BLEAK 2012 IN PROSPECT BUT LABOUR OFFERS HOPE

Polly Toynbee wrote in today’s Guardian that in her political lifetime, she “has never seen a more callous or inept crew in charge.” I couldn’t agree more.

The New Year will see even more cuts and the prospect of the country lurching into another recession looms large.

The callous incompetence of this dreadful Tory-Lib Dem coalition makes a toxic governmental cocktail that is plunging Britain into a modern-day Dickensian era.

The rich kids in charge at the top of our Government have never wanted for anything in their lives. The pandered brats have grown into adult brutes dishing out misery on people less fortunate than themselves.

They lived their childhoods and adolescent years in a cocooned world where their whims were indulged and their privileged adult lives are a million miles from the rest of us.

And yet they continually spout their Orwellian mantra that “we’re all in it together”. What utter tosh!

Even Margaret Thatcher’s reign was not as cold-hearted as these Bullingdon bully boys and their obsequious quisling collaborators in the Lib Dems.

With almost 2,000 people losing their job every day and pitiless benefit cuts coming into effect, 2012 will be a bleak year indeed for the victims of Messrs Cameron, Osborne and Clegg.

That is why we must stand up for the role of "the state" in generating economic growth and regulating capitalism. The ‘state’ AKA ‘big government’ is despised by those advantaged Tory Ministers but it provides a lifeline to millions of ordinary people.

Let’s remember ‘big-government’ is doctors, nurses, teachers, park keepers, police, fire-fighters, tax collectors, social workers, street cleaners and others occupations that make our society a decent place to live.

Let’s remind people that Labour Governments use the state to improve life for most people. From lower crime to reducing NHS waiting lists and better chances for more children to improved security in old age.

Labour must offer hope in 2012 and with more local authorities likely to go Labour in May’s council elections, Labour in local government can act as a bulwark against Government excesses.

Mr Cameron might well have secured a short term bounce from his EU veto, but as the cuts bite even harder in 2012, the cruel Tory truth will emerge. That is why Labour must remain the standard-bearer for fairness in the New Year showing people there is a better and a fairer way forward.

TWO THIRDS SAY NO TO REPEAL OF HUNTING ACT

A poll commissioned by the League Against Cruel Sports has shown that a free vote on repeal of the Hunting Act is the least popular pledge on animal related issues by the Tory-Lib Dem coalition. YouGov polled 2,126 adults between 14th - 16th December

The results released today, the most popular day on the hunting calendar, show that just 6% of people ranked bringing forward a free vote on repeal, as the most important pledge among a selection of animal related commitments by the coalition Government.

Almost half of people asked (48%) rated it as the least important.

Targeting irresponsible owners of dangerous dogs was seen to be the most important action with nearly a third of people (32%) saying they believed this to be the top priority from a choice of animal welfare commitments.

The poll by YouGov found support for the Hunting Act remains consistently strong with 69% agreeing that the ban on hunting wild animals with dogs should remain in place. Just 22% said they disagreed with this while 9% said they didn’t know.

It comes as no surprise that the public has shown there is no appetite to waste parliamentary time on voting to repeal the Hunting Act. The figures speak for themselves and poll after poll show that the public support for the Hunting Act is overwhelmingly high.

The vast majority have absolutely no desire to see wild animals being legally abused, chased to exhaustion and then torn apart in our countryside.

The League recently published a report showing the extent of artificial fox earths being maintained in areas known to be used by hunts. An undercover operation has recorded undisputable evidence that individuals, believed to be from the hunting community are encouraging foxes in artificial earths.

League investigators have found evidence of earths which have been built or renovated since the passing of the Hunting Act where food and water is being supplied. The evidence has been passed to relevant local authority trading standards departments and where appropriate, the police where investigations are ongoing.

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FEARS FOR BRITISH BUSINESS IN DERBY AS UK LOSES VITAL INFLUENCE AFTER EU SUMMIT

As the ramifications emerge from David Cameron’s decision to walk away from the negotiating table and use the UK’s veto at the recent European Council, it is increasingly clear that British business is now worried.

There is uncertainty for business looking to plan for the long-term. There are concerns over the impact on exports, on inward investment and whether global firms will put their operations in Britain. There are worries over our influence of the operation of the single market, the biggest market for British firms.

Business leaders have asked what it will mean for Britain’s economy. The CBI’s Director General John Cridland has said that we are in “uncharted territory” and has questioned whether, given the UK’s increasing isolation, whether we will “still be in a position to stop new financial regulations that come about as the eurozone becomes more integrated”.

These concerns have been echoed by the body representing British manufacturers, the EEF: “it's going to affect how we engage with our EU partners on a daily basis”. Sir Martin Sorrell, boss of FTSE 100 firm WPP, has said: “I’d prefer to be inside the tent not outside. Change is easier to achieve from within. It seems to be more about politics than economics.”

The Prime Minister claimed he used the UK’s veto to protect the financial services sector. However, no safeguards were won. Financial regulation is decided by qualified majority voting at European Councils - this was true before the Prime Minister’s veto, and afterwards - and the UK has never lost a vote in this area. But following recent events, the fear is that Britain’s ability to marshal a majority has been compromised and we will be shut out of discussions on financial services regulation. In short, our ability to defend financial services in the UK has been hampered, not enhanced.

The implementation of the Financial Transaction Tax – another ‘justification’ for the veto - wasn’t on the agenda of the Council meeting and in any case a Financial Transaction Tax could only have been implemented following a unanimous vote by all member states of the EU. This was true before the meeting and is true after. Again this questions the rationale of David Cameron’s decision.

But there are now real concerns being expressed by British businesses that firms will lose out following the UK’s loss of influence in the single market. They say Britain’s ability to attract inward investment could be weakened and global corporations could be less likely to set up operations or European headquarters in the UK in the future. Businesses are worried about the uncertainty that has been created.

On top of this, the Prime Minister’s decision has done nothing to tackle instability and the lack of growth in the Eurozone which, as our main export market, is crucial for our firms.

These are challenging times ahead for firms and that is why I‘m going out talking to local businesses, including larger firms with operations and offices in our area, to understand their concerns so I can press the Government on what this means for jobs and growth here in Derby.

STOP THIS ECONOMIC TAILSPIN BEFORE IT’S TOO LATE

HOW much longer is this Government going to pursue its catastrophic economic experiment that is having such a devastating impact on jobs and prosperity?

More families are facing Christmas without a job than at any time since the Conservative Party was last in power in the early 1990s.

Last month saw unemployment hitting a new high and the depressing fact is that there is no end to this misery in sight. In the last three months alone, for every job created in the private sector 13 jobs were lost in the public sector.

But what is so extraordinary is that the Government continues telling us that there is no alternative, even though its policies are going so spectacularly wrong.

Youth unemployment is up by 54,000 and now stands at 1,027,000. Long-term unemployment among people aged 50 plus has gone up by 21.3% since January and the number of unemployed women is the highest it has been since 1988.

The truth is the country is crying out for a different approach. Labour's five-point plan for jobs and growth offers a way for the Chancellor to halt the frightening economic tailspin the Government's policies have caused.

On Wednesday, the House of Commons debated a Labour motion urging the Government to reconsider its refusal to adopt our plan.

We argued getting people back to work was a better way to reduce the deficit and secure Britain's future economic prosperity.

But the combined voting strength of Conservative and Liberal Democrat MPs meant that Labour's motion was defeated.

The five-point plan includes creating 100,000 jobs for young people and building 25,000affordable homes using funds raised from a tax on bank bonuses.

It also incorporates bringing forward long-term investment projects, temporarily reversing January's VAT rise and a one-year cut in VAT to 5% on home improvements.

These measures would generate jobs and growth, as would our proposal to give small firms, which take on extra workers, a one-year national insurance tax break.

But if the Conservatives and Liberal Democrats won't listen to Labour, they should at least take account of the considered view of the International Monetary Fund.

The IMF has said if the economy continues to stagnate the Government should slow the pace of cuts and tax rises.

However, it seems this Tory-led Government is determined to plunge us into a new Dickensian era. There are parallels with Charles Dickens novel 'A Christmas Carol' and George Osborne seems to be doing his best to emulate Ebenezer Scrooge.

People will remember Scrooge was a cold-hearted, tight-fisted and greedy man, who despised Christmas and all things which gave people happiness. The evidence of the last 18 months suggests that Scrooge would have certainly fitted the job description for a modern-day Tory Chancellor of the Exchequer.

But in the end, Scrooge did at least redeem himself by changing his ways and I hope Mr Osborne will do likewise. I have just sent him copy of 'A Christmas Carol' in the hope that he adopts the moral of this Dickensian tale. Time will tell if he does.

TORIES LIVING IN FANTASYLAND ABOUT EU TREATY

BUDGET CONTROL
Tory myth: “We didn’t sign the treaty because we do not want our tax and spending decisions to be made in Brussels.” (Michael Fallon 10 December 2011, BBC: “Michael Fallon.... said the UK did not want its tax and spending decisions to be made in Brussels”)

Truth: There was never a suggestion that countries outside the Eurozone be forced to follow tax and spending rules set by anyone. The Statement is signed by the Euro heads of state or government, and the provisions for a “fiscal stability union” explicitly apply only in the Euro area. The countries outside the Eurozone that have agreed to sign the treaty will not lose any fiscal policy control as a result of this treaty, and the summit statement commits them only to “indicate the possibility to take part in this process after consulting their Parliaments when appropriate”.


FINANCIAL TRANSACTION TAX
Tory myth: “We didn’t sign the treaty to prevent the other 26 EU countries from imposing a financial transaction tax on Britain” (Daily Telegraph, 9 December 2011, “Tories fear an enhanced euro group could try to impose a financial transactions tax on Britain”)

Truth: The EU summit changed nothing. We have always had a veto on new taxes that would apply in the UK, ever since we joined the European Economic Community nearly 40 years ago. We had a veto on Thursday and we have a veto now.


THE NEW TREATY AND EU INSTITUTIONS
Tory myth: “We didn’t sign the treaty to prevent the new treaty from being justiciable under EU institutions.” (George Osborne’s claim: "We've protected all these industries from the development of eurozone integration spilling over and affecting the non-euro members of the European Union.”)

Truth: Not signing the treaty has made no difference to whether or not the treaty will use EU institutions, and in particular whether the European Court of Justice will have jurisdiction and be able to build case law based on the treaty. Article 273 of the EU Treaty says “The Court of Justice shall have jurisdiction in any dispute between Member States which relates to the subject matter of the Treaties if the dispute is submitted to it under a special agreement between the parties.”


PROTECTING FINANCIAL SERVICES
Tory myth: “We didn’t sign the treaty to protect the City of London from destructive European regulation in the future.” (David Cameron, repeatedly)

Truth: There is not a single reference to financial services in the 16 paragraphs of the Euro heads of state conclusions published on Friday. Irrespective of that, by not signing the treaty, we have failed to secure a single safeguard for UK financial services going forward. We have no assurances about whether financial services will be discussed by the new monthly meetings of the 26 EU countries.


SINGLE MARKET AND MAJORITY VOTING
Tory myth: “We didn’t sign the treaty to protect the City of London against majority voting in the future.”

Truth: Financial services, like all other aspects of the single market (except tax), have always been decided by qualified majority voting. David Cameron’s proposals were not about the future treaty but about undermining the existing treaty: his proposal was to unpick the rules of the single market that have been in place since Margaret Thatcher’s Single European Act was passed 25 years ago.

David Cameron’s vision of the single market is incoherent. The single market is overwhelmingly in our national interest, and – as Lord Cockfield and Margaret Thatcher understood – it requires majority voting among the 27 countries to function properly. If every country could carve out protection for their chosen industry, there would be no common rules across the market in which 60% of our exporters do their business, and the single market would fall apart.

THE SELFISH CITY WON'T REPAY A NATIONAL SACRIFICE

The Independent published this excellent article on Saturday 10 December 2011 by Nicholas Faith


Let us hope that the City – and above all the hedge funds which contributed so generously to the Tory war chest – are happy.

For in the early hours of yesterday, David Cameron made it clear that the well-being of London's financial community was a vital element in Britain's economic well-being. So crucial, in fact, that it formed the key reason – or was it just a convenient excuse? – for the decision to ruin our relationship with the European Union, and above all with its dominant forces, France and Germany.

Cameron's veto of the EU treaty change needed to save the euro could prove an exceedingly expensive gamble, politically and economically for him – and indeed for the whole country. It also turns the spotlight on what the City can do in return for the Prime Minister's loyalty. In theory, it should lead the City to help the rest of a country that has taken such a risk on its behalf. But this would set a historic precedent in 2,000 years which, unfortunately, show that London has always been a selfish, insular place invariably independent from the rest of the country, looking abroad for its living, and perfectly capable of ignoring the wishes of successive governments up-river in distant Whitehall, let alone the needs of the wider economy by providing funds for industrial development.

The City's neglect is based on a fundamental inability to think long term, for the Square Mile has always been a home for traders rather than investors. The tradition of trade and finance has been reinforced by a steady stream of immigrants reaching back over the past two millennia. In Roman times, they came from as far as North Africa. Since then, the City has always flourished because of incomers, Dutch and Danes, Huguenots, Jews – and, today, as many as 300,000 young Frenchmen.
For centuries, the greed and short-sightedness of the City's denizens have made them a target: in the 18th century, Jonathan Swift described the jobbers as "traders waiting for shipwrecks in order to strip the dead". Alexander Pope was just as sharp: "There's London's voice, 'get money, get money'."

The industrial revolution emphasised that the rest of the country lacked any real business connection with London. In the 19th century, great manufacturing cities – Birmingham, Manchester, Middlesbrough – boomed thanks to local finance. The biggest absorbers of capital, the railways, were originally financed by Quakers in the north east and by what was called the "Liverpool interest". As soon as the City got involved, there was the usual pattern of recurrent financial crises. For most of London's company promoters were crooked. During the 19th century, the London markets became steadily less connected with commercial reality. As the great Nathan Meyer Rothschild put it: "I am no trader in goods." By the end of century, the City was investing money everywhere from US railroads to the railway networks of Argentina, often with disastrous results, rather than at home.

There has been one previous attempt to fill the historic finance gap left by the City's reluctance to rally round. In 1945, the newly elected Labour government founded the ICFC (Industrial and Commercial Finance Corporation), funded by the clearing banks. The corporation aroused intense hatred in the City; the clearers declared that it was unnecessary, while the merchant banks hated it because it undercut their fees. Nevertheless, it provided a lot of money to worthy industrial borrowers.

In the early 1970s, the City taught a previous Tory prime minister, Edward Heath, not to rely on it – indeed, demonstrated clearly the damage that it could do to British industry. The damage was the work of a horde of adolescent asset strippers whose antics – mostly in the form of insider trading – destroyed many "ordinary" companies which provided actual goods and services. The leader of the pack – Jim Slater of Slater Walker – put their attitude clearly: "Let's face it: none of us here are interested in management." Their antics infuriated Ted Heath – and contributed to his downfall. As Anthony Sampson pointed out, by the 1980s "the Square Mile of the City has become like an offshore island in the heart of the nation".

Not surprisingly, the Thatcher years led the ICFC astray. In 1987, the banks sold their shares. It was renamed 3i, floated on the stock market, abandoned its former role and mutated into just another private equity fund investing more abroad than at home. Its story shows clearly how the very success of the City in the past 30 years has merely accentuated its irrelevance to the vast majority of British businesses. The City's inhabitants simply became richer, greedier – and more arrogant – fleecing any business foolhardy enough to look to place its shares on the stock market, or simply for capital for investment purposes.

If history was anything to go by, the arrival of a Labour government in 1997 should have helped. Sadly, Gordon Brown took his personal reaction against Old Labour to an extreme degree. Worse, he was obsessed by the City, which he saw as the only possible saviour for the economy and Fred Goodwin of RBS as his beau ideal of a businessman, and we know what that led to. Not surprisingly, barely any manufacturing jobs were created in the West Midlands, traditionally the heartland of the country's manufacturing sector, during his decade at the country's economic helm.

It was only in January 2009 that the improbable figure of Peter Mandelson resuscitated the idea by allocating the pathetic sum of £75m to a new enterprise fund. In the past year, Messrs Cameron and Osborne, the sons of a leading stockbroker and a wallpaper manufacturer respectively, have provided financial help to Britain's small and medium-sized businesses in the form of £1.5bn grant to the regional growth fund. But this was only a pilot scheme which will require the City to put up far more money to salvage manufacturing.

In theory, this week's demonstration of the City's power should at least persuade it to change the habits of two millennia and make a positive contribution to the economic welfare of the majority of the country which provides the nine-tenths of British economic life for which the City is not responsible. There will be an early test of a possible new relationship as the Government tries to persuade investors to provide long-term finance for long-neglected crumbling infrastructure. But the City is such a short-termist community that it may well not show any such gratitude. In fact, its inhabitants may even resent Cameron's support. Just remember the old saying: "Why do you hate me? I have never tried to help you."

CAMERON SELLS BRITAIN SHORT ON EUROPE

By Ed Miliband

This is the most important European summit for a generation and its outcome is looking increasingly worrying for the UK.

We have warned consistently that an isolated David Cameron has been on the sidelines of Europe for months, out of touch abroad in the same way as he is out of touch at home.

He has been hamstrung by the divisions in his own party, imprisoned by the Eurosceptics and his failure to confront his party over the last five years.

There are simple lessons to learn from the Prime Minister's failure last night. If you get out of the deal-making room as he has done over the last year, you end up losing influence. Having no allies is a sign of weakness, not of strength

There are serious questions to answer.

We need an assurance that Mr Cameron has not allowed a deal to emerge that means 25 of the 27 will rewrite the rules of the European economy without the UK in the room.

Will the signatories to the new treaty be able to impose economic barriers to those in the EU but outside the new treaty?

Will this new treaty be run by the EU institutions, and be enforceable in EU courts?

Will the UK have a seat at the table when vital economic decisions are taken?

Have we now got the two speed Europe Britain has always opposed, but without any of the safeguards the Prime Minister promised to deliver?

And for all the talk of treaty change, where is the plan for growth and jobs that should have been the other focus of this EU summit?

The list of questions are long and the answers will affect the jobs and lives of all British people.

We should have ensured an agreement that reflected a simple principle: decisions affecting all 27 members of the European Union must be made by the 27.

There is clearly a case for deeper cooperation by the Eurozone countries, but at the heart of British foreign policy, at the heart of our commitment to the EU, must be a basic principle that the future of the single market and future European cooperation is shaped by all the countries who are part of it, not just those who share the single currency.

The lesson for the Prime Minister is that to treat Europe as merely an excuse for the failure of your economic policy, or a problem to be negotiated with your backbenchers, serves us ill.

It makes us marginal to the big decisions on Europe. It is no way to run a foreign policy. And it lets down our country.

PROSPECTS FOR CONSTRUCTION WEAKEN AS NEW ORDERS FALL

The prospects for a recovery in construction output has weakened still further. The latest new orders figures from the Office of National Statics for the third quarter showed a fall of more than 5% compared with the same quarter last year. New orders in the first nine months of 2011 are 14% lower than in the same period last year.

Commenting on these figures, the Construction Products Association Chief Executive, Michael Ankers said: “Although new orders have improved since the previous quarter, this is still the lowest figure for Q3 since 1980. As expected the fall is sharpest in public sector construction – education, health, and social housing - and although there is some pick up in orders for private sector commercial work, this is heavily focused in London and the south east and is not strong enough to compensate for the sharp decline in orders for public sector work.

“Last week’s Autumn Statement brought the prospect of increased investment in infrastructure but the government’s figures show that this will not have any significant impact until 2013 at the earliest. As a result, and in the light of today’s new orders figures, the industry needs to brace itself for an even sharper fall in output in 2012 than that already anticipated.”

CAMERON'S NHS PLANS WILL COST DERBY ALMOST £18 MILLION

The hidden cost of the Government’s wasteful NHS reorganisation in Derby has been exposed. New guidelines will force the local NHS to put aside £17,723,338 from their budget this year and next to pay for a costly NHS restructure that David Cameron repeatedly ruled out.

These shocking new figures show the Government’s reorganisation is costing the NHS even more than I first feared. It is scandalous that our local NHS is being forced to hold back millions of pounds for the Tory led Government’s reckless plans whilst thousands of nursing jobs are being axed.

Derby has already seen a 224% increase in the number of patients waiting longer than 18 weeks for treatment since Cameron became Prime Minister.

Before his plans are even fully through Parliament, David Cameron's reorganisation is hitting the NHS hard and costs are now topping £3.4bn across the country for the first time. Spending this amount on an unnecessary reorganisation is totally unjustifiable when every single penny should be focused on maintaining standards of care.

At the election Cameron ruled out top-down NHS reorganisations. But only weeks after entering Number 10, he ripped up his own words and ordered the biggest and most dangerous upheaval of the NHS since it began.

The financial request is buried in the Government’s new NHS 'Operating Framework' document and takes the nationwide cost of the NHS reorganisation above previous estimates of £2-3bn, with Primary Care Trusts now holding back £3.44bn over two years.

The Bill will break up the NHS and create an unfair postcode lottery. With no national standards, there will be widespread variation in the treatments available on the NHS. In some areas, people may have to go private to get services available for free elsewhere.

The Bill risks even more rises in waiting times and a two-tier NHS. It scraps the cap on hospitals treating private patients at the same time as watering down guarantees on NHS waiting times. This means local hospitals will be free to treat more private patients and make NHS patients wait longer.

The Bill turns the NHS into a full-blown commercial market, putting competition before patient care. It allows private companies to cherry-pick quick profits, potentially forcing local hospitals to go bust. Hospitals could even be fined for working together.

The Bill undermines the bond of trust between doctors and patients. It creates conflicts of interest where financial incentives could interfere with medical decisions. GPs could even get a bonus for rationing patient care.

This Bill is wasting money and creating bureaucracy. It is unforgivable to spend £3.5 billion across the country on a reckless re-organisation when the NHS needs every penny it can get for patient care. Nearly £1 billion is being wasted on pay-offs for managers, only for many of them to be re-employed as consultants.

Last Thursday evening leading doctors from the British Medical Association voted to call for an immediate halt to the Government’s costly and controversial Health Bill.

People in Derby didn’t vote for it and our doctors, nurses and patients have already expressed huge concerns at the plans. Yet Cameron is ploughing on with his Health Bill, ignoring public and professional opinion. The time has come for him to listen, put the NHS first and drop his dangerous Bill.

Labour is running a major national drive to unite the country in a call on the Government to drop its unwanted Health Bill I would urge people to add their name to the Government online petition by Dr Kailash Chand at epetitions.direct.gov.uk.

Labour’s Health team will be coming to Derby 19 January to help me launch a petition against these dreadful plans.

TORIES AND LIBERAL DEMOCRATS SHOULD STOP THIS RACE TO THE BOTTOM ON PENSIONS

Public services and public sector workers define our society.

They are what make Great Britain a decent place to live. That is why I strongly support public sector workers and believe the Government’s current proposals for public service pensions are totally wrong and unacceptable.

Their plans are particularly iniquitous at a time when people are already struggling with rising fuel prices, higher VAT and the threat of job losses.

Public sector pension pots generate a healthy surplus each year and the additional contributions the Government is demanding is tantamount to theft. It is shameful that this unscrupulous and uncaring Government isn’t planning to use one penny piece of the additional contributions for public service pensions.

Because their austerity measures are a complete failure they are simply taxing public sector workers to pay down the national deficit.

But rather than attacking public sector workers, the Government should be addressing the scandal that sees only 11% of private sector workers in defined benefit schemes.

They should also be doing something about the richest 1% of the population getting a ¼ of all pensions’ tax relief totalling over £10bn a year!

The Government’s proposals could lead to many public sector workers opting out of the pension scheme, which may well result in some pension schemes collapsing. Both scenarios will lead to additional long term costs for the taxpayer because more pensioners will end up living in poverty and be forced to claim means tested benefits.

But not content with making these unjustified pension changes, they’re also imposing swingeing cuts on public services and sacking thousands of public sector workers. Slashing so many jobs is a false economy because it reduces demand and that leads to more job losses in the private sector too.

The truth is the public and private sectors need each other. Taking an axe to one, causes catastrophic bleeding in the other, and this Government is creating an economic bloodbath. So the Conservatives and Liberal Democrats should stop this race to the bottom.

They should get back to the negotiating table with a sensible offer.

They should abandon their ideological assault on our precious public services.

And they should acknowledge that the nation’s public sector workers are an invaluable asset.

BROKEN LADDER: 4.5 YEARS WITHOUT FOOD AND CLOTHING – THEN YOU CAN AFFORD A DEPOSIT

New research reveals that the average first time buyer (FTB) would have to save every single penny of their remaining earnings after they’ve paid their rent for four and a half years to have a chance of getting a foot on the housing ladder. In London it would take nearly a decade.

Saving a more realistic 50% of discretionary earnings, allowing people to eat and clothe themselves, would take on average across England nine years, or in London nigh on 20 years.

The Home Builders Federation has released a report, Broken Ladder 2, identifying the increasing lack of accessibility to the housing market at a time when supply is critically low – last year saw the lowest number of homes built since 1923 – with mortgage availability remaining the biggest constraint.

HBF is urging Government to act. It is calling for the introduction of a Government supported Mortgage Indemnity Insurance scheme, to help incentivise lenders to lend at higher LTV rates that potential FTB’s could afford

The shocking figures reveal that on average a FTB in their twenties has £556 a month left after paying their rent, utility bills and council tax (see page 7). The average starter home in England costs £156k, requiring a deposit of around £31K, 469% of annual remaining income and necessitating a FTB to save every penny for 4.6 years.

In London, the higher salaries earned by young people are negated by higher rent costs and house prices, resulting in a deposit requirement 992% of remaining annual income or a young person saving every remaining penny for 10 years without any spend on food, clothes or travel – clearly an impossible ask.

Because of this, the average age of the unassisted FTB has rocketed, with even those on higher wages in their thirties struggling to buy. It has resulted in more and more people being forced to stay with their parents with nearly a third of men and a fifth of women aged 20-34 now still living at home. It has also seen young people delay getting married, starting a family or taking out a pension.

I agree with Stewart Baseley, HBF Executive Chairman, who says “This report reveals the extent of our housing crisis; first-time buyers - the life-blood of the housing market – are unable to access the property ladder in the way a healthy society requires and expects.

“The lack of mortgage availability and the huge deposit gap are stifling a market already starved of supply. We desperately need to return to realistic deposit requirements and a properly functioning and sustainable mortgage market.

“At the same time, the Government must ensure that the new planning policy they are relying on to increase house-building is truly pro sustainable development and is put in place as soon as possible. Without more homes and more mortgages, young families will lack the security of a roof over their heads and the housing crisis will risk reaching the point of no return.”

HINCHINGBROOKE HOSPITAL

The decision to allow Circle Health Care to run Hinchingbrooke Hospital has worrying implications for the future of our NHS. It was taken after the Government changed Labour’s policy on the use of the private sector in the NHS.

Labour introduced NHS preferred provider, where the NHS was given the first chance to bid. The Tory led Government scrapped this immediately after the general election, and has since operated an open tender Any Qualified Provider (AQP) principle.

Hinchingbrooke Hospital has faced financial difficulties for some time. In Labour’s time in Government, efforts were made to bring in a new management team from elsewhere in the NHS. Other regional NHS organisations were approached with a view to taking over the running of the hospital.

When no local NHS organisations came forward, the PCT asked for permission, out of necessity, to look further afield in an open tender process allowing NHS organisations from other areas to tender, along with not-for-profit and private providers.

The process was handled locally by the PCT, and not referred to the Department of Health.

The Labour Government made no decisions on the future management of the hospital or the candidates on the final shortlist but the principles of NHS preferred provider would have continued to guide our approach.

Yesterday’s decision was taken by this Government having introduced different rules on the private sector. It is they who have to account for it.

The Government’s controversial Health and Social Care Bill is firmly based on the open tender, AQP principle. It envisages a very different world in the NHS, where hospitals operate as autonomous business units in a competitive market. That is the policy context in which this decision has been made.

It is not what patients, public or NHS staff want and it’s time for the Government to listen and http://www.dropthebill.com/

DERBY'S NHS WAITING TIMES MORE THAN DOUBLED

The weight of opposition to David Cameron’s plans for our NHS has become even clearer this week. Labour has launched the ‘Drop the Bill’ campaign, petitioning the Government to drop their reckless Health Bill.

According to Department of Heath figures, Derby has already seen waiting-times increase by more than 146% since David Cameron came to power. Yet his plans encourage local hospitals to treat more private patients while NHS patients are left waiting longer. They are creating a postcode lottery in the NHS, where patients are refused treatments in one area that their friends can get in another.

The unwanted reorganisation amounts to a £2-3 billion waste of money, which would be better spent on medicines, equipment and staff.

Local Doctors, nurses and patients have already expressed concerns at the plans but the Government is dangerously out of touch. They are ploughing on with their Health Bill regardless.

David Cameron has no democratic mandate for this Health Bill. It wasn’t in his manifesto. And it wasn’t in Nick Clegg’s either. The public never voted for it and healthcare professionals are fearing it.

Aneurin Bevan, creator of the NHS, said there would be an NHS only for as long as there were people left to fight for it. That fight is now upon us and I urge your readers to join it. Please add your name to the petition at www.dropthebill.com.

THOUSANDS OF DERBY RESIDENTS TRAPPED IN POVERTY

An economics expert at the University of Sheffield says about 15,000 Derby residents are trapped in poverty and being forced to borrow money from loan sharks.

Professor Paul Mosley of the University’s Department of Economics and lecturer Dr Pamela Lenton have published a book investigating millions of people in the UK who do not have access to high-street bank deals.

The book also researches alternative banks, known as community development financial institutions (CDFIs), which lend money to thousands of poor people with no savings and security, charging low rates of interest and saving them from becoming trapped by expensive loans from money lenders.

“In the Derby area, about 15,000 people are trapped in a spiral of debt and poverty because they cannot borrow from the high-street banks,” said Professor Mosley, who is a director of Sheffield Credit Union and Moneyline Yorkshire.

“They are forced into much more expensive ways of borrowing simply to afford day-to-day necessities. Legitimate ‘home credit’ companies such as National Provident charge up to 500 per cent APR. ‘Payday loan’ companies such as Quick Quid and Wonga charge even more, often well into the thousands. People don’t realise they are being ripped off.

“Anyone paying those rates will find it difficult to ever escape from the debt trap, and living standards, especially for those on welfare benefits, have gone down during the recession. “While a £500 loan from one of these companies might cost an additional £400 in interest, a similar loan from a community development financial institution would cost just £80 or £90, and even less from a credit union.

“There is little doubt that the majority of clients of CDFIs have been helped to weather the financial storms of the last years, and some of them have made a decisive leap out of poverty and out of dependence on loan sharks.”

Focussing on the period 2007 to 2009, during which the UK went into a global recession, this book investigates how CDFIs work and how well they have helped low-income people and businesses to weather the financial storm in Sheffield, Derby, Birmingham and Glasgow.

The study, which took six years to research and write, covers ethnic minorities, crime, and even how this summer’s riots could have been avoided through better finance for poorer people.

“Loans to people in poverty could have helped them set up self-employed businesses - which would have put them on the side of those who were trying to protect their businesses, rather than those who were rioting,” added Professor Mosley.

“Also, if given to clusters of people rather than individuals, loans could promote cohesion within inner-city communities, which would also deter rioting.”

Financial Exclusion and the Poverty Trap, Overcoming Deprivation in the Inner City, is available from Routledge and is priced at £85.

LABOUR’S CLIMATE CHANGE PLEDGE

At the end of November, more than 180 countries will join a United Nations meeting in Durban, South Africa, to work towards a new international deal to tackle climate change.

At the conference world leaders need to take bold steps to combat climate change, protect our planet and lift millions out of poverty.

There are alarming signs that the effects of global warming are already underway. Storms, floods, and droughts are happening more often and are more extreme. Arctic summer sea ice is melting faster than previously predicted.

We can only make progress on cutting emissions if people across the world call for action. The action we need won’t happen unless we demand it. That’s why today Labour has launched its Climate Change Pledge campaign.

People can help by calling for decisive action and sign up to Labour’s climate change pledge at http://www.campaignengineroom.org.uk/climatechange and publicise the campaign on twitter using the hashtag #climatepledge.

For too long, successive international negotiations have failed to deliver the action needed to meet the size of the challenge. This desperately needs to change and Britain must be at the forefront of this task.

Labour is calling on David Cameron and his Government to show real leadership at Durban. This means keeping our promise to provide financial support for the world’s poorest countries and pushing for EU to commit to a second period of the Kyoto protocol.

Every person who signs up and demands action moves us one step closer to the deal we need and puts pressure on those who would settle for less. You really can make a difference.

DISASTROUS MISTAKES SEE CONSTRUCTION DOWNTURN ACCELERATING

The latest Construction Trade Survey published on Monday 7 November 2011 makes for bleak reading. It shows a combination of falling demand and rising costs hit the construction industry hard during Q3 and this is only adding to the sense of pessimism over the future.

It is further evidence that the Tory-Lib Dem Coalition have got their economic policies badly wrong. If the UK is to extricate itself from this debilitating recession, the Government must act to stimulate growth. It was a disastrous mistake to abolish housing targets, scrap the Building Schools for the Future programme and impose punitive public sector cuts. Unless the Chancellor acknowledges that fact, the future is bleak for the construction sector.

That is why George Osborne should immediately adopt Labour’s five point economic recovery plan including a repetition of the bank bonus tax to generate funds to build 25,000 affordable homes and guarantee a job for 100,000 young people. He should also bring forward long-term investment projects, such as schools, roads and transport, to create jobs. And an immediate one-year cut in VAT to 5% on home improvements, repairs and maintenance would also give a welcome boost for the building industry.

Commenting on the Construction Trade Survey, Noble Francis, Economics Director at the Construction Products Association said: ‘Construction output weakened in Q3 and order levels were depressed across the board which is bad news for the industry. On the products side, sales of the products that are typically used in the early stages of the construction process fell significantly largely due to the sizeable cuts in public sector capital investment, which are now beginning to feed through. Furthermore, the private sector shows no signs of being able to take up the slack with contractors’ new orders for private sector work being equally depressed. All of these factors are reflected in the Association’s latest forecasts, which expect construction output to fall by1.1% in 2011 and 3.6% in 2012, with no return to growth until 2014.

‘Although we recognise the need for government to reduce the economic deficit, it is critical that growth is kick started through investment in areas of long term benefit to the UK, such as housing and infrastructure. This could be realised by bringing forward finance allocated for future years and doing more to create a framework whereby financial institutions are confident enough to invest.’

Speaking about the survey Stephen Ratcliffe, Director UKCG, said ‘Providing certainty over the pipeline of forward public sector programmes and working with the industry to get shovel ready projects underway, would be the most helpful thing government could do in the wake of these results. That is certainly a message that has been picked up by the Prime Minister and the Chancellor and UKCG hopes there will be more positive news for the industry in the wake of the Autumn statement.’

Julia Evans, Chief Executive of the National Federation of Builders added: ‘As the rest of economy registers growth, construction continues to struggle. What the industry needs now, perhaps more than ever, is a shot in the arm - targeted investment that frees up stalled projects and unlocks growth. Focused investment in construction is a win-win for the industry and for wider, sustainable economic growth.’

Key survey findings include:
• Product manufacturers’ confidence regarding the future has dramatically decreased due to the marked change in trading conditions in Q3 with 44% of heavy side firms now expecting sales to reduce next year compared to just 14% three months earlier. Also fewer light side manufacturers now foresee growth in 2012.
• Two-thirds of medium and large contractors reported that activity was either stable or lower than at the same time last year.
• SME builders reported that workload declined for the 15th consecutive quarter which is especially significant given that 70% of industry output is generated by firms employing less than 299 people.
• Cash flow is now a real concern with only 2% of specialist contractors having received payment within 30 days in Q3.

CONSERVATIVE PARTY’S HOSTILITY TO THE EUROPEAN UNION IS IRRATIONAL

MONDAY 24 October felt like Groundhog Day when the Conservative Party’s divisions over Europe were paraded in a parliamentary debate about a referendum on Britain’s membership of the European Union.

The 81 Tory MPs who voted against the EU have now formed a parliamentary group posing an ongoing challenge to David Cameron’s leadership of his party.

Of course the Conservatives have been obsessing about Europe for more than 25 years, but this is not the time for a governing party to be indulging its obsession.

Emperor Nero may have fiddled while Rome burned, but I don’t believe he started the fire. By contrast, it seems the Conservative Party is determined to continue fiddling while their policies are burning the British economy.

The frightening thing is that Many Tory MPs are prepared to intensify the inferno by pouring petrol on the flames that are engulfing Britain’s economic wellbeing.

They refuse to accept that the prospect of an EU referendum would create economic uncertainty for our country leading to even higher unemployment and more hardship for ordinary people.

But the c. Britain’s membership gives us a share of the world's largest single market, which is vital for British business and British jobs. Well over 50 per cent of British exports go to the EU and those exports account for more than 3m British jobs.

Moreover, we should not underestimate how much the EU has contributed to securing peace and stability in Europe. Remember the first part of the last century was scarred by two world wars that were started on European soil.

And we cannot ignore our geographic location in the world. We are a European country so it makes sense to cooperate with our neighbours on things like the economy, security, environmental protection and social policy.

In an age of growing globalisation, it is naive in the extreme to think the UK can survive and even prosper on its own. Britain’s membership of the EU is the best way of protecting British citizens from the ravages of unrestrained globalisation. The Government’s reckless austerity measures have already led to reductions in our living standards, but life outside the EU would make matters even worse.

It is the EU that has improved legal rights for workers and secured a good deal for British families. The single market has promoted competition between companies, cut the costs of trading across borders and driven down prices. And employees enjoy better protections thanks to our membership of the EU, such as the legal right to four weeks paid holiday each year and good health and safety regulations.

I am not saying the EU is perfect; it does of course have its faults. But by working with our European partners we have a better chance of protecting our living standards by growing our economies and managing the impact of globalisation.

What those Conservative Eurosceptics refuse to accept is that the single market is the key to economic growth. And it is economic growth that is a prerequisite to creating jobs, safeguarding public services, paying down the deficit and reducing the national debt. But manufacturing output is down, the construction industry is on its knees, unemployment is going up and inflation is continuing to rise.

These are the issues that affect people’s lives, but rather than concentrating on these issues, the Conservative Party seems to prefer tearing itself apart over a self indulgent sideshow instead.

Construction Facing Worst Decline for More Than 30 Years

Construction activity is unlikely to return to growth until 2014, sparking the worst decline for 30 years, according to the latest Construction Industry Forecasts, which were published today by the Construction Products Association. Since the start of the economic downturn in 2007 more than £32bn of construction activity has been lost.

Commenting on today’s figures, Michael Ankers Chief Executive of the Construction Products Association said: ‘Although government is committed to cut capital expenditure by 20 per cent over the next four years, the hoped for robust recovery from the private sector, to compensate for these cuts, is not materialising. With both the commercial and housing sectors still performing badly, our latest Forecasts indicate that construction output will fall by more than one per cent this year, a further 3.6 per cent next year and no growth in 2013. Recovery finally arrives in 2014, but by then we will have experienced the worst decline in construction activity for more than 30 years. It is essential that more is done by government to kick start the economic recovery.

‘Despite the government’s desire to support housing recovery, housing starts in 2012 will be the second lowest year since 1945. Private sector housing is slowly recovering. Unfortunately public sector housing starts are forecast to fall by a third, leading to an overall reduction in the total number of housing starts in 2011 and 2012. By the end of the forecast period we will have a shortfall of more than two million homes in the UK.

‘Equally worrying is the commercial sector, the largest construction sector and a bellwether for private sector activity. Although commercial construction in central London is buoyant, there is little activity in rest of the country. As a result this sector is expected to see a fall of three per cent in 2011 and four per cent in 2012 before a return to growth in 2013.

‘On a more positive note infrastructure output is set to grow throughout the forecast period, driven by considerable increases in rail and energy related work, even though road expenditure continues to decline. During this period rail infrastructure will see growth by almost 80 per cent and construction of energy related projects by a massive 200 per cent.

‘Government recognises that construction is a key part of economic recovery, yet these forecasts herald a very difficult few years, not just for construction but for the wider economy. It is therefore essential that the government uses the Autumn Statement to stimulate recovery by rebalancing the economy between current and capital spending. Government’s own figures show current expenditure rising from £632bn this year to £694bn in 2014/15, whilst capital expenditure is cut from £61bn to £42bn over the same period. Rebalancing this could make way for the £5bn package of essential infrastructure investment that many commentators have called for.

‘Similarly government must do more to stimulate house building and help first-time buyers onto the housing ladder. The announcement about the release of public sector land is welcome, but it is access to finance, not development that is currently holding back the housing market. Government therefore needs to look at mortgage indemnity guarantee schemes, or government backed savings scheme for first-time buyers to help ease this situation.

‘Finally the government must do more to support the Green Deal programme. The stimulus to the economy and the benefits to our industry could be huge. However, without a fiscal stimulus, such as a reduction to five per cent in VAT for all Green Deal compliant work, Green Deal is unlikely to be successful. It is essential the Chancellor uses the Autumn Statement to address these issues as without these stimuli, the next few years will be very bleak indeed for the UK economy.’

Other key findings in the Forecasts include:

• Total housing starts to fall one per cent in 2011 and a further four per cent in 2012
• Public construction including PFI to fall 24 per cent by 2014
• Education construction to fall 41per cent by 2014
• Health construction to fall 45 per cent by 2014
• Private sector construction to rise 18 per cent by 2015
• Construction of commercial offices to rise five per cent in 2012 and 14 per cent in 2013

CAMERON SHOULD BE FIGHTING FOR BRITAIN NOT SQUABBLING WITH HIS BACKBENCHERS

Labour Leader, Ed Miliband, spoke today about Monday’s Parliamentary motion calling for a referendum to be held on UK membership of the EU.

He said: "We are going to be voting against a proposal for a referendum on getting out of Europe. It’s not the right thing for Britain. It is not the right thing for jobs. It is not the right thing for growth.

"The prospect of a referendum would create "David Cameron should show some leadership. He should not be spending the next few days negotiating with his backbenchers but negotiating for Britain to sort out the Eurozone crisis

"I fear we are seeing the same movie with this Conservative Party that we have seen played out in the past.

"They are looking inwards. They are out of touch. They are squabbling about Europe and not fighting for Britain."

NEW HOPE FOR BOMBARDIER

The appointment of Justine Greening as the new Transport Secretary offers new hope for the campaign to get the decision to build trains for the Thameslink line in Germany overturned.

I have therefore written to Ms Greening congratulating her on her appointment and asking for a meeting to discuss the situation.

The campaign is continuing to gain ground and the first Conservative MP to sign my Parliamentary Petition, (Early Day Motion), is an indication of the growing support. Gordon Henderson, the MP for Sittingbourne and Sheppey, in Kent added his name last Tuesday and I am very grateful for his support.

This is the text of the letter I have sent to the Transport Secretary.

Dear Justine

Congratulations on your new appointment as Secretary of State for Transport.

I appreciate that you will want a few days to assimilate your new brief, but I would be grateful if we could meet, at your earliest convenience, to discuss the Thameslink Rolling Stock Programme.

You will be aware that Siemens has been appointed as the preferred bidder for this contract, but they plan to build the new trains in Germany. The Derby based company, Bombardier, has been appointed reserve bidder.

The campaign to reverse this decision has received widespread cross party support, which includes backing from many Conservative MPs. The Invitation to Tender (ITT) documentation makes it very clear that the Secretary of State has the power to stop the process at any time.

There are a number of issues relating to the application of the ITT and the impact on the future of British train manufacturing that I would appreciate the opportunity of discussing with you. The Prime Minister has made clear his commitment to rebalancing the economy, but the plan to build the Thameslink trains overseas runs counter to the Government’s stated ambition.

I do therefore hope you are able to agree to my request for a meeting to confer about this important issue.

Yours sincerely

Chris Williamson MP

TORIES AND LIB DEMS ARE PENALISING PARENTS

Government’s recent childcare announcement won't mean a penny more help for parents already struggling on childcare tax credits.

The Government has been forced to admit that it will cut parents' entitlement to childcare down to £123 a week for one child - nearly £900 a year less than under Labour. Parents with two children will lose nearly £1,600 a year.

Universal Credit is now set to lock in a 'parents' penalty' that cuts back childcare payments so hard that many parents will be forced to give up work. With parents struggling to make ends meet, it beggars belief that the Tories are stopping parents working the hours and shifts they need by taking away their childcare.

Labour’s Shadow Work and Pensions Secretary, Liam Byrne MP said:
“The Tories are out of touch with most people’s lives and unable to address the big challenges facing Britain in the future.”

The Government has made its announcement ahead of Labour's childcare protection amendments, about to be debated in the House of Lords this week and the 'extra' money has been secured from existing Universal Credit funding.

This news comes at a time when even the Governor of the Bank of England is warning that we are facing the biggest squeeze on living standards since the 1920s. Iain Duncan Smith has failed to win any new money from the Treasury, and has been forced to raid other parts of the Universal Credit budget.

Last weekend, Liam Byrne said that childcare will be Labour’s key battleground for the Welfare Reform Bill as debate begins in the House of Lords. He has challenged the Tories to accept a raft of amendments Labour will be tabling, which are designed to ensure that parents don’t lose out on childcare entitlements when Universal Credit is introduced.

Highlighting new figures from the House of Commons library, he will point to lost tax of £47 million from 32,000 parents – mainly women – who have given up work in the last year mainly because they can no longer afford childcare.

The Government has already slashed family’s entitlements to childcare support from 80per cent to 70 per cent of costs – the equivalent of a 12% cut. The new money will simply plug a black-hole in child care funding which emerges in two years time when eligibility for childcare is widened. Today's funding does nothing to make up for the new 'parents' penalty' introduced over the last year.

Labour’s childcare protection amendments first tabled by Stephen Timms in the Commons establish a principle that families working more than 16 a week should not lose out. Tory Employment, Chris Grayling, brushed aside concerns saying “…we do not intend to make any further changes to the amount of money available for child care”.

FIVE POINT PLAN TO KICK-START ECONOMY

Repeat the bank bonus tax - and using the money to build 25,000 affordable homes and guarantee a job for 100,000 young people.

Bring forward long-term investment projects, such as schools, roads and transport, to create jobs.

Reverse January's damaging VAT rise now for a temporary period.

Immediate one-year cut in VAT to 5% on home improvements, repairs and maintenance.

One-year national insurance tax break for every small firm which takes on extra workers, using the money left over from the government's failed national insurance rebate for new businesses.

CAMERON AND OSBORNE IN U-TURN ON PRINTING MONEY

David Cameron and George Osborne used to be opposed to quantitative easing. Speaking on 9 January 2009 George Osborne, said...“printing money risks losing control of inflation and all the economic problems that high inflation brings. For the Treasury to float the idea carelessly is irresponsible in the extreme as it could shake the confidence of international markets.”

And on 5 March 2009 he said: “I don’t think anyone should be pleased that we have reached this point. It is an admission of failure and carries considerable risk”.

Then on 8 October 2009 David Cameron said: “Sometime soon quantitative easing will have to stop because in the end printing money leads to inflation”

In spite of Osborne’s and Cameron’s previous reticence the Bank of England has announced a further £75 billion of quantitative easing.

Commenting on this develpment Ed Balls MP said: “With our economy stagnated since last autumn David Cameron and George Osborne are now betting on a bail out from the Bank of England.

“The Government’s reckless policy of cutting spending and raising taxes too far and too fast is demonstrably not working. But rather than change course the Government has spent the last week urging the Bank of England to step in and essentially print more money. The Bank of England has been left with no choice but to step in and try to offset the contradictory effects of George Osborne’s Budget plans

“This is the Bank of England’s contribution to a Plan B. But while another round of quantitative easing may help, I fear it will do little to create the jobs and growth we desperately need if we are to get the deficit down. When monetary policy is already so loose – with interest rates at record lows – and with confidence depressed this is, as Keynes said, like pushing on a string.

“What we really need is a change in fiscal policy from the Government – getting the deficit down in a steadier and more balanced way with a credible plan to get the economy moving again, like the five point plan for jobs Labour set out last week.

“Two years ago George Osborne described quantitative easing as ‘the last resort of desperate governments’. Today he is desperately hoping it will bail out his failing economic policy."

DAVID CAMERON’S ABSURD CHOCOLATE ORANGE MOMENT

A NEW BATTLEGROUND IS BEING DEFINED.
By Ed Miliband

A week since I delivered my Conference speech. Watching and listening to the Tories this week, including David Cameron this morning, what is clear is that a new battleground is being defined.

It is around who can deliver a new bargain for our country built around values of responsibility and something for something. These are the values which the vast majority of the British people share.

On the one hand, we have David Cameron’s symbol of his new bargain: the chocolate orange.

I thought his “chocolate orange moment” was absurd five years ago and I have to say it was exposed on the radio this morning.

Yes he talked about it five years ago and yes, they are still being sold at the tills of WH Smith.

And that’s because the whole thing was a piece of absurd political positioning.

It was absurd not just simply because it was relatively trivial but because David Cameron failed to understand that politely asking commercial organisations to behave in the right and responsible way is not enough.

The question is whether you are willing to rewrite the rules of our society and whether you really believe they need to be rewritten.

So his symbol is the chocolate orange. I’m standing up to the banks that don’t do the right thing by small businesses, the energy companies that are too dominant in the market, the closed circles of opportunity that hold our country back, a short-termist culture in finance that has damaged our economy for decades, and huge inequality that comes in part from a take what you can culture.

The answer is not just to ask people to behave responsibly.

It is to rewrite the rules of the way our economy, our society and our welfare state works.

Do the rules of our economy encourage long-termism or short-termism, training of staff or not, unjustified rewards at the top or not, investment in research and development or not?

All the time in the rules it sets---such as on tax and procurement---governments make judgements about these issues, encouraging one type of behaviour compared to another.

We need a better set of rules in our economy to encourage businesses that invest, invent, train ,make and produce real products and services – rules that reward decisions made for the long term rather than the fast buck.
As I said in the speech “This isn't about one industry that's good and another that isn't. Or one firm always destined to be a predator and another to be a producer. It's about different ways of doing business, ways that the rules of our economy can favour or discourage.”

The old rules are not working for most people in this country nor for the British economy. Reform is essential.

Now let’s ask whether this is a government that is living true to rewriting the rules?

They talk tough on the banks but the very institutions which caused the financial crisis with grossly irresponsible behaviour are being told it is business as usual.

David Cameron and George Osborne are giving away hundreds of millions of pounds to the banks in corporation tax cuts – the wrong choice in a time of scarce resources.

They are showing no signs of taking on the other vested interests holding our economy back, just as they dragged their feet on phone-hacking.

And they are reinforcing the closed circles of opportunity: trebling tuition fees, abolishing EMAs, and so it goes on.

And on welfare, they are punishing couples who save, cutting childcare help from women who go out to work, and removing the requirement that young people have to take a job offer.

They are penalising something-for-something values, rewarding those who seek something-for-nothing and shrugging their shoulders at City bonuses or the excesses of boardroom pay.

On issue after issue David Cameron and George Osborne are showing they are out of touch and divorced from reality facing hard-working British families.
Every so often a political consensus needs to be challenged. This is one of those moments.

In the last seventy-two hours, the Tories have shown they are utterly confused about how to respond to the argument I have set out.

They can’t be the people who change the old rules. Why? Because they believe that the answer to the failures of 2007/8 and the financial crisis is more of the same.

They believe their own mythology: that the failure of that time was caused by government spending, not because of the wrong set of rules governing our economy.

So we have a Tory Party seeking to moving onto the ground I have set out. They will fail because they have not learnt the lessons of the past and no plans on how to build a future based on the values of the British people.

CONSTRUCTION PRODUCT MANUFACTURERS FACING WORSENING FUTURE

The Construction Products Association’s latest State of Trade Survey, which has been launched today, shows that the continuing economic uncertainty, coupled with rising prices and weakening domestic demand are adding to the concerns for many construction product manufacturers as the long awaited public sector cuts begin to impact heavily on the industry.

The latest quarter has shown a marked deterioration in trading conditions. Heavy side manufacturers are already seeing a falling off of sales activity and although light side firms continue to show some positive activity, their expectations for the coming year is also falling sales.

Commenting on the figures, Construction Products Association senior economist, Kelly Forrest said: ‘Although industry has been well aware of the cuts to public spending since the CSR last October, concerns for the industry have been heightened by uncertainty regarding UK and global economic activity. Furthermore, the state of the industry continues to be badly affected by rising costs with 71% of light side firms and 89% of heavy side firms reporting that costs rose once again in Q3.

‘While industry is well aware of the need by government to address its finances, it is critical that government does its utmost to sustain economic growth by investing in areas of long term benefit to the UK, such as house building and infrastructure by bringing forward finance allocated for future years and attracting private finance at a time when public finances are constrained.’

The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £50 billion and accounts for 44% of total construction output.

CONSERVATIVE PARTY: OUT OF TOUCH AND OUT OF DATE

Far from offering anything new, the Tories are the last gasp of the old ways which don’t work for most people and benefit only a privileged few.

A year ago, the Tories gathered for their conference as a party of government for the first time since 1996.

They may not have won the election but they were in confident mood. Despite having announced cuts which went further and faster than those the last government had planned, the economy was still growing and unemployment was still falling.

Britain, they told us, was out of the danger zone. Nothing could possibly go wrong.

This year, the world looks very different . The doubt about whether David Cameron and George Osborne are following the right path is beginning to surface - not only among their coalition allies - but even in the minds of some Conservatives.

Stock markets around the world are falling, people in Britain are losing their jobs, consumer confidence has been wrecked by the cuts, economic crisis is threatening to return, the austerity programme is failing and the governent is beginning to wobble.

Families across Britain are worried about how they will make ends meet, anxious about what the future holds for their children and disgusted by the way irresponsibility is tolerated across our society.

But the Conservatives have no idea about how to restore growth in the economy and dogmatically refuse to consider a Plan B. Instead, cuts that go too far, too fast are choking off the economic recovery with the consequence of flatline growth and more unemployment.

Their priorities are clear from the way they are cutting corporation tax for the banks while trebling tuition fees for young people dreaming of a better future. This government is further restricting opportunities for the next generation by slashing back support for training and job opportunities.

The Tories won’t help families who face a cost of living crisis by standing up to vested interests.Middle-income families are being squeezed but there is no action on energy bills and rail fares rise. Instead, they are cutting childcare support and raising VAT.

The Tories won’t tackle irresponsibility at the top because they promise “business as usual” to a minority of company executives pursuing the fast buck and damaging the long term health of the economy.

Nor will they help tackle irresponsibility in the welfare system because they are punishing people who do the right thing and seek work.

The Tories are out of date; they are of the past. They are out of touch; they are for the few.

FAULTY POCKET LIGHTERS POSE DANGER

It is a worrying statistic that one in ten Brits are exposed to dangerous pocket lighters on a regular basis. According to market analysis, consumers are tempted with hundreds of lighter models that do not conform to minimum safety standards set out in a European regulation which was transposed into UK law in September 2006.

Around 100 million lighters are sold on the UK high streets each year and independent tests show that an alarming 79% of models are non-conforming and potentially unsafe. The laws are in place to prevent this from happening but we need to properly enforce them.

I have heard about people who have been victims of lighters exploding in their faces and having their clothes set on fire. One such victim was Elaine Young who suffered third degree burns and had to undergo a skin graft.

This is something that we have an obligation to prevent – as law makers we cannot allow these lighters to be on the market.

We must make sure that Trading Standards remove these lighters from the market so that we can prevent any more horrific injuries like the ones which Elaine suffered as a result of a faulty lighter.

ONLY WAY TO TACKLE DEBT PROBLEMS ACROSS THE WORLD IS BY THE GETTING GROWTH WE NEED

"The Prime Minister is quite good at lecturing other people on getting their problems sorted out and it’s true that the Eurozone needs to sort out its debt problems," Ed Miliband MP said today:

He added: “But the only way we’re going to tackle the debt problems across the world is by getting the growth that we need. And all the Prime Minister seems to be offering is to say 'I’ve got austerity here at home, I’m going to now export it abroad'.
“But when the recovery here in Britain was choked off last autumn, well before the global problems of recent months, that’s not a solution to the problems the world faces.

"We need a plan for growth here at home and across the world. That’s the way we tackle the debt issues that we face. The problem is that the Prime Minister may have woken up to the crisis but he doesn’t have a plan to deal with it.

"You need coordinated action and that’s why I say to the Prime Minister, President Sarkozy is the President of the G20, get him to bring forward the G20 meeting, have an emergency meeting, get the world's leaders together and get a grip on the crisis facing the world."

GEORGE OSBORNE IS ACCELERATING INTO ECONOMIC DANGER

Every motorist knows that if you see a car crash on the road ahead, you must either slowdown or take evasive action to avoid being involved in an accident. Only an idiot would say keep your foot on the accelerator and plough on regardless. The Chancellor of the Exchequer would do well to learn from this motoring analogy because he is driving the British economy towards one almighty economic car crash.

Ever since the Liberal Democrats threw in their lot with the Conservatives to form the Coalition Government, both parties have insisted that there is no alternative to their austerity measures. It seems the very expensive public schools attended by David Cameron, George Osborne and Nick Clegg failed to teach them anything about economic history. Making deep cuts during a recession just does not work and can even make matters worse. That is precisely what happened in the UK in the 1930s and 1980s when millions of British people were impoverished by this flawed rightwing economic doctrine. Furthermore, the austerity measures in some Eurozone countries provides additional confirmation that massive cuts simply do not work and only result in further economic decline.

But despite of the overwhelming evidence that their economic prospectus didn’t work in the past and isn’t working today, Government Ministers still insist that there is no alternative. I remember Margaret Thatcher doing much the same thing in her notorious “no alternative” speech to the 1980 Conservative Party conference. The consequences of her Government’s “no alternative” approach saw our manufacturing industry decimated, public services destroyed and unemployment climb to almost 4 million. It was that “no alternative” attitude that also resulted in the deregulation of British banks in 1986. The toxic combination of de-industrialisation and banking deregulation saw finance and banking become the principal engine of economic growth and sowed the seeds of today’s economic woes.

But when Mrs Thatcher imposed massive cuts and downgraded British manufacturing, she was at least able to create an alternative motor for economic growth by deregulating the financial services sector. The Tory-led Coalition has no such alternative at their disposal today and their belated damascene conversion to manufacturing would be more credible if their deeds matched their rhetoric. The abolition of Regional Development Agencies, which supported manufacturing companies, and the Government’s decision to overlook Britain’s last train maker to build the Thameslink trains in Germany is undermining British industry.

Further proof that the Government’s economic policies are going in the wrong direction came earlier this week when the International Monetary Fund once again slashed its UK growth forecasts. The IMF also said Britain should delay plans to cut spending and raise taxes if growth continues to weaken. Then on Wednesday, figures were released showing Government borrowing in August reached a record high for the month.

The truth is since this Tory-led coalition came to power we have seen economic growth faltering, public services deteriorating, inflation increasing, unemployment rising, Government borrowing escalating and living standards falling. But in spite of the weight of historical and contemporary evidence that cutting too far and too fast makes things worse, Government Ministers continue to spout the “no alternative” mantra.

Once upon a time, the Chancellor told us he would cut borrowing, reduce unemployment and grow the economy. But he is failing on every count and unless he changes direction now, the casualties caused by his economic car crash will continue to grow.

CHRIS HUHNE MUST TRY HARDER ON ENERGY PRICES

Labour's Shadow Energy Secretary, Meg Hillier MP, has blasted Chris Huhne's speech to the Lib Dem conference. She said:

"How can families whose finances are being squeezed take this seriously from the man who is standing idly by while energy companies raise their prices way above inflation?

"Only last week Chris Huhne was criticising consumers for not switching supplier.

"He is tinkering while people face a cold winter shivering under blankets. His own plans to reform the energy market do nothing of the sort and will exclude many potential new entrants.

"Labour called for more competition in the market months ago and for a competition commission enquiry. Chris Huhne is fiddling with an already broken system. Labour is calling for radical reform.

"Chris Huhne's failure to take on the energy companies is yet another example of how this Tory-led Government is refusing to tackle the irresponsible behaviour at the top, while hard working families suffer."

THE LIB DEMS WILL BE JUDGED BY THEIR ACTIONS, NOT THEIR WORDS

Following Vince Cable’s speech at the Lib Dem conference, John Denham MP, Labour’s Shadow Business Secretary, said: “The Lib Dems will be judged by their actions, not their words.

“Vince Cable says his biggest regret from the last year is not tackling bank bonuses, but it should be his complete failure to support business, create jobs, help small and medium enterprises to access finance and to build on the growth he inherited from Labour.

“The recovery has been choked off and yet despite calling for a Keynesian approach to a demand crisis, he still relentlessly supports George Osborne’s reckless policy of cutting too far and too fast. Youth unemployment has gone up, the economy has flatlined and inflation is rising far faster than wages.

“And making his annual speech on high pay to the Lib Dem faithful doesn’t make it policy in the Tory-led Government. Given his failure on banks, why should anyone believe he can deliver on high pay? Vince Cable needs to bring forward concrete proposals on boardroom pay and not capitulate to the Treasury as usual.”

BRITAIN IS NOT A SAFE HAVEN IN OSBORNE'S HANDS

The Shadow Chancellor, Ed Balls, is calling for a change in the UK's economic direction. The following are his thoughts on this crucially important issue.

THE global economy has entered a dangerous new phase. It's now more vital than ever that countries have credible economic plans to ensure economic growth and get deficits down.

I believe there are three tests for a credible economic plan. First, there has to be a transparent plan with clear medium-term goals - whether that's to halve the deficit over four years as the last Labour government legislated for, or to go further and eliminate the structural deficit in this parliament, as George Osborne announced a year ago.

Second, that plan must command sufficient political support for it to be implemented. In America, the lack of agreement in Congress and political brinkmanship over the debt ceiling was disastrous for confidence and ultimately led to the credit rating downgrade. And in the Eurozone there has been a complete failure of political leadership to grasp the nettle of what needs to be done, as we saw again in Poland this weekend.

But political disagreement is not an issue in Britain. Despite the party conference rhetoric this weekend from Vince Cable - who called for "a Keynesian approach to a demand crisis" - the policy of rapid deficit reduction remains and is the cornerstone of the coalition.

There is, however, a third and vital credibility test - the plan has to deliver what it promises. This is where Britain and some of those Eurozone countries have something in common. Austerity is not working for countries like Greece, which now looks set to enter a fourth year of recession, and it is not working in Britain either.

A year ago, Osborne said spending cuts and tax rises that go further and faster than any other major economy would boost confidence and economic growth. At the time I warned that the recovery was too fragile and this risked tearing up the foundations of the house just as a global hurricane was brewing.

And what has happened? Consumer and business confidence has collapsed. Unemployment is rising again. Far from being a safe haven, our recovery was choked off last autumn with only Japan growing more slowly in the G7 over the last year. As the IMF's Christine Lagarde has rightly said "growth is necessary for fiscal credibility" - and to get deficits down too.

It's not just Labour making the case for a more balanced approach - a tough mediumterm plan to get deficits down, but which puts jobs and growth first. The founder of Pimco is now calling for a change of course and Lagarde says there is scope for reducing deficits more steadily to support growth and that, if slow growth continues, ministers must act, for instance through temporary tax cuts - like the temporary VAT cut Labour has called for.

The reckless thing for Osborne to do now is to continue with his absurd claim that Britain is some kind of safe haven and plough on regardless with a plan that is not working. The credible and cautious thing to do is to listen to wise advice and change course before it is too late.

TORY CLAIMS TO BE THE PARTY OF LAW & ORDER FELL INTO FURTHER DISREPUTE WITH PLANS TO CUT SUPPORT TO VICTIMS OF CRIME

Sadiq Khan MP, Labour's Shadow Justice Secretary has criticised Government plans, revealed today, to slash the budget for the Criminal Injuries Compensation Authority by fifty per cent.

He said: “Victims should be at the heart of our justice system but this Tory-led Government is consistently letting victims of crime down.

“The Criminal Injuries Compensation Authority provides a lifeline to those who have been physically or mentally injured because they were a blameless victim of violent crime. Its vital that funds are there to help victims rebuild their lives. It is disgraceful that this Government is planning to reduce by half the financial support available to them.

“We agree that savings need to be made in the Ministry of Justice, but slashing the justice budget by almost one quarter must not be at the expense of victims of crime and their families.

“This Government has cut resources to victim support services, refused to unequivocally back a new Victims’ Law, delayed compensation payments to victims of overseas terrorism and are now planning to slash the budget of the Criminal Injuries Compensation Authority. They should entirely rethink their approach to victims and start putting their needs first.”

ED MILIBAND DEMANDS CAMERON RETURNS TO PARLIAMENT TO CORRECT INACCURATE STATISTICS

Ed Miliband MP, Leader of the Labour Party, has written to David Cameron to demand that he returns to the House of Commons to correct inaccurate statistics that the Prime Minister used at PMQs yesterday.

Labour has also compiled a document detailing many occasions, over several months, when David Cameron's factual claims at Prime Minister's Questions do not stand up to scrutiny.

This is the letter from Ed Miliband to David Cameron:

Dear Prime Minister,

Yesterday, in response to me at Prime Minister’s Questions, you said that “since the election there are 500,000 more jobs in the private sector. There are more people—300,000 more people—in work than there were a year ago” (Hansard, 14 September 2011, column 1028).

This answer is inaccurate. Between June 2010 and June 2011 the Office of National Statistics has confirmed that private sector employment increased by only 264,000 and that net employment increased by just 24,000. The only way it is possible to claim 500,000 extra private sector jobs is by including jobs created between 1 April and 30 June 2010 – but of course this includes time when Labour was still in office, which is not “since the election” at all.

You also said, after I correctly pointed out that the UK has grown more slowly in the last year than any other EU country apart from Portugal and Romania, that “this year, Britain is growing faster than America” (Hansard, 14 September 2011, column 1029). In fact, the UK has grown by 0.7 per cent over the last year to the end of Q2 2011, the latest period for which figures are available, while the USA grew by 2.6 per cent over the same period.

Everyone in public life has a responsibility to ensure we rebuild and maintain trust in politics and politicians. Ensuring accuracy in our answers in the House of Commons is central to that, a responsibility underlined in the Ministerial Code.

Furthermore, the British people will want to be assured that the decisions you take, which have such profound consequences for families and young people, are being based on properly researched data and empirical evidence.

As such, I trust you will return to the House and correct the record at the earliest opportunity.

Yours,

Ed Miliband MP

A PERSONAL MEMORY OF 9/11

A PERSONAL MEMORY OF 9/11

I still have vivid memories of 11 September 2001. I remember switching on the car radio after leaving a meeting of the community legal advice services and tuning in to a special news broadcast. As I listened to the events that were unfolding I initially thought I had tuned into Radio 4’s afternoon play. It was a good few minutes before I realised that the horrific eyewitness accounts were actually true.

It made me think how fragile all our lives are and how they can be snuffed out in an instant. I thought about the sheer terror that the passengers on those airplanes must have felt knowing they were powerless to do anything about the circumstances in which they found themselves.

Just the day before I had returned to the UK on a flight from Brussels where NATO’s headquarters are located, which could just as easily have been targeted like the Pentagon had been. I pondered how I would have reacted had the aeroplane on which I had been travelling had been hijacked. It sent a cold shudder down my spine.

When arrived back in Derby the news had not filtered through. I remember telling my late wife, Lonny Wilsoncroft, what had happened. She thought it would cause a war, but I said a war against who? How prophetic Lonny’s words were. Little did I think then that the events of September 11 would lead two years later to an ill-judged war in Iraq. Still less did I think that 10 years after our young servicemen and women would be losing their lives in a conflict in Afghanistan.

Hindsight is a wonderful thing, but I believe the West’s response to 9/11 was wrong. It did not make the world a safer place and probably contributed to the worst terrorist atrocity on British soil on the 7 July 2005. That was the day that four young British men turned themselves into suicide bombers to kill their own countrymen.

It was Martin Luther King who said: "Hate begets hate; violence begets violence; toughness begets a greater toughness. We must meet the forces of hate with the power of love.” And it was Winston Churchill who acknowledged that “It is better to jaw-jaw than to war-war.”

The ghastly events of 9/11 changed our world forever. But modern day world leaders and policy makers would do well to be guided by the wise words of Martin Luther King and Winston Churchill. It is not a sign of weakness to try to understand why some people resort to evil deeds. It is not a feeble act to meet the forces of hate with love. And there is no betrayal in talking to your enemies.

I accept that when faced with unspeakable acts of violence and cruelty the urge for retribution is understandable. But we must resist that urge and remember Martin Luther King’s counsel. In my view, love, understanding and dialogue are more likely to prevent a repetition of the appalling events of 9/11 in the US and 7/7 in the UK.

Ed Balls' response to the OECD’s Economic Outlook published today

“A year ago, while the Chancellor was saying he was cautiously optimistic and Britain was out of the danger zone, I warned that there was a hurricane building and this was not the right time to rip out the foundations of the house. And I am even more worried now about Europe, America and Britain than last summer.

“This is now a critical moment for the world economy. We urgently need some leadership from our Chancellor and the G7 meeting this weekend to agree a global plan for growth and more balanced plans to get deficits down in the medium term.

“The deputy head of the OECD was right to warn earlier this year that there is merit in slowing the pace of deficit reduction if weak growth continues, as these latest forecasts suggest. The OECD is now calling for short term fiscal stimulus if needed, following warnings by wise voices including the new head of the IMF and the founder of the largest investment fund in the world on the danger that cutting too far and too fast threatens economic recovery.

“George Osborne should note that over the last twelve months the UK has grown more slowly than any G7 country other than earthquake-hit Japan, as the recovery was choked off by his decision to cut spending and raise taxes too far and too fast. And the forecasts for the next six months are extremely concerning with the UK set to grow more slowly than any G7 country other than Italy.

“As the IMF’s Christine Lagarde has rightly said ‘growth is necessary for fiscal credibility’ and without growth it will not be possible to get deficits down. We cannot afford for George Osborne to continue sitting on his hands and saying Britain will plough on regardless with a reckless policy that is hurting, but clearly not working.”

NICK CLEGG HAS CLAIMED VICTORY ON TORY HEALTH REFORMS - IS HE HAVING A LAUGH?

Nick Clegg claims that he has secured eleven of the 13 changes demanded by his party at its spring conference in March. This is Labour‟s analysis of how well he has performed according to his own goals.

1. More democratically accountable commissioning. Secured say Lib Dems.

Failed. There will be no elected members or councillors on commissioning consortia boards, while Health and Wellbeing Boards are only able to give their opinion to consortia – consortia are under no obligation to abide by that opinion. (Clause 23 – 14Z12)

2. A much greater degree of coterminosity between local authorities and commissioning areas. Secured say Lib Dems.

Fallen short. Consortia will be more coterminous with local authorities than previously planned, but the populations for whom consortia will be responsible will be based on the practice lists of the GPs not the consortia‟s geographic boundaries. These practice lists don‟t have to bear any relation to local authority boundaries. (Clause 10)

3. No decision about the spending of NHS funds to be made in private and without proper consultation, as can take place by the proposed GP consortia. Secured say Lib Dems.

Fallen short. Consortia will not be as transparent as PCTs are currently. PCTs have to abide by the Nolan principles on public life and the Public Meetings Act, while consortia do not. It is left up to them to decide what business to conduct in private and not in public. (Schedule 2 – 5B)

4. The complete ruling out of any competition based on price to prevent loss-leading corporate providers under-cutting NHS tariffs, and to ensure that healthcare providers 'compete' on quality of care. Secured say Lib Dems.

Fallen short. There will continue to be a number of NHS services not covered by the tariff. With greater competition from private providers, this means that price competition for those services is not ruled out.

5. New private providers to be allowed only where there is no risk of "cherry picking" which would destabilise or undermine the existing NHS service relied upon for emergencies and complex cases, and where the needs of equity, research and training are met. Secured say Lib Dems.

Failed. The Government amendments addressing cherry-picking (now in the Bill as clause 108) only required that a provider be “transparent” in how they chose their patients. It said nothing about actually preventing providers from picking the easiest and most profitable patients. Furthermore picking patients is only one part of cherry-picking. Private providers will also be able to pick the easiest and most profitable types of treatment to provide, for example elective say surgery, while leaving the NHS to do the expensive, loss-making treatment, like emergency inpatient care. Nothing in the Government‟s amendments prevents this, and therefore risks destabilising those NHS services. Labour has tabled an amendment to achieve what the Government has failed to do (Amendments 42 and 43)

6. NHS commissioning being retained as a public function in full compliance with the Human Rights Act and Freedom of Information laws, using the skills and experience of existing NHS staff rather than the sub-contracting of commissioning to private companies. Secured say Lib Dems.

Failed. The Bill does nothing to prevent consortia outsourcing their entire commissioning function to private companies, and only having a limited oversight function. There is no compulsion for consortia to employ any NHS staff. (Schedule 2, 3(3) and 10)

7. The continued separation of the commissioning and provision of services to prevent conflicts of interests. Secured say Lib Dems.

Failed. The Bill gives power to GPs to commission services, and allows GPs to have a stake in health companies that provide services that the consortia might commission. Furthermore the GPs‟ surgeries themselves might be providing community services that the consortia might commission. The provisions against conflicts of interest are very weak – consortia only have to make provision “for dealing with conflicts of interest”. (Schedule 2, 7(2))

8. An NHS, responsive to patients' needs, based on co-operation rather than competition, and which promotes quality and equity not the market. Secured say Lib Dems.

Failed. The Bill gives extensive competition enforcement powers to Monitor, the new economic regulator, including powers to fine hospitals up to 10% of their turnover for anti-competitive behaviour, and powers to investigate and direct commissioning consortia on competition. Monitor has a new duty to promote integration, but that is less undefined, whereas the scope of anti-competitive behaviour is well defined in existing UK and EU competition law.

9. Uphold the NHS Constitution. Secured say Lib Dems.

Fallen short. Consortia and the NHS Commissioning Board have new duties to promote the NHS Constitution. But there are no regulations placed upon them to determine how they should do this, or penalties if they fail to do so. Nor are there any regulations placed on them to ensure they have to treat patients with 18 weeks, as mandated under the NHS Constitution.

10. Ensure full scrutiny, including the power to require attendance, by elected local authorities of all organisations in the local health economy funded by public money, including foundation trusts and any external support for commissioning consortia; ensuring that all such organisations are subject to FoI requirements. Secured say Lib Dems.

Failed. There is nothing in the Bill that ensures that private companies carrying out commissioning functions will be covered by the FoI Act. Their decisions will be stamped „commercial in confidence‟. (Schedule 2, 3(3))

11. Ensure health and wellbeing boards (HWBs) are a strong voice for accountable local people in setting the strategic direction for and co-ordinating provision of health and social care services locally by containing substantial representation from elected local councillors; and by requiring GP commissioning boards to construct their annual plans in conjunction with the HWBs. Secured say Lib Dems.

Fallen short. Consortia are under absolutely no obligation to abide by the views of Health and Wellbeing Boards. All a Health and Wellbeing Board can do if it is dissatisfied with the consortia is pass its opinion on to the NHS Commissioning Board, which has no power to intervene and force changes on the consortia. (Clause 23, 14Z12)

12. Ensure commissioning of health services has some degree of accountability by requiring about half of the members of the board of commissioning consortia, alongside GPs, to be local councillors appointed as non-executive directors. Alternative Secured say Lib Dems: Instead, they say they will strengthen the accountability of commissioning through health and wellbeing boards (which will have a majority of councillors if that is what local councillors want). This has the support of the movers of the conference amendment.

Fallen short. The Health and Wellbeing Board does not have powers to influence consortia. See point 11 above.

13. Offer additional freedoms only to foundation trusts that successfully engage substantial proportions of their local populations as active members. Alternative secured: Monitor, rather than the foundation trusts themselves, will retain a supervisory role.

Failed. Monitor is an independent quango, with no democratic accountability, and cannot be expected to be a local voice for patients at each Foundation Trust. Furthermore if FTs get into trouble there will be no mechanism to turn them back into NHS Trusts, as now.

Nick Clegg claimed to have secured 11 of his Conference‟s 13 demands. The reality is he has failed on 7 of their demands and fallen short on 6.
Original scorecard published here: http://www.guardian.co.uk/politics/2011/jun/12/nick-clegg-health-reform