Category Archives: Cuts

Birmingham Council adopts the government’s austerity agenda: asking the low paid to accept even lower wages

In July, Birmingham City Council reneged on an ACAS-mediated, cabinet-approved agreement between the Unite union and Birmingham’s talented Council Leader, John Clancy, which was to end the seven-week refuse collection dispute.

The well-paid BCC chief executive (right) was seeking to downgrade 106 Grade 3 jobs to a Grade 2, which meant that workers would lose £3,500-5,000 from their already low salaries of around £20,000.

And when BCC reneged on the Unite/Clancy deal, they also issued redundancy notices to the Grade 3 workers. These were later banned in the High Court when Mr Justice Fraser spoke at length about the “extraordinary” and “astonishing” state of affairs at Birmingham City Council with “chaos” between senior personnel. Read more about his reflections here.

Council leader Ian Ward (left) told a BBC reporter: “The cost of the (three month) dispute, yes that’s cost in excess of £6m”.

This ‘new’ version of the original deal (details here), described by union insiders as a ‘total climbdown’, was agreed at a special meeting of the BCC cabinet on Friday.

 ITV reports that yesterday Birmingham bin workers voted to accept the council deal.

So a seven week dispute was allowed to go on for three months, regardless of health and safety implications, losing £6m of ratepayers’ money – and the wrong head rolled.

From ‘Our Birmingham‘,  under another title.

 

 

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Broken Britain 11: economic apartheid

In last week’s Prime Minister’s Question Time there was a fiery intervention by MP Dennis Skinner who told Theresa May about research showing that the High Speed 2 rail line was going out of its way to stop disruption to “leafy suburbs of the south”:

“[In] the leafy suburbs of the south, the first 140 miles, 30% of it has been dedicated to tunnelling to avoid knocking houses down.

“Yet in the north we are now told that the percentage is only 2% for the whole of the north. “And why? Because HS2 says it’s too costly, knock the houses down.

“Will she arrange for a meeting with people from my area in order to avoid another 30 houses being knocked down in Newtown part of Bolsover.

“Isn’t it high time that this government stopped treating our people like second class citizens?”

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Theresa May replied by extolling her government’s service to these second class citizens citing resounding names Northern Powerhouse and Midlands Engines; the reality?

The north struggles to attract high-calibre teachers . . . Its secondary schools have, on average, funding of £1,300 less per pupil than those in London. In April this year the FT reported research findings that schools with the poorest children face much greater cuts per pupil than those with the most affluent children under the government’s proposed funding formula. (Brian Groom FT)

Knowsley and Liverpool are two of the most deprived areas of the country: council spend per head in these areas has been reduced by £400 and £390 respectively. In Wokingham and Elmbridge, two of the wealthiest parts of the country, the corresponding totals are £2.29 and £8.14.

A scheme to compensate councils for the council tax freeze, for example, is calculated on the value of properties in the area, meaning that the higher the value of local homes, the larger the relief package: Surrey gets a vastly bigger pay-off than Teesside. (Tom Crewe, LRB essay)

The local authorities with the highest levels of deprivation and more reliant on central government grants, were relatively worse off. Cuts to the poorest metropolitan districts averaged 28% compared with more affluent authorities (2010-2015). National reviews painted a stark picture of closures and restrictions to services. (Steve Schofield, Conservative austerity and the future of local government)  

 

Time for change!

 

 

 

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A ‘racket’? Government departments and regulators are protecting elites by covering up large corporations’ failures

The growing public awareness of this unholy alliance is leading to a rapidly increasing loss of confidence in our institutions of democracy, lower tax revenues, and cuts in healthcare, pensions, education and infrastructure spend.

Professor Prem Sikka’s latest article scathingly outlines the way in which regulatory bodies and government departments are protecting elites and corporations from retribution.

He cites seven examples, the latest being the refusal of the Financial Conduct Authority (FCA), the UK’s banking regulator, to publish its 361-page report on misconduct at the state-controlled Royal Bank of Scotland (RBS).

The 2013 Tomlinson Report showed that instead of rescuing struggling businesses, banks made money by asset-stripping and destroying them. This was followed-up an investigation by the FCA and in November 2016 it published what purported to be a summary of its full report. Subsequently, the BBC obtained a leaked version of the report. It referred to “inappropriate action” by RBS’s Global Restructuring Group (GRG).

The inappropriate action experienced by 92% of the businesses included complex loans, higher interest rates, and unnecessary fees. Businesses could not easily return to good health.

For the period 2013-2015, GRG handled 16,000 companies – and about 10% survived. Many ended up in administration and liquidation, with their assets were sold cheaply. RBS has set aside around £400 million to deal with possible claims.

The secret FCA report is not only an indictment of RBS, but also of other banks, accountants and lawyers. People are entitled to see the full scale of the scandal, and remedial legislation cannot be drafted without sight of the whole report. Yet the regulator’s impulse is to shield RBS and its accomplices.

Professor Sikka’s comment: “We can’t afford this racket” refers to the ‘knock-on effect’ as lower tax revenues (and a self-centred, heartless ideology?) lead to cuts in healthcare, pensions, education, public services and infrastructure spending.

 

 

 

 

https://leftfootforward.org/2017/10/six-ways-the-uks-regulatory-system-is-a-protection-racket-for-the-elite/

Brexit – advantage the already rich: John Buchan, Jeremy Corbyn and Private Eye

John Buchan, 1915: Financiers can make big profits on a falling market and it suits their books to set Europe by the ears.

Jeremy Corbyn, March 2017; the Tories’ hard Brexit’ will benefit super rich and hold back millions.

Private Eye, 6.10.17: investors could swoop on cheap assets after Brexit wrecks the British economy

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Jeremy Corbyn opened in I News:

When Pret A Manger opened its first sandwich shop in 1986, I doubt many of us would have expected well-known high street chains to end up trying to pay their staff in leftovers. But that’s exactly what’s happened. Last week, Pret had to abandon plans for a work experience scheme paying 16-18 year olds only with food after a public outcry.

A taste of things to come . . .

It was an even faster U-turn than Tory chancellor Philip Hammond’s reversal of an increase in National Insurance for the self-employed – also after an outcry. Both the Hammond and the Pret sagas look like a taste of things to come. The not-so-hidden agenda of hard right Brexiteers, from trade secretary Liam Fox to foreign secretary Boris Johnson, is to create a bargain basement economy for big business.

In 2012, Fox said it is “too difficult to hire and fire” and “intellectually unsustainable to believe that workplace rights should remain untouchable”. Employment rights under threat Now that Article 50 has been triggered, Fox has his chance to sweep away decades of hard-won employment, consumer and environmental rights enshrined in EU law. In fact that’s exactly the direction Theresa May has made clear she intends to go if she can’t get the Brexit deal she wants – and Johnson has said not getting a deal is “perfectly okay”.

The Tories are preparing a Great Repeal Bill as part of the Brexit process, and all the signs are they will try to use it to tip the economic scales even further in favour of their super-rich supporters. They have after all spent the past seven years giving them one tax break after another while imposing austerity on everyone else.

Altogether, on official figures, they will have handed out £73bn in welfare for the wealthy between now and 2022. They have cut inheritance tax, the bank levy, capital gains tax, the top rate of income tax and corporation tax – squeezing or slashing support for the NHS, social care and other vital services.

While the earnings of working people have been held back, executive pay has soared to levels beyond most people’s wildest dreams. The chief executives of the top 100 companies on the London Stock Market were paid on average £5.5m each in 2015 – that’s 183 times average earnings.

The Conservatives justify tax cuts for the richest and big business by saying they will lead to an increase in investment. But there is no evidence of that.

On the contrary, investment in the UK has fallen, leaving us with antiquated infrastructure and uncompetitive industries. The future of our country cannot be left to the free market and the whims of the wealthy.

 

 

 

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Ms May undermines her hero’s work as cuts to council funding reduce the powers of local government

The presenter of this BBC radio programme, Adrian Goldberg, grew up on the Druids Heath council estate in Birmingham, the home of the ‘municipalism’ pioneered by Joseph Chamberlain when he was Mayor of Birmingham – summarised by Walsall MP John McShane in the Commons in 1930:

“A young person today lives in a municipal house, and he washes himself … in municipal water. He rides on a municipal tram or omnibus, and I have no doubt that before long he will be riding in a municipal aeroplane. He walks on a municipal road; he is educated in a municipal school. He reads in a municipal library and he has his sport on a municipal recreation ground. When he is ill he is doctored and nursed in a municipal hospital and when he dies he is buried in a municipal cemetery.”

Adrian is described as being an ideal candidate to judge the changing nature of the local council, because when he and his family moved there the local authority:

  • built properties and
  • collected the rent.
  • Adrian took a council-subsidised bus service to
  • the secondary school run by his local education authority.
  • On the way home he’d drop into his council-run library to pick up some books
  • or take a swim in the council run pool.

He comments, “Today the situation is much more complex”

Adrian considered the effect of austerity on the role of councils today. Birmingham council has almost halved its staff since 2008, from around 24,000 to 12,500. Last year another £28m was cut from Birmingham’s adult care budget of £230m. 2017/18 – the seventh year of cuts – is predicted to be the toughest year yet with expected reductions of £113m to the council’s overall budget, on top of £650m already cut since 2010.

Local government grants and powers have been greatly reduced in several areas, including education and housing. Read more about the following cases here.

  • The fate of the formerly successful council-run Baverstock Secondary School in Druids Heath
  • The group of residents who set up the Friends of Walkers Heath Park in November 2011
  • The volunteers who are helping to run the library
  • Druids Heath’s handsome and historic Bells Farm community centre (below), with its food bank and other services, also kept going by local volunteers.

The link also leads to news of high-rise tower blocks in the area; dilapidation, damp and fire hazards go unremedied, the splendid concierge system was abandoned and full time neighbourhood office advice centres, closed in 2006, were replaced by a private call service which was expensive, often not answering, with staff unable to supply the information needed.

In Birmingham there was a move under John Clancy’s leadership to take back ‘in-house’ the services currently undertaken by profit-making private companies, deciding not to renew one Capita contract and considering the future of refuse collection in the city. This, because the ‘market place’ economy which has developed, privatising refuse collection, road maintenance and ‘back office’ functions in Birmingham, has proved to be more expensive and often less efficient. This hope is fading as Richard Hatcher reports on the new regime: Birmingham Council Children’s Services contracted out, Children’s Centres closed.

The health and safety of council tenants is evidently not a government priority

Inside Housing reports the housing minister’s description of sprinkler systems for high rise blocks as “additional rather than essential” and refusing a council’s request for funding promised after the Grenfell Tower tragedy.

Strangely, the conservative Prime Minister expresses admiration for Joseph Chamberlain

Mayor of Birmingham in 1873, city MP in 1876, Joseph Chamberlain directed the construction of good housing for the poorest, libraries, municipal swimming pools and schools. Unlike Ms May and colleagues, he was not in favour of a market economy, arguing for tariffs on goods from countries outside the British Empire. He was also an ‘economic interventionist’ (see Lewis Goodall, Newsnight), described as a “gas and water socialist”. He took profit-making private enterprises into public hands, declaring that “profit was irrelevant”.

In no way is she following the example of her hero.

Ms May’s government continues to implement a series of cuts affecting the lives of the country’s poorest and most disabled with might and main.

Ironically the contemporary politician sharing Chamberlain’s principles is the opposition leader, Jeremy Corbyn, whose policies she echoes but does not implement.

 

 

 

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Austerity 3: cuts on school transport for disabled children

The 5 live Investigates radio programme gave the Department for Education evidence from a survey of 2,500 parents gathered by the charity Contact, formerly Contact a Family.

The Education Secretary Justine Greening has now ordered a major review of council policies about school transport provision for disabled children. In particular she has received concerns that some parents were receiving misleading advice.

Councils are being forced to make hard choices in the face of ‘sustained financial challenges’. As the Economist reports since 2010 the budget deficit has been reduced from 10% to 4% of GDP; by 2020 it is forecast to be almost eliminated: “To achieve this, the government has slashed spending. Hardest hit has been the Department for Communities and Local Government, which provides councils with most of their funding”.

Adrian Goldberg, the 5Live presenter, reports that one or both of their parents have had to cut down their hours, or give up work completely, in order to get the children to school.

One example is that of Christine Anderson who had to leave her job to make a 60-mile round trip to school with her 15-year-old son Christopher, who has physical and learning disabilities including spina bifida and hydrocephalus.

Jonathan Carr-West of the Local Government Information Unit, says “it is clear that some councils may soon be unable to meet their statutory duties of caring for the most vulnerable”.

261 complaints about school transport decisions were made to England’s local government ombudsman in 2015-16. The figure is a marked increase, says the ombudsman, Michael King. Only Disability United – outperforming all other media articles – gave a link to his report, All on Board, Navigating School Transport Issues, which recommends that councils should:

  • consult parents and schools on changes to individual pupils’ transport arrangements
  • provide clear and accessible information on eligibility for free transport
  • consider individual pupils’ transport needs “carefully and judiciously”
  • consider wider health and safety issues as well as mobility for special needs pupils

There have been campaigns about cuts to transport for children with disabilities over the years in many areas

Demo organised by Eleanor Lisney, a Coventry campaigner and member of Disabled People Against Cuts (DPAC)

The Coventry Telegraph, reporting on these cuts, pointed out that local authorities are required to provide travel assistance for all children who cannot reasonably be expected to walk to school because of their mobility problems or because of associated health and safety issues related to their special educational needs or disability.

 

 

 

 

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Austerity 1: next year, UK ministers required to report progress on reinstating rights of people with disabilities

Equal Lives chief executive Mark Harrison said: “In a very short space of time we have gone from having some of the best rights in the world to a crisis situation where people are dying because of the barriers and discrimination caused by austerity.” 

In 2015, a team of United Nations investigators began a two-week visit to the UK as part of an inquiry into allegations of “systematic and grave” violations of disabled people’s human rights.

Stephen Naysmith Social Affairs Correspondent of the Herald has reported that the UN Committee on the Rights of Disabled People has issued a 17 page report on the UK which contained more recommendations for improvement than for any other country in the committee’s 10 year history.

UK rapporteur to the committee Mr Stig Langvad, said the review had been “the most challenging exercise in the history of the Committee”, and criticised the government for failing to heed a 2016 inquiry which had found “grave and systematic violations of disabled people’s human rights.

He said Britain was “going backwards” in terms of meeting its obligations under the Convention on the Rights of Persons with Disabilities, particularly by failing to enable disabled people to have the same choice and control in their lives as people without disabilities.

Key among its concerns was the disproportionate impact of austerity-led cuts on disabled people, with the report claiming disabled people had been left in poverty

  • by cuts to benefits and support,
  • the closure of the Independent Living Fund,
  • the introduction of Universal Credit and
  • the change from Disability Living Allowance to Personal Independence Payments.

Last week committee chairwoman Theresia Degener described the impact of cuts on disabled people in the UK as a “human catastrophe”, a view she repeated at yesterday’s press conference.

The Scottish Government was praised for consulting disabled people over its plans for introducing a new social security system, under devolved powers.

UK ministers are required to report back on progress to the committee within 12 months.

 

Read more:

http://www.disabilitynewsservice.com

http://www.heraldscotland.com/news/15508062.UK_Government_cuts_driving_disabled_people_into_poverty__key_UN_committee_says/

 

 

 

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Austerity 2:  the income of a registered blind, wheelchair bound man cut by 42%

Were these judges aware of the United Nations condemnation of current violations of disabled people’s human rights?

A severely disabled man has lost his battle in the Court of Appeal over cuts by a local authority to his care funding. Luke Davey, was seeking to overturn Oxfordshire County Council’s decision to reduce by 42% his weekly personal budget, which provided a 24-hour care package.  He is registered blind, uses a wheelchair and requires help with all of his personal care needs.

Luke with his mother, who is 76

The council proposed to reduce funding for his care package in June 2015 when the Independent Living Fund (ILF) was closed by the government

Mr Davey, who has quadriplegic cerebral palsy and is registered blind, argued it threatened his well-being and breached the Care Act

The judges were told at a recent one-day hearing that Mr Davey and others like him have been seriously adversely affected by Government changes to the care funding system.

Critics of the Government say Mr Davey’s case illustrates how disabled people are suffering because ministers axed the independent living fund (ILF) in 2015 but failed to ring-fence sufficient money for the disabled under the new Care Act 2014, which makes cash-strapped local authorities responsible for funding all care needs.

Mr Davey attempted to overturn a ruling by High Court judge Mr Justice Morris which went against him. Three appeal judges ruled the council had not acted unlawfully. Lord Justice McFarlane, sitting with Lord Justice Bean and Lady Justice Thirlwall, rejected the bid, saying: “Like (Mr Justice Morris), I have great respect for the manner in which the claimant, his family and his team of carers cope with his difficult situation. But that is not the same thing as saying that the council’s actions have been unlawful.”

Mr Davey and his lawyers were given until September 18 to consider whether they wish to apply to the Supreme Court for permission to make a further appeal.

A spokesman for Oxfordshire County Council said it would continue to work with Mr Davey and his family to ensure he gets the essential services he needs . . . All local authorities who provide adult social care services against a background of financial constraints in the public sector are having to make difficult decisions.”

 

For more detail go to:

 http://www.oxfordmail.co.uk/news/15509161.Severely_disabled_man_loses_fight_against_huge_cuts_to_disability_payment/

http://www.bbc.co.uk/news/uk-england-oxfordshire-41122234

OR SEARCH:

https://www.disabilityrightsuk.org/

https://www.thecanary.co

http://www.telegraph.co.uk

 

 

 

Austerity 7: “Governments are balancing budgets on the backs of the poor” (John Grisham)

1. State Pensions

2.6 million women born in the 1950s will ‘lose out’ because of changes to pension law: “while corporations and the richest individuals receive tax breaks”

WASPIs (Women against state pension inequality) protest outside Parliament. Their aim: to achieve fair transitional arrangements for women born in the 1950s, for whom the state pension age is being raised from 60 to 66 by 2020.Photo: WASPI Campaign/Twitter

A Bournville reader draws attention to an article in Welfare Weekly reporting the findings of a new analysis by the Labour Party which reveals that tens of thousands of Theresa May’s constituents will be adversely affected by her decision to bring forward changes to the state pension age. The state pension age for men and women will be equal at 65 at the end of 2018, before rising to 66 in 2020 and then 67 in 2028. This will then rise again to 68 between 2037 and 2039, meaning those born between 1970 and 1978 will be made to wait an extra year before becoming eligible to claim.

Data obtained by Labour from the House of Commons Library finds that nearly 37 million people in total will be affected, including 56,547 people in Theresa May’s constituency of Maidenhead. 61,753 people who are under the age of 47 will be hit by the changes in Chancellor Philip Hammond’s constituency of Runnymede and Weybridge. 59,290 people will also be affected in the Work and Pension Secretary David Gauke’s constituency of South West Hertfordshire.

A BBC video clip showed that an outline given by MP Guy Opperman (right, Work and Pensions) of government measures to assist older people back into work, including apprenticeships and retraining received a mixed reception.

Labour’s Shadow Work and Pensions Secretary, Debbie Abrahams, said: “Thanks to the Tories increasing the state pension age, 36.9m people will be forced to work longer, at the same time that evidence indicates life expectancy has stalled in some places and is reducing in others.” She called on Tory MPs to “explain to the tens of thousands of people in their constituencies why the burden of Tory austerity is being pushed on them, while corporations and the richest individuals receive tax breaks.”

Abrahams added: “Theresa May should answer her 56,547 constituents, and the 36.9m people across Britain, whose hard-earned retirements are being postponed because of her Government.”

Labour is to begin a “national state pension tour” to draw attention to how many people will be affected and voice their opposition to the policy.

 

 

 

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Government alarmingly postpones action on climate change

Paul Simons adds to many ‘wakeup calls’ – writing about high temperatures, drought and wildfires.

On Thursday Spain broke the record for its highest temperature with 47.3C (117.1F) at Montoro, near Cordoba in the south of the country.

May and June were also phenomenally hot across Portugal, Italy, the Balkans, Greece and Turkey.

Heat and drought have helped to fuel wildfires in Spain and Italy, and wildfires near the seaside resort of Calampiso in Sicily forced the evacuation by boat of about 700 tourists on Wednesday night. In Greece the heatwave led the culture ministry to close archaeological sites around the country, including the Acropolis in Athens.

Together with a long-running drought, the heat has ravaged much of southern Spain, leading to a devastated wheat and barley harvest. If the arid conditions continue, there are also fears for the olive, walnut, almond and grape harvests and the wellbeing of livestock. Rainfall has been desperately low this year, but the country has been suffering from a lack of rain for five years.

Drought threatens to reduce cereal production in Italy and parts of Spain to its lowest level in at least 20 years, and hit other regional crops. Castile and Leon, the largest cereal growing region in Spain, has been particularly badly affected, with crop losses estimated at around 60 to 70%. While the EU is collectively a major wheat exporter, Spain and Italy both rely on imports from countries including France, Britain and Ukraine.

Deadly heatwaves for much of South Asia – yet many of those living there will have contributed little to climate change

The Guardian adds to the news from Europe: India recorded its hottest ever day in 2016 when the temperature in the city of Phalodi, Rajasthan, hit 51C. Another  study led by Prof Elfatih Eltahir, at Massachusetts Institute of Technology in the US, linked the impact of climate change to the suicides of nearly 60,000 Indian farmers.

The analysis, published in the journal PNAS, assesses the impact of climate change on the deadly combination of heat and humidity, measured as the “wet bulb temperature” (WBT). Once this reaches 35C, the human body cannot cool itself by sweating and even fit people sitting in the shade will die within six hours.

Prof Chris Huntingford, at the UK Centre for Ecology and Hydrology, said: “If given just one word to describe climate change, then ‘unfairness’ would be a good candidate. Raised levels of carbon dioxide in the atmosphere are expected to cause deadly heatwaves for much of South Asia. Yet many of those living there will have contributed little to climate change.”

Guardian journalists comment sarcastically, “But fear not: by 2040, no new diesel or petrol vehicles will be sold in the UK

This, apparently, is the appropriate timetable for responding to what a parliamentary committee calls a “public health emergency”. A child born today will be 23 by the time this policy matures – by then the damage to the development of her lungs and brain will have been done”.

Cold comfort

According to Professor Eltahir’s study, if emissions are reduced roughly in line with the global Paris climate change agreement there would be no 35C WBT heatwaves and the population affected by the 31C WBT events would fall from 75% to 55%. About 15% are exposed today.

A National Geographic article says most people agree that to curb global warming a variety of measures need to be taken. On a personal level, driving and flying less, recycling, and conservation reduces a person’s “carbon footprint”—the amount of carbon dioxide a person is responsible for putting into the atmosphere.

At present, lorries shifting identical goods in opposite directions pass each other on 2,000-mile journeys. Competing parcel companies ply the same routes, in largely empty vans – a theme explored by MP Caroline Lucas and Colin Hines in 2003 – the Great Trade Swap.

It describes airports as deadly too – yet government and opposition alike are ‘apparently hell-bent’ on expanding Heathrow, exploring airport expansion projects elsewhere and seeking post-Brexit trade deals with distant countries.

To reduce the risk of ever more extreme weather, we must reduce the amount of fossil fuel we are burning – and the measures taken will have other desirable consequences as the following cartoon shows:

Parliament must listen to its Committee on Climate Change – chairman John Gummer. As the East Anglian Times reported in June, its annual progress report calls for “urgent” plans to meet legal targets for carbon cuts by 2032 as greenhouse gases from transport and buildings continue to rise.

The committee advocates action to bridge the gap between existing policies and what is needed to achieve required emissions reductions by the mid-2020s – boosting electric vehicles and cutting greenhouse gas emissions from the heating of homes to help to meet UK climate targets.

 

 

 

 

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