Ban bonuses for water firm bosses until sewage spills stopped, urge Lib Dems

Bonuses should be banned for water company bosses until sewage spills into rivers stop, the Liberal Democrats are to demand.

Helena Horton www.theguardian.com 

Executives were awarded £27m in bonuses over the past two years despite pumping out raw sewage into waterways 1,000 times a day, analysis by the party has found.

The former Lib Dem leader Tim Farron is tabling a 10-minute rule bill that will also ask for mandatory targets and timescales for the end of sewage discharges into waterways and coastal areas. It would require quarterly reports on the impact of sewage discharges on the environment, and place a representative of environmental groups on water company boards.

Companies House records show that executives at England’s water and sewage companies were paid £48m in 2020 and 2021, including £27.6m in bonuses, benefits and incentives.

This is despite recent reports from the Environment Agency showing 772,000 sewage dumping events took place in 2020 and 2021 – more than 1,000 a day.

Campaigners have suggested that the money spent on bonuses would be better spent on infrastructure to prevent sewage spills, which can harm wildlife as well as human health.

The party has called for the executives to hand back last year’s bonuses and for funds to be used to clean up sewage spills.

The Lib Dem leader, Ed Davey, said: “The Conservatives are allowing water companies to pump raw sewage into our precious rivers and lakes while awarding themselves obscene bonuses. Just like the millions paid out to bankers during the financial crisis, the public will find this hard to stomach.

“Liberal Democrat plans for a sewage bonus ban would stop water company execs being paid a penny in bonuses more until our waterways are protected from sewage dumps. These bosses should be made to hand back the millions of pounds already received in bonuses to help clean up their mess.

“It’s time to send a message to the Conservatives that they cannot let water company bosses get away with pumping raw sewage into our rivers and beaches any longer.”

The companies with the biggest executive payouts include United Utilities, which was responsible for the most spills over 2020 and 2021, which paid bonuses of nearly £6m. Severn Trent awarded executives £5.5m in bonuses while dumping sewage 120,000 times. Meanwhile, Yorkshire Water, which dumped sewage 135,000 times, handed out bonuses of £3.3m.

This bill is likely to stir up tension among Conservatives. The government was last year forced into a U-turn after Tory MPs voted not to ban sewage spills into rivers. The government later wrote its own legislation putting a legal duty on water companies to prevent sewage spills.

The environment minister Rebecca Pow said: “A holistic approach to cleaning up our rivers is a top priority for Conservatives and we have introduced the strongest measures ever to tackle this and sewage discharges through the Environment Act and the government direction to Ofwat.”

]Tim Farron’s private members Bill introduced under the ten minute rule passed its first reading on Tuesday 19 April: 

“A Bill to provide for mandatory targets and timescales for the ending of sewage discharges into waterways and coastal areas; to make provision about the powers of Ofwat to monitor and enforce compliance with those targets and timescales; to require water companies to publish quarterly reports on the impact of sewage discharges on the natural environment, animal welfare and human health; to require the membership of water company boards to include at least one representative of an environmental group; and for connected purposes.”]

Investigation launched into appointment of sex abuser as alderman

East Devon District Councillors have voted to commission an independent report to investigate the circumstances of how former Councillor John Humphreys was given the honour of being an alderman despite his arrest for sexually abusing two boys.

Colleen Smith www.devonlive.com 

The former Mayor was arrested in May 2016 and finally jailed for 21 years after a long police investigation in 2021. Yet, during the time between arrest and imprisonment, he was still the ‘lead member for Exmouth‘ and bestowed the honour of an alderman in December 2019.

Today (Wednesday 20 April), a motion was approved by councillors at the East Devon District Council (EDDC) Full Council meeting. It said: “That the Council commissions an independent report by the Local Government Association or the Centre for Public Scrutiny or another appropriate independent body to be expeditiously brought to Cabinet to provide a clear understanding how John Humphreys, despite his arrest in May 2016 continued to serve as a Councillor until May 2019, retained his position as ‘Lead Member for Exmouth’ and went on to be bestowed the honour of an alderman by this Council in December 2019.

“In particular the report will focus on the circumstances of how John Humphreys came to be nominated and bestowed the award of an aldermanship despite being under criminal investigation at the time. The Council will put on hold the remainder of the scrutiny recommendations (on the future of appointing alderman and alderwomen) pending the receipt and consideration of the independent report by the Cabinet. EDDC’s Chief Executive will prepare a report for consideration at a future meeting of the council’s Cabinet.”

A powerful letter was read out during a recent East Devon Council meeting from one of John Humphreys’ victims. He said “there are still so many questions to be answered” after addressing the last full council meeting about “decades of pain and trauma” which he claimed was made worse by police inaction.

The victim questioned why Mr Humphreys was allowed to carry on as councillor whilst he was being investigated, a process which began in May 2016.

In his letter read to councillors, the man wrote: “I am one of many victims of John Humphreys crimes and I want members and officers of this council and the public to hear of what I have had to endure for the last 22 years.”

He explained that he was sent from school as a 14-year-old for work experience at Humphreys’ gardening business where he endured multiple sexual assaults between 1999 and 2001.

He told the council that he had first made a statement to police in 2004 but that the case was dropped the following year. He alleges that besides making no progress on the case, the police harassed him.

When the revelations about Jimmy Savile came out after his death in 2011, the victim decided to try again.

He told the council: “I rang up to get the case reopened again in 2012. All I got was a threatening phone call from a Tiverton officer. His near exact words were ‘Humphreys is now mayor. He’s getting on with his life. If you do anything or proceed with this in court, we will come for your friends and family’.

“I made an official complaint about the threats and was asked into Sidmouth police station. They said an apology will be read out. It was handwritten and wasn’t even an apology. I wasn’t given anything in writing that I could take away. When Humphreys’ case came to court this year, not being able to talk about how the police had treated me was my biggest concern. ‘Don’t open this can of worms right now,’ was all that was said to me.

“I just felt like blurting it out, stood in the box, once all the lies were being thrown at me. In 2015, after many more years of mental stress, a knock came on the door of my mum’s house. It was a female police officer. Someone else had come forward. I couldn’t believe it.

“I’d not been believed twice – but the other victim was a lot older than me and maybe more credible, and there was a third and fourth victim, too. But it still took another six years for justice to be done.”

Anyone who may have been affected by anything raised in this article can contact police in their local area by emailing 101@dc.police.uk or calling 101.

The freephone NSPCC helpline 0808 800 5000 is available for anyone to report or seek advice about non-recent abuse. Calls can be made anonymously.

Breaking: Government amendment on PM probe dropped


The government has dropped its amendment to the vote this afternoon and is offering Conservative MPs a free vote on the Labour motion to refer Boris Johnson to the Committee on Privileges.
The government last night proposed an amendment which would have delayed the decision to refer the prime minister to the committee after the Metropolitan Police had finished its investigation and a report by senior civil servant Sue Gray had been published.
But, this morning, they have indicated they have abandoned that amendment.
MPs will now vote on the Labour motion and, if passed, the Committee will definitely be able to investigate the PM as soon as the Met concludes its investigation

Why pictures of Downing Street parties could be smoking gun

Even before the final Sue Gray inquiry is published, the public may feel it already knows the inside story of the Downing Street parties in granular details – from suitcases of wine, to broken swings and DJ sets in the basement.

Jessica Elgot www.theguardian.com 

But given the sheer number of photographs that the Met police have been handed to examine – more than 300 – it is perhaps surprising that more have not found their way into the media.

The Guardian published a photograph taken of the Downing Street garden in May 2020, with Boris and Carrie Johnson sitting in the sunshine with glasses of wine along with aides including Dominic Cummings and Martin Reynolds. Other screengrabs of the No 10 Christmas quiz have been published.

But none has emerged from the most egregious breaches that have been reported, including the summer party where staffers were asked to “bring your own booze” or the leaving parties for staff, including one on the eve of Prince Philip’s funeral.

Some ex-officials who have attended the parties are convinced that the lack of pictures is the key reason why Johnson has been able to successfully spin a version that allows him to convince MPs that he believed that those he attended were work events.

Many of the pictures are understood to have been snapped by Andrew Parsons, Johnson’s official photographer on the No 10 payroll. Some allies of Johnson have used this as a way to explain why the PM remained so convinced he was doing nothing wrong – he was content to allow himself to be photographed.

Those pictures have never been published but are believed to form part of Gray’s inquiry and the evidence she handed to the Met police.

One Tory source said the photographs of Johnson’s birthday gathering in the cabinet room – the only event for which he has been fined – would raise serious doubts about Johnson’s version of events there and would demonstrate it had been a significant celebratory gathering in breach of the rules.

But there are also believed to be a significant number of other photographs taken by aides on their mobile phones at more than a dozen gatherings. The Met police have said they will not release the photographs and it is doubtful whether the final report from Gray’s inquiry will include them.

The existence of the images is one of the key reasons why Johnson will be so keen to block a parliamentary inquiry into his conduct. Separate from the Whitehall and police inquiries, this would look specifically at whether the prime minister purposely misled parliament.

Such an inquiry is highly unlikely because Tory MPs will block it. But in theory the committee could call for papers – including the photographs – and summon witnesses.

It is only the images that could ultimately prove whether Johnson has misled the House of Commons with his version of the events he attended – and his assertions that the guidance was followed at all times.

Post-Brexit funds for West “Derisory”

Today’s Western Morning News:

The amount of ‘levelling up’ money the South West is being given to make up for the loss of European Union funding has been described as “derisory” by a business leader.

Tim Jones, chairman of the South West Business Council, said the sums do not match the amount councils could have expected had Brexit not happened. But he added that it also means the region now has to look to a future where it won’t be able to rely on Government handouts to prop up the economy.

The Shared Prosperity Fund is an allocation for the years 2022/23 to 2024/25 and comes with cash for adult numeracy programme Multiply. Cornwall and the Isles of Scilly will get £129,549,117 from the SPF and £2,452,414 from Multiply, while Mr Jones said Devon’s total is about £15m – far less than the old EU funding the counties could have expected.

Mr Jones said: “It’s disappointing. The amount of money is derisory in terms of what we can do with it.”

However, he added: “But it’s long overdue that we got to this stage, where we are no longer looking to Whitehall to bail us out. We have said on numerous occasions that we need to be weaned off European money.

“The Shared Prosperity Fund has come around the corner and there’s nothing there, so we will have to do things ourselves, we will have to stand on our own feet. It’s a real wake-up call.”

In total, areas across England will receive £1.5bn from the fund.

The Department for Levelling Up, Housing and Communities said: “Bureaucracy will be slashed, and there will be far more discretion over what money is spent on.”

“Operation Red Meat”: who is “In bed with the reds”?

Is it the Archbishop of Canterbury?

Or the BBC?

Or could it be the Conservative Party?

[“Reds under the Bed” was the phrase commonly used by the right wing to question, during the cold war, the allegiance of those on the left or even the centre. It became a knee jerk reaction to alternative views which Boris would have learned to deploy at Oxford].

As Boris Johnson launches one of his classic “special diversionary operations” attacking the Archbishop’s and the BBC’s allegiance, Owl lists some of the articles published on East Devon Watch questioning the wisdom of the relationship the Tories have enjoyed with wealthy Russians.

Boris Johnson ignores Labour call to apologise to Archbishop

BBC News www.bbc.co.uk

Boris Johnson has ignored a Labour call to apologise to the Archbishop of Canterbury over comments the PM made to a private meeting of Tory MPs.

Mr Johnson reportedly told his MPs that senior clergy had been “less vociferous” in their condemnation of Vladimir Putin than of plans to send asylum seekers to Rwanda.

Sir Keir Starmer demanded an apology at Prime Minister’s Questions.

The PM said the Rwanda policy was an attempt to save lives in the Channel.

In his Easter Sunday sermon, Archbishop of Canterbury Justin Welby said the policy of sending some asylum seekers who arrive in the UK illegally to Rwanda cannot “stand the judgment of God”.

Mr Johnson accused “senior members of the clergy” and the BBC of misconstruing the policy in a speech to Tory MPs on Tuesday evening.

The PM was attempting to rally support from his MPs after his Commons apology over being fined by the police for breaking Covid laws.

He suggested, in an aside, that the clergy had been less vociferous in condemning Vladimir Putin, according to No 10 sources.

Mr Welby and the Archbishop of York Stephen Cottrell said in a statement issued by Lambeth Palace that they would continue to to oppose the policy on “moral and ethical grounds”.

The two senior clergymen had denounced the invasion of Ukraine as “an act of great evil” and had called for Russian troops to withdraw, the statement added.

At Prime Minister’s Questions, Sir Keir Starmer accused Mr Johnson of not being sincere in his apology for breaking Covid rules.

As soon as he was off camera, the PM had gone back to “blaming everyone else” he said, adding: “Would the prime minister like to take this opportunity to apologise for slandering the Archbishop and the Church of England?”

Mr Johnson said he was surprised to be attacked over a policy that had been devised to “end the deaths at sea in the Channel as a result of cruel criminal gangs” and had, he claimed, been first devised in 2004 by [then Labour home secretary] David Blunkett.

The pair then clashed over reports that Mr Johnson had criticised the BBC’s coverage of the war in Ukraine in his speech to MPs.

Sir Keir accused the PM of opting to “slander decent people” in private but lacking the “backbone to repeat it in public”.

“Would the prime minister have the guts to say that to the face of (BBC reporters) Clive Myrie, Lyse Doucet and Steve Rosenberg, who have all risked their lives day in, day out on the frontline in Russia and Ukraine uncovering Putin’s barbarism?”

Mr Johnson replied: “I said nothing of the kind and I have the highest admiration as a former journalist for what journalists do. I think they do an outstanding job. I think he should withdraw what he just said – it has absolutely no basis or foundation in truth.”

It must be confusing being a Conservative MP at times

From Guardian PMQs Live: It must be confusing being a Conservative MP at times. Are you supposed to hate the BBC or not? Earlier this year, on day one of what was dubbed “Operation Red Meat”, the No 10 operation to shore up Boris Johnson’s position with a rightwing policy offer for Tory MPs, Nadine Dorries, the culture secretary, said the BBC licence fee was definitely going. A day later she had to soften her position somewhat, after the Treasury insisted the future of the licence fee was just being reviewed. This morning Tory MPs will have read in the Daily Telegraph that Johnson believes the BBC has been soft on Vladimir Putin. At PMQs Johnson insisted that was wrong, and at the end of the session a loyalist backbencher used a point of order to insist that Conservative MPs are in fact great fans of the corporation. 

Here are just a selection of interesting EDW posts on Tories and their Russian connections

“Who now is in bed with the Reds?”

“Swelling the Tory coffers, Russian connections and cosy dinner access”

“ 200 Russian millionaires bought way into UK in seven years since clampdown”

“Boris Johnson’s Conservative Party has received cash from 9 Russian donors named in a suppressed intelligence report”

“Swire his other jobs the controversial Lord and the Russian Oligarch”

Government fraud investigators probe PPE contracts, MPs told

Government fraud investigators are looking into contracts to supply the NHS with PPE during the pandemic, officials at the Department of Health and Social Care (DHSC) have said.

Gavin Cordon www.standard.co.uk 

Giving evidence to the Commons Public Accounts Committee, Jonathan Marron, the director general of the office for health improvement and disparities, said they had “concerns” over 176 contracts worth a total of £3.9 billion.

He said that the actual amount of equipment at issue was worth £2.7 billion – with concerns ranging from the quality of the kit provided to performance of the contractor.

While some may be possible to resolve through mediation and commercial agreement, he said others may require a “more legal process”.

It would be astonishing if this was the only large set of government contracts in which there was no fraud at all

“We are working really, really closely with our internal fraud teams and the broader fraud authorities,” he said.

“That is part of what we are looking at, as to how we might bring resolution to these disputes. All options are on the table.”

The DHSC permanent secretary Sir Chris Wormald said the level of suspected fraud was no higher than with other government contracts.

“It is not unusual to be in dispute on some contracts. Some of them will be resolved entirely amicably, some of them will get to the other end of the spectrum where we believe there has been wrongdoing,” he told the committee.

“Fraud in contracting is a fact of life, regardless of the circumstances. It would be astonishing if this was the only large set of government contracts in which there was no fraud at all.

“What we haven’t seen is this set of contracts being more susceptible to fraud than the average.”

Mr Marron acknowledged that 1.1 billion items of PPE, worth £461 million, supplied during the pandemic had been identified as being unfit for any use.

However he said it represented “quite a small proportion” of the 19.8 billion items used in health and social care to the end of last month.

Tory MPs warned not to allow ‘Owen Paterson-style cover-up’ by blocking Partygate inquiry

Conservative MPs are being warned not to join an “Owen Paterson-style cover-up” by blocking an inquiry into how Boris Johnson misled parliament about the No 10 parties.

Rob Merrick www.independent.co.uk 

A vote on Thursday will seek to send the controversy to the Commons privileges committee, with the power to force the release of reports, documents and photos – and recommend any punishment.

Crucially, the probe would not start until after the police investigation has concluded, to prevent the government arguing it would clash with the Met’s ongoing work.

And it does not accuse Mr Johnson of “deliberately” misleading the Commons – which, under the ministerial code, would require his resignation – again, to make it harder to oppose.

Mr Johnson is expected to order his MPs to defeat the motion, tabled by almost all Opposition parties – and threaten to remove the party whip from any who defy him.

But Labour says it will plaster the names of Tory MPs who block the inquiry across local elections’ leaflets and adverts, warning they will pay the price of standing by the beleaguered prime minister.

It is pointing back to the public anger after last autumn’s “cover-up”, when Mr Johnson attempted to fix anti-sleaze rules to clear his ally Mr Paterson, a former cabinet minister.

“Conservative MPs should reflect on the last time that the government tried to interfere on a privileges investigation, with the Owen Paterson case, and what happened there,” Keir Starmer’s spokesman said.

The motion points to four specific statements by the prime minister which “appear to amount to misleading the House”, which are:

* 1 December 2021 – that “all guidance was followed” in No 10.

* 8 December 2021 – that Mr Johnson had been “repeatedly assured since these allegations emerged that there was no party and that no Covid rules were broken”.

* 8 December 2021 – that he was “sickened” by the video of his former spokeswoman Allegra Stratton joking about a party, but “I have been repeatedly assured that the rules were not broken”.

* 8 December 2021 – that “the guidance was followed and the rules were followed at all times”.

The Opposition parties’ argument is that the privileges committee probe is needed to establish whether the Commons was misled – which is not the role of either the Met police, or Sue Gray’s stalled investigation.

Mr Johnson has effectively conceded that it was, by accepting he broke his own Covid rules, having previously denied that any rules were breached.

Sir Keir said urged Tory MPs to vote in favour of “restoring decency, honesty and integrity into our politics”.

“The British public know that the rules were broken in Downing Street,” he said.

Voting to say otherwise won’t persuade the public that everything was fine but will further damage the reputation of any Conservative MP who is happy to say it was one rule for the public and another for this government.”

Seaton seeks solutions to flooding problems

Severe flooding problems in Seaton will be discussed at a public meeting next week, when residents will talk to representatives of South West Water, the Environment Agency and the county council. 

Philippa Davies www.midweekherald.co.uk

The Seaton Flood Working Group comprises a group of residents and business owners whose properties flooded last October. They are holding a meeting on Tuesday, April 26 at 6.30pm at Seaton Methodist Church, to hear what action is being taken to reduce the flood risk.

On the night of October 20 2021, torrential rain continued for about five hours, and watercourses and drainage systems were unable to cope with the volume of water.  At least 31 homes and businesses were flooded; others escaped the worst of it, but still had flooding to their garages, outbuildings and gardens. 

Flooding in Scalwell Lane, Seaton, October 2021 – Credit: Seaton Flood Working Group

The county council’s report on the flooding showed that Seaton was the second worst affected area in Devon, second only to Axminster. The report said the amount of rainfall ‘led to multiple watercourses overtopping at the allotments on Barnards Hill Lane, adjacent to the cricket club on Valley View and at the junction between Harepath Road and Valley View. The combination of these overtopping watercourses along with surface water runoff from neighbouring roads caused substantial amounts of water to reach lower lying areas of Seaton during peak flows particularly affecting Mead Way, Valley View and Summersby Close where at least five properties, a hospital and a primary school internally flooded by up to 100mm’.

Flooding at a house in Colyford Road, Seaton, October 2021 – Credit: Seaton Flood Working Group

Residents learned the importance of reporting these incidents when they met a customer service team from South West Water who came to Seaton in February. They were told that people who had not reported their flooding problems were ‘effectively invisible’ to both the water company and the county council, and that the Environment Agency also encourages reporting to help improve its flood mapping and modelling. Following this information, many more reports and photos of flooding at homes and businesses were sent to the three organisations. 

Doorway of flooded house in Seaton, October 2021 – Credit: Seaton Flood Working Group

During the meeting on April 26 the working group will hear from representatives of Devon County Council on highways, planning and land drainage issues; from South West Water on surface water and sewerage, and from the Environment Agency on its management of the rivers Axe and Lim’s catchment areas, including natural watercourses, soil erosion and farming-related issues.  

The meeting is open to the public, and people can also email questions relating directly to flooding in Seaton to seatonfloodworkinggroup@btinternet.com, or post them on the group’s Facebook page, to be raised with the three organisations being represented. Seaton Methodist Church has disabled access and audio loop facilities. 

Budleigh Shandford “Care Home” back on sale

A number of correspondents have pointed out that the former Budleigh Salterton care home “Shandford” is back on the market with guide price of £1.1M

Owl received reports from reliable sources that it was purchased by Julie Rhodes of Agency Assistance at the sale by auction in December 2020.

The  guide price at the auction in December 2020 was £750,000. If these two guide price are representative of sale prices. They indicate the owner is seeking a quick profit well in excess of a quarter of a million pounds. 

Two correspondents have raised the questions as to how much money has been received from the December sale, where Abbeyfield were the vendors; and how this money has been “returned to the Town”. They gather that a new “Shandford Trust” (Charity No 1192048) has been created but under whose authority?

The charity commission lists Christopher Haward Davis as Chair of trustees. 

To recapitulate the history of Shandford:

Shandford started as a care home in 1958 for local people funded by the people of Budleigh Salterton. In 2012, the trustees ceded it to Abbeyfield.

The closure is based on Abbeyfield’s declared aim of “freeing up assets” as it changes its business model to concentrate on larger homes; and County Councillor Christine Channon’s handpicked adviser, Chris Davis, who claims that Shandford was no longer viable. Owl understands Chris Davis’ report has never been made public.

A local community effort to take back control, failed despite the intervention of newly elected Simon Jupp MP.

During this process Owl received plausible arguments that showed that there were grounds to challenge the case for non-viability.

Rees-Mogg casts doubt on suitability of privilege committee to investigate Johnson’s conduct

“It’s chaired by a Labour party politician”…“I’d bear that in mind.”

In a signal that the Conservatives will whip their MPs firmly against the motion, the Cabinet Office minister Jacob Rees-Mogg cast doubt on the privilege committee’s suitability to investigate Johnson’s conduct.

He said it was a “distinguished body of the House of Commons but it’s chaired by a Labour party politician”, and added: “I’d bear that in mind.” The committee is always chaired by an opposition politician.

Tories shaping up to repeat last November’s Owen Patterson “vote of shame”? – Owl

Canada bans foreign home buyers for two years

The Canadian government will ban foreign homebuyers for two years, AP reported Monday.

Shawna Chen www.axios.com

Why it matters: Canada’s housing market is one of the hottest in the world, with prices jumping by more than 20% last year, per the CBC.

Details: The ban is aimed at “[c]urbing unfair practices that drive up the price of housing, in order to level the playing field for young and middle-class Canadians,” according to a news release from Trudeau’s office.

  • Some exceptions will be made for permanent residents and foreign students.
  • The government will also impose higher taxes on people who sell their home within a year.

Rents in south west up 18 per cent since 2020

Rents have rocketed by 18 per cent in the south west since the pandemic struck, new data reveals. That’s as high as any other UK region.

Oscar Dayus www.bristolpost.co.uk

The average rent in the south west is now £1,202 per month, according to the New Statesman, citing Rightmove data. Only London, the east of England, and the south east of England had higher average rents.

However, it’s the increase where renters in our region will be feeling the pinch. An 18 per cent rise is the same as Wales and the north west, and more than every other part of the UK.

London actually saw the lowest increase, of five per cent, over the two years. The next lowest was the south east, where rents rose by 12 per cent.

Across the UK, average rents are up 15 per cent in the last two years. The House of Commons committee of public accounts concluded this week that more and more low earners now rent privately; it also pointed out that private renters spend a greater proportion of their income (32 per cent) on housing than anyone else, with homeowners spending 18 per cent and social renters 27 per cent.

The findings come at a time of stagnating wages and rising cost of living. Inflation that includes housing costs (CPIH) was at 6.2 per cent in March, and is expected to rise further this year.

In fact, wages are falling when inflation is taken into account. In the past year, regular pay is down by one per cent after inflation.

Another day, another “apology” whilst trousering £250,000 salary

Speaking at a hearing before MPs, the chief executive and co-founder Hayden Wood apologised for the “way things turned out with Bulb”.

“We have estimated that the costs of all these energy supplier failures is going to cost in excess £2.4bn. That is about £94 per household. And that does not include the cost of the failure of Bulb, which is being treated separately under the special administration regime.”

Are we all being taken for fools? – Owl

Boss of collapsed Bulb Energy criticised for £250,000 salary funded by taxpayers

Jane Clinton www.theguardian.com 

The boss of collapsed company Bulb Energy has been criticised for continuing to draw a £250,000 salary, funded by UK taxpayers.

Once the seventh-biggest energy supplier, Bulb was effectively nationalised in November 2021 after collapsing amid the surge in global energy prices. That left the taxpayer with a potential bill of up to £3bn, making it the biggest state bailout since the collapse of the Royal Bank of Scotland in 2008.

Speaking at a hearing before MPs, the chief executive and co-founder Hayden Wood apologised for the “way things turned out with Bulb”. Bulb was placed into a rare “special administration”, giving it access to government funds to keep it supplying gas and electricity to its 1.7 million household customers.

Wood, who had provided management consultancy to the energy sector before he co-founded Bulb Energy, said: “My salary now in the last year is £250,000 a year.”

He added that the administrators for “both Bulb and Simple [Bulb’s parent company] asked me to stay on to help. The reason I stayed on was because we wanted to support customers [and] have a smooth transition into special administration.

“The things we are doing within the company is to try and minimise costs for consumers, minimise costs for taxpayers, and hopefully effect a sale of the company out of special administration to again reduce costs for government.”

However, the Labour MP Andy McDonald, a member of the business select committee, asked whether it was “morally justifiable” for taxpayers to be paying his £250,000 salary.

Wood responded: “I think everything we are doing right now is to try and complete a sale of the company so that we can minimise the cost to taxpayers and minimise the disruption to consumers.”

But McDonald said it was “staggering” that he was continuing to get paid “the same salary that you were pre-collapse”.

Wood said he had put “all his personal savings since 2015” into the company, which he founded in that same year with Amit Gudka. He said it had been an “extremely challenging time” for the energy market.

Charlotte Nichols, a Labour MP and committee member, quoted the former chief executive of Ofgem, Dermot Nolan, who said “for Bulb to blame anybody but themselves for its collapse is not reasonable”.

Wood said: “I completely agree. We at Bulb should take responsibility for how the business failed.”

He added: “Lessons will need to be learned and I hope that is what we can do.”

McDonald told the Guardian: “It is staggering that the chief executive of Bulb Energy continues to receive a salary of £250,000 a year at the taxpayers’ expense.

“There is no justification for Hayden Wood drawing such an enormous salary, particularly given the disastrous mismanagement of the company, which has led to the government bringing the company into public ownership, and is set to cost of the taxpayer as much as £3bn.

“The secretary of state for business, energy and industrial strategy must step in and put an end to this outrageous case of corporate welfare.”

A BEIS spokesperson said: “Bulb’s administrators have agreed to keep Mr Wood temporarily in place to ensure a smooth handover and sales process.

“Mr Wood is paid for this work under his employment contract with Simple Energy, the parent company of Bulb, in a separate administration process over which the government has no influence.

“The special administrator of Bulb remains legally obligated to keep costs of the administration process as low as possible. The government will seek to recoup costs at a later date, ensuring that we get maximum value for money for taxpayers.”

“It did not occur to me then or subsequently that a gathering in the cabinet room, just before a vital meeting on Covid strategy, could amount to a breach of the rules. That was my mistake and I apologise for it unreservedly,” Boris Johnson

Tory PPE waste cost every household £310, shocking analysis reveals

The amount of public money wasted on unused and faulty PPE during the pandemic cost every household in the UK more than £310, new analysis has revealed.

By Redrow www.thelondoneconomic.com 

In February, the government finally admitted that it had splurged a staggering £8.7 billion on overpriced protective equipment.

And Labour this week revealed that ministers are set to spend another £35 million paying private firms to burn or recycle surplus masks, aprons and gloves – with the government claiming it is cheaper to recycle PPE than store it.

The eye-watering total comes to £310 for every household in the UK, just as a cost-of-living crisis batters Brits.

‘Culture of cronyism’

Labour’s Angela Rayner accused the Tories of wasting “billions of pounds of taxpayers’ money on useless PPE that they’re now either burning or giving away for virtually nothing.”

She told the Mirror: “The Government might not need to raise taxes on working people in the middle of a cost-of-living crisis if they didn’t waste this much PPE.

“Ministers have a duty to get value and results when spending the public’s money, but Boris Johnson has created a culture of cronyism and waste throughout his government.”

A Department of Health and Social Care spokesperson said: “Our priority throughout the pandemic has been saving lives, and we have delivered over 19.1 billion items of PPE to frontline staff to keep them safe.”

They added: “Having too much PPE was preferable to having too little in the face of an unpredictable and dangerous virus, given this was essential to keep our NHS open and protect as many people as possible.

“Now we are confident we have sufficient PPE to cover any future Covid demands, we are taking decisive action to save up to £93 million of taxpayers’ money per year by reducing storage costs for excess stock.”

Planning applications validated by EDDC for week beginning 4 April

‘Perfect storm’ of Covid and staff shortages leaves care homes unable to take hospital discharges

A “perfect storm” of Covid and staff shortages has left social care unable to take a surge of patients, it has been warned.

Rebecca Thomas www.independent.co.uk

Care home leaders said residential homes may not be able to handle the usual influx of patients from hospitals during the Easter bank holiday weekend as “chronic” shortages, which hit a high in March, force providers to close beds.

Recent data published by Skills for Care showed vacancy rates across care services hit 10 per cent in March 2022, compared to 5.9 per cent in 2021.

The figures, commissioned by the Department of Health and Social Care, represent the highest level recorded since the beginning of last year.

It comes as figures published on Thursday revealed A&E waits and ambulance delays in March were the worst they’ve ever been.

More than 390,000 people with potentially life-threatening conditions, including suspected strokes, waited more than an hour for an ambulance.

One in 10 patients waited more than two hours for an ambulance which should come within 18 minutes.

According to a letter, reported by The Health Service Journal, hospital trusts were warned of escalating pressures in the northwest and were told 1,700 care home beds locally had been closed due to staffing and Covid pressures.

In an interview with The Independent, Martin Green, chief executive for Care England, said his members were reporting “chronic staff shortages” made worse by more workers testing positive for Omicron in rent weeks.

He said care homes have not been able to deal with the influx of patients from hospitals which usually occurs ahead of a bank holiday.

Mr Green explained: “Hospitals make a decision to empty themselves, whether it be the bank holidays, Christmas, and that at a time when it’s also difficult for us to maintain staffing levels.

“Occupancy levels are much, much lower than they would be normally – they’re hovering around about 88 to 90 per cent but would normally be in the high 90s, which has had an impact on the viability of homes. Some not only reduced the number of beds that they’re opening, because of issues around Omicron because they cannot get the staff.”

He said one care home in Buckinghamshire recently had to reduce its capacity by 10 beds due to staffing problems.

In addition to staff absences, the Care England chief said current legislation is forcing homes to implement certain infection control measures which are leading to less beds and is costing homes up to £1m.

Councillor Louise Gittins said in an interview with The Independent that social care was already suffering from “massive” staffing shortages as recruitment was becoming more difficult, with one provider losing 100 staff since December.

She said the bank holiday will worsen these pressures, adding: “What will happen with the bank holiday, it will put pressures on things such as pharmacies not necessarily being open and where people aren’t about because of the bank holiday.

“It feels like the perfect storm at the moment. We’ve got high Covid rates, which is putting pressures on staff, in terms of absences.”

Responding to the NHS performance figures on Thursday, Chris Hopson, chief executive for NHS Providers, said hospitals were dealing with the “most sustained difficult and pressured period of time they can remember”.

He said: “We need to be honest about the four long-term fault lines which have built up over the last decade, exacerbated by Covid. Between 2010 and 2020, the NHS went through the longest and deepest financial squeeze in its history.

“It was therefore unable to grow capacity to match growing demand, leaving a significant capacity shortfall.

“Huge workforce shortages have built up, with 110,000 vacancies and only 27 per cent of staff saying their organisation has sufficient staff to do their job properly. And the government has consistently failed to solve problems in social care.

“Until these fault lines are properly addressed, the NHS is going to remain under real pressure.”

Michael Gove to axe S106 agreements?

Levelling Up Secretary set to axe rules forcing developers to build “affordable” homes, in favour of a new levy for councils.

Where would this leave the Community Infrastructure Levy (CIL)? – Owl

By Ben Gartside www.telegraph.co.uk 

Michael Gove is poised to hit property developers with a £7bn levy that could pave the way for a massive expansion of new council housing.

The Levelling Up Secretary is preparing to axe rules which force companies to build a set number of “affordable” homes on their developments themselves, and will order them to pay into an infrastructure fund instead that can be used by councils for their own projects.

Mr Gove has held talks with industry about the proposals, and executives are preparing for them to be included in the Queen’s Speech next month if approved by Cabinet.

A formal consultation could be launched within weeks.

Developers expect the new levy to raise around £7bn if it goes ahead, assuming it costs the same as they spend under existing affordable housing rules.

It is not clear if councils will be able to use the money however they see fit, or if they will be required to earmark it for projects such as homes, roads, schools and GP surgeries.

However, large amounts of money are likely to be funnelled into local authority schemes to tackle the housing crisis. This could include an increase in the building of homes owned by councils, industry insiders said, or sold to residents through council-run developers known as Housing Delivery Vehicles.

The proposals have been met with consternation from developers. One executive said that while the move is designed to simplify planning, it may have the opposite effect. 

They said: “While the current system can be arduous and there have been complaints around efficiency, it ensures infrastructure is built and doesn’t create issues about cash flow, and means infrastructure can be built in advance of a development. 

“It also means communities neighbouring the development won’t necessarily feel a direct benefit – there is no obligation for councils to create infrastructure, or for it to be built in the same area.”

The proposals involve axing Section 106 of the 1990 Planning Act, which allows councils to order developers to build infrastructure in return for permission to start work on new estates.

This typically includes a requirement for a certain number of affordable homes, which can be run by social housing groups, sold through a shared ownership scheme or simply offered for sale or rent at a below-market rate.

The National Planning Policy Framework states that 10pc of homes should be affordable on major developments, and 52,100 such properties were built in 2020-21.

Section 106 has long been criticised as an unwieldy and bureaucratic imposition on developers that holds up projects.

Mr Gove is now proposing to scrap it and replace the system with a “consolidated infrastructure levy”, which would charge developers a fee set as a proportion of the value of their housing project. This money would then be spent by councils themselves.

Council housing boomed in the postwar years before a massive sell-off driven by Margaret Thatcher’s right to buy policy.

Only 3,370 local authority properties were built in the UK in 2019-20, down from almost 195,00 in 1969-70.

However, there are signs of a renaissance with new projects started by London councils reaching a four-decade high last year.

One property investor said that Mr Gove’s plan risks leading to a rise in “s——y quality” council housing. They added that the overall number of properties built is likely to be lower than under current rules because developers can move more quickly than the Government.

The idea for scrapping section 106 was initially touted by Mr Gove’s predecessor Robert Jenrick in 2020 as part of a white paper that was subsequently dropped. 

Conservative MPs have become increasingly frustrated with the delays around Section 106 agreements, and have encouraged Mr Gove to rework the policy. 

In a letter last year, leading property industry figures including the heads of the British Property Federation and the Home Builders’ Federation warned against introducing an infrastructure levy.

Jules Pipe, London’s deputy mayor for planning, also signed the letter in a move that suggests the proposals risk sparking a backlash from some local authorities which would rather force developers to bankroll specific projects themselves.

The letter, written to Mr Gove at the time of his appointment to Housing Secretary, asked him to improve the existing system rather than scrap it.

It said: “In our view the most effective approach to enabling the delivery of affordable housing, infrastructure and sustainable development, is to improve existing approaches to securing contributions to meet policy requirements set by development plans.”

The Department for Levelling Up declined to comment.