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Tax Payers Alliance – Council Spending Uncovered: Councils spend average of £1 million a year on publicity

In December 2007, the TaxPayers’ Alliance produced the first ever examination of the growth of town hall spending on publicity over the last decade, which is itemised in the annual accounts of the 450-plus local authorities in the UK.  It found that councils had doubled their spending on publicity, creating a £450 million publicity machine, at the same time as doubling council tax.  A year later, in the midst of the economic crisis, the first paper in the new Council Spending Uncovered series updates the data for the last financial year.

The report, released today, shows that the average local authority spends almost £1 million (£971,985) on publicity. There are 6 local authorities spending more than £5 million on publicity and the 20 councils spending the most money on publicity accumulated an over £100 million bill. However, it’s not all bad news. At least 217 councils have decreased spending on publicity, collectively cutting over £25 million from their budgets and proving that councils can cut unnecessary spending. To read the full report, please click here.
The media coverage is coming in thick and fast, and so far includes:
Liverpool Daily Post, £7.5m bill for council publicity
St Alban’s & Harpenden Review, Council’s PR spend revealed
Boston Standard, Lincolnshire council named in top 10 publicity spenders
TPA spokesmen also appeared on BBC London, BBC Radio Humberside, BBC Radio Essex, ITV Central, ITV North East, BBC Radio Solent, Time FM and Town 102 FM
Gordon Brown responds to the TPA
You may remember TPA Campaign Manager Susie Squire’s ‘Ask the PM’ question, which was included in the bulletin a few weeks ago.
Thanks to all your votes, Gordon has answered – well, sort of. He posted this last night.
Susie is in the process of compiling a video response, but you may have noticed there are a few things he has neglected to mention. Yes, depsite that winning smile Gordon, you can’t get anything past us! Even by official estimates, our current debt stands at £633 billion. But, when you include such off balance-sheet costs as PFI debt created under Brown (£110 billion), the Nuclear Decomissioning bill (£73 billion), Public Sector Pensions (£1,071 billion) and Network Rail (£20 billion) our debt adds up to a whopping £1.9 trillion, or 129% of GDP.
Crucially, Mr Brown doesn’t answer Susie’s question. Ultimately, Britain’s economic picture, as shown by the above figures, is bad enough. But what about going forward? The picture is bleak. Alistair Darling announced in the recent pre Budget report that a gigantic £512 billion will be added to this our nation’s debt. This will amount to more money (taking into account RPI inflation) than we borrowed to win World War 1. This is terrifying, as it will double official debt to £1 trillion, and push up the cost of servicing our debt from £30.8 billion to £40 billion. The longer term implications of this are higher interest rates – markets will decide we are not such a safe economic bet any more, sterling will devalue further, and everyone will feel even worse off than they do now.
But the real question is: why all this borrowing in the first place? Because the other side of this equation is that public spending has gone through the roof under Brown. And if we constantly have to feed this government’s addiction to a big state and a bloated, costly public sector, we won’t ever be able to stop the steam train of debt.
A bittersweet victory for the ‘No’ campaign

It was announced this afternoon that the people of Greater Manchester voted in force against the proposed congestion charge, with the 53.2% (1,030,000) turnout voting overwhelmingly against this additional road tax.

No less than 79% of those who voted wanted to reject the charge, and no more than 28% voted ‘yes’ in one any local authority area. This landslide victory marks the death of the Manchester TIF bid and has hopefully discouraged other areas  -  not least the West Midlands councils -  from further pursuing this unpopular scheme.

Yet, though our congratulations go out to the ‘No’ campaign, it is worth noting that this is a very bittersweet victory with huge amounts already having been spent on a project that was disliked from its inception. Though families in Greater Manchester will no longer have to pay the hefty £1,200 per year that a congestion charge would mean, a startling £34million has already been spent consulting, debating, drawing-up and promoting the TIF bid according to the Drivers’ Alliance, all funded by ordinary taxpayers. It just makes it worse that the very residents who’ve paid for this road pricing ambition seem to have been dead against it from the start, and in the end this £34million bought  218,860 ‘yes’ votes – that’s £155 each.

This money has been frittered away by those with a blind commitment to the congestion charge, encouraged by those who stood to benefit. Perhaps, at this very moment the proponents of road charging are busy wondering how to bring its spectre back to life – with a different guise and new spin – and, if they manage a successful resuscitation, let’s hope our councils recognise it for what it is and remember this Manchester vote.

Letters to follow up our reports

As you will have seen in the papers, on the radio or local TV today, our report on local council publicity spending has hit the headlines. But we need your help to follow up our reports with short, sharp letters to your local paper making the points that councils spend and waste too much of our money. TPA activist Bruce Lawson emailed in a letter he got in the Shropshire Star to promote our Public Sector Rich List 2008. You can read his letter here. If you get any letters printed in your local paper, do let us know. We’ve already seen here the publicity our supporters can get when they write into their local papers.

2009 Action Days

We’re busy compiling a list of leafleting and petition days across the country for 2009. If you’d like us to have an action day in your area with other TPA supporters and campaigners, email our grassroots coordinator Tim Aker and we’ll organise an action day near you.

In response to last week’s bulletin we have action days already booked for 2009. The dates and venues are:
Swanage – 6 February and 30 April
Shipley – 6 June
If you’d like to come to these campaign days, please email Tim
.

Bristol and South West TPA branch established

Last Saturday our Bristol branch met to formally set up a branch to monitor Bristol council and, for the time being, other councils in the South West. If you’d like to get involved please email our organiser James Barlow. You can keep up with the campaign by visiting their blog.

A council is not a bank

We found this week that Lancashire County Council has been using taxpayers’ money to lend to other councils in the UK. Today TPA activist Steve Atkinson found through a Freedom of Information request that Cumbria County Council has £112 million deposited in foreign and domestic banks. You can ask Lancashire County Council’s leader why they’re lending to other councils instead of cutting tax here.

Stoke Council rejects TPA offer to find savings

TPA supporter and Stoke councillor Gavin Webb recently tabled a motion at Stoke Council’s full council meeting inviting the TPA to come in and find savings in the council budget. Sadly, the motion failed – Stoke’s councillors are clearly happy with politics as usual and higher taxes for all. You can read our blog on the debate and Gavin’s comments here.

Best of the blogs

Campaign: Leek TPA Action Day attracts attention
Campaign: The us and them Olympics

Better Government: Fiddling with Human Rights Law

Better Government: Ageing Britain

Burning our Money: Servicing The Government’s Debt

Non-job of the Week: Non-job of the week
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Audit Scotland Auditors to probe Highland Housing Fair payout

Watchdog to assess council input
Press and Journal – Published: 02/04/2008

AUDITORS are to investigate the use of public money to establish the controversial Highland Housing Fair planned for former greenbelt at Balvonie Braes on the south side of Inverness.

The accounting watchdog Audit Scotland has asked the local auditor to assess Highland Council’s contribution to starting up the not-for-profit development company the Highland Housing Alliance (HHA), which is now deemed a private operation despite substantial funding from the public purse to establish an expo at which a fundamentally private housing development will be exhibited.

Prompted by public concern, including that of various Inverness councillors, SNP MSP Dave Thompson wrote to Audit Scotland requesting an investigation into the sale of land by construction giant Tulloch to the HHA.

Audit Scotland has said it is unable to audit the HHA because it is “not within its remit”. But it is able to instigate an audit of the council, which part-funded the project.

Mr Thompson told the Press and Journal: “I support the fair and wish it well, but I am pleased that my concerns over the land transactions have been taken seriously.

“Audit Scotland has contacted the council’s external auditors so that they are aware of our concerns, and they have been asked to establish the background and to assess whether there are any issues arising from the council’s involvement which require further investigation.

“Of course, the auditors will not consider planning-related matters and those issues reportedly under consideration by the Scottish Public Services Ombudsman (SPSO). But I very much look forward to hearing the outcome of their investigations."

A spokeswoman for Audit Scotland said: “An audit of HHA is not within our remit. However, we do audit Highland Council and have an interest in the council’s arrangements for monitoring how its money is used to support other organisations.

“With this in mind, in line with our routine procedures the correspondence has recently been passed to the council’s external auditors and they will seek to establish the background and assess whether there are any issues arising from the council’s involvement which require further investigation.”

She added: “The correspondence that we received refers to planning concerns and to consideration of issues by the SPSO. We have advised Mr Thompson that the auditors will not consider planning related matters and those issues reportedly under consideration by the SPSO.”

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Tulloch Homes Land deal bonanza sparks outrage

TAXPAYERS handed an Inverness building firm a substantial profit when land on the outskirts of the city was sold to the organisers of next year’s Highland Housing Fair.

By Helen Paterson – Inverness Courier -Published: 22 January, 2008

It has emerged that Tulloch Homes purchased around 40 acres of agricultural land at Balvonie Braes for £850,000 and sold it — plus one extra acre — nine months later to the council-funded Highland Housing Alliance (HHA) for £1,350,000.

The developer was registered as the new owner of the land on 16th November 2006, two days after HHA lodged a planning application for the site on the southern edge of Inverness. It was transferred to HHA on 8th August, 2007.

The fair takes place in August 2009 and will showcase the best in housing design, innovation and technology. It has been dogged by controversy and the Scottish Public Service Ombudsman (SPSO) is currently investigating the conduct of Highland Council planning officials after an e-mail obtained by The Inverness Courier suggested they made up their minds about the planning application prior to the start of a public consultation exercise.

Now campaigners are calling for a full investigation.

"The whole affair is a public disgrace with no thought to the affect to the local community and, at the very least, the matter should be the subject of a full public inquiry," said Barrie Haycock, chairman of Planning Watch UK.

"Highland Council has driven a train through their own Local Plan and we have the unacceptable situation that Tulloch Homes has banked £500,000, as a direct consequence of the actions of the various factions involved."

The fair, the first of its kind in the UK, was due to take place in Smithon but the site was judged too small. More than 30 sites were then considered by HHA and developers approached before the site at Balvonie was chosen.

Although the land is designated as "green wedge", there was an indication made by the Reporter at the Inverness Local Plan Public Inquiry in 2004 that this could change in the future.

According to Susan Torrance, the alliance’s chief executive, Tulloch Homes started negotiations with the former land owner Derek Munro more than three years ago.

"I appreciate what it looks like, but it was not a matter of Tulloch making a quick buck," she said. "They had acquired the land and intended to hold onto it as long as it took to get it into the Local Plan. That is why they paid the money they did for it.

"This site was suggested to us by Tulloch very late on."

She said it would have been too risky for HHA to try and buy the land without planning permission, which was a condition of the sale. Developers were also unwilling to sell land zoned for housing, which she claimed would have cost the HHA between £4 million and £6 million.

Planning Watch UK chairman Barrie Haycock at the site of the Highland Housing Fair. Bobby Nelson

The price paid by HHA covers the 40-acre site as well as rights to services and an additional one acre, which will provide access. HHA will also contribute towards a new road linking Milton of Leys with the Inshes area.

"If I hand on heart thought we could have got a better deal for the site, I would have done that," Ms Torrance said. "It was the only option available to us."

A Tulloch spokesman stressed that missives of sale for the land were agreed long before HHA expressed an interest in the site, which the company had viewed as a long-term acquisition.

"Highland Council approached us the following year asking us to sell the site to them and after discussion we agreed to do so to assist them in their initiative," the spokesman explained. "The council simply could not have acquired housing land elsewhere so cheaply. The council received a real bargain and when the fair is complete the value will be several times more than the council paid for it."

But Tory MSP Mary Scanlon, who represents the Highlands and Islands, thinks the profit made by Tulloch Homes was "excessive" given the desperate need for cash elsewhere.

"Given that Highland Council has a debt of over £500 million, the profit within nine months for the housing fair land certainly does seem excessive. The payment for this land will simply add to the current debt, which is a burden on every council tax payer," she said.

The Highland Housing Alliance was set up in 2005 as a not-for-profit organisation to build more affordable and private homes. It is financed by the landbank fund, which is made up of monies from Highland Council and Communities Scotland.

One hundred homes will be built as part of the council-backed project, which will involve a month-long exhibition. It is expected to attract 30,000 visitors.

Timetable of events

14th November 2006: Highland Housing Alliance applies for planning permission for the site at Balvonie Braes.
16th November 2006: Tulloch Homes is registered as the new owner of the land, for which it paid £850,000.
21st November 2006: An e-mail written by Nicola Drummond, a planning department team leader with Highland Council, is sent to Colin MacKenzie, principal planner in the council’s planning and development service, saying the application, although contrary to the Local Plan, would "obviously" be approved.
30th January 2007: Planning permission is granted.
8th August 2007: Highland Housing Alliance is registered as the new owner of the land, having bought it for £1.35 million.

h.paterson@inverness-courier.co.uk

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