RBS LOBO loans a "fraud on the people"

Newham Cllr John Whitworth labels RBS 'inverse floater' LOBO loans a "fraud on the people" at RBS AGM, demanding further disclosure from the bank.

Newham Councillor John Whitworth who is also the Chair of the Scrutiny Committee at the Council posed a series of questions to RBS Chairman Sir Howard Davies regarding RBS LOBO Loans- which Mr Whitworth likened to a: "fraud on the people" at the RBS AGM in Edinburgh.

Sir Howard Davies said during BBC Question Time that PFI was a fraud on the people because "it is always cheaper for Government to borrow than anybody else." Mr Whitworth proceeded to outline that Newham was having to pay an interest rate of 7.6% on its LOBO loans, borrowed in 2010, when RBS was accessing credit from the Bank of England at just 0.5% interest.

Mr Whitworth noted local authorities were still struggling financially having received the bulk of austerity cuts, caused in no small part by RBS, which was the largest bank in the world when it collapsed in 2008. Yet despite this, RBS was looking to extract the "maximum interest possible" from local authorities struggling with cuts.

Commenting for Debt Resistance UK, campaigner Joel Benjamin said:

"Sir Howard Davies admits that it is always cheaper for Government to borrow than banks, and that PFI and by extension LOBO loans are therefore a fraud. What Mr Davies fails to recognise in an act of cognitive dissonance all to commonplace in the banking profession is the role of his own bank in facilitating those frauds, as one of the largest PFI and LOBO loan lenders to UK public authorities.

Frankly, I would have expected more from the man who once ran the Audit Commission and Chaired the Financial Services Authority"

Newham Council currently pays around 70% of all council tax income on servicing interest on debts including £563million of LOBOs borrowed from RBS and Barclays.

You can read the full transcript of Mr Whitworth's AGM question here and watch the video footage, including RBS's response.

Other major LOBO borrowers including Leeds, Kent, Edinburgh, Manchester, Cornwall, Liverpool and Glasgow  should now take action to ensure hundreds of millions in interest savings for local taxpayers can be delivered.

At least 240 councils across the UK have taken out LOBO loans, totalling £15bn. Auditors are currently considering legal objections from residents in 18 councils, filed under the Audit Commission Act last year, which could result in some LOBO loans being ruled unlawful.

Find out more about LOBO loans and if your council has them on the Debt Resistance UK website. For press inquiries email: press@debtresistance.uk  Phone: 07429637423
 Links to further information:
UK Local Authority Debt Audit website: http://lada.debtresistance.uk/
Interactive map of local authority debt: bit.ly/LADAmap
What is a LOBO loan? http://bit.ly/LOBOLoan
LOBO Loans are potentially illegal http://bit.ly/DebtTrap
The conflicts of interest http://bit.ly/LADA3

Plaistow from the 15th floor

View from 15th floor of Victoria Point E13 Newham London overlooking Plaistow. 

I did a walkabout of the block & was impressed with repairs & caretaking. 

I was meeting residents with Newham Council Officers about a lift renewal in @WestHamBLP Redfern House.

Shame that so few residents turned up for such an important matter (only one lift in the block).

Need to encourage a rebirth of real tenant and leasehold representation in our borough. 

Unsung Hero: The Jack Jones Story - Trailer

‘Unsung Hero – The Jack Jones Story’ is a documentary on one of the greatest British figures of the past century – a man who exercised more power over government economic policy than any other trades union leader in British history.

Jones took on four of the great evils of modern times: poverty, fascism, worker exploitation and pensioner poverty - and took them on with so much conviction that at one point, the public voted him the most powerful man in Britain. 

The life of Jack Jones mirrors the story of the 20th century - a man whose like we may never see again.

John Constables Hay Wain: Then and Now

Off message but pretty perfect walk today in beautiful Essex and Suffolk

Lyn Brown MP: Demanding action on Gaza

Common sense speech by our West Ham MP Lyn Brown, condemns the massacre in Gaza by the IDF (and the the Hamas terrorists who glory in the massacre).

My question is why does the IDF do what Hamas want and create martyrs???

UNISON Housing Associations Branch new website

Many thanks to branch activist Peter Youles for our new website

VIOLENT CRIME: Labour MP Lyn Brown gives a moving speech in parliament

Intelligent and passionate speech by Lyn on the recent violent deaths of 9 young men (and children) in West Ham.

Is it really no coincidence that 65% of Newham children are brought up in poverty while living in one of the richest cities in the world? I think not. 

ACAS: Religion or belief discrimination: ten myths

Myth:  I can’t be accused of discriminating against someone with the same religion as me.

Fact:   If you treat someone unfairly because of their religion it would be discrimination, whether or not you were the same faith.

Myth:  A philosophical belief is simply what I believe in, so my beliefs are protected.

Fact:   What qualifies as a philosophical belief is not always clear cut. There are guidelines, but they are only guidelines. And the final decision whether someone’s beliefs amount to a ‘belief’ in their individual case will rest with an employment tribunal or court.

Myth:  Employees are only really protected against religion discrimination when they are devout in their faith or work in religion.

Fact:   No, they are protected against unfair treatment whether they are devout or not. And, for example, because their friend holds a particular religion or they are thought to follow that religion, even when they don’t.

Myth:  Away from work, I can say what I want regarding my religion or belief on social media – it’s my profile and my page.

Fact:   An employer has a right to ensure an employee’s personal views are not mistaken for its own. It should have a policy on social media including use away from work.

Myth:  As long as a manager is canny in their questioning in the interview, they can still get away with finding out a job applicant’s religion if they want to.

Fact:   Even a question such as ‘Which school did you attend?’ is likely to be seen as discriminatory if fishing for the candidate’s religion and the question is irrelevant.

Myth:  A request for leave for a religious festival takes precedence over a request for a family holiday.

Fact:   No, religious observance does not necessarily override any other good reason for leave.

Myth:  An employer’s dress code must be strictly followed, otherwise there’s no point.

Fact:   A strict dress code would have to be for very good business reasons to satisfy an employment tribunal. Better to take into consideration that some employees may wish to dress in a certain way because of their religion or belief.

Myth:  An employee can refuse to do aspects of their job because of their religion or belief.

Fact:   Not if there are good business reasons why they are part of the job, such as being essential duties, and the employer’s decision is proportionate.

Myth:  An employee doesn’t have to follow a rule like having a photo ID pass, if having their photo taken is against their religion or belief.

Fact:   Employees should understand that their employer has a right to expect certain things to happen for good business reasons, such as having a photo ID pass for security reasons.

Myth:  A colleague can’t in any circumstances lecture me about their religion or belief.

Fact:   They can’t force their views on you when you don’t want to hear them. However, if you bait them you are less likely to be able to claim harassment.

Want to learn more about these areas? Download the free Acas guide

Religion or belief discrimination: key points for the workplace from:

www.acas.org.uk/religionorbelief

PLSA Local Government Pension Conference 2018

Just arrived for the Pensions and Lifetime Savings Association annual conference in Gloucestershire as
Newham London delegate from Investment and Accounts Committee.

Some interesting speakers and seminars ahead.  Local Government minister Rishi Sunak MP, fees, ESG, economy, change, the regulator, cost cap, funding & current affairs.

Will blog as and when

Being a Republican but still enjoying the Newham Royal Wedding Celebrations

Picture collage from two events in Newham yesterday that I attended with Gill on behalf of the Council celebrating the Royal Wedding. While I personally believe that our Head of State should not be a hereditary monarch, I respect the views of the majority in this country, who pretty obviously do.

I must admit to being more than a bit worried in light of the experience "across the pond" of us electing a "President Farage" but still think the democrat principal is absolute.

I have blogged previous on this here. It was great to spend time with local residents at the Community Road Centre and the sheltered tower block in Holden Point (Deputy Mayor Clarlene McLean and her lovely deputy, deputy Esme).