Monday 28 November 2011

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.

Sunday 20 November 2011

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.”

Friday 11 November 2011

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/

Tuesday 8 November 2011

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.

Monday 7 November 2011

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.

Sunday 6 November 2011

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.

Friday 4 November 2011

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.