Archives for posts with tag: Wales

A Bournville reader has drawn attention to the research findings revealed in a BBC programme.

The BBC’s Shared Data Unit, used freedom of information requests and Land Registry data to obtain information on 92,000 Right to Buy sales across England, Scotland and Wales recording an average of £69,000 each from the scheme since 2000, according to the Times. The biggest profits were in London, with buyers in Islington making almost £100,000 each on average.

From the data gathered, it was calculated that 140 tenants bought and resold their council homes within a month, generating a collective profit of £3 million or £21,000 each.

In one case, a former council tenant in Solihull purchased his/her council home for £8,000 and sold it for £285,000 nine days later. Did s/he and others pay back some or all of the discount they received – as those who sell within five years of purchasing are required to?

State of play until 2013: source, Ampp3d, a data-journalism website for Trinity Mirror 

In January 2017, Right to Buy was halted in Wales, as it was in Scotland in 2016 after 37 years.

The devolved administrations argued that its cost to the social housing supply has been too great. Despite central government pledges to replace homes sold through Right to Buy, most receipts have been returned to the Treasury rather than reinvested in affordable housing.

The Financial Times noted that some 40% of right-to-buy homes pass into the private rented sector, where they may continue to absorb government funds through housing benefit.

The Chartered Institute of Housing once again repeated its call for Right to Buy to be suspended in England.

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Our reader commented that George Cadbury encountered similar profiteering in the early days of Bournville and set up the Bournville Village Trust to administer the project. See Bournville, Model Village to Garden Suburb, Harrison pp 44 Publisher Phillimore, ISBN 1 86077 117 3.

Extract from Management and Organisational Behaviour by Laurie J. Mullins 

 

 

 

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The West Midlands New Economics blog draws attention to a message from Nancy Platts, a Labour Party councillor, who has worked for London Fire Brigade, Daycare Trust and Consumer Focus. 

She points out that under the proposed new boundaries, the problem of ‘electoral bias’ means the Conservatives will only need a lead of 1.6% per cent to win a majority (less than they won by in 2017) – while Labour will need a lead of more than 8%.

One of the main reasons for this is a total lack of proportionality: under first-past-the-post, seats do not match votes – it is where those votes are cast that really matters. Huge Labour majorities do not equal more representation: instead, millions of votes are thrown on the electoral scrapheap. ‘Losing big and winning small’ is rewarded.

Westminster’s voting system splits the left vote, but projections by the Electoral Reform Society show Labour would now be Westminster’s largest party under the preferential STV system (used for local elections in Scotland).

A new report on the benefits of the case for fair votes makes clear that the experience of councils in Scotland as well as governments across Europe shows that proportional voting systems – where every vote counts – help to foster ‘consensual’ politics, where unions and civil society are included as key players.

Democracies with more consensual structures are more progressive, with larger welfare states and lower rates of prison incarceration and lower economic equality.

EU countries which have proportional representation have embedded trade union rights, high union density and extensive collective bargaining coverage use proportional electoral systems.

Nancy ends “There is increasing momentum for change both in unions and the Labour Party. It’s time to replace Westminster’s broken set-up and extend the progressive voting systems we see in Scotland, Wales and Northern Ireland into Westminster.

“When every vote counts – with seats matching how people really vote – parties don’t just pander to wealthier swing seats and a handful of influential voters. They have to win support across the board”.

 

 

oThe stock of secure and affordable housing for people who are unable to buy or rent a home of their own has been progressively reduced by the Right to Buy legislation, passed in the Housing Act 1980. This transferred assets created and owned by local government to individuals at prices below their market value or replacement cost.

The Local Government Association reports that the average discount increased by 132% to more than £60,000 in 2016/17 – selling properties at almost half price.

Councils are warning that this has led to a quadrupling in the number of RTB sales, which they have been unable to replace.

The current Right-to-Buy system only allows councils to keep a third of each RTB receipt to build a replacement home and prevents local authorities from borrowing to make up the shortfall.

These points were forcefully made by Stroud MP David Drew in December’s debate (video link) in the House of Commons. As he ended:

At the moment 70% of money raised for every unit of council owned accommodation sold under the right to buy goes back to central government:

  • We’ve bought the stock
  • We’re trying to do our bit
  • But we’re faced by a borrowing cap
  • How is that fair?

The Labour Party has pledged to scrap the scheme and Vince Cable, the leader of the Liberal Democrats, has called for a halt to the government’s right-to-buy policy, describing it as the key reason for the “catastrophic shortage of homes” in England.

Scotland and Wales lead the way:

The Scottish Government abolished Right to Buy as a part of the Housing (Scotland) Act from 1 August 2016.

A law to abolish Right to Buy in Wales was passed by the Welsh Assembly in December 2017 and has now come into force.

The stock of social housing in Wales and Scotland will now be protected from further reduction and will provide secure and affordable housing for people who are unable to buy or rent a home of their own.

 

 

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