Conservatives in chaos over food bank stance

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Credit where it’s due: The vast majority of reasons for people being referred to food banks are attributable to the Department for Work and Pensions. Could that be why the DWP is so desperate to silence the food bank charities?

Tories – what are they like?

The answer is, of course, even they don’t know – as evidenced by their current confusion over food banks.

David Cameron has enthusiastically backed their work at a Christian faith group’s Easter reception (and so he should, having sent so much of it their way), and Treasury minister David Gauke also praised them in an interview on Channel 4 News last week.

But the DWP says leading food bank provider the Trussell Trust is guilty of “misleading and emotionally manipulative publicity seeking”, with the rise in food bank use being the result of the charity’s leaders “aggressively marketing their services” and “effectively running a business”.

At least one commenter on this blog has been completely taken in by the DWP’s prattling, claiming that demand for food banks has not risen at all since Cameron came to office. No, it’s clear to this demented individual that opening a food bank anywhere is like opening a supermarket – if there isn’t one nearby already, people will flock through your doors.

This, of course, completely misconstrues the way food banks are used and assumes that anyone can walk through their doors, claim food poverty and take away a packet of supplies whenever they want. It doesn’t work like that.

Food banks operate on a referral system. As Trussell Trust chairman Chris Mould put it in an Observer report: “You can’t get free food from the Trussell Trust by walking through the door and asking for it; you must have a voucher. More than 24,000 professionals – half of whom work in the public sector and health service, the police, and in social services – ask us to give this food to clients of theirs because they’ve made the decision that this individual or family is in dire straits and needs help. We’re not drumming up demand.”

This is absolutely correct and no amount of negative campaigning by the DWP can change it. In fact, Mr Gauke spent some time crowing about the fact the DWP rules have been altered to allow “signposting” to food banks by Job Centre advisors, in his Channel 4 News interview (although claiming credit for government employees sending people to someone else, rather than providing help themselves, is in itself a mean-spirited shot in the foot).

Once again, the Conservatives are getting stuck in the mire while trying to claim the moral high ground.

Not only have they created a poverty-driven starvation threat that organisations like the Trussell Trust have been forced to step in and fight, but the Tories have also tried to vilify those good people for laying the blame where it belongs.

It is a situation so twisted, there can be no wonder the Tories are tying themselves in knots.

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Gove is desperate to avoid fallout over free schools

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Underqualified: This Labour Party campaign meme highlights the drawbacks of Michael Gove’s foolish and expensive ‘free school’ experiment.

The country has been concentrating on government sleaze for the past week or so – and this is a mistake. We should also monitor government incompetence and thankfully Michael Gove is around to provide plenty of it.

He wants organisations that are part of his struggling ‘free schools’ pet project to receive special fast-track attention – to avoid the political embarrassment that would be caused by their failure.

Last year the project was rocked by the failure of the Al-Madinah Free School in Derby, and the resignations of unqualified head teachers at Pimlico Free School in London and Discovery School in Crawley. Vox Political discussed all three at the time.

The Discovery School was one of four that were declared inadequate by Ofsted and closed down at the end of March.

Last week, The Observer revealed that Gove wants to hush up any further damaging revelations by ensuring that problems are tackled before Ofsted can publicise them.

The article stated: “It suggests that party political considerations are now driving education policy a year ahead of the general election.”

Quite. It is also a sharp reminder of how far the Coalition government has deviated from its original claim, to be uniting “in the public interest”.

The plan adds extra pressure to the Education department, where morale has already plummetted due to Gove’s determination to employ his own advisors, to overrule the expert advice provided by civil servants in favour of ideologically-motivated dogma.

It also shows that Gove is giving preferential treatment to his pet project. State schools go into special measures after receiving a ruling from Ofsted that they are inadequate – and can remain there for more than a year.

More damaging still is the fact that many of the problems with free schools have nothing to do with education, but are organisational in origin. According to the article, these include: “Operating in temporary sites without a clear permanent home; new, inexperienced and often isolated trusts needing to upskill themselves to run a school for the first time; instability in principal appointments and senior leadership teams.”

So when you hear that your child’s school has been under-performing because it has been deprived of resources and support from the Department for Education, just remember that this has happened because we have an Education Secretary who is more concerned with hiding his own inadequacies – problems that could have been avoided if he had concentrated a little more on the details.

On the basis of this term work, Mr Gove, we’ll have to give you an ‘F’ – for ‘Fail’.

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Osborne-created tax loophole diddles the UK out of hundreds of millions

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A tax avoidance loophole specially created by George Osborne, the UK Chancellor, last year means that water companies have played the system to reduce their tax bills to a trickle.

Some people just don’t know when it’s time to do the right thing.

Look at the three water companies that are paying practically no tax on their huge profits, while yanking up prices every year according to the retail price index and enjoying a monopoly in their areas – according to today’s report in The Observer.

Thames Water avoids tax by offsetting the interest payments on its debts against its tax liability and delaying it by claiming allowances on capital project spending. The company is seeking government support for a £4.1bn project to build a new “super sewer” under the Thames.

Anglian lent £1,609.1m to a subsidiary company in the Cayman Islands tax haven in 2002. This year it was able to pay £478.1m in equity dividends to investors, including its subsidiary in the tax haven.

Yorkshire Water also increased the debt on its books recently, which offsets tax payments.

In other words, all three were able to exploit a new tax loophole, created by George Osborne last year – that’s right, the Chancellor who is supposedly trying to stop tax avoidance has actually been creating more ways for big business to achieve it – to pay as little tax as possible.

In my article last Monday, I highlighted changes to the tax laws, brought in by Gideon, I mean Mr 0, that mean companies in the UK pay nothing at all on money made by their foreign branches and may claim the expense of funding those foreign branches against tax paid in the UK. That is exactly what Anglian and Yorkshire are doing, according to the Observer report.

Without knowing where the Thames debt is based, it’s hard to say for certain whether it falls into this category of tax avoidance.

Thames made an operating profit of £650 million last year, and Anglia’s was £492, while Yorkshire’s was £303 million. With Corporation Tax at 26 per cent (they should all pay the higher rate), this means the Treasury failed to collect nearly £376 million from the three companies.

The amount lost to the Treasury from these three companies alone would pay off three-quarters of what the government hopes to take away from people currently on council tax benefit, when local authorities implement their new council tax relief schemes – the ‘Pickles Poll Tax’ – in accordance with Eric Pickles’ Localism Act, next April.

Both Thames and Anglian told The Observer their tax was merely being deferred, and they would have to pay it in full at a later date. Yorkshire declined to comment.

My problem with this is that the UK is in deficit difficulties NOW. We need everybody’s tax money NOW. Not later. By exploiting a loophole in the tax system that the Chancellor irresponsibly created, they – AND HE – are extending the problem.

The absence of any significant tax bills means Thames and Anglian were able to pay out dividends totalling £1.5881 billion. I don’t have the figures for Yorkshire. Ask yourself how many of those shareholders have tax avoidance schemes of their own.

Meanwhile, those of us on PAYE have to pay the full amounts of our tax bills – and our utility bills – no matter what harm they do to our household finances. There can be no deferrals for the working-class citizen!

And what help do our bloated water companies give us?

A drop in the ocean.

Cameron and Brooks – the more we know, the less we like it

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What have they got to hide, and can it be any worse than what we’re all thinking?

There’s a bad smell surrounding the correspondence between David Cameron and Rebekah Brooks, and it has nothing to do with the horse she let him ride.

The Observer is today reporting details of “intimate” texts sent between the current UK Prime Minister and the former head of Rupert Murdoch’s News International. One of them, from Brooks, states that she felt so emotional listening to his (2009) conference speech she “cried twice”, and that she “will love ‘working together’.”

Working together?

In what way, exactly?

There are too many loose ends here for anyone to feel comfortable. Everywhere you turn, one of them whips you in the face (like a riding crop, perhaps).

Let’s bear in mind all the embarrassment fomer Culture Secretary Jeremy Hunt (Con) had over the plans for Mr Murdoch’s firm to take over Sky TV, granting it an unprecedented dominance over the UK mass media. Working together?

Let’s remember that Andy Coulson, a former News International employee and editor of the News of the World, became Mr Cameron’s Downing Street press officer for a time, until he was implicated in the phone hacking scandal and stood down. Working together?

Let’s also consider the way the right-wing press – of which News International and Sky News form an uncomfortably large cohort – has suppressed stories about the harmful effects of Mr Cameron’s policies, such as the deaths of 73 sick or disabled people every week (on average) who had their benefits cut after reassessment by the Department for Work and Pensions and its contractor, Atos. Working together?

Cameron has refused to allow publication of any more of these texts – and it is understood that around 150 may exist. The Observer states that it understands many of them would prove to be “a considerable embarrassment” to the government.

We don’t know what is in those texts, and we are being told that we never will. The only possible conclusion is that they contain information that is damaging to Mr Cameron, and therefore to his Conservative-led government. Because of the identities of the correspondents, we can also conclude only that this damage relates to them working together.

It’s obvious he’s got something to hide.

He’s not going to come clean about it either.

So he’s being dishonest to us, the British public.

It is not in our interest for him to behave like this.

What else has he been doing that is not in our interest?

I think we have a right to know.

After all, he didn’t win the 2010 election; he’s only in Downing Street because of a dodgy deal with the Liberal Democrats.