Last year we were told that half a million new homes were needed each year to cope with demand and currently only a fifth of that was being built. Rumours of green field sites to be used and flood plains to cope with the demand. Then the flooding started and flood plain building took a knock and so did the possibility of more social housing.
This week we here the government has an idea to knock down all the crummy estates put up since the second world war to enable social turnaround, are they throwing these ideas out because they are good, or are needed, or are the releasing a torrent of unfunded ideas because of a useless opposition?
For decades “affordable housing” meant exactly what it said on the tin – homes that were affordable, even to those on low incomes. Prior to 2010 traditional affordable homes, whether council housing or housing association properties, stayed true to the adage that their purpose was to provide an affordable place to live for even the less well off. Affordable housing was, in short, affordable.
No more. One of the most worrying proposals in the government’s recently announced planning reforms is a fundamental redefinition of affordable housing. Under the plans, the increasingly catch-all term “affordable housing” would stretch to include even properties that are affordable only to people on some of the highest incomes, the top 1%.
There is, of course, no problem with housing products aimed at those for whom market housing is beyond their means, but who do not qualify for traditional affordable housing. There are products available to aid people to get their home and they used to be called sub-prime mortgages, they have a new name today but essentially they are the same product.
As far as this new scheme for the removal of sink estates is concerned, will we be getting any further details like what to replace them with, where will the locals be resident while the alterations take place and where will the money come from to finance the project.
David Cameron will make a speech today, will we get any answers to these questions?
Monday, 11 January 2016
Saturday, 9 January 2016
Banking culture review
A review into Britain’s banking culture in the wake of the Libor rate-rigging scandal has been dropped. The Financial Conduct Authority [FCA[ said it had decided instead to “engage individually with firms to encourage their delivery of cultural change”. This means a return to 'take the chap out to lunch to give him a stiff talking too'.
Earlier this year, the FCA told banks to sharpen up their efforts to learn lessons from scandals such as foreign exchange and Libor rate-rigging, which have already cost them billions of pounds in fines. They also often lacked the urgency required given the severity of recent failings, the watchdog said. So what has changed?
The move to scrap the review comes after Martin Wheatley, the watchdog's chief executive, was also dropped by the Treasury in the summer and reflects a more positive tone towards the City of London following the Conservative party's election victory. Banking culture has come under fire since the financial crisis over foreign exchange and Libor rate-rigging scandals that have led to multibillion pound fines. Mis-selling to consumers has also cost the banks, with payment protection insurance alone forcing them to earmark more than £26bn for claims.
The review was intended to determine whether programmes to shift culture in retail and wholesale banks were "driving the right behaviour". It focused on a range of issues such as bankers' pay, appraisal and promotion decisions of middle management, and how concerns were dealt with. However, the Conservatives seem to have reverted to their old ways of looking after the chaps with a series of private meetings that have no public scrutiny. The acting head of the FCA Tracey McDermott will be called before the Treasury Select Committee next week to answer why the review has been dropped. We are not expecting much from this as all the pals will stick together.
Earlier this year, the FCA told banks to sharpen up their efforts to learn lessons from scandals such as foreign exchange and Libor rate-rigging, which have already cost them billions of pounds in fines. They also often lacked the urgency required given the severity of recent failings, the watchdog said. So what has changed?
The move to scrap the review comes after Martin Wheatley, the watchdog's chief executive, was also dropped by the Treasury in the summer and reflects a more positive tone towards the City of London following the Conservative party's election victory. Banking culture has come under fire since the financial crisis over foreign exchange and Libor rate-rigging scandals that have led to multibillion pound fines. Mis-selling to consumers has also cost the banks, with payment protection insurance alone forcing them to earmark more than £26bn for claims.
The review was intended to determine whether programmes to shift culture in retail and wholesale banks were "driving the right behaviour". It focused on a range of issues such as bankers' pay, appraisal and promotion decisions of middle management, and how concerns were dealt with. However, the Conservatives seem to have reverted to their old ways of looking after the chaps with a series of private meetings that have no public scrutiny. The acting head of the FCA Tracey McDermott will be called before the Treasury Select Committee next week to answer why the review has been dropped. We are not expecting much from this as all the pals will stick together.
Thursday, 7 January 2016
New Kinder Politics
This was a rather strange opening when Jeremy Corbyn became leader of the labour party and political commentators did not know what to make of it.
Perhaps now we are seeing it emerge in one of the longest running reshuffles ever.
The Tories seem to have adopted the new approach too as David Cameron decides that ministers will be allowed to campaign for the leave movement over the EU referendum without the possibility of being sacked, this is a novel move.
Removing flood defences from river banks connected with flood fields allowing farm land to be flooded instead of town centres seems like a good move and charging property developers council tax on properties they are taking to long to release to the market is another good mover, perhaps this new kinder politics will finally benefit those who vote for the politicians in the first place, 'The People'.
Perhaps now we are seeing it emerge in one of the longest running reshuffles ever.
The Tories seem to have adopted the new approach too as David Cameron decides that ministers will be allowed to campaign for the leave movement over the EU referendum without the possibility of being sacked, this is a novel move.
Removing flood defences from river banks connected with flood fields allowing farm land to be flooded instead of town centres seems like a good move and charging property developers council tax on properties they are taking to long to release to the market is another good mover, perhaps this new kinder politics will finally benefit those who vote for the politicians in the first place, 'The People'.
Monday, 4 January 2016
China abandons market trading
China has a message for currency speculators: the free lunch is over.
China's central bank has suspended at least three foreign banks from conducting some foreign exchange business until the end of March. Included among the suspended services are liquidation of spot positions for clients and some other activities related to cross-border, onshore and offshore businesses.
By closing loopholes in its regulations, China is trying to stabilize the yuan after a surprising revamp of its currency-valuation system in August led to capital outflows and prompted policy makers to tap $213 billion of foreign reserves to support the yuan. The risk is that discouraging arbitrage will cause the exchange rates to diverge further, undermining the goal of unifying the two markets.
Today [Monday 4-Jan-2106] China suspends trading after shares slide 7%.
Trading on the Shanghai and Shenzhen stock exchanges was ended early on Monday, the first trading day of 2016 after shares fell 7 per cent, the first time China's new "circuit breaker" intervened to curb market volatility. The drop in the CSI300 index, which covers both bourses, for the first time triggered an automatic early closure under the new system, after an initial 15-minute trading halt failed to stem the declines.
The falls followed poor data from official and private surveys of manufacturing in the world's second-largest economy. In addition, measures introduced to curb China's mid-2015 share slump are about to expire.
Naturally all the worlds stock markets have and will follow suit with substantial drops on opening. It really does not bode well for the year.
China's central bank has suspended at least three foreign banks from conducting some foreign exchange business until the end of March. Included among the suspended services are liquidation of spot positions for clients and some other activities related to cross-border, onshore and offshore businesses.
By closing loopholes in its regulations, China is trying to stabilize the yuan after a surprising revamp of its currency-valuation system in August led to capital outflows and prompted policy makers to tap $213 billion of foreign reserves to support the yuan. The risk is that discouraging arbitrage will cause the exchange rates to diverge further, undermining the goal of unifying the two markets.
Today [Monday 4-Jan-2106] China suspends trading after shares slide 7%.
Trading on the Shanghai and Shenzhen stock exchanges was ended early on Monday, the first trading day of 2016 after shares fell 7 per cent, the first time China's new "circuit breaker" intervened to curb market volatility. The drop in the CSI300 index, which covers both bourses, for the first time triggered an automatic early closure under the new system, after an initial 15-minute trading halt failed to stem the declines.
The falls followed poor data from official and private surveys of manufacturing in the world's second-largest economy. In addition, measures introduced to curb China's mid-2015 share slump are about to expire.
Naturally all the worlds stock markets have and will follow suit with substantial drops on opening. It really does not bode well for the year.
Thursday, 31 December 2015
Oil prices
Global stock markets fell yesterday [Wednesday 30-Dec-2015] as oil prices slumped toward 11-year lows, sapping investors' appetite for risky assets on the penultimate trading day of 2015. Investors need to pay attention to specific issuers in oil production states so they’re not blindsided in 2016.
Stock markets rallied the previous day as oil prices rebounded on prospects for lower temperatures on both sides of the Atlantic. But on Wednesday benchmark Brent crude slid below $37 a barrel, with investors worried about slowing demand and high supplies.
Slumping oil prices have been a major driver of financial markets this year, hammering energy companies, lowering inflation expectations and reinforcing bets on loose monetary policy in Europe and a slow tightening in the United States.
As the price of crude falls for a second year, marking the steepest decline since the recession, the impact is cascading through the finances of states, cities and counties, in ways big and small. Once flush when production boomed, some governments in major energy producing regions are facing a new era of unwelcome austerity as wells are shut.
A global glut of crude has weighed on the market for more than a year. Oil prices are on course to fall by more than a third this year as big suppliers such as Saudi Arabia and Russia have continued pumping crude in a bid to defend their market share. Meanwhile, U.S. crude output has been resilient despite the low prices, and much of the excess has gone into storage.
Brent is under particular pressure after the recent US budget deal that lifted a ban on US oil exports and is expected to reduce the international benchmark's premium.
Who is benefiting from this situation?
Domestic customers in the UK through low petrol pump prices and heating oil, but it is only temporary as the oil price controls more than just a few filling stations.
Stock markets rallied the previous day as oil prices rebounded on prospects for lower temperatures on both sides of the Atlantic. But on Wednesday benchmark Brent crude slid below $37 a barrel, with investors worried about slowing demand and high supplies.
Slumping oil prices have been a major driver of financial markets this year, hammering energy companies, lowering inflation expectations and reinforcing bets on loose monetary policy in Europe and a slow tightening in the United States.
As the price of crude falls for a second year, marking the steepest decline since the recession, the impact is cascading through the finances of states, cities and counties, in ways big and small. Once flush when production boomed, some governments in major energy producing regions are facing a new era of unwelcome austerity as wells are shut.
A global glut of crude has weighed on the market for more than a year. Oil prices are on course to fall by more than a third this year as big suppliers such as Saudi Arabia and Russia have continued pumping crude in a bid to defend their market share. Meanwhile, U.S. crude output has been resilient despite the low prices, and much of the excess has gone into storage.
Brent is under particular pressure after the recent US budget deal that lifted a ban on US oil exports and is expected to reduce the international benchmark's premium.
Who is benefiting from this situation?
Domestic customers in the UK through low petrol pump prices and heating oil, but it is only temporary as the oil price controls more than just a few filling stations.
Tuesday, 29 December 2015
Environment Agency
The head of the Environment Agency Sir Philip Dilley, under pressure to defend his handling of Britain’s worst flooding crisis for years amid reports that he has left the country to spend time at his luxury Caribbean home in Barbados.
The Environment Agency is a non-departmental public body, established in 1996 and sponsored by the United Kingdom government's Department for Environment, Food and Rural Affairs [DEFRA], with responsibilities relating to the protection and enhancement of the environment in England [and until 2013 also Wales].
The Environment Agency employs around 11,200 staff. It is organised into eight directorates that report to the chief executive Sir Philip Dilley, another £100,000 a year waste of space.
The Environment Agency's total funding in 2007–08 was £1,025 million, an increase of £23 million on 2006–07. Of that total, £628 million [61 per cent] was provided in the form of 'flood defence grant-in-aid' from government [£578 million for England and £50 million for Wales]. In addition, £347 million [34 per cent] was raised through statutory charging schemes and flood defence levies; and a further £50 million [5 per cent] came from other miscellaneous sources.
In 2007–08 had an operational budget of £1.025 billion, of which £628m was grant from the Agency's sponsoring Government Departments. Approximately half the Agency's expenditure is on flood risk management, and a third is spent on environment protection (pollution control). Of the remainder, 12% goes to water resources, and 6% to other water functions including navigation and wildlife.
Since the establishment of the Environment Agency several major flood events have occurred and the Agency has been the target of criticism. A number of reports have been produced which chart various developments in flood management.
Easter 1998 Floods and Bye report
Autumn 2000 Floods and Learning to Live with Rivers
June 2007 National Audit Office report
Summer 2007 Floods and the Pitt Review
What happens when you build a wall to stop water from entering the designated area, it usually flows around the side. The biggest single problem the Environment Agency has still not fathomed is it's main purpose.
The Environment Agency is a non-departmental public body, established in 1996 and sponsored by the United Kingdom government's Department for Environment, Food and Rural Affairs [DEFRA], with responsibilities relating to the protection and enhancement of the environment in England [and until 2013 also Wales].
The Environment Agency employs around 11,200 staff. It is organised into eight directorates that report to the chief executive Sir Philip Dilley, another £100,000 a year waste of space.
The Environment Agency's total funding in 2007–08 was £1,025 million, an increase of £23 million on 2006–07. Of that total, £628 million [61 per cent] was provided in the form of 'flood defence grant-in-aid' from government [£578 million for England and £50 million for Wales]. In addition, £347 million [34 per cent] was raised through statutory charging schemes and flood defence levies; and a further £50 million [5 per cent] came from other miscellaneous sources.
In 2007–08 had an operational budget of £1.025 billion, of which £628m was grant from the Agency's sponsoring Government Departments. Approximately half the Agency's expenditure is on flood risk management, and a third is spent on environment protection (pollution control). Of the remainder, 12% goes to water resources, and 6% to other water functions including navigation and wildlife.
Since the establishment of the Environment Agency several major flood events have occurred and the Agency has been the target of criticism. A number of reports have been produced which chart various developments in flood management.
Easter 1998 Floods and Bye report
Autumn 2000 Floods and Learning to Live with Rivers
June 2007 National Audit Office report
Summer 2007 Floods and the Pitt Review
What happens when you build a wall to stop water from entering the designated area, it usually flows around the side. The biggest single problem the Environment Agency has still not fathomed is it's main purpose.
Monday, 28 December 2015
A Year of Reckoning
Most people have been writing about the last twelve months as an overview of what has happened, I am more interested in what could happen in 2106.
What lessons have we learned about 2015 and the increase in terrorism attacks.
The type of attacks that have happened seem to suggest the marauding type has become popular mostly because of the coverage they attract but perhaps because of the logistics involved. With Shengen [although not much free movement in Europe at the moment as Shengen is broken] entering Europe and travelling round the 26 countries has not posed much of a problem with groups of people shipping in arms and attracting newspaper offices, football groups, bars, restaurants and music venues has not been complicated either.
If the security forces start to work on disrupting these types of events the protagonists will presumably move on to plan B.
What about the political side of events. What are the fundamental problems in the region? Civil war in Syria, bad governance in Iraq, no final strategy for Libya.
There could be a deal in connection with Libya, there are talks in Yemen that could ease the situation, there are planned, also Syria talks next month in January, what can be achieved from these, a little at a time and goals could succeed. If not ISIS has the ability to move into Yemen and Libya unopposed.
What can be achieved from these events? The reactive approach must be left in the past and a more proactive approach must be taken. Apart from peace being the overriding goal, are there individual goals that can be achieved in each country that will appease all?
What lessons have we learned about 2015 and the increase in terrorism attacks.
The type of attacks that have happened seem to suggest the marauding type has become popular mostly because of the coverage they attract but perhaps because of the logistics involved. With Shengen [although not much free movement in Europe at the moment as Shengen is broken] entering Europe and travelling round the 26 countries has not posed much of a problem with groups of people shipping in arms and attracting newspaper offices, football groups, bars, restaurants and music venues has not been complicated either.
If the security forces start to work on disrupting these types of events the protagonists will presumably move on to plan B.
What about the political side of events. What are the fundamental problems in the region? Civil war in Syria, bad governance in Iraq, no final strategy for Libya.
There could be a deal in connection with Libya, there are talks in Yemen that could ease the situation, there are planned, also Syria talks next month in January, what can be achieved from these, a little at a time and goals could succeed. If not ISIS has the ability to move into Yemen and Libya unopposed.
What can be achieved from these events? The reactive approach must be left in the past and a more proactive approach must be taken. Apart from peace being the overriding goal, are there individual goals that can be achieved in each country that will appease all?
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