transport and infrastructure.

He made the stark statement at the South West Growth Summit, a major meeting of business leaders, politicians and academics from across all sectors in the South West.

The assertion comes as all 17 Devon and Somerset councils reach a critical stage in their bid for devolved powers – and the sticking point is the need for an elected mayor.

Mr Javid said that only an elected mayor could bring the kind of ambitions devolution that the region is calling for. To a packed Reed Hall at the University of Exeter, the minister, who is an alumni, said: “If you want an ambitious devolution deal then you have got to have a mayor.”

And he argued that Cornwall’s Devolution Deal without an elected mayor was not ambitious and did not involve any hand over of money. “What’s the point of going down that route?” he said.

Mr Javid called for the region to have one voice on its plans for economic prosperity. In a region that is challenged by disparate communities and historical rivalries, he said: “If you are going to make a success of the south-west that whole attitude has to change.”A region of collaboration and co-operation can make a difference. It has to happen,” he said.

The beauty of the region means as strong reliance on tourism, but it is a double-edged sword, he warned. “It perpetuates the idea that this is a low skill and part-time economy. It is not just a sunny playground for the rest of the country nor a retirement community for Britain’s pensioners.”

He said the 3 million population of Devon, Cornwall, Somerset and Dorset were leading the way in aerospace and creative industries and it is a question of taking that message to the rest of the country and the world.

The South West Growth Summit was hosted by the Pennon Group in conjunction with the Western Morning News and the region’s Local Enterprise Partnerships. The debate held at the event will go on to help form a Growth Charter for the South West, a document that will be presented to the Government ahead of next month’s Autumn Statement.

The region’s MPs joined business leaders to discuss a number of key issues facing the region, including keeping the brightest talent and attracting investment.
Connectivity in terms of mobile and broadband coverage and investment in the road, rail and air routes continue to be high on the agenda.

Chris Loughlin, Chairman of the Pennon Group called for the region to embrace the digital revolution, the kind of business that makes a virtue of working in remote communities.

He said that the region must decide what the South West is and formulate a concept to rival the Northern Powerhouse or Midlands Engine to capture the collective consciousness. “It is essential that we have a clear unified voice to stand up strong for the South West.”

http://www.plymouthherald.co.uk/an-elected-mayor-is-the-answer-to-devolution-ambitions-warns-javid/story-29829580-detail/story.html

Implicit admission that LEP is mothballed and its Single Economic Plan was not effective and new consultation needed

QUESTION FROM COUNCILLOR VINT
Re: HOTSW and Economic Development Consultation

When drafting the economic development elements of the Heart Of The South West Devolution Prospectus how were the primary employment, housing and social needs of the region identified, and how were residents and small businesses consulted to help identify these needs?”

REPLY BY COUNCILLOR HART

“On the 19th September 2016, I gave a presentation at a Member Development Session on Devolution which is available on the Councils website at

Devolution

The presentation is clear in setting out the next steps for the partnership.

In respect of further engagement with key stakeholders in the development of our joint economic priorities; this will be undertaken through the development of a Productivity Plan. This plan will replace the current Single Economic Plan developed by the Local Enterprise Partnership and is an opportunity for all local authority partners and stakeholders to fully engage in developing proposals that will deliver greater prosperity across the Heart of the South West.

The Partnership is starting work on this in Autumn and will be engaging with groups through to Spring. Members will have the opportunity to consider the draft Productivity Plan before final approval.”

This presentation also set out a timetable for formal public and stakeholder consultation starting in the early New Year on the creation of a Combined Authority and a draft deal with Government.

At this meeting I did, however, emphasise that this timetable is subject to Government formally engaging with the Partnership.

I can confirm that the Partnership is not actively engaged in formal negotiations with Government and therefore this timeline will be amended.

The Partnership is clear that it will only go to formal public consultation when it has an offer from Government for the public and stakeholders to consider. I will, of course, continue to keep Members updated on progress with Devolution.

http://democracy.devon.gov.uk/mgConvert2PDF

Take control …

“Take control” are two of the most potent words in our language that have come to mean just one thing in the weeks since the Brexit vote.

But the desire for more control over our lives is not the exclusive preserve of Leave voters – and nor can it or should it be confined to the issue of immigration.

Our polling shows that people from all backgrounds and with every kind of belief now feel they have lost control over what matters most to them, whether it is the price of a home, the pace of technological change or the poisoning of our planet.

Far from being supporters of the status quo, a clear majority of remain supporters specifically identify big business and corporate elites as having “too much power over their lives”.

By an even bigger margin of 62%, those who voted remain in the referendum say that only a few people in power take all the big decisions, adding that there is not much the average citizen can do about it.

Those decisions now seem further out of reach than ever for millions of people after the party conference season. The government has confirmed its determination to pursue a hard Brexit, even though that risks making matters worse for people who already feel left behind in this economy.

At the same time, many people see opposition parties as being in disarray and deeply divided, leaving some to despair at the prospects for progressive politics ever providing answers, let alone getting the chance to put them into practice.

A storm in our economy and our democracy that has been gathering for decades is now firmly upon us. A torrent of wealth of power is washing away even the fragile footholds people had established in the economy. Many more now face losing control all together in the face of global, technological and climate change.

Yet, even in the midst of all this upheaval, a surge of energy is being generated that can crack open new possibilities for people to take more control right now – not at some distant point in the future.

The New Economics Foundation seeks to give people the tools to take control and change their lives for the better
Today, the New Economics Foundation is setting out ways to shift debate beyond secret negotiations over Brexit in the capitals of Europe, seemingly endless party infighting in Westminster’s opposition, or literal fights in Brussels over whose turn it is next to lead Ukip.

Instead, we are setting out an agenda for people to take control themselves, without having to wait for government to do it for – or to – them.

Our agenda for people draws on real experiences, ranging from those in seaside communities who feel abandoned by the political elite, taxi drivers in London trying to make a living in an Uber-ised economy, small businesses starved of finance, consumers overcharged for energy, and young families hoping for their first home or worried about the cost of childcare.

It seeks to give all of them the tools they need to take control and change their lives for the better. Coastal communities will find ways to revive a clean marine economy which brings together people who care about the environment with those who care about getting decent jobs. We are helping to develop a new taxi app owned and controlled by drivers themselves, from London to Leeds, to give them the chance to share in the vast new digital value being created around us.

The foundation is also drawing up plans to turn the scandal-torn RBS into 130 stakeholder banks that serve local firms rather than expecting them to serve it. We have teamed up with the Switched On London campaign to help communities generate renewable and affordable energy that gives them a real stake in a low-carbon future.

Furthermore, in a project with Citizens UK, we are creating the first maps of vacant public land available for the houses that need to get built. And we are helping parents expand the number of childcare co-operatives so they can not only afford a service fundamental to modern working lives, but also exercise more control over it.

This is not an agenda merely for clicktivists who think change happens on a smartphone screen on the way to a rally. We recognise that the tools people need to take control must be fashioned in partnership with institutions wielding real power, ranging from devolved government, city mayors and forward-looking businesses to trade union and community-led campaigns across the country.

But this is the first time a major thinktank has set itself a bigger ambition than merely influencing ministers or future legislation, or getting included in a political party’s manifesto.

The New Economics Foundation will focus on helping people and communities take control by engaging with new partners – from the Mayor of London and Google DeepMind to the GMB and Citizens UK – to explore new possibilities for change right now.

We are rooted outside the traditional boundaries of politics. We care most about people’s everyday experience. And we will work with communities of all kinds to give them the tools they need to build a better future because there has never been a more urgent need for a new economy than right now.”

http://www.theguardian.com/commentisfree/2016/oct/11/politicians-housing-employment-childcare-control-new-economics-foundation

“Greater Exeter” and its impact on housing and infrastructure in East Devon

We learned recently that the current Stagecoach depot opposite the bus station in Exeter is going to be turned into a massive block of student housing – 557 units.

Now we hear that there are plans for the site of the Honiton Inn, on the roundabout opposite the bus station to be another student block of 101 flats with their own private gym and cinema – opposite a public gym and cinema!

http://m.exeterexpressandecho.co.uk/plans-in-for-huge-exeter-city-centre-student-block-on-honiton-inn-site/story-29794670-detail/story.html

What effect will this have on East Devon?

Well, “Greater Exeter” – whose “Visioning Board” like all such development and regeneration boards in “Greater Exeter” meets in secret – is making arrangements to do the next revision to its 3 Local Plans (Exeter, East Devon and Teignbridge) together.

It will be totally evident (in fact it is already) that Exeter’s main growth in housing will remain student housing. So, where will housing for other people go? Obviously East Devon and Teignbridge.

Cranbrook has natural boundaries beyond which it will soon make its further expansion much more difficult than heretofore. Therefore, it will be towns such as Exmouth, Honiton and Sidmouth – and the green fields in-between – that must be expanded to take in the commuters into Exeter, with a possible massive impact.

None of this is being put before the general public in any of the three areas nor is adequate infrastructure being planned for this big change (or at least we cannot be allowed know of any). And, of course, our Local Enterprise Partnership will “own” the business rates of the Exeter “Growth Area” and will have its fingers in the many development pies.

Time to start talking about the NEXT revision of the Local Plan which may well see even more massive development in East Devon on a much bigger scale than we could ever have imagined and could dwarf the extra numbers already agreed..

Councillors to be told about devolution ” myths” – though some of them seem to be reality!

According to this week’s EDDC Knowledge newsletter, all councillors have been invited to a meeting on Thursday 20 October at 5 pm to hear a presentation on a “Devolution – ‘myth busting’ briefing”.

This presentation has already been given to DCC councillors and here is one Councillor’s report (Robert Vint):

“On Monday Devon County Councillors were presented with a “Myth Busting” training session on Devolution. On Thursday there was a repeat session for South Hams District Councillors.

The “Myths” they were attempting to “bust” were that the Devolution process was led by the LEP, was undemocratic, would result in local government reorganisation / centralisation etc.

The explanations – or non-explanations – only strengthened my concerns. It was confirmed that there would be no public consultation on the economic development plan but only on the Combined Authority proposal and that the LEP had played a central role.

I asked why the plan did not start by identifying local needs such as rural unemployment and affordable housing then consult communities and small businesses on how to tackle these problems. They said not to worry as this was an outline economic plan – but later they confirmed that there would be no consultation on the economic plan or any opportunity to change it.

We have a Devolution Prospectus written by the few big businesses in the LEP to serve their own needs rather than those of the wider community of Devon and Somerset. This has then been rubberstamped by local authorities who did not have the staff, time or vision to rewrite it to meet our real needs and who failed to consult residents and small and family businesses. As a result we will be subjected, without any opportunity to comment, to a local economic development strategy that will serve the wealthy rather than the majority and that will fail to provide jobs where they’re needed or houses to the people who need them most.

In contrast the RSA – Royal Society of Arts – outlines how we should be delivering genuine, fair and inclusive devolution.

The UK’s economic status-quo has resulted in huge sections of our population being ‘left behind’. So the RSA are proposing a radical programme of devolution, inclusive industrial strategies and investment in human capital to create a more inclusive, equal society.”

LEP creates its own “Business Forum” – but it’s independent, honest guv!

Owl’s view: Unfortunately, it still walks like a duck, quacks like a duck and is still one hundred percent an LEP duck! Oh, and who is on it’s board – LEP Board member Tim Jones – quack, quack!

“A new business group has been formed to advise Government decision makers – but stressed it is not in competition with other South West business organisations.

B4SW will provide information and reports to the South West Local Enterprise Partnership (HotSW LEP) and ensure businesses across the region have a strong voice in discussions over Government investment.

“We have no intention of competing with other business groups,” Mr Marrow said. “They are doing good stuff.”

He explained that B4SW may be new, but is actually a “restructuring” of the Heart of the South West Local Enterprise Partnership’s (HotSW LEP) business forum.

That body was set up by the LEP, but was nevertheless independent of it, in order to provide business engagement.

But the forum was often mistaken as being part of the LEP, Chris Marrow, B4SW chairman, explained.

So, he said, B4SW has been formed as a community interest company (CIC), a type of social enterprise, to provide “a better structure to that of the forum, which had been “an informal group”.

Mr Marrow said the new organisation would report to the LEP, the organisation created by the coalition Government in 2011 to determine investment priorities, but is not constrained by the HotSW area of Devon and parts of Somerset.

“We meet around the region and will cover Cornwall,” Mr Marrow said, at an early meeting held in Plymouth.

“It’s a forum in which business people can come together and explore ideas and put their expertise back into the community for the advantage of the region.”

Mr Marrow said B4SW is composed of business people with vast experience in sectors such as maritime, supply chain, education, rural development and overseas trade.

“We have business people with particular expertise, a lot of experience in international affairs, with overseas contacts, and work with people in Africa and China,” he said.

He said the executive board has links to various other organisations such as universities and colleges, Chambers of Commerce, and the Federation of Small Businesses.

“The objective is to help businesses develop in the South West,” he said. “That includes improving exports, productivity, and job creation.”

He said B4SW would provide “blue sky thinking” and supply reports to the LEP.

He gave examples of studies into biofuels, ballast water management and kelp (seaweed) farming.

B4SW has also arranged a visit from transport training experts in South Africa and had discussions with Plymouth University and Flybe about maritime and aviation training.

Tim Jones, a B4SW board member, said the aim is also to bring together all business organisations across the HotSW and Cornwall and Isles of Scilly LEPs.

He said it was vital businesses shared a unified voice in order to push for Government investment, especially as political devolution is on the agenda.

“A combined business voice is essential, and becoming more so as we move down the devolution agenda and anther round of Government austerity,” he said. “So the cooperation of the business community is crucial.

“With devolution, although there is talk about business engagement, there’s a fear the voice of business will diminish.

“Combine that with the problems Whitehall has about infrastructure investment in the South West, it’s vital we have a single voice coming from the business community.”

http://www.plymouthherald.co.uk/new-business-group-set-up-to-push-for-government-investment-in-south-west/story-29775868-detail/story.html

“Theresa May defends her plan to keep Brexit negotiation details secret from Parliament”

“Theresa May has defended her plan to keep key details of the EU exit negotiations secret from Britain’s Parliament.

The Prime Minister said that though MPs would be informed at “various stages”, they would not be privy to precisely what her negotiators were doing.

Last month Brexit Secretary David Davis told a Parliamentary Committee that he would “not be able to tell you everything, even in private”.

The approach is a stark contrast to the course being set by the EU, with plans reportedly being formed to keep the European Parliament informed with regular updates.

Questioned on the secrecy ahead of the Conservative party conference in Birmingham, the Prime Minister said transparency could jeopardise Britain’s negotiating position.

“First of all, of course parliament will be involved in this process. The Great Repeal Bill, Parliament will be having its say on that,” she told the BBC’s Andrew Marr Show.

“Of course at various stages we will be keeping parliament informed. This is not about keeping silent for two years but its about making sure that we are able to negotiate, that we don’t set out all the cards in our negotiation.”

“Because as anybody will know who’s been involved in these things, if you do that up front, or if you give a running commentary you don’t get the right deal. What I’m determined to do is get the right deal for Britain.”

http://www.independent.co.uk/news/uk/politics/theresa-may-article-50-brexit-details-secret-parliament-david-davis-a7341266.html

And that, ladies and gentlemen, is sovereignty.

It seems she has learned well from EDDC Jedi-masters!

Just substitute Diviani for May and Morai or “Greater Exeter” or devolution deals withe the LEP for Parliament and local democracy for sovereignty and it is exactly the same situation. We don’t tell you anything at all during negotiations, we tell you almost nothing at all after negotiations and then we tell you all how to vote about the negotiations! Or maybe we don’t allow you to vote at all!

If devolution is the answer – what was the question?

Devolution doesn’t always mean taking back control

Since Tony Blair became prime minister in 1997, successive UK governments have fiddled around with ways of devolving power from Westminster and Whitehall. The most radical has been Scottish devolution, which continues to evolve. The least coherent has been the patchwork of schemes developed across England, ranging from a well-thought out arrangement for London, with a directly elected mayor and assembly, to the make-it-up-as-you-go-along “devolution deals” for the rest.

The coalition government of 2010-15 abolished – wisely – the regional governance bureaucracies. The first big replacement idea was Local Enterprise Partnerships (LEPs), intended as “business-led” mechanisms for spending public money. The areas covered by LEPs were in some cases obvious, based for example on established city regions or former metropolitan counties. In others the rationale was less clear, perhaps nowhere more so than the Heart of the South West (HotSW) LEP, covering a massive area from Plymouth to the south of Bristol [1]. It’s tempting to think that after Cornwall decided to go their own way and Bristol wasn’t having any truck with its Somerset neighbours, that HotSW was the “bit left over”.

The performance of these fundamentally secretive and undemocratic bodies is not the focus of this post [2]. They are relevant because the LEP areas have in some cases – including HotSW – formed the basis of the subsequent devolution proposals in England.

The government has been inviting groups of local authorities to submit proposals for devolving decision-making in certain functions, particularly infrastructure and economic development, but not limited to these.

The rationale behind this approach is that increasing productivity, a key goal of government policy, is best achieved by local targeting of support measures through local authorities and business interests working together.

The government has made it clear that access to some central funding is dependent on devolution deals being agreed. Invariably, local authorities across the area commit to setting up a “combined authority” to take the decisions. Unlike London, this would not be directly elected but would be made up of the leaders of the constituent councils plus non-elected representatives of the NHS and the LEP. Initially, agreement to having a directly-elected mayor was a condition of a devolution deal but the government now seems to be less rigid on this.

One of the problems with this approach is that it was designed for large urban areas. Greater Manchester, for example, has operated as a partnership of councils across a coherent area since the 1960s when Passenger Transport Authorities were set up. Manchester is the trail-blazer in the current devolution game, and it clearly works for them.

What is less clear is that the combined authority structure will work well in those areas of England that aren’t part of a conurbation. A pretentious-sounding body called The Independent Commission on Economic Growth and the Future of Public Services in Non-Metropolitan England produced a report last year arguing for devolution deals for the rest of England [3].

It does make the useful point that LEP areas do not in most cases coincide with functional economic areas (a conclusion which should be enough to discredit the whole idea of LEPs), but is otherwise a typical product of this debate in that it focusses on structures and “partnerships” from which communities are largely excluded.

The councils within the HotSW area have submitted a devolution bid to the government [4]. The bid identifies 6 challenges for the area (low productivity growth, limited labour market, patchy performance in innovation and enterprise, an ageing population, health and care integration, infrastructure and connectivity) and 6 “Golden Opportunities” for improving growth and productivity (marine, nuclear, aerospace and advanced engineering, data analytics, rural productivity, health and care). The bid has a wholly economic focus: other than in references to care, the word “social” does not appear in the document, and there is no acknowledgement of the impacts of the plans on the natural environment.

If the bid succeeds – and at least some of the councils are treating the whole exercise with a degree of caution – decision-making on the plans and services covered by the bid will be sucked upwards from the councils and the people they represent. How the combined authority will balance the interests of, say, Plymouth with those of people in the Mendips will be discussed in officer-led groups behind closed doors – because that is the only way “partnership” working can be made to operate in practice. The need to prepare for joint meetings gives authority officers huge influence over agendas and decisions because of the need to coordinate positions and identify common solutions in advance of meetings.

The combined authority itself will be made up of leaders of the constituent councils and others. It will not be directly elected. Trying to influence its decisions will be next to impossible for individuals and community groups. The bid’s economic focus ignores environmental and community questions completely, so being able to provide a counter-balance is hugely important. As it is, the bid’s environmental credentials are defined by the partnership’s LEP-led role as a cheerleader for the new Hinkley Point nuclear power station.

Other devolution bids across England generate similar challenges. At a time when disillusion with our politics is at an all-time high, it is puzzling – to put it mildly – that decision-making is to move even further away from the people most affected

NOTES:

[1] The map of LEP areas at http://www.lepnetwork.net/the-network-of-leps/ shows just how large the area is.

[2] An excellent House of Commons briefing note (July 2016) provides a concise guide to LEPs including reviews of their performance – see http://www.parliament.uk/briefing-papers/sn05651.pdf

[3] See http://www.local.gov.uk/non-met-commission

[4] The bid document is at https://new.devon.gov.uk/democracy/files/2016/01/Heart-of-the-South-West-Devolution-Prospectus.pdf

https://petercleasby.com/2016/09/30/devolution-is-not-control/

British public will pay decommissioning costs of Hinkley C

There will be some VERY happy nuclear-vested LEP members who will surely be hoping to cash in there when the time comes and their grandchildren are running their companies!

The French and Chinese companies that are to build the £18bn Hinkley Point C nuclear power station will have to pay up to £7.2bn to dismantle and clean it up. [but read further – the cost is built in to the price we will pay them for electricity generated].

Documents published yesterday reveal for the first time how much the developers, EDF and China General Nuclear Power Group (CGN), will have to pay to decommission the plant, beginning in 2083.

The new reactors in Somerset will be unique in British nuclear history, as they are the first for which the operator will have to pay to make good the site afterwards.

“Waste transfer contracts signed today mean that, for the first time in the UK, the full costs of decommissioning and waste management associated with the new power station are set aside during generation and are included in the price of the electricity,” EDF said in a statement.

Decommissioning costs ate up around half the budget for the now-disbanded department of energy and climate change, after the liabilities for cleaning up old nuclear plants were effectively nationalised in 2004 and 2005 when two companies faced financial problems.

The Hinkley Point C decommissioning costs are estimated at £5.9bn to £7.2bn, with the dismantling of the plant expected to begin in 2083. The government, EDF and CGN anticipate the winding up of the new reactors will continue well into the 22nd century. The plant is expected to be fully decommissioned “from 2138” when the final spent fuel is disposed of.

Experts said the cost estimate was likely to be on the low side. “The reality in terms of decommissioning is that it always costs more than people say,” said Dr Paul Dorfman, of the Energy Institute at University College London.

He claimed that the precedent of the government taking ownership of the liabilities of British Nuclear Fuels Limited and British Energy more than a decade ago showed that the government would be forced to shoulder the costs if Hinkley’s developers had a shortfall.

The body charged with dismantling 17 of Britain’s old nuclear power plants puts the cost of cleanup at £117bn over 100 years in its latest annual report, more than twice the cost estimated a decade ago. A large proportion of the cost is due to the complexity of Sellafield.

The business department also admitted that large scale solar power and onshore windfarms could produce electricity for less than the price agreed for Hinkley, as the National Audit Office said in the summer.

But officials suggested there would be additional costs to the renewable alternatives. “There would be significant upgrades to the grid required (such as connection and planning costs) as well as increased costs to keep the system in balance,” said the ‘Value for money assessment’.

Greenpeace UK executive director, John Sauven, said: “We now have it straight from the horse’s mouth. Increasingly cheaper renewable energy sources do indeed offer better value for money to British bill-payers than Hinkley.

“The government tries to obfuscate the advantages of solar and wind by throwing in extra costs for grid upgrades and balancing the energy system. But there’s no evidence anywhere in the documents to back up their assumptions.”

http://www.theguardian.com/environment/2016/sep/30/hinkley-point-c-developers-face-72bn-cleanup-bill-at-end-of-nuclear-plants-life

French company gets big Hinkley C contracts

French nuclear group Areva (AREVA.PA) said on Thursday it has won contracts worth over 5 billion euros (£4.32 billion) to provide various services at Britain’s $24 billion Hinkley Point nuclear project.

The deal to build Britain’s first new nuclear power station in decades at Hinkley Point was signed behind closed doors in London earlier on Thursday in a private ceremony.

Areva said the subcontracts include among others, a long-term fuel supply agreement, and the delivery of the two nuclear steam supply systems, from design and supply to commissioning.

The company will also provide material for the fuel fabrication, producing uranium and providing conversion and enrichment services at Hinkley Point.

http://feeds.reuters.com/~r/Reuters/UKTopNews/~3/gfU-JvCSFbA/uk-britain-nuclear-areva-contracts-idUKKCN11Z2KB

“Working with the willing” in devolution deals

The post below cites former Labour minister John Healey as saying that his government got devolution wrong but this government has got it right by “working with the willing”.

Owl finds this a chilling phrase in politics. Working with those who are willing to do what exactly?

We have never been given the story of how a bunch of businessmen and women with vested interests suddenly found themselves working together as something called the Local Enterprise Partnership. There is no back story, no minutes of meetings where they were chosen (Were they chosen? Who by? When? How?), no paper trail about it all hooked up as a package that slipped into full being.

How come very quickly Cornwall decided to go it alone when its natural partner would have been Devon? How come Somerset decided to pall up with Devon and not Avon and Bristol?

The reason for that at least for that is clear. Devon businesses in the LEP are highly invested in nuclear activities or training for nuclear jobs or building houses around the nuclear sites or servicing the site through parent companies or subsidiaries. Whilst it might have worked better for Somerset to pall up with Bristol and Avon – Somerset was definitely “working with the willing”!

With Hinkley C having French and Chinese construction and personnel, it will be interesting to see whether those two partners are willing to work with each other, let alone Somerset or more remote Devon!

We can’t see the Chinese workers bedding down at the Premier Inn at Exmouth each night or the French workers choosing Honiton over Bristol for their nights out on the town!

Labour owns up to devolution mess when last in government – Tories continue it

“Former Labour minister John Healey has said that devolution under the last Labour government was “hamstrung” by efforts to develop proposals that could apply across the whole country.

The former Treasury and local government minister was speaking at a fringe event hosted by Core Cities UK, London Councils and the Mayor of London’s office at the Labour Party conference in Liverpool.

He said the current government had got the approach right by deciding to “work with the willing”.

He stated: “We actually hamstrung ourselves in our period in government when we looked at devolution, because we felt we needed to have a blueprint that was consistent right across the country.

“But eventually it won’t work, it can’t work, in the same way in all parts. We got too hung up on institutional arrangements, geographical footprints. The case we should make needs to concentrate on what we most want to change, be determined to do it and then make the case for the devolution that helps us do us.”

Healey said that his political imperative would be to show how a Labour council and a Labour-led city makes a difference and can reach devolution deals with Whitehall “rather than try to come up with a plan that is all encompassing, which I think is part of the problem that we had for a lot of the time we were in government”.

http://www.publicfinance.co.uk/news/2016/09/labours-devolution-efforts-were-hamstrung-one-size-fits-all-approach

“Work with the willing” – willing for what we ask here in the Heart of the South West.