"Newham seeks EFS to stave off section 114 – but says only funding reform will prevent ‘exceptional becoming normal’

 

Important article in Room151 blog not only for Newham but also for many, many other Councils facing section 114 notices (a form of municipal insolvency and/or technical bankruptcy).My understanding is EFS is not an increase in Government funding but an expensive loan being paid for by selling off of Council assets.    

"Exceptional Financial Support risks becoming normalised across the local government sector and is only a “sticking plaster solution” to councils’ financial problems anyway, according to Conrad Hall, corporate director of resources at the London Borough of Newham.

The authority’s Cabinet will discuss Newham’s financial position today (15 October) – with a £175m budget gap forecasted over the next three years – and will be asked to continue discussions with the Ministry of Housing, Communities and Local Government (MHCLG) on receiving Exceptional Financial Support (EFS) in financial year 2025/26.

Temporary accommodation costs account for £100m of that £175m budget gap, with Hall stating that the “housing crisis and the consequence of the failure of the housing market” has fallen “very disproportionately” on authorities. Some, like Newham, are being put in a “completely impossible” position.

“There’s something wrong with a funding system that allows that degree of, frankly, randomness between two different councils,” he told Room151.

Conrad Hall

EFS would provide temporary financial relief for Newham but only “kicks the can down the road”, according to Hall. He also fears that with so many other authorities across the country in an unstable financial position, EFS could “stop being exceptional and start to look a bit normal”.

Newham anticipates an overspend for the current 2024/25 financial year in the region of £47m, of which a £31m overspend is forecast on temporary accommodation and £16m on social care provision.

The authority has identified savings – including asset sales – for 2025/26 that have an annual value of £20.3m, growing to £51.2m for 2027/28, and the Cabinet will be asked to approve these immediately. Further savings options have also been listed for consideration that amount to £13.5m in 2025/26, growing to £20.9m for 2027/28.

Hall described the savings as a “substantial package of pretty unpleasant cuts”.

If the MHCLG does not provide EFS, Hall said that a section 114 notice becomes a “very serious consideration” and might be needed in around 18 months in that scenario. However, it is an effectively “pointless” action when the issue is not underlying financial mismanagement but instead external factors beyond the authority’s control.

“Issuing [a section 114 notice] is foremost to say that we haven’t got the money. It doesn’t really help because we still have the same duty to house people in temporary accommodation, and that is the cause of the financial problem,” he said. “So while it is a dramatic moment, it doesn’t actually change the dial much. We’re trying to get [government] to change policy so that you don’t have local authorities just collectively all going under. The current situation is just unsustainable.”

Hall noted that Newham has had initial conversations with the MHCLG, but has heard nothing since. This situation, though, “is not unexpected, because I think they will be waiting until after [the Budget] of 30 October”. If the government operates to the same timetable as the last financial year, a final decision might be expected around February.

Consequently, Newham has so far not specified an amount of EFS it is seeking, as much will depend on what the government does with the homelessness funding system, Hall said. “It’s so dramatically broken in London and beyond that it’s hard to imagine that they’re not going to do anything,” he added.

Action on Local Housing Allowance (LHA) rates, for example, could be “taken overnight”, which would reduce the cost burden on individual councils and transfer it “at no overall cost to the public purse”, Hall noted.

Ultimately, Hall said that funding reform was needed, which goes beyond just multi-year settlements, to solve the underlying issues that are forcing more councils to seek EFS and potentially issue section 114 notices.

Photo: Shutterstock

“EFS can be done for, say, a year while [the government] fixes the overall funding system and sorts out housing and things like that. But it’s not something that will work for any period of time,” he said.

“It must be accompanied by funding reform. The difficult thing for the government to do is to find some money to fix the problem, because if they don’t it’ll just get worse and worse. And if housing isn’t fixed, other things also get worse, and you need more expensive interventions elsewhere. It is an extraordinary crisis, and the government just doesn’t seem, so far, to have reached a clear and funded policy about how they’re going to deal with it.”

Hall said that while the government would surely “like to help” they may have boxed themselves in in terms of verbal commitments to action in other areas. “What about education? What about universities? The criminal justice system? And the list goes on,” he said. “They are probably thinking, ‘we can’t afford to fix all those things’, and local government usually ends up pretty far down the public sector pecking order....

See link for further report on Newham rents and HRA plans...

Save the date and help save Newham Voices!

 

Disciplinary or grievance hearing? It's dangerous to go Solo...

 

100% agree. I would also add sickness meetings, redundancy, restructures, changes to terms and conditions, office moves...

Hat tip Notts UNISON branch

"Bill will make game-changing improvements to working life, says UNISON"

 

This is special. A very welcome day. Good news for workers and responsible employers. Still lots to do. 

Fair pay agreement in social care will be an historic step

Commenting on the publication of the employment rights bill today (Thursday), UNISON general secretary Christina McAnea said:

“At last the lives of millions of employees across the UK look set to change for the better. The bill lays the groundwork for a brighter future for everyone at work.

“There’ll be improved protection from the first day in a job and more family-friendly roles. Bad bosses won’t be able to exploit at whim using dodgy ‘fire and rehire’ tactics, and it’ll be easier for unions to offer support to all employees.

“The means to create a fair pay agreement to increase wages for care workers in England is game-changing. It’s an historic first step towards transforming a sector that’s been neglected and ignored for far too long. The result will make a world of difference to people who need care and to their families too.

“The two-tier workforce will be no more, with penny-pinching employers no longer able to treat outsourced workers less favourably than everyone else.

“A new body to negotiate pay for school support staff will bring a much-needed boost for the low-paid, mostly female workforce and attract recruits into currently hard-to-fill roles.

“The bill marks a sea-change in industrial relations after years of worsening workers’ rights and unnecessary hostility towards unions. It’ll stop employees being penalised for going on strike* and bring union ballots into the digital age.

“All this can only help the economy thrive and improve services to the public. Good employers have absolutely nothing to fear, but the bad ones won’t like it one bit.

“This is a complex programme of legislation, and the details will need to be fine-tuned. There’s still much work to do. But the government has stuck to its pledge to overhaul working life, a huge achievement in less than100 days.”

Chiltern Way: Hemel Hempstead to Chorleywood West

 

Off message. Due to Conference season I have not been posting on any walks lately but this is from last month when Gill and I started on the long distance linear walk, The Chilterns Way. We are planning to do this in stages (as well as other walks such as London Ring) and hope to only use public transport to get there and back. 

We used the guides provided by the Chiltern Society and their latest book on the walk as well as the Ordinance Survey app on my phone (subscription). We did about 10 miles in beautiful rolling countryside. Only 167 odd miles to go. Nothing too strenuous. Mostly very quiet with hardly any other walkers. 

We took train to Hemel, had breakfast at the Harvester outside the station and cut short route at the end to go back via Metropolitan Line from Chorleywood. 

Will post pictures on Facebook here. 

"It’s time to “stop the witch-hunt” against flexible working, says coalition of unions and equality campaigners"

 Unions and equality campaigners have today (Monday) condemned escalating attacks on flexible working.

A joint statement released today – signed by organisations and campaigners including the TUC, Age UK, the Fawcett Society, Anna Whitehouse (founder of Flex Appeal) and Pregnant Then Screwed – warns of a “witch-hunt” against workers being able to work more flexibly.

The intervention comes as the government prepares to publish its Employment Rights Bill which is expected to enhance existing rights to flexible working.

Highlighting the ongoing briefing against flexible working, the organisations say:

“It’s time to stop the witch-hunt against flexible working. In recent weeks, we have seen relentless scaremongering about how new legislation on flexible working will harm UK businesses and productivity.    

“These warnings couldn’t be further from the truth.”

Pointing to the recruitment and retention problems facing employers the organisations say:

“There are 800,000 fewer people in the workforce than before the pandemic, and one of the biggest issues facing employers is recruiting and retaining skilled staff.    

“Look at our public services. In the midst of a staffing crisis, health, education and social care workers are leaving due to a lack of flexibility.    

“This is not an isolated example. Research published by the Charter Institute of Professional Development last year found that an estimated four million people have changed careers due to a lack of flexibility at work.  

“Flexible working can bring more people back into the labour market and keep them there.”  

Criticising the bad faith nature of the attacks on flexible working, the organisations say:

“Some have tried to claim flexible working is just about working from home.  

“But there are there are many different forms of flexible working.    

“For some people it means stable and predictable shift patterns so they can do the school run. For others it means compressed hours to allow for an extra day at home to care for loved ones.  And for some it’s a job share to allow time for study alongside work.    

“This is about developing patterns of work needed for a modern economy and a modern workforce.  

“Flexible working is good for workers, good for employers and good for growth.”  

Commenting on the joint statement, TUC General Secretary Paul Nowak said: “Flexible working – and in particular working from home – is being misrepresented to attack the government’s wider plan to Make Work Pay. It’s time we called it out.  

“Improving access to flexible working will benefit workers and businesses, whether it's through increasing staff productivity or higher retention. And the same is true of improving workers’ rights across the piece.

“When people feel secure and respected at work, they have happier, healthier lives and perform better in their jobs.”

Jemima Olchawski, Fawcett Society Chief Executive, said: “We have to ask who benefits from parroting the fallacy that flexible working and flexible workers are bad for business – it's just nonsense.

“What really holds growth back is rigid, outdated work practices that exclude women, older workers, and those managing health conditions.

“Offering flexible working options increases the talent pool and enables more people to work.

“While that may threaten those who are happy to maintain the status quo, it can only be good for our economy. We need to see all jobs advertised as flexible by default.”

Victoria Benson, Chief Executive of Gingerbread, said: “Too many single parents are locked out of the workforce or stuck in jobs beneath their skill level because of old fashioned, inflexible working patterns.

“Employers who don’t offer flexible working are missing out on an untapped pool of talent and single parents are missing out on jobs.

“We need to see single parents supported to thrive at work – not just because it’s good for them and their children but because it's good for employers and our economy, too." 

Hat tip It’s time to “stop the witch-hunt” against flexible working, says coalition of unions and equality campaigners | TUC

TUC Webinar: Mental health is a workplace issue

Mental health is a workplace issue Thursday 10 October 2024 |14:00-15:00

 

    

 

Join us on World Mental Health Day, 10 October, where we will discuss mental health as a workplace issue. We will be joined by reps from CWU (Communications Workers Union), POA (Prison Officers Association), and the Shop workers' union (USDAW) who will share some of the latest campaign work around mental health workplace initiatives, policies and practices they have negotiated with employers in their workplaces. Come along and hear valuable tips and good practice methods that are making an impact on the wellbeing of workers.

 

REGISTER FOR THE WEBINAR

 

Attendees of the live webinar will receive a TUC digital credential to demonstrate what they have learned. Find out more about digital credentials. Live captions will be available during this webinar.

Labour Party Conference 2024: Wednesday

 

On the last day of conference, I decided to get up and go home early in order to catch up with work. Since the weather was nice, I walked to the station to explore a little, this part of Liverpool. I came across a sadly ruined church (top right of collage) and was surprised to find out it once the highest building in Liverpool and was built by its Welsh community. It was known as the "Welsh Cathedral" or the "Toxteth Cathedral". Some 120,000 Welsh people migrated to Liverpool between 1851 and 1911. I can remember as a very young boy, visiting relatives in nearby Birkenhead who still spoke Welsh at home. 

On the train home I managed to get a seat with a table and the passengers opposite me had also been at the conference and worked in "media". They were openly discussing what they thought about the conference. One said to the other that they thought that Labour was rather "smug" at conference and that it had been pretty boring. Many of the new MPs had clearly not expected to win and at fringes were like "rabbits caught in headlights". Which I thought was rather unfair but could be worse. 

While I did not think it was that boring, I did recognise the "smugness" characterisation. But it has been a long 14 years since we were last in power. It was admittedly far more exciting previous years when the Tories seemed to be doing everything possible to bring about their defeat (Think "Truss and Lettice"). 

The row's over child benefit, winter fuel allowances, Gaza and "freebees" has certainly been very difficult but I still believe that the worse day of any Labour Government is far, far better than the best day of any Tory Government. 

London Party Conference 2024: Tuesday

 

Weather was much better so went for another run around the boundary of the magnificent Sefton Park (opposite way from Sunday). Other than that I had a lazy start trying to decide which fringes to go to. Lots of the social housing fringes have been full so I need to get there earlier. 

My first fringe was by Labour Housing Group "The Road to Building 1.5 Homes". The Chair was Cllr John Cotton, Labour Leader for Birmingham Council for first half then he had to leave, so Cllr Heather Johnson from Camden took over. I am a member of the LHG and volunteered to be "microphone" aide to the Chair.  This meeting was also packed with many people standing or sitting on the floor. Speakers from National Housing Federation, EDAROTH, Planning Federation and Community Union. 

All were pretty positive that the new Government could achieve its housing targets but it will not be easy. However, the issue of providing subsidy for social rented homes (or first time buyers) was not directly addressed. While I am sure that setting long term social landlord rent levels, enabling planning reforms etc will result in far more homes being built - how many will be genuinely affordable? 

Other fringes I wanted to go into were also full so I was able to go early and get to see the Leaders' speech via video in one of the large theatres. It was packed and I was lucky to get a seat. There was little or no chance of getting into the conference hall. 

I thought Keir Starmer' speech was impressive and liked the mix of seriousness and humour. I did miss the reference to "sausages", possibly to some very excited delegates around me, who were clapping loudly, standing up and cheering the video. Must be an age thing. While I think many of us watching wished that he could have fulfilled, the very long, long list of things that we want a Labour Government to address immediately. Most know that is impossible. Judge this Government on what it will do in the next 4 years and not its first few months. 

Next was "Investing in our future: How can Labour build a brighter, more financial  resilient future for UK Savers" (New Statesman and massive fund manager Blackrock). Good to listen to new MP Kanishka Narayan, who has a investment background and knows what he is talking about but who also proudly announced he was a UNISON member. Not sure of the Blackrock argument that Pensions need to be combined with a short term emergency savings offer? Too many people in my experience don't have enough in their pensions and often try to cash them in too early but I understand the goal. 25% of UK residents have no savings. 

After this I went to the well organised launch of Obsidan Labour which has been set up by my UNISON colleague, Cllr Joseph Ogundemurem and new MP Bayo Alaba. 

UNISON reception this year was in the Beatles Story and it was good to chat up with delegates and guests, including my first catch up in her new role as Deputy Prime Minister, Angela Rayner MP! 

Afterwards, was a quick drink at the second Newham "get together" then back to hotel. 

A West Ham Labour doorstep

 

Picture collage of today's doorstep with my West Ham ward Councillor colleague John Whitworth and our super local activist, Varghese. It did not start well since the Labour Party canvass software (contact creator) was not working and we could not download information on who to call at. 

So we did an old fashioned doorstep and knocked on every door in the area. After a rather large number of elections this year it was pleasant, not to be just identifying supporters and asking for votes, but speaking to residents about any problems or issues they may have with the Council, life or the new Labour Government  (as it turned out). 

At one home I picked up a housing repair chase by a Council tenant, who was also trying to console her 2 young, very upset, grandchildren, whose goldfish had just died.  The children asked me if I was able to help their goldfish but I had so say to them that I could not but I was sure they had given the fish a wonderful life.

I later had a lovely time with a very friendly English short hair house cat (see collage). 

I had complaints about the Newham Council telephone contact centre, not answering up calls in a timely manner and I will be raising this issue with management. Other complaints about fly tipping, weeds in communal areas and unkept gardens.  

I did also get some ear bashing about the ending of winter fuel grants for all pensioners, including two residents who were about to lose the benefit. But they were not hostile and understood what a dreadful financial hole the new government was in. One of them was a UNISON member in schools and we had a chat about the forthcoming strike ballot on pay (if your union says vote to reject the pay offer - so vote to reject and in favour of action)

At the end of the canvass, I called on another pensioner, who described himself as "a retired trade union Labour man", who was a very strong supporter of the Prime Minister, Keir Starmer, and gave a very detailed account of why the Tory mismanagement of our economy in the past had made very difficult decisions inevitable. 

It was good to see the Newham council new build project opposite the estate. 

I will be contacting Dominos Pizza about their canvassers just throwing leaflets on the floor of blocks. We saw this in 3 different housing blocks and I will be asking Council officers if we can prosecute this shameful litter bug.