Weekly summary - 17 December 2010

This week's edition of Hinterland keeps pace with the challenges facing local government - reductions in spending power, the localism bill - and rural residents - bank accounts, access to healthcare and transport issues.

    It is also festive with a feature on whether or not it will be a White Christmas and a condition called "hangoverville" (see 'and finally').

    As this will be the last edition of 2010, I want to thank you all for your support over the past year and wish you a Merry Christmas. Hinterland will be back during the week commencing Monday 3 January.

Ivan Annibal
ivan.annibal@roseregeneration.co.uk

Core funding being cut
by 12.1%, say councils
(Link: BBC Online, 13 December)
On 13 December, Communities Secretary Eric Pickles made a statement to MPs on finance for local authorities covering the period 2011 to 2013.
    This included a reassurance that no authority would face more than an 8.9% reduction in spending power during this period - with the average reduction in spending power for 2011-2012 set at 4.4% (through transferring an additional £30 million from CLGs budget to local authorities).
    Baroness Margaret Eaton, chairman of the Local Government Association, described the figures as "the toughest local government finance settlement in living memory. A few councils have seen a reduction in the money they receive from the Government of up to 17% in the first year. As a result councils face a total funding shortfall of £6.5 billion over the next year."
    At the Rural Services Network, Dan Bates has analysed the rural implications of the funding formula. This shows that rural districts face larger funding reductions in 2011-2012 compared with urban authorities: an average reduction of 15.87% for rural-50 authorities and 15.67% for significantly rural authorities (compared to the average figure of 15.6%).
    Indeed, West Somerset District Council's Leader, Tim Taylor, described their settlement as "shocking" and a "huge hit" that could lead to the closure of the authority.
    On the same day, Eric Pickles unveiled the Localism Bill. This includes greater powers for local people to hold their local authorities to account and to shape their local area through a new right to challenge to take over services; a new right to bid to buy assets of community value such as libraries, public houses and shops; and a new right to veto excessive council tax rises through a referendum.
    With a move towards ending grant ring-fencing and greater freedoms for communities, Mr Pickles hopes councils will use their initiative and creativity to improve service delivery. For those of us who work on the frontline of service delivery, and are already creative and imaginative in how we deliver services, to what extent we can continue to deliver more for even less will inevitably lead to more cuts or closures in services.
    The Rural Services Network remains committed to representing the case for a better deal for rural service provision in the difficult times ahead.
State-controlled banks may need
more public funds, warns NAO
(Link: The Guardian, 15 December)
This article announces that taxpayers may need to pour billions more into bailed out banks before the government can start to sell its shares in them.
    A report by the National Audit Office describes how the scale of the support currently provided to UK banks may have fallen from a peak of £955 billion to £512 billion but the amount of cash currently borrowed by the Government to support banks has risen by £7 billion since December 2009.
    The report comes at a time when plans to set up a new state-backed Post Office Bank have been axed because it would be too expensive and time consuming. Although many current account holders can indeed access their money through the Post Office network; what does this mean for the 300,000 people in rural areas who do not have a bank account?
Subsidies to jump start
UK green car revolution

Transport Secretary Philip Hammond and Business Minister Mark Prisk want to make 2011 the "year of the electric car". To increase the take-up of electric and ultra-low carbon vehicles, from the New Year buyers will be able to claim up to one-quarter of the price of nine models of car. This is part of a 4-year £400 million scheme where those seeking to purchase the eligible cars will qualify for grants of up to £5,000.

    Alongside this, the Government is encouraging the creation of a network of electric vehicle recharging points - with the successful bidding consortia based in the Midlands, Greater Manchester, East of England, Scotland and Northern Ireland. I now look forward to seeing how Defra will support economic growth in rural areas by "investigating options available to help those in remote rural areas with the cost of fuel" (as set out in their Structural Reform Plan).

    Many RSN Members have already documented successful transport schemes, including walking and cycling paths, taxi-buses, Wheels to Work (W2W) and park and ride schemes and how these overlap with car ownership. The success of such schemes is led in part by their operation across geographic boundaries and because they are demand led and responsive.  More information about the electric car grant scheme is available on the Department of Transport's website here.

NHS should not operate on varicose
veins to save money: report
(Link: Daily Telegraph, 15 December)
This article highlights a report published by the NHS Confederation, a charity which represents health service organisations. The report, Clinical responses to the downturn, looks at how NHS resources can be released whilst maintaining and enhancing clinical quality. The answers apparently lie in tackling issues with referrals, discharge, follow-up, procedures of low or questionable value, workforce profiles, commissioning, waste and productivity.
    In practice, some of the recommendations would mean operating theatres being used until 7pm instead of 4pm; throwing away fewer surgical instruments; discharging premature babies earlier and stopping surgical procedures for minor conditions such as varicose veins. With the Health Secretary Andrew Lansley pressing ahead to make £20 billion of savings in the next four years, and GPs being given greater powers to buy care for their patients, what this means for the healthcare of rural residents is yet to emerge.
    Meeting the health and well-being needs of rural residents requires a joined-up approach where as many services as possible are delivered locally - from 'First Responder Teams' and the ambulance service, to hospitals, GP surgeries and dental practices. With this comes a specific set of challenges around providing (Government/public) funding for effective out of hours GP services, maintenance of community hospitals, air ambulance services and dispensaries in GP surgeries. It will be interesting to see to what extent this approach is deliverable in these austere times. 
White Christmas likely as forecasters predict return of Arctic weather to UK
(Link: The Independent, 15 December)
The nationwide gamble on a white Christmas shows no sign of slowing with some forecasters predicting a good chance of the cold weather persisting for the rest of December and an increased chance of snowflakes falling on Christmas Day itself.
    The bookmakers William Hill have cut odds against a white Christmas everywhere: Aberdeen is at 9/4; followed by Edinburgh, Glasgow and Newcastle at 3/1; and Leeds, Liverpool and London at 4/1. In last week's Hinterland I highlighted the cancellation of the Lincoln Christmas Market, a 4-day event which usually generates £10m for the local economy. This piece in the Guardian illuminates broader socio-economic impacts of the continuing unsettled weather across the country.
    Rail companies are preparing to use de-icing 'ghost trains' to keep the network running; Royal Mail is to spend an extra £20m on speeding up the Christmas mail and retailers are reporting disappointing sales figures compounded by some, especially in Scotland, having to suspend home deliveries due to the treacherous weather. In my experience, this demonstrates the informal support networks that exist in rural communities, including the Big Rural Society.  
Consultations

Simple financial products - HM Treasury
The government wants views from all interested parties - including the financial services industry and consumers themselves - on how simple products can best be developed and implemented, what the challenges such an initiative would present and how these can be overcome. The intention is to help people to choose the right financial services product for their needs and be able to trust the market to give them a fair deal. Closes 25 March 2011.

Draft Sustainable Development Guidance for Local Flood Authorities - Defra
This consultation invites views on our draft sustainable development guidance for Local Flood Authorities. Section 27 of the Flood and Water Management Act 2010 states that a lead local flood authority, district council, internal drainage board or highways authority must aim to make a contribution towards the achievement of sustainable development when exercising a flood or coastal erosion risk management function.  The Act requires the Secretary of State to issue guidance about how authorities are to discharge this duty. This draft guidance has been developed for that purpose. Closes 16 Feb 2011.

Skills conditionality - DWP & BIS
The Department for Work and Pensions (DWP) and Department for Business, Innovation and Skills (BIS) are seeking views to inform the implementation of Skills Conditionality. This involves Jobcentre Plus referring claimants to a skills training provider, further education college or next step advisor with potential benefit sanctions for non-participation. DWP and BIS are looking to hear from Local Authorities, welfare to work providers and other national bodies with an interest in skills, including the voluntary sector and local partnerships. Closes 3 Feb 2011.

A Long-Term Focus for Corporate Britain: A Call for Evidence - BIS
Let's make sure there are some rural responses to this. On 25 October, Business Secretary Vince Cable launched the first stage of a review into corporate governance and economic short-termism by issuing a call for evidence.
    The review aims to establish whether there are further issues affecting the functioning of capital markets and, if so, what are the causes. It considers the role of directors and shareholders and asks fundamental questions; for example, about shareholder engagement, market short-termism and the functioning of the investment chain in the UK.
    It also considers directors' remuneration and - following up the Takeover Panel's recent announcement - the economic case for takeovers. Closes 14 Jan 2011.

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The Rural Services Network - working with Knight Frank

Knight Frank is RSN's property partner and specialises in helping the Public Sector maximise the value of its rural property portfolios. This is particularly important at a time when budgets are under immense pressure.
    Because we are the only Office of Government Commerce (OGC) approved rural property consultancy, we can provide immediate strategic advice if needed. Our specialisms include strategic asset reviews, Landlord and Tenant compliance assessments, enhancing capital and revenue positions and full or partial management.
    For a no obligation discussion, please contact rsn@knightfrank.com. To find out more about our services, please look at our website.
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And finally...
The science of your hangover
The Independent, 15 December
This article is all about "hangoverville".  Did you know that one 250ml glass of wine (or other alcohol) causes the body to expel 800 to 1,000ml of water (that's four times as much liquid lost as gained)? And that darker drinks (i.e., red wine and whisky) contain higher levels of toxins than white wine and clear spirits?
    For those of you who may end up a little bit tipsy over the festive period, hints and tips include drinking plenty of water; taking ingredients such as milk thistle, guava leaf and ginseng; and eating eggs, bananas and kiwi fruit (although not all at the same time!) Apparently you should avoid coffee at all costs as it dehydrates you and prolongs the symptoms!
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Hinterland is an exclusive weekly service offering a rural perspective on national news events from the past week.

It is provided by the Rural Services Network - a national network devoted to safeguarding and improving services in rural communities across England.

We are the only national network focusing specifically on this vital aspect of rural life.
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