Council to close its property company

A failing development company set up by Mid Devon District Council is expected to be wound up after racking up a debt of more than £21 million.

Alison Stephenson, local democracy reporter www.radioexe.co.uk

Members of the Liberal Democrat council’s cabinet voted unanimously to recommend the full council agrees that 3Rivers Developments Ltd should stop trading. It says forming the business in 2017 was “a poor decision”.

 Sold down the river?

Councillors want a “soft closure” of the company rather than calling in administrators, as it offers a better financial return. Two of the company’s projects – St George’s Court in Tiverton and Haddon Heights, Bampton – will be completed in the next six months, which should go some way to save the council’s reputation, they said.

3 Rivers Developments was set up to construct “high quality” local homes while generating a profit for the council, but it was impacted by the pandemic and a deteriorating trading position due to a lack of sales at St George’s Court.

Councillors heard that with no projects in the pipeline, the company is facing a challenging future with rising interest rates and uncertainty in the housing market.

The council had loaned the company more than £21 million and an annual sales turnover of around £3-3.5 million is needed just to cover overheads. In its 2021/22 and 2022/23 accounts, the council made provision for potential company losses of around £5.3 million and it is likely further write offs would need to be made.

Councillors were asked to make an urgent decision following a report on the company by accountants Francis Clark, which was considered in a session which the press and public weren’t allowed to observe. The report was put togther after councillors rejected three variations of a business plan.

Members of the public who attended the cabinet meeting heard concerns from former independent council leader Barry Warren who questioned whether it was right that deputy chief executive of the council and chief financial officer Andrew Jarrett should also be founding directors of 3Rivers.

Cabinet member for finance Cllr James Buczkowski (Lib Dem, Cullompton St Andrews) said it was not unusual for a deputy CEO to be in that position and as head of finance he would expect him to be involved in the discussions around the finance of the company. The decision to set up the company was made by councillors not officers, he said.

“It is clear that poor decisions have been made by councillors in the past, particularly the previous administration, likely due to a commitment bias to a failing and unviable project,” he said. “These poor decisions and sometimes indecisions have resulted in the most serious situation for the council with significant financial implications.”

The company’s property and assets would be sold off over a ”sensible short term period.” A thorough analysis of all the options to close the company were made to maximise the return for the council but “a risk free scenario” could not be guaranteed.

Cllr Rachel Gilmour (Lib Dem, Clare and Shutton) said she is “delighted and relieved” that experts had become involved and asked for a “stringent survey” of the properties to be done by someone independent of the council.

Deputy council leader Cllr Jane Locke (Lib Dem, Canonsleigh) added: “If I were coming here to buy a property and I got reports of the discussions we are having tonight I might be wondering about investing many hundreds of thousands of pounds into a property being built by 3Rivers Development Ltd.

“I hope in order to maximise the income from these properties this council will do what it can to reassure any potential purchasers that they are making a sound investment, unlike this council did, as I would hate to see us discount properties massively just to see them get sold and that all guarantees from buying a brand new property will be honoured in the future.”

The full council will make the final decision on winding up the company on Wednesday 6 September.
 

Plymouth’s budget forecast for £7.5 million overspend

Labour say numbers were inherited from Tories

Plymouth City Council denies it has a “black hole in the budget,” despite it  facing a forecast overspend of £7.5 million.

Alison Stephenson, local democracy reporter www.radioexe.co.uk

The Labour council says it is working hard to get its budget, inherited from the previous Conservative administration, in check and aims to balance the books by the end of the financial year.

Presenting a report for April to June 2023 to cabinet members, Cllr Mark Lowry, who is responsible for finance, said the council is facing pressures from children’s services (£2.8 million) notably home-to-school transport and high-cost children’s placements, people’s care packages (£1.2 million) and community connections dealing with homelessness (£2.4 million).

In addition there are inherited services costs of £1.5 million and the expense of three by-elections which were not budgeted to the tune of £80,000.

The council has enlisted the help of David Northey as head of finance, who has postponed his retirement to help it sort out its finances over the next few months.

“We still have nine months to go,” said Cllr Lowry. “This is not a black hole in the budget, it is forecasting of what would happen if the world stopped revolving today and that’s where we would be.  But obviously there is still a lot of work to be done and as is the requirement of this council we have to provide a balanced budget by the end of the year, which I am sure we will achieve.”

He said homelessness is a considerable increase in cost, but it is a national issue. He said there would be reviews to understand exactly what is happening in Plymouth and the problems to be addressed.

The cabinet supported a capital budget of £556 million for the next five years, which will now go to the full council for final approval.

New projects coming forward totalling £7.5 million include:

  • Theatre Royal Car park solar scheme (£199,000)
  • improvements to Central Park (£60,000)
  • Derriford Community Park – phase 1 biodiversity (£107,000)
  • Plymouth and South Devon community forest (£25,000)
  • Derriford District Centre (£1.03 million)
  • highways projects street furniture replacements, tennis improvements £3.71 million)
  • Local Authority Housing Fund (£1.5 million) which will provide accommodation for refugees and temporary accommodation for people experiencing homelessness.
     

UK banks will have to ensure access to cash within three miles, ministers say

Why has it taken so long to recognise the problem? Is it now too late?

Ah! Nigel Farage hands in a petition to No 10 – Owl

High street banks will have to ensure customers can find access to cash within three miles of their local communities, and those falling below the minimum service level will face a fine, the government has confirmed.

Kalyeena Makortoff www.theguardian.com 

After the closure of thousands of local branches in recent years, and the switch to digital payment methods, ministers are looking to banks to help protect vulnerable groups and elderly customers by maintaining present levels of cash access across the UK.

The “vast majority” of people are able to withdraw money within one mile, if they live in cities, and three miles if they live in rural areas, the Treasury said. That includes cash withdrawals through cash machines, bank branches and shops offering free cashback.

The government said the Financial Conduct Authority (FCA) would make sure banks and building societies were “keeping up to these standards – and have the power to fine them if they do not”.

On Thursday, the former Ukip leader Nigel Farage went to Downing Street to hand in a petition that called on the government to crack down on businesses that have increasingly instituted card-only policies and refused to accept cash since the Covid crisis.

It marks Farage’s latest campaign against banks and payment companies, after Coutts threatened to close his accounts this year. The row snowballed in July after he obtained documents that showed his political views were part of the decision to shut his accounts.

The scandal resulted in the resignation of Alison Rose as chief executive of the bank’s owner, NatWest Group. It also led to the ousting of Peter Flavel as the chief executive of Coutts. Farage said the bank had since offered to keep his accounts open.

Thursday’s announcement on access to cash builds on the wide-ranging Financial Services and Markets Act 2000, which gave consumers a legal right to access cash and handed powers to enforce those rules to the FCA.

Andrew Griffiths, the economic secretary to the Treasury and “City minister”, said: “People shouldn’t have to trek for hours to withdraw a tenner to put in someone’s birthday card – nor should businesses have to travel large distances to deposit cash takings.

“These are measures which benefit everyone who uses cash but particularly those living in rural areas, the elderly and those with disabilities.”

The Treasury hinted there may be some concessions to the three-mile guarantee, saying in a press release that the FCA should “maintain this level of coverage, while recognising that needs may differ by location and change over time”.

And while personal banking customers will be guaranteed fee-free access, it is highly probable that businesses in some areas may still face fees for withdrawals and deposits.

The FCA is expected to launch its consultation this autumn, meaning the laws are unlikely to come into force until summer 2024.

Campaigners have long warned that the UK’s dwindling cash facilities – after swathes of ATM and bank closures – are putting elderly and vulnerable people who struggle to maintain bank accounts online at risk.

Access to cash has also become more important during banking outages, which can block card transactions and online bank transfers. About 5.4 million adults use and rely on cash daily, according to Treasury statistics.

Natalie Ceeney, chair of the independent Access to Cash Review, said: “Over the past decade, we’ve been sleepwalking into a cashless society. But digital payments don’t work for everyone.

“Cash remains vital for millions of people and businesses, many of whom are struggling as bank branches close and it becomes harder to access and deposit cash.”

She said the cash access distance guidelines would help “support the specific needs of different communities”.

She added: “That doesn’t mean that nothing will change, but it does mean that where services plan to close, there need to be appropriate alternatives in place before they do so. Positively, the banking industry is ahead of the curve in helping to create new banking hubs and deposit services in communities.”

The banking lobby group UK Finance said: “We support the work the government and FCA are doing here and look forward to reviewing the government’s full policy statement when published.”

The Tories are handing out fake newspapers to win over voters

Is this what Simon Jupp was handing out in Cullompton? – Owl

The Conservatives have been accused of using “deceptive tactics” after they distributed pamphlets disguised as local newspapers to local residents.

Jack Peat www.thelondoneconomic.com 

A number of people have taken to social media to post pictures of the publications, with one sent from Ruth Edwards’s constituency in Nottinghamshire and another from Andrew Griffith’s patch in the South Downs.

Similar publications were picked up by voters ahead of the by-elections in July, with residents from Selby and Ainsty, Somerton and Frome and Uxbridge and South Ruislip all being canvassed.

Link here  (detailed images below)

Ahead of the 2019 general election, the Conservatives deployed a number of mischievous tricks to win voters over.

They created a fake Labour manifesto website and diverted Google users looking for the real one to it and they rebranded one of the party’s official Twitter accounts to resemble a fact-checking service during a live TV debate.

Talk about pulling the wool over people’s eyes!

Council tax: Some Britons now paying 10 per cent of income in rates

West Devon tops the list!

(Those in Devon and Nottingham pay five times as much in relation to earnings than some Londoners do.)

Some Britons are now paying 10 per cent of their income on council tax – but it’s not in the areas you might think.

Maryam Zakir-Hussain www.independent.co.uk

An analysis by campaign group, The TaxPayers’ Alliance, compared council tax rates with Office for National Statistics figures on local earnings and Land Registry house price data.

It found the council tax disparity meant some UK residents had been landed with a burden five times heavier than others.

West Devon faced the highest council tax to salary ratio, with the average Band D council tax of £2,347 more than 10 per cent of the median gross pay of £21,639, the analysis found.

Nottingham came in a close second, where the average council tax bill of £2,412 is 10.84 per cent of local average earnings of £22,243, followed by Pendle in Lancashire, and Torridge in northwest Devon.

The four lowest-charging councils were all in London, relative to both house prices and median pay.

On the other end of the scale, the council tax percentage in Wandsworth is around five times lower, at 2.16 per cent with a bill of £921.

This is despite the median annual pay for the south London borough being £42,665 – twice as high as West Devon residents.

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Taxpayers are struggling with the unsustainable burden of council tax. But far from falling on those with the broadest shoulders, it appears that the most hard-pressed households are bearing the brunt of rising rates.

“The least local authorities can do is freeze council tax next year to give residents much-needed breathing space.”

Digging in: council rejects plan for allotments in green belt near Bristol

It sounds a progressive, imaginative project. A beautiful hilltop allotment site that would serve the people of Bristol keen to get out in the fresh air and grow their own fruit and veg, but who cannot find plots in their city.

Steven Morris www.theguardian.com 

However, members of a planning committee have dealt a severe blow to the scheme after people who live near the site in the well-heeled village of Abbots Leigh launched a fierce campaign against the privately run project, arguing it would blight their idyllic green belt area.

During a passionate North Somerset council planning meeting, the team behind the scheme said they simply wanted to make the joys of gardening and independent food production accessible to all.

But residents and councillors expressed concerns that it would affect wildlife such as rare bats and endangered skylarks, and said they were worried about an 80-space car park planned at the site.

The meeting on Wednesday ended with councillors rejecting the plan. Christian Samuel, one of the founders of the business behind it, Roots, accused councillors of letting down would-be allotment holders keen to get their hands on one of the 700 plots.

“I feel sorry for the people who are desperate to get out there and grow their own,” said Samuel at the conclusion of the meeting. “What has happened in there is a real shame.”

There is little doubt there is a need for more allotments. According to research from the University of Sheffield, there has been a 65% reduction of allotment land in the UK since the mid 20th-century.

There are an estimated 330,000 allotment plots in the UK, mostly council-owned. In 2021, the average wait for an allotment was two years and eight months, with a waiting list of about 100,000 people.

Roots bills itself as the UK’s first “no-dig” allotment community, meaning gardeners avoid disturbing the natural structure of the soil by turning it, instead just adding more organic material on top and letting the worms pull it in.

It says that with waiting lists for allotments stretching to more than 10 years in some parts of the country, its mission is to provide green, soulful spaces for everyone.

The business’s first two sites were in Bath. For the first, the team divided a farmer’s field into plots and provided seeds, tools and courses. As well as growing veg, allotment holders have taken part in yoga sessions and community picnics.

The Tuckers Meadows site proved hugely popular and a second, Avon Views, was launched in the city.

Bristol, 12 miles from Bath, is known for its green credentials. With many more people wanting to grow food than there are local authority allotments, it seemed to be the obvious place for another Roots project.

Roots found an 8-hectare (20-acre) site in Abbots Leigh, just outside the city boundaries, close to the Clifton suspension bridge, and planned 700 plots at Leigh Woods Meadows. Six hundred spots have already been snapped up.

But people in Abbots Leigh had concerns. A letter to the council signed by dozens of villagers complained that the allotments were not for local North Somerset people but were being marketed to Bristol residents.

“It’s a stunningly beautiful location, loved by thousands, but soon to be lost for ever if Roots’ plans go ahead unchecked,” the letter said.

The complainants characterised Roots as an “aggressively growing business” backed with venture capital, adding: “They want to do one thing and that is make money out of huge private allotment sites on greenfield agricultural land.”

The residents said people in other areas where Roots was planning to open were “looking very closely” at the North Somerset decision.

The tension became so acute that at one point the police were called when people blocked work vehicles heading into the field.

Roots accepts it is a business – but argues it is one for good, hoping to open up land to people who want to grow their own, be part of a vibrant community and learn more about the no-dig movement.

Plans have been drawn up for sites in London and Birmingham but it is looking at expanding “everywhere”.

Jenna Ho Marris, a Green councillor, told the meeting there was “a lot to like” about the concept but said Roots was a business “with a fast-moving expansion plan” and the decision in Somerset could set a precedent when other local authorities considered similar schemes.

Councillor Terry Porter, himself an allotment holder and grower of prize vegetables, said the rental price of the plots (from £9.99 to £34.99 a month) meant it would not be accessible to all.

Members of the planning and regulatory committee voted unanimously against the project over concerns about the car park.

Samuel called the decision a travesty. He said Roots would appeal but the refusal would put back the scheme by months.

“We are trying to build a growing community that shows food production and nature can coexist without large scale destruction via pesticides,” he said. “The council has let allotment holders down.”

The chair of Abbots Leigh parish council, Simon Talbot-Ponsonby, said he was relieved. “But it’s not the end. They will keep fighting. Allotments are a good thing but not at that scale.”

United Utilities fined £800,000 for taking 22bn litres of water from aquifer

United Utilities has been fined £800,000 after illegally abstracting 22bn litres of water in Lancashire, causing damage to an important aquifer that will take years to recover.

Helena Horton www.theguardian.com 

The illegal removal of water from the Fylde aquifer, which happened during a period of dry weather in 2018, is likely to have negatively affected river flows.

An aquifer is rock or sediment that holds groundwater – rain that is held below the surface of the soil and collected in empty spaces underground. Aquifers feed rivers to keep their flows at a healthy level, and are also important sources of water when reservoirs or other sources run low.

There are strict limits on the amount of water that companies can take from aquifers, as rivers can be damaged and an important emergency water source for local people is lost if they are drained. Campaigners have previously said water companies should be fixing leaks in the system and building reservoirs rather than over-abstracting water from the environment.

United Utilities was prosecuted at Warrington magistrates court and was given the fine on Tuesday after the Environment Agency found the company had taken more water than its abstraction licences allowed in the Franklaw and Broughton borehole complex.

Carol Holt, the Environment Agency area director for Lancashire, said: “While water companies are allowed to abstract water from the environment, over-abstraction, especially during times of prolonged dry weather, has damaging impacts to our environment.

“Our actions as regulator have led to today’s sentencing and we will continue to strive for a better water sector across the country to protect our precious water supplies now, and for the future. We are transforming our approach to regulation, holding the water industry to account and working with water companies such as United Utilities Water Ltd to help them improve.”

The water company said during the hearing that it had made internal improvements so that over-abstraction would not happen again, and committed to supporting a number of local Rivers Trust schemes. It has made a voluntary £3m contribution to environment initiatives.

Grant Batty, the water services director at United Utilities, said: “We apologised for the breach in water abstraction that happened five years ago in 2018. We did not exceed the amount of water we could abstract on a daily and yearly basis, but we did inadvertently breach a three-year rolling limit on the abstraction licence. As soon as we discovered this, we established additional controls to ensure it never happens again. We took action straight away, pleaded guilty and also made a £3m voluntary contribution to local environmental improvement projects.”

Last week “Small Boats”, this week “NHS”……

Turns out that the £250m for 900 NHS beds announced with a fanfare this week is not only a small step in reversing the historic loss, but is a re-announcement from January. 

“This investment is part of the NHS urgent and emergency care recovery plan, published in January 2023, which set out plans to provide over 5,000 additional permanent, fully staffed hospital beds in total, with the NHS on track to deliver this by winter. These new 900 beds are part of this commitment.” – Government Press release

The strikes continue…….

And:

Community diagnostic centres ‘cutting NHS waits’ don’t exist yet

Dozens of the government’s flagship community diagnostic centres said to be reducing record NHS waits are not even open yet, openDemocracy can reveal.

In fact, our investigation has found some of the health centres, known as CDCs, are years away from opening. We could only find evidence of 73 centres that are up and running – and some of those are in mobile units.

The Department of Health and Social Care (DHSC) this month claimed 114 centres were open across the country, saying they were helping cut NHS waiting lists by offering more tests for patients. Ministers have also touted the plans as proof that the private health sector can be used to boost capacity in the NHS.

But local NHS hospital trusts and Integrated Care Boards (ICBs) responsible for 32 of the CDCs listed as open have said they will not be operational until later this year or even next year.

And one CDC in Slough is not due to open until 2025, NHS Frimley Health Trust confirmed. Despite this, it still appears on the government’s list of operational centres.

Nearby Heatherwood Hospital, which only opened last year, is also counted on the list, but the trust said “there isn’t going to be an additional diagnostics centre there, but it does a lot of diagnostics”.

Long-time NHS campaigner John Lister told openDemocracy the findings “strip away the veneer of spin from DHSC and ministerial statements”.

“This explains why, according to government figures the 114 CDCs they claim have already come on stream are only delivering an average of just over 500 procedures each per week: many of them don’t even exist!” he added.

“The grim reality is that the delays in diagnosis and treatment flow from 13 years of under-funding of the NHS, and are worsened now by the decision to squander public money on profit-seeking private units rather than expand and upgrade NHS units.”

The ICB covering Bath and North East Somerset, Swindon and Wiltshire also confirmed to openDemocracy that there are no community diagnostics centres in the area, even though the government lists a centre open there.

Staff at the location of one CDC listed in Leeds said they had no knowledge of it, while in Blackpool, an existing health centre said plans to upgrade it had never got off the ground.

In Derbyshire, a local NHS trust said three centres, which the government list as open, are not yet operational. At Florence Nightingale Community Hospital in Derby a “new purpose-built CDC suite” is “expected to be completed by summer 2024”. A centre in Tamworth at the Sir Robert Peel Community Hospital is “expected to be completed by the end of the year”, while the CDC at Ilkeston Community Hospital is “expected to be fully operational by January 2024”.

In Coventry, the NHS announced in May that the existing City of Coventry Health Centre will be transformed into “a modern, state-of-the-art facility” opening in early 2025. In addition, the trust said it planned to open a new Endoscopy Unit at the Hospital of St Cross in Rugby later in the year. But the government has listed both of the centres as already open.

Two centres in Essex – one in Thurrock and a second in Braintree – were also announced by the NHS earlier this year, with the local trust saying they were “due to open in 2024”. They are both listed as already open by the government. Mid and South Essex NHS trust cautioned that “like many parts of the country, our challenge will be recruiting the additional staff needed for the [Thurrock] Centre so we are starting to look at staffing plans now”.

A centre in a former department store in Poole is open, but it appears to have been listed twice by the government.

A spokesperson for NHS Humber and North Yorkshire ICB confirmed two centres in York and Selby are not open until the end of the year, despite the government claiming otherwise.

And NHS Somerset told us it only has one centre in Taunton and that two centres listed by the government in West Mendip and Bridgewater were actually “health and wellbeing hubs”. While NHS Lancashire and South Cumbria ICB confirmed that two centres in Barrow and Morecambe listed as open by the government had in fact “no confirmed date” for their opening.

openDemocracy also found announcements about new centres opening in Cambridgeshire, Ealing, Greater Manchester, Kent, Cornwall and the Isle of Wight in autumn and in 2024. Again, these are all listed by the government as already being open.

A further nine CDCs in Barking, Wisbech, Corby, South Warwickshire, Gateshead, Bolton, Andover and Somerset are still in construction but their trusts said they have opened temporary mobile units in the meantime.

openDemocracy could not establish whether three of the 114 centres are open because no information exists about them online and their trusts did not reply to our requests for comment.

And it is not clear whether six of the 114 centres even exist because both the DHSC and NHS England refused to provide openDemocracy with the full list. A list that was published by the government in June only lists 108 CDCs.

The latter said the list was for operational purposes only and that we should use Google to identify the centres that had not been revealed.

Last year, an openDemocracy investigation could only find evidence that 17 of the 69 centres the government said were running were actually open.

The development of CDCs was a key recommendation of a review of NHS diagnostics capacity published in 2020.

Mike Richards who carried out the review said the facilities should be “located away from acute hospitals, in easily accessible locations, including town and city centres”.

But several of the centres appear to be in existing hospitals, including one in West Berkshire which admitted the funding was used to replace its “ageing machines” rather than open a new community location.

In July, a damning report by the public spending watchdog found the government was not going to hit Boris Johnson’s promise of building 40 new hospitals by 2030.

Days later, Rishi Sunak doubled down on the claim, saying: “Not only are we going to deliver on our manifesto commitment to build 40 new hospitals across the country by 2030, we are not stopping there; we are also delivering 100 hospital upgrades across the country, and crucially more than 100 new community diagnostic centres to speed up treatment for people.”

A Department of Health and Social Care spokesperson said: “A total of 114 centres across the country have helped to deliver over four million additional tests, checks and scans since July 2021 – and we’re expanding current capacity by delivering up to 160 centres by spring 2025.

“The majority of these sites are permanent, and alongside these we’ve opened a number of temporary sites while construction takes place to accelerate capacity and ensure patients receive the diagnosis they need quicker.”

Another Red Card as Simon Jupp blatantly campaigns in Cullompton

Simon Jupp is paid from the public purse to be Member of Parliament for East Devon.

Cullompton is not in this constituency.

So what is he doing with political campaigning material in his hand in Cullompton, and who is paying for it?

Why are Exmouth eating places getting the cold shoulder?

Exmothians, are you getting full representation from your MP? – Owl

Confidential files found at derelict Exeter police station

An investigation has been launched after people gained entry to an abandoned police station and found and filmed confidential coroner’s files.

“Blowing in the wind” – Owl

www.bbc.co.uk

The highly confidential documents included medical details and photographs of a number of people who died in an accident.

Footage of people inside the old Heavitree Road Police Station in Exeter has been posted on the internet.

Police said security measures had been strengthened at the site.

Devon and Cornwall Police said officers arrested a man in his 50s, from the Wiltshire area, on Thursday on suspicion of burglary, abstracting electricity, improper use of public electronic communications and unlawful obtaining and disclosure of personal data.

He has been released on police bail while inquiries continue.

The police station has been closed since April 2020 and the adjoining Exeter Magistrate’s Court is also derelict.

Due to the content of the videos, Devon and Cornwall Police has made a referral to the Information Commissioner’s Office and said it would fully support its inquiries.

The force said: “The Office of the Police and Crime Commissioner has taken action to re-secure the former Heavitree Road Police Station site and strengthen security measures.”

Boss of water company behind major beach sewage leak handed 65% bonus boost

The boss of a company behind a major sewage leak at a Yorkshire beach has been handed a 65 per cent bonus increase in a move that has sparked outrage on social media.

Jack Peat www.thelondoneconomic.com 

Northumbrian Water has come under fire after sewage from its pipes was discharged onto Saltburn Beach, a Blue Flag spot that attracts hundreds of visitors in the summer.

The company blamed heavy rainfall for flooding its pipes, but it remains one of the six worst water companies in the UK according to the regulator, Ofwat.

Despite its poor environmental performance, Northumbrian Water chief Heidi Mottram pocketed a £215,000 bonus, up from £130,000 the year prior, accounts show.

The jump in Ms Mottram’s bonus took her total compensation last year to £781,000.

Northumbrian also paid out £159 million in shareholder dividends during 2022 despite posting a pre-tax loss of £50 million for the year, accounts first reported by the Sunday Times show.

The company, which supplies water and sewerage services to more than 4 million people in the north-east of England, Suffolk and Essex, met or exceeded just five of 12 performance criteria set by the regulator.

It failed to meet targets on water quality, stopping leaks and preventing sewer overflows running into people’s homes, among other issues.

Somerset council forced to close parks, allotments and tennis courts after insurance blunder

Somerset council forced to close parks, allotments and tennis courts after insurance blunder

The seafront tennis courts have been shut and walkers told to stay away from a popular park. Allotment holders have been barred from their plots and classes at a community centre cancelled.

Steven Morris www.theguardian.com 

At what should be its busiest time of the year, the Somerset seaside resort of Clevedon has been forced to close down many of its amenities after its town council lost its insurance.

Notices were posted on facilities run by the town council declaring: “Access is strictly forbidden” and explaining the council did not have any cover for damage or injury sustained at its sites.

“Pretty much everything has ground to a halt,” said the town council chairman, Trevor Morgan. “It’s hit the council for six. We’re in uncharted waters. We have had our insurances revoked, which has meant we are unable to operate on a day-to-day basis. We have lost our public liability insurance, employers’ liability insurance and fidelity insurance. It’s created a really difficult situation and we’re stuck.

“There’s very few insurance companies in the UK that will insure lower tier local authorities. We haven’t got many companies we can go to. We’re finding it challenging at the moment.”

Morgan said he could not reveal why the insurance policies had been revoked. “We’ve been told we can’t make that public at this stage. I’m not being difficult. I can say it’s not anything to do with the actions of our staff.”

As well as amenities being closed, the council’s offices are shut and its four staff members are on indefinite paid leave. Outsider contractors and suppliers are being paid. But lots of fun stuff has been halted.

The seafront tennis courts are closed as is Herbert Gardens, an area of greenery donated to the town in 1865. Six sets of allotments have been shut, meaning lovingly tended fruit and veg may wither in the warm spell. The Barn, which is hired out for activities such as dance and exercise classes, has been closed, apart from a children’s centre area.

It follows a miserable year for the town, famed for its wonderful pier (which remains open).

In May the council announced that it had not been able to agree a committee structure, meaning that meetings were being halted and decisions put on hold.

There has also been a bitter row over a road scheme featuring a bright pathway nicknamed the “yellow brick road” that critics said defaced the town’s Victorian seafront.

Morgan accepted that Clevedon’s reputation had taken a dent. “We’ve had a few turbulent months,” he said. “We’re getting too much attention for all the wrong reasons.”

Thanks to the help of North Somerset council, toilets and a skateboard park have remained open.

But Hannah Young, a North Somerset and Clevedon town councillor, said she was very sad at what was happening.

“I have been working hard with council staff, some other councillors and North Somerset council to try to avoid this and to find a solution.

“I joined the council to protect and improve our community facilities and services. Town councils in other local towns seem to do this really well. I hope now that all councillors will put the interests of the community above their own to sort this out quickly. Clevedon deserves better.”

Stuart Bannerman, the head coach of North Somerset Tennis Academy, who runs classes and camps on the council courts, said: “A lot of people are affected by this – it’s my busiest time of year. I coach some players who have been training for next week’s Avon championships. They have been affected. I don’t know how long this will go on for. It’s embarrassing.”

UK wage growth hits 22-year record. Good news or Bad news? 

All depends on whether you are a public or private sector worker.

And which spreadsheet the Tories are singing from……

Yesterday Rishi Sunak declared that there is “light at the end of the tunnel” as new figures showed that British workers benefited from the fastest rise in basic pay since 2001 in the second quarter of the year. Official data shows that average weekly pay, excluding bonuses, rose by 7.8 per cent in the three months to June, on a par with inflation (8.2% for private sector, 6.2% for public sector). He added: people would soon start to see the benefits with wages growing faster than prices.

Yet throughout the lengthy industrial disputes with teachers, NHS workers and other public sector employees, ministers have repeatedly warned that meeting their demands could exacerbate the UK’s inflation problem.

Expectations are that inflation will fall by a smidgeon but then rise again in the autumn prompting fears over more interest rate rises.

Funding of public services in England skewed against poor areas, says IFS

“Funding systems for public services are trying to balance a range of different aims. But if one of the aims is for people to be able to access consistent public services across the country, then the current systems are not fit for purpose.” – Kate Ogden, a senior research economist at the IFS

Larry Elliott www.theguardian.com 

The government’s levelling up plans for England are being hampered by a funding system that is “not fit for purpose” and deprives the poorest areas of the financial support to match their needs, a leading thinktank has said.

The Institute for Fiscal Studies said that the method for allocating money to pay for public services is out of date, based on inadequate data and skewed in favour of the better-off south-east.

Calling for urgent reform, the thinktank said the funding system was doing a “poor job” in ensuring money was being spent in the parts of England where it was most needed.

The IFS said the most deprived 20% of areas were getting a smaller share of local government and police funding than they were estimated to need, while the least deprived 20% were receiving a bigger portion than their needs required.

Boris Johnson launched a white paper on the levelling up policy in early 2022. Last summer, Rishi Sunak admitted taking money from deprived urban areas in order to give it to other parts of the country.

The IFS said that, in 2022-23, day-to-day spending on the NHS, local government, schools, police and public health in England amounted to more than £245bn, the equivalent of £4,310 per person, but there were “substantial differences” between the share of funding that areas receive and the share they would receive if funding was allocated in line with differing levels of need.

Kate Ogden, a senior research economist at the IFS, said: “Funding systems for public services are trying to balance a range of different aims. But if one of the aims is for people to be able to access consistent public services across the country, then the current systems are not fit for purpose.

“Differences in levels of funding for local government, police and public health services across England do not reflect today’s patterns of need as they are based on data that are now years out of date.”

Ogden said that it would take “several years at least” to address the issue but urged the government to set out a timeframe for reforms if it is serious about making funding systems fit for the future and aligning funding for public services with its goals for “levelling up”.

The IFS said the differences in geographical spending were especially stark for local government, after repeated delays to reform the funding system. The most deprived 20% of areas received 9% less than their estimated needs while the least deprived 20% received 15% more.

Wokingham in Berkshire received 45% more local government funding last year than it would have done had money been allocated in proportion to need, while Hounslow in west London received 31% less. This was only partly explained by them setting different council tax levels, the IFS said.

Even if all areas set the same council tax rates, the thinktank said the south-east would still receive a share of funding that was 9% higher than its share of estimated spending needs, and the north-east 5% lower. This meant inconsistent funding across England for services such as social care, housing, transport, leisure centres and libraries.

NHS funding was better targeted, the IFS said, with two-thirds of areas receiving a share of funding within 5% of their share of estimated needs. This reflected the fact that NHS spending was based on relatively up-to-date assessments of what was required in various parts of the country.

A growing numbers of councils have warned that they are running out of funds, leading to tough choices over cuts to local services. Councils including Kirklees in West Yorkshire and Hastings in East Sussex on the south coast have recently joined the list of local authorities sounding the alarm over their finances.

The IFS research showed that the vast majority of areas received a lower share of funding than their share of estimated spending needs for some services, and a higher share of funding for some other services. But a small number of areas received a markedly lower share of funding than their share of spending needs across a range of services. Dudley in the West Midlands received £127 per capita less for the NHS, £122 less for local government and £47 less for police services than if the nationally-available funding were allocated in line with estimated relative spending needs.

A Department for Levelling Up, Housing and Communities spokesperson said: “Levelling up is a long-term programme of reform that sits at the heart of our ambition as a government. After listening to feedback from local government, we will work with the sector in the next parliament to take stock of the challenges and opportunities they face before consulting on any potential funding reform.

“Through the 2023/24 local government finance settlement, the most relatively deprived areas of England will receive 17% more per household in available resource than the least deprived areas.”

“Carry-On up the Channel” push back from Portland mayor

“Buck stops with Braverman” over barge failings says Portland mayor

The Home Office should accept responsibility for failing to immediately remove asylum seekers from a giant barge after the detection of a dangerous bacteria, the mayor of Portland has said.

Rajeev Syal www.theguardian.com 

Carralyn Parkes said “the buck stops with Suella [Braverman]” after Whitehall briefings over the weekend claimed that contractors on the Bibby Stockholm were to blame for delays as it took three days to inform ministers about the outbreak of legionella.

The government had claimed that the use of barges would cut housing bills for asylum seekers, but was forced to remove all 39 onboard on Friday.

Over the weekend, the Home Office was involved in a “blame game” over the response. Briefings have claimed that the local council told two contractors about the outbreak on Monday, but ministers were not informed until late on Thursday.

Parkes said that the public expects politicians and the government to take responsibility for their decisions. “The Home Office moved people on to the barge and it is the Home Office that should take full responsibility for it,” she said.

“The buck stops with the Home Office and Suella Braverman. The department may not have had sight of the appropriate test results but it was up to the department to make sure that they were informed and removed asylum seekers off the barge as soon as they discovered there was a dangerous bacteria onboard.”

Dorset council’s environmental health officers conducted a test for the bacteria, which thrives in stagnant water, on 25 July. On 7 August, as the first asylum seekers were taken on to the barge, the Home Office’s contractors, CTM and Landry and Kling, were informed that the tests showed significant evidence of legionella, the council said.

The council insists that it told a Home Office official about the outbreak in a meeting on 8 August – a claim that is neither confirmed nor denied by anyone in government. The government, however, has said that Home Office ministers were not told about the outbreak until the night of 10 August, and the asylum seekers were removed the following day.

A former head of the body that oversaw tests for bacteria in Portland harbour said the Home Office “has serious questions to answer” and must take responsibility for any failings of its contractors.

Paul Kimber, chair of Weymouth Port Health Authority for 10 years until 2019, said: “It is not unusual to have a water fail on a vessel but it is unusual to ignore the test. The people on board – both the refugees and the workers onboard – should have been alerted straight away.”

A document leaked to the Telegraph indicates that there were plans for 1,000 people to move to Portland – a move which would have ensured that the scheme was value for money. Written in March by a civil servant, it says: ‘We are broadly content that all tests are met as long as Portland capacity is 1,000 to ensure [value for money].”

Until now, the Home Office has said that about 500 asylum seekers will be sent to the port, a decision which has sparked protests. The Home Office declined to comment on a leaked document.

Questions have been asked about whether the government contract to place asylum seekers on the barge should have been signed until a legionnaire’s report had been completed.

The BBC has tweeted an extract from the procurement rules that state a legionnaire’s report is one of the requirements for government contracting venues, along with other safety measures including an evacuation policy and a fire risk assessment. However, Home Office sources said that the Bibby Stockholm contract was a modified rather than a standard contract, which would be published in due course.

In a parliamentary answer to a question by Conservative MP for West Dorset Chris Loder immigration minister Robert Jenrick said on 24 July “no individuals will be placed on the vessel unless it is safe to do so and all the legal and regulatory requirements are met”.

But even after the Home Office was informed about legionella they continued to provide the same written assurances. In a letter to the organisation Migrants Rights Network dated 10 August, a Home Office official wrote in response to concerns about the barge: “The Bibby Stockholm has also been subject to Lloyds Register quality assurance inspection and certification and regulatory inspection by the UK Maritime and Coastguard Agency in order to fulfil its permitted purpose. I hope my response addresses your concerns.”

Peter English, a retired consultant in communicable disease control also raised concerns about the high risks of accommodating asylum seekers on the barge even if the water pipes are thoroughly flushed.

It now remains unclear when the asylum seekers will return to the barge, with No 10 refusing to give a timeline as officials await the result of further tests.

Downing Street on Monday insisted that the prime minister retained confidence in Braverman.

Housing crisis as rents soar to a whopping £1,499 a month

Locals have spoken of being ‘priced out’ of Frome by Londoners.

A housing crisis has been declared in Frome after soaring rental costs have priced locals out of their home town. From Town Council say the average cost of a rental property have risen to a whopping £1,499 a month – approximately 50 percent of the average local salary.

Shannon Brown www.somersetlive.co.uk

Cllr Polly Lamb, who put forward the emergency declaration, says locals are being driven out further by Frome being named as one of Britain’s nicest towns. She blames an influx of visitors and second-home owners from London to community – known for its vibrant local market.

Cllr Lamb told the BBC: “Rents have skyrocketed and that is pushing out local people who have been here all their lives.”

Locals have spoken of being ‘priced out’ of Frome by Londoners – some who offer hundreds of pounds extra per month in rent and payment in advance to secure a place in the market town. Sophie Mullins, 36, owner of zero-waste refills shop, said: “I sold my house so that I could open my own independent business in Frome, therefore I was looking to rent. I managed to find a property and I was in there for about two years.

“We ended up getting very difficult neighbours and I was pregnant, so we were looking to move. We were looking for a rental for about four months with no luck. We had dogs too, so it was extremely difficult to find a landlord that would take them as well.

“We only managed to find a property because our friends had neighbours who were moving out and passed our contact details directly onto the landlord.

”That was the only way we could find somewhere that wasn’t crazy expensive or had already gone by the time we’d rung up to book a viewing.

“There was one instance where my partner went to view a property and we were deliberating over it, he rang up to speak to the estate agent about it – and they told him that someone moving to the area from London had bid more, offering £300 more per month and were willing to pay a year up front. There was just no way we could afford that.”

Lianna Denwood, 23, shop assistant, told of how she and her partner have moved back to their parents’ homes because they could not afford rent whilst saving to buy a house. She said: “I moved out of Bristol after finishing uni and went to work in London.

”When I finished that job I came home, but there was no point in going and renting somewhere as I wouldn’t be able to set myself up and get into the housing market so I decided to move home. My partner, who was also working in London, decided to move home too because his rent skyrocketed by a grand there.

”We’re both living in our separate households and we wanted to move out as soon as possible, but renting isn’t a possibility because if we want to buy in the future, our deposit money, our savings, everything, would be going on the rent.”

She continued: “When you’re not earning enough, or earning a lot but only enough to cover your living expenses, you’re never going to get to a point where you can own your own property.”

An anonymous local resident, aged 41, said: “You can’t find anywhere that is affordable. Anywhere with an extra bedroom, which is what we need, is just completely out of our price range. We are currently renting a two bed and we need a three bed.

“The speed of which properties get let, when occasionally there are homes we think we could push ourselves to afford, we go to book a viewing and it’s already gone.

”The speed in which they get snapped up is ridiculous. There’s a handful of properties available in a price range we may be able to stretch to.

”Everything else is up and above [what we can afford], we work hard to pay for what we get at the moment. We’re just going to have to wait it out in our tiny house and hope things change.”

Local property developer Connor Raudsepp, 26, recently purchased a rundown one-bed flat in Frome with a business partner – and hopes to put it on the rental market once complete. He said: “We’re not going to skip over that there’s profit in property development, the main reason I’m in it is for profit.

“However, this place has been empty and is going to serve a purpose in the future – putting a roof over somebody’s head. There are a lot of properties that are empty that could be turned into homes, which would increase supply on the market and ease rental costs. We’re probably going to be all in for about £120,000 and it’ll be rented out at market value.

”I think that’s fair, it’s the only thing you can do – because of rising rates and stuff you can’t do it for any cheaper because you’re not going to make any money and all of this effort would be pointless. We’re not taking this money and then running off to The Bahamas, it’s going to be invested in another development somewhere else – another place being brought back to the market.”

A town has officially declared a housing crisis as rental rates soar out of the reach of local people

Ironically though, rent rises are driving many of the artisan small businesses and cafes that define the town out of business. One local business owner, Sarah Wingrove, 29, told the BBC that despite being born in Frome, she still lives with her parents due to the cost of homes.

She said: “Even though I work a full-time job and freelance as a model, the mortgage people say I don’t earn enough for a house in Frome.”

Local artist and renter Summer Auty, 24, told the BBC that she has had to live in her van due to the cost of rent. She said: “I can’t afford anything in Frome, so I’m living in my van. It’s ridiculous. We need a complete redistribution of wealth, it’s awful all the big homes lying empty, all the land we cannot use.”

Rented rooms in the town are now known to go for as much as £500 a month, while a small one-person flat can cost over one thousand pounds a month.

224,000 patients wait two months for NHS cancer diagnosis they should get in four weeks

More than 200,000 suspected cancer patients have had to wait at least two months for a diagnosis in a failure of Government targets, according to official statistics.

Hugo Gye inews.co.uk

Ministers are set to confirm this month that the majority of NHS targets for cancer will be abolished as the health service changes its strategy for treatment.

One of the few targets expected to remain is the ambition to ensure that 75 per cent of patients with a referral for a cancer check receive either a firm diagnosis, or confirmation they do not have the disease, within 28 days.

But ministers have admitted that in many cases, patients in England must wait for more than twice as long as the target states.

In the past year, a total of 224,076 people have received their diagnosis after a wait of 62 days or more, Health Minister Will Quince said in a written answer to a parliamentary question. That is around 7.7 per cent, or one in 13, of the total number of people referred for a cancer check.

Over the latest 12 months for which data is available, 857,000 patients waited more than 28 days, 29.4 per cent of the total.

Labour’s shadow Health Secretary, Wes Streeting, told i: “A quarter of a million patients have been left waiting double the amount of time to get a diagnosis than is safe. Having gone through treatment for kidney cancer, I know that an early diagnosis can be life-saving.

“After 13 years of Conservative mismanagement of the NHS, cancer care is in crisis. Yet Rishi Sunak is more interested in cutting standards for patients than he is in cutting waiting times. Labour will provide the NHS with the staff, modern technology, and reform it needs, so it is there for cancer patients when they need it.”

The Government has refused to confirm reports that two-thirds of existing cancer targets are to be scrapped following the results of a review involving expert evidence on how best to improve clinical outcomes.

Health Secretary Steve Barclay told the BBC: “This is something led by clinicians working in cancer. It is not something being imposed by the Government, it is in response to requests by those working in the cancer field and any changes, if they are announced in the coming days, will be in consultation with the leading cancer charities.”

But Sir Keir Starmer said ministers were “moving the goalposts”, adding: “Even where they’re keeping targets after this streamlining, there’s targets they’re still not hitting.”

A spokesman for the Department of Health said: “There are record numbers of cancer checks happening in the NHS, meaning almost three million people have received care that could save their lives, and there continues to be steady progress in a lot of areas of cancer performance – including continuing to meet the faster diagnosis standard which means people are diagnosed within 28 days of being seen and the NHS continue to treat thousands of people a week.

“Thanks to the efforts of the NHS to bring more people forward for checks sooner, we’re already seeing major progress with a higher proportion of people than ever before being diagnosed at an earlier stage. And we’re looking to build on this, including by rolling out a national targeted lung cancer screening programme to catch cases earlier.”

Seaton traders ‘devastated’ by disruption from new Aldi

Aldi has been urged to pay compensation to traders affected by the construction of a new supermarket in a Devon town.

By Andrea Ormsby and Brodie Owen www.bbc.co.uk 

Building works for the new store in Seaton started in April and are expected to be completed later in 2023.

Janet Phillips, the owner of 4 Seasons clothing shop in a shopping complex next to the building site, said noise and dust was “destroying her business”.

Aldi said the store would “create jobs and provide affordable, high-quality groceries for local residents”.

The supermarket added that work on the Harbour Road site was being carried out “in line with the planning consent given”.

Ms Phillips said she wants Aldi to compensate her for an estimated £20,000 dip in trade since work began.

“I think it’s absolutely appalling – they are destroying our businesses,” she said.

Sophie Nevitt, the owner of homewares shop So Sophie, told the BBC in May she felt “insulted” by the supermarket’s treatment of her.

“Since the closure of the car park, the effect has been crippling on my business,” she said.

“The disregard for actually how they have affected me as a small business is insulting.”

Del Haggerty, from Seaton Town Council, said the supermarket needed to “reconsider how they treat local shops”.

“They should reconsider the compensation they give these three shops here because they’re right in their backyard and it would make a difference to them,” he said.

“When the planning goes through people have got to expect disruption but not complete devastation,” he added.

Aldi said it was working with affected businesses to “improve access and maintain footfall”.

The supermarket said: “Our new store in Seaton will create jobs and provide affordable, high-quality groceries for local residents. Construction is on track and in line with the planning consent given.

“We are working with local businesses to provide advertising at the site and in the local area to ensure customers are aware that neighbouring businesses are open as usual.

“We are doing all we can to improve access and maintain footfall to nearby businesses while work is ongoing and we apologise for any inconvenience caused.”

£250m funding for more hospital beds in England this winter

Remember: the NHS has lost almost 25,000 beds across the UK in the last decade, according to a damning report last year that says the fall has led to a sharp rise in waiting times for A&E, ambulances and operations.

In March 2019, at the start of the pandemic, Owl pointed out that the South West has the lowest number of critical care beds per head of population. It also has the oldest population (so highest expected mortality).

But who took the beds away in the first place? Over the years East Devon Watch has chronicled the zeal with which local Tories have pursued local cuts in beds and slapped down all criticism, it’s all “on the record”.

The government has announced £250m in funding to provide an extra 5,000 NHS hospital beds in England this winter.

By Michelle Roberts www.bbc.co.uk

Ministers say 900 new beds should be ready by January, with the remainder to follow soon after, boosting capacity and helping lower record waiting lists.

The increase will mean nearly 100,000 permanent beds on wards and in A&E, available at the busiest time of the year – a 5% rise on current levels.

NHS Providers said the extra capacity was needed “before winter begins”.

Miriam Deakin, director of policy and strategy at NHS Providers, said trusts would welcome the support but cautioned any new beds would need to be staffed.

She added that, since winter is the busiest time of the year for urgent and emergency care, trust leaders would be concerned that the promised extra capacity is only expected to be in place by January.

“For the best results, trusts would need these new beds before winter begins,” she said.

Pat Cullen, from the Royal College of Nursing, added: “The elephant in the room is who will staff these additional beds? Nursing staff are already spread too thinly over too many patients.”

Co-ordinated follow-up care

The government money will also fund services where people can be treated without requiring a hospital stay.

Funding will be focused on developing or expanding urgent treatment centres and same-day emergency care services, where patients can be seen quickly without the necessity of being admitted to hospital.

NHS England is also preparing to make it easier to discharge hospital patients when they are medically-fit to leave, through the rollout of so-called “care traffic control centres”.

These bring together the NHS community, housing and charity teams to help co-ordinate support for those patients who require continuing care once they are discharged from hospital.

The aim is that plans for a prompt and efficient discharge can be drawn up shortly after patients are first admitted to hospital, thanks to better co-ordination among teams regarding follow-up care.

Alongside these measures, there will be at least 10,000 ‘virtual’ hospital beds available by autumn, allowing some patients to be monitored in their home.

It comes after new data from NHS England revealed waiting lists had reached a record 7.6 million at the end of June.

‘Longer-term challenges’

Prime Minister Rishi Sunak said the planning for winter had started “earlier than ever before” and that the public could be reassured the NHS would be given the resources it needs.

“These 900 new beds will mean more people can be treated quickly, speeding up flow through hospitals and reducing frustratingly long waits for treatment,” he said.

Health Secretary Steve Barclay said: “We know that winter is a difficult time, so we’re working to get ahead of pressures whilst also creating a sustainable NHS fit for the future.”

NHS chief executive Amanda Pritchard said: “Winter is always a busy time for the NHS and so it is right that we put robust plans in place as early as possible to boost capacity and help front-line staff to prepare for additional pressure.

“Our winter plans, which build on the progress already made on our urgent and emergency care recovery plan, aim to reduce waiting times for patients, and to transform services with an expansion of same-day care and virtual wards, helping patients to be cared for in their own home where possible.”

But certain longer-term issues have yet to be addressed, warned Ms Deakin from NHS Providers.

“Underlying issues, including workforce shortages, a lack of investment in capital and the desperate need for social care reform will ultimately hinder progress unless also addressed,” she said.

“It will also be important to understand where new beds are being created, and where beds are being freed up by better means of meeting patients’ needs – through care at home or same-day emergency care, for example.

“Steps like this are promising, but the only way to recover urgent and emergency care – and to put the NHS on a sustainable footing – is for the government to tackle the longer-term challenges in health and care,” she said.

Planning applications validated by EDDC for week beginning 31 July