Birmingham bankrupt

[BrianW]

A hardy annual in the Manchester Afternoon News is people complaining about Piccadilly Gardens and saying how much better it was when it was literally a garden.

So it was, but the labour costs of keeping it a showpiece were huge.

In this country, everyone wants European levels of public services for USA levels of tax. Thatcher and her shower persuaded them this was possible (that it could all be done by 'cutting waste'.) This was bollocks then, and it's still bollocks.

 

[bluethrunthru]

14 years of austerity

Councils in crisis: Town Hall debt levels staggering, MPs warn

The Public Accounts Committee warns of an "extreme and long-lasting effect" on public services.

www.bbc.co.uk

 

[Corky]

14 years of austerity

Councils in crisis: Town Hall debt levels staggering, MPs warn

The Public Accounts Committee warns of an "extreme and long-lasting effect" on public services.

www.bbc.co.uk

It says most of that borrowing is from the PWLB, which is normally for long term projects that generate an income under GPoC. It doesn't mean they are skint, for that they need to look at reserves.

There are barmy ones is where they have invested in risky businesses and lost it, which is very rare, most invest in housing companies and shopping centres etc.

 

[Vic]

It says most of that borrowing is from the PWLB, which is normally for long term projects that generate an income under GPoC. It doesn't mean they are skint, for that they need to look at reserves.

There are barmy ones is where they have invested in risky businesses and lost it, which is very rare, most invest in housing companies and shopping centres etc.

Is your mortgage a debt or is your house an asset? Both.

The daft thing is that so long as there is some security behind the investments, it makes sense to acquire more investments so that a more diverse portfolio means any bad investment can be offset against good ones. The alternative was just to leave reserves in the bank at low interest rates and lose value against inflation.

The Tory shtick is now to point to falling commercial property values, but that's largely down to their mismanagement of the economy (tenants can't afford to borrow). Councils may have to choose between borrowing to invest in their own town's regeneration or just letting shopping centres decline (and losing the business rates).

Wherever you look it's Tory policy that's the problem. Councils' housing stock transferred to Housing Associations, and councils were prevented from building new. But, until the government reined it in, a council could borrow from the government (public works loan board) at 1% interest, lend the same money at 2% interest to HAs to build new affordable homes, so the council got new homes and a profit on the lending, and if the HA did go bust, the council got the new houses (security on the loan).

As the article says, Pickles told councils to be more "commercial" to offset cuts in grants, even though they're saying now they didn't mean that sort of commercial.

 

[Corky]

Is your mortgage a debt or is your house an asset? Both.

The daft thing is that so long as there is some security behind the investments, it makes sense to acquire more investments so that a more diverse portfolio means any bad investment can be offset against good ones. The alternative was just to leave reserves in the bank at low interest rates and lose value against inflation.

The Tory shtick is now to point to falling commercial property values, but that's largely down to their mismanagement of the economy (tenants can't afford to borrow). Councils may have to choose between borrowing to invest in their own town's regeneration or just letting shopping centres decline (and losing the business rates).

Wherever you look it's Tory policy that's the problem. Councils' housing stock transferred to Housing Associations, and councils were prevented from building new. But, until the government reined it in, a council could borrow from the government (public works loan board) at 1% interest, lend the same money at 2% interest to HAs to build new affordable homes, so the council got new homes and a profit on the lending, and if the HA did go bust, the council got the new houses (security on the loan).

As the article says, Pickles told councils to be more "commercial" to offset cuts in grants, even though they're saying now they didn't mean that sort of commercial.

The 1% extra on the PWLB rate was mandatory to add on for state aid rules if you were then lending to some Joint Venture company with an RP.

Stock transfer was a con by lazy Councils, and usually to meet the Decent Homes Standard as the excuse. It was normally someone at the Council who became CEx of the new company. They didn't have to do it, and could retain stock under an ALMO, like Wigan, Bury, Stockport and the North Manchester stock all Council owned. A Council couldn't borrow against its rental income, but an ALMO could as long as it got a 3 star rating at the time, and they needed that funding to meet the standard, which was a 2010 target. The HRA Borrowing Cap was lifted about 6 years ago, and you have seen Councils bring back housing stock under their direct control since if an ALMO, however with LSVTs it is gone for good.

 

[bluethrunthru]

cry me a tucking river Tories - no cry me a river in a sports hall on Election Night when you are totally humiliated although I understand that depends on whether you have the backbone to stand for relection you pussies

More than 40 Tory MPs call for extra council funding

In a letter to the PM, the group warns of cuts to services without extra money for English councils.

www.bbc.co.uk

 

[ChicagoBlue]

A hardy annual in the Manchester Afternoon News is people complaining about Piccadilly Gardens and saying how much better it was when it was literally a garden.

So it was, but the labour costs of keeping it a showpiece were huge.

In this country, everyone wants European levels of public services for USA levels of tax. Thatcher and her shower persuaded them this was possible (that it could all be done by 'cutting waste'.) This was bollocks then, and it's still bollocks.

The American “lower taxes” drive is all part of a “starve the beast” model, but they just don’t mention “the beast” is your services and government assistance!

Like the right wing signs that say “KEEP GOVT OUT OF MY MEDICARE,” which is a federal, tax-based, program!

YCMIU!

The answer, of course, is to make the whole Piccadilly Gardens - Market Street - St Ann’s Sq - Deansgate complex an attractive pedestrian area.

The problem is it’s Manchester and the area would need to be clean, tidy and well policed. Quandary.

Scrotes have made it the way it is, so who has the balls to clean that shit up and keep it that way? NOBODY!

 

[I'm With Stupid]

In this country, everyone wants European levels of public services for USA levels of tax. Thatcher and her shower persuaded them this was possible (that it could all be done by 'cutting waste'.) This was bollocks then, and it's still bollocks.

The other classic being "if we cut taxes, we'll actually bring in more revenue in total."

 

[salfordbluetrue]

Well FFP worked them, perhaps they should sue.

 

[ChicagoBlue]

The other classic being "if we cut taxes, we'll actually bring in more revenue in total."

Ah, The Laffer Curve!

CAN work in a perfect, theoretical, economic world. Too bad we don’t live there!

Without economic growth, with the increasing tax revenues it generates, the offset of rates to revenues is impossible to both quantify and, more importantly, collect!