Readers will recall that Devon County Council Leader, John Hart’s solution to flooding, is to encourage a modern day dad’s army of individuals, villages and Parish Councils, where they care, to do more for themselves. Self-help, he said, is going to be the order of the day.

Is he  “off message” with his Conservative Party Leadership? 

The government is to double spending on flood defences in this week’s budget after recent storms caused havoc across the country and drove thousands from their homes., according to:

Toby Helm Political Editor  www.theguardian.com

The government is to double spending on flood defences in this week’s budget after recent storms caused havoc across the country and drove thousands from their homes.

The chancellor, Rishi Sunak, will announce an increase from £2.6bn to £5.2bn in spending on flood defences between 2015 and 2021. He will tell MPs that the money will give protection to 336,000 homes in England and allow 2,000 new flood and coastal defence schemes to be built.

The announcement will be a centre-piece of Sunak’s first budget, which he is determined will focus not only on measures to combat the spread of coronavirus but also on national infrastructure to reduce risk of flooding in England by 11% by 2027.

This follows grave warnings from scientists who have demanded far greater investment and Boris Johnson’s aim to “level up” the country.

Ministers said the extra spending would reduce the needed planning for future disasters, and warned that extreme weather would become far more regular. Last month Storm Ciara and Storm Dennis swept across the country bringing rain and wind gusts of up to 97mph and triggering more than 190 flood alerts.

More than 500 properties were flooded and about 25,000 homes left without power. A week later Storm Jorge followed, which in some areas caused more than a month’s rain to fall within 24 hours.

But Sunak – who is expected to delay announcing a far wider national infrastructure strategy until the summer or autumn – is coming under intense pressure to spend much more on the environment and the climate emergency to ensure the UK meets its climate targets.

On Sunday, on the eve of the budget, the Institute for Public Policy Research thinktank publishes analysis showing an additional £33bn a year must be spent on measures to tackle the climate crisis if it is to meet its target of cutting carbon emissions to zero by 2050. Investment in low-carbon transport alone – including more infrastructure for charging electric vehicles, improved railways and better facilities for cyclists – would have to rise by £12bn a year, and spending on low-carbon homes and other buildings would need to be increased by £10bn annually.

The huge sums would not only help tackle climate change but would also deliver an economic boost and help Johnson deliver on his ambition to “level up” the country, IPPR says.

Last summer the Tory government signed into law a commitment requiring the UK to bring all greenhouse-gas emissions to net zero, replacing the previous pledge to reduce them by at least 80% compared with 1990 levels.

Former Labour leader Ed Miliband, a co-chair of IPPR’s Environmental Justice Commission, said the budget needed to put climate change at its heart.

“This will take investment, but making these decisions will create hundreds of thousands of jobs, improve our natural environment, cut air pollution and make Britain a better place to live. It makes economic and environmental sense. The time to act is now.”

In order to hit net zero within 30 years, the UK will need to be running on renewable energy with industry using mostly carbon-free processes. All homes and other buildings will have to be fully insulated and public transport will need to be greener, and more efficient.

Currently the government spends around £17bn a year on measures related to the climate and environment which, the study shows, would not even be sufficient for the government to meet its previous target of an 80% reduction in greenhouse-gas emissions by 2050. IPPR calculates that it would need to spend an additional £11bn just to meet that previous target.

A £2.55million budget has been agreed to revamp an ‘inadequate’ road past Exeter Airport – so a major new business park boasting 1,000 jobs can be built.

East Devon District Council’s (EDDC) cabinet agreed the move on Wednesday – just hours before the collapse of Flybe was announced.

Oops! A spectacular piece of mis-timing by Ingham’s regime (a few hours is a long time in politics). Never mind, the Council Tax payers are always the funders of last resort.

About Author Daniel Clark  eastdevonnews.co.uk 

A £2.55million budget has been agreed to revamp an ‘inadequate’ road past Exeter Airport – so a major new business park boasting 1,000 jobs can be built. 

East Devon District Council’s (EDDC) cabinet agreed the move on Wednesday – just hours before the collapse of Flybe was announced.

The scheme will see ‘unfit-for-purpose’ Long Lane – which links the airport and the Hampton by Hilton hotel – widened and improved.

This will enable plans for a new ‘Airpark’, one of the four planned ‘Enterprise Zones’, to progress.

Questions were raised over the uncertainty surrounding Flybe during the cabinet meeting, but members signed-off the budget. The airline went into administration early on Thursday.

EDDC deputy chief executive Richard Cohen said the Long Lane project was not an investment in Flybe or Exeter Airport.

He added that the scheme would put infrastructure in place to allow the Airpark to be developed – creating new jobs and helping the economy.

Work on the East Devon and Exeter employment hub could begin early next year.

Long Lane’s improvements includes a T-junction at the airport’s Car Park One. The carriageway between this site and the Hampton by Hilton hotel will be widened to 6.5m, allowing for a footway.

While this work takes place, a new road connecting Silverdown Office Park and the Flybe Academy site access road – known as the ‘Silverdown Link’ – will be created.

This will become a permanent bus- and cycle-only link when the Long Lane improvements are finished.

Public cash from the Enterprise Zone programme will fund the scheme.

The Long Lane initiative had initially been approved by EDDC last summer, but the authority had to revisit the budget as tenders for the work revealed another £950,000 was needed.

Project director Andy Wood told councillors: “This road scheme will unlock the delivery of new jobs in the district and the Silverdown Link will be retained as a bus and cycleway, so will facilitate the expansion of the bus service that serves the airport terminal.”

But Mr Wood said that the threat of Flybe’s collapse ‘reinforced the need to press ahead’ with the project, adding: “The Airpark site cannot come forward until the road is improved and that will bring 1,000 jobs and new businesses that are not related to Flybe or the airport at all.

“A lot of the current trade for the hotel relies on Flybe, so having better access will help them recover if the worst happens. No development can happen at the site until the road is widened.”

Councillor Paul Hayward had questioned whether a decision should be deferred in light of Flybe’s problems.

He added: “To consider a £2.5million budget with all the uncertainty is ludicrous.

“It should be deferred so we know what will happen and if Flybe can survive.

“How can you consider the £2.5m investment in a road that may be a road to nowhere?”

Cllr Geoff Jung said: “This is investing in the new road to open up an industrial area for 1,000 jobs, so maybe now is the time to invest in the area to provide further jobs or replacement jobs.

“We should send out a message that the area and the airport has our full backing.”

Cllr Kevin Blakey, portfolio holder for the economy, said ‘Flybe is not the Airport’, adding: “If there is a chance to allow the airport to evolve its operations, then now is when we should be investing and getting the groundworks done so development can take place.

“We should press on and get the roads built as soon as possible.

“The airport will evolve and we have to be ready for it.”

A report to cabinet members said: “The works will help to create a public transport loop and cycleway which will serve a major employment area.

It added of Long Lane’s current state: “When travelling in an easterly direction, the lane quickly narrows to below the standard (6.5m) needed to accommodate the two-way flow of HGV traffic.

“This includes substantial stretches of single carriageway. The inadequate nature of the current highway is a major barrier to bringing forward the Airpark Enterprise Zone site.

“The enhancement of Long Lane is an important project which, in addition to unlocking the Airpark Enterprise Zone site, will also bring a series of wider benefits including improved public transport provision.

“The works are now in a position where they can progress imminently and be complete early in 2021.”

Failed rail firm Northern upped its bosses’ pay by nearly HALF as passengers faced misery ­during the timetabling crisis.

Accounts published just two days after the franchise was taken back into Government control last Sunday show bosses received an eyewatering increase of nearly £200,000.

Alan Selby  www.mirror.co.uk

That took total pay to £596,000 – including £248,000 for managing director David Brown.

Northern’s fatcats were rewarded while they presided over one of history’s worst-ever timetable fiascos in 2018.

Thousands of services were cancelled – with 165 a day cut to areas including Manchester, Liverpool, Blackpool and the Lake District – as passengers endured crammed trains in the week and chaotic Sundays.

Manchester’s Mayor Andy Burnham was among those calling for the firm to be stripped of its franchise and said the pay figures showed renationalisation was “not a moment too soon”.

Mr Burnham said Northern had been “a licence to print money that simply rewarded failure”.

Northern rail, which has now been taken under control by the Government (Image: Evening Gazette)

Shadow transport secretary Andy McDonald said passengers would be “incandescent” to hear about the pay rises, adding: “They should give every single penny back. It’s outrageous.”

Northern’s parent company Arriva blamed its failure on track operators Network Rail and other “challenges outside its control”.

Also from The Times www.thetimes.co.uk :

Rail fares have increased at double the rate of wage growth over the past decade….

…..Matthew Gregory, 49, the chief executive of First Group, was given a £876,000 pay package when he was promoted to head of the multinational transport company last year. First Group runs four train networks including South Western, which was the focus of the longest strike in the history of the railway last month. First also runs Transpennine Express. Almost 60 per cent of Transpennine trains were late in the year to the end of September, and many were cancelled…..

….Martin Griffiths, the chief executive of Stagecoach, received an £848,000 bonus on top of his £652,000 salary. His total remuneration almost doubled to £1.8 million, up from £987,000 the year before. Stagecoach and Virgin shared ownership of the west coast rail franchise until the start of last month, when it was taken over by a consortium led by First Group. Stagecoach now does not run any rail franchises in Britain…..

Coronvirus test results are awaited on an East Devon District Council employee but its offices will reopen tomorrow (Monday, March 9).

Tony Gussin  www.exmouthjournal.co.uk 

The council closed the Blackdown House offices on Friday after a possible case of the virus was identified in a member of staff who had returned from Italy.

A statement said test results were awaited on the employee, who would remain in isolation.

An EDDC spokesman said previously: “They are displaying potential symptoms and although the risk is very low, we are taking the correct measures.

“All members of staff have been sent home and the majority will be able to continue working remotely.

“The offices will be thoroughly cleansed, according to recommended guidelines, over the weekend and we anticipate reopening early next week.”

The news for re­gional jobs in Bri­tain was not good last week. The col­lapse of Flybe will have se­vere con­se­quences for eco­nomic pros­per­ity in smaller com­mu­ni­ties, with about 2,000 jobs at risk at the re­gional air­line. Bar­clays an­nounced last week it would close a ma­jor of­fice in Leeds, with the out­right loss of more than 200 jobs. Both of these de­vel­op­ments over the past week are in­struc­tive of a wider trend in Bri­tain, the most unequal coun­try for re­gional pros­per­ity among large wealthy na­tions.

Maybe the Great South West shouldn’t just be pitching to government – Owl

 Business analysis The Observer 8 Mar 2020

While Boris John­son has pledged to “level up” poorer re­gions to bring them closer into line with the rest of the coun­try, it is equally im­por­tant that the coun­try’s big­gest com­pa­nies play their part.

Lloyds Banking Group has a slo­gan that risks sound­ing as empty as John­son’s: “Help­ing Bri­tain Pros­per”. Yet the UK’s big­gest mort­gage lender has an­nounced plans over re­cent weeks to axe about 780 jobs and close 56 branches across the coun­try. The news adds to a dis­ap­point­ing trend since the fi­nan­cial cri­sis, as the bank has ef­fec­tively halved the size of its work­force to about 70,000. Thou­sands of re­gional roles have van­ished.

Lloyds Banking Group has a slo­gan that risks sound­ing as empty as John­son’s: “Help­ing Bri­tain Pros­per”. Yet the UK’s big­gest mort­gage lender has an­nounced plans over re­cent weeks to axe about 780 jobs and close 56 branches across the coun­try. The news adds to a dis­ap­point­ing trend since the fi­nan­cial cri­sis, as the bank has ef­fec­tively halved the size of its work­force to about 70,000. Thou­sands of re­gional roles have van­ished.

Banks and other big firms have off­shored re­gional Bri­tish jobs to eastern Europe, In­dia and else­where, un­der pres­sure from share­hold­ers to boost their prof­its at the ex­pense of lo­cal com­mu­ni­ties. Vir­gin Money – which has merged with the soon-to-be re­branded Cly­des­dale and York­shire Bank – is in the process of sac­ri­fic­ing 500 roles and 52 branches on the al­tar of share­holder value. Di­rect Line will cut 800 jobs from its 11,000-strong work­force as part of a £60m cost­sav­ing drive. All these il­lus­trate the in­creas­ingly lop­sided na­ture of the UK econ­omy, ex­ac­er­bat­ing di­vi­sions be­tween small towns and big cities.

Banks and other big firms have off­shored re­gional Bri­tish jobs to eastern Europe, In­dia and else­where, un­der pres­sure from share­hold­ers to boost their prof­its at the ex­pense of lo­cal com­mu­ni­ties. Vir­gin Money – which has merged with the soon-to-be re­branded Cly­des­dale and York­shire Bank – is in the process of sac­ri­fic­ing 500 roles and 52 branches on the al­tar of share­holder value. Di­rect Line will cut 800 jobs from its 11,000-strong work­force as part of a £60m cost­sav­ing drive. All these il­lus­trate the in­creas­ingly lop­sided na­ture of the UK econ­omy, ex­ac­er­bat­ing di­vi­sions be­tween small towns and big cities.

For too long, jobs have been lost in re­gional com­mu­ni­ties as big busi­ness pulls back to metropoli­tan cen­tres. Lev­el­ling up should be about more than just the pub­lic sec­tor – pri­vate en­ter­prise must play its part.

Owl heard a radio interview yesterday in which it was explained that the burden of any Public Health response to the Coronavirus emergency falls on local authorities. Owl understands they don’t know whether or how much emergency funding they might get. We all know local authorities ate strapped for cash. This article gives an idea of the scale of the problem. Think care homes.

Polly Toynbee  www.theguardian.com 

Blame Boris Johnson for almost everything, but not for the arrival of the coronavirus. He puts on his serious face, slightly unrumples his hair and tells people to wash their hands. As no one voted for him for public health advice he would do well to let untrusted politicians opine as little as possible, leaving public announcements to the respected chief scientific officer and chief medical officer.

But there is no way of keeping politics out of this. If this epidemic is only half as bad as the official worst-case scenario, the pressure on every aspect of public services will be tested to breaking point. The full effect of a decade of austerity is about to be brutally exposed.

Until now, the Tories have won and won again, despite the deepest austerity – confident that most people, most of the time, know nothing of cuts in public services they aren’t using now or can’t see. Though the A&E crisis is never off our TV screens, the remainder stays below most voters’ radar. But this virus may expose the true state of the country for all to see.

Tim Cook, an ICU doctor, writing in the Guardian, gave a graphic picture of the lack of intensive care and critical care beds – Britain ranking 23rd out of 31 countries for provision, and almost bottom for the number of hospital beds overall. But what of every other service?

Local authorities have the lead role in public health emergencies: they do disaster rehearsals for imaginary terror or biohazard attacks, coordinating with the army for emergency tents and temporary morgues, says Tony Travers, professor of government at the LSE. But coronavirus would probably be a crisis in every council simultaneously, with each being unable to call on help from the others. Over the past decade councils have lost between a third and a half of their income, with a quarter of their staff gone and up to a half lost in some places. Already the flooding has left those local authorities warning they haven’t got the money to cope.

Councils’ incapacity was exposed, Travers says, over the Grenfell tragedy. Kensington and Chelsea was not exceptionally badly run, but it could not cope with rehousing and supporting its residents after the tower block calamity: a team of chief executives from other local authorities had to come in and take over. The council on its own had lost too much administrative capacity. Councils run most services, and most, such as environmental health, have been hugely depleted: the National Audit Office describes that service as “failing”.

That civic incapacity will be revealed time and again by a coronavirus outbreak, with Whitehall’s civil service reduced to its smallest size in decades: look at the panic-hiring just announced to manage the Brexit customs fallout. If, as government plans suggest, one in five staff are out of action, the care sector will be hit hardest and fastest, as it is already so fragile and understaffed. That puts at risk the lives of old people at home alone or in care homes unable to care, with day centres mostly closed down in the cuts.

Money will need to flow fast to stop some care homes going bust and to hire emergency staff from agencies, no doubt at higher rates. Children’s homes face the same crisis, with many more children in care than a decade ago: social work departments are already overstretched. As for understaffed prisons, the prospect of virus outbreaks there and many staff off sick is frightening.

A spokesperson from the Department of Health and Social Care said yesterday, somewhat over-reassuringly: “The UK is extremely well prepared for these types of outbreaks and Public Health England has issued tailored guidance for care providers setting out action to be taken in a variety of circumstances.”

Public Health England does indeed inspire trust in its advice and oversight, but boots on the ground and helping hands are provided locally, and councils have taken the heaviest hit in the great austerity. Ever since George Osborne’s first budget in 2010, the plan was to “devolve the axe” to them. The Local Government Association this week warns they have lost £15bn.

The public realm will be exposed: the number of people working in it has fallen to just 16.5% of all jobs, the lowest since 1945. We will feel the spending cuts, with only £86 spent now on public services for every £100 spent in 2010.

The government is trying to recruit the 20,000 police it cut, but this takes time. Call in the army, says the emergency plan, but it’s now at its smallest ever, down to 73,000 from 103,000 in 2003. Even if there are no food panics requiring police or army at supermarket checkouts for rationing, emergency services are already planning to triage what they can provide with tough restrictions on their services.

In our book, The Lost Decade 2010-2020, David Walker and I have chronicled this unprecedented decline. The Tories have escaped electoral censure for austerity – so far. Perhaps, with luck, the virus will pass over without putting the country to the test. But if it is an epidemic on the scale Public Health England warns of, the politicians who have left the country so defenceless can expect trouble. Voters will be shocked to discover how far the things they took for granted have been depleted; and that the government may no longer be able to keep its citizens safe.

The answer to your most frequently asked question:

Another case of government unpreparedness.

All MPs and peers have been asked to come up with solutions to the social care crisis, after Boris Johnson admitted his claim to have a plan was untrue.

edition.independent.co.uk

In an extraordinary letter, Matt Hancock, the health secretary, has asked them all to “share their views” – with the aim of kickstarting talks in May. The move comes after the prime minister acknowledged he had no proposals, despite claiming – as he entered No 10 last summer – to have a “clear plan to give every older person the dignity and security they deserve”.

Mr Johnson then promised “a plan this year”, but the letter sent to MPs and peers suggests the government is starting with a blank piece of paper, despite the gathering crisis.

Around 1.4 million people in need are already believed to be going without care, and the sector is plagued by 122,000 vacancies – even before a harsh post-Brexit immigration crackdown next year.

“We want to hear your views, your proposed solutions and your concerns about reforming the way that people pay for their care,” Mr Hancock has written.

The move comes after council bosses warned that, without an overhaul of social care, local services in England face a funding gap of almost £6.5bn by 2025.

Labour immediately agreed to join any talks, but warned they were unlikely to succeed without the government putting forward effective proposals. The party is likely to propose its manifesto policy – free personal care for older people and a lifetime cap on care costs – but there would need to be agreement on the tax rises to pay for it.

Barbara Keeley, Labour’s social care spokesperson, said: “The prime minister promised voters that he had a plan to fix the social care crisis but now all we see is an open-ended invitation for comments. As we have repeatedly said, cross-party talks can only be effective when the government comes forward with its proposals for reform. It is clear that it does not have a plan to fix the crisis in social care.”

Caroline Abrahams, charity director at Age UK, echoed the criticism, saying: “Unfortunately, this announcement, issued on a Friday afternoon, will not fill anyone who cares about the future of social care with much confidence. It is always good for ministers to seek alternative views, but it is very disappointing that they appear not to be offering any of their own at this stage.”

In the letter, Mr Hancock writes: “We need action now, finally, to seek a solution that can support future generations. We will seek to build cross-party consensus so that the reforms we progress will last long into the future, nobody is forced to sell their home to pay for care and everybody accessing care has safety and security.”

But he added: “Of course any solution needs to consider the financial impact on taxpayers.”

The purchase of the Knapp nature reserve has been finalised.

Beth Sharp  www.sidmouthherald.co.uk

East Devon District Council chairman Stuart Hughes handed over the keys of the Knapp to the Sid Vale Association (SVA) vice chair Ed Harrison and Land Trustee Richard Huntington, who is responsible for all SVA land.

The Knapp, an area measuring about 8.4 acres, is located between Peaslands Road and Station Road and joins Peaslands Knapp, which the SVA already own.

The site will continue to be managed as a nature reserve and will remain open to the public.

It comprises an orchard, a pond, a wild flower meadow and two areas of mature trees and saplings.

Most of the mature trees are covered by tree preservation orders.

The SVA is very pleased to have secured this plot from the EDDC for the future enjoyment of Sidmouth residents.

The organisation is run entirely by volunteers and anybody who would like to and help maintain the area would be welcomed.

http://www.sidvaleassociation.org.uk/

The country’s most unproductive areas receive the least investment to boost output, according to new analysis published before next week’s budget.

London and the South East get more per head in taxpayer cash for transport, housing, innovation and culture, says Onward, a Conservative-leaning think tank, in a report that paves the way for changes to Treasury rules.

London and South East enjoy most taxpayer cash

Francis Elliott Political Editor, The Times, March 6

Rishi Sunak, the chancellor, is expected to change rules on public spending that critics say reinforce regional inequality in next Wednesday’s budget.

Boris Johnson has made “levelling-up” opportunity around the country the overarching theme of his government. Today’s analysis shows the scale of the task ahead.

London has received nearly twice the UK average in research and development spending since 2001 and nearly three times as much capital spending on transport as the rest of England since 2007, according to Onward’s analysis. This equates to about £6,600 per head in the capital compared with £1,800 in the East Midlands and £1,980 in the South West.

The analysis also found that between 2016 and 2021, London will get five times as much financial support for affordable housing as the rest of England. It also enjoyed nearly five times as much spending on culture over a seven-year period from 2010.

The think tank is urging the prime minister and chancellor to “take a bazooka” to the Treasury “green book” that lays out the rules and devolve transport policy. It is also urging the chancellor to “use every tool at his disposal” to level up regional growth.

The author of the report, Neil O’Brien, a former Treasury and No10 adviser and now an MP, said: “It is no wonder some parts of the country feel shortchanged. For decades we have piled fertiliser on the parts of our economy that are already flourishing while refusing to water the seeds of growth elsewhere. The PM’s mission to level up poorer parts of the country is vital.

“To change trends that have gone in the wrong direction for decades will need not a few tweaks, but taking a bazooka to the problem. We have to use every tool, starting by rebalancing the types of spending that do most for growth towards poorer areas.”

There is a strong case for new transport infrastructure investment in some cities and large towns. But this only applies to a handful of places where the current transport system is struggling to support the growth of their city-centre economies.

Transport infrastructure investment in cities – Centre for Cities

www.centreforcities.org

There is a strong case for new transport infrastructure investment in some cities and large towns. But this only applies to a handful of places where the current transport system is struggling to support the growth of their city-centre economies.

Poor public transport is not the cause of weak city centres; instead low numbers of commuters, and the ease of driving, make public transport infrastructure improvements commercially unviable. Because of this, funding for new transport infrastructure in these cities will do little to spur economic growth.

Where will transport infrastructure investment unlock city-centre growth?

Only cities with strong and growing centres with high public transport usage but slow journey times need new investment in major transport infrastructure.

London, Manchester, Birmingham, and Leeds stand out as cities that need infrastructure improvements. Bristol, Cardiff, Edinburgh and Glasgow also face similar, though less severe transport barriers, for residents and businesses.

Where should cities with weaker economies focus investment?

Before considering public transport infrastructure investment, cities with weaker economies first need to create the demand for it. To do this they should focus on growing their city-centre economies and making them attractive places for high-skilled employers to locate. Primarily, this means investing in skills and further education provision.

Without doing this, the existing transport network is likely to be sufficient. However, these cities should still have access to funding to support improvements to the existing local transport infrastructure and services.

How should the Government invest in transport infrastructure to boost city-centre growth?

The Government should invest the £31 billion identified by the National Infrastructure Commission for new major transport infrastructure in priority cities outside London. The money should primarily be focused on cities with strong economies and growing city centres where public transport usage is high and journey times are relatively slow. This money should be available to cities providing they meed two conditions:

1. Cities contribute a share of the costs locally so that risks are shared between local and national government; and
2. This local contribution includes revenues from a city-centre congestion charge. If these cities are serious about improving their transport networks, they need to also take politically-tough decisions locally to do so.

Cities and large towns that need new infrastructure should use extra capital to enlarge the public transport network. The exact nature of this should respond to the specific requirements of each city centre: whereas some may benefit from a new tram line, others such as Manchester will require tunnelling to provide the space for extra trams or trains to enter and exit the city centre.

If new infrastructure investment were coupled with initiatives to better manage existing transport, particularly buses, this would further boost the efficiency and equity outcomes of investments. All cities and large towns should look at how to improve the management and efficiency of their existing networks.

Daniel Wilkins  www.exmouthjournal.co.uk 

A possible case of coronavirus at East Devon District Council has forced the closure of the authority’s headquarters.

Blackdown House was closed to the public at noon today (Friday, March 6) as a precautionary measure after a possible case of Coronavirus was identified in a member of staff who was returning from a high-risk country.

The district council said it will continue to provide services and apologises for any inconvenience caused.

An EDDC spokesman said: “They are displaying potential symptoms and although the risk is very low, we are taking the correct measures.

“All members of staff have been sent home and the majority will be able to continue working remotely.

“The offices will be thoroughly cleansed, according to recommended guidelines, over the weekend and we anticipate reopening early next week.”

More information and advice on Coronavirus (COVID-19) can be found on the Gov.uk website

George Osbourne’s austerity programme was aimed not only at balancing the books but in shrinking the state. His toxic legacy has left a hollowed out civil service unable to cope with unexpected events. Boris Johnson has made a bad situation worse by centralising decision making in his group of “weirdos”. Inability to act decisively has become apparent. Compare UK slowness to repatriate people first from China then Japan. Now we see paralysis to deal with the effect of the collapse of Flybe on regional connectivity, not just from Exeter, but across small regional airports in UK. Nils Prately puts it succinctly:

Nils Pratley, Financial editor, The Guardian Business View 6 march 2020

No soft landing

The easy part for the government was refusing Flybe’s request for a £100M loan. The Connect consortium that owned Flybe – Virgin Atlantic, Stobart Air and the US hedge fund Cyrus Capital – had only woolly investment intentions. It was puzzling how the terms of any loan could qualify as “commercial” if no commercial lender was willing to step in. The spread of the coronavirus might quickly have made £100m an inadequate sticking-plaster, as argued here yesterday. Ministers had little choice.

But there is still a big job to be done – minimising the fallout from Flybe’s failure. On that score, the new aviation minister, Kelly Tolhurst, came to the Commons bearing only good intentions. The government “stands ready” to help regional airport and regional connectivity, she said.

Come on, the government has had seven weeks to prepare for Flybe’s demise. Many routes will be picked up by other airlines, but not all. By now one would expect ministers to have decided which of the marginal routes will be protected via public service obligation subsidies, as already applied to Flybe’s London-Newquay operation.

Details, it seems, will follow in the “regional air connectivity review” commissioned in January. The government needs to step up the pace. There is an obvious danger of a domino effect in which regional airports are thrown into financial crisis after the disappearance of their largest customer. The way to address that is not by “standing ready”. It’s by making some decisions, sharpish.

Owl has already posted the history of how this project, conceived at the beginning of the century as the “Iconic” building that would do for Exmouth what the Tate has done for St Ives, has been dogged by failure. You, the  Council Tax payer have now bought it at the full asking price.

Meanwhile EDDC plans to double down on its success with further seafront regeneration!

Are Council Tax payers the buyer of last resort if it all goes wrong again?

Daniel Wilkins  www.exmouthjournal.co.uk

A prominent entertainment destination on Exmouth seafront has been purchased by the district council.

East Devon District Council has confirmed it has completed a deal for Ocean, in The Esplanade, and announced LED Leisure Management Ltd will continue to run the facility and pay rent to its new landowner.

The authority completed the £2.7million purchase using funds from a £20million commercial investment fund.

This acquisition is the first EDDC has made using this fund, designed to generate £450,000 per year to support council services and activities moving forward.

The council said this will help address future budget challenges for the council.

Cllr Geoff Pook, portfolio holder for asset management, said: “Investment in this and other properties over the next few years will help the council towards financial self-sufficiency along with giving the council a further and direct stake in the growth, prosperity and place making aspirations across East Devon.”

Good news. Axminster Carpets has been bought out of administration by a group of investors which includes former owners. 

Owl wishes them well and hopes they have learned the lessons from the previous failure.

https://www.bbc.co.uk/news/business-51758433

Axminster Carpets has been bought out of administration by a group of investors which includes former owners.

The royal warrant holder was bought by ACL Carpets, which will change its name to Axminster Carpets in the near future, administrators said.

The company went into administration on 19 February, and 80 jobs were then lost.

The business had built up debts of nearly £8m, but is now debt free, Axminster Carpets said.

The Dutfield family, which controlled the company until 2016, is part of the group of investors.

The company will continue to operate from its head office and manufacturing facility in Axminster.

Robert Day, who led the private investors, said: “The business has never been in a better position to again become a significant player in the sector.”

Joint administrator Benjamin Wiles, of Duff & Phelps, said: “We are absolutely delighted to be able to announce today that we have secured the future of Axminster Carpets, one of the best-known British brands, following the successful sale of the business and assets of the company.”

Axminster Carpets was previously rescued in 2013. It had gone into administration, also overseen by Duff & Phelps, but was bought out by a consortium led by private investor Stephen Boyd. `

The firm lost about 300 of 400 jobs at the time. It had been one of Devon’s largest private employers. 

Owl remembers when Axminster Carpets went into administration in 2013

www.independent.co.uk   21 February 2013 

Axminster Carpets has signalled its fortunes were unravelling rapidly after it filed an administration notice, leaving 400 jobs hanging by the proverbial thread.

The carpet maker, based in the eponymous Devon town, now has a moratorium of 10 working days’ protection from its creditors to stitch together a rescue package after it filed a notice of intention to appoint the advisory firm Duff & Phelps as administrator.

Joshua Dutfield, the managing director at Axminster Carpets, said: “Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve the company’s financial difficulties.

“We continue to be committed to working to achieve the best-possible outcome for all concerned and most importantly the staff and suppliers.”

Before its financial crisis struck, Axminster Carpets nearly doubled its profits to £415,000 over the year to December 2010, on flat revenues of £32.7m, according to its latest accounts. Perhaps worryingly, its shareholders paid themselves a dividend of £500,000 that year.

The airline’s pension scheme is registered in the Isle of Man – meaning its members aren’t protected by the lifeboat fund

By Jessica Beard, PENSIONS REPORTER www.telegraph.co.uk

The collapse of regional airline Flybe has put more than a thousand savers at risk of losing their pension money.

Members of Flybe’s pension scheme stand to take a heavy financial blow as they are not protected by the UK’s lifeboat scheme, the Pension Protection Fund (PPF). 

The 1,350 people are not entitled to compensation because the British Regional Airlines Group Pension Scheme is not registered in Britain but in the Isle of Man. 

This means the scheme does not qualify for protection from the PPF, which is a statutory fund that was set up to guarantee that pension scheme members can retain a large portion of their savings in the case that a business ceases operations. 

The pension scheme owes more than £170m in retirement benefits to its members, according to a breakdown given at the firm’s year-end in 2017. However, the entire liability could be wiped out since Flybe has entered administration. In November 2018, Flybe had a pension shortfall of £11.6m. 

Dan Mindel, of covenant adviser Lincoln Pensions, said there are a number of “final salary”, also known as “defined benefit”, pension schemes that do not fall into the PPF net. 

He said: “At least with the PPF there’s a floor as to what their pension would be. In circumstances where there’s protection and there is a shortfall, there is no floor. It looks like the scheme is underfunded currently and how much people will receive depends on if Flybe gets funding back from administration, which seems unlikely.”

Warnings that Flybe pensioners could face financial ruin were made in February last year, amid concerns that the takeover bid made by Virgin would fail. 

People in the scheme should contact the trustees, Mr Mindel said, as there is going to be a period of uncertainty. 

Those who are currently retired and receiving their pensions are likely to be prioritised over those who are not yet withdrawing, he added.  

The ailing airline became the first British business to be forced into administration as a result of the coronavirus, after a government rescue bid fell through. 

Flybe cancelled all flights after the last plane landed yesterday evening, ruining travel plans for all of its passengers. 

The carrier had about nine million passengers annually and is owned by billionaire Sir Richard Branson’s Virgin Atlantic, as well as by shareholders Cyrus Capital and Stobart Group.

Brought down by coronavirus? Well, hardly. Chronic mismanagement and greedy owners, more like. Covid-19 might have dealt the final blow to Flybe. But it’ll be no consolation to the airline’s 2,400 staff that its minted shareholders had the financial fuel to keep it flying.

Alistair Osborne  www.thetimes.co.uk

They just didn’t want to put any money in. And, in a sense, who can blame them: an ownership trio starring Sir Richard Branson’s Virgin Atlantic and the UK-listed Stobart, each with 30 per cent, plus New York hedge fund Cyrus Capital, the holder of the rest. But to let the carrier keel over just a year after they bought it? Call it an unlucky takeover if you like. But cynical would be a better word.

They knew Flybe was a financial black hole with wings: floated at 290p a share in 2010, bought in February last year for just 1p a share, or £2.8 million. And, even during the bid, the acquiring trio showed their colours. For months, they messed around Flybe’s management with mooted offers as separate bidders. Then, with the airline running out of cash, they joined forces, cut the price by more than nine-tenths and made a take-it-or-leave-it rescue bid. When Flybe’s furious shareholders protested, they dodged round them and re-cut the deal to buy the assets out of the holding company. Nice work.

Still, all of that might have been forgiven if they’d made any effort to deliver on their promise to “provide a strong foundation to secure the long-term future of Flybe”. They pledged to “deliver more choice to customers”, rebranding Flybe “under the Virgin Atlantic brand” and incorporating its feeder services into Virgin’s “extensive long-haul network”. And they claim to have invested “more than £135 million”.

Reality tells a different story. As Stobart admitted, once Flybe had failed, the cash hit on its investment was just £7 million. The rest of its contribution was its fledgling airline Stobart Air and its aircraft leasing wing, ludicrously valued at £43.3 million — or about five times what they’re worth. The owners have routinely failed to admit how much cash actually went in.

In fact, each investor had different reasons for buying Flybe. Stobart wanted an outrageous price for its aviation assets and more traffic through its Southend airport: one reason it was about to add Flybe flights to Jersey and Belfast, even though the airline flew the same services from London City. Virgin’s chief interest was nine pairs of lucrative slots at Heathrow — scandalously switching the taxpayer-subsidised Newquay service to Gatwick to free up four of the slots. And Cyrus wanted a quick flip — even if no windfall to match the $1.4 billion it shared with Branson from selling Virgin America.

All wanted as little financial risk as possible, underlined by them instantly taking charges over Flybe’s assets — or at least those that couldn’t fly off. Lessors had security over most of the 67 turboprops, but anything unencumbered was divvied up. Companies House filings show that “clear and distinctive” labels were affixed to all kit valued “in excess of £10,000”.

Nowhere was there a viable business plan, requiring cost and route cuts. Or the promised rebranding that involved hard cash. No wonder credit card companies held back £50 million of passenger fares. Who’d release money to this business?

And then, when cashing in on Flybe turned out to be trickier than thought, the owners demanded a taxpayer bailout — pretty demeaning for the Necker island knight, apparently worth £4 billion. Or Virgin Atlantic’s co-owner Delta Air Lines, valued at $30 billion. Or Cyrus boss, Stephen Freidheim, managing $4 billion of funds and the owner of a Manhattan penthouse.

Yes, they persuaded ministers to give them a £10 million holiday on air passenger duty. But a £100 million soft loan when they’d patently failed to invest enough themselves or produce the promised turnaround plan? No big surprise new chancellor Rishi Sunak saw through that. As British Airways-owner IAG put it: if Flybe’s “wealthy shareholders didn’t wish to fund its survival, it would have been preposterous for the government to do so”. You don’t need coronavirus to tell you that.

On Friday, the Great South West will address a room of the South West’s best and brightest businesspeople at the South West Business Council’s quarterly conference at Exeter Racecourse. (see article below)

So this will be a “preaching to the converted “session. Owl desperately wants to see a thriving region but is confused as to who actually speaks for the region, and under what authority. Owl is also underwhelmed by the Great South West case which seems to emphasise presentation over substance. The “bottom line” of their prospectus seeks £2M handout from government over three years to create a team to flesh out a case (which they describe as “working at pace”). Heart of the South West has been plotting strategies to double the local economy in 20 years since 2014. All seem to agree that increasing productivity is an essential component.

So there is something the brightest and best business people could do right now, at no cost to the taxpayer. Read on.

In a recent article David Smith, economics editor for the times  www.thetimes.co.uk wrote

Productivity and investment are intimately related. The main reason that France has higher productivity than Britain, to the puzzlement of many, is that its businesses invest more. Capital per worker is higher, and so is labour productivity.

Investment matters for productivity growth. If business investment falters, as it has done in this country for the past three to four years, it means that a poor outlook for productivity turns into a terrible one…

……“There has been a major change in the incentives of senior management through the way and amount they are paid. Incentives determine behaviour, so we should not be surprised that behaviour changes when incentives change. Pay packages for management are formed today in a way that discourages investment.”

How? Executives are rewarded not for ensuring that the businesses they run are good and competitive in the long run, but on the basis of short-term performance — the average tenure of FTSE 100 chief executives is three to four years — and in particular share price performance. Investment often depresses short-term performance and the share price. Alternative uses of resources, such as share buybacks, do nothing for underlying performance but are popular with shareholders because they push up the share price. Fund managers, whose performance also is assessed on a short-term basis — quarterly, or even monthly or weekly — have an incentive to support buyback programmes because they flatter their investment records.

Charlotte Turner  www.devonlive.com

Representatives of the Great South West will be reminding the Prime Minister to put his words into action to back the region.

The Western Morning News’ editor-in-chief Bill Martin and David Ralph, CEO of the Heart of the South West LEP, will be speaking about the campaign which has stepped up its fight for investment and recognition – and they will be urging Mr Johnson to ensure he follows through with the pledges he made to the Great South West last year.

In December, a high-level delegation from the Back the Great South West campaign was invited up to Number 10 to discuss the needs for the area and how the Government can step up to help it thrive.

Mr Johnson told the Great South West partners from the region how important the South West was to him personally, as well as putting his backing behind the campaign.

At the time he said: “We want to address some of the infrastructure issues in the region, as well as other vital services. Because it is the mission of my Conservative Government to unite and level up the country, and the South West has potential in all sorts of areas – from the spaceport in Newquay to farming, fishing, tourism and technology.

“I want to see improvements to infrastructure and technology, better rail and roads, more schools funding and investment in health services. We’re One Nation Conservatives and we believe in a dynamic economy. The South West campaign is a great one and your region is an absolute priority to me. So I can assure you that we want to support and champion everything you do.”

On Friday, the Great South West will address a room of the South West’s best and brightest businesspeople at the South West Business Council’s quarterly conference at Exeter Racecourse.

The presentation is a chance to show how the Great South West is progressing and how the region’s ability to collaborate and speak with one voice has put it in a unique position in relation to a new Government that has vowed to level up the regions.

Something positive to report on health care

Claire  claire-wright.org 

After two years work, today a piece of work that has been close to my heart has been published.

Devon County Council’s Health and Adult Care scrutiny review on unpaid carers, has recommended 12 separate areas for action, starting with central government, in a paper that will go before its committee on Thursday 12 March.

I proposed the review almost two years ago when it became obvious from a carers survey I saw, that satisfaction rates are declining and unpaid carers were finding things increasingly tough.

It took several committee meetings before I could get agreement for the review to take place, which I then chaired from its start last summer.

I wanted it to be a truly thorough and extensive piece of work so that unpaid carers had the confidence we would make some strong and effective recommendations.

We spoke to around 100 carers across Devon, travelling out to all parts of the county, in order to hear what pressures carers were facing.

It was tough hearing the stories. Our hearts went out to people who told us repeatedly that they felt trapped, stressed, were responsible for caring for their loved ones 24 hours a day, seven days a week.

Added to this were people who are worried about the future. Stressed about the uncertainty of how they will manage an increasingly frail partner, with a paucity of options available.

Often unpaid carers are unwell themselves, as they neglect their own mental and physical health, with the demands of caring for their husbands or wives, mothers or fathers.

The pressures that austerity has created relating to there being less paid personal care, an ongoing shortage of paid care workers, the closure of many residential homes, including Devon County Council owned homes, has taken its toll.

Paid care is not only hard to find, it is expensive.

Adult Social Care budgets have been eviscerated under this government and it has also been remiss in not providing a solution to the resulting crisis, where people are at risk of losing their life savings if they need non-NHS care.

It is grossly unfair for people to be means tested for basic care if they have dementia, yet receive care for cancer under the NHS.

Quite clearly, in an evolved democracy and the sixth largest economy in the world, we must provide much better support for our vulnerable citizens.

There must be urgent action from central government on this and new funding needs to be provided to ensure that unpaid carers and those they care for are fairly and adequately provided for.

This is ultimately, where the buck stops.

There are also a raft of more localised recommendations for Devon County Council carers service, as well as Devon’s NHS Clinical Commissioning Group.

The most often cited request, was simply: I need a break. But the only break I get is an hour in Tesco’s once a week.

Many carers told us that they were struggling financially and had trouble claiming the benefits that they were entitled to, despite letters of support from their GP.

There are recommendations for central government on this too.

I am confident (hopeful!) that our recommendations address the most pressing issues that were raised with us and that we have been assertive and frank in our recommendations.

I’d like to thank scrutiny officer, Dan Looker, for managing the review. And I’d also like to thank my task group colleagues for leaving politics at the door and working effectively as a team to help produce this report.

Councillors will be asked to vote to approve the report at the next Health and Adult Care Scrutiny meeting on next Thursday (12 March).  The meeting starts at 2.15pm.

There is an option for public speaking but you will need to register four working days in advance with Gerry Rufolo – Gerry.rufolo@devon.gov.uk

The full report is here – https://democracy.devon.gov.uk/documents/s30160/04%2003%2020%20Carers%20Spotlight%20Final.pdf

The meeting’s webcast will be available here – https://devoncc.public-i.tv/core/portal/webcast_interactive/455423

Pic: Devon County Council’s Health and Adult Care Scrutiny Committee.

By Robert Plummer, Business reporter, BBC News www.bbc.co.uk

Although it has been around under various names for the past 40 years, Flybe was never an airline for the masses.

The number of passengers it carried pales by comparison with better-known budget carriers such as easyJet or Ryanair.

As a travel company, it is only a tenth as big as collapsed holiday firm Thomas Cook.

But those who have habitually chosen Flybe see it as a vital service, because it reaches the places that other airlines fail to touch.

“Mainland UK doesn’t understand how vital Flybe is to Northern Ireland,” tweeted one regular passenger, Jason, back in January when the airline narrowly avoided going bust, only to limp on for another two months.

“As someone who travels with them frequently for work, Flybe’s collapse would be a disaster for the NI economy.

“If this happens, Belfast City Airport will have only four flight routes. FOUR.”

Wider connections

Despite Jason’s heartfelt words, there are a number of other locations that owe just as much to Flybe in terms of connections to the wider world.

Cornish holiday resort Newquay, for one, has no direct rail services from London for much of the year and the journey takes about five hours. But Flybe could get you from London Heathrow to Newquay airport in little more than an hour.

Flybe was due to re-route its Newquay flights to Gatwick at the end of this month, but that plan has now fallen victim to the impact of the coronavirus outbreak on demand for air travel.

If you live in the Isle of Man, Flybe’s service has literally been a lifeline.

The airline had a contract with the government to transfer NHS patients from the island to medical facilities in Liverpool when they required treatment that could not be provided closer to home.

At the moment, it is unclear what will happen to that service.

Small wonder, then, that Ben Bradshaw, the MP whose Exeter constituency is close to Flybe’s base, has spoken of the “valuable connectivity” that the carrier provides.

In fact, he described the airline as “a strategically important business”.

Thanks to Flybe, Mr Bradshaw’s constituents were able to fly from Exeter direct to a variety of destinations including Amsterdam, Paris and Geneva – places that would otherwise be accessible to them only after a lengthy trek via other places.

And Flybe’s community links with the area go further, since it has sponsored Exeter City football club since 2003 and has its logo prominently displayed on players’ shirts.

Other regional airports where Flybe has a significant presence are Birmingham, Southampton, Manchester and Cardiff. Some of them may have difficulty continuing as going concerns now that Flybe has gone into administration.

Friends and relations

As well as business people and tourists, Flybe has also helped many far-flung friends and relations to maintain links.

Alex Simpson, who is British but lives and works in the Netherlands, said on Twitter: “I fly with Flybe regularly from Amsterdam to visit my family in Devon.

“Compared to other airlines, it is punctual with charming staff. I do hope that a solution is found that allows it to continue to operate long-term and sustainably.”

Freelance art director Sarah Ward, who divides her time between London and Cornwall, is another Flybe frequent flyer. She tweeted that she would have to move house if the airline ceased to exist.

In an appeal to her local MP, Derek Thomas, she asked: “What are you doing to protect such vital infrastructure?”

In a country where costly infrastructure projects such as HS2 and Crossrail take an eternity to build, Flybe has provided a nimble solution to tough transport problems.

Its demise will leave a vacuum that is hard to fill – and pose a dilemma for many people whose lifestyle depends on the routes that it serves.

What happens to Flybe’s routes now?

If an airline goes out of business, no other operator automatically takes over their routes and there is no guarantee any would.

However, rival companies can bid to buy take-off and landing slots previously used by collapsed airlines.

In November 2019, EasyJet and Jet2.com bought all of the UK airport slots owned by collapsed travel firm Thomas Cook.

The slots can be highly sought after: those at London Gatwick and Bristol cost EasyJet £36m.

For regional airports, the withdrawal of routes can have serious consequences.

Flybe is Europe’s largest regional airline, a main operator at both Exeter and Newquay airports, and the major provider of flights for the Channel Islands.

Owl knows that to save carbon emissions we need to move from away from air transport. Rail is the obvious replacement for most regional transport in the UK. But the rail link, even from relatively well connected Exeter, to the Midlands and further North and Scotland, compared to London, is poor.