Charlotte's blog

What does today’s autumn statement mean for Cornwall?

First, it shows the failure of the Coalition Government’s strategy of cutting further faster – the same strategy which is being pursued by Cornwall Council and that has resulted in many local job and service cuts.  The numbers now suggest that at best the deficit may be halved rather than paid down by 2015, but today’s statement made no real adjustments to provide an effective boost to growth.

Few of the new measures offer hope to those struggling with the rising cost of living, housing shortages, unemployment and transport gaps in Cornwall.

1. Cost of living:

• cancellation of the 3p fuel duty increase from January 2012 will help motorists, but reversing the January 2011 2.5% VAT rise would trim the cost of a much wider range of basic items and services.
• £50 a year off average SW water bills will be welcomed, but this year over-60s households across the UK have already faced a £50 cut from the winter fuel allowance.
• capping public sector pay increases at 1% in 2013-15 will mean that the one in three people who work for the public sector in Cornwall will have seen their pay rise by a maximum of 2% since 2011 by 2015, while facing rising contributions, increased cost of living, and pension cuts.
• pensions, disability and unemployment benefits will rise in line with inflation (the Consumer Price Index) from April 2012, but the decision to freeze tax credits will hit the families of Cornwall’s lowest paid and minimum wage workers, and families relying on child tax credit.
• the 1% cap on rail fares will help those for whom commuting by train is an option – this can already be cheaper than bus fares, and bus services are likely to be reduced in 2012 as a result of Cornwall Council cuts to subsidies and concessionary fares.

2. Affordable housing:

• there are 21,578 households in Cornwall in registered housing need.
• following the recent Government announcement restoring 10% of the previously planned spending on social housing, the Homes and Communities Agency on 22 November 2011 announced it will be funding the completion of 389 affordable homes in Cornwall by 2015.
• current house prices mean right to buy purchases had ceased in practice, the 50% discount announced today will still mean mortgage costs are likely to be more expensive than social housing rents and unaffordable for many; but any sales with a 50% discount would bring in a receipt which would be smaller than the current cost of building a new social home, so not prevent the loss of social housing stock.
• the main source of new social and affordable housing is likely to be through local planning – eg in the former Carrick area the requirement of 35% affordable homes (50% on land sold by public sector like the former Richard Lander School site in Truro).

3. Jobs, earnings and infrastructure

• earnings in Cornwall continue to lag behind the UK at about 80% of the UK average.
• over 9000 people are unemployed in Cornwall – that is 2.7%, compared to 3.8% across the UK – there are also fewer unfilled vacancies in Cornwall than the UK average.
• none of the 500+ transport infrastructure investments announced were in Cornwall, and the focus for next generation broadband appeared to be the largest cities while seeking 90% UK coverage; for Cornwall to prosper we need next generation broadband with rural coverage sooner rather than later. And does the announcement mean the Scillies ferry replacement by 2014, Falmouth docks improvement, Treluswell park and rail ride etc are not amongst the 500+ chosen projects despite the fact that they would bring jobs or help reduce traffic congestion?

4. Young people

• youth unemployment is highest, 6.9% in Cornwall compared to 8% across the UK. The new support scheme won’t start until next summer.
• cuts to the EMA and increased students fees mean young adults face less educational support as well as substantial challenges finding a job and affording a home – and from January 2012, tenants below the age of 35 will not be eligible for housing benefit for self-contained accommodation.

619 voters in the South West were asked which political party they trust most?

One in twelve said the Liberal Democrats.

One in five said Labour.

One in four said the Tories.

The article doesn’t report what the other 46 per cent said.

But the same percentage (46 per cent) said they support deficit reduction. Let me note that bringing down the deficit is a policy supported by all three main Parties.

People were interviewed on October 6-8, before Labour launched its five point plan to boost jobs and growth.

Of course this didn’t stop the article claiming 46 per cent support the Government’s approach, as compared to Labour’s.

One in three voters said they want us to spend more to kick start growth – so there was more support for spending more than for any of the three main Parties. And one in four said they don’t know.

I make that over half the 619 people interviewed don’t definitely support deficit reduction, even though its the policy of all three main Parties.

But why let facts, or what people think, spoil a politically biased news story?

It’s easier to just stick a rosette on the story claiming its from a “trusted source”.

Would somebody like to consider the impact of boundary changes on representative democracy.

When the boundary changes for the 2010 general election were announced, the then Liberal Democrat MP Julia Goldsworthy opted to stand in Camborne Redruth. Rightly or wrongly, some of her constituents in Falmouth and Penryn sensed reduced interest in their concerns.

Very draft, but numerically driven, boundary proposals for the 2015 general election were published in September. The 2010 elected Tory MP, Sarah Newton, swiftly announced that subject to final boundaries and Tory selections, she will not stand again in Falmouth.

So, after just sixteen months, another Falmouth and Penryn MP appears to be on the move.

Falmouth and Penryn are great places to live. Falmouth beaches, the Fal estuary and Carrick roads are unique as well as beautiful.

This year is the 350th anniversary of Falmouth as a charter town, and you have to hand it to the restoration monarchy for recognising the new port’s potential in 1661; its the third deepest natural harbour in the world.

It’s a place where democracy is real. In three out of four of the most recent general elections, the Party in third place at the previous election won: Candy Atherton (Labour) in 1997, Julia Goldsworthy (LD) in 2005, Sarah Newton (Con) in 2010.

You might think, in the twenty first century, with an Environment and Sustainability Research Institute on the local Tremough Campus, the town of Falmouth could have a decent shot at sustainability, economically as well as environmentally.

But the Tories lead the Government. So an aero hub zone at Newquay on the north coast will be the Cornwall Local Economic Partnership (LEP) investment focus.

Apparently, in the new year, Natural England will consult on proposals to create a protected conservation area in Carrick roads which would put paid for ever to the Falmouth docks masterplan which includes dredging a deeper channel to bring larger ships inshore.

Which planet are they from?

Falmouth needs a sustainable economy with new jobs, including in renewable energy.

Last October the National Housing Federation warned that the Government’s housing budget plans amount to a 63% cut.

As well as slashing funding for new homes, the Comprehensive Spending Review reversed Labour’s decision to fund the building of new council housing and to allow local authorities to keep the proceeds of any housing sold under the right to buy – instead, 75% must go to central Government.

The clampdown on mortgage finance and slowdown in the housing market means more people renting.

This month, an independent report confirmed that rents increased by 4.2% during the last year.

Add to this the cut to housing benefit – and, in Cornwall, the Council delays in payment of housing benefit, plus Council cuts of up to 40% in housing support and advice services.

It isn’t surprising that Cornwall’s register of people in housing need has grown by the equivalent of an additional district council list to 19,000 households looking for a home.

Allowing the market free rein in development is not the answer to Cornwall’s housing needs. The practical barriers which make housing unaffordable need to be removed.

Todays unemployment figures confirm more people in Cornwall are out of work than one year ago.

Unemployment is rising and higher than one year ago, with more than another one thousand people in Cornwall now out of work (8163 jobseekers) compared to July 2010 (7080 jobseekers).

Although unemployment in Cornwall (2.5%) remains lower than unemployment across the UK (3.8%).

The biggest concern is the fact that young people (aged 18-24) are twice as likely to be out of work in Cornwall (5.8%) and across the UK (7.5%).

Yesterday on Twitter a flurry of local speculation asked what it meant to say that almost one in four people of working age (aged 16-64) are “economically inactive” across the UK including Cornwall. So here is the official definition “Economically inactive: People who are neither in employment nor unemployed. This group includes, for example, all those who were looking after a home or retired.” Full time parents, other carers, people retiring early, people with disabilities who are not working; the figures include some people who would prefer to be in work, but they also remain relatively stable through changing economic circumstances.

Details are here, and updated monthly.