John Redwood's Diary
Incisive and topical campaigns and commentary on today's issues and tomorrow's problems. Promoted by John Redwood 152 Grosvenor Road SW1V 3JL

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Taxing development

The government wants to speed more housebuilding, but it also wants to tax development. It proposes a new infrastructure tax to replace the existing system.

It is true the gap between land values with permission to build homes and land values for land without any building  permission is huge. It is also true the wider community incurs large costs from more housebuilding. There needs to be more schools , surgeries, roads, power lines, broadband cables and the rest. All parties have accepted the idea that there should be some infrastructure levy or contribution to public sector infrastructure costs, just as securing private sector services may entail direct payments to the service providers. The government does not mention the need for compensation payments to existing homeowners, though there are clear cases where the amenity and value of their property is hit by more traffic and noise, worse views etc. Developers who want speedy progress sometimes offer compensation to reduce opposition to a scheme.

The Section 106 payments system has been a  negotiation between Councils and developers. Many Councils have wanted to take the money to build more homes for rent instead of using the money to build the roads, schools and surgeries needed. The sums have expanded to try to accommodate  both needs. The government has also introduced an additional Infrastructure levy.

The new levy proposed is only set out in  outline. It is national with maybe a single national rate or rates. It might also have regional or local variations. It seeks to flex according to land and home prices, allowing developers to make a given margin  before the levy kicks in. In  falling markets the levy would fall and in rising markets it would rise. That is a sensible feature.

I would urge simplicity and suggest a per house levy to cover the obvious public sector infrastructure costs. The government wishes to increase this tax, which will make achieving more home building more difficult.

Given that many people want fewer new homes with reduced migration, what do you think would be sensible by way of a tax on new developments?

Levelling up needs the schools back

During the long lock downs some pupils have been able to benefit from a full timetable of on line lessons and lectures, and to have home work marked over the internet by engaged teachers. I praise all those teachers and schools that adapted and did a good job ensuring their students did not go without education.

Other schools provided childcare and maybe some education for the children of key workers but delivered little for the rest. Some managed work assignments for homeworking. It meant the gap started to get bigger again between those who had the advantage of a full timetable of lessons and those who did not.

Some schools in the private sector did decide they had to deliver a full timetable and challenging home coursework, as the parents expected something for the fees they were paying. The danger is the response to CV 19 has increased the gap between some in the private sector that got a good education during the lockdowns, and some in the state sector who got little by way of teaching. That is not going to help the government with its good aim of levelling up.

The government made clear it would assist in supplying digital devices so pupils in households where on line access was a problem would be helped. As schools prepare for the return in September they need to look at how they can best meet the need for every pupil to have the benefit of good lessons and marked homework for the older pupils.

Teachers rightly tell us they want to teach and believe the daily contact between pupil and teacher is an important part of growing up and gaining skills for life. The way in which each school meets the demands on it and looks after its pupils is mainly a matter for school and local determination. Teachers are valued professionals, and we look forward to seeing their solutions for this autumn as pupils go back to school. It is most important we level up, which does require us to deliver the best possible education to those from difficult backgrounds. We may also be able to use more of the digital technology in developing those crucial relationships.

Exam results

There may be a row in England, as there has been in Scotland, over this summer’s GCSE and A level results.

The first thing to stress is the award of grades to students has nothing to do with Ministers and the government. Normally students take exams set by independent Examining bodies, advised and moderated by teachers, with all the work marked by teachers. The Exam body then awards grades based on the marks awarded, seeking to moderate standards between years. Ministers rightly do not get a say in any individual’s papers or marks, or in the decision each year on where to set the grade boundaries.

This year the decision was taken to abandon exams but to award grades and passes based primarily on teacher assessment of the individual’s course work and achievements at school in each subject. The Exam Boards will still moderate the results fed to them by each of the participating schools. There are issues over how this will be done.

If all worked well each school would come to a perfect judgement of each pupil it teaches, and across England this would produce a fair set of outcomes without moderation or adjustment. However, life is not that simple. The Examining Boards want the schools to ensure they have placed all their pupils in the right relative order to each other, reserving to themselves the ultimate right to decide how marks translate to grades awarded by the Examining Board. The Examining Boards are alert to the possibility that teachers will naturally see the best in their own pupils and might collectively mark up producing some grade inflation compared to previous years. They need , however, to be alert to other possibilities as well. For any individual pupil there is the danger of adverse marking if they planned to leave much of their study and revision to close to the exam and did not do so well in the early months of the course, or if their conduct and attitudes did not lead the teacher to see their academic strengths fully.

The toughest cases are for schools or subject teachers who are lifting standards year by year or lifting them for the first time this year who may encounter a general downgrade of their forecast results owing to the Exam Board wishing to moderate grades in relation to past experience at that school. There is also the unspoken danger that a school or subject area on the slide will secure more favourable outcomes than if their pupils had had to undertake the exam. The Independent Regulator is also involved in requiring Exam Boards to moderate standards.

Most people would agree it is better and fairer to let pupils sit exams and to have these marked by teachers at other schools to a prescribed marking scheme. In this CV 19 damaged year all involved will doubtless do the best they can to come to fair judgements, but there is likely to be more unhappiness both by some individuals and by some individual schools and teachers given the occasional rough justice which will be delivered. The good news is a student can appeal and can ask to sit a proper exam to improve their grade.

Letter to the Health Secretary

I would like to follow up on my questions to you concerning the search for treatments that help CV 19 patients. You rightly replied that a number were in clinical research under your Recovery Trial, as well as with the WHO’s Solidarity trial and elsewhere. It was good news that  Dexamethasone was shown to have helpful effects for some serious cases.

How are the trials both in the UK and abroad going for

1. Other immune moderators and Interferons?

2. Anti virals including Remdesivir and Hydroxychloroquine?

3. Anti coagulants?

4. Convalescent plasma?

5. Vitamins C and D? 6. Nitric Oxide, zinc and Ozone?

Some of these treatments some doctors say  might be best used in the early stages to prevent the disease taking hold , and some may have beneficial effects in serious cases needing oxygen treatment, as with Dexamethasone. Clearly finding more ways of combatting the different features of the serious versions of the pandemic would be of great help in taming it.

Your stated policy of getting the NHS back to work on everything not related to CV 19 is now crucial. New contracts with the private health Sector should be based solely on buying stated procedures, treatments and operations for patients on the NHS waiting list. Buying capacity with no known patient in mind will be wasteful and will not incentivise the NHS to use the private capacity fully, as we saw during lock down.

It is also important that the policy of handling CV 19 cases in isolation hospitals or in clearly sealed off units in District General hospitals is properly enforced and advertised so patients are not put off attending surgeries, clinics and hospitals to have other serious conditions treated. With best wishes to you in getting the NHS fully back to work after the heroic efforts made by some to tackle the dangerous and difficult CV 19 surge.

Stopping illegal migration

As there is great support from many writing in for this, why not set out  your proposals  for the Home Secretary in your postings as she clearly shares this aim.

I have raised this issue several times in the Commons, on this site and elsewhere. I have proposed a more intense police operation against people traffickers, and new UK  asylum legislation which makes clear all EU continental countries are safe countries and the Dublin Convention should therefore be applied by our courts.

The new Planning system

Let us welcome the idea of a simple map setting out general uses for land in each designated area of a Local Plan. Let us also agree the government needs to cut inward migration and prevent people trafficking.

The government suggests 3 categories on a map. One is Growth, the second is Renewal and the third is Protection.  Growth implies more or less any development is fine in principle, though subject to design and density requirements to be set in the Local Plan. Renewal we are told implies rebuild, change of use or some “gentle densification”. Protection implies keeping areas green with little or no building.

Maybe the government should look at three other use categories instead. They could demark land for housing, land for commercial development be it retail or industrial estate, and land for green gaps, farming and outdoor leisure for sports fields and other green spaces. I am all in favour of eroding the current complex uses classes and allowing greater freedom for building owners to flex from retail to homes or to industry. There do need to be special controls on the location of industrial businesses or leisure businesses that create noise or other nuisance, so they do not conflict with housing areas. Adjusting their categories, they could make it clear Growth includes employment sites as well as housing sites, whilst Renewal might like to stay more in keeping with current uses and styles of development.

The big issue to be resolved is the process of forming the Map, and the extent to which local wishes will be fully reflected in the results. The present system is deeply distrusted and disliked for the simple reason that the compromise which is a local Plan is soon broken by appeal decisions, forcing fast growing communities to absorb more housing development than they wanted. In communities that lack growth and investment the same process fails to lift the area to attract the new people and new investment they need to boost living standards and enterprise.

There is enthusiasm for levelling up both in  the fast growth areas suffering from too much building, and in  the slow and no growth areas desperate for new investment. How will this new system level up? What does it bring to the areas without investment that will drive a better distribution of building around the country? The government needs to make sure this is not just a new variant of systems to increase the pace of housebuilding in areas that are already relatively well off.

The Planning White Paper – the faults of the current system

There is much to support  in the Planning White Paper. I have long advocated a map based approach where each area designates which places are to be green space or farms, which can be developed for housing and which have general commercial use. Speedier decisions, Local Plans only one third of the current length and a simpler approach to an Infrastructure levy or contribution on  developers are all welcome.

The present system is complex, expensive and frustrating to developers and local communities alike. It often does not allow a local community to protect areas from housing development  if they are not specially designated as Green belt or SSSIs. Whatever the Local Plan says, determined and well funded developers hire expensive lawyers and keep on with appeals and changed submissions until on national appeal they overturn the local Plan and get their way with a further planning permission. Developers have to allow for  many years of battles, have to pay  big fees to planning consultants and lawyers and enter a variable negotiation over developer contribution.

Local Councillors often are dragged from seeking to protect a piece of land from development which is not designated for development in their approved local plan, by the appeals process. They seek a deal with a determined developer on the advice of their planning officers. They are told if they do not do a deal the Council will lose out on a Section 106 Developer Contribution Agreement, as they will lose on  appeal and one may  not be awarded. They are also told they may land the Council with large planning and legal fees trying to defend their local plan, only to lose and have to explain why they wasted all that money.

The Councillors who give in then become very unpopular with the local community who sometimes suggest unreasonable collaboration with the developer, when in most cases it is the run of official advice and the likelihood of loss in  the system that causes the about face. The local community wants the Council to defend green spaces and keep local communities apart from continuous urban sprawl.

The government wishes to hit high targets for future housebuilding. As the White Paper acknowledges, the problem is often poor build rates despite large numbers of outstanding planning permissions. Landowners and developers can game the current system by building slowly on  land with approvals in order to persuade Planning  Inspectors to allow more planning permissions where the local community wants to keep green space. The government should also as part of  this policy exercise improve its control of our borders and set a sustainable figure for economic migrants as past Conservative governments did or promised to do, to ease some of the development pressures.

In future blogs I will look at more of the detail of the proposals in  the White Paper in preparation for putting in my response to this consultation document. I look forward to hearing from constituents in particular about how this might affect us in Wokingham and West Berkshire.

Rescuing the health sector

The last figures for UK output and incomes from the ONS take us to end May. They revealed an 18.9% drop in service activity in the 3 months to end May. Unsurprisingly  eating and drinking out and the motor trade led the falls, given the lock down impact. Less  predictably the other two sectors the ONS singled out as the main drivers of the collapse were health and education, down 31.4% and 37.8% respectively. Many other private sector service areas had much smaller declines thanks to working from home, using remote technology and identifying key workers to keep the service going.

Getting health and education back to where they were should be a priority now. Ministers have said they want the full range of treatments to be available again on  the NHS, and to see the backlog of delayed operations and treatments being tackled. So far the NHS has struggled to get back to anything like the capacity before the virus. It has also been unable to fill the private hospitals contracted to support it.

It is now policy to either have isolation hospitals for CV 19 or to have isolated and sealed  parts of hospitals to contain CV 19 patients and those helping them. This should enable normal infection control procedures to resume for all the other work the NHS does. Some of the shortfall in  work has been patients reluctant to attend medical centres and hospitals for fear of catching the virus when they already belong to an at risk group. The isolation strategy needs to reassure them.

Remote technology has allowed many private sector services to continue as before, substituting remote communication for the previous client and customer contact that was common. The NHS is learning to use this technology for primary care and for consultations with hospital doctors. Where treatment needs contact in a hospital between staff and patient then the hospitals have expertise in infection  control and the staff must have access to high quality protective clothing and equipment.

The private sector is still willing to offer capacity to the NHS to help with the backlog. This coupled with the extra money made available for CV19, winter pressures and other issues should enable the health sector to recover more quickly.
It is important the government defends the proposition that choice is an important driver of innovation and Quality. Private hospitals can offer good service and extra capacity which the NHS buys into when it needs to.

Emergency assistance grants to local Councils to help those in need

West Berkshire is receiving £103,352 and Wokingham £77,342 to make grants to people struggling with food bills and the cost of other essentials.

Payments under this scheme can be made to those already  in receipt of normal social security payments, and getting help from the Covid Summer Food fund.

The government is determined no-one need go hungry, and leaves it to Councils to use their skills and knowledge of local deprivation to distribute money where needed.

Reviewing the extent of the state

Government activity has expanded massively as a result of the decision to lock down the country to combat the virus. It is time to roll back many of these areas to bring budgets back towards balance after a huge borrowing splurge.

 9 million people are now effectively additional employees of the state thanks to the Furlough scheme. Most of their wages are paid by taxpayers with the express requirement that they must not work for their employers whilst being so paid.  It is important as the government  has indicated that rapid progress is now made with getting these people back into full time or part time working with their employer, to save the jobs and slash the costs to government.

The state has paid to control the workload and actions of the private health sector. During the height of the crisis there was an understandable surge in NHS spending, but there was also a drop in health output.  Most private sector medicine stopped altogether, and most  non urgent treatments stopped in the NHS. As a result health GDP fell. We need to get health output up to at least the levels it was at in January, and return to a system where private money as well as public comes  in  to cover the costs.

There are also an number of other areas where the state procured resources and capacity by contract to deal with the emergency, where it could now review those contracts, save some money and free capacity for others.

The state has taken upon itself paying to sustain  the full level of costs of public transport when it was carrying three or four times as many people as it is today.  There needs to be some thought of what demand for the next two or three years is likely to be and what level of fare revenue is likely. It would be unrealistic to carry on recruiting people to the railway for example when the forecast demand is going to be so much lower than last year. Current loss levels are unsustainable for any length of time, and thought needs to be given to a pathway for winning back lost passengers.