BBC Spotlight tonight: Cornwall – thanks to its attractive lifestyle and very fast broadband throughout the county from an EU project – is cornering the market in high-tech and software and gaming industries.
Devon – with its special, expensively – developed campuses and industrial areas and its “growth point” – is losing out.
Productivity match: Cornwall 1 – Devon 0
“Ageing workforce a “ticking time bomb” as employers deal with mental and physical frailties”
Local authorities are sitting on a “ticking time bomb” due to the ageing workforce a Mid Devon officer has said.
In a statement regarding fitness for work issued by the authority, the Council said that they were aware that as the average age of the workforce increases the physical ability to perform manual tasks can become more challenging and ultimately can contribute to higher sickness absence rates attributable to muscular-skeletal conditions. …
… Discussions over the district’s handling of the ageing population were brought up by Councillor Jenny Roach who shared her concerns.
“When you read this report it talks about the individual being fit for work and the authority making sure that a person was fit for work,” she said. “When you get to be over 60, and you’re having to do a hard job you’re not going to be as fit for work as when you’re 28/29. I know you’re talking about people having other skills but in reality what can be done for those people?
“I would prefer it if the authority was saying that this was a major issue as people are having to work longer to keep the money flowing. We should make sure as an authority to make sure that jobs are mechanised as they have done in healthcare.”
Cllr Roach added that the word lifting is no longer used in healthcare, and has been replaced by the term moving and handling and that Mid Devon District Council should look into ways of mechanising jobs to avoid heavy lifting.
She added: “I can think of nothing worse than at 68, having to go out every day in all sorts of weathers when your arthritis is killing you and life heavy boxes. It’s a really big issue, and it’s not usually an issue people of qualifications or high positions will have to worry about. It’s the people who are refuse collectors who will have to continue to do that job.”
Catherine Yandle, Mid Devon’s group manager for performance, governance and data security replied: “Actually, that’s a fallacy. I totally agree that they’re the ones who you think would be impacted more, but in general, that’s not the case. We all lose the ability to think and to react in quite the same way when we get older.
“Unfortunately, because the default retirement age finished about five years ago, we are waiting and sitting on a ticking time bomb of issues with older staff and people whose retirement ages have been lengthened so they have to work longer to get their pensions, who feel the pressure to do so, so they will feel they need to work longer.
“We can’t just look at people’s functional health in respect of their physical wellbeing. We look at cognitive health and how they assimilate information. Because of age discrimination, you can’t say to people that they should retire; there isn’t a default retirement age. If they’re not performing in the way that we want them to be that physical or mental agility, then we will have to go down the capability route with them because there is no way of us dismissing those people unless they chose to go.
“We have a solicitor here who is also a qualified HR practitioner, so we’re very fortunate that we’re able to have somebody who has that understanding. This is very difficult for us as an employer.”
Cllr Roach said she was concerned how the Government was pushing people to work beyond their late 60s, yet being told they no longer are fit to carry out tasks they used to be able to.
“It’s fundamentally wrong, and that is not unfair. I think this Council should be doing something about it,” she added.
However, Ms Yandle added: “I agree with you, I don’t think it’s fair, I don’t think it’s right, it leaves a very nasty taste in the mouth of the employer for having to do that, but that’s where we are.
“We could accept a lesser performance, but I don’t think you as councillors would be happy with that, because you want value for money, you are representing the electorate who expect people to be performing at a certain level.”
https://www.devonlive.com/news/devon-news/ageing-workforce-ticking-time-bomb-1418980
Women earn 6% MORE than men at Exeter City Council
Women earn 3.2% less than men at East Devon District Council
Women earn 17% less than men at Devon County Council
NHS Northern, Eastern and Western Clinical Commissioning Group pays women 40.7% (yes 40.7%) less than men
Look for other major employers (local and national) here:
EDDC is borrowing to fund the building of its new HQ and to fund its “Growth Point” and is also considering going into the housing construction market.
“Local authorities could face further intervention by central government if new changes to investment and treasury codes fail to dampen council borrowing levels, according to a senior Whitehall official. …
[A conference speaker said] … “said: “When last year local authorities borrowed an additional £3.8bn, that was a £3.8bn increase in net debt. “That was £3.8bn less that the chancellor had available to distribute as funding across the board at the last budget. “So, local authority borrowing does have a real world impact in the overall quantum of funding that is available to government.”
In addition, he said that concerns have been raised that councils investing in particular asset classes can drive prices up, creating a bubble.
New principles on proportionality included in the code were triggered by some smaller authorities taking on huge sums of debt relative to their size, Caller [the speaker] added.
“We had concerns that those authorities who were doing that were effectively assuming that government stood behind their risk. “That is not the statutory position, and it is not a position we want to encourage. “What the legislation says is that effectively it is council tax payers that have to make good any deficit in those assumptions, not central government. We want people to remember that.” …
Councils could face ‘additional’ intervention if borrowing rates continue
How will we know that this committee can or will double productivity in 20 years? They will tell us in 20 years time! How will we know if they are correct? Answers on a postcard …
From the press release:
“Representatives from 23 organisations across Devon and Somerset today agreed steps to drive up productivity at the first meeting of the Heart of the South West (HotSW) Joint Committee.
The inaugural meeting of the Joint Committee unanimously endorsed the Productivity Strategy that has been taking shape over the last two years and aims to double productivity over 20 years.
At the meeting in Plymouth City Council offices, the committee also voted unanimously to appoint Councillor David Fothergill, Leader of Somerset County Council, as the first Chair of the new committee and Councillor Paul Diviani, Leader of East Devon District Council, as the Vice Chair. …
… The Productivity Strategy aims to double productivity in the area over 20 years, focussing on themes including promoting business leadership, housing, connectivity, infrastructure, skills and training. It looks at growth, capitalising on the area’s distinctive assets and maximising the potential of digital technology. … [just as a large part of digital technology has gone into freefall!]
Somerset County Council is acting as the host of the HotSW Joint Committee and meeting agendas and further information including the full Productivity Strategy can be found here:
http://democracy.somerset.gov.uk/mgCommitteeDetails.aspx?ID=357
“The fair funding review will fail unless any reforms come with more money for local government, an umbrella-group has warned.
The Local Government Association said funding cuts had forced councils to divert ever-dwindling resources from other services to prop up adult social care and children’s services.
“Ultimately, the review will not be successful and lead to a sustainable outcome if it is not introduced alongside additional resources,” the LGA wrote in their response to the fair funding consultation, which ended on Monday.
“We estimate that councils face a funding gap of over £5bn by the end of the decade, on top of a £1.3bn pressure to stabilise the adult social care provider market.”
It called for 100% retention of business rates to try to plug the gap. The government confirmed in the draft local government settlement in December last year it is reducing the amount of grant it gives to councils and will allow them to keep 75% of business rates by 2020-21.
But the LGA said business rates retention and the calculation methodology for the four-year settlement had introduced “further layers of opacity” to a system already complicated by the use of 15 formulae and 120 indicators.
“It is positive that the government is attempting to reduce the number of cost drivers and formulae used in the relative needs assessment,” the LGA said. “It is important that complexity is only added where it is unavoidable and where it has a material positive impact on fairness.
“However, the right number of formulae and cost drivers must ultimately be driven by evidence or the outcome will not be seen as ‘fair’.”
The County Councils Network said any new formula arising from the review “must be capable of addressing spikes in demand for social care services”.
Its finance spokesperson Nick Rushton, leader of Leicestershire County Council, said: “This is a once in a generation opportunity to reform the system for the better.
“If we focus on the evidence and avoid introducing unnecessary complexity we may actually make something that stands the test of time. If not we will be back here sooner than we think.”
The District Councils Network said most districts would stop receiving revenue support grant by 2019-20 and were “continuing to see reductions in their core spending power for the whole period, compared to other councils who are all seeing an increase”. …”
Construction output suffered its biggest monthly drop in six years, figures for January show, confirming that the sector’s recession drags on into this year.
The Office for National Statistics reported that UK builders’ work volumes fell by 3.4 per cent in the month, the largest month-on-month decline since June 2012.
There were deep drops private commercial construction work on the previous month as well as in private housing, which will concern ministers who are trying to drive up constriction rates.
On a year-on-year basis total construction output fell by 0.5 per cent, worsening from the 0.2 per cent rate of contraction in December.
and
“The sector was feeling as flat as a pancake in February with falls in new orders for the second month in a row, and with just a marginal rise in overall activity, as ongoing political and economic uncertainty shouldered the blame,” said Duncan Brock of the Chartered Institute of Procurement & Supply.
Civil engineering activity contracted at its sharpest pace for five months, according to the latest survey.
Housebuilding was also weak again, putting it on track for its weakest three-month performance since the third quarter of 2016. …”
“Tens of thousands of children of public sector workers will be living in poverty by the end of next month, unions warned.
Parents working for the NHS, schools and councils may not be earning enough to make ends meet due to the government’s cap on public sector pay and in-work benefit cuts.
Research by the TUC found that one in seven children of public sector workers will be pushed below the poverty line by the end of March. Around 550,000 children living with a public sector worker in the family will be classed as being in poverty by the end of the current financial year, said the union organisation.
The South West has seen the biggest increase in child poverty rates among families with a public sector worker, followed by the North West and East Midlands, the study found. TUC general secretary Frances O’Grady said: ‘The Government’s pay restrictions and in-work benefit cuts are causing needless hardship. …”
Read more: http://metro.co.uk/2018/02/15/children-nhs-school-council-staff-living-poverty-7314885/
“Outsourcing giant Serco has secured a hefty discount on its deal to buy a raft of healthcare contracts from failed rival Carillion.
Serco said it would now pay £29.7m – down from the £47.7m price first agreed in December, before Carillion’s dramatic collapse into liquidation.
The move reflects the fact the contracts will have no working capital and will come with none of the usual warranties in place as a result of Carillion’s failure, according to Serco. …
… Serco’s deal will bolster its healthcare business, seeing it add a string of healthcare contracts spanning five acute hospital trusts and another 20 public sector organisations.
Just under 1,500 employees work on the contracts being acquired under the deal.
Serco’s existing health operations already generate revenue of over £350m, employ over 8,000 people, and provide services to institutions such as St Barts in the UK.
Serco employs more than 50,000 people across five sectors, including defence, justice and immigration, transport, health and citizen services.”
Northamptonshire County Council is effectively bankrupt. This is a peer review report if their financial situation last year. Some worrying similarities!
Some lessons for officers and councillors.
For example:
“4.3.8 There is a lack of sufficient challenge among officers and from members. There is a considerable amount of trust in plans that are presented without evidence that those plans have been challenged. Some Portfolio holders readily accept the information they are given without systematic and robust challenge. There is a tendency for cabinet members to trust that the relevant individual portfolio holder has challenged proposals.
4.3.9 Decisions taken by the Cabinet need greater transparency. Council members and scrutiny chairs need access to more information. There was a desire expressed from some cabinet members for greater discussion and challenge across portfolios. However, where challenge has been provided, for example from the Audit Committee, that has not been welcomed.”
*** Prosperity for all LEP Board Members perhaps? !!!
“The Heart of the South West (HotSW) Local Enterprise Partnership is looking for a new chief executive to start in the summer following the retirement of Chris Garcia, who has led one of England’s most successful LEPs for five years.
The role demands a high calibre candidate for this increasingly pivotal role in the HotSW economy, which covers Devon, Plymouth, Somerset and Torbay.
Chair of the Heart of the South West LEP, Steve Hindley CBE DL [Chairman if the Midas construction empire], said: “We’re a strong business-led partnership between the private sector, social enterprises, local authorities, universities and colleges throughout Devon and Somerset and the unitary areas of Plymouth and Torbay, making us one of the largest LEPs in the country, so we’re looking for strong leadership and talent.
“Across the HotSW area, there’s a mix of urban and rural economies, stunning natural capital, rich heritage and a tremendously exciting range of business opportunities.
“We’ve established an impressive track record with a £750m investment programme to support our mission to see better productivity and better jobs; and we’re poised to launch a new delivery plan for a step change in productivity.
“The role of LEPs is increasing as we become firmly aligned with the delivery of the government’s Industrial Strategy, our funding is secured for at least another two years, and we’ll now have regular meetings with the Prime Minister.
“I look forward to meeting some exceptional applicants for this exciting role as HotSW LEP enters the next phase in its journey towards prosperity for all.”
Applications are open until 16 February and a candidate briefing pack is available at: http://www.heartofswlep.co.uk/news”
http://heartofswlep.co.uk/news/chief-executive-lead-heart-south-west-lep-towards-prosperity/
“John McDonnell has accused the government of using cash-strapped local councils as “human shields” to absorb deep spending cuts by the Treasury.
The shadow chancellor seized on reports that Surrey – where the Runneymede and Weybridge constituency of the chancellor, Philip Hammond, is located – was facing a £100m cash crisis.
Analysis by the Bureau of Investigative Journalism identified Surrey as the council facing the largest gap between expected revenues and expenditures in the coming financial year. The average deficit at the 150 councils the bureau examined was £14.7m.
Meanwhile, a survey of senior council officials by the Local Government Information Unit thinktank found that almost 80% had no confidence in the future sustainability of council finances.
McDonnell said: “If you ever wanted to see the utter failure of this government, look no further than your local council. Many are struggling to maintain many basic services because they are being forced to pass on Tory cuts.
“There needs to be an urgent change of direction in local government funding in this country. We need to see an end to a situation whereby Tory governments are using local councils like human shields as they continue to drive ahead with their failed austerity agenda.”
McDonnell appeared at a conference in Preston alongside the shadow communities secretary, Andrew Gwynne.
Many of the councils under greatest financial pressure are in Tory-held areas, and Conservative MPs have put pressure on the government to relieve the squeeze in particular areas.
Sajid Javid, the communities secretary, announced an extra £150m this week specifically to be spent on social care in areas of greatest need, amid a growing backlash from backbenchers.
But council leaders said it would not be enough to meet rapidly increasing needs.
The LGIU’s survey of councils’ finances suggested that 94% are planning to raise council tax in the coming year to make ends meet, and 65% will be dipping into their financial reserves.
In his speech, McDonnell highlighted alternative approaches to delivering local services.
Labour believes the threat to council services, such as social care and support for children, are the latest stark illustration of the ongoing impact of austerity.
The government has promised to put social care funding on a sustainable footing; but a green paper on the issue is not due to be published until next summer.”
“A relief fund worth £300m set up by Philip Hammond, the Chancellor, to support small firms struggling under the weight of business rates rises has proved a “false hope” after failing to pass on tens of millions of pounds 300 days after its launch.
Research by Gerald Eve, the property consultancy, has found that more than £70m of the £175m allocated to councils for the year to March 2018 has yet to be passed on to local firms.
The Federation of Small Businesses said some of its members were still waiting for the essential funding.
“Our research showed that one in five firms facing business rates hikes were planning to sell, hand-on or close their business,” said Mike Cherry, the chairman. “The Chancellor’s £300m hardship fund offered a small glimmer of hope. For many, it’s proved to be false hope.” …
“More than half of the 1,900 ultra-luxury apartments built in London last year failed to sell, raising fears that the capital will be left with dozens of “posh ghost towers”.
The swanky flats, complete with private gyms, swimming pools and cinema rooms, are lying empty as hundreds of thousands of would-be first-time buyers struggle to find an affordable home.
The total number of unsold luxury new-build homes, which are rarely advertised at less than £1m, has now hit a record high of 3,000 units, as the rich overseas investors they were built for turn their backs on the UK due to Brexit uncertainty and the hike in stamp duty on second homes. …”
“… PPP is one of those financial inventions that was sold as being a win-win for both sides: the companies could be awarded lots of lucrative contracts to build stuff for the state; the government would get new infrastructure more quickly and without the financial risk, as private companies would bid for the work and the market would ensure taxpayer value.
At least, that was the theory. What actually happened was that companies kept bidding for projects, but tough competition meant the contracts came with skinnier and skinnier margins. So, if problems occurred, a contractor’s 2% profit would not just be wiped out – huge losses could be incurred too.
Sam Cullen, an analyst at investment bank Jefferies, said: “That is why construction can be such a fundamentally horrendous business. Under pressure to grow the top line and operating on wafer-thin margins, everyone bids each other to death. It’s a situation not helped when your largest customer, the government, is under huge pressure to get value for money and is more susceptible to accept the lowest bidder.”
The big question is: why do companies keep bidding, if the contracts can cause so much pain?
The answer probably lies in the structure of major PPP construction deals, because they hand the contract winner a large chunk of cash upfront.
Work on construction can then begin, while contractors like Carillion may not need to start paying sub-contractors for another 120 days.
During those four months, much of the upfront payment might be used to pay other debts within the business, meaning these deals can create situations where firms have to keep winning new contracts just to keep going.
Or, as it turns out, not keep going.”
Student Euan Trower, 16, lives near Stokeinteignhead and studies in Exeter:
“With all the political parties targeting young potential voters, I, as a 16-year-old college student, am a key target for the next election. One of the key issues right now is housing. There simply aren’t enough houses to go around. All the parties are promising to build more houses and to relax planning laws for councils in rural areas. But does it solve the problem?
Simply concreting over England’s green and pleasant lands – isn’t going to solve a national crisis. The South West is a prominent victim of these failed policies with over development dividing and destroying both rural and urban communities. In his book ‘The Death of Rural England’, Professor Alun Howkins says that, “During the last century, the countryside has changed absolutely fundamentally”. Large housing developments without the necessary infrastructure to support these extra people mean pretty villages and market towns are reduced to an urban sprawl of poorly built suburbs.
The economic arguments for these policies are that it reduces the demand for housing and that it encourages local economic growth. Both of these are false.
The demand for housing, especially in rural areas, is down to the sickening number of second homes which is killing off the local way of life. A survey in 2011 showed that there were 4000 second homes in the South Hams alone. The Influx of people coming for “a slice of country life” is driving up house prices and driving out local people. The same survey showed that in 2010, the house-wage affordability ratio for Devon was 2.52 points above the rest of England, with that gap expected to rise. Farmer’s barns, the old mill, the old bakery, the old shop, the old forge, they’ve all been converted into houses, many of them only lived in for half the year.
As for those who argue this promotes local economic growth, oh no it doesn’t. While there will be a short-term demand for skilled tradesmen, something of which we have very few, the South West is a low skill low wage economy, so where are the jobs for these new home owners to go too?
So with development even proposed for the beautiful market town of Moretonhampstead, perhaps the way to deal with this growing crisis is not to try and rapidly increase the nation’s housing stock but rather to fairly distribute the houses we already have. The government should also look to drastically reform the way we rent property while any new developments should be very carefully assessed to reduce the impact on the local area to an absolute minimum. In essence, rather than building houses, developers must build communities.
And it takes all sorts to make a community, not just the privileged few.”
http://www.devonlive.com/news/devon-news/over-development-rural-england-1106412
“The government announced last July that tolls would end on the Severn bridges by end 2018.
What happens to our Local Enterprise Partnership and Greater Exeter Growth Plans if everyone turns right at Bristol?
As a current Guardian article says:
… “The abolition of the tolls on the Severn bridges will create a “once in a lifetime” chance to build an economic region to rival the northern powerhouse and challenge the south-east of England, politicians, business leaders and academics have said.
Making the crossings between the west of England and south Wales free could lead to a “western powerhouse” stretching from Bath and Bristol to Swansea, boosting prosperity and jobs, advocates believe.
A summit at the Celtic Manor resort, on the Welsh side of the border, yesterday discussed how regions on either side of the bridges could benefit from government plans to abolish the tolls by the end of the year……..”
The concept of a “Severnside” region has been around for decades. Welsh devolution is seen as one reason why the concept lost traction but Brexit has led to a reassessment.
Dylan Jones-Evans, the assistant pro-vice chancellor at the University of South Wales, said abolishing the tolls was a once in a lifetime opportunity. “Many businesses on both sides of the bridges felt [the tolls] formed a major psychological and financial barrier. Wales was seen as being separate from the rest of the UK economy.”
But he warned: “The current transport provision for road and rail between south Wales and the south west of England is not fit for purpose. … “
Owl says: Translation of headline – “A few rich businesspeople with vested interests and a few power hungry but rather uninformed councillors with their eye on the future panic because they risk having their fingers extracted from lucrative pies and will make unsustainable promises if that’s what it takes to keep them in”.
And as for that “productivity strategy”:
https://eastdevonwatch.org/2017/12/04/dcc-corporate-infrastructure-and-regulatory-services-scrutiny-committee-savages-hotsw-growth-strategy/
“Moves to shift more power and cash to the Westcountry took an important step forward this week when key players met civil servants to thrash out the way forward. The Westcountry has been pushing to join former Chancellor George Osborne’s “devolution revolution”, which would take powers away from London and put it into the hands of local people.
The first meeting in Whitehall last week included discussions on transport infrastructure, broadband access, home building and support for business growth.
The bid for devolution is led by the Heart of the South West local enterprise partnership, which includes leaders from business and councils across Somerset and Devon, including Plymouth, Torbay and Exeter.
A delegation has now met representatives from the Department for Business, Energy and Industrial Strategy to discuss devolution proposals.
The group claims that additional decision making and budget powers could have huge benefits for the Westcountry, including higher productivity, better paid jobs, improved transport links and more affordable homes.
Devon and Somerset are lagging behind the rest of the country. By November 2016, 11 regions had already reached devolution agreements.
Heart of the South West submitted its first proposal in February 2016, but has yet to reach a concrete deal.
An earlier stumbling block, the election of a regional mayor, has already been removed by the Government.
The issue had threatened to split the partnership.
But now civil servants have agreed to hold regular meetings on the issue, according to the region’s leaders involved in the bid.
Plymouth Council leader Ian Bowyer said: “Creating a strong economy, which means jobs, stability and strong prospects for our young people as well as families is vital for the future of Plymouth and the region as a whole. We are already working together across so many areas to deliver growth.
“This was a really positive meeting and sets the scene for closer working that will benefit all our residents.”
A total of 23 partnership organisations from across the region, which also includes clinical commissioning groups and national parks, are involved in the plans.
A joint committee for the Heart of the South West economic region is now being set up to move the discussions forward.
Cllr David Fothergill, chair of the Heart of the South West shadow joint committee, said of last week’s meeting: “We explained our vision for the area and how to help it become more prosperous.
“We discussed skills, transport infrastructure, broadband access, ways to provide more homes where they are needed and support for businesses to grow, innovate and export more. We also talked about the specific challenges faced by rural communities.”
The group said its first meeting will be in March, where it will agree a productivity strategy.”
http://www.devonlive.com/news/devon-news/key-figures-devon-somerset-devolution-1106519
“The development charity Oxfam has called for action to tackle the growing gap between rich and poor as it launched a new report showing that 42 people hold as much wealth as the 3.7 billion who make up the poorest half of the world’s population.
In a report published on Monday to coincide with the gathering of some of the world’s richest people at the World Economic Forum in Davos, Oxfam said billionaires had been created at a record rate of one every two days over the past 12 months, at a time when the bottom 50% of the world’s population had seen no increase in wealth. It added that 82% of the global wealth generated in 2017 went to the most wealthy 1%.
The charity said it was “unacceptable and unsustainable” for a tiny minority to accumulate so much wealth while hundreds of millions of people struggled on poverty pay. It called on world leaders to turn rhetoric about inequality into policies to tackle tax evasion and boost the pay of workers. …”
Recent comment on “pay to pee” article (below):
“Notice the contradiction here: one councillor says the idea is not being looked at, another group of councillors say town and … [quote from original article]
Might I suggest that there is fake news (or misdirection).
Instead of concentrating on the big savings – the biggest costs/budgets under management, we are being misdirected to something we actually understand (don’t forget the seaside towns are over endowed with the elderly, whose needs include lavatories) so that we can gain a small ‘win’ by demanding the facilities, so that we forget the elephants in the room. And there are several of them.
A gallery that only Councillor’s want.
A move of headquarters that only Councillors want.
A drastic reduction in healthcare services, that only Councillors want.
Seafront developments that only Councillors want.
William of Occam would say I have over-made the point.
Do you suppose there is a picture developing here?
I could add the absolutely fantastic budget demand coming from a Police body that has a management cost out of all proportion to its actual size. You could make significant savings by firing the bosses and not lose any quality of service?
And what about getting rid of the LLP [LEP] which, in my view, has achieved precisely nothing since it was created (except increase the salaries of the leaders although they have yet to achieve any results). That would make some tidy savings.
Maybe we can afford a health service after all!”
East Devon Watch 