The Council Tax Subsidy - Electoral Bribe or Cutbacks Silver Bullet?

The government has promised to subsidise council tax bills next year where the local authority freezes their take. On the face of it a good idea?

But wait. Why link the subsidy to a freeze in council tax at the current rate. Well the idea is to keep services at the same level but without an icrease in council tax due to inflation. Fair enough you might think.

Is it really that simple though? You see the problem is that the subsidy is only planned for next year so what happens after that?

If you were paying £1000 in counciul tax now then next year you would pay the same but the government would 'top it up' by £25 so that you were getting £1025 worth of services for your £1000.

In two years time though, in order to keep the same level of service you will have to pay £1050.63 (assuming the 2.5% rise that the government is working on). Now of course in pragmatic terms it is a no-brainer to accept the government subsidy because at least you get £25 back this year.

My problem is this. The government is making out that it is a caring government that wants to do what it can for families in these hard times of austerity. In actual fact it is offering an electoral bribe now, knowing that next year local authorities will be having to make further cutbacks or face sending out massively inflated council tax bills.

I have been having a blogosphere discussion with Alex Folkes the Lib Dem Cornwall Councillor for Launceston Central here about this subject.

It seems to me that the Westminster parties are simply using this idea to score party political points with each other.

Cornwall is rather an exception to the UK where there will be Unitary elections early in 2013. In many parts of the UK these local authority elections have only just been held. This means that Alec Robertson's Tories will be announcing even more cutbacks going into the election or posting out council tax demands much higher than the previous two years - electoral bribe/cutbacks silver bullet.

So we have Tories/Lib Dems in Westminster offering bribes, knowing that in most of the UK their local authorities will have had a year or two to lessen the effect of cutbacks/increased council tax. Whereas in Cornwall the 'pick and mix' Lib Dems (they seem to be able to pick and mix whichever policies they think will get them re-elected, even if it isn't the official policy of their Westminster bosses) are gleefully advocating acceptance of the subsidy, fully aware of why the Tory administration in Lys Kernow is a little more reserved in its enthusiasm for carrying out the orders in from London.

In order to keep to my Golden Rule 1 I would just say that, rather than try to bribe local electors I would use the money to do some real good and tackle child poverty issues - or maybe increase our pblicly owned housing stock. Of course these probably aren't vote grabbing ideas but they would provide more long term and sustainable benefit for the people of Cornwall. If you want to see some other great examples of MK's alternative way of looking at things see Rob Simmons excellent piece here.

OMG - Just stop it now!

It really drives me mad.

A few days ago we had the ConDems pretending to be building 'Affordable Homes' - which of course don't exist.

Now we have Jude Robinson telling us how Labour were so brilliant at building non-existent 'Affordable Homes'.

There is no such thing as Affordable Housing in Cornwall (that ordinary people can actually afford) according to Westminster definitions. It is an indictment of the Westminster unionist parties that they have the gall and cynicism to squabble over which of them is trying to sort out the housing crisis. Give us a proper definition of Affordable - one that relates to what the word means - and then tell us what you have done to address the problem.

MK believe that the only way to sort this problem out is to abandon the Tory policies of the Tories and the Torylite policies of the Lib Dems and Labour, and build houses for public ownership or that are not dependent on developers having to make a big profit to get them built.

The house building market is not building because the market is shot. Developers can't make a profit so they don't build - market forces in action.

Westminster believes in subsidising developers profits to build homes that only MPs and people earning more than them can afford.

MK believes that Cornwall should be offering a fair price for a good quality product where it is required to meet a local need.

The St Piran Play 2012

The St Piran play is one of Cornwall's most iconic St Piran's Day events. It takes place on Gear Sands close to Perranporth on the Sunday closest to St Piran's Day. The audience partake in a pilgrimmage across the dunes to various sites of special relevance to St Piran and watch the legend of St Piran unfold.

This year I volunteered to help the St Piran Trust as they took over the production of the play. I was part of the team which set up the props for the cast to use.

I have volunteered again to help with the same task next year. If anyone is interested in joining me, and gaining a fascinating insight to what goes on behind he scenes of this world famous event, then let me know. You will just need to be able to make an early start at Perranporth on Sunday 4th March 2012.

If you wanted to be even more involved and could spare a few evenings before the play (for rehearsals) you might consider becoming one of the cast - I know the St Piran Trust is planning an even bigger production than last year and are looking for people to take on a role in the play.

More information on the St Piran Trust can be found here.

Two Golden Rules

At the risk of following in Gordon Brown's footsteps I would like to announce that I will be following two Golden Rules in my blogging future.

Both Golden Rules have been inspired by events and people at the MK conference!

Golden Rule 1

Positivity: inspired by Kenneth Gibson MSP.

I will only allow myself to whinge about Westminster politicians and policies if I can put forward a positive alternative.

Golden Rule 2

Relevance: inspired by Matthew Clarke's presentation.

I will only blog about events or items that are relevant to normal, everyday people.

If I have any regular followers out there in the blogosphere, please help me by leaving a comment, or 'Golden Rule Alert' if you think I have broken my Golden Rules.

Mur ras puponen :-)

Why do we want to build new homes?

Why do we want to build more homes?

It sounds like a bit of a daft question really? We need homes to solve the 'housing crisis' is the answer.

But is it?

I recently blogged about the fact that there is no such thing as an affordable house for the average person in Cornwall. So why is the government trying to 'kick-start' the house building market? What is the point in using our taxes to enable developers to build homes that only someone earning the salary of an MP can afford? Building new homes will not solve the housing crisis as long as people can't afford to live in them.

This is the problem with Tory market-driven ideology. We are told that it is important to build new houses in order to provide homes for people - in fact it is simply using our taxes to keep the developers profits going.

How many times do we hear that the free market is the only way to get sutainable growth? If this is true then why does the government want to interfere in that process and keep developers' profits going? It is because houses are to expensive that nobody is buying them - not because there are not enough available. It is the market, which successive governments have allowed and encouraged to get out of control which is the problem. It is no use simply building houses if ordinary people can't buy them - am I completely wrong?

Over the last few days, at our annual conference, MK has spent time in developing a detailed and coherent policy on housing.

We believe that Cornwall needs its own Assembly which can take a different approach. We believe that good quality housing is a fundamental human right and not a privilege for the rich. It is the duty of any responsible government to meet this basic human need - not to boost developers' profits.

What is wrong with building houses for people to live in? What is wrong with building houses that people can afford to rent and to buy if that is their aspiration?

A Cornish Assembly led by MK would not be driven by the need to make a profit or the need to satisfy it's finaciers. One third ofthe cost of a house is profit for the developer. If you eliminate that need then that is an immediate reduction in the cost of a house by 33%.

The buy to let market is functioning 'very nicely thank you' at the moment. Buy to let magnates make a profit by purchasing housing stock and then renting houses to ordinary people. The rent they receive covers the cost of the mortgage and gives the landlord a bonus profit. All the time their capital asset appreciates in value it is being paid for (and then some) by the inflated rent receipt.

If private speculators can make this work, and make large profits, then MK believes that it is possible for the people of Cornwall to build their own houses with a rent that covers the cost of loan without the need for profit. In other words, schemes like this would be self-finacing and would not cost the tax payer anything.

As I stated above, we have a whole raft of policies and proposals for dealing with the housing crisis in Cornwall. Meeting Cornish problems with Cornish solutions - putting Cornwall first.

Mur Ras

I would like to take the opportunity to say a mur ras bras to everyone that pitched in and helped to make sure that the conference ran very smoothly over the two days. I was very much heartened to see everyone work together as a team to create a professional and inspirational event. A particular mention should be made of John Rowe who not only did a lot of work behind the scenes but facilitated the superb presentation from Matthew Clarke. I would also like to thank Pedyr Bennetto whose tireless work on the registration desk and Rhisiart Tal-E-Bot's catering skills meant that I was free to work with Peter Dudley to ensure that the 'big picture' was maintained in focus.

Paul Jenkin put together a great night's entertainment with Hanterhir, Kowethas and An Dysken. Thanks Paul.

I would also like to mention Stuart and Helene Cullimore who were there with the MK stall, raising money for our election campaigns. At least the Shire House Suite was an improvement on the muddy field on a saturday morning that they are used to :-).

Finally - thank you Dick Cole. Thank you for providing inspiration and a vision of a future Cornwall that is fit for purpose for of the people of Cornwall. Thank you for all your tireless efforts throughout the year (not just at conference time) and especially for providing the opportunity for us to listen to Jonathen Edwards and Kenneth Gibson. Our grass roots activists need more of that to encourage them and to show that we are not alone but part of a wider movement that believes that people who live in a place the best people to decide how they should live in that place.

It really was a team effort - a team that I am extremely proud to be a member of.

Let's take this forward and work on the challenge of getting greter electoral representation. A good place to start is with Loveday's campaign in Wendron. Just a few days to go so get in touch with her if you can help in any way.

MK - 'Ahead of the Curve'

The 60th Anniversary Mebyon Kernow annual conference was a statement of positive intent.

MK believe that the best way to take Cornwall forward is to do it for ourselves. We know what the problems that we face and we know the way to build a better Cornwall for all of the people of Cornwall.

The conference agenda recognised the need to engage with groups accross the political and cultural spectrum. This is why we invited and listened to nine different organisations from accross Cornwall, Wales and Scotland. We know that Cornwall can have a great future and we know that the best way to achieve that is by teamwork and by providing a conduit through which organisations, that are devoted to putting Cornwall first, can channel and amplify their hard work.

The political landscape of the United Kingdom has been changing rapidly over the last few years and is accelerating all the time. With a referendum on Scottish independence now a certainty we are entering territory never witnessed before in living memory. Exciting times - and doubly exciting to be told that MK are 'ahead of the curve' by the SNP who have been responsible for much of that change.

One of the conclusions that we have reached, during an action packed two days, is that our plan will include ways to reach a public that has been turned off politics by the Unionist parties in Westminster, all of whom (without exception) either peddle Tory or 'Torylite' ideology. We will present Cornish solutions to Cornish problems and we will celebrate and communicate Cornish success stories.

Part of the flesh on the bones is the comprehensive policy document on housing and development that has been created. This is another statement of intent. Bespoke Cornish solutions to Cornish problems.

And even more flesh will be added soon. With policy reviews on a Cornish Assembly/Recognition, education, Europe and the environment already well under way (and other sbject areas in the pipeline) we will continue to add substance to the intent.