Category Archives: Finance
Today the National Audit Office – the public spending watchdog – recommends that the government reconsider whether more nuclear plants are needed and reproves ministers for failing to consider alternative ways of the costs of the Hinkley nuclear power plant, which could have halved the overall cost to households.
The NAO found that the case for building Hinkley Point had weakened while the government negotiated the final deal, partly because alternative low-carbon sources of power, such as wind and solar, became cheaper.
The plant is under construction in Somerset and is due to open in 2025, supplying 7% of Britain’s electricity. However, the NAO report recommends that the government produce a “plan B” to fill the gap in power generation if the project is delayed or cancelled. It notes that projects using the same reactor design in France, Finland and China “have been beset by delays and cost overruns”.
Note senior politicians or members of their families lobbying for the nuclear industry
- Three former Labour Energy Ministers (John Hutton, Helen Liddell, Brian Wilson)
- Gordon Brown’s brother worked as head lobbyist for EDF
- Jack Cunningham chaired Transatlantic Nuclear Energy Forum
- Labour Minister Yvette Cooper’s dad was chair of nuclear lobbyists The Nuclear Industry Association.
- Ed Davey, Lib Dem energy minister’s brother worked for a nuclear lobbyist. When failed to be re-elected went to work for the same nuclear lobbying firm as his brother.
- Lord Clement Jones who was Nick Clegg’s General Election Party Treasurer was a nuclear industry lobbyist.
- Tory Peer Lady Maitland is board member of nuclear lobbyist Sovereign Strategy.
- • Bernard Ingham, Thatcher’s press spokesperson, has been nuclear lobbyist for over 25 years.
- Tory Peer Lord Jenkin was a paid consultant to nuclear industry.
- Tory MEP Giles Chichester is president of nuclear lobbyists EEF
Comment from a Times reader who has long held significant reservations about Corbyn and McDonnell, ”Putting aside their sixth form foreign policy, I’m just about willing to give Labour a shot. If we’re going to have somebody (botching) the public finances I’d rather they did it out of well-meaning innumeracy – with some good ideas like a National Education Service & renationalised railways . . . “
Other nuclear industry lobbyists including politicians, journalists, academics and lobbyists are listed here: http://powerbase.info/index.php/Category:Individuals_linked_to_the_push_for_nuclear
On Nicky Campbell’s Radio 5 phone-in a listener described a city where – at one extreme – her care-worker son earns £17,000 a year, whilst George Osborne gets £200,000 for delivering one speech.
“In Harrods they have sprinklers to protect china dogs”
Noting the lack of attention to the repeated and recorded complaints made by the Grenfell Tower residents she asserted that had they come from the affluent area of Kensington they would have been quickly addressed and added a searing afterthought: “In Harrods they have sprinklers to protect china dogs” – but as London MP Harriet Harmon noted, the government has been cutting the money to councils. If you cut money to councils, you can’t put in sprinklers
Campbell’s caller also denounced the proposals made by developers referring to the burnt tower as being a orime brownfield site, insisting that the residents should be rehoused in the same area during the rebuilding process instead of being sent to outlying areas or even different parts of the country; as they work hard in lowly paid jobs they should not also have to spend time and money travelling long distances to work.
Following a link sent by Felicity Arbuthnot we read the words of Jeremy Corbyn, (seen here with a local resident seeking a 12-year-old girl missing after the Grenfell Tower blaze): “Kensington is a tale of two cities – it is among the wealthiest parts of this country but the ward where this took place is one of the poorest”.
Like the Radio 5 caller he emphasised that residents must be re-housed, using requisition of empty properties if necessary, in the same neighbourhood, adding:
“The judge-led public inquiry must be speedy and all residents should have access to legal aid and the support they need”.
News of the long campaign against the proposed Javelin Park incinerator was read by many visitors to this site in 2013 and 2015.
This year, campaigners obtained a copy of the contract, after using freedom of Information rules, and the monitoring officer at Gloucestershire County Council has now been asked to investigate whether the leader and his deputy exaggerated the cost of backing out of a plan to commission a £500m waste incinerator.
A resident of the county was contacted and replied that she had read about the discovery in the Gloucester Citizen, which republished an account from Gloucestershire Live, but neither account may now be found online. A search reveals no mainstream media reference to the subject.
Public Sector Blogs drew on an account by Tim Davies, co-founder of Open Data Services Co-operative, co-director of Practical Participation, affiliate at the Harvard Berkman Center for Internet and Society:
“The claim made to council on 18th Feb 2015 that it could cost £60m – £100m to cancel the contract appears to be based on calculations from officers, and/or Ernst and Young which have not been published by the authority (perhaps another EIR or FOIA request will be needed here…). The Tribunal ruling refers in Paragraph 27 to a document from Ernst and Young presented to Cabinet in November 2015. However campaigners reading the unredacted contract cannot find the substantiation for the cancellation costs being so high before the facility is operational. It appears breakage before the plant is in operation could cost substantially less than the break-points once it is up and running – and possibly even lower than the £30m the Council has subsequently committed from reserves to cover shortfalls in the project”.
Community R4C, a community-led project promoting a circular economy in Gloucestershire, which published local media accounts of the recent discovery here, has now gone to the council’s external auditor, Grant Thornton. With the help of the Environmental Law Foundation, a case has been put together which, it believes, shows the Urbaser Balfour Beatty (UBB) contract is not value-for-money. It has also approached the Competition and Markets Authority, claiming that Gloucestershire’s contract breaks competition law.
A contributor to Private Eye magazine reports that environmental law expert Raymond Purdy, a senior fellow at Oxford University, has complained about the way Gloucestershire council leader Mark Hawthorne and deputy Ray Theodoulou presented financial details to a crucial meeting. As Tim Davies noted above, it was claimed that to opt out of the contract already signed with UBB would potentially cost £100m.
ELF elaborates: “The contract, originally signed in 2013 and then renegotiated in 2015, for the £500 million incinerator was awarded to Urbaser Balfour Beatty although details on pricing and information on termination were only made public following an Information Tribunal ruling in March this year (2017). In light of this information, and after seeking assistance from Counsel through ELF member, Duncan Sinclair of 39 Essex Chambers, R4C lodged a complaint with the CMA on 21st March that the Javelin Park contract breaches the Competition Act 1998. R4C believe that the exclusive contract is anti-competitive and prevents technological innovation, imposing a huge financial burden for years to come. They state that:
- the price paid by GCC for waste disposal for a minimum amount is 10 times the next tranche, thereby creating ‘de facto’ exclusivity and foreclosing the market for waste treatment (including eliminating incentives to recycle/move higher up the waste hierarchy);
- there are excessive termination costs thereby enforcing the ‘lock-in’; and
- the 25-year contract prevents newer, cheaper and more efficient/environmentally friendly alternatives developing to the detriment of consumers in terms of not only price but also their interest in the environment (both local and more broadly).
If the complaint is upheld there would be serious consequences for Gloucestershire County Council and the residents they are elected to represent.
An audience seriously considering the proposal
With thanks to the reader working in Uganda who sent the Hitchens link and remembering another who yesterday advocated ABC voting, ‘Anything But Conservative’.
Peter Hitchens insisted, some time ago, that a lot of people feel left out of the recovery we are supposed to be having, and they need a powerful voice in Parliament, adding:
“There is nothing good (or conservative) about low wages, insecure jobs and a mad housing market which offers nothing but cramped rooms and high rents to young families just when they need space, proper houses with gardens, and security . . .
“The truth is that both major parties have been taken over by the same cult, the Clinton-Blair fantasy that globalism, open borders and mass immigration will save the great nations of the West. It hasn’t worked. In the USA it has failed so badly that the infuriated, scorned, impoverished voters of Middle America are on the point of electing a fake-conservative yahoo businessman as President”.
Hitchens concludes that many Labour MPs have more in common with Mrs May than with Mr Corbyn and will ‘snuggle up beside her absurdly misnamed Conservative Party’.
He believes that the British public will at last see clearly that their only response is to form an alliance against the two big parties: “Impossible? Look how quickly this happened in Scotland”.
This Green House pamphlet with contributions from Molly Scott Cato MEP, Victor Anderson, Rupert Read, Jonathan Essex and Sara Parkin was written before the EU referendum and the economic and political turmoil which has followed but the authors believe its analysis and conclusions are still valid.
In her introduction, MEP Molly Scott Cato points out that a route to a more positive future offering hope to the majority of citizens is blocked by our archaic and unrepresentative electoral system which enables one party to control so much power with a minority of the votes cast. She continues:
“Our primary target is our electoral system. In the 2015 general election the Green Party received 1 million votes but only one parliamentary seat. By contrast the Scottish National Party received 1.5 million votes and 56 seats.
“This is the logic of first past the post . . . but as voters move into a multi-party future the system entrenches political stasis and blocks progressive change”. Later she cites Germany as the most striking example of a country that has benefited from Greens in power:
“Its industries are successful because Greens in government encouraged them to move into the new era of low carbon energy production before other European countries. Germany has turned its back on the nuclear age and is rapidly phasing out fossil fuels. Germany is the economy in Europe that is benefiting most from the energy transition that dangerous climate change requires of us. It is Greens in government who enabled this process”.
She, and other Green House members invite everyone who wants to see an alternative to continued Conservative government to join in the discussion about what that alternative can be.
“Labour is never going to be back on 44% in the opinion polls. The electorate is too fragmented for that, and above all Labour’s electoral base is too fractured for it ever to happen again”.
(Ed: we note that the British Labour Party is already one of the parties and organisations from over 90 countries which participate in the International Progressive Alliance network of social-democratic and progressive political parties.)
Gilbert continues: “Would you rather it happen now, while the Left retains the leadership of the party, or in five or ten years time, when the Right is back in control? Would you rather have a Progressive Alliance, or an alliance of revanchist Blairites, (May)ites and ‘Orange Book’ Liberal Democrats? Because if we do not seize the initiative now, then the latter is what we are going to get, soon enough. This is going to happen sooner or later”.
A reader from Bournville draws attention to an article by Jules Birch in Inside Housing, a weekly magazine for housing professionals. He focusses on a recent TV Panorama programme about the benefit cap that now leaves thousands of people with 50p a week towards their rent.
He noticed that roughly 95% of tweets with the hashtag #benefitcap (scroll down to April 7) were hostile to the people featured in the programme rather than the policy. The majority of people commenting on Twitter were seeing the undeserving individual instead: the stroppy single mother with a mobile phone and the couple with many children. He notes that exactly the same thing happened with Benefits Street, How to Get a Council House and a Dispatches documentary on the cap last month.
Part of the problem, he believes, lay with the way Panorama framed the issue. As Joe Halewood was quick to point out, the programme and its advance publicity seemed to assume that most people capped are unemployed and on Jobseeker’s Allowance, when in fact just 13% are.
The fact that the vast majority of people capped are either unable to work or not required to work was only raised tentatively halfway through the programme. Most of those capped are lone parents with young children who are not required to look for work, or people on Employment and Support Allowance who do not qualify for an exemption but are still not fit for work.
David Pipe explained the effects in a piece following the Dispatches documentary last month. 7,500 households across 370 local authority areas have lost their housing benefit and are now receiving just 50p a week to pay their rent. The cap leaves a nominal amount for housing benefit or Universal Credit once someone’s benefits total more than £20,000 (£23,000 in London). In effect it is imposed on top of the rest of the benefits system.
The latest budget highlighted cuts for the poorest 18-21-year-olds, who will no longer be entitled to help with their rent through Universal Credit from April 1.
For many, Discretionary Housing Payments (DHPs) are the only thing keeping them in their home and the effect over time will be rising rent arrears and evictions and allocations policies that make it less likely that people on benefits will get a tenancy in the first place. So where and how can the poorest people live? Even people in caravans are being capped, and what will the knock-on costs be in terms of homelessness and the impact on the children?
Meanwhile in Broken Britain, the May government continues the policies of its predecessors and makes decisions which seriously afflict the poorest and greatly benefit the richest: the arms traders, Big Pharma, the privatised utilities, large developers, car manufacturers, private health companies and expensive, inefficient outsourcers – Serco, G4s and Capita.
Will agri-business be allowed to charge ahead, imposing genetically modified food on an unwilling public?
The work is publicly funded through a £696,000 grant from the government’s UK Biotechnology and Biological Sciences Research Council and $294,000 from the US Department of Agriculture. Other partners include the universities of Lancaster and Illinois.
In a move mirroring the 2015 proposals for the sale of the British people’s (somewhat Green) Investment Bank (GIB) Patrick Hosking, Financial Editor, has reported in the Times that another ‘secret privatisation plan’, involving the people’s British Business Bank, has been delayed by a legal challenge.
In 2015, plans to part-privatise GIB were announced by Business Secretary Sajid Javid (more detail here). The House of Commons’ Environmental Audit Committee warned this could cause the bank to lose its “green identity”, But the government predictably said “the time is right” for the bank to be privatised. CityAM reported that in February MPs questioned government over the proposed sale, expressing fears that this would be an asset-stripping venture by MacQuarrie.
However the proposals may well have been abandoned – for a time. The Murdoch Times’ suggests that ministers were ‘rattled’ by the legal challenge to the separate planned privatisation of the Green Investment Bank. Its sale to Macquarie, the Australian infrastructure investor, after talks described as ‘exclusive’ in a later post by CityAM, is going to judicial review after a challenge from Sustainable Development Capital, a rival bidder.
A spoke in the privatisation wheel? This challenge has affected:
- the planned sale of a portfolio of government business loans, packaged into a ‘high-yielding listed investment vehicle’, currently owned by British Business Bank plca state-owned economic development bank established by the UK Government.
- and the ‘planned move’ by the ubiquitous Baron Smith of Kelvin (above,centre), the Green Investment Bank chairman, to chair the British Business Bank, which has been without a permanent chairman since October.
What is going on behind the scenes? Why are the British people the last to know in our ‘vibrant democracy’? BIS declined to comment last night but a source close to the discussions is reported to have said: “It’s a bit baffling why stumps were pulled at the last moment. Everyone was all signed up for it.”
In a recent post on this site, economist Martin Wolf (FT) was quoted, reminding readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.
He continued: “Was Mrs May’s speech hypocritical? Yes”. (See MP Dawn Butler, 2nd paragraph)
In similar vein, Jenni Russell writes:
“The president’s actions are more important than his words, and they are a betrayal of his voters
“President Trump is brilliant at diversionary tactics, whether tweets, tantrums, or executive orders that may or may not mean anything in practical terms. His speech to Congress was another in his string of conjuror’s illusions.
“Breitbart and the Trump base adored it for its promises to put American workers first, improve their healthcare, incomes and education, cut their taxes, and protect them from danger abroad and immigrants at home. Trump’s liberal critics were momentarily dazzled to find that for at least an hour the president was capable of addressing the nation in a reasonable, conciliatory tone. But we now know that Trump’s public promises and assertions are so full of contradictions that they cannot be taken either literally or seriously.
“Instead we have to scrutinise the practical consequences of the policies his team is implementing. The effect of these won’t be to transform the lives of the people he swore to champion. They will make the rich much richer at the expense of the middle class and the poor”.
She notes that Trump’s tax plan is overwhelmingly skewed towards the wealthy:
- America’s Tax Policy Centre shows nearly half of the total tax cut will go to the top 1% of taxpayers.
- Almost a quarter will be spent on the richest 0.1%, households that earn above $3.7 million a year.
- The middle fifth of households, earning an average of $65,000, will gain just a thousand dollars.
- Less than 7% of the total cost of tax cuts will be spent on them.
- Because Trump intends to drop tax exemptions for children, some families earning less than $50,000 a year will actually see their taxes rise.
- The budgets for education, childcare and medical research will be slashed by at least 15% per cent.
- Trump proposes to end the state tax, which affects only the top 0.2 per cent of the population.
- His proposed cuts to corporation tax range from 35 to 20%
This surreptitious transfer cannot be what Trump supporters expected
Jenni continues: “Trump’s promise to create jobs through a vast infrastructure plan are equally tilted towards the rich. Investors will be offered tax breaks costing $137 billion to encourage them to invest a trillion dollars in projects that offer potential returns from fees or tolls. And far from bringing jobs to depressed regions, the projects will be skewed towards wealthier areas, because there will be no incentive to invest in areas where there’s no hope of a financial return, like the crumbling roads of the Appalachians”.
Still justified by demonstrably failed trickle down theory
Republicans defend this kind of unbalanced reward as they always have, arguing that the more money individuals keep, the more they will spend and the more everyone will benefit. These policies – in addition to the cuts Trump is demanding to pay for his boom in defence spending – will add huge sums to the deficit and drastically shrink the money available for public programmes. Jenni ends:
“Trump promised to protect his voters but the gulf between what he pledged and what he’s delivering is evident everywhere. His teams are busy dismantling consumer, financial and environmental regulations that prevented ordinary people being fleeced or having their land and water defiled. His supporters stubbornly believe in him but they are being betrayed. There can only be more fear and disillusion to come”.
Meanwhile Wall Street is soaring in anticipation, with the Dow Jones breaking the 21,000 barrier for the first time within hours of the speech. That extra money will overwhelmingly go into the bank accounts of those with the most shares – and the May government now turns from squeezing the disabled to the bereaved, successfully passing drastic cuts in payments for which national insurance contributions had been made and raising probate fees.
*Trumpton and Mayhem: first passing reference made on Our Birmingham website by architect David Heslop, moving towards employee ownership.
Saturday 4th March
The BBC reported that Jeremy Corbyn called for the government to provide more funding for the health service in next week’s Budget. Speaking to the protesters in Parliament Square, he said: “The NHS is in crisis because of the underfunding in social care and the people not getting the care and support they need. It is not the fault of the staff. It is the fault of a government who have made a political choice.”
The protest organisers say the government’s proposed Sustainability Transformation Plans (STPs) across the NHS in England are a “smokescreen for further cuts” and the “latest instruments of privatisation”. These proposals involve the complete closure of some hospitals and the centralising of some services such as A&E and stroke care on fewer sites.
Deputy chairman of the British Medical Association council Dr David Wrigley said the march was “a cry for help for anyone who uses the NHS” which was “in such a desperate situation. We need to highlight it. As a doctor I see day to day the serious pressures in the NHS due to the funding cuts from the government”.
Saturday 4th March: at 6pm
The Independent featured Ben Bradshaw (former minister) praising Blair and blaming Corbyn’s leadership – ‘the one issue on the doorstep’
Saturday 4th March 11pm (updated 4am on 5th)
“Unlike other politicians who spend weekends with corporate lobbyists &wealthy donors, John McDonnell is out on the street 4 the #OurNHS demo”
Sunday 5th March 4am
The Sunday Express: Corbyn in crisis – and no doubt more will come
Saturday 4th March 11pm (updated 4am on 5th)
The Daily Mail usefully quotes Ken Loach explaining why these particular MPs are disgruntled: “It was their Labour Party, not Corbyn’s, that lost Scotland, lost two elections and has seen Labour’s vote shrink inexorably. Yet they retain a sense of entitlement to lead.”
Strangest of all, the Times and FT (online editions) decide not to mention the demonstration.
The Times online did not carry its usual daily onslaught on Corbyn and the Financial Times online which regularly publishes biassed articles about JC – often by Jim Pickard – has no reference, merely a bland, skimpy article by David Laws: “UK reaches socially acceptable limits of austerity . . . the NHS needs a settlement which allows for rising demand and an ageing population”.
Their carefully selected and daily shown photographs and cartoons of the Labour Party leader are not to be seen? What does this mean?