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Sunday 30 November 2014

Knowle relocation project: District Council cabinet meets Wednesday 3rd December: analysis of proposals

This coming Wednesday evening, the District Council's cabinet will be discussing the latest proposals - to relocate from Knowle - not to Skypark, but to Honiton/Exmouth:
Futures Forum: Knowle relocation project: volte face: the District Council will not be moving to Skypark: "Development at Knowle and changes to destination to be considered by cabinet"

Looking at the report on relocation in the Agenda for the cabinet meeting of 3rd December:
new.eastdevon.gov.uk/media/526937/031214-cabinet-agenda-public-version.pdf

Here are the most important points - together with observations from the EDA blog:

Relocation Update – key decision

Purpose of report: To advise members of latest developments regarding the relocation of EDDC HQ from Knowle. In particular to make Members aware that marketing of Knowle and Manstone sites is completed and further discussions with bidders are in progress and, to advise Members of changed circumstances and proposed changes to the preferred new HQ site.

Recommendation: 

1. Note project progress following the previous update report of 4 June 2014

2. Recognise emerging changes to the relocation project agree the following:
a. The marketing exercise for Knowle and Manstone has resulted in a range of offers and, following a detailed assessment process, we have received price, form and quality of development propositions that merit further detailed negotiation toward selection of a preferred developer.
b. Leading offers for Knowle do not include options to sell Manstone in which case EDDC can choose to retain Manstone for the foreseeable future as a depot function and continued employment use.
c. The reduced offer for EDDC’s Heathpark site no longer represents a sufficiently persuasive level of capital receipt and will not be pursued further.
d. The retention of Heathpark in EDDC ownership means that this now represents the most cost effective and straightforward location to develop a new headquarters building for the Council.
e. Relocation to Skypark is no longer a viable proposition based on the reduced offer for Heathpark and combination of Knowle market value and prudential borrowing.

IS THIS WHY SKYPARK FELL APART?
Page 42 of next week’s cabinet papers:
“Also, a key plus point regarding Skypark was the prospect of a turn-key guaranteed maximum price arrangement to completion of a new HQ that would minimise uncertainty and reduce risk”.
This reads as if EDDC were expecting their new HQ to be constructed (by whom?)ready to move into at a fixed price (turn-key). They say in their paperwork that it was only after “due diligence” and a “legal opinion” on 4 June 2014 that a situation about the need to take account of EU regulations was revealed, coincidentally around the time that the supermarket was reducing the price it was prepared to pay for the Heathpark site.
Of course, we cannot know what went wrong for sure as all costs and cost deliberations have been kept secret not only from the public but also from the majority of councillors of all parties.
This debacle urgently needs Overview and Scrutiny and/or Audit and Governance intervention – and possibly a report by internal and/or external auditors so that those involved can learn from their mistakes and other councillors can understand what was being done in their name and work out how to stop it happening in future.
Presumably the Cabinet will recommend one or more of these actions at their meeting next week.
COMMENT:
The bases for EDDC keeping the Skypark numbers confidential were:
a. That they were works in progress and not finalised; and
b. They were commercially confidential due to ongoing negotiations to purchase Skypark land and build offices.
Once Skypark is absolutely rejected by Cabinet, these criteria no longer hold true, and EDDC will presumably now need to disclose the papers requested under FoI legislation.
COMMENT:
All this secrecy hints at an attempt to negotiate a single tender deal. For the sums involved this could never have been in the public interest. EU rules are designed to open up public procurement to competition. Will we ever know the truth?

KNOWLE RELOCATION AND EU REGULATIONS: THE QUESTIONS THAT OVERVIEW AND SCRUTINY AND/OR AUDIT AND GOVERNANCE PROBABLY WON’T ASK
COMMENT:
Well the EDDC relocation panel and their developer friends will be disappointed – what spoilsports those EU regulators.
I understand this means Capital Procurements over 5m EUR (and design/engineering services worth over 414K) have to comply with Europe wide open tender competition.
EU regulation is for public authorities to advertise for tender and professional services in the Official European Journal OEJ
Surely this was flagged up by their bedfellow consultant and his employers Davis Langdon.
Note EDDC will also have to comply with OEJ ruling for major redevelopment at the Knowle.

f. The East Devon Business Centre (EDBC) should preferably be retained and could potentially be combined within a new EDDC HQ development.

IS THE (LATEST!) RELOCATION PLAN BEST FOR BUSINESS?
From a correspondent:
‘As the EDA website correctly points out, EDDC recognises that local government reorganisation is in the offing.
But Chief Executive Mark Williams has already stated that in the event of local government reorganisation, the Knowle would have to be sold. Save Our Sidmouth (SOS) recently issued a press release highlighting his comments. If the Knowle will be sold for this reason, as Williams predicts, then logically so would the new HQ at Honiton and the surplus space at Exmouth. Why, then, are we proposing to spend £10 million + on a new building that can only be sold for a fraction of that cost?
The extremely lame offering from EDDC is that the new building could be used as a bigger East Devon Business Centre. Unfortunately, that idea has been scuppered by their recently commissioned Carter Jonas report, prepared when they wanted to close the Business Centre and use the funds to build Skypark, which concluded that the Business Centre was out of date, under-used and losing money….
Is the (latest!) relocation plan best for business? | East Devon Alliance

g. In the interim, Exmouth Town Hall has been vacated by Devon County Council Services and represents a new opportunity within the relocation plan.
h. A new HQ in Honiton can be restricted in size and cost to a 170 desk equivalent scale with an improved Exmouth Town Hall for 80 EDDC staff as a main satellite office in the District’s largest community.

50% OF EDDC STAFF TO BE MADE REDUNDANT?
Does this mean that 50% of staff will be made redundant in the next two or three years? And if 50% of staff are to be lost, surely the newer part of Knowle offices would accommodate the rest as EDDC has made it clear that for much of the time, some staff will be constantly on the road or hot-desking?
Or will so many people be working so often from home that they will have to declare this for tax purposes?

i. As part of its commitment to more mobile working and accessibility, the Council will offer a service presence as customers require in future at locations elsewhere in the District.
j. That relocation continues to make financial and operational sense on a whole life cost basis, specifically 20 yr. projections combining capital receipt and repayment of prudential borrowing versus existing office running cost and unfunded expenditure on existing building repair, maintenance and
improvement.

3. Authorise the Deputy Chief Executive (Development, Regeneration and Partnership) in consultation with the Office Accommodation Executive Group to take forward further actions in pursuit of the above recommendations and Project Plan

4. Agree that further reports are produced for Cabinet and Council on project progress and to seek formal approval for any disposal of Knowle

Financial implications: ...
Legal implications: ...

Risk: Low Risk
This report does not commit the Council to sell Knowle or Manstone sites and recommends actions that remove the additional complexity of a new site acquisition.
This in one among a series of reports that has sought Cabinet and Council decisions on project actions and advised on project progress. As well as a managed and monitored risk review process, the regular reporting process and Member Executive Group oversight means that risk is reviewed and mitigated.
Decisions in this report enable officers to pursue negotiation with buyers for Knowle, further refine the new opportunity for Honiton/Exmouth offices and confirm that sale of Heathpark is no longer financially attractive withthe resultant impact on Skypark relocation viability.

EDDC: PLEASE STOP CALLING IT “PLAN B” – THERE WAS NO PLAN B!
It is NOT Plan B!
Why?
1. You did not factor into your Skypark choice that the supermarket destined for Honiton might change its plans (evidence: you told tenants of the East Devon Business Centre to start looking for new premises).
2. You did not know at the start of your deliberations that there would be space at Exmouth Town Hall (evidence: Devon County Council only recently announced that it would be vacating its space at Exmouth Town Hall).
3. If Exmouth had really been a viable alternative to Skypark, EDDC would have investigated the Rolle College site.
And, surely, with the empty space at Exmouth Town Hall, DCC is charged with getting best value for it. How can EDDC be sure of securing it?

EDDC: Please stop calling it “Plan B” – there was no Plan B! | East Devon Alliance

THERE WAS NO PLAN B! ALL WAS DEPENDENT ON A NEW SUPERMARKET AND NOW PANIC PLANNING
COMMENT:
This is a disaster for East Devon Business. How can we cover the AONB with building developments if the supermarkets are losing profitabiity? We need more supermarkets on the outskirts of every town – with large car-parks to ensure that oil prices are maintained. Who could have forecast that the Great Recession would continue and intensify despite five years of austerity for the poor and the homeless young? Cut business taxes and provide subsidies for international corporations, our only hope to re-float the economy. Otherwise there will be nowhere for philanthropists to buy donations for the Food Banks of East Devon.
THERE WAS NO PLAN B! ALL WAS DEPENDENT ON A NEW SUPERMARKET AND NOW PANIC PLANNING | East Devon Alliance

The report contains a reminder of overall project risks further in this report.

Links to background information:
 Cabinet Minutes 5 Feb 2014, Minute 180
 Report on Relocation Update, Cabinet 4 June 2014

Attached Appendices
 Cost Model for Refurbishment of all Knowle Office Buildings
 Cost Model for Refurbishment of 1970 Office Building and Complimentary New Building

Link to Council Plan: 
Relocation meets a range of priorities in the Council Plan. It will provide future resilience and improved working for the council to continue to design and deliver services that suit our residents, businesses and visitors’ needs. EDDC is also committed to making the best use of its assets including the longer term certainty and efficiency that modern offices will provide with operational flexibility alongside more mobile working across the district.

Progress
The Cabinet report in June 2014 committed to report back later in the year principally regarding marketing of the Knowle and Manstone sites and, progress on Skypark as the preferred relocation site.
This report now updates Cabinet on those matters and seeks agreement to a number of recommendations principally to agree to enter into negotiations with a preferred bidder for the sale of Knowle and develop in detail plans for our Honiton and Exmouth assets as relocation sites in preference to the sale of Heathpark, Honiton and a development at Skypark. 

WHY DIDN’T THEY ASK ALMOST ANYONE BUT EDDC COUNCILLORS AND OFFICERS? THE SIGNS WERE THERE …9th February 2014 EDA deplores EDDC’s Skypark choice, as costs spiral in the office relocation fiasco. | East Devon Alliance
27th February: Knowle sale and Skypark spend voted through, under veil of Cabinet minutes. | Save Our Sidmouth and Skypark | Search Results | Sidmouth Independent News | Page 6
Why didn’t they ask almost anyone but EDDC councillors and officers? The signs were there … | East Devon Alliance

Knowle/Manstone Sites ...
Skypark ...
Honiton Heathpark ...

Exmouth Town Hall ...
Other Considerations: Site Preference Process ...
Financial ...

Risk 
In moving from a scenario of new site acquisition to using existing owned assets the Council is reducing risk, cost and complexity within the relocation project. We also now know that there are developers offering bids for the Knowle of sufficient value to merit further negotiation. Previously, the project costings were based on estimated market values. We now know what values developers are offering for Knowle and can calculate accordingly following further negotiation.
The risks associated with staying at Knowle remain with the added intelligence that no developer has proposed to retain the former hotel building or other existing buildings individually or as part of a larger development.
As part of the selection interviews, the bid proposers were asked for their view on the challenges and risks of their development proposal including matters of finance, track record and planning.
The Council has taken independent planning advice on the proposals and a selected preferred developer will be expected to engage promptly with the planning authority.
Previously identified risks are recognised and mitigated within the process.
Delay to planning permission (e.g. Judicial Review) is reflected in a cost profile that includes extended borrowing within the overall project budget. The Council’s Development Management Committee will consider any planning application in the normal way; obviously the outcome of any planning application cannot be assumed as each application is considered on its planning merits.
Relocation will be dependent on a developer securing planning permission meaning that the Council will not be left homeless.
The project budgeting includes a combination of mitigations of risk not least contingency throughout and borrowing projections that include added time to manage delays through judicial review or similar challenge.
Overall 20% contingency has been identified through design and build to allow for unplanned expenditure. Council has decided that it wants to relocate having fully considered the risks in remaining at Knowle compared to moving to new offices. There is no developer interest nor value in the existing Knowle buildings. There is outstanding basic repair cost and significant cost to any efforts to refurbish or modernise the current buildings with no prospect of capital receipt to help fund such expenditure.
Bidders have considered planning issues in preparing their bids including an independent planning statement commissioned by the Council as landowner. 

ANOTHER BIT OF HELP FOR OUR STRUGGLING COUNCILLORS
When you finally settle on your new HQ... do be careful that
a) if you have to tender, you check the rules
and
b) use this handy checklist to make sure that the companies tendering are not bid-rigging, which seems to be a particular problem in public sector procurement. So big that there is actually a hotline to report it.
Better safe than sorry.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/378097/Bid_rigging_-_advice_on_procurement.pdf
Another bit of help for our struggling councillors | East Devon Alliance

The preferred developer will carry out preapp discussions promptly. The Council will not enter into unconditional contract with a developer for the Knowle without planning permission in place. Once permission is obtained by the
developer the risk substantially diminishes allowing Council new build/refurb at Honiton and Exmouth to commence. At the same time, other risk factors need to be mitigated through keeping to a construction timetable to avoid construction cost inflation (currently at 7.1% pa – BCIS Tender Price Indices). Members should be aware that Judicial Review or call in are factored into risk
analysis and management.

Geography ...

Impact 
As we know from the previous Economic Impact Assessment, Sidmouth is estimated to experience a reduction in economic activity through the Council’s move. Those benefits will be redistributed between Honiton and Exmouth. Development of the Knowle for residential and/or care facilities would bring economic benefits of construction jobs, new residents’ spending as well
as the additional potential for purchase of local services and possible new employment. Overall there will be an economic uplift distributed around the district.

“REAL POWER” TO EXMOUTH WITH EDDC MOVE
… or just a touchdown hot-desk base for those ever-roving, lower-level employees destined to roam the outer reaches of the district for ever whilst their Lords and Masters enjoy life in their new Honiton HQ.
Could “working for EDDC at Exmouth” become the new Siberia?
http://www.devon24.co.uk/news/eddc_to_bring_power_to_exmouth_1_3866187
“Real Power” to Exmouth with EDDC move | East Devon Alliance

IF HONITON AND EXMOUTH NOW MAKES SO MUCH SENSE WHY WASTE HUNDREDS OF THOUSANDS OF POUNDS ON SKYPARK?
All efforts now are towards saying what a sensible and brilliant idea EDDC upper echelons have come up with for Exmouth and Honiton presence.
So why did they waste hundreds of thousands of pounds of OUR money on Skypark?
From their press release we learn:
“It is clear there is a need to increase service provision for housing benefits, Council Tax, housing advice and register and debt advice in both Exmouth and Honiton and there would be significant demand led presences in Sidmouth and Axminster.
“The council would provide surgeries in other towns as they do in Cranbrook, Seaton, Ottery St Mary, and would experiment with frequency and range of services depending on demand.”
It must have ALWAYS been clear that Exmouth, Honiton, Sidmouth and Axminster needed to be close to accessible services and that the need for these services would only increase as development increases. (Oddly Seaton doesn’t seem to need them – perhaps it will be left stateless when new mergers take place!).
Yet, given all of the above, Skypark was chosen. Why?

If Honiton and Exmouth now makes so much sense why waste hundreds of thousands of pounds on Skypark? | East Devon Alliance

Residential, retirement and or care facilities would offer a mix of other benefits to Sidmouth including social, health and wellbeing considerations along with new residential facilities and the freeing up of existing homes in the area.

The Future of Knowle
It is worth restating the key reasons why this Council has committed to move from the Knowle to new Headquarters: 
1. Essential repair works to existing buildings will cost £1.566m . There is no funding allocation (capital receipt or otherwise) to cover this cost. Such repairs would not include any redecoration, refurbishment or rebuilding. No internal restructuring or modern office working would be provided.
2. In buildings of this age and design there is little doubt that they will present further problems even after repair and/or refurbishment.
3. Refurbishment of all of the existing buildings will cost up to £15.9m. This can reduce if only newer parts of the office spaces were refurbished and with minimum additional build but the cost will still be of the order of £7.7m without a significant capital receipt to cover the costs nor any uplift in value to the site or buildings (see two attached cost model reports).
4. No market interest has been shown in retaining and refurbishing any of the existing buildings. All bids were made only for a site vacated by EDDC and cleared. Bids received all covered the upper car parks, office and depot space.
5. Bids received make clear that to derive a meaningful capital receipt from the Knowle requires EDDC to leave.
6. Suggestions that the Council can retreat to the 70s/80s blocks and derive a significant receipt from sale of the former hotel are unviable. The Council has considered the possibility (including a reduced size of workforce) and found that it fails on the basis of cost, lack of asset uplift in value and absence of market interest.
7. Knowle has annual energy costs of £83,900 pa compared to a predicted energy cost for Honiton/Exmouth combined of £33,700 pa. Even after repairs, Knowle energy costs would still be double those of the Honiton/Exmouth alternative.
8. Based on Dept. of Energy and Climate Change (DECC) current fuel price indices, gas has increased on average 18.8% pa between 2003 and 2013 whilst over the same period, electricity has increased on average by 11.9% pa. Allowing a modest 10% pa inflation rate for energy and 2% for general inflation, the total savings in running costs of Honiton/Exmouth over Knowle are of the order of £5.55m over 20 years.
9. New build at Honiton and refurbishment of Exmouth Town Hall will be funded via capital receipt and prudential borrowing. Over a whole life period of 20 years the spend will pay for itself with savings accruing thereafter.
10. The outcome of a departure from Knowle will be new and refurbished modern offices with low maintenance and minimised additional maintenance costs. 

EDDC RELOCATION PROJECT
For East Devon District Council
Revision J - 21 November 2014 - BREEAM VERY GOOD
COST MODEL FOR REFURBISHMENT OF ALL EXISTING KNOWLE OFFICE BUILDINGS

EDDC ACCOMMODATION PROJECT
For East Devon District Council
COST MODEL FOR REFURBISHMENT OF EXISTING 1970 OFFICE BUILDING & COMPLIMENTARY
NEW BUILDING, KNOWLE, SIDMOUTH - BREEAM Very Good and Excellent Options Review
Revision F- 21 November 2014

LEFT HAND, RIGHT HAND, UPPER HAND, UNDER HAND – OR NO HAND AT ALL?
The agenda for the Cabinet next week makes reference to:
The Office Accommodation Executive Group,
the Office Accommodation Project Executive Group and the
Member Executive Group.
We have heard only of a fourth group: the “Office Relocation Working Party”.
Is the “Member Executive Group” a jargon phrase for the Cabinet?

Left hand, right hand, upper hand, under hand – or no hand at all? | East Devon Alliance



To conclude, further comments from a posting on the blog of Cllr Claire Wright:

EDDC drops HQ move to Skypark. We’re going back to Honiton now, it says

Comments

1. At 06:59 pm on 25th Nov Paul wrote:

Yup - several £100k in consultants fees planning a move to Skypark now shown to be utterly wasted.

As other people have said, a plan to do an expensive and complex (and hence risky) move in a time of austerity is foolhardy. If EDDC had been more open about their thinking, their cost estimates and most importantly about really listening, discussing and considering other people’s views, we could probably have reached this point in February and not wasted (say) £500k on consultants.

If only the Cabinet risked paying for this wastage out of their own pockets, then they might have been less arrogant with OUR money.


2. At 03:40 pm on 26th Nov Sandra Semple wrote:

I live in Seaton. I need to visit EDDC HQ. Catch 9.00 am bus to Honiton, arrive Lace Walk 9.40, walk to HQ, arrive HQ 10.00 am, next bus back 12.40, arrive Seaton 13.30, total travelling time 4.5 hours.


3. At 11:53 pm on 26th Nov Conrad Black wrote:

Well, it seems that our elected representatives are hell bent on proving conclusively that they are incapable of commercial judgements?

The original decision, which, having cost a million or more, is suddenly unsound? For this to be the case those that made the decision in the first place are by implication equally unsound and it is high time they left for pastures new having cldearly exceeded their use by date.

If it were essential to have a central structure then it cannot be acceptable to run split sites. The savings are not there. If they had been, then the split site would have been part of the original consideration from the beginning - and it was not. So you find it difficult indeed to put any faith in the decision making process to date.

Consultants have been expensively employed to find, one might be obliged to conclude - on the basis that council officers have admitted to re-writing their ‘independent’ reports before presentation to Councillors, rather less than independent advice. In other words money of the public purse appears to have been used in what might be interpreted as ways that are not consistent with the duty of local government officers, to offer independent advice. If that were true it would create a situation of the gravest kind for the reputation of government itself.

What is truly sickening is, in the middle of this debacle, the checks and balances, the Councillors responsible for monitoring what the executive are doing, and responsible for calling decisions to account, have utterly failed. Disaster falls upon disaster and still they do nothing.

To paraphrase Flanders and Swann, “These Councillors now our contempt is beneath, they fail their voters and their time will be brief. They fail to react when some folly is done, and despite our concerns direct action is none.”

Of one thing we are now certain - this plan is a concerted vendetta against Sidmouth. It seems convenient to Honiton representatives to forget that Sidmouth is the second town of the district, behind Exmouth. Honiton is third, but wants to ‘punch above its weight’. Curiously it is not more central than Sidmouth, is not as well served by infrastucture to the district, and does not provide the level of income either. The business of the district is Tourism. But this council cannot stomach the fact that the living comes from the seaside towns, and there is no other industry waiting to rush in to provide extra employment.

And the Councillors of the seaside towns are equally to blame for failing to stand up for the people they are elected to represent. Where was the furore when Skypark was to be foisted upon us?

The time has come for them to show their colours. I wonder what colour independents or UKIP use?


4. At 11:50 am on 27th Nov Damien Mills wrote:

Clearly, this is a farce of Brian Rix proportions!

Earlier this year we were told Heathpark wasn’t an option because without the revenue generated by its sale there wouldn’t be enough money in the pot to build a new HQ there. The following comes from the council’s own East Devon Extra newsletter of February 27, 2014.

Options: considered and discounted

Heathpark, Honiton: This option could have been straightforward in the sense that the council owns the site. However, a new build on the site would preclude its sale and therefore reduce the overall financial package that could help fund relocation.

Now we’re asked to believe a new HQ at Heathpark is ‘the most cost effective and straight-forward location to develop a new HQ building for the council’; if that is the case then it seems to me that it wasn’t ruled out previously on the grounds of affordability, as we were asked to believe, but because EDDC’s ruling elite were so intent on pursuing their SkyPark vanity project.

That aside, what concerns me more than anything now, is the pressure EDDC will now come under to approve whatever plans for the Knowle are put forward by its preferred developer.

In Richard Cohen’s latest relocation report [http://new.eastdevon.gov.uk/media/526937/031214-cabinet-agenda-public-version.pdf], he readily acknowledges that should the preferred bidder not secure planning permission the sale will collapse and that this could present major difficulties:

‘… costs will be incurred on the accommodation before a receipt is received. The most significant risk being the potential tender does not securing [sic] the necessary planning permission at which stage the Council would have already incurred significant outlay in its new accommodation, mitigation will be taken where possible but this risk will remain.’

Aside from the risk identified above, it seems to me there’s an even greater risk that the preferred bidder, conscious of the corner into which EDDC has contrived to back itself, will push the limits of what might reasonably be granted planning permission. After all, they will be safe in the knowledge that if the planning committee dare say no to their plans the council is, not to put too fine a point on it, up a dirty river, in a vessel that’s sinking fast, with a paddle nowhere in sight!


EDDC drops HQ move to Skypark. We’re going back to Honiton now, it says - Claire Wright
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Knowle relocation project: and the longer-term demise of district councils... "Council leaders across England have joined forces to demand the Government gives them more powers to run their own affairs."

The demands for greater devolved powers to the regions are growing - all with a look to the Chancellor's Autumn Statement...

Here is a business view from the South West:

Chancellor’s hands maybe tied next week

27-November-2014
by Josephine Bush, tax partner at EY

The Chancellor will deliver his Autumn Statement on December 3, but is not expected to muddy the waters and won’t give much away ahead of next year’s general election. With the UK general election in May 2015, a Scottish election in May 2016 and a possible referendum on the UK’s membership of the EU in 2017, this is an uncertain time for businesses across the UK, and no less so in the South West.

Additional uncertainty arises as the Scottish referendum earlier this year triggered a national debate about major constitutional change in other regions of the UK.

The Chancellor now has the opportunity to build on this momentum and try to galvanise growth across the English regions. Change and further devolution of powers will still be forthcoming in the form of concessions from Westminster and greater control for the regions.

But devolution will be an ongoing process and businesses in the South West must have a voice, continuing to engage with Government, local authorities and each other in maximising any benefits these new powers can deliver for the economy and identifying any challenges they create.

Business leaders have urged the Government to focus on energy and infrastructure projects with businesses in the South West hoping for significant investment, which would have a significant impact on the region’s economic potential...


Josephine Bush, tax partner at EY: Chancellor’s hands maybe tied next week | Blog
Autumn Statement 2015: Bring us all some Christmas cheer, please Mr Osborne | Blog


And here are some business views from further afield:




November 30, 2014 5:24 pm

Regional businesses have high hopes for devolution dividend

Leader of the House of Commons William Hague (3L) chairs the first meeting of the Cabinet Committee on devolution at Downing Street on September 24, 2014. puknews©Getty
Ahead of this week’s expected giveaway of powers to the regions by chancellor George Osborne, excitement about devolution is stirring among businesses across the north of England.
Mr Osborne coined the phrase ‘Northern powerhouse’ in June in an attempt to create a magnet for economic growth outside London. Joining Liverpool, Manchester, Leeds and Sheffield together with better transport links – including a possible new £7bn 125mph rail line – would create a conurbation to rival the capital, he said. The government also proposes devolving powers and money to combined authorities, groupings of neighbouring councils that can collaborate, possibly led by a directly-elected mayor.
Business has been quick to respond. Later this month 200 business people will cram into a hotel function room in Huddersfield to debate devolution while hundreds more will follow the event’s live webcast after tickets ran out.
Marlen Roberts, managing director of Insider Media, the regional publisher behind the event, said: “Interest has been huge. The quality of the people wanting to attend the conference shows that the ‘Northern powerhouse’ is starting to resonate with businesses in the boardroom.”
While the north-south high speed rail line, HS2, has divided opinion, the idea of better connecting the north’s big cities to cut down journey times – dubbed HS3 – has met overwhelming approval.
Greg Sills, founder of engineering consultant Scurator, said top of his wishlist was better cross country rail services. Speaking during an arduous four hour midweek car journey from his base in Saltburn, on the coastal edge of Teesside, to see clients in Birmingham, Mr Sills said: “Over the past six months we’ve been doing stuff in the north west and south west and the [rail] service has been poor, absolutely poor.”
He believes that north east England is not getting its share of investment, and that the government’s devolution proposals must address this. “We get cast as the poor relation to other parts. It would be useful to have an injection of cash and powers. You could control your own destiny.”
David Hall, chief executive of YFM, a private equity fund that invests 75 per cent of its money outside the south east, agrees that the current transport system works against northern businesses. From his Wigan home “I can fly to Aberdeen and get there for 9am but I can’t get to Leeds. It must have an impact on the levels of business.”
Scott McCubbin, of Liverpool based marketing agency Uniform, said he focused on doing business in London more than northern cities because of the size of the market and ease of access by train. The creation of a ‘Northern powerhouse’ could allow it to win more work locally, he said.
A survey of 200 businesses by DataCentred, a data centre business in Manchester, found 87 per cent believe that devolving more power to local authorities will increase business growth in the regions. However, 79 per cent favoured high-speed broadband over improved rail links.
On the subject of devolution and giving more power to local authorities, businesses tend to be more sceptical.
John Elliott, founder and chairman of County Durham based manufacturer Ebac, says he has no time for constitutional change. “Absolute tosh; totally irrelevant and a sideshow. It’s really fiddling while Rome is burning.”
“The real issue is we have to get the economy sorted out.”
Nevertheless many business people favour more local rule. Some, such as Tom Bloxham, the founder of Urban Splash, the property developer, and Scott Fletcher, of software company ANS, have been tipped to run for mayor of Manchester in 2017.
Mike Driver, of Convex Capital in Manchester, which advises entrepreneurs on selling their businesses, advocates a Swiss model. “The most prosperous, stable country in Europe is the most decentralised: Switzerland. City states are the most efficient way of working and limiting the damage from errors.”
But he would rather have existing councillors run things than a mayor with concentrated powers.
Mr Sills of Scurator, agrees. “My gut feeling is the people who are running the local authorities have the powers to undertake the role; why do you need a mayor?”
Jonathan Diggines, chief executive of EV, a venture capital firm that invests in small businesses, questions whether council officers have the expertise to run rail franchises and plan large highways. “The big risk is execution risk.”
Charles Crewdson, chairman of Gilbert Gilkes and Gordon, a hydroelectric equipment manufacturer in Kendal, Cumbria, said local control was better than the regional development agencies. “We had dropped off the radar,” he said. While he feared the cities would now get the lion’s share of investment he said rural Cumbria would gain from a ripple effect. “We have got to have a counterbalance to London.”
Regional businesses have high hopes for devolution dividend - FT.com
Meanwhile, councils across the political divide are also calling for more devolution to the regions:


Councils unite in bid to get greater powers

The leaders of 119 councils warn that voters in England will not accept greater devolution to Scotland unless there is a similar redistribution of power south of the border


English council leaders have called on Chancellor George Osborne to give them more powers Photo: Philip Toscano/PA

By Nicola Harley 11:57PM GMT 29 Nov 2014

Council leaders across England have joined forces to demand the Government gives them more powers to run their own affairs.

In a letter to The Observer, the leaders of 119 councils - including 65 controlled by Labour, 40 by the Conservatives and 10 by the Liberal Democrats - warn that voters in England will not accept greater devolution to Scotland unless there is a similar redistribution of power south of the border.

They called on Chancellor George Osborne to use his Autumn Statement on Wednesday to set out a "new settlement for England" which devolves power from Westminster and shares out tax and spending across the UK "on a fair basis".

"Earlier this week, the Smith commission (on Scottish devolution) set out a better deal for Scotland, granting more control over funding and recognising the importance of devolving power down beyond Holyrood. It's England's turn now," they wrote.

"The people we represent, who look north of the border with envy at the greater control Scots are to get ... will expect nothing less." The leaders also warned Mr Osborne that having seen their budgets slashed by 40 per cent over the current parliament, local government could not afford another punishing round of "austerity" cuts.

"Funding for services provided by councils has borne the brunt of austerity, while demand continues to rise. When the Chancellor delivers his Autumn Statement this Wednesday, 'more of the same' cannot be an option," they said. "Further reductions without radical reform will have a detrimental impact on people's quality of life and will lead to vital services being scaled back or lost."

They warned that services such as libraries, road maintenance and leisure facilities are continuing to "buckle" under the pressure of cutbacks amid the rise in the cost of care for the elderly. "Failure to address this will not only jeopardise other services, but will pass costs on to the NHS which will have to pick up the pieces if we cannot protect adult social social care or provide the services that keep people healthy," it added.

Mr Osborne has agreed to give “London style” self-rule to Leeds, Sheffield and Manchester, and is expected to announce further details in his Autumn Statement. It is expected that while no extra money will be provided to the regions from central government, they will get far more control over their own affairs, including trains, roads, schools and science as well as potentially housing. Mr Osborne has said he wants to create a northern economic “powerhouse”, including a new high speed rail plan for the north.

Earlier in November Nick Clegg, the deputy prime minister, said the North had been "ignored" for too long, adding: “It is time to give these cities London-style powers. What is good enough for London, is good enough for the similarly great cities of the North. While there isn’t extra money, we can give them much more control over their own budgets and, therefore, over their own decisions and destinies.”

Local government minister Kris Hopkins warned that councils could not be exempt from the continued need to find savings. "Local government accounts for a quarter of all public spending and must play its part in paying off the deficit left by the last administration. Since 2010 this Government has delivered a fair settlement to every part of the country while giving them greater financial independence so they can increase revenue and protect front-line services. All councils should be making sensible savings and keeping council tax down by merging back office services or doing more joint working."

For Labour, shadow communities secretary Hilary Benn said devolution within England was now inevitable. "Devolution isn't just for Scotland. There is an unstoppable tide now flowing right across England in favour of people having more power locally," he said. "If we want to get the economy moving in all parts of the country, then we need to give local communities more power to shape their own future."


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km zero - zero food miles

In Italy, the notion of 'zero-food' mileage is translated into 'Km zero' - but it has a double meaning - which might catch some people's attention:




The whole commercial is based on the double meaning of the formula "Km Zero" in Italian, to speak to an unusual target, the male 20 - 40 years old. The formula is used to describe a discounted car with low mileage on the clock, untitled, and used for loan/ demonstration purposes. It is usually a great bargain, getting as much as 20% off the dealer's price. But at the same time the formula is used to describe local and organic food, grown figuratively "zero kilometers" from home. Almost up to the end of the commercial, our male target is tricked to believe it is a car the one represented, with the help of two-faced claims (more control, less emission, superior quality). Combining something they know, cars, with something they are often not interested in, good nutrition, the commercial ties together two concepts, hoping for an impact. 

Km Zero - Choose Local Food - YouTube

Or:

Alimenti a km zero: ecosostenibili, economici, equilibrati


Bambina in un orto

L’espressione “prodotti alimentari a km zero”, mutuata dall’anglosassone “food miles”, definisce quella categoria di alimenti per la quale si accorcia o elimina la distanza tra agricoltore e consumatore, con riduzione della produzione di anidride carbonica (CO2) e del costo finale. Tra la campagna e la nostra tavola, gli alimenti subiscono, infatti, numerosissimi passaggi di lavorazione (raccolta, lavaggio, pulitura, primo stoccaggio), confezionamento (spesso dispendioso, a seconda della destinazione finale) e infine, accesso alla Gdo (Grande distribuzione organizzata) che opera attraverso numerosi altri intermediari fino allo scaffale del supermercato. Ciò detto non deve stupire se si stima che, prima di giungere al consumatore, un pasto medio percorre 1.900 km!














Alimenti a km zero: ecosostenibili, economici, equilibrati - Alimentazione bambini Alimentazione bambini

There are interesting issues of translation:
Km zero > locally produced
A chilometro zero | DAILYNTERPRETER.COM

But more and more people are showing interest:
Kilometro zero o kilometro vero?

But, then, you could say that the notion should come easiest to Italians:

Cibo a kilometro zero. Food at zero miles.

orto-fruttaChe vuol dire “cibo chilometri zero”? Questa frase implica che si può vivere molto bene prendendo solo pochi passi nell’orto a raccogliere tutto ciò necessario per mangiare bene. In altre parole, si può sopravvivere e prosperare (e risparmiare soldi), dalla abbondanza del vostro proprio orto! Questa settimana ho vissuto “cibo Km zero”. Quasi tutto che io ho mangiato è venuto direttamente dell’orto: pomodori, melanzane, peperoni, patate, fagioli, basilico, pesche, uva, fichi, mele, vino e anche uova, agnello e pollo!
What do I mean by “food at zero miles” This expression implies that one can live very well by taking just a few steps into the garden to collect all that is needed to eat well. In other words, you can survive and flourish (and save money) from the bounty of your garden that you grow in your own back yard. This week I have lived “food at zero miles”. Everything I have eaten has come directly from the garden: tomatoes, eggplants, peppers, potatoes, beans, basil, peaches, grapes, figs, wine, and even eggs, lamb and chicken.
orto_fichi
Ci sono tantissimi vantaggi per vivere la vita di un contadino! Costa meno: perchè la merce per arrivare al consumatore non deve essere trasportata, imballata e posta su uno scaffale. E’ sostenibile: scegliendo i prodotti a chilometro zero fai risparmiare anche l’ambiente. I prodotti sono più freschi e sani: si mangia solo i prodotti di stagione, naturalmente freschi senza bisogno di conservanti!
There are so many advantages for living the life of a farmer. It costs less: that is because the food doesn’t have to be transported to you, wrapped up and put on the shelf of a supermarket. It is sostainable: choosing produce from your garden saves the environment. Products are fresher and healthier: you eat only the items that are in season, so naturally everything is super fresh and doesn’t need to be preserved.
orto_pepperoni
È bello vivere la vita “cibo chilometri zero”. L’unico lato negativo? Boh! Questo sarebbe i cinghiali che vagano per la campagna e entrano in orti durante la notte per rubare il raccolto! Infatti, durante la notte e durante il giorno qui a Episcopia si sente il rumore delle botte che escono dalle piccole macchinette per spaventare i cinghiali di distanza. Mi piacerebbe vedere uno di loro! Ma si dice che i cinghiali hanno più paura di essere umani che noi abbiamo di loro! Quindi devo prolungare la mia permanenza per vedermene uno!
How great to live life “zero food miles.” It is the life of the farmer. The only downside? Boh! This would have to be the wild boars that roam the countryside and come into gardens during the night to steal the harvest! In fact, during the night and during the day here in Episcopia you hear the sound of little explosions that come from small machines to scare away the wild boar. I’d like to see one of them! But it is said that wild boars are more afraid of being human that we have them! So I guess I’m going to have to extend my stay if I want to catch one of them in the act!
Ecco un piccolo passaggio che ho fatto nell’orto oggi:
Here is a little trip that I took into the garden today:
orto_pomodoriPomodori
orto_basilicoBasilico
orto_barbabietolaBarbabietolaorto_pepperoni2Peperone
orto_gallineGalline
orto_pecoraPecore
orto_cartello
cinghialeSignor Cinghiale! la grande peste!

Cibo a kilometro zero. Food at zero miles. - Studentessa mattaStudentessa matta
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