Politics

Universal Income plans depend on Westminster

Published

4 years ago

May 21, 2021

MARK DRAKEFORD’s announcement that the Welsh Government plans to trial Universal Basic Income in a few locations in Wales captured headlines in online media.

The First Minister was variously said to have ‘hinted’ at a trial or announced a trial would take place.

However, nobody should have been surprised by the First Minister’s announcement.

Not only was the policy contained in Labour’s Manifesto for May 6’s election – a bit more than ’a hint’ – but also the principle of holding a trial in Wales was enthusiastically passed by the last Welsh Parliament in September last year. It was a policy in Plaid Cymru’s election manifesto and Labour’s; so, whether Labour went it alone in Government or was in partnership with Plaid Cymru, a trial was on the cards.

WG KNOWS WESTMINSTER HAS THE FINAL WORD

However, whether the Welsh Government can carry out a trial is beyond its immediate control.

Headlines that said the Welsh Government WILL carry out even limited Universal Basic Income trials are also jumping the gun.

When the Senedd debated a motion brought forward by Jack Sargeant MS on September 30, 2020, here is what the Finance Minister Rebecca Evans had to say about it: “The Welsh Government would be open to such a trial taking place in Wales, but we have to be realistic that such a trial would not be possible without the active cooperation of the UK Government, and this is because of the interaction of universal basic income with the tax and benefit system.

“If such a trial were offered, we would also require that conditions were met to ensure that the Welsh Government and this Senedd were able to play a significant role in the design, governance and accountability of any scheme.

“Were the Welsh Government to make payments to individuals without the cooperation of the UK Government, this could simply result in them being ineligible for existing benefits or paying more in tax.

“Aside from the fact that this would not then be a proper test of the effect of an unconditional payment, it would result in the transfer of resources from the Welsh Government to the UK Government.

“And, sadly, our recent experience of the UK Government’s approach to the taxation of our payments to social care workers doesn’t suggest that we should expect their active cooperation.”

In short, the Welsh Government needs Westminster’s ‘active cooperation’ to make a trial possible.

Without Westminster’s cooperation, those who get the Universal Basic Income could (are almost certain to) lose all of their entitlements to other benefits, tax credits, and other means-tested benefits. They could also have to pay tax on it.

WHAT IS UNIVERSAL BASIC INCOME?

Universal Basic Income is not a new idea. Its long history stretches back to antiquity and has been a feature of both romantic and progressive political theory for centuries.

At its simplest, Universal Basic Income does away with a raft of welfare benefits. It substitutes them with a single payment of a fixed amount.

Schemes that guarantee a basic income, short of enough to live on, exist in a few US states and a handful of national economies. However, those are more of an income floor for those who are otherwise dependent on welfare benefits. They are not an actual Universal Basic Income.

A national trial in Finland ended after two years with no definitive finding of better outcomes for those who received UBI over those who did not.

The Covid pandemic increased interest in the idea of UBI in continental Europe. At the same time, the US used a series of relatively modest income replacement initiatives to stop people’s descent into poverty (or into deeper poverty).

The UK’s furlough scheme was – essentially – a basic income guarantee but not genuinely universal in nature.

A major multi-national academic study published in 2017 found that UBI probably improved some health outcomes and increased the likelihood of children attending school.

However, the same report also concluded the evidence for positive outcomes from UBI-type schemes was ‘very uncertain’.

THE COST TO WALES

The main deterrent to a truly Universal Basic Income is cost.

• If a full universal basic income were paid in Wales to all working-age adults and set at the level of the official living wage, the cost would be around £35 billion a year.

• If set at the level of the real living wage, the cost would be around £40 billion.

• For illustration, those figures are around twice the size of the Welsh Government’s budget. As a further comparison, income tax in Wales raises in total just over £5 billion.

• Of course, the costs could be much reduced if universal basic income were paid at a lower rate. However, payment at a lower rate would reduce its attractiveness.

Those last four points are not our own words. They are the Welsh Government’s position as set out in 2020 by its own Finance Minister.

Nothing has changed those figures since September 30, 2020.

They demonstrate the prohibitive and unsupportable cost of UBI to Wales without massive and systemic change across the whole UK.

SCOTCH MIST

As an illustrative example of the timescales and complexity of introducing even a pilot scheme, we only need to look at Scotland.

In September 2017, the Scottish Government announced it would support local authority areas to explore a Citizen’s Basic Income Scheme by establishing a fund to help regions to develop their proposals further and establish appropriate testing.

The funding offered was £250,000 over the two financial years 2018/19 and 2019/20.

Four local authority areas: Fife Council, City of Edinburgh Council, Glasgow City Council and North Ayrshire Council, worked together to research and explore the feasibility of local pilots of Basic Income in Scotland.

Notlaunch a basic income. Explore its feasibility.

Over three and a half years since the Scottish Government’s announcement, there is still no UBI trial in Scotland.

Putting such a scheme in place depends, yet again, on Westminster’s cooperation.

A report on the progress of the feasibility study notes’ any pilot [must] have the necessary support to influence the future of national policy and the role of Department of Work and Pensions (DWP), HM Revenue and Customs (HMRC), HM Treasury and the NHS will be vital in the design and implementation of a Basic Income pilot.’

Three years to design and complete a feasibility study into a limited trial in four local authority areas in Scotland combined with the need to wait for Westminster approval does not suggest a quick fix.

And if it’s not a rapid process in Scotland, it will scarcely be quicker in Wales.

Community

Pembrokeshire town 4G phone mast plans withdrawn

Published

2 days ago

December 20, 2024

Bruce Sinclair - Local Democracy Reporter

PLANS for a replacement 20-metre-high 4G phone mast tower in north Pembrokeshire, which the local town council says would have “an unacceptable adverse impact” on the national park’s beauty have been withdrawn.

In an application before Pembrokeshire Coast National Park, Cellnex, through agent Telent, sought permission to replace an existing 10m high mast with a new 20m 4G tower with three Vodafone antennae and nine mast head amplifiers, and associated works, on land at Dwr-y-Felin Farm, Fford Bedd Morris, Newport.

The application for a 4G mobile base station for the mobile network operator(s) (MNOs) Vodafone Ltd in conjunction with Cornerstone. The application site is owned / operated by Cellnex UK, a radio site infrastructure provider.

A supporting statement accompanying the application said: “The proposed antenna height of 20m is essential to provide new 4G coverage and replacement 2G and 3G service provision to the surrounding area. 4G radio signals are more sensitive to physical obstructions than older technologies.

“This is because the higher the frequency band the greater the reduction in signal strength, increasing the likelihood of dropped calls and reduced data rates for internet browsing,” adding: “Generally, the higher the signal frequency the more it will be impacted by clutter. It is for this reason that there is the height of 20m is required.”

It went on to say it “should be noted that a radio base station within this location has already been considered acceptable and has become an established feature within the area and the proposed upgrade albeit different in design to support the latest equipment will not be of substantial or detrimental harm to the national park, conservation area or heritage assets”.

Newport Town Council had objected to the application, saying: “The proposed development (if approved in its current form) will have an unacceptable adverse impact on the qualities and special landscape and seascape character of the National Park and also on the special qualities of natural beauty and tranquillity.”

The application has now been withdrawn.

Charity

Flats for veterans to be built at VC Gallery, Pembroke Dock

Published

2 days ago

December 20, 2024

Bruce Sinclair - Local Democracy Reporter

A CALL to build flats for armed forces veterans on a former Pembrokeshire school yard/playing field next to veterans’ charity the VC Gallery has been approved by county planners.

In an application before Pembrokeshire County Council, veterans’ charity The VC Gallery sought permission for eight flats in two blocks of two-storey buildings, including wheelchair accessible flats, for Armed Forces veterans on land to the east of the former St Marys Catholic School site, Britannia Road, Pembroke Dock.

The former school, which closed in 2019, is currently used as the VC Gallery, itself an expansion of veterans’ charity the VC Gallery’s home in Haverfordwest, set up by Barry John MBE.

Documentation, through agent Pembroke Design Limited included a supporting statement by Barry John MBE, which it says “explains the issues that veterans face after leaving the services, the need for dedicated housing provision, the support that VC Gallery’s staff and volunteers provide and the gaps in current provision which the proposed development will help address”.

It added: “Although the development will provide and encourage independent living for its tenants, essential physical and mental support will be provided by the staff and volunteers in the VC Gallery as required, in accordance with individual veterans’ needs. Many will need a high level of support and the close proximity of the flats to the facilities and people on hand in the adjacent VC Gallery is therefore critical to the proposal’s purpose.”

Mr John’s statement said: “We want to create a unique offer to Armed Forces veterans in Pembrokeshire by offering up not just quality accommodation in a gated and safe environment but to also have a bespoke peer mentoring service.”

He added: “Working alongside our stakeholders The Armed Forces Covenant Fund Trust and the OVA (Office of Veterans Affairs) we have secured a grant to draw up plans and to look at how the secured land at the VC Gallery Pembroke Dock can be turned into a bespoke housing solution for Armed Forces Veterans.

“We have Service level agreements with the local authority for specifically supporting tenancy in veterans which will also extend to giving vital counselling services. Our work with the health board and provision for peer mentorship also gives us great grounding for effective help on a practical level for the veterans’ village but we will need a more designated package around the housing we provide to include both mental health and also maintenance (something we don’t have at present).”

His statement finished: “We think the need is great, we have the land, we have the skills for care and the ambition to help. It would be a project above all social housing enterprises, and we want to make a go of it.”

Politics

Call to stop councillors being employed by MPs and MSs

Published

3 days ago

December 20, 2024

Bruce Sinclair - Local Democracy Reporter

A CALL to stop senior Pembrokeshire county councillors being employed by MPs or Senedd members is to come under greater scrutiny at a special council committee.

In a Notice of Motion submitted to the December meeting of Pembrokeshire County Council, Independent Group leader Cllr Huw Murphy said: “While it is acceptable for Cabinet members to hold other employments, no serving county councillor should hold a Cabinet position within Pembrokeshire County Council (PCC) while simultaneously being employed by a sitting Member of Parliament (MP) or Member of the Senedd (MS).

“Cabinet members hold executive responsibilities, and such dual roles risk potential conflicts of interest, particularly if Cabinet decisions conflict with the policies of their employer, often a political party. This concern is heightened in a council where most members are Independents.”

Cllr Murphy’s notice of motion was heard at the December meeting of Pembrokeshire County Council where it was agreed the matter be referred to a future constitutional review committee.

In the registration of interests for the eight members of Leader Cllr Jon Harvey’s Cabinet, only Cllr Joshua Beynon, deputy leader of the Labour Group and Cabinet Member for Corporate Finance and Efficiencies, lists a politician as an employer, in his case newly-elected Mid and South Pembrokeshire MP Henry Tufnell.

Responding to the notice of motion, Cllr Beynon has previously said: “This motion, which appears to target my unique position as a Cabinet Member for Finance and part-time parliamentary employee, raises serious questions about its fairness, legality, and intent.

“At its core, this is a politically motivated motion that seeks to undermine the principles of fairness and freedom. It attempts to dictate lawful employment choices of councillors, disregarding the importance of balancing public service with individual rights. Such an approach risks creating a chilling effect, discouraging capable individuals from serving in public office in the future.”