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notes from JK

Rebutting Labour lies in Westbourne

Labour have got themselves in a tizz saying that I’m somehow “intimidating the opposition”  by tweeting that they were lying. Is one tweet from me so scary?!

 

They aren’t happy about my statement in relation to their campaigning in the Westbourne by-election. Rather than sensibly backing away from their falsehoods, I shall have to expose them further in public. Labour were serially dishonest in both last year’s general election and the local elections this year. It did them a great disservice and the results spoke volumes as to how ineffective their approach was. I suppose I should be thankful as Greens did well out of it. But I think we are all reduced when political discourse descends into outright falsehood. Each party have their own great traditions and histories – they should build on that to make their distinctive cases for how they can improve the city. Lying about the competition doesn’t help the voters decide and it doesn’t move the debate forward.

 

Let’s look at the claims, some of which are on their Facebook page, others are in their leaflets which aren’t online.

 

LABOUR CLAIM: Greens refused government funding for a new school in Hove.

GREEN ANSWER: False. The government aren’t offering funding. If we want a new school then all we are allowed to do is run a contest for which independent providers bid to run an academy funded direct from central government, not through the council. There would be no democratic control over this school and they wouldn’t need to use our city-wide admissions scheme, so there would be no guarantee it would solve the problems. Labour’s “proposed co-operative school” would be an academy which teaching unions, the Greens and now even Jamie Oliver* oppose as a retrograde step for public education.

Furthermore Labour were the ones who caused the schools shortage. When in administration they ignored warnings from midwives and GPs that a baby boom was starting in 2005/6. Even worse, only five years ago, they actually closed a major secondary school in Brighton (Comart). Which is why there aren’t enough places to absorb pupil numbers.

There are actually enough school places for everyone but the real issue is that they might not be at a parents’ first choice school. Building a new school would not solve that. We are working hard to solve the issues in the school system. Labour have some gall claiming to have a solution to the problem they caused!

*Oliver has flagged that academies don’t need to adhere to national school food standards, and many academies aren’t.

LABOUR CLAIM: The Greens promised a new secondary school and new primary school for Hove.

GREEN ANSWER: Debatable. We did not promise these in the May Council elections. We said it during the 2010 parliamentary elections before the Tories came to power and stopped local authority school funding. We did not get elected to the City Council on this ticket as by then we knew the school-building programme had been ground to a halt by Michael Gove.

 

LABOUR CLAIM: Labour will put an end to portakabin classrooms.

GREEN ANSWER: False. There are no portakabin classrooms in Hove at the moment. This is just dishonest scaremongering. And Labour are the smallest party on the council, so how exactly would they propose to change matters?

 

LABOUR CLAIM: Greens have plans to cut Sure Start funding at Conway Court

GREEN ANSWER: False. The Sure Start programme created children’s centres. There are no threats to the Conway Court children’s centre which was funded by Sure Start.

 

LABOUR CLAIM: Labour are “campaigning to protect the NHS from Tory cuts and privatisation.”

GREEN ANSWER: Highly debatable. When Cllr Sven Rufus and I presented a motion to full council opposing NHS privatisation, the Labour group of councillors voted AGAINST it and the most vociferous speech against the motion was by a Labour councillor.

Furthermore BBC Newsnight and the Spectator have both shown how Labour’s own economic plans are less than 1% of GDP away from the Tory cuts plans now underway. They planned to cut by nearly as much.

 

LABOUR CLAIM: Labour are against Green’s “record Council Tax”

GREEN ANSWER: Really?! In the ten years of Labour control, council tax rose 120%. Greens are proposing a below inflation increase of 3.5%. If Labour are supporting the Tory government’s tax freeze grant then they should list the £5.4m of additional service cuts they support – which is what the council would need to do to be able to afford the grant, or an at least 8% increase in council tax the year after. Which is it Labour?

Labour state that Tory cuts should not be passed on to residents through council tax. They also claim to be against inflationary increases in parking fees, yet when in administration Labour increased tax and parking charges with great gusto. Balancing the budget in the face of cuts with no increases in fees or council tax would require devastating service cuts. I look forward to Labour explaining which ones, I’m sure the unions would like to know too.

The table below shows the council tax increases for every Labour-led budget in Brighton & Hove since the city council was created. The Green proposal of 3.5% is below EVERY SINGLE ONE of their tax increases.

Year % Increase
1997/98
1998/99 9.8
1999/00 7.2
2000/01 12.5
2001/02 6.0
2002/03 10.9
2003/04 14.5
2004/05** 7.7
2005/06 4.8

** Includes notional adjustment for Fire

 

LABOUR CLAIM: Greens are pushing Brighton & Hove to be the only council in the country to refuse the government tax freeze grant.

GREEN ANSWER: False. A recent survey showed that up to 20% of councils are likely to refuse the tax freeze grant. We are not the only ones and this has been widely reported in all the major media.

 

LABOUR CLAIM: Greens promised to “resist all cuts”.

GREEN ANSWER: False. We didn’t and I have repeatedly told Labour this is a lie, but they persist. As Labour well know, the law has changed and if councillors do not set a budget then the government will impose one on us. Greens promised to “resist, to the greatest extent possible, the service cuts and privatisation imposed [on us]” and that is what we will do.

 

LABOUR CLAIM: Why did the Greens say before the elections they wanted Brighton and Hove to be a “zero waste city”, but now insist that is “clearly impossible”?

GREEN ANSWER: False. We have never said it is “clearly impossible”. They also seem to not know what this refers to. In 2008 the then Labour environment minister Hilary Benn announced that councils could get pilot funding to become a “zero waste place”. Our proposal was to achieve this funding, however the new government have currently stopped this programme. We remain absolutely committed to reducing waste.

 

LABOUR CLAIM: Greens set the date of the by-election.

GREEN ANSWER: False. The by-election was called by the unexpected resignation of a Conservative councillor. When the by-election is held is at the discretion of the Returning Officer (the Council’s Chief Executive) within limits set down by law. It is NOT at the discretion of the Green administration, which would clearly be inappropriate.

 

LABOUR CLAIM: Greens wanted the by-election early to avoid debating the budget.

GREEN ANSWER: False. The budget will be published on 1st December, the earliest a detailed budget plan has ever been published by this council. We want to debate and consult on the proposals. This date is well before any possible date for the by-election could have been.

 

I make that 8 outright lies and the rest are debatable. So no Labour, I won’t retract my comments. But now that I’ve pointed out your dishonesty, will you may any retractions or correction?

UPDATE: To include link explaining Jamie Oliver’s views on academies.

UPDATE 2: Added table of Labour council tax increases during their time in administration.

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notes from JK

The £3m grant that would cost our council £5.4m

At the Conservative Party conference this autumn ministers announced a new gimmick: a council tax freeze grant. If councils agreed to keep council tax at the same rate as the previous year they would get a grant worth the equivalent of a 2.5% increase, for one year only.

On the face of it a clever way to show that Conservatives care about the squeezed middle classes in the face of increased inflation. Yet the harsh reality is this scheme doesn’t make financial sense for councils, and is yet another way the government are slashing budgets for local services. And in the long run it would likely lead to even greater council tax increases.

It’s absolutely clear to me that Greens were voted the largest party on Brighton & Hove City Council because of our commitment to public services and resisting the Tory agenda of “small government”. Residents expect us to use our Green values to fight for the fairest possible settlement in the face of unprecedented cuts from central government.

The tax freeze grant is another attack, a wolf in sheep’s clothing, which we oppose.

Why is it bad for the council? Because it would over 2 years cost us £5.4m, and more over the longer term. Let’s explore that in detail with an imaginary council called Picklesville with a £100 of income this year from council tax.

For the next year the councillors in Picklesville can either take the government’s grant worth a 2.5% increase or go with the Green option of a 3.5% increase.

If they take the government route they will receive £100 + £2.50 = £102.50 (£2.50 being the 2.5% grant from government).

If they go the Green route they will receive £100 + £3.50 = £103.50 (£3.50 being the 3.5% increase on council tax).

The next year the Picklesville councillors again need to decide on council tax. If they went for the government grant, that is now gone. So to catch up in the face of continued reductions in their formula grant (the other main source of income for councils other than charges) they decide to put council tax up by the maximum allowed, which is 3.5%. However because of last year’s freeze the starting point hasn’t moved. So they will receive £100 + £3.50 = £103.50 (£3.50 being the 3.5% increase on council tax over the previous year).

If they had gone the Green route then, still facing huge cuts in formula grant, they also decide to increase council tax by 3.5% so they receive £103.50 + £3.62 = £107.12 (£3.62 being the 3.5% increase on council tax over the previous year), quite a bit more than the other option.

These are of course hugely simplified numbers, but if you think in millions of pounds you can see that just freezing for one year (which every council already did for this financial year) leaves councils way behind each year, even if they keep increasing council tax. For Brighton & Hove accepting the one year freeze grant would mean £5.4m less income over 2 years. As we need to find savings of about £35m for the next two financial years, that £5.4m is money we can ill afford to give up.

With inflation running at over 5% and councils not allowed to increase council tax beyond 3.5%, council income is falling further and further behind the increasing costs our service providers are experiencing, even if we do increase tax by as much as we’re allowed.

The difference for the average council tax paying household in the city will be 57p a week, but the council can collectively use all those extra pennies to great use in protecting services and jobs the Tories would rather we axed. I’ve challenged the local Tories to list the extra £5.4m of service cuts they would propose if we adopt the grant as they are advocating.

Brighton & Hove is not the kind of place where we want to give up on the elderly, marginalised or vulnerable – those most in need of help. We believe in civilisation, in public service and the greater good.

A £3m grant that loses us £5.4m is not a good deal, how could it be? Accepting it would be agreeing to more Tory cuts, and acquiescing to the cynical politics of the Coalition government. As a Green, I resist.

(For the next 6 days you can watch the BBC Politics Show’s take on this here from the 38 minute mark)

UPDATED 26/11/2011: Revised figures now show the lost income from taking the grant would be £5.4m (this post originally had the figure at £4m). I also have clarified the difference in cost to be 57p per household (previously I referred to tax payer which is imprecise as council tax applies to properties and not people).

Local Government Chronicle has also shot a hole through Tory rhetoric that “Greens are the only ones” taking this approach, their survey shows 20% of councils (2/3rd of which are Tory led) are likely to reject the freeze grant. Furthermore many who said they would take the grant admitted it would lead to higher tax in future years. Exactly as I have said all along…

UPDATE 5/12/11: This interesting piece shows that most of the freeze grant has been taken from local government pensions funds. Completely unethical especially given the government rhetoric about the funds being a ‘burden’ which need more contributions.

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notes from JK

The great local government squeeze

 

The government is dramatically cutting funding for local councils. You may be aware of the headline figures but these don’t adequately reflect the depth of the devious ways in which this money is being clawed away from local services and kept by the Treasury in Whitehall.

 

For example over 4 years Brighton & Hove City Council’s Formula Grant from central government will be reduced by 33%. But that’s just the start of things, the public face of the reductions.

 

Now begin the cuts by hook or by crook: Because academies don’t have to use local authorities for services, councils will lose some funding there, but not in a way which actually reflects the number of academies in our area – it’s a flat cut across the whole country.

 

Next the government cancelled the trading element of the Carbon Reduction Commitment. This would have ensured that the scheme was overall cost neutral. Now it will be costing Brighton & Hove over £200k next year which is going straight to funding the Department for Energy & Climate Change’s budget savings targets.

 

Council Tax Benefit is next, where the government is cutting 10% off the funding and leaving councils to either make up the gap themselves (somehow) or decide how to deliver reduced benefits to our residents. The depth of harm this change will bring is shown by the finance directors of all councils in Sussex unusually having jointly written to the government expressing their concern.

 

There’s also the case of the “missing business rates income”. Law requires that local authorities are paid from a ring-fenced fund made up of all the business rates collected. Every penny collected from business rates should be re-distributed to local government. However after the spending review it became clear that the total amount paid to local authorities in England will be much less than the total amount of business rates collected. The missing amount is estimated to be £2.5 billion pocketed by the Treasury and Brighton & Hove’s share of this would be about £12.5 million.

 

In the future there’s more to come. The government are proposing to introduce reform of local government finance. At the moment all business rates go into the (supposedly ring-fenced) national pot which is then redistributed to councils through a formula. The proposals are that councils would get to keep their business rates with a few caveats:

 

  • Ministers have promised that the first year of the new system will not differ significantly to the last year under the formula. So there will be a system of tariffs and top-ups to try and balance council incomes in line with what they received the year before.

 

  • Councils will be able to only keep new business rates income if that growth exceeds inflation and a nationally set growth target for England. Failure to exceed that target will result in councils not just standing still, but actually losing funding. Yes, losing funding. Business rate income which doesn’t exceed the target plus inflation will be clawed back by the Treasury, on top of the £2.5bn they’ve already sliced from business rate funding for local government.

 

All councils will have choices about how to face these cuts – will they prioritise results or appearances? Will they take the tough longer term thinking or try to take short term quick fixes which will swell into bigger problems in a few years? Will they go for redundancies or reduced pay? It will be incredibly tough and councillors of all political stripes will have considerable soul searching to do before budget setting meetings.

 

But we must never forget that this is all being imposed on us by a cynical Conservative/Liberal Democrat government who continue to pump out misleading nonsense. Government claims of reserves groaning with spare cash, acres of spare land and wasteful spending keep emerging to be debunked. but only after the headlines have splashed. Councillors will be able to decide the nuance of the cuts, but the size and speed is all of the government’s making.

 

What is their agenda here? It certainly isn’t to empower local government when they cut our budgets at every turn and don’t even trust us to set business rates ourselves. I think quite simply the government are trying to push as much of the pain of their mad budget cuts onto local government. In this way they can deflect the blame for service cuts onto councillors rather themselves. Almost as criminal as the Coalition’s actions is the Local Government Association’s extraordinary passivity in most of this. Do councils need to form a new collective to properly voice their anger in this time of crisis?

 

The government are destroying local government by starving it of resources. People’s quality of life will visibly suffer from this, the vulnerable will be put at risk and public services will be a wan shadow of their former selves. Welcome to localism.

 

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notes from JK

Letter to Eric Pickles asking for end of second home tax discounts

This week I wrote to the Local Government minister, Eric Pickles MP, requesting that councils be given the option to end council tax discounts for second homes. At the moment councils can choose the level of discount for second home owners, but only down to a minimum 10% discount. Even this 10% costs Brighton & Hove City Council £177k a year in lost revenue. I believe we certainly shouldn’t be encouraging second home ownership with tax discounts, particularly when so many struggle to find affordable main homes.

Ideally there should be complete local control over land taxation (which is effectively what council tax is) but failing that we should at least be given discretion over the discounts. Tories claim to believe in localism and that they are devolving power and autonomy down to councils. Yet they are imposing massive, unnecessary reductions on our budgets whilst failing to give us any meaningful new powers or freedoms in relation to how we generate income. Ending the nationally imposed 10% minimum discount would be a small step in the right direction.

You can read the formal press release and the full letter is copied below.

 

 

Cllr Jason Kitcat
Brighton & Hove City Council
Kings House, Grand Avenue
Hove BN3 2LS

The Rt Hon Eric Pickles MP
Secretary of State for Communities & Local Government
Department for Communities and Local Government
Eland House, Bressenden Place
London
SW1E 5DU

28th September 2011

 

Dear Mr Pickles

 

SECOND HOME COUNCIL TAX DISCOUNTS

I am writing to ask that you give councils the opportunity to opt out of providing second home council tax discounts if they so wish.

As you will know councils face challenging financial times due to your government’s imposed budget reductions, demographic pressures and inflation, particularly on energy costs. Furthermore given the desperate shortage of affordable homes, we believe some councils including Brighton & Hove City Council would, given the powers, opt to eliminate second home council tax discounts. This would signal our desire to discourage second homes being maintained, and rather that they should be available for people use as their main homes.

In Brighton & Hove it currently costs the council £177,000 in lost revenue each year to provide the second home discount (see below for breakdown of this figure). We believe these funds should be used to protect existing services rather than subsidise reduced costs for second-home owners.

I know you passionately believe in localism so ask that you give local authorities the discretion on whether to offer a second home discount on council tax.

I look forward to your response.

Sincerely,

Cllr Jason Kitcat

Cabinet Member for Finance & Central Services

 

 

Breakdown of lost revenue from second home council tax discounts in Brighton & Hove (2011/12)

 

  Band A B C D E F G H Total
number of discounts 191 228 269 213 198 68 49 7 1223
CT payable £988 £1,153 £1,318 £1,482 £1,812 £2,141 £2,471 £2,965  
10% x number of discounts £18,877 £26,289 £35,448 £31,577 £35,876 £14,561 £12,107 £2,075 £176,810

 

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notes from JK

From the scrapbook: Beetles, bushes & foreign policy

An interesting letter I clipped from The Guardian many years ago. I couldn’t find it online so am not able to date it.

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current affairs

Do good people flinch from securing public office?

“Recent evidence suggests that in America, especially, charlatans prosper on the hustings, while good people flinch from exposing themselves to the humiliations and deceits essential to secure public office.” — Max Hastings in the Financial Times

An interesting column from Max Hastings on what we expect from our political leaders. Particularly in times of crisis they can appear rather lacking – the disappointments of Obama, the weasle words of Cameron, the phoney glitz of Sarkozy.

Hasting makes the assertion I quote above, a theme I see occurring more often in the comment pages. It would be interesting to get some data on this. How many people have been put off going for high public office due to the pressure, career risks and media scrutiny? (Of course how many of those are ‘good people’ would be harder to define.) Some might suggest the media glare is positive as it makes those with dark secrets reconsider. Perhaps but there are plenty, like John Edwards in the US or Mandelson in the UK, who ploughed on despite their skeletons in closets.

Without data to back up the view that charlatans proceed into politics I will beg to differ on such generalisations. But it’s interesting to note how many politicians have felt they deserved perks, extra pay and expenses by ‘working the system’ wherever they have been based. A sense of entitlement rather than service has grown amongst some. That is a problem.

Additionally I think many politicians are getting skewered by the awful political tactic of ‘triangulation’. They now have too many masters to please, too many promises to keep and having triangulated one too many times so that nobody quite knows what they stand for.

Easily said because I’m sure in the heat of a national election campaign the temptations are many to please each interest group you meet. But look at the mess we’re in now. Far better to be honest about your intentions.

Manifestos are one way to keep politicians honest, but they can’t respond to changing circumstances like global financial crunches. Crises really do depend on the character of those elected. And frankly I don’t think there are many great characters currently holding high office in this country at the moment.

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notes from JK

Subtle hint: Total Politics blog awards

Click here to vote in the Total Politics Blog Awards 2011

It’s time to vote in the Total Politics Blog awards. Go and tell them which political blogs you like here. You could vote for this humble blog whilst you’re there… or not!

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notes from JK

Links 10-08-2011

Lots of good writing on the web at the moment, trying to get to grips with the turmoil in the world. Three good, different reads:

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current affairs

The bank bailouts were a rotten attempt at appeasement

As the stockmarkets go on a rollercoaster, and the US squeaks past a technical debt default, the world feels like an uncertain place. There are many difficult decisions ahead, but also some of the choices before national leaders seem pretty stark and obvious.

Using ‘the deficit’ as a reason to impose ideological cuts was a choice taken by the Conservative and LibDem coalition. They’ve had plenty of opportunities to re-consider, including the awful spectre of serious rioting in our capital.

There’s no excuse to go on the rampage, looting or arson. But growing inequality, declining social cohesion and fewer opportunities for many are known to have a devastating impact on communities. How many people with hope, with prospects of a decent job, go out rioting?

Perhaps cyncism over politics, such as Blair ignoring the massive Iraq peace marches, has accelerated the move in some minds from peaceful protest to more radical action. But rioting and direct action are not the same thing. There are motivations at work but there’s palpable anger at hand over inherent unfairness in the current system. Similar violent outbursts occurred in deprived parts of France but similarities drawn are at best inconclusive. Many argue there was little politics in these riots, just consumerism. Perhaps, but that has political ramifications too.

The situation, put simply, is this: The economy is weak, our education system is not fit for purpose, those who complete a degree find it won’t necessarily get them a good job and meanwhile we are vulnerable to rising energy costs as well as a massively indebted Western world.

In this context the bailouts of the banks, and the financial system as a whole, was in my view no better than appeasement in the worst sense of the 1938 Chamberlain-Hitler Munich Agreement.

Of course there were no painless choices, then as now. Politicians faced a set of bad-looking options. I can see why Brown and Darling in 2008 were desperate to avoid having to explain why savers and investors were suffering for the failings of banks.

But… are we really any better off now? We still see questions being raised about the financial viability of not just banks now, but whole countries. The system has not been fundamentally fixed, it just continues to unravel. How could it be different?

In the UK a Green-led action plan to right things would be:

  1. Reverse reductions to key areas of government spending including Police, NHS and local government.
  2. Close tax loopholes, clamp down on tax avoidance and ensure highest earners pay their fare share.
  3. Redirect massive government funding from defence and road building to preparing the UK for a carbon-free future: Wind power, electric trains & cars and a huge programme of energy efficiency for homes as well as offices. This will create jobs and skills.
  4. Reform the local tax system to use land value tax which encourages efficient land use and bringing empty properties into use. This will help to rebalance the UK’s runaway property market.
  5. Regulate banks far more strictly in terms of their risk exposure, how they lend and push for a ‘Tobin Tax’ on currency speculation transactions.

Those five points won’t right all wrongs, but will get us moving in the right direction.

At the moment much of the current government’s actions are taking us backwards, away from a better society and reducing our readiness to face the challenges we know are ahead.

Quality of life matters. I don’t think our current national political leaders are looking far enough ahead to fix what’s broken.

There’s lots of work to do and debating water cannons does not get us to where we need to be.

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notes from JK

Letter in response to budget queries

I submitted this letter to The Argus in response to this spread of letters on the budget process. Unfortunately The Argus haven’t yet chosen to publish it, so here it is:

Sir,

How quick the Conservative and Labour councillors are to criticise, yet it is both their parties who argue the devastating budget cuts being imposed on us are necessary. Greens disagree and we are campaigning hard to change national policies which will harm the poorest and most vulnerable residents of our city. We face a 33% cut in the council’s formula grant over 4 years.

Conservatives are being disingenuous in claiming they had no plans for a 2.5% council tax increase. On 17th February 2011 the Conservative administration’s cabinet voted for a Medium Term Financial Strategy which included a 2.5% council tax increase for the next three financial years. Will Jan Young and Cllr Ann Norman withdraw their statements to the contrary?

Let’s be clear, the discussion currently underway is about the next council budget for the financial year 2012/13. It is highly misleading to suggest the underspend from the last financial year (2010/11), which in their dying days Conservatives had already programmed into the current year’s budget (2011/12), should have anything to do with the next year (2012/13)!

It will be up to all councillors to vote on what the next budget will be, including council tax. We understand the challenge everyone’s finances are facing: We are being careful with every penny. The proposed 3.5% increase is below inflation and will cost a Band D taxpayer 85p more a week compared with this year’s tax rate. Meanwhile the council needs to reduce its spend by up to 15% in the next two years.

Our whole budget approach will be to face that challenge in the most open, inclusive and sensitive way possible. I encourage all The Argus’ readers to participate in the consultation process when it starts later this year.

Sincerely,
Cllr Jason Kitcat
Green Cabinet member for Finance & Central Services
Brighton & Hove City Council

UPDATE: The Argus have now published the letter.