Chippenham magistrates have approved an application from Devon and Cornwall police to investigate four South West MPs, and their own boss – Police and Crime Commissioner Alison Hernandez, who had been a Tory general election agent in May last year.

The MPs include North Cornwall’s Scott Mann and Camborne and Redruth’s George Eustice. Election law says that any allegation relating to campaign expenses must normally be investigated within 12 months. But police did not receive any formal complaints until a few weeks ago, following national media coverage of the issue. Detectives now have a further year to decide what to do.

A police statement said: “Representatives from Devon and Cornwall Police have attended Chippenham Magistrates Court on Thursday 19th May. This was to seek an extension to allow further time to investigate allegations relating to improper electoral campaign spending returns in Devon and Cornwall, during the 2015 general election. These extensions have been granted and police investigations are now underway.”

Ministers transferred back-office functions – human resources, payroll and accounts – to the private sector two-and-a-half years ago in a plan which was supposed to “radically improve efficiency across departments”.

At the time, the cabinet minister Francis Maude said: “There is absolutely no need for departments and arm’s-length bodies to have their own back-office functions, and duplicate efforts, when they can be delivered more efficiently by sharing services and expertise. Plus it will save the taxpayer half a billion pounds a year.”

The National Audit Office has examined the “shared services” initiative and found that instead of saving at least £128m a year, it has saved £90m – £4m less than it has cost.

In a highly critical report, auditors said that delays in its roll-out mean that costs will continue to rise.

Confidence in the entire project “is now low”, the NAO found, with further costs also incurred in drawing up contingency measures and dealing with the fact delays have already rendered some elements of the new system out of date.

Auditors said the Cabinet Office “did not act in a timely and effective manner” because it “did not see this as its role” and had “only recently taken a more active approach to dealing with the issues that have been raised”.

Tom Watson, Labour’s deputy leader, said: “It’s shocking the Cabinet Office has failed to convince other government departments to adopt a programme that was supposed to deliver significant savings for the taxpayer.

“This comes after repeated warning from the NAO and the public accounts committee that the programme was not working. It’s yet another failure from the prime minister’s own department.”

Public and Commercial Services union general secretary Mark Serwotka said: “This is an all-too-familiar story of Tory ministers cutting and privatising, only to find they have wasted money and damaged services.

“We opposed the privatisation of shared services because we did not believe it would deliver the savings that were promised and we have been proved right.”

The 2013 civil service reform plan introduced by Maude saw the creation of two shared services centres which would handle human resources, payroll and accounts for up to 14 departments and their arm’s-length bodies.

The Cabinet Office signed contracts with two private sector companies – Arvato UK and Steria – to operate the centres.

Auditors found there were initial weaknesses in the programme and these were exacerbated by the Cabinet Office’s failure to take control of the project.

While recent governance and leadership changes had been welcomed by departments and the two private suppliers involved, the NAO warned that “previous efforts in this area have not produced results”.

It said: “The government has repeatedly failed to learn the lessons from its experiences of shared services.” However, it acknowledged that blame lay also with contractors Steria and Arvato UK.

The scale of the problems was underlined when an arm of the Department for Business Innovation and Skills pulled out of its contract arguing it was “no longer viable”.

The Cabinet Office has redrawn its projections and is now hoping for major savings. A departmental spokesman said: “As the report states, the Independent Shared Service Centres have already saved £90m, and are forecast to make a further £504m in savings for the government and police by 2023/24.

Under the starter homes initiative, the government plans to relax planning restrictions to encourage developers in England to build properties that will be sold at a 20% discount on their market rate to first-time buyers under the age of 40. In March 2015, it said it wanted to deliver 200,000 of these new homes by 2020, alongside 135,000 shared ownership properties.

The scheme has been controversial because it allows developers to replace homes built for affordable renting with homes costing up to £250,000 outside London and £450,000 in the capital, and for buyers to sell them on later at the open market rate.

AdvertisementHide
In its response to Mortgage lenders have warned that the government’s target of delivering 200,000 discounted first-time buyer homes by the end of this parliament is “too ambitious” and that the scheme could contribute to making the property market more unstable.

Under the starter homes initiative, the government plans to relax planning restrictions to encourage developers in England to build properties that will be sold at a 20% discount on their market rate to first-time buyers under the age of 40. In March 2015, it said it wanted to deliver 200,000 of these new homes by 2020, alongside 135,000 shared ownership properties.

The scheme has been controversial because it allows developers to replace homes built for affordable renting with homes costing up to £250,000 outside London and £450,000 in the capital, and for buyers to sell them on later at the open market rate.

In its response to the government’s technical consultation to the scheme, the Council of Mortgage Lenders (CML) said that if targets for starter homes and shared ownership properties were to be met, they would amount to 112,000 homes a year being built over the next three years – more than three-quarters of the total number of properties it was expecting to be delivered.

“We believe that it is highly unlikely that such a target could be achieved,” the CML said.

It said if targets for shared ownership and starter homes were both achieved, it would have a significant impact on the housing market. If buyers were only able to sell on properties at the discounted rate, this could affect their ability to move up the housing ladder, the CML said.

“To a large extent, the success of the scheme will depend on the ability of first-time buyers to build enough housing equity in a starter home to move up the property ladder. That will require property prices to be sustainable over the long term.”

Conversely, allowing them to sell them on quickly at the full market rate would also cause problems.

The CML said that to minimise the effect and to target those who most needed help, there should be a period of up to 10 years in which the property could not be sold on at full market value, with the discount tapering after the first three years.

“This would help avoid the potential for disruption to the market caused by buyers gaining a rapid uplift in equity in their homes, and wanting to sell their property to benefit from it.”

It added that banks and building societies that make up its membership had mixed views on how the discount scheme would work alongside other government initiatives such as the help-to buy-loan scheme, and that some firms may choose not to lend on starter homes if buyers were allowed to combine government incentives on one purchase.

“One concern is that this makes it more complicated for borrowers to understand the transaction and what their equitable interest and obligations are in the property. Some lenders believe this would make lending more risky,” it said.

“Firms are also concerned that the potential to combine incentives could deliver a larger increase in the value of the property over a relatively short period. That could boost demand and contribute to instability in property prices.”

The House of Lords recently voted for an amendment to the housing and planning bill, which would have seen the original discount reduced over 20 years. However, the Housing and Planning Act says only that the homes are “subject to any restrictions on sale or letting specified in regulations made by the secretary of state”.the government’s technical consultation to the scheme, the Council of Mortgage Lenders (CML) said that if targets for starter homes and shared ownership properties were to be met, they would amount to 112,000 homes a year being built over the next three years – more than three-quarters of the total number of properties it was expecting to be delivered.

“We believe that it is highly unlikely that such a target could be achieved,” the CML said.

It said if targets for shared ownership and starter homes were both achieved, it would have a significant impact on the housing market. If buyers were only able to sell on properties at the discounted rate, this could affect their ability to move up the housing ladder, the CML said.

“To a large extent, the success of the scheme will depend on the ability of first-time buyers to build enough housing equity in a starter home to move up the property ladder. That will require property prices to be sustainable over the long term.”

Conversely, allowing them to sell them on quickly at the full market rate would also cause problems.

The CML said that to minimise the effect and to target those who most needed help, there should be a period of up to 10 years in which the property could not be sold on at full market value, with the discount tapering after the first three years.

“This would help avoid the potential for disruption to the market caused by buyers gaining a rapid uplift in equity in their homes, and wanting to sell their property to benefit from it.”

It added that banks and building societies that make up its membership had mixed views on how the discount scheme would work alongside other government initiatives such as the help-to buy-loan scheme, and that some firms may choose not to lend on starter homes if buyers were allowed to combine government incentives on one purchase.

“One concern is that this makes it more complicated for borrowers to understand the transaction and what their equitable interest and obligations are in the property. Some lenders believe this would make lending more risky,” it said.

“Firms are also concerned that the potential to combine incentives could deliver a larger increase in the value of the property over a relatively short period. That could boost demand and contribute to instability in property prices.”

The Office for Nuclear Regulation announced on 13 May that it is “engaged” with the ASN (Autorité de Sûreté Nucléaire) and EDF “concerning the reports of anomalies and inconsistencies in quality documentation”.

Earlier this month, the ASN said an ongoing quality audit at the Le Creusot forge – which Areva bought in 2006 – had identified “irregularities” in paperwork on some 400 plant components produced there since 1965.

The issues “comprise inconsistencies, modifications or omissions in the production files, concerning manufacturing parameters and test results”. About 50 of these parts are thought to be in service at French nuclear power plants, according to Areva.

The ASN asked Areva to provide a list of the parts concerned as soon as possible, “along with its assessment of the consequences for the safety of the facilities, jointly with the licensees concerned”. Areva said in early May, “At this preliminary stage, no information has come to light that would jeopardize the mechanical integrity of the parts.”
The ONR said, “Areva is in the process of completing the characterization of these historical irregularities and their consequences, and has committed to contact affected foreign customers by 31 May”.

The British regulator added, “We will await the conclusion of the Areva review before deciding whether there is a need for any specific intervention in the UK.”

The ONR said it believes the irregulaties in paperwork occurred before any procurement of forged parts for the two EPR reactors planned for Hinkley Point C.

However, it noted that the Sizewell B reactor is the only one in the UK that has a small number of reactor components supplied by the Areva facility. The 1198 MWe plant, which started up in 1995, is currently the UK’s only operating pressurized water reactor.

“This reactor is currently shut down for its scheduled outage and we will be seeking the necessary assurances for the reactor components before we permission the restart of the Sizewell B reactor,” the ONR said.

Areva’s Creusot Forge and Creusot Mécanique subsidiaries are specialized in the supply of big forgings and castings destined mainly for the nuclear industry. Creusot Forge is one of a few facilities that can produce the heavy nuclear-grade forgings required for large components such as steam generators, reactor pressure vessels and primary pumps. Creusot Mécanique, meanwhile, carries out precision finish machining on large components.

The upper and bottom heads of the reactor pressure vessel for the EPR under construction as Flamanville 3 EPR were manufactured at the Le Creusot facility in September 2006 and January 2007, respectively. A high carbon content in those parts prompted Areva to review the company’s quality process in 2015.”

More than 25,000 took part in the referendum about the Conservative only Cabinet on West Dorset District Council. Nearly 16,534 of them — a majority of nearly two to one — voted to scrap the Cabinet in favour of a decision making group made up of a mix of parties.

But the council says the changes won’t happen until May 2017, a year after the vote. Cllr. Kelvin Clayton, chairman of South and West Dorset Green Party, says this delay is “a slap in the face” for grass roots democracy.

Kelvin, a Bridport Town councillor, said: “You could send a manned space mission to Mars in less time than West Dorset councillors say it will take to rearrange the seating around their Cabinet table.

“People voted by a big majority to replace this unpopular single party Cabinet with a wider range of voices and opinions. So why don‘t they get on with it?

“I call on the Leader of the Council to explain why this implementation will take so long“.

The referendum was triggered by a petition from the non-political Public First Group. The council’s website says the cost of having to stage a vote is “regrettable”.

But Kelvin said: “Public First should be congratulated not criticised. If the council had listened to them in the first place this wouldn’t have gone to a vote. Local politics only works if local people feel they have a real say in the issues affecting their neighbourhoods. The latest decision to ignore the verdict of the referendum for the next 12 months is an insult to the 25,000 people who took the time and trouble to take part.”

The Green Party locally opposes Cabinet style government on West Dorset District and Dorset County Councils because it excludes other parties from real decision making and makes it harder for councillors from a mix of backgrounds and views working together for the common good.

Kelvin added: “How on earth can West Dorset Council’s leaders claim they want to listen to people when they behave like this. Some of the Cabinet appear to be living in the 19th. century. The rest of us are living in the 21st. It would be nice if they could join us.”

In a letter to the Business Secretary, the Institute of Chartered Accountants in England and Wales (ICAEW) attacks ministers for having “no clear consensus” on how to boost growth and raise living standards.

It cautions Sajid Javid that the Government’s preoccupation with the referendum is causing ministers to neglect a pledge in the Budget to encourage investment and lift productivity. A lack of Government support meant businesses were more reluctant to make spending decisions, it says.

The warning comes as Britain’s biggest lobby group, the CBI, downgraded growth forecasts and data showed UK firms’ profits falling to the lowest level since the financial crisis.”

Nigel Rabbitts, chairman of the Devon and Cornwall Police Federation, which represents rank and file police officers, said the former Torbay councillor should not commence her duties until the investigation is complete.

Ms Hernandez was due to be sworn into the role of Devon and Cornwall PCC today, Tuesday. She was elected by a public vote on Thursday last week.

The expenses row centres on her role in submitting expenses for Conservative MP Kevin Foster at the 2015 General Election. She was Mr Foster’s agent during the campaign.

Ms Hernandez has denied doing anything wrong.

It was announced on Monday that another police force will be asked to investigate any claims about improper electoral spending.

Nigel Rabbitts said the position of the federation was that if anyone was subject to an investigation the rules should be the same as for a police officer.”

Voters were initially turned away from all 155 polling stations in the borough because their names were missing from the poll list.

An independent investigation has been launched, the council said.
In a statement issued through the council, Mr Travers said: “I have enjoyed my time at Barnet and I believe the changes we have put in place and the continued programme of growth and transformation will enable the borough to continue to thrive.”

The chief executive of Barnet Council has left his role after a blunder led to some voters being turned away from polling stations on Thursday.

Andrew Travers left the authority by “mutual agreement” after the error, officials said.

Voters were initially turned away from all 155 polling stations in the borough because their names were missing from the poll list.

An independent investigation has been launched, the council said.
In a statement issued through the council, Mr Travers said: “I have enjoyed my time at Barnet and I believe the changes we have put in place and the continued programme of growth and transformation will enable the borough to continue to thrive.”

A council spokesperson said Mr Travers had “made a valuable contribution to the council during his three and half years as chief executive.”

Deputy chief executive John Hooton will take over temporarily while longer term arrangements are put in place, the council said.

On election day, staff at one station said just three of the first 30 voters to show up were on the register. The rest were told to come back later.
Barnet Council apologised for the problems and later offered emergency proxy votes to residents who had been affected.

But voters in the area questioned how the result could be “fair” when not everyone was able to have their say at the ballot box.

A statement released by Mr Travers on Thursday blamed electoral registration lists for the problems.

The council’s review will conclude by the end of May and the findings will be presented publicly to the General Functions Committee.

It will look at the “appropriateness” of arrangements in place for the EU Referendum in June.