Month: November 2014

TORIES ‘INSULT TO STRUGGLING FAMILIES’

Council prioritises opera over vulnerable and homeless


th 223.11.14

Kensington and Chelsea Labour Group Councillors are appalled to learn that the Council is planning to make a one-off payment of £5m to dispose of the loss-making Opera Holland Park. In a ‘face-saving’ deal to get rid of the annual embarrassment of losing up to £1m/year on this expensive 18-year vanity project, a proposal has been concocted for a settlement to help re-form the opera into a charitable trust from 2016.

This £5m (plus a loss of interest of £150,000) is intended ‘to cover losses until 2023’, by which time it is hoped the organisation will be in profit. However, given total backroom costs of £412,000 for staffing, marketing, depreciation, and insurance, it will be an uphill struggle. And there is no discussion in the documents of how much the Council will charge the Opera to use its prime facilities in Holland Park.

These proposals come within the context of yet another year of crushing cuts in services. The disaster of the new contract for Special Educational Needs children’s transport, which put our most vulnerable children at risk, was the result of the ‘difficult decision in the face of austerity’ to save £447,000/year – a sum almost equal to the backroom costs of running the Opera. A further £415,000 is to be sliced off the Play Services budget, making it increasingly difficult for working parents to find affordable after-school and holiday childcare. And £500,000 has already been sliced from Youth Services.

Labour Group Chair Cllr Pat Mason said: ‘Giving £5m to set up an independent opera charity is unacceptable when the Council plans to slash another £13.5m from vital frontline services next year. This includes £3.9m from adult social care, £1.9m from children’s services, and £691,000 from the housing budget, including reducing services to homeless people by £150,000. Spending £5m on opera when many of our residents are deep in debt, using food banks and seeing services cut is truly scandalous.’

Public Realm spokesperson Cllr Robert Thompson said: ‘”Against the background of cuts in council services which affect the most underprivileged in our borough this proposal embodies how the ruling Conservatives prefer culture for the few rather than care for the many.”

Leader of the Labour Group Cllr Emma Dent Coad said: ‘It has never been clearer that the Council is using the language of austerity to justify ideological decisions. The self-professed ‘richest Council in the universe’ can find cash for the opera, but makes ‘tough decisions’ when it comes to vulnerable and struggling residents. Once again Kensington and Chelsea Tories have been caught squeezing the vulnerable to fund indulgence.’

LINK TO DOCUMENT GOING TO PUBLIC REALM COMMITTEE 26.11.14 

Labour Leader on BBC2’s ‘Daily Politics’

As debate about the proposed Mansion Tax continues to gather pace within certain factions in the Labour Party, Kensington and Chelsea Labour Leader Emma Dent Coad was invited to speak on BBC2’s Daily Politics programme today 3 November.

This is what she had to say:

Emma underlined the Kensington Labour Group of Councillors’ unanswered concerns for the possible unintended outcomes of such a tax as currently proposed, saying:

  • The proposed tax has been very poorly communicated, leaving the issue wide open to misunderstandings and scare-mongering. Some older residents have been kept awake thinking that their £2m home of many years will be subject to a charge of £27,000pa; this is nonsense
  • Policy should be moulded from the doorstep, not sent to the doorstep, and policy-makers must listen to residents’ concerns and reassure them that this tax will be targeted at those who can afford it
  • Any new policy must protect long-term and older residents, and also must pick up on overseas property investors who ‘buy to leave’, those who wish to stash or launder their money via K&C property, and who avoid all taxes by buying through foreign-based companies

K&C Labour’s counter-proposals include consideration of the follow:

1, carry out a full revaluation at the earliest possible opportunity.

2, create an extensive new banding formula so that those with very high value properties contribute a fair share to their local community, and those who have less with pay less, ensuring that those who buy through overseas companies cannot escape the tax

3, charge the current permitted level of 150% and lobby for up to 200%  for ‘bubble-wrap’ or buy-to-leave investors dumping their money in a high interest Royal Bank of Kensington and Chelsea

4, provide protection for tenants who, having suffered decanting due to ‘regeneration’, are now forced to pay the highest rate of Council Tax as their new homes are now overvalued.