Thursday 14 April 2016

No Brent councillors sign anti-austerity anti-funding cuts statement

-->
Almost 150 Councillors from across the country have signed a letter slamming the Government for massive funding cuts and and will be joining the tens of thousand of people who will be marching in London for the People’s Assembly ‘Health, Homes, Jobs and Education’ demo on Saturday April 16th.

Although councillors from neighbouring Harrow and Camden have signed thare are none from Brent.
 
The letter followed George Osborne’s ill-fated budget which piled on more misery for millions as the Government laid out plans to cut support for disabled people while offering tax breaks for big business and the wealthy.

With an extra £3.5 billion axed from public spending, Local Authorities are among those that will be bearing the brunt of the failed Tory austerity agenda.

People’s Assembly National Secretary Sam Fairbairn said:

The Tories are increasingly out of touch with the reality of life for most people. Every time they say ‘we all in it together’ it’s another slap round the face of millions of people. The revelations that have unfolded with the ‘Panama Papers’ show the super-rich hiding their wealth in tax havens on an industrial scale. This means they avoid taxes that would pay for all the social benefits that are currently under attack and people are understandably angry. We’re now seeing the potential for big unrest across the country and it wont be long until this government face a movement for change they can’t control.
This is why we believe that the demonstration for ‘Health, Homes, Jobs and Education’ in London on April 16th will be significant as the anti-austerity movement and opposition to Tory cuts grows and thousands take to the streets. We call for Cameron to resign and for the Tories to be booted out of office
The letter reads:

As Councillors we believe this Tory Government’s ideological opposition to public services lies behind the deliberate underfunding of Local Authorities.

Councils have faced unprecedented cuts; Local Authority grants in England have been slashed, with £12.5 billion of cuts and half a million Council workers losing their jobs since 2010. Osborne has forced through 40% cuts to Council budgets meaning that local authorities face the reality of cutting frontline services including Adult Social Care and Children’s Services, leaving those that rely on them at risk.

We believe that austerity is a political choice. We oppose all cuts from Westminster and believe Osborne’s plans for Local Government will only make a bad situation worse.

We call on the government to reverse cuts to council funding so we are able to provide essential services our communities rely on. Furthermore we call for an end to austerity that is seeing living standards for the majority fall. This is why we also support the national march for Health, Homes, Jobs & Education on Saturday 16 April 2016 in London organised by the People’s Assembly.

If you are a councillor and wish to add your name, please go to www.thepeoplesassembly.org.uk



Cllr Aaron Shotton
Flintshire County Council
Labour
Cllr Abi Mills
Lancaster
Green
Cllr Alan Gosling
Rotherham Borough Council
Labour
Cllr Alan McGuckin
Cumbria County Council
Labour
Cllr Alex Phillips
Brighton & Hove City Council
Green
Cllr Alice Grice
Nottinghamshire County Council
Labour
Cllr Amanda Brown
Ashfield District Council
Labour
Cllr Amanda Cartwright
Kidsgrove Town Council
Labour
Cllr Andrew Austin
Louth Town Council
Labour
Cllr Andrew Boswell
Norfolk County Council
Green
Cllr Andrew Cooper
Kirklees Council
Green
Cllr Andy Hannan
Devon County Council
Labour
Cllr Anna Key
Liverpool
Green
Cllr Anna McMullen
Bristol City Council
Green
Cllr Bob Price
Sunderland
Labour
Cllr Brian Grocock
Nottingham city council
Labour
Cllr Brian Steele
Rotherham MBC
Labour
Cllr Bryn Truscott
Reigate & Banstead Borough Council
Green
Cllr Carla Denyer
Bristol City Council
Green
Cllr Carole Jones
Nottingham City
Labour
Cllr Carolyn Thomas
Flintshire County Council
Labour
Cllr Charlie Bolton
Bristol
Green
Cllr Chris Furlong
Rochdale
Labour
Cllr Chris McFarling
Forest of Dean District Council
Green
Cllr Chris Spence
Silverdale Parish Council
Labour
Cllr Chrissie Rumsby
Norfolk County Council
Labour
Cllr Craig Simmons
Oxford City Council
Green
Cllr Dani Glazzard
Bristol City Council
Green
Cllr Daniella Radice
Bristol City Council
green
Cllr David Evans
Flintshire County Council
Labour
Cllr David Gibson
Brighton and Hove City Council
Green
Cllr David Healey
Flintshire
Labour
Cllr David Raby
Norwich City Council
Green
Cllr David Roney
Flintshire County Council
Independent
Cllr David Stockdale
Newcastle City Council
Labour
Cllr Dean Collins
Derbyshire County Council
Labour
Cllr Denise Carlo
City of Norwich
Green
Cllr Denise Elliott
RMBC
Labour
Cllr Dick Page
Brighton & Hove City Council
Green
Cllr Donald Davies
North Somerset
Independent
Cllr Douglas Beattie
London Borough of Camden
Labour
Cllr Dr Tim Jones
Norwich City Council
Green
Cllr Elizabeth Morgan
Norfolk County Council
Green
Cllr Emma Corlett
Norfolk County
Labour
Cllr Gary Johnston
Caerphilly
Labour
Cllr Gavin Lloyd
Coventry
Labour
Cllr Gerri Bird
Cambridge
Labour
Cllr Ginny Klein
Nottingham
Labour
Cllr Gloria Tanner
Swansea City & County
Labour
Cllr Graham Chapman
Nottingham City
Labour
Cllr Gus Hoyt
Bristol City Council
Green
Cllr James “Bert” Bremner
Norfolk County Council
Labour
Cllr James “Bert” Bremner
Norwich City Council
Labour
Cllr James Doyle
Worthing Borough
Green
Cllr Jennifer Rowlands
Luton Borough Council
Labour
Cllr Jim Creamer
Nottinghamshire county Council
Labour
Cllr John Coughlin
London Borough of Lewisham
Green
Cllr John Dickinson
Chesterfield Borough Council
Labour
Cllr John Marjoram
Stroud Distrist
Green
Cllr John Wilkinson
Nottinghamshire County Council
labour
Cllr Jonathan Essex
Redhill East
Green
Cllr Jonathan Perkin
Staffordshire Moorlands District Council
Independant
Cllr Joshua Booth
Warrington
Labour
Cllr Julian Roskams
Malvern Hills District Council
Green
Cllr Julie Brociek-Coulton
Norwich City Council
Labour
Cllr Julie Reid
Manchester City Council
Labour
Cllr Karen Allison
Kirklees
Green
Cllr Kate Lewis
Salford
Labour
Cllr Kathleen Nickson
Rochdale
Labour
Cllr Keith Brown
Chesterfield Borough
Labour
Cllr Kevin Bennett
Warrington Borough Council
TUSC
Cllr Kevin Cranston
Stroud District Council
Green
Cllr Lachlan Morrison
Ashfield District Council
Labour
Cllr Lawrence Brown
Liverpool City Council
green
Cllr Leo Littman
Brighton & Hove City Council
Green
Cllr Lesley Grahame
Norwich
Green
Cllr Lin Martin-Haugh
Stevenage Borough Council
Labour
Cllr Lin Patterson
Bath and North East Somerset
Green
Cllr Lisa-Marie Derbyshire
Chesterfield Borough Council
Labour
Cllr Louise Nixon
Stafford Borough
Labour
Cllr Lucy Howard
Norwich City Council
Green
Cllr Maggie Godfrey
Rotherhan
Labour
Cllr Margaret E Davies
Rhondda Cynon Taff
Labour
Cllr Mark Rivers
Luton
Labour
Cllr Martin Fodor
Bristol
Green
Cllr Martyn Rawlinson
Preston
Labour
Cllr Mary Stirzaker
Fleetwood
Labour
Cllr Matthew Brown
Preston City Council
Labour
Cllr Meric Apak
Camden
Labour
Cllr Michael Haley
Watford Borough
Labour
Cllr Michael Hou
Essex County Council
Green
Cllr Mick Bowman
Newcastle City Council
Labour
Cllr Mick Wall
Chesterfield Borough Council
Labour
Cllr Mike Pringle
Notts county
Labour
Cllr Mike Rowley
Oxford City Council
Labour
Cllr Mohammed Ibrahim
Nottingham city council
Labour
Cllr Naomi Fearon
Fleetwood Town Council
Labour
Cllr Nigel Gawthrope
Cambridge City
Labour
Cllr Noel Kavanagh
Cambridgeshire County Council
Labour
Cllr Norma Wright
City of Sunderland
Labour
Cllr Oliur Rahman
Tower Hamlets Council
Independent
Cllr Oscar Gillespie
Cambridge
Green
Cllr Pamela Fitzpatrick
Harrow
Labour
Cllr Pat Cleary
Wirral
Green
Cllr Patrick Hacon
Norfolk County Council
Labour
Cllr Paul Neale
Norwich City
Green
Cllr Paul Shotton
Flintshire
Labour
Cllr Paul Stewart
Sunderland
Labour
Cllr Pete Lowe
Dudley
Labour
Cllr Peter Innes
Chesterfield Borough Council
Labour
Cllr Peter j Curtis
Flintshire
Labour
Cllr Phélim Mac Cafferty
Brighton and Hove City Council
Green
Cllr Phelim McCafferty
Brunswick & Adelaide
Green
Cllr Phil Rackley
Basildon
Green
Cllr Rachel lancaster
Coventry
Labour
Cllr Richard Alderson Bell
Sunderland City Council
Labour
Cllr Richard Price
Rotherham Metropolitan Borough Council
Labour
Cllr Rishi Madlani
Camden
Labour
Cllr Rob Telford
Bristol City Council
Green
Cllr Rob White
Reading
Green
Cllr Robert Taylor
Rotherham
Labour
Cllr Rose Bulfin
South Normanton Parish Council
Labour
Cllr Ruthi Brandt
Oxford City
green
Cllr Sam Coates
Oxfordshire
Green
Cllr Sam Hollick
Oxford City Council
Green
Cllr Sam Webster
Nottingham city
Labour
Cllr Samantha bellamy
Salford
Labour
Cllr Samuel Gibbons
Keele Parish Council
Green
Cllr Sandra Crawford
Cambridge
Labour
Cllr Sarah Pickup
Newcastle under Lyme borough council
Labour
Cllr Shane Collins
Mendip district council
Green
Cllr Shelly Darwin
Ipswich Borough
Labour
Cllr Sian Berry
London Borough of Camden
Green
Cllr Simon Bull
Bournemouth
Green
Cllr Stephen Clarke
Bristol City Council
Green
Cllr Steve Battlemuch
Nottingham City
Labour
Cllr Susan Murray
Lewes District Council
Green
Cllr Susan Press
Calderdale MBC
Labour







Tuesday 12 April 2016

Bellevue Place Education Trust statement on Mossack Fonseca connection

This statement was posted on the Bellevue Place Education Trust  on Sunday April 10th by Mark Greatrex.  The Wembley Matters blog and Sunday Times article on BPET were published on the same day. LINK

Governance of Bellevue Place Education Trust

In response to the recently published Sunday Times article Bellevue Place Education Trust wishes to be very clear that the Bellevue shareholder who made an investment in Bellevue Education via a company registered by Mossack Fonseca in the British Virgin Islands has no connection with the Trust.

Bellevue Place Education Trust is a not for profit charitable trust set up with the sole intention to establish and maintain high performing schools in and around London.  The Trust was established by two parties, Bellevue Education and Place Group.  The Trust’s governance structure is clear as to the structure and who the members and trustees are.

Below for transparency, is our statement we sent to the Sunday Times.  We have made it very clear that Bellevue Place Education Trust is a not for profit charity that was approved by the Department for Education to manage and maintain state funded free schools.  The Trust is a separate, independent organisation from Bellevue Education that is solely focused on offering high quality education provision to its pupils.  We have some fantastic staff and governors who are supporting the delivery of this vision and we aim to see off these allegations as promptly as possible, enabling us to focus on our core purpose.

Below is the statement we have issued we have also included the Department for Education’s clear statement.

Statement from Bellevue Place Education Trust send to Sunday Times:

“Bellevue Place Education Trust is a multi-academy Trust, sponsoring seven primary Free Schools across London and the South-East. The Trust’s core purpose and responsibility is to establish, maintain and manage state funded Free Schools.  All Bellevue Place Education Trust schools are focused to deliver high quality education provision in areas where there is a shortage of primary school places.”

“Bellevue Place Education Trust is an independent charitable organisation, with six trustees, of which one is Mark Malley.  Trustees delegate responsibility to a Local Governing Body for each school, who appoint all staff (except the Headteacher), set the schools budget and ensure the curriculum meets the needs of the pupils, in line with the vision of the Trust.”

“In applying to be a Free School promoter, the Trust undertook stringent due diligence and was approved by the Department for Education and Charity Commission.”

A DfE spokesperson:

“We demand the highest moral and professional standards from anyone involved in educating our children and, in common with every free school proposal, Bellevue Place Educational Trust (BPET) was subject to detailed scrutiny. We are clear that no-one will be handed control of a school unless we are entirely happy with the result of the checks.

“Bellevue Education and BPET are separate organisations. Our records show the individual named is not in any way involved in the governance of BTEP schools. There are strict rules that prevent free schools and academies being run as for-profit organisations.

“These include due diligence checks, credit checks, and enhanced Disclosure and Barring Service (formerly Criminal Records Bureau) checks and may include police and other checks necessary to ensure the suitability of people to be part of the free school programme.  As part of those checks, we would look at an individual’s association with other people or organisations.”

***********************************************************************************

This is what the Evening Standard wrote about BPET in February 2014 LINK

Both partners clearly have interests in financial returns.

Bellevue Place Education Trust is a partnership between two companies, Bellevue Education, founded in 2003 by former prep school headmaster Mark Malley, and chaired by private equity investor Mawan Naja, and Place Group, a provider of educational advisory services, including “potential income generation” and the identification of “appropriate investment vehicles”, to groups setting up free schools and academies.

***********************************************************************************

These are the most recent accounts of the Belleveue Place Education Trust that I can find: 

 

Monday 11 April 2016

Brent Council has £95.5m in LOBO loans and does not intend to withdraw at present

Michael Pavey, deputy leader of Brent Council and lead member for finance has confirmed that Brent Council has £95.5m in LOBO (Lender Option, Borrower Option) loans which have been the subject of much criticism. LINK

Cllr Pavey says that the loans were taken out prior to 2010 and none since. He states:
The council has no plans to take out further LOBO loans.
If opportunities arise to withdraw from these loans in a financially advantageous way, the council will look at this very seriously. But our current estimate is that the lowest-cost option to Brent residents is to allow the loans to mature in the usual way.

Please be assured that I'm keeping an eye on this. Cllr Filson also took a close interest in this matter when he was chair of scrutiny. Obviously sadly he is no longer here to give his opinions, but I think it's fair to say that he was supportive of our current position - though critical of our predecessors for investing in the first place.
MPs, Council leaders and others have come together to request that the Treasury Select Committee look into the matter LINK:


We are writing in response to coverage of Lender Option, Borrower option (LOBO) loans sold to local authorities and housing associations – exposed by Channel 4 Dispatches and recently covered by the Evening Standard, The Independent and Financial Times (9-12 March), where banks are reported to have made up-front trading profits of £1.5 billion.

We believe it is important to understand how 250 local authorities came to take out at least £15 billion in LOBO loans, containing embedded derivatives. Since the 1989 Hammersmith and Fulham swaps case, the use of derivatives by UK local government has been potentially unlawful.

LOBO loans are described by the Chartered Institute of Public Finance and Accountancy (CIPFA) [April 2015] Bulletin as “inherently risky” products. 

We note that this is the third time in eight years there have been calls for a Financial Conduct Authority (FCA) inquiry into brokers and treasury management advisors (TMAs) to local government, the last occasions being during the 2008/09 Icelandic banking collapse when councils lost £1bn on deposit, and in July 2015 following the Channel 4 Dispatches expose of LOBO loans in “How Councils Blow Your Millions.”

On each occasion, calls for the FSA/ FCA to investigate the conduct of regulated treasury advisory firms it supervises, including Capita and ICAP were ignored, with DCLG accusing the FSA in 2009 of: “deliberate obfuscation [119].”

As councillors, MPs, citizens and civil society organisations, we wish to lend our voice to calls from MPs John Mann and Clive Betts for an inquiry into LOBO loans, and the conflicts of interest between Banks, Brokers, and Advisors who promoted them, by the Treasury Select Committee (TSC) and The FCA, and demand a financial system that operates in the interests of society.

At the heart of this matter is the assertion by regulators, acting under FSMA 2000 that local authorities are “sophisticated” investors, able to transact safely with global investment banks and brokers selling derivatives products, including LOBOs.

A string of municipal swaps and derivatives mis-selling legal cases across Italy, France, Germany, Portugal and Belgium are testament to the fact that local authorities were not in a position to safely use complex products like derivatives, and could not be accurately described as “sophisticated” investors with full understanding of derivatives risks.

Banks pitched highly complex, opaque and risky products such as ‘inverse floaters’ and ‘range LOBOs’ which were inappropriate for the needs of local authorities. In the case of Newham council, this has had a significant adverse financial impact on its position. 

The Communities and Local Government Committee inquiry into local government bank loans heard testimony from Abhishek Sachdev (CEO Vedanta Hedging) and Rob Carver (a former LOBO loan trader with Barclays) that even FTSE 200 Treasurers would be unable to accurately price LOBO loans. 

Unlike professional investors such as hedge funds, local authorities did not understand the inherent risks with LOBO loans, being reliant upon external treasury management advisers (TMAs) – who received undeclared income streams in the form of commissions from brokers when councils borrowed from banks.

Brokers held themselves out as offering best execution services for local authorities and prior to 2009, failed to disclose relationships with treasury advisers and banks.

It should be remembered that local authority finance is entirely unregulated, and that ultimately, it is local taxpayers picking up the tab when councils are mis-sold risky financial products. 

With the closure of the Local Government Audit Commission in 2015, severe cuts to town hall budgets since 2010, and plans outlined in the Devolution for Cities agenda granting additional financial powers to local authorities, it has never been more important to stamp out market abuse along the financial advisory chain to town halls.

CIPFA and the Department for Communities and Local Government (DCLG) both assert that it should be the FCA, not councils, which investigate and regulate the conduct of financial consultants and advisors. to councils.
We call upon the Treasury Select Committee to conduct an inquiry, and to ensure the FCA is given appropriate powers/ forced to investigate and regulate the conduct of treasury management advisors (TMAs) and financial consultants to local government.