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Accountability, Austerity cuts, Business Rates, East Devon economy, High Street decline, Small and Medium businesses

Small businesses accuse government of failing them

“Theresa May’s Government today stands accused of failing to back small businesses, in a report due to be launched by Home Secretary Sajid Javid.

A damning poll reveals three in five people think the Tories are letting down the army of small firms which are vital to the economy and town centres.

The findings come from a YouGov survey of 1,644 adults for the Centre for Policy Studies think tank, which was founded by Margaret Thatcher.

It revealed 60% of people believed the Government “is not on the side of small business”, with just 14% disagreeing. …

This report shows how bureaucracy and paperwork are stifling the growth of our small businesses and offers a series of compelling ideas for how Government can roll back the tide and show that the Conservatives are backing entrepreneurs.”

https://www.mirror.co.uk/news/politics/small-businesses-damning-verdict-nine-16052199

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Accountability, Local Government Finance

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Broke Tory county council gets its ‘Get Out of Jail Free’ card … as district councils disbanded

https://www.publicfinance.co.uk/news/2019/05/northamptonshire-councils-be-merged

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Accountability, Audit (EDDC), EDDC, Local Government Finance, Scrutiny

Government lacks transparency over local authority governance

“There is a complete lack of transparency over the government’s handling of local authorities with governance issues, MPs have warned.

A damning report from the Public Accounts Committee has called on the government to strengthen audit and governance of the “complex and fast-moving” environment that local authorities find themselves in.

The cross-party group of MPs warned that local authorities are now pursuing shared services and taking on commercial risk, but are simultaneously dealing with a “significant” reduction in resources.

The report noted that while some authorities have robust arrangements, others are under strain and have “audit committees that do not provide sufficient assurance, ineffective internal audit, weak arrangements for the management of risk in local authorities’ commercial investments, and inadequate oversight and scrutiny”.

The Ministry of Housing, Communities & Local Government’s oversight of local authority governance has until now been “reactive and ill-informed”, the report said. However, it noted that the department has now committed to improving its oversight.

MPs said that MHCLG lacks reliable information on key governance risks and relies on weak sources of information, meaning it has “no way of pinpointing at-risk councils”. They also said that the department is not focused on long-term risks to council finances.

“There is a complete lack of transparency over both the department’s informal interventions in local authorities with financial or governance problems and the results of its formal interventions,” the PAC said.

The report claimed that taxpayers have a right to know if there are problems with their councils’ finances. It cited the demise of Northamptonshire County Council, which it said was an ‘open secret’ but only for those in the sector.

PAC chair Meg Hillier said: “On the rare occasions a local authority fails, the impact on local citizens is severe. Residents facing decimated services get no comfort from being told that their council’s dire finances were “an open secret”.

“The government needs to recognise the extra pressure that squeezed budgets and increased commercial risks are having on local government and make sure it is monitoring the risks effectively so that it can be alert to the impact of changes on local government.”

MHCLG has been contacted for a response.”

Appearing before the PAC in March:

https://www.publicfinance.co.uk/news/2019/03/whiteman-local-government-finance-needs-be-more-transparent

CIPFA chief executive Rob Whiteman called for an improvement in local government audit.”

https://www.publicfinance.co.uk/news/2019/05/mhclg-oversight-local-authority-governance-reactive-and-ill-informed

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“Carillion’s ‘relationship with auditors too comfortable’ “

“Ninety-three per cent of construction industry suppliers think the relationship between the ill-fated firm and its auditors, KPMG, was “too cosy”, according to a poll of construction industry leaders.

A further 57% of respondents believed that reforming the ‘big four’ audit firms – PwC, KPMG, EY and Deloitte – is a necessary step.

The poll, which surveyed more than 50 senior managers across the construction sector, found that 76% believed the Financial Reporting Council was too timid in its challenging of questionable financial information.

Mark Robinson, chief executive of Scape Group, which carried out the poll, said: “We need to be able to have faith in company accounts and the work auditors are carrying out, especially when public sector contracts and people’s livelihoods are at risk.

“Greater oversight and closer management of auditing practices [is needed] in the search to rebuild trust in the industry, but we also need to make sure we are putting in place sensible reforms that do not put increased cost pressures on an industry that is already contending with the cost of materials and reduced access to labour.”

The report from Scape Group also found that 64% of respondents thought that Carillion’s downfall was owing to debt mismanagement, acquisitions and long payment terms, created by a focus on revenue rather than profit.

The Competition & Markets Authority recently suggested that the ‘big four’ separate their audit work from the rest of their consultancy work. This move, CIPFA said, could have implications for local government.

KPMG and the FRC have been contacted for comment.”

https://www.publicfinance.co.uk/news/2019/05/carillions-relationship-auditors-too-comfortable

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Accountability, Police (local), Privatisation

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“Probation services set to be renationalised as [Tory] Government accepts failure”

Owl says: Privatisation was supposed to be the answer … not the problem!

“Probation services are set to be renationalised as the Government prepares to accept its experiment has failed.

An announcement on how supervision of thousands of offenders will return to the National Probation Service is expected in weeks.

Reforms introduced by Chris Grayling when he was Justice Secretary have cost taxpayers almost £500million and led to an increase in murders committed by criminals.

Sources said the news could be broken as early as Thursday.

… The Ministry of Justice began partially privatising the probation service in 2013.

It involved 21 “community rehabilitation companies” monitoring people released from jail after serving short sentences. But the Government announced last year their contracts would end in 2020 – 14 months early.

Dame Glenys Stacey, the Chief Inspector of Probation, has previously described the current model as “irredeemably flawed”.

She told MPs on the Commons Justice Committee yesterday there were “deep-seated, systemic issues”.

She said it was “remarkably difficult” to condense probation into a set of contractual measures.

The Mirror revealed this year that 225 people had been murdered by convicted criminals being monitored by firms since privatisation.

The toll soared to 71 last year from 42 in 2015, shortly after Mr Grayling introduced the changes. …”

https://www.mirror.co.uk/news/politics/probation-services-set-renationalised-government-15868831

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Accountability, East Devon Alliance, East Devon Tories, EDDC, Independent Councillors, Lib Dem (local)

Independents at EDDC … an interesting spread …

Independents by their nature are a funny bunch! With no party politics to bind them (a VERY GOOD thing!) what else can bind them?

The East Devon results are particularly interesting: a very cohesive group for the eastern area based on Exmouth, but with a smattering of Lib Dems and Greens, a very cohesive group for the whole of the Axe Valley and Yarty and a bunch of mostly newbies literally in the middle (Ottery St Mary, Cranbrook, Feniton).

Might we see a new way of doing things this time around – geographically rather than party politically? But might that have its own dangers as each area vies for scarce resources? Or, can the three different areas blend and share resources equitably and be seen to be doung so? The values of independents suggests they could if the will is there.

Now that would be interesting …..! It would certainly keep the now somewhat raggle-taggle mostly Honiton-based minority Tories on their toes and fighting their now very,very much smaller corner!

Interesting times … interesting times!

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Austerity cuts, Inequality, Poverty

“Typical workers paid less than a decade ago while bankers get huge pay rises”

“The average British worker makes £17 a week less than they did a decade ago, once increases in the cost of living are taken into account.

But salaries for bankers and others in the finance sector are £120 a week higher than in 2009, a new study suggests.

To find the results, the TUC took a look at official earnings figures for different workers now, and compared them to those a decade ago. Then it factored in price rises.

TUC general secretary Frances O’Grady said: “It’s not right that pay is racing ahead in the City when most working people are still worse off than a decade ago.

“The architects of the financial crisis are earning record amounts while teachers and nurses struggle to get by.”

Nurses and teachers are among workers hardest hit, with those employed in health and social work and education £36 a week worse off than in 2009, said the TUC.

By contrast, average real pay in the financial sector has increased by 9.3% (£119 a week) since 2009 reaching a record average of £1,405. …”

https://www.mirror.co.uk/money/normal-workers-paid-less-decade-15669618

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“4m Britons in poverty despite having jobs”

“… It is the bruising combination of low pay, insecure hours, rising housing costs and cuts to benefits that has driven in-work poverty to its highest point in 20 years.

Innes says: “The labour market is trapping people in poverty, when it should be offering people a route out. It is very demoralising for people who are doing what society expects of them, going out to work to meet the essentials but still unable to do that.”…

http://flip.it/PilE9X

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“Almost one in 10 cash machines vanishing from East Devon”

“… Figures show one in ten cash machines – or ATMS – have disappeared from East Devon’s high streets in the last two years, amid warnings the UK’s cash system is ‘falling apart’.

At the end of 2017, there were around 230 ATMs – according to data from the cash machine network Link – this has now fallen to 208, as of February this year.

The number of free-to-use cash points has also gone down from 179 in 2017 to 171 two years later.

An independent review published in March found that around eight million adults – 17 per cent of the population – were still reliant on cash and would struggle to cope in an entirely digital economy.

These included people in rural communities, those on a low income who may struggle to budget without cash, and older people or people with disabilities who rely on cash for their independence.

Natalie Ceeney, chair of the Access to Cash Review, said: “There are worrying signs that our cash system is falling apart.

“ATM and bank branch closures are just the tip of the iceberg – underneath there is a huge infrastructure which is becoming increasingly unviable as cash use declines.

“We need to guarantee people’s right to access cash, and ensure that they can still spend it.”

A recent report by consumer watchdog Which? found almost 1,700 previously-free cash machines had begun charging users between January and March of this year. …”

https://www.exmouthjournal.co.uk/news/east-devon-atms-disappeating-figures-show-1-6047802

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“Growing inequality threatens democracy”

“Inequalities in pay and opportunities in the UK are becoming so extreme they are threatening democracy, an Institute for Fiscal Studies study has said.

The think tank warns of runaway incomes for high earners but rises in “deaths of despair”, such as from addiction and suicide, among the poorest.
It warns of risks to “centre-ground” politics from stagnating pay and divides in health and education.

The report

https://www.ifs.org.uk/publications/13075

says such widening gaps are “making a mockery of democracy”.
The Institute for Fiscal Studies (IFS), one of the country’s leading research institutes, is launching what it says is the UK’s biggest analysis of inequality.

That will be chaired by Nobel Prize-winning economist Prof Sir Angus Deaton. …

It suggests pay inequality in the UK is high by international standards – with the share of household income going to the richest 1% having tripled in the past three decades.

The middle classes are also under pressure, particularly younger generations, with stagnant pay and unaffordable house prices.
The long-term decline in trade union membership is identified as another factor in wages not increasing. …

Richest increasing their earnings

As well as inequality in income, the think tank highlights divergence in health.

It says there is almost a 10-year gap in male life expectancy between the richest and poorest areas – and the IFS warns of “deaths of despair”, with a rise in early deaths from drug and alcohol abuse and suicide being linked to factors such as poverty, social isolation and mental health problems.
Patterns of relationship are also affected by inequality, the study suggests.

Over recent decades, wealthier people have become more likely to be living in a couple, either married or co-habiting, the IFS says. …”

https://www.bbc.co.uk/news/education-48229037

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Accountability, East Devon Alliance, EDDC, Independent Councillors

“District council coalition talks ‘ongoing’ says East Devon Alliance leader”

“Discussions over the formation of the district council are ongoing according to the leader of the Independent East Devon Alliance (IEDA).

Paul Arnott, councillor for Coly Valley, has welcomed the decision by the Liberal Democrats to ‘support the formation of an independent-led administration’.

There are now 11 IEDA councillors at East Devon District Council and a partnership with the independent group, which has 20 councillors, would give the coalition overall control of the council.

The Liberal Democrats said they are not interested in forming a coalition with any other parties or groups.

Mr Arnott said: “We were very pleased to be told by the Liberal Democrats that they would be prepared to support the formation of an Independent-led administration.

“As Independent East Devon Alliance councillors we have principles based on accountability, democracy and transparency.

“We believe we were all elected to run the council to the highest standards while also reforming its governance from the outset.

“We are currently in discussions with other independents about how best to deliver this.”

https://www.midweekherald.co.uk/news/district-councillor-formation-talks-are-ongoing-1-6047103?

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Swire’s extended family still in Sunday Times Rich List

Swire is a member of the Hong Kong based Swire Group family, whose assets have increased over the last year to £5.08 billion putting them at no 27 on the Rich List 39th place last year), up from £3.3 billion last year (an increase of £1.78 bn).

Two Swires are believed to own 45% of the operation.

Source: Sunday Times

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Austerity cuts, Inequality, Poverty, Universal Credit

“Welfare shake-up ‘will double number of children in poverty’ “

“Flagship welfare reforms will trigger a big increase in families unable to make ends meet, new analysis reveals.

The number of children living in families that have a monthly deficit will double in some areas, because of the combined impact of universal credit, a two-child limit on some welfare payments and the benefits cap.

The research, produced for the children’s commissioner, found that a quarter of children in its sample would be hit by the measures. Almost half of low-income households examined were affected, losing on average £3,441 a year.

Charities and researchers are already warning of rising child poverty. Amber Rudd, the work and pensions secretary, has been attempting to soften the government’s reforms, putting more money into universal credit, limiting the two-child policy and sanctioning fewer claimants. …”

https://www.theguardian.com/politics/2019/may/12/welfare-children-poverty-low-income-families

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Accountability, Austerity cuts, Inequality, Outsourcing, Poverty, Privatisation

Civil servants set up food bank for their office cleaners

“An emergency food bank has been set up in the Whitehall offices of a government department after cleaners and other support staff became the victims of a payroll blunder by one of Britain’s biggest outsourcing companies.

An email was sent to workers at Greg Clark’s business, energy and industrial strategy department on Thursday asking them to donate food at four drop-off points set up in the ministry.

The email, seen by The Sunday Times, said the request followed problems with the department’s new facility services contractor, ISS World.

The problems meant that “every single payday since they took over the contract on March 1, our staff have not been paid, paid incorrect amounts, unexplained deductions, etc.

“This has resulted in cleaners unable to travel to work as they have no money for bus fares, a member unable to give their wife transport money to take their sick son to the GP, forcing her to walk for 1.5 hours and others facing eviction proceedings. The situation has become unbearable for them.”

The email, which was written by a trade union official, added: “We have called for crisis talks with [department] senior management, after repeated assurances have been reneged on . . . Please donate whatever you can urgently.”

Reacting to the appearance of a food bank at the department, Mark Serwotka, the general secretary of the Public and Commercial Services Union, said: “It is absolutely shocking that our members are being forced to use food banks because of ISS’s mismanagement of the contract. This underlines why all contracted-out services in . . . government departments must be brought back in-house as a matter of urgency.”

The department said last night it was in “daily contact” with ISS, and promised that “any additional costs incurred by staff due to the error” would be reimbursed. It said it was contacting every contractor to “ensure any further errors not yet identified are resolved within the same day”.

ISS World did not respond to requests for comment.

Source: Sunday Times, paywall

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Accountability, East Devon Electoral/Returning Officer

Another EU ballot snafu …

From Exmouth:

“Serious concerns about the legitimacy of the European Parliament Elections as my husband has received 3 separate Ballot papers with different reference codes on them.. Doesn’t bode well for a properly regulated and fair referendum….”

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DCC, EDDC, Health and Social Care (local)

“Rising age of East Devon residents will be one of the highest in the UK”

“New figures show that the district will have one of the highest ratios of retirement-age residents in England.

Economic experts say higher taxes or lower spending will be needed to cope with the costs of the UK’s ageing population.

According to the main population projections done by the Office for National Statistics (ONS) there are currently 43,082 people of pension age in East Devon and 77,786 of working age.

The ratio, produced by the ONS, takes into account migration from overseas and other parts of the UK, based on trends for the past 10 years.

It’s predicted that by 2026 there’ll be 574 people eligible for a state pension for every 1,000 still working.

Previous projections show the current rate is 554.

It also considers the gradual increase in the retirement age introduced by the Government. By 2026 it will reach 67.

David Sturrock, research economist at the Institute for Fiscal Studies, said the ratio provided a useful measure for the pressure an ageing population will place on society.

He said: “We think there needs to be some response to demographic pressures, either through spending reduction, tax rises, or some combination of both.

“Some steps have been made, such as raising the state pension age, but on current trends the ageing population will continue to grow, and it will demand action from politicians.”

Caroline Abrahams, Charity Director at Age UK, said: “Many will be surprised by how much older people contribute to society including a great deal of knowledge, skill and energy. Whether they are volunteers, informal carers or paid employees, many are redefining what it means to be ‘an older person’.

“Our creaking social care system has been chronically underfunded for years and will simply not be able to cope with the extra demand that an ageing population will bring unless substantial funding is found.

“We also need to create age friendly communities that offer a good quality of life across the generations, by designing environments that are safe and pleasant to live in, with good local facilities and open spaces.

“If we can get this right it will help to sustain the health, well-being and quality of life for everyone, regardless of age.”

https://www.midweekherald.co.uk/news/rising-age-of-east-devon-residents-predicted-to-grow-1-6042090

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Accountability, Education (local), Inequality

Private school head complains too many state school children are going to Oxbridge

“The headmaster of a leading private school has compared the rise in Oxbridge admissions among state-educated pupils to the policies of Hitler’s Nazi Germany.

Anthony Wallersteiner, head of Stowe School in Buckinghamshire, told The Times that parents of his students are complaining about “social engineering” edging their children out of places at Oxford and Cambridge.

He said: “There’s a much more concerted effort by [Oxbridge] admissions tutors to drive down the number of places given to independent schools and redress the balance and to put in context. …

… Last year a report found 42 percent of places at Oxford and Cambridge go to independent school students, even though just 7% of the general population attend a private school. …”

https://www.huffingtonpost.co.uk/entry/private-schools-nazis-hitler_uk_5cd683e9e4b054da4e89ba72

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Tory Party too poor to pay rent? Maybe they can get Housing Benefit ….. or Universal Credit!

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Accountability, Democracy, Scrutiny, Sleaze

MPs claiming expenses for adult children

“The Daily Telegraph says it has discovered that MPs – including Energy minister Claire Perry – are boosting their expenses by claiming for adult children dependent on them.

According to the paper, the age limit when claiming for children is 18, rising to 21 for certain exceptions.

Ms Perry says all her claims are made in accordance with the rules; two other MPs have told the Telegraph they will return money.

The paper’s leader column says the rules may have changed in the wake of the expenses scandal 10 years ago – but it is clearly going to take a long time to remake the culture in Westminster.

It concludes by advising politicians to listen to the words of Lord Tebbit – “If you wouldn’t be happy to read something about yourself on the front pages, don’t do it.”

https://www.bbc.co.uk/news/blogs-the-papers-48235813