Ministers have been told to “come clean” on the economic argument behind not scrapping non-doms in the UK after the chancellor suggested he did not know how much money axing the controversial tax status would raise.

[See below Owl’s summary of the anachronistic origins in colonialism and slavery that gave rise to “non-dom” status. It was specifically introduced to shelter foreign property owners from swinging taxes introduced to pay the national debt in 1799. The status remains unique to the UK.]

Kate Devlin www.independent.co.uk

Jeremy Hunt insists the economy would not be helped by scrapping the status, saying on Friday that he would rather the super rich “stayed… and spent their money here”.

And he said he was told by Treasury officials that they were “very unsure” about how much money the move would actually make.

Labour has now called on ministers to publish figures on how many non-doms there are and the amount the Treasury loses because of the loophole.

The highly-respected Institute for Fiscal Studies (IFS) think tank told The Independent the “best estimate” it had was that abolishing the measure would be worth around £3 billion a year.

The figure is roughly the same amount as Mr Hunt announced will be added to next year’s NHS budget.

The Independent revealed earlier this year that Rishi Sunak’s wife, Akshata Murty, held non-domicile status while her husband was chancellor.

Mr Sunak called the reports about his wife “unpleasant smears” at the time, though she ultimately gave up the advantage.

The issue was seen as so toxic that insiders initially believed it scuppered Mr Sunak’s hopes of becoming prime minister.

The lawful status can save an individual from paying UK tax on income from dividends from foreign investments, rental payments on property overseas or bank interest.

Making the call for the government to produce figures on non-doms, shadow chief secretary to the Treasury Pat McFadden said: “As the Tories raise taxes on working people, it simply isn’t right that those at the top can benefit from outdated non-dom tax perks.

“If you make Britain your home you should pay your taxes here.”

He said Labour would ensure “people who make the UK their home will contribute to this country by paying tax on their global income”.

Labour also cited researched from the London School of Economics which alligned with the IFS and put the figure the treasury could raise as close to £3.2 billion a year.

Earlier this year, the IFS warned there was “very little evidence on the effectiveness of the non-dom regime at attracting and retaining valuable individuals”.

But Mr Hunt argued that scrapping the tax loophole as Labour has suggested would “damage the long-term attractiveness of the UK”.

He faced questions over his decision to keep the status while planning tax rises and public service cuts, which experts warned would hurt those on middle incomes especially.

The chancellor said Treasury officials did not give him solid numbers on how much abolishing or paring back non-dom status would raise.

“They said to me that they were very unsure about the figures that were being bandied around, as far as the savings were concerned,” he said.

“Like me, they wanted to be very sure they weren’t doing things that damaged the UK’s attractiveness. These are foreigners who could live easily in Ireland, France, Portugal, Spain, they all have these schemes. All things being equal, I would rather they stayed here and spent their money here.”

Pushed on whether Treasury had given him a figure on how much abolishing the status would bring in, he said: “No, because we don’t agree with the figures that Labour have given.

“The Treasury did not tell me it was going to help the economy to do this, that’s why I chose not to do it.

“I’m not going to do anything that’s going to damage the long-term attractiveness of the UK, even though it gives easy shots to opposition parties, I think it would be the wrong thing to do in terms of creating jobs in the UK.”

Labour has pledged to abolish non-dom tax status and replace it with a system similar to that in Germany or Canada where temporary residents are allowed to avoid paying domestic tax on overseas earnings.

Shadow chancellor Rachel Reeves accused Mr Hunt of endorsing “tax free income for millionaires while millions face frozen tax allowances and council tax hikes”.

In an apparent reference to Mr Sunak’s household, she added: “How can he possibly claim that this is fair? He refuses to act, and I wonder why. Maybe that was the only policy that he can’t get signed off by No 10 Downing Street. I say if you make Britain your home you should pay your taxes here.”

A Treasury spokesman pointed to Mr Hunt’s comments that axing the status would be the “wrong thing to do in terms of jobs and prosperity for the United Kingdom”.

History  of “Non-Dom” status and its origins in colonialism and slavery

The “non-domicile” tax exemption regime was originally introduced in 1799 to shelter those with foreign property from the swinging taxes introduced by prime minister William Pitt the Younger.

Pitt introduced new taxes In 1786 to try to reduce the debt incurred by the American War of Independence. With the country still in debt, Pitt was also forced, in 1797,  to introduce Great Britain’s first-ever income tax. The Napoleonic wars followed almost immediately and Pitt may have seen these coming.

“Non-Dom” status, then, is an echo of our colonial past. 

It is subtly different from nationality and residence and roughly equates to the concept of “homeland”. “Non-Doms” are supposed to have strong links to that “homeland” and demonstrate intent, not to remain in Britain, but to return there. A further curiosity is that you can also inherit the status from your father.

However, if eligible, you still have to make a conscious decision to claim this status. It’s a choice.

Having lost America, the aim of the perk was to keep the new colonial rich happy. Those who were now left propping up the empire, for example sugar farmers in Jamaica. 

It is, therefore, appropriate to consider this quirk in the light of the current debate on the legacy of slavery.

Slavery was only outlawed completely, though not entirely stopped, in the “Empire” in 1833 and emancipation was not fully achieved in the USA until 1865.

But what was our Police and Crime Commissioner, Alison Hernandez, doing being photographed alongside Tory candidate Paul Carter, EDDC Tory Leader Philip Skinner and Simon Jupp MP?

Didn’t she take an oath to conduct herself “without fear or favour”?

Has she nothing better to do?

All for a paltry 113 votes! – Owl

Paul Arnott www.midweekherald.co.uk

Readers may recall my writing about the passing of the vice chair of East Devon District Council, Val Ranger over the summer after a brave fight against an awful diagnosis. Even now I find it hard to process the loss of a truly loved friend and colleague, and I know many other councillors feel the same.

Val would have been pleased, I feel sure, that democracy carried on last week in her ward of Newton Poppleford and Harpford when a by election was held to find a new councillor to serve the remainder of her term till next May. The winner was an Independent, as Val was, Chris Burhop, well-respected chair of the parish council, by a huge margin.

I also feel Val would have welcomed the campaign of another local candidate, Caleb Early representing the Labour Party. Caleb is not yet twenty, but plainly sincere and passionate, just the kind of person who Val would have nurtured and encouraged. I hope he enjoyed the experience and congratulate him on taking second place. The desire to serve in a younger person gives great hope for local democracy.

Coming third was Paul Carter for the Conservatives and again anyone prepared to put their head above the parapet is to be applauded. The campaign which was run for him by the East Devon Conservatives, however, caused widespread concern in one particular respect.

That worry is over the role of the Devon & Cornwall Police and Crime Commissioner, Alison Hernandez. The oath promised when P&CCs take office is to conduct themselves “without fear or favour”. To many, while these positions are usually elected on political lines, the winner must thereafter check in their party affiliations and partisan campaigning at the door.

Of course, if Ms Hernandez wishes to attend Conservative party rubber chicken evenings, she has every right to do so. But I am very uneasy that someone on £85,000 per year whose sole public focus should be on the fight against crime feels she can spend her time campaigning in by elections.

To be frank – and again, I am not on Twitter but people send me these images – when I saw the Tories open their campaign in Newton Poppleford with a four-shot picture of Mr Carter, EDDC Tory Leader Philip Skinner, Simon Jupp MP, and the “without favour” Police and Crime Commissioner I felt like I’d been punched in the stomach.

For they were openly touting this election, caused only by a tragic premature death of my friend, as the launch of their campaign for next year’s district elections. This was ill advised in two respects. First, it calls into question the judgement and independence of our Police and Crime Commissioner. And second, simply, how deluded were they?

Because while shipping in campaigners from out of Devon to knock on doors, didn’t they have the simple intelligence on the ground to realise that they were always going to be beaten by a country mile and that the missiles from their big cannons would just dribble out of the barrels and explode around their own feet?

Elsewhere in the jungle, Conservative-led Devon County Council is in huge financial trouble, as was reported last week, just as Tory Kent and Hampshire Councils are this week. In this respect however, I feel very different about the Tories.

John Hart, the longstanding Leader of Devon CC, is a decent, serous, old-school, one-nation politician, being sold down the river by his government. The crisis has been almost entirely caused by that government failing to properly fund both child and adult social care and pushing the problem down to the county councils. I wish him well in his campaign to be heard at Westminster.

But see Owl’s emphases.

And can we predict the local Tory reaction to any EDDC increase in Council Tax?

Chancellor Jeremy Hunt’s Autumn Statement, which introduced additional funding for social care and a delay to charging reforms, has been described by local government finance leaders as “better than expected”.

Aysha Gilmore www.room151.co.uk

In his statement to the House of Commons on 17 November, Hunt promised to prioritise “stability, growth and public services”. He chose to address inflationary pressures facing local authorities by committing up to £2.8bn of additional funding for adult social care in 2023/24 and £4.7bn for the following year.

Hunt also announced a delay to the social care charging reforms from October 2023 to October 2025. Funding for implementation of the reforms will be maintained to enable councils to address current adult social care pressures.

In response to the Autumn Statement, Chris Tambini, president of the Society of County Treasurers and director of corporate resources at Leicestershire County Council, told Room151: “The position is better than expected, and, compared to other parts of the public sector, local government has fared well. Especially welcome is the extra funding for adult social care and deferring the adult social care reforms.”

Tambini’s sentiment was echoed by Tim Oliver, chairman of the County Councils Network (CCN), who called the delay to social care reforms a “brave decision, but completely the right one”.

He said: “We understand that many will be disappointed, but postponing these reforms and reinvesting significant additional funding into frontline care services is strongly welcomed and will protect the most vulnerable in our society as well as buy councils vital time to stabilise the care system.”

Council tax ‘flexibilities’

The chancellor also promised increased “flexibilities” on council tax. Local authorities will be able to increase council tax by up to 3% per year from April 2023 without a referendum, with councils that have social care responsibilities able to increase their council tax by an additional 2% per year. Currently, the overall cap is set at 2.99%.

According to Dan Bates, director at consultancy LGi, local government budget gaps were reported to be about £3.5bn prior to the Autumn Statement. “I’d expect the additional £2.8bn for social care and a modest 1% increase in the council tax referendum limit to be cautiously welcomed by councils,” he told Room151.

“Whether this extra funding can be distributed in a fair way that meets levelling up ambitions remains to be seen. It should give [levelling up secretary] Michael Gove some headroom to equalise the impact that sees councils with high needs and low taxbases, mainly in the North, receive much less from council tax increases.”

Hunt’s announcement on tax flexibilities has been criticised by a range of council leaders. Sir Stephen Houghton, chair of the body representing municipal authorities SIGOMA , said: “Reliance on council tax to fairly fund care and other services is the wrong choice – it raises funding in a way unrelated to need while the increases ‘allowed’ will not come close to the funding gap and will put more pressures on family budgets when they can least afford it.”

Tambini added: “Most income sources including council tax will be lower in real terms in 2023/24 and that is on top of significant real terms cut in spending power this year.

“It has also left local politicians of upper-tier councils with the difficult decision of whether to put up council tax by 5% in the middle of a cost-of-living crises with the largest falls in disposable income on record.”

Devolution ‘milestone’

In his statement, Hunt confirmed the second round of the Levelling Up Fund, which will allocate at least £1.7bn to priority local infrastructure projects. He also announced a new elected mayor in Suffolk and new devolution deals for Cornwall, Norfolk and “an area in the North East”.

Cllr Martin Hill, the CCN’s devolution spokesperson, said: “The announcement today that the devolution deal in Suffolk is complete, with those in Cornwall and Norfolk close to completion, is another milestone in the county devolution agenda.

“All three agreements could be genuinely transformative for their local areas, with the Suffolk devolution deal the first of its kind in putting forward a directly-elected county leadership model.”

However, Hunt decided to “refocus” Liz Truss’ investment zones programme by “leveraging our research strengths by being centred on universities”.

Houghton said: “It is welcome that investment zones will be re-prioritised toward ‘left-behind’ areas, but the fact that the original expressions of interest will not be taken forward is just the latest example of the flaws of competitive bidding and the overcentralisation of local government funding pots.”

Hunt also announced that the government will provide £1bn to enable the extension of the Household Support Fund in England over 2023/24.

Keep the government “Old Stale and Tory” by preventing the young from voting! Looks discriminatory to Owl.

Long-awaited details of the government’s voter ID scheme have now finally been released including details of which IDs will be accepted at the polling station.

With no alternatives for voters who turn up on the day without the required ID or voter certificate, this list is all-important

Author: Jessica Garland, Director of Policy and Research www.electoral-reform.org.uk

Accepted forms of photographic identification for voting in the UK

• A passport issued by the UK, any of the Channel Islands, the Isle of Man, a British Overseas Territory, an EEA state or a Commonwealth country
• A driving licence issued by the UK, any of the Channel Islands, the Isle of Man or an EEA state
• A biometric Immigration document
• An identity card bearing the Proof of Age Standards Scheme hologram (a PASS card)
• Ministry of Defence Form 90 (Defence Identity Card)
• A Blue Badge
• A national identity card issued by an EEA state
• An Older Person’s Bus Pass
• A disabled person’s Bus Pass
• An Oyster 60+ card
• A Freedom Pass
• A Scottish National Entitlement card issued in Scotland
• A 60 and Over Welsh Concessionary Travel card issued in Wales
• A Disabled Person’s Welsh Concessionary Travel Card issued in Wales
• A Senior Smart Pass issued in Northern Ireland
• A Registered Blind Smart Pass or Blind Person’s Smart Pass issued in Northern Ireland
• A War Disablement SmartPass or War Disabled SmartPass issued In Northern Ireland
• A 60+ SmartPass issued in Northern Ireland
• A Half Fare Smart Pass issued in Northern Ireland
• An Electoral Identity Card issued In Northern Ireland
• A Voter Authority Certificate or a temporary Voter Authority Certificate

Acceptable forms of ID are predominantly held by older people

The list, contained in recently tabled secondary legislation, includes passports and driving licences and a range of travel cards – predominantly those held by older people. This has prompted concern that younger people without ID will find it comparatively harder to vote.

During the passage of the Elections Act we successfully campaigned to extend the list of acceptable IDs. A cross-party group of peers passed an amendment that would have seen student IDs, library cards, bank statements and other easily accessible forms of ID accepted at polling stations. These options would have provided an important backstop for voters who don’t have more expensive forms of identity documents, like passports, and who may not have been able to access the voting certificate option.

The government’s decision to repeal this amendment during the final stages of the bill means that voters now have far fewer options on polling day.

New identification rules for 2023’s local elections

The government intends the new identification rules to be in place for next year’s local elections. For voters in Scotland and Wales, and in local areas that aren’t holding elections in 2023, these new rules will come into effect for the first time in what is likely to be a general election year.

Electoral administrators have already warned about the pressures they face to ensure that the scheme can be implemented in time for next year. Government delays bringing forward key secondary legislation means that final details won’t be legally in place until less than four months before the election. This month we called on the Political and Constitutional Affairs Committee to launch an inquiry into the implementation of voter ID and the impact of these delays.

Alongside concerns about implementation, the Association of Electoral Administrators have raised their fears about the impact on volunteer polling staff who will be forced to make decisions on who should be turned away from the polls.

For anyone following the US mid-terms this week, the importance of voter faith in election processes and outcomes is clear. Putting our electoral system under this sort of pressure risks undermining one of the most important aspects of democratic life – that voters and candidates accept that the process was fair and the results are true.

We have long argued that voter ID is an unnecessary distraction, but the risks involved in getting it wrong are significant.

Add your name to our call to protect your right to vote

www.local.gov.uk

“Councils want to work with central government to develop a long-term strategy to deliver critical local services and growth more effectively. Alongside certainty of funding and greater investment, this also needs wider devolution where local leaders have greater freedom from central government to take decisions on how to provide vital services in their communities.”

Responding to the Autumn Statement announced by the Chancellor today, Cllr James Jamieson, Chairman of the Local Government Association, said:

“Local government is the fabric of the country, as has been proved in the recent challenging years we have faced as a nation. It is good that the Chancellor has used the Autumn Statement to act on the LGA’s call to save local services from spiralling inflation, demand, and cost pressures.

“While the financial outlook for councils is better than we feared next year, councils recognise it will be residents and businesses who will be asked to pay more. We have been clear that council tax has never been the solution to meeting the long-term pressures facing services – particularly high-demand services like adult social care, child protection and homelessness prevention. It also raises different amounts of money in different parts of the country unrelated to need and adds to the financial burden facing households.

“We are pleased that government will provide extra funding for adult social care and accepted our ask for funding allocated towards reforms to still be available to address inflationary pressures for both councils and social care providers. Councils have always supported the principle of adult social care reforms and want to deliver them effectively but have warned that underfunded reforms would have exacerbated significant ongoing financial and workforce pressures. The Government needs to use the delay announced today to learn from the trailblazers to ensure that funding and support is in place for councils and providers to ensure they can be implemented successfully.

“The revised social rent cap is higher than anticipated next year but councils will still have to cope with the additional financial burden as a result of lost income. Councils support moves to keep social rents as low as possible but this will have an impact on councils’ ability to build the homes our communities desperately need – which is one of the best ways to boost growth – and retrofit existing housing stock to help the Government meet net zero goals.

“Financial turbulence is as damaging to local government as it is for our businesses and financial markets and all councils and vital services, such as social care, planning, waste and recycling collection and leisure centres, continue to face an uncertain future. Councils want to work with central government to develop a long-term strategy to deliver critical local services and growth more effectively. Alongside certainty of funding and greater investment, this also means wider devolution where local leaders have greater freedom from central government to take decisions on how to provide vital services in their communities.”

“It will wipe out the past eight years of growth, as wage rises fail to keep pace with inflation and interest rates rise.”

“Only the third time since the mid-1950s in which there will be back-to-back years of falling living standards.”

“Taxes will rise to 37.1% of GDP by 2027-28, their highest sustained level since the second world war.”

“A future government will face “a very large single fiscal event” in 2027-28 when, according to plans set out today, the Treasury will cut spending and increase taxes by £61.7bn,”

Anna Isaac www.theguardian.com 

The UK has fallen into a recession which will last more than a year and push half a million people out of work, while households face the biggest fall in living standards since records began.

The government spending watchdog forecast a 7% drop in household incomes over the next two years, capping what one of its officials described as a “dismal decade” for growth.

There will be the biggest fall in living standards since records began, with inflation “tipping the economy into a recession lasting just over a year”, the Office for Budget Responsibility said, as it released updated forecasts to accompany chancellor Jeremy Hunt’s autumn statement.

The drop in household spending power will be so acute it will wipe out the past eight years of growth, as wage rises fail to keep pace with inflation and interest rates rise. It will effectively turn the clock back to 2013, the OBR said.

It also marks only the third time since the mid-1950s in which there will be back-to-back years of falling living standards. The last time was in the aftermath of the global financial crisis.

The years since then had been “a dismal decade for UK growth”, said Prof David Miles, a member of the OBR’s budget responsibility committee, adding that in the “very near term”, it was going to be “a year of squeezed budgets for households”.

The economy will shrink by 2%, driving up unemployment by 505,000 by the second half of 2024, the OBR said. GDP will only reach its pre-pandemic level by the end of the same year.

“The medium-term fiscal outlook has materially worsened since our March forecast due to a weaker economy, higher interest rates, and higher inflation,” the OBR said in its latest update on the outlook for the economy and public finances published alongside Jeremy Hunt’s autumn statement.

There will be further pain for homeowners, with house prices set to fall 9% by 2024, the same year in which the next general election is expected to be held, while the average interest rate on mortgage debt will peak at 5%. Unemployment also is set to peak in the second half of 2024.

While household incomes are squeezed, taxes will rise to 37.1% of GDP by 2027-28, their highest sustained level since the second world war. This year, total taxes raised will top £1tn for the first time, after Hunt’s decision to expand the windfall tax.

Overall, the spending watchdog said government borrowing was likely to be higher than forecast in March this year, but would fall relative to economic output from 2024-25 onwards.

Under the plans announced on Thursday, a future government will face “a very large single fiscal event” in 2027-28 when, according to plans set out today, the Treasury will cut spending and increase taxes by £61.7bn, said Andy King, a member of the OBR’s budget responsibility committee.

It would be a “pretty similar number” compared with the 2010 austerity budget, when compared with the size of economies at the time, albeit against a different economic backdrop, King said.

While a fiscal crunch could be delayed until after a general election, some impact from the recession would be felt keenly in the run-up to polling day, according to the OBR’s calculations.

The OBR was embroiled in a political storm around Liz Truss and Kwasi Kwarteng’s mini-budget, which went ahead in September without releasing forecasts from the watchdog.

It said on Thursday, in light of the furore, that its forecast “has been unusual in both the time it took to produce and the process leading to its publication”.

The omission of independent economic and borrowing forecasts triggered a crisis in the bond markets, with a sell-off in UK government debt, known as gilts, as investors felt the government had made a deliberate decision to avoid independent scrutiny of their spending plans.

The pair met with Richard Hughes, OBR chair, in the aftermath of the mini-budget in an attempt to cool markets.

Ahead of the autumn statement, the watchdog said: “This forecast process has been unusually uncertain, with various changes to both internal and public deadlines for forecast rounds, policy changes and publication dates.” The document it produced was also far shorter than usual and noted that there have been “five fiscal events since March”.

[OBR overview of the fiscal outlook can be found here]

Changes to planning policy could turbocharge the rollout of solar energy and help reduce reliance on gas at little or no cost to the public purse, analysis by CPRE, the national countryside charity has shown.  It’s urging the government to target rooftops, car parks and brownfield sites for a rapid expansion of renewables. 

Authored by sharon goble www.thedevondaily.co.uk 

The Devon branch of the charity, Devon CPRE, has been fighting industrial-sized solar farms in the countryside for years, along with locals who oppose these developments on Devon’s farmland. Demands for food security and nature recovery are needlessly clashing with net zero goals. One of the most recent proposals for a large solar farm at Marsh Green, near Exeter, is due to go before East Devon District Council’s planning committee at the end of this month. 

Devon CPRE trustee Steve Crowther says, “Devon CPRE is passionate about ensuring that valuable farmland which we increasingly need for our food security – including the top quality livestock-farming land that’s so abundant in Devon – is not lost to industrial-scale solar farms and massive battery storage sites. 

“Each of the large solar sites which we have been fighting takes the equivalent of a whole average-sized Devon farm out of effective food production. As this CPRE report shows, roofs, canopies and brownfield sites are the solution; and there are more than enough of them nationally to provide all the solar power that our grid can cope with.”

The charity is calling on the government to adopt a renewables strategy that prioritises rooftops, surface car parks and brownfield sites in a concerted effort to attract wide public support. If implemented quickly, the policy could drastically reduce energy bills during the cost-of-living crisis and speed up the transition to net zero, while leaving as much countryside as possible available for farming and nature restoration. 

Analysis by CPRE, using highly conservative estimates, shows that if only a quarter of the UK’s total 250,000ha. of south-facing commercial roof space was useable it could provide  25GW of solar capacity. With good planning and design, 20,000ha. of car parking space could potentially yield an additional 8GW of solar capacity alongside tens of thousands of new homes. The UK already has 14.5GW of solar capacity operational. 

In contrast to the UK’s approach, France has announced plans to fast-track renewable energy by mandating car parks nationwide be covered by solar panels – a popular policy that could generate up to 11GW of power, equivalent to 10 nuclear reactors. Meanwhile, Germany has focussed on rooftops first, with 80% of its solar power coming from panels that generate little public opposition.  

It is evident that a combination of rooftops, surface car parks, brownfield sites and small-scale community energy schemes could make a huge contribution to our onshore renewable energy requirements, especially when coupled with better measures to reduce total energy demand currently missing from the government’s approach.  

Britain’s economy is recovering far worse than that of the eurozone and US from the recession caused by the Covid-19 pandemic, the Bank of England governor has said.

Jon Stone www.independent.co.uk 

Speaking at a hearing of the Treasury Select Committee on Wednesday Andrew Bailey told MP there was a “dramatic” and “stark” difference in economic performance.

Mr Bailey said the UK’s GDP had still not recovered to its 2019 level and was 0.7 per cent smaller than it had been pre-pandemic.

He contrasted this with the eurozone area, whose economy now 2.1 per cent bigger than in 2019.

The US economy had grown even more, he added, with its GDP now 4.2 per cent bigger than it had been at the start of the pandemic.

Economic activity was put into the deep freeze across the world during the Covid-19 pandemic as countries around the world locked down to prevent the spread of the virus.

In most cases growth rebounded sharply after economies reopened, but the UK has not done as well as its neighbours.

“I’m afraid it’s not a good story I’m about to tell you: the level of UK GDP now versus the pre Covid level, compared to other economies is think -0.7 per cent,” Mr Bailey told MPs.

“So in other words, the economy is smaller than it was at the end of 2019 in terms of GDP. The euro area is plus 2.1 and the US on the latest number, which is just come out, is plus 4.2.

“It is a dramatic difference. I think there’s probably quite a few things account for it: the approach that’s been taken towards energy prices, fiscal support, the US has had a lot of fiscal support and is in a very different position in terms of the economy.

“So there’s probably quite a lot of things contributing to it, but it’s pretty striking.”

Mr Bailey was speaking on the same day the Office for National Statistics showed soaring food and energy prices had driven UK inflation to a 40-year high of 11.1 per cent.

Energy suppliers have been accused of profiteering by charging “horrendous and financially crippling rates” to care homes facing huge bills this winter.

Alex Lawson www.theguardian.com 

The chief executive of Care England, the largest body representing independent providers of adult care, has accused gas suppliers of being “unduly onerous” in their practices.

In a letter to Ofgem, and the Department for Business, Energy and Industrial Strategy (BEIS), seen by the Guardian, Martin Green called on the energy regulator to launch an investigation into suppliers’ practices.

A review by the not-for-profit energy consultancy Box Power Cic found that gas suppliers were not passing on recent falls in wholesale prices to businesses in the care sector.

Green wrote: “We believe there can be no justification for charging such horrendous and financially crippling rates that gas suppliers are explicitly prohibited from doing so.”

Ofgem’s supply licence stipulates that companies must take all reasonable steps to ensure that the terms of each deal for customers not locked into long-term contracts are “not unduly onerous”.

Green said: “Undoubtedly one of the most pressing issues facing the country at present is the ongoing energy crisis. The rises in wholesale electricity and gas prices are having a profound effect on businesses and individuals across the country.

“However, there are few environments where the impact has been as severe and devastating as in the adult social care sector, which is required to heat facilities this winter and increase ventilation by letting in fresh air into indoor spaces.”

The Covid outbreak stretched resources at care homes across the country and the government’s policy towards care homes in England at the start of the pandemic has been ruled illegal.

Green said there was an “underlying financial fragility” in the sector and its need to use large amounts of energy “has meant providers are pushed further into what was already an incredibly precarious situation”.

The price of natural gas has fallen sharply in recent weeks as a mild start to winter and good progress in filling up European storage facilities have eased concerns over shortages of Russian gas this winter.

The government introduced a six-month scheme to discount businesses’ energy costs last month. The Box Power study found that many tariffs were being increased by more than the government’s discount and “bear no relation” to current prices. It said companies were being charged 25p to 40p per kilowatt hour, far higher than spot prices of about 3p.

Green’s intervention echoes similar concerns among pubs and restaurants over gas and electricity costs.

The trade body UKHospitality said companies had been quoted deals “substantially” above the wholesale cost. Its chief executive, Kate Nicholls, said there was “no reasonable explanation for this colossal increase in margins” and wrote to the business secretary, Grant Shapps, requesting an investigation by the Competition and Markets Authority.

The business department said it was “aware of a small minority of businesses” reporting energy suppliers were undermining the energy bill relief scheme in response to Nicholls’ claims. It said it was working with Ofgem to ensure licences had not been breached.

Suppliers have argued that uncertainty over the future price of gas and electricity has made determining the price of contracts difficult.

A spokesperson for the energy regulator said it intended to respond to the Care England letter, adding: “Ofgem’s priority is to protect consumers and businesses and ensure they pay a fair price for their energy.

“That’s why we are working with government and stakeholders to determine if further action or assistance is needed to help protect businesses including care homes and their residents, including whether a review on compliance of existing obligations is needed.”

BEIS was contacted for comment.

From Athena’s Bubo:

“Owl continues to show the characteristics of its species, who are known for their binocular vision and binaural hearing, bestowing great wisdom and judgement, which can also be attributed to five Members of the East Devon Planning Committee yesterday, who voted against these horrendous 40 four-storey flats in a historic, rural village!

Unfortunately, such qualities and traits are lacking in Developers, who seem more akin to vultures (gaining from other’s troubles); magpies (systematic hunters, eating their own species); cuckoos (cunning but destructive birds); pigeons (causing extensive damage and contamination, often called ‘rats with wings’); crows (intellectual – but deadly in groups know as ‘murders’ – when they can devastate environments)!

The six Planning Committee Members who voted in support of this development seemed more to mimic a gaggle of geese (flocking together for improved foraging); booming bitterns (loud, liking the sound of their own voices, patronising – but likely to be fighting extinction); the Dodos (renowned as the dumbest birds ever – but now extinct); the ostriches and emus (with undersized brains, easily fooled, favouring sticking their heads in the sand to avoid problems)!

In essence, both could be described as “the Feather-Their– Own– Nests–Birds”, some seeking avarice, others to climb to the highest perches to control, look condescendingly or dominate the more amenable, compliant species.

If these 40 towering structures ever get built in Clyst St Mary (in this current financial climate), Owl is welcome to fly in and land on the very highest storey to survey all the surrounding countryside – but unfortunately, for any sustenance, Owl will have to fly elsewhere – because the natural habitat and wildlife will be obliterated!”

The Yorkshire seaside towns of Whitby and Scarborough will be among the first in England to double council tax on second homes to tackle the “blight” of holiday lets.

Josh Halliday www.theguardian.com 

Councillors said the rise of Airbnb and other rental sites was “tearing the heart out of communities”, as they voted to introduce a 100% premium on owners of second homes in North Yorkshire.

In Whitby, about 28% of properties are holiday homes. Estate agents said that as many as three-quarters of new developments in the town are being sold as short-term lets or to investors.

The vote in Northallerton on Wednesday means North Yorkshire will become one of the first places in England to double council tax on second homes under the government’s levelling up bill, which is currently going through parliament.

The earliest the new council tax premium will take effect is April 2024 if the bill is passed into law by April next year.

Councils in Cornwall and other tourist hotspots are considering whether to introduce the same charge. In Wales, local authorities have been given powers to quadruple council tax bills on holiday homes.

A meeting of North Yorkshire county council was told on Wednesday that the proliferation of properties on sites such as Airbnb was “breaking up communities” and forcing out locals.

David Chance, a Conservative councillor, said the shortage of available homes meant there were 96 applications for each social housing property in Whitby.

In Runswick Bay’s lower village, he said, there were only 11 permanent residents and the remaining properties were holiday lets or second homes.

“Whitby people cannot afford to purchase a home in their own town,” he said. “We’ve built a lot of homes in Whitby recently and they’ve all been snapped up by outsiders.

“A lot have gone to second homes; a lot have gone to holiday homes and to holiday lets, and it’s tearing the heart out of communities. Our village communities are suffering greatly.”

Janet Jefferson, a North Yorkshire independent councillor, said she was dealing with “constant calls” from residents being evicted from properties that “have suddenly become holiday homes”.

“They are getting rid of people that have rented for years because they can make more money,” she said.

Jefferson said houses in her coastal ward were being turned into holiday homes “every day” without the need for planning permission, adding: “It’s affecting our communities. It’s breaking up our communities.”

Local authorities in Wales have in effect been able to double council tax bills on second homes since April 2017.

Earlier this year, the devolved Welsh government changed the law to allow councils to impose 300% premiums, meaning a £1,000 bill would become £4,000.

Owners of second homes in Gwynedd, north-west Wales, were told on Wednesday they would have to pay a 150% premium from next April under plans put forward by the local authority.

Ioan Thomas, Gwynedd council’s finance cabinet member, said the additional money would go towards tackling homelessness, which he said had risen by 47% in the area over the last two years.

Local authorities have warned they face an “existential crisis” caused by massive funding shortfalls and any attempt by ministers to patch up budgets by allowing increased council tax is doomed to failure.

Patrick Butler www.theguardian.com 

The multibillion “black hole” in England’s municipal finances – which has pushed a number of councils to the brink of bankruptcy – could not be fixed by local ratepayers alone, who would face unrealistic council tax increases of up to 20%, the Local Government Association (LGA) said.

Privately, many in local government believe few authorities would take the political risk of raising council tax even marginally above current cap levels when many of their residents are struggling in the middle of a brutal cost of living crisis.

Reports earlier this week suggested the government would attempt to head off the financial crisis by announcing in Thursday’s autumn statement that it would lift the long-established cap limiting annual council tax rises to 2.99% plus 1% for social care.

Local government insiders believe that even relatively small council tax rises above current cap levels would be unfair on ratepayers and unlikely to raise the sums needed to address the crisis. Each 1% rise would generate £309m for English councils, barely touching the sides of the shortfall, the LGA estimates.

Two true-blue Tory county councils, Kent and Hampshire, sent shock waves through Westminster this week when they told the prime minister, Rishi Sunak, that they were “sleepwalking into financial disaster”, with the crisis enveloping local government putting them and other authorities at risk of bankruptcy in the coming months.

They called for emergency help for councils alongside a clear plan for “long-term sustainability”. However, there is speculation ministers will announce this year’s council funding allocation will be “rolled over” to next April, leaving town halls to cut local services or raise council tax to try to balance their budgets.

There are concerns that any reliance on council tax to meet rising costs is unequitable because the most deprived areas of the country – where demand for services is highest – are least able to raise the funds they need.

The LGA chair, James Jamieson, said: “Local government remains the fabric of our country but many of the vital services we provide face an existential crisis.” Failing to provide long-term funding certainty would force councils to make significant cuts to services next April, including care for older and disabled people, child protection, homelessness prevention, leisure centres and bin collections, he added.

“While council tax is an important funding stream, it has never been the solution to the long-term pressures facing councils, raising different amounts in different parts of the country – unrelated to need – and adding to the financial pressures facing households,” he said.

The LGA estimates that English councils face a collective £2.4bn shortfall in budgets this year because of unexpectedly high inflation in staff pay, energy costs and contract prices. Without government intervention, the shortfall will rise to £3.4bn in 2023-24 and £4.5bn in 2024-25.

In a further sign of the bleak financial environment facing councils, local authority adult social care bosses said on Tuesday they had neither the funding nor the workforce to meet the needs of older and disabled people this winter.

The annual autumn survey carried out by the Association of Directors of Adult Social Services found nine out of 10 directors would struggle to cope with existing resources. One in 10 care worker posts were vacant, while collectively they were making an additional £113m of cuts on top of £597m savings already announced.

Cathie Williams, the association’s chief executive, said: “This is the bleakest autumn survey we have ever had. Only a handful of directors have any confidence they may be able to get through the winter with the funding they have and the care workers available locally.

“We were fearful in the summer; we are fearful now. This affects all of us.”

• Construction of garage and stable block with home gym, home office and spare bedroom; conversion of granary to annexe; construction of courtyard wall to provide rear entrance gateway; associated soft and hard landscaping; demolition of modern stores and stable block Horstone Farm Pinn Sidmouth EX10 0NNRef. No: 22/2445/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Proposed extension to kitchen and ground floor 24 Windsor Square Exmouth EX8 1JYRef. No: 22/2440/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Single storey rear extension and two storey side extension and demolition of conservatory. 42 Hollymount Close Exmouth Devon EX8 5PQRef. No: 22/2447/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Horse Chestnut (T1) – crown reduction by 1-2m; crown lifting to 3m above footpath; pruning around telecommunication wires to create ‘air gaps’. 196 Withycombe Village Road Exmouth EX8 3BDRef. No: 22/2448/TRE | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Construction of garage and stable block with home gym, home office and spare bedroom; conversion of granary to annexe; construction of courtyard wall to provide rear entrance gateway; associated soft and hard landscaping; demolition of modern stores and stable block Horstone Farm Pinn Sidmouth EX10 0NNRef. No: 22/2446/LBC | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Variation of condition no.2 (approved plans) on application 15/0655/MFUL (construction of veterinary hospital and donkey reception unit) for updated list of approved drawings submitted Brookfield Farm Offwell Honiton EX14 9SURef. No: 22/2443/VAR | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Single storey rear extension and extension of the existing raised patio. 22 Maristow Avenue Exmouth Devon EX8 3JFRef. No: 22/2434/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Sycamores (T1 – T4) – reduce crowns by 1/3rd. T1 – Some of the lowest limbs will be cuts of max diameter 15cm reducing them back by 3 metres in length. T2, T3 ,T4 – cuts no greater than 10cm in diameter, reducing to 2.5 metres in length. T5 – dismantle to ground level. Northcombe Farm Salcombe Regis EX10 0JQRef. No: 22/2437/TCA | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Erection of agricultural and machinery storage barn Harcombe House Harcombe Lyme Regis DT7 3RNRef. No: 22/2435/FUL | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Erection of 6 no. temporary guest shepherd-hut units with supporting services boiler housings and timber pond boardwalk Lympstone Manor Hotel Courtlands Lane Exmouth EX8 3NZRef. No: 22/2428/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Lawful development certificate for a single-storey rear extension, insertion of side bi-fold doors, and alterations to existing opening.24 Hereford Close Exmouth EX8 5QTRef. No: 22/2427/CPL | Validated: Tue 01 Nov 2022 | Status: Approved
• Single storey front and side extension Oaklands Barrow Road Payhembury EX14 3HXRef. No: 22/2430/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• T1, Maple : Remove Bramleys The Orchard Brampford Speke EX5 5HWRef. No: 22/2418/TCA | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Installation of an external fire escape 6 Camperdown Terrace Exmouth EX8 1EJRef. No: 22/2416/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Reserved matters application pursuant to the development of Plot DC9 for a 3,948 sqm warehouse unit (Use Class B8) and associated works together with amendments to existing estate road required to facilitate development pursuant to outline planning permission 17/0532/MOUT. The proposal includes the discharge of conditions 6, 7, 8, 9, 10, 12, 15, 16, 18, 19, 21, 24, 26 and 28 of outline planning permission 17/0532/MOUT. Unit 9 Exeter Logistics Park Werstan Road Clyst Honiton Exeter EX5 2GBRef. No: 22/2422/MRES | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Erection of workshop/store and stable Luscombes Back Lane Newton Poppleford Devon EX10 0EZRef. No: 22/2424/FUL | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Single storey rear extension and single storey side extension and conversion to existing outbuilding for use as ancillary annexe. Metcombe Brake Higher Metcombe Ottery St Mary EX11 1SRRef. No: 22/2417/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Erection of a new purpose-built donkey shelter, improved field access and tracks from the existing yard. Woods Farm Bowd Sidmouth EX10 0JSRef. No: 22/2419/FUL | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Two storey side extension. Yawl Cliff Yawl Hill Lane Uplyme Devon DT7 3XFRef. No: 22/2425/FUL | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Erection of a single storey 3-bed detached dwelling, erection of a two storey 4-bed detached dwelling and demolition of existing semi-detached dwellings. Cedar Cottage Trinity Hill Road Axminster Devon EX13 5SSRef. No: 22/2423/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Erection of a pool house and change of use of land to additional domestic curtilage/garden, associated landscaping and demolition of nissen hut and workshop. Outbuildings And Land Adjoining The Coast House Rousdon Estate Rousdon DT7 3XRRef. No: 22/2412/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Proposed 24 ground mounted PV solar panels, 2 frames of 12 panel to provide energy to Whitley Farm, Whitley Farm Cottage and Dairy Whitley Farm Farway Colyton EX24 6EHRef. No: 22/2404/FUL | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Two storey side extension and demolition of existing single storey 22 Forton Road Exmouth Devon EX8 4NQRef. No: 22/2403/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Construction of a 1-bed dwelling. Land Rear Of St Johns Close High Street Honiton EX14 1PNRef. No: 22/2401/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Permission in principle for 1no. new dwelling Land Adjoining 4 The Green Exmouth EX8 2QRRef. No: 22/2407/PIP | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Certificate of existing lawfulness application to demonstrate the occupation of Turbury Croft in breach of occupancy condition as set out in permission reference 7/56/91/P0243/00182. Turbury Croft Dunkeswell EX14 4QNRef. No: 22/2396/CPE | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Erection of office building to replace existing offices and portable buildings, single storey front extension, single storey side extension, conversion of roof space to habitable use to include 4no. replacement dormers, front roof extension and rear roof extension Stallcombe House Sanctuary Lane Woodbury Devon EX5 1EXRef. No: 22/2393/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Replacement of existing conservatory with widening of existing doors. Robin Cottage Upottery Honiton EX14 9PLRef. No: 22/2391/LBC | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Extension to residential curtilage to include erection of fence and planting of laurel hedge. 97 Ivydale Exmouth EX8 4TARef. No: 22/2397/FUL | Validated: Tue 01 Nov 2022 | Status: Awaiting decision
• Permission in principle for a two storey 4-bed dwelling and garage on amenity land 1 Colliton Cross Broadhembury Honiton EX14 3LQRef. No: 22/2389/PIP | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Creation of charging zone to include erection of EV chargers, erection of canopy, substation enclosure, associated works and demolition of jet wash bay. 223 Exeter Road Exmouth Devon EX8 3DZRef. No: 22/2367/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Alterations (including partial demolition) to outbuilding to provide home office, gym, shower and wc, and construction of storage building. The Cottage Church Road Whimple Devon EX5 2TBRef. No: 22/2360/FUL | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Erection of a two storey 3-bed detached dwelling. Land Adjoining 12 The Copse Exmouth Devon EX8 4EYRef. No: 22/2353/FUL | Validated: Fri 04 Nov 2022 | Status: Awaiting decision
• Single storey rear extension, alterations to fenestration and demolition of existing detached garage. Highfield Kilmington Axminster Devon EX13 7RXRef. No: 22/2240/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Single storey side extensions with alteration to fenestration, Conversion of loft space to habitable use to include a rear dormer and Juliet balcony, roof improvement and enlargement of replacement garage and associated domestic landscaping. Gunnersbury Manor Road Sidmouth EX10 8RRRef. No: 22/2239/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Installation of gate to provide rear access to garden Land Adjoining Withycombe Brook St Johns Road Exmouth EX8 4FARef. No: 22/2231/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Internal alterations to form residential flat at first floor: new plasterboard ceilings in all rooms; new partition wall to convert cupboard into WC; new floating floor in all rooms Seabrease Prospect Place Sidmouth EX10 8ASRef. No: 22/2200/LBC | Validated: Mon 31 Oct 2022 | Status: Awaiting decision
• Replacing area of failed roof, rebuilding of rear lean-to extension, new external insulation to gable ends, internal alterations, alterations to fenestration and new solar panels on adjacent garage. Downhams Cottage Woodbury Salterton EX5 1PQRef. No: 22/2133/LBC | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Replacing area of failed roof, rebuilding of rear lean-to extension, new external insulation to gable ends, alterations to fenestration and new solar panels on adjacent garage. Downhams Cottage Woodbury Salterton EX5 1PQRef. No: 22/2132/FUL | Validated: Wed 02 Nov 2022 | Status: Awaiting decision
• Installation of concrete access steps with metal railings, concrete posts and access gate from road to river bank. Gauging Station Latchmoor Green ThorvertonRef. No: 22/2088/FUL | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Installation of concrete access steps with metal railings, concrete posts and access gate from road to river bank. Gauging Station Latchmoor Green ThorvertonRef. No: 22/2089/LBC | Validated: Thu 03 Nov 2022 | Status: Awaiting decision
• Full planning permission including part retrospective to replace original yard buildings with new light industrial units Station Yard Unit 1 Hele Devon EX5 4PLRef. No: 22/1382/FUL | Validated: Mon 31 Oct 2022 | Status: Awaiting decision

Message from Gaeron Kayley:

A number of residents and the Parish Council spoke fantastically well at today’s planning committee meeting in opposition to the building of 40 apartments at the rear of Clyst Valley Road. We fought this planning application long and hard over the previous fourteen months. There are a number of significant controversial things regarding the development on the car park at Winslade Manor, least of all where the people will now park their cars! 

Following a site visit by 11 Councillors this morning from the Planning Committee they eventually voted 6-5 in favour of the proposals.

I would personally like to thank each and every one of the speakers together with everyone that has contributed to the campaign that we set up back in December 2014. It’s a really disappointing result, I don’t know any more that anyone could possibly have done. 

I thank you for all your support, we have made some fantastic friendships along the way.

Very Best Wishes,

Gaeron Kayley

Owl wants to extend thanks on behalf of the community to Gaeron and his committee for their dedication and commitment in their efforts to hold developers to account.

Developers need to stop running roughshod over the community once they have gained outline planning permission.

We will need more efforts like this in the formulation of the new Local Plan. 

The government has backed down in its fight to keep secret a “lessons learnt” review of the Covid pandemic, thanks to an appeal by openDemocracy to the information watchdog.

Jenna Corderoy www.opendemocracy.net 

It means the Department of Health and Social Care (DHSC) has 35 days to finally make the document public.

The DHSC originally refused openDemocracy’s Freedom of Information request for the review, whose existence was revealed by HuffPost UK last year, claiming that the release of information would be “likely to undermine the safe space for experts and government officials to debate live policy issues”.

We fought the decision for 18 months, complaining to the Information Commissioner’s Office (ICO) in the process. The DHSC eventually changed its mind and agreed to release the information – though in a sign that the department may still try to drag its feet, officials warned the ICO that its publication “requires ministerial approval which is proving difficult to obtain”.

That may be because Britain has had three health secretaries in the space of a few months, with Steve Barclay most recently appointed to the role for his second stint in as many months.

The ‘lessons learnt’ review is thought to be the work of civil servants in the DHSC conducting internal assessments of what went wrong to improve best practice.

Refusing to share it, the DHSC told us last year: “Officials and experts should be able to share their views on such an important matter without fear that such comments will be open to the public later on. On a matter that has affected so many lives it is vital that they are able to express themselves freely.”

The department did not explain its change of heart in the latest correspondence from the ICO, and declined to give a formal comment.

Lib Dem MP Layla Moran, who chairs the all-party parliamentary group on coronavirus, said: “Millions of people across the country have had their lives irreparably altered by the pandemic and deserve to know that the government has learnt the lessons from what went wrong.

“Sunlight is the best disinfectant, and nowhere is that more true than the government’s handling of this pandemic. The government has stalled for long enough in publishing these findings.”

An independent inquiry into the UK’s response to the pandemic is already under way. Officially launched in July, the inquiry will examine how well prepared the UK was for a pandemic, as well as the decisions taken by the UK government once Covid arrived.

Last week, it was reported that the inquiry had asked to see Boris Johnson’s WhatsApp messages during his time as prime minister.

Former health secretary Matt Hancock is very likely to be a witness in the inquiry. He has recently been heavily criticised for his planned appearance in the reality TV show ‘I’m A Celebrity… Get Me Out Of Here!’

Jeremy Hunt is preparing to wield the axe over public spending this week and raise taxes for everybody in an autumn statement that will be long on pain and short on good news. After Liz Truss’s short and catastrophic premiership, the “abacus economics” she despised is back in the ascendancy under Rishi Sunak.

Heather Stewart www.theguardian.com 

The message from the government is that Britain has to live within its means, which Hunt and Sunak say requires action to reduce government borrowing and ensure that the national debt starts to fall as a share of national income.

Failure to do so, they say, will lead to a “black hole” in the public finances that will spook the financial markets and lead to higher borrowing costs for companies and households.

Yet some experts have cautioned that there is nothing inevitable about the new era of austerity Hunt appears to be preparing to usher in, and that there are other ways both of raising money and of keeping the markets sweet.

Is there a black hole?

Many left-of-centre economists challenge the idea of a measurable “black hole” in the public finances, pointing out that its existence is only created by whatever fiscal rules the government has set itself – and that estimates of its size are highly sensitive to economic forecasts.

Economist Jo Michell, a co-author of a paper for the Progressive Economy Forum highlighting the “dangerous fiction” of a fiscal black hole, says the economic backdrop is highly uncertain, making this the wrong moment to draw up concrete plans for spending cuts.

“The sensible thing is to wait and see, for a little bit,” he says. “Things are changing so rapidly: we’re moving into recession, US inflation looks like it may be on the down-slope, gilt yields have come down substantially since the mini-budget and may continue to come down. These are all turning point signals.”

“What we’re seeing is a rush from a £45bn fiscal loosening, with the Truss budget, to a £60bn tightening being floated with the current government,” he adds. “You’re talking about a £100bn swing in fiscal policy, in response to a set of bond market moves that we don’t fully understand.”

Hasn’t the Truss experiment made austerity inevitable?

Proponents of austerity point to the dramatic sell-off in sterling and government bonds, in the aftermath of Kwasi Kwarteng’s tax-cutting mini-budget, as evidence that financial markets are effectively demanding deep spending cuts.

But Michell highlights the technical issues in pension portfolios that amplified the gilts sell-off (prompting the Bank of England to step in).

Other economists have pointed to the wider context of Kwarteng’s statement, including the sacking of the Treasury veteran Tom Scholar as permanent secretary, and Kwarteng’s offhand promise of more tax cuts to come.

Carsten Jung, a senior economist at the Institute for Public Policy Research (IPPR) also warns against learning the wrong lesson from Truss’s mauling at the hands of the markets.

He argues it was fears of surging inflation, as higher government spending fed into demand, that really spooked investors, pushing up bond yields and, in turn, mortgage rates.

“It is portrayed as a fiscal credibility crisis; whereas really it was an expectation that inflation would be higher,” he says, adding that Germany has announced a generous energy support package without being penalised by investors.

Is the government attacking the right target?

Jung is the co-author of an IPPR report setting out the thinktank’s alternative to renewed austerity. The plan – which is conditioned on avoiding rocketing inflation, instead of closing a “black hole” – includes generous spending on helping households through the cost-of-living crisis, and protecting public services from rapid increases in costs.

The IPPR suggests these and other urgent priorities could entail an extra £120bn in spending, much of it temporary. To avoid this short-term splurge exacerbating inflation, they recommend tax increases worth £40bn – which could include reversing the recent cut in national insurance contributions, for example.

Does a doom loop loom?

The former shadow chancellor John McDonnell warns that the current policy mix – with the Bank of England raising interest rates and the government preparing to cut spending – risks exacerbating the economic downturn and leading to a cycle of cuts, weaker growth, a bigger-than-planned deficit, and still more cuts.

“The Bank of England pushing up policy rates, the government introducing austerity – inevitably the result is recession. In technical language, I think it’s barmy,” McDonnell says.

“Even if you accept that there is a gap that needs to be filled, all you need is a relatively mild plan for redistribution, in order to avoid austerity,” he adds. “I think the problem that Sunak and the others have is that they’ve got themselves into an ideological trench, where they’re fighting old wars.”

How about taxing wealth?

Tax Justice UK recently set out proposals for up to £37bn a year in tax increases, as an alternative to what it called “austerity 2.0”.

These included taxing the wealth of the super-rich – anyone with more than £10m in assets – at 1% a year; aligning capital gains tax with income tax, so that unearned income is taxed as heavily as pay; and applying national insurance to investment income.

Or borrowing more?

The political economist and chartered accountant Richard Murphy agrees a wealth tax should be considered, arguing that rich people have the capacity to pay more.

“Alternatively, the government could borrow more. The best way to do this would be by cutting out the financial markets as a middleman. National Savings and Investments already provides the government with £210bn of funding. If interest rates on their products were more competitive they could raise very much more and still lower the overall cost of government borrowing.

“Or, given that austerity is apparently required to keep financial markets happy, the chancellor could call those markets’ bluff and simply say he’ll buy back the bond holding of anyone who is unhappy with the programme of additional spending and investment we need right now using the quantitative easing programme. That would also keep interest rates down.”

I really cannot take any more news about how this winter is going to be. It feels like being at school and told to hold your hands out, palms down. A particularly sadistic teacher would then come and rap us on the knuckles with a ruler. The waiting for the pain was as bad as the pain.

Suzanne Moore www.telegraph.co.uk 

Every day we are told Austerity 2.0 is upon us. Eye-wateringly tough choices are being made. Everyone is going to have less, except the very rich. This induces in most of us a state of powerless anxiety. I panicked and bought an air fryer in which I incinerated a cauliflower as if somehow one kitchen device might make any actual difference to my fuel bills.

More austerity is a political choice, just as the first round of it was. Now, though, it is being presented to us as some kind of inevitability. This is not 2010 though. Yet George Osborne has materialised again advising Hunt on how to strip the very last meat off the bones of many struggling public services. This is repulsive.

Back then, Osborne could at least pretend that belts had to be tightened because of Labour profligacy and not the bank bailout of 2008. It prepared the country in two ways. We were bombarded with messages about strivers and skivers, and endless TV programmes about people on benefits who were somehow a despicable and parasitic underclass. Then, as now, most benefits were for those in low paid work and for pensioners. The divvying up of citizens into the deserving and the undeserving poor is a callous move. I would really rather know about how the undeserving rich are gonna help out here.

But this is not 2010. The Tories cannot blame Labour. We are in this mess (UK GDP fell by 0.6 per cent in September) because of Brexit. We import more than we export and lean on investors’ faith in UK assets. Then there was the insane Truss who had internalised Mark Zuckerberg’s motto “Move fast and break things”. Truss and Kwarteng’s budget imploded, playing havoc with the markets, pushing up interest rates and causing all kinds of chaos that the mere regime at the top of the party cannot sort out.

The public are now being asked again to tighten our belts – but this is not the same public of 10 years ago who will merrily go along with it as Hunt tries to recoup £50 billion primarily from public services.

Again, this is an ideological choice.

Out of all G7 nations we are alone in utilising austerity to stop a recession. While the very poorest are being made even poorer, and the disposable income of the middle classes is reduced, there will be no growth. The NHS is on its knees and the public, far from turning its back on striking nurses or train drivers, has sympathy for them. The current strategy of turning all ire on migrants is but a distraction.

Many of our problems indeed stem from cutting public investment in the first wave of austerity. We didn’t repair school roofs or build flood defences or decent homes.

This new demand, that the public have to pay for the mistakes of our leaders, is not going to be met with sanguine acceptance. The architects of austerity depend on lies and deception, the biggest of which is ‘the household fallacy”. This holds that the government needs to manage its finances like a household and live within its means. Households cannot sustain debt without hearing the knock of the bailiffs. However governments can and do as they can print money, tax the wealthy and hold their debts domestically. In truth, our debt is low in comparison with historical standards and we measure it in a way that does not take into account public investment. If Germany was to use the way we measure our debt, its government debt would be twice as large.

So we are to gloss over the effects of Brexit, the damage done by Truss and 12 years of running down public services and blame everything on what? Ukraine? The pandemic? Ordinary folk are to pay for the mistakes of the Tory Party’s crisis?

It will not wash. Sunak said: “This is a compassionate Conservative government that recognises the pressures people feel. But we’re not going to stop hard choices”. Well, I know a little about compassionate conservatism as once – for my sins – I had to follow William Hague around America so he could find out what it was. He met Kissinger and Bush and we went to schools plastered with brand names. Osborne lurked silently in the background, for he was then Hague’s speechwriter.

Compassion meant only bringing private money into public institutions. There is nothing compassionate about austerity and in terms of what we need to promote growth, nothing even that conservative.

This is discredited and punitive ideology that shows the Tories have run out of ideas and have reverted to the only thing they know how to do: rapping our knuckles, making us poorer, pushing despair while saying there is no alternative. But there is…

Jacob Rees-Mogg is facing questions over whether he will benefit financially from a family trust that is believed to hold land proposed for a new 60-house development in the face of huge local opposition.

Rowena Mason www.theguardian.com 

Rees-Mogg, who spoke in favour of reforming planning laws when a cabinet minister, is not listed as owner of the land adjoining Underhill Farm in Somerset, where developers have applied for planning permission.

However, there is evidence to suggest the land is held in trust for members of the Rees-Mogg family – a structure that may help them minimise inheritance or capital gains tax bills and legally allows its ultimate beneficiaries to remain secret.

The development, part of which is in Rees-Mogg’s own constituency, is being fiercely opposed by people living in the area, with more than 135 objections from neighbours to the plans and opposition from Midsomer Norton town council on the grounds of ecological concerns, traffic and pressure on services.

Curo, the developer, applied for planning permission for the site in July. Since then, neighbours have raised environmental concerns about loss of wildlife, including deer who roam free in the field, and buzzards, as well as worries about overcrowding, traffic pollution, and noise.

Asked whether he had an interest in the trust that holds the land and whether he or a close family member had the potential to benefit from it financially, Rees-Mogg declined three opportunities to comment.

Underhill Farm and the adjoining plot proposed for development are listed separately on the Land Registry as owned by a business manager, Thomas Meadows, who has former links to the Rees-Mogg family companies, and a tax planning lawyer, Richard Cussell.

Rees-Mogg previously applied for planning permission in his own name at Underhill Farm in 2015, even though it was officially listed as being owned by Meadows and Cussell, and there is a house on this plot named Mogg Parlour. Rees-Mogg’s company, Saliston, also bought a bungalow on a road bordering the site in 2019.

Rees-Mogg has declared that he is the beneficiary of a family trust on his register of ministerial interests, although it is not clear whether this is the same trust. He also declares a financial interest in property, land and related farm buildings in Somerset on his register of MPs’ interests.

This is separate from his family home, the £2.9m 17th-century mansion at Gournay Court, his £5m five-storey London townhouse, and at least one more London property believed to be in Pall Mall.

Rees-Mogg’s father, William Rees-Mogg, declared on his House of Lords register that he owned building land at Underhill before his death in 2011.

Rees-Mogg has never commented publicly on the development. However, he has publicly praised the developer, Curo, a social housing association and house builder.

In the Commons in December 2021, while the planning application was already being prepared, Rees-Mogg said Curo did a “really good job”.

He added at the time: “The government are committed to increasing house building. The sheer volume of house building is what ensures that there are houses for everybody. Whether it is social or affordable housing – however it is defined – we need to build more, which is why it was announced in the Queen’s speech that there would be a planning bill.”

Rees-Mogg has several times personally spoken in favour of loosening planning laws and co-written a book about increasing housebuilding. Measures proposed by Liz Truss’s government, in which he was business secretary, included relaxing regulations on planning relating to EU rules, affordable housing, nutrient pollution and biodiversity.

Helen Morgan, the Liberal Democrat spokesperson for housing, said Rees-Mogg should be transparent.

“If Jacob Rees-Mogg has nothing to hide then he has nothing to fear. It is right and proper that the public know whether he is set to profit off this land or not,” she said.

“If he does have an interest, then people will rightly want to question why he, when a minister, pushed for loosening housing laws. Local communities have a right to scrutinise who profits from large housing developments. Rees-Mogg’s constituents have a right to full transparency.”

A spokesperson for Curo said they understood the land proposed for development was held in trust but they had not communicated with the owners. “We are a not-for-profit housing association. Our development arm exists to build desperately needed new social housing in our region. We have been working with the appointed land agent to secure planning permission for new homes; we have never had any discussions regarding this site with the land owners,” the spokesperson said.

In its application, the developer has made the case that it can minimise ecological impact to meet its obligations and that the site meets local need, while making a “positive contribution to the character of the existing surrounding settlement”.

Cussell said he was unable to comment. Meadows did not reply to requests to comment.

The proposed development is in Ston Easton in Mendip council area, which allocated the land in its local plan, but the access road and closest settlement is in Midsomer Norton in Bath and North East Somerset, where more people are objecting to the proposals. Midsomer Norton is Rees-Mogg’s constituency, but Ston Easton is covered by neighbouring Conservative MP James Heappey.

Ston Easton is the village where Rees-Mogg spent much of his childhood living in a manor house, Ston Easton Park, before it had to be sold by his father in the late 1970s.

South West Water has attended a scrutiny committee meeting with East Devon District Council to discuss sewage discharge at Exmouth. 

The meeting on November 2 was attended by lan Burrows, Southwest Water Director of Environmental Liaison and Culture, Exmouth Town Councillors, East Devon District Council Paul Arnott and representatives of ESCAPE Exmouth.  

Adam Manning www.exmouthjournal.co.uk

The scrutiny committee met at the East Devon District Council offices at Blackdown House for a ‘Presentation by South West Water on beach and river water quality followed by questions from Members of the Scrutiny Committee, Members and the public.’ 

Ian Burrows took questions from members of Escape on sewage pollution and discharge following heavy weather at the storm overflow on Exmouth beach and what measures South West Water can take to make residents more aware when a discharge is taking place.  

The company say they are looking into using Event Duration Monitors (EDMs) on 100 per cent of all its overflows. The question of upgrading the sewage treatment plant in Maer Lane and making information on water quality readily available to the public was also discussed. 

ESCAPE’s Geoff Crawford said: “I was pleased to be able to “zoom” in to this EDDC / SWW scrutiny committee meeting. It’s certainly good to see democracy in action and that would not be practical if online zoom meetings were not available. The councillors were knowledgeable and keen to question SWW robustly. They did a good job. Many questions were around the monitoring and reporting of sewage overflows and discharges. SWW admitted that the current reporting system is inadequate and difficult to understand. They committed to installing alert devices (EDMs) to 100% of their CSO overflow pipes by 2023.” 

“SWW committed to a near real time notification of a sewage discharge to the public but could not say when or how that would happen. A lot of emphasis was placed on the reporting of overflows to the public 24/7/365. Now most overflows are not reported to the public and the local message board system only works from May to September despite water sports, swimmer and beach users being year-round. 

After the meeting Councillor Olly Davey said: “I welcome the willingness of SWW to meet with local councils to discuss issues, and the assurances they have given that sewage discharges into the rivers and seas will be reduced in future, but given the pace of development in East Devon, and the years they have had to address these problems, I am not hopeful of an early solution. I also note that there seem to be no plans to end the transport of sludge to the Maer Lane Treatment Works.” 

Councillor Joe Whibley said: “I’m pleased that South West Water have finally managed to explain the situation as they see it but disappointed that, despite admitting when I asked that this is severely damaging to the town’s reputation, feel that adhering to minimum standards and blaming others is sufficient. It isn’t! New infrastructure that safeguards our beaches and waters is needed urgently.” 

A South West Water spokesperson said: “We welcomed the opportunity to meet with East Devon District Council and local residents to discuss a variety of matters including the operation of storm overflows over the summer, tanker movements to and from Exmouth wastewater treatment works, and our plans for the future. 

 “It was a constructive, interactive and engaging discussion around South West Water’s largest environmental investment programme in 15 years, WaterFit, which is now well underway, focused on delivering benefits for customers, communities and the environment. 

 “Through WaterFit we will dramatically reduce our use of storm overflows, reduce and then remove our impact on river water quality by 2030 and maintain our excellent bathing water standards all year round.” 

A survey carried out by the Money and Pensions Service suggests around a million people have less than £100 saved

One in six adults in the South West have no savings.

Oliver Morgan planetradio.co.uk

That’s what research by the impartial financial organisation, the Money and Pensions Service (MaPS), has found, as we now have reached the end of their annual ‘Talk Money Week’.

In their survey, they discovered that almost three quarters of a million people across the South West have no savings and another 300,000 have less than £100, with one in six (16%) have nothing put away and another one in 14 (7%) have £100 or less.

This leaves almost a quarter of adults in the region living without a financial safety net to cope with the rising cost of living or unexpected bills, meaning some may have to use credit.

MaPS says although credit is an important tool when used and managed well, it’s crucial that people understand what they can afford and have a plan to pay it off.

Main takeaways across the South West

• Almost 25% of adults have less than £100 put away in savings
• Almost 50% of people who use a credit product are anxious about how much money they owe
• More than 25% of people are anxious about how many credit products they have
• 4 in 5 people still struggle to talk about money

Among the 74% of people South West who use credit, almost half (47%) are now anxious about how much they owe.

One in four (27%) are worried about the number of different products they have.

As cost of living pressures start to hit home, the MaPS says it’s more important than ever to talk about money before problems set in – but found that 81% of people still avoid discussing their finances.

Asked why, the most common responses were ‘not wanting to be judged’ (24%), ‘fear of burdening others’ (23%) and ‘shame or embarrassment’ (15%).

During Talk Money Week (which was last week), the Money and Pensions Serice encouraged everyone to open up about money, plan for their financial future and take free debt advice as soon as they need it.

Paul Fox, Regional Partnerships Manager for the South West of England at the Money and Pensions Service, said: “The South West has some unique challenges around its economy – especially around leisure, tourism, and retail – that have affected a lot of people, because of the impact of the pandemic, where we weren’t allowed to travel and socialise.

“As a result, quite a lot of people who work, or who have worked, in those sectors over the past couple of years have been impacted quite harshly. This is partly the reason why households across the South West face particular challenges building a resilience against the rising cost of living.

“Without having a savings buffer is very worrying – and an economic shock can appear in many ways. Without the ability to pay that, it could lead to more consequences down the line.

“I understand at the moment, saving can be challenging right now. But a lot of behaviour around money is developed at quite a young age, and in terms of savings, it’s demonstrated ‘small and often’ is a much better way to develop a level of resilience against economic shocks.”

Caroline Siarkiewicz, Chief Executive of the Money and Pensions Service, said: “Over a million people across the South West find it a challenge to save and this leaves them vulnerable when sudden expenditure items arise. When you add in the anxiety that they feel with their credit commitments, the weight of that worry can quickly become overwhelming.

“This Talk Money Week, we want everyone to start the conversation with family or friends and share the burden of any money worries.

“By dealing with the problem head on, people can discover just how helpful free debt advice can be and see the importance of talking to their creditors early. They can also begin to find a way forward, no matter how difficult their situation might feel.

“Free help and guidance on how to do all of this is available via our MoneyHelper service and I’d urge everyone who needs it to get in touch today.”

The organisation says its MoneyHelper service can be people’s first port of call, offering free guidance on topics like everyday money, savings and where to find free debt advice.