Politics

Cameron’s hamstrung Exchequer

Published

7 years ago

April 28, 2017

Pledges cost money: David Cameron’s hamstrung Exchequer

THE NATIONAL tabloids are often full of foaming at the mouth headlines about ‘scroungers’, stories about ‘dole fiddlers’, and tales expressing horror that some people pretend to be ill to get disability benefits.

That is nothing new and it is conspicuous that there is a spike in such stories (particularly involving those from outside the UK) when governments of whatever complexion have announced ‘welfare reform’ (cuts) ‘designed to deliver to those most in need’ (not those in most in need).

WHERE THE MONEY GOES: PENSIONS

Welfare spending makes up around 35% of the UK Government’s spending and totals over £260b per year. However, ‘welfare’ is a broad term and only a fraction of welfare benefits spending is on unemployment benefits.

The largest amount paid out in welfare benefits is for pensions and the Office for National Statistics’ last available figures show that £108b of the £258b welfare spend in 2014/15 went on pensions.

In fact, total pension spending has increased by 25% since the financial year 2010/11. This isn’t surprising as life expectancy has been steadily increasing, so state pensions are being claimed for longer. The remaining life expectancy for someone aged 65, in 2016, is 21 years for a man and 24 for a woman.

What that means is that the idea that people have ‘paid in what they get out’ is increasingly untrue. Some of those claiming pensions will have contributed comparatively little to their state pensions, whereas actuarial calculations on future pension need carried out when older pensioners were working would have been predicated on them dying within a few years of retirement. The fact that we are all living longer means that the proportion spent on pensions is likely to continue to rise just at the point when the working age population which funds the spending is in decline.

WHERE THE MONEY GOES: CARE AND DISABILITY

£29 b is spent on personal social services. About £41 b goes on benefits for people who are ill or disabled, while £10 b goes on elderly care payments. Disabled people are more likely to live in deprived areas and work in routine occupations. In the 2011 Census, 18% of people (10 million) reported some form of disability.

As for elderly care, there were 9.2 million people aged 65+ in 2011, making up 16% of our population. The care home population has actually stabilised over the last decade at around 300,000 people, but there has been an increase of 600,000 people (likely family members) providing unpaid care between 2001 and 2011. In total, 5.8 million (10%) provided unpaid care in England and Wales in 2011, and the majority were of working age.

W HERE THE MONEY GOES: POVERTY AND THE UNEMPLOYED

£44 b goes on family benefits, income support and tax credits. This includes benefits such as child benefit and support for people on low income. Around £3.5 b goes to the unemployed.

There were around 3 million people in in-work poverty in 2013. This meant their household income (adjusted for household size and composition) was below the poverty threshold and were in employment themselves. The 10% of households with the lowest disposable income spent an average of £196 a week in 2013. Of this, half (£98) was spent on food and non-alcoholic drinks, transport, housing (including net rent), and household fuel and power.

As for out of work people claiming Jobseeker’s Allowance and Universal Credit, there were 760,200 people claiming these benefits in January 2016. This number has decreased by 11.2% compared with a year earlier

WHAT ABOUT FRAUD?

The notion, often pushed by the tabloids, is that there is a massive amount of benefit fraud. A poll carried out by the TUC in 2012 revealed that British people believed that 27% of benefits were claimed fraudulently.

To describe that as a ‘wild overstatement’ does not do how wrong it is justice. It seems to be one of those figures arrived at on the basis that ‘everybody knows’, rather than being remotely founded in reality.

The actual level of all fraud in the UK’s welfare benefits system was 0.8% in 2014/15.

While that is the amount of detected fraud, to suggest that it is completely out of line with actuality is to ignore the fact that the UK government employs 12 times as many benefits fraud investigators than it has tax fraud investigators.

The UK loses six times more through tax evasion and aggressive tax avoidance than the total value of fraudulent welfare benefit claims. Moreover, the UK fails to collect £34b in tax each year. And that is providing you accept the UK government’s figures, which are disputed by some economists as a wild underestimate.

While benefits fraud is an issue, there is an argument that the amount of time spent on it and the amount of publicity it receives is out of all proportion to the actual value of the fraud involved.

University of Warwick political scientist Adam Taylor said: “

This isn’t to say that benefit fraud is OK or that HMRC isn’t doing anything about tax evasion. But it is wrong that the government feels it can openly threaten the poor while merely cajoling the rich. And it is sad that the tax-burdened middle class reserve their outrage for the single mother working in the cafe while lionising the rich, famous and powerful who are getting away with it, tax free.”

WHO PAYS?

Successive governments have been aware of the crisis facing benefit payments for over two decades and yet none of them has sought to do anything more than fiddle at the margins and target the most vulnerable and weakest members of society: the Cameron Government spent an enormous amount of political capital to no good end making an economically pointless adjustment to housing benefit with the hated bedroom tax. The projected savings from that policy were tiny.

In addition, the amount of direct tax paid by the working population is contracting along with the numbers of those in work and the changing profile of work economic activity.

In the past, when the welfare model was fixed, there was generally one full time bread winner per working class family in a job which lasted an entire working life. Stable incomes represented a stable and predictable tax yield. However, the change from a high labour manufacturing economy to a service-based one with lower labour requirements, altered the whole dynamic of working class life. Multiple part time jobs may reduce the number on the unemployed role, but lower income jobs pay less into the UK’s tax base.

So, the question that all governments face is how to provide people with the welfare benefits they need without upsetting voters who have to pay for them.

NO EASY ANSWER

The issue is particularly acute due to David Cameron’s 2015 promise not to raise National Insurance, Income Tax, or VAT. Where else, the question might fairly be asked, would the money come from? Especially as there is a guaranteed 2.5% increase per annum in the state pension.

Oh – and older voters and pensioners vote in far higher numbers than the young. On the basis that turkeys seldom vote for Christmas, you can guess why politicians are wary of doing anything to affect that demographic.

One thing is certain, fiddling at the margins is not enough. But whether politicians have the will to make the sort of changes needed to the UK’s tax and welfare system, is one of those questions to which there is no glib answer.

Which do you prefer, after all, higher taxes or cuts targeted at those least able to defend themselves?

Politics

Fears new 4G phone mast would impact on historic building

Published

23 hours ago

April 29, 2024

Bruce Sinclair Local Democracy Reporter

A SCHEME for a 20-metre high 4G phone mast will need a full official application due to concerns about its impact on a nearby 19th century listed building, Pembrokeshire planners have said.

Applicants Cornerstone – in a ‘Prior Notification’ application to Pembrokeshire County Council, gave notice for the mast and ancillary works scheme at Ty Mawr Farm, Station Road, Boncath.

The development would allow a shared rural network for two of the main phone operators to provide 4G connection, a report for planners said.

The council’s Historic Environment Conservation Officer has objected to the proposal due to the impact on the Grade-II-listed 19th century Ty Mawr Lodge, just under 200 metres from the site.

“The conservation officer considers that given the historical connection with Ty Mawr Farm, the track to the south of Ty Mawr Lodge would be an essential part of the building’s historic setting, as the entranceway to Ty Mawr Farm,” the report says.

“The proposal would be clearly visible along the track with intra-visible views of the monopole and lodge from the track. It has been concluded that the proposed development would have a negative impact on the setting of the listed building in its current proposed location.”

The need for a prior approval, meaning a full application, was also raised by the Ministry of Defence (MOD) as the site falls within an area within which military aircraft may conduct low-level flight training.

The report for planners concluded that prior approval is required for the scheme.

News

‘Honest’ caravan site owner ran site ‘under the radar’ for 20 years

Published

2 days ago

April 28, 2024

Bruce Sinclair Local Democracy Reporter

A PEMBROKESHIRE caravan site owner who “honestly” admitted “dodging under the radar” by running his site without permission for some 20 years will not be allowed to continue doing do.

In an application before Pembrokeshire County Council’s April planning committee, Nicholas Kinahan sought retrospective permission to continue operating his caravan site with 19 touring pitches, along with caravan storage and the erection of a storage shed at Penrath Farm, Ryelands Lane, Kilgetty.

The long-running site operation, a kilometre from nearby Kilgetty, off the narrow Ryelands Lane, was discovered as part of an ongoing enforcement action.

The application was recommended for refusal on a long list of grounds including the site was in the open countryside, did not propose any community facility, was not supported by a Green Infrastructure Statement, no biodiversity enhancement features, the nearby road being a narrow single-track lane with no visibility splays for access, and concerns over foul waste disposal.

Kilgetty/Begelly Community Council has objected to the scheme on the basis of a lack of information provided within the application and access safety.

One third party representation was also received, raising concerns including a lack of information in respect of type of caravans and their use, no surface water or foul waste drainage details, a lack of an ecology survey, and no highway impact assessment.

Speaking at the meeting, farmer and caravan site owner Mr Kinahan said there were three caravans on-site after he moved to Kilgetty in 2004, housing tenants “on benefits,” with nine caravans on-site by 2010 and ‘vans from other sites stored on site later.

“We’ve done wrong and we know we’ve done wrong,” he told councillors, adding: “I can’t afford to live there without this little bit of extra income.”

Speaking on behalf of neighbour Micheal Ormond of Ryelands Caravan Park and his concerns, Andrew Vaughan-Harries – a planning agent who normally represents applicants – said to the applicant: “When I look at this application, personally, I think you’ve tried to do the application yourself.

“We see many, many problems with this application, a septic tank is not acceptable in 2024, there are lots of issues; it’s unsustainable and has to fail.”

Councillor Mark Carter said: “What can I say really? I think we’re looking at a very honest man, unfortunately in this case he’s got it wrong; he’s had a 20-year run of dodging under the radar.

“We have to respect the law and the policy and be fair to every caravan site.”

Moving the application be turned down, he said: “Much as I admire the gentleman for his initiative, I have to go with the officer recommendation for refusal.”

Councillor Rhys Jordan thanked the applicant for his honesty, adding: “I don’t think he’s tried to ride roughshod over planning, I think he’s been naïve, but I can’t support this application.”

The application was unanimously refused by planners.

Members heard the saga of Kinahan’s caravans may not be ended with a planning refusal, the option of a potential certificate of lawfulness – if he could prove the development had been in place enforcement-free for a decade-plus – being mooted at the meeting.

Committee chairman Cllr Jacob Williams said: “If you can prove it’s immune from enforcement it could be a ‘trump card’.”

News

Housing secretary plays down talk of Wales following Scotland on rent controls

Published

2 days ago

April 28, 2024

Chris Haines, ICNN Senedd reporter

THE HOUSING secretary poured cold water on suggestions Wales could follow Scotland’s lead by introducing similar rent controls, saying early indications show it has not worked.

Julie James was pressed for her views on rent controls in Scotland while giving evidence to a Senedd inquiry on the private-rented sector.

Altaf Hussain quizzed the housing secretary about affordability, raising concerns about rent rises since the pandemic, with landlords asking for big deposits and months’ rent upfront.

The Conservative warned this is leading some into unmanageable debt as he questioned whether there is a need to regulate a maximum deposit and rent.

Asked about the Welsh Government’s current thinking on rent regulation, Ms James told the local government and housing committee: “It hasn’t really worked in Scotland, I’m afraid.

“We’ve got some evidence, although it’s early days, to be fair, so we’ll want to monitor that for a longer time period. But, so far, the evidence is it’s not having the desired effect.”

Ms James pointed to a Welsh Government green paper calling for evidence on the right to adequate housing and rent control policies, with a second consultation to follow in summer.

She said: “We’re very keen to look at international examples from all over the place in terms of what works to get affordable rents into the sector.”

Ms James said she was very nervous the renters bill and leasehold reforms will not make it through the UK Parliament before a general election is called.

She warned: “We’ve got two years left of the legislative programme and the possibility of bringing a large bill through to replicate this is slim to none.”

Lee Waters, who was Ms James’ deputy until last month, said many tenants have damp or disrepair issues, but are unaware of their rights or too frightened for fear of eviction.

Suggesting the Welsh housing quality standard should be extended to the private sector, the Llanelli MS warned of a fundamental power imbalance between landlords and tenants.

Ms James criticised the UK Government for reneging on a commitment to uplift quality standards for the private rented sector at the last minute.

The housing secretary said protections under Wales’ Renting Homes Act have led to a substantial drop in evictions since coming into force in December 2022.

Mr Waters said tenants who are forced to move because their landlord has decided to sell face an average cost of about £1,700, suggesting two months’ rent should be waived.

Jack Sargeant, also a Labour backbencher, asked about pet-friendly policies, warning some homeless people face the dilemma of having a place to stay or giving up a companion.

Ms James said she was not able to pick which parts of the UK’s renters bill would apply, but she accepted an offer to be involved in “no benefits claimants” and “no children” exclusions.

She pointed to guidance that landlords cannot unreasonably refuse the right to have a pet but Ms James stressed there must be sensible limits

Recalling how she was once called to a high-rise building while working for Swansea council, she said: “We took an engineer with us and the lift kept breaking because people on the seventh floor were keeping a horse in their kitchen.

“This horse was relieving itself in the lift on the way down and it was breaking the mechanism. It was quite something to see this horse in this kitchen, I have to say.”

John Griffiths, who chairs the committee, raised concerns about a mismatch between the number of students and the amount of purpose-built accommodation in university cities.

Ms James said she has tried to persuade council planning departments they have the power to enforce better standards for student accommodation, so it can be more easily repurposed.

She admitted: “I have not been terribly successful at this but I plan to have another go.”

The former lawyer told committee members other levers will be looked at, including any unintended consequences of the council tax exemption for students.

Mr Griffiths also asked about scope for institutional investment in build-to-rent schemes, which often include shared facilities such as gyms.

Ms James said: “It’s not huge in Wales. It’s a lot less huge than it has become in England,” as she argued build-to-rent is not the solution to the housing crisis.

Mr Waters asked about low take-up of Leasing Scheme Wales, which offers incentives for owners to lease homes to councils, amid concerns the application process is “a bit of a faff”.

Ms James said the housing maintenance allowance, which has been frozen for years until the turn of the financial year in April, has been the main barrier.

She vowed to continue pushing the UK Government to say as soon as possible whether it is a one-off or if it will be uplifted next year in line with inflation.

“I think it’s pretty awful that they haven’t said so,” she told the meeting on April 24.