Cllr John Clancy

Clancy in pledge to slash £80m from council’s Capita paycheque

Service Birmingham deal an unaffordable 'Rolls-Royce' contract, claims Labour leadership contender


rollsBirmingham Council leadership contender John Clancy has likened the city’s multi-million pound ICT contract with Capita as an expensive “Rolls-Royce” luxury that can no longer be afforded.

Cllr Clancy said he would save up to £80 million by renegotiating the deal, or rip the contract up and offer the work to smaller local firms if Capita could not provide a cheaper service.

He is also promising to raise millions of pounds for public services by selling the council’s interest in the National Exhibition Centre, National Indoor Arena and Birmingham Airport.

Capita has been responsible for revamping the council’s ICT programme and call centre since 2005 and led a business transformation programme through joint venture company Service Birmingham.

The council has to pay Service Birmingham about £120 million a year, a sum that Cllr Clancy argues is out of all proportion with the value of the contract.

In his latest policy pronouncements, Cllr Clancy also pledged:

  • A significant planned programme of asset sales, including disposing of the council’s majority interest in the NEC and minority Birmingham Airport shareholdings to pension funds.
  • To establish a ‘Chamberlain Municipal Bank’ to provide and source community finance, basic services and utilities to Birmingham people where the market fails.

Cllr Clancy will stand against Sir Albert Bore for leadership of the council’s controlling Labour group on May 11. Should he win, he will become council leader.

His pledge to renegotiate the Service Birmingham contract may strike a chord with many Labour councillors who have been critical of the cost and value of the deal. Sir Albert is overseeing talks to cut about £20 million from Capita’s costs, but Cllr Clancy believes the figure is far too unambitious.

Cllr Clancy said: ““We cannot afford to be paying a tenth of our controllable budget in providing ICT and business services to ourselves and remaining schools. We have to decide what we can afford and pay no more.

“Service Birmingham should be forced to re-think and restructure the contract to meet our considerably reduced revenue and start again. Otherwise we should offer it to consortia of local SMEs instead who will undoubtedly be able to provide it within our revenue challenges, and enable us to absorb any exit cost.

“I do not think we can afford to pay any more than £40-50million a year through the Service Birmingham contract. We’ve been paying £120million. This is a Rolls-Royce contract formed in another era and it has to go in its present form.

“Again across the piece the private sector partners and contractors have to get real about our revenue situation. They have to cut their cloth to meet our inevitably new, reduced revenues and needs. We can’t afford to continue subsidising the big-business private sector with outdated, win-win contracts for them.”

He would use a structured sale of the council’s sprawling property portfolio to pay down an £850 million equal pay bill, thereby avoiding additional borrowing costs.

Cllr Clancy said: “We own too many commercial assets. We’ve forgotten why we own most of them. It’s a ridiculous thing for us to own literally billions of pounds of assets. In their present form, I say they have to go.

“We have to re-order our whole council away from such asset owning. We need, instead, to convert them into other assets or spending power in the economy that create housing and jobs.

“If we can use commercial asset sales to pay down £billions in debt, we should do exactly that: we should not be sentimental about which commercial assets we sell. And our current plans don’t go far enough.

“We should own buildings for families, homes and services, not commercial buildings. The NEC & NIA complexes and the Airport might better be owned by Pension Funds who would be happy to buy them.

“While the market is poor for sales, in the short term we should look at using asset-backed securities, placing assets into our very own wealth funds to release investment now in local housing, jobs and the local economy.”

Cllr Clancy said a municipal bank would provide affordable services for “ordinary Brummies” who were being excluded from basic services by the big banks.

He added: “I would look to ensure that our Municipal Bank is able to provide basic and enhanced banking services to Brummies to stop them being financially excluded, and to stop them having to pay more than the rest, especially when it comes to the basics like gas, electricity and water.

“I believe that we should look to provide in a range of other areas where market failure means some of the poorest, or all, Brummies get a bad deal. Municipal banking will lead the way and we will also look to provide insurance and savings.”

Why it may be time to scrap Birmingham council cabinet

Labour leadership challenger John Clancy floats return to committee system


houseJohn Clancy will examine the possibility of scrapping the cabinet in favour of a return to the committee system of local government if he becomes Birmingham City Council leader.

The challenger for the Labour group leadership is promising to establish a commission to decide whether housing, finance and transportation committees, which last operated in 2001, would “be a better way of running the city” by involving many more people in decision making.

It’s believed the suggestion, which has been floated informally with colleagues by Cllr Clancy, has gained a broad measure of support from councillors who feel that the cabinet system inevitably results in decisions being taken by a very small number of politicians.

A clause in the Local Government Act allows councils

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Clancy launches ‘Labour red meat’ campaign to oust Bore

Birmingham council leader faces challenge from his own ranks


John Clancy has launched his campaign to become the leader of Birmingham City Council by promising to add some “red meat” to Labour party policies.

The Quinton councillor will challenge Sir Albert Bore for leadership of the controlling Labour group on Saturday May 11th, and if he wins will become council leader at the annual meeting later in the month.

Cllr Clancy is proposing a huge boost to council house building and would provide free school meals for all primary school children, funded through a major launch of Birmingham bonds.

He insisted his campaign would be about policies not personalities. This is not anti-Albert, he added,

However, Cllr Clancy stated that his aim was to ensure that “Birmingham feels like a Labour-led city again”.

His team has decided against challenging Ian Ward for the deputy leadership, which means that the campaign will focus entirely on the question of who would make the best council leader for Birmingham.

The three policies issued so far by Cllr Clancy, under the banner “An alternative vision for Birmingham” are:

  • A major, accelerated council house building programme funded by city housing bonds.
  • Programme of free breakfast and/or free school meals for all primary school pupils funded in part by social impact bonds.
  • Major council-led Investment in Small and Medium-sized Businesses across all wards in the city through business investment bonds from a Birmingham municipal bank and a remodelled LEP.

Cllr Clancy said he hoped to build 3,000 houses a year with funding from UK pension funds and other institutional investors. “We can’t just sit back and wait for the Government to give us money, we have to go out there and battle for it. Many pension funds are keen to invest in council housing because they see it as a safe long term bet.”

He added: “We have to seek out these funds – we can’t wait for government, the Tory LEP or private construction. We can’t wait for private sector construction to build, either. We need to do it ourselves, and partner with other social housing providers, too, to accelerate massively our existing plans to build homes.”

Commenting on his school meals initiative, Cllr Clancy said: “One of the most effective ways to attack child poverty and improve educational performance, as well as children’s health, is through ensuring every child in this city is well fed in school.

“Blackpool, Islington and Southwark Councils and the Welsh Government’s Primary School Free Breakfast Initiative have led the way. Birmingham should look to commit to this fully over the next three years.

“We can start with all pupils in the 135 primary schools across the city where the need for this is greatest, and look also at secondary schools later.”

He wants the Greater Birmingham and Solihull LEP to concentrate more on assisting small and medium sized businesses rather than helping “big retail and big construction” firms.

He added: ““We have to leave big commerce, big retail, big construction and big business to find their own sources of funds. Instead we need to seek out new sources of finance to invest direct, including taking shares, in small, medium-sized and micro-businesses, and remodel the existing Tory LEP to support them.

“We need to become a city of a thousand trades once more – through 100s of new SMEs and sustaining our existing, endangered SMEs. We need to step in where the banks have failed. Not just in hubs and zones, not just in corridors and belts but in every ward in the city.”

Asked what he felt he could offer, Cllr Clancy said: “I have the political will and the vision to get Birmingham going. It’s a bold vision to stimulate the economy.”

The Clancy campaign is expected to make regular policy announcements over the next three weeks.

Sir Albert Bore has been regularly challenged for the Labour leadership since 1999, once by Cllr Clancy in 2010, and has always managed to hold on. However, the amount of work put into policy formation by Cllr Clancy and his backers suggests that this may be a more interesting challenge than usual.

What would Stalin have done about wheelie bins?

Tory leader hits out at 'dictatorial' Birmingham rubbish collection scheme


stalinOn the subject of words you never thought to hear in the same sentence, how about Stalin and wheelie bins?

Mike Whitby, leader of Birmingham’s Conservative councillors, managed to liken tactics used by the ruthless Soviet leader to those being employed by the city’s Labour administration when consulting about the introduction of wheeled bins.

Whitby’s point was that the consultation exercise contained all sorts of questions about the type of bin residents might like and the size of household, and whether recycling was a good thing, but didn’t actually ask people whether they wanted wheelie bins.

The questionnaire also managed to ask respondents whether they were gay, bisexual, transgender as well as wishing to know about religious beliefs. Just the sort of questions Stalin might have posed.

On a more serious note, the Edgbaston District Committee turned out to be cult viewing for anyone interested in what the Tories would have us believe is one of the great issues of our time.

All of the key bin-saga figures were there.

James McKay, the Labour cabinet member responsible for

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Mayday, Mayday….seconds out for Birmingham council leadership election

Clancy to tackle Bore on markets, bins and support for 'Tory LEP'


lifebeltWe are less than two months away from a significant moment for Birmingham politics – the day when 78 privileged people get to choose the leader of the city council.

Labour councillors will hold their annual meeting at the beginning of May, and the first item of business is to elect a leader for the forthcoming year.

It is hardly a secret that Quinton councillor John Clancy is on course to challenge Sir Albert Bore for the position of Labour leader, and therefore leader of the largest local authority in the UK. Clancy is understood to be close to naming his running mate, who will challenge Ian Ward for the deputy leadership.

There’s an amusing irony that the fate of Sir Albert, accused of acting in the manner of an all-powerful mayor, lies in the hands of a small number of councillors. He only has to get 40 people on his side, although anything less than 60 will surely be seen as a damning indictment.

Of course, if Birmingham had a directly elected mayor he or she would face an electorate of 750,000 potential voters, which might give Sir Albert rather more of a headache.

Cllr Clancy has been very careful to play by the rules of the game.

He’s not criticised Sir Albert by name, although he certainly has by implication, and made sure that he informed chief whip Mike Leddy before publishing an outspoken attack about the decision to move the wholesale markets out of the city centre.

One can only imagine the reaction of former shop steward Cllr Leddy upon reading Clancy’s polemic condemning the markets move as a “momentous, colossal mistake” which exposed a “fundamental disconnection in policy between the council’s leadership and where this city needs to develop”.

Was it rigorous debate, or outright disloyalty? The Labour Party is a broad church, but in common with all political movements it prefers to wash its dirty linen in private and there is a fine line between passionate argument and treachery.

Yes, Clancy included a caveat that the disconnect involved council leadership of “any recent political colour”, but there could be only one person directly in the line of his fire and that is Sir Albert Bore who as council leader ultimately approved the markets relocation.

Making certain that readers got the gist of his comments, Cllr Clancy added a few more gems: “We are going backwards to a world which has already inflicted great damage to this city.

“We have crossed a dangerous line by kicking out from the city centre what to me is the epitome of the city’s proud history.”

There then followed criticism of the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP), which Cllr Clancy views as a “Tory body” doing the Government’s bidding, using public money to import a few more high-rise office blocks and ubiquitous chain stores into Birmingham city centre rather than the kind of independent shops and factories making things to sell that people really want.

Clancy concluded with a withering attack on LEP finances and the city centre enterprise zone, which have been approved by the cabinet and Sir Albert Bore: “The council can willingly and blithely still authorise itself (on behalf of the government’s LEP) to put the city council taxpayers at risk by borrowing on their behalf £125million to develop infrastructure and buildings in the heart of the city designed to bring forward massive buildings of commercial property consisting mainly of A1 office buildings.

“There is no guarantee of this scheme’s likely success – it’s a punt on commercial property and associated business and no more.”

This kind of thing will be instantly familiar to veterans of past council leadership challenges. The case against Sir Albert has been presented on a regular basis since 1999, and it always boils down to the same allegations of arrogance and cavalier disregard of the majority view of the Labour group.

And as often as the challenges come along, Sir Albert regularly survives and sends his opponents packing. Personally, I would be staggered if Cllr Clancy is elected leader and whoever his running mate turns out to be gets the deputy leader slot in May.

But you never know. It could happen. And no one should be in any doubt about the wholesale massacre that would follow, with most cabinet members and many scrutiny chairs losing their jobs to be replaced by the backers of Clancy and his deputy.

Sunday’s announcement by Lord Heseltine and Sir Albert Bore, that the Government is likely to push money the way of the Project via the LEP, could play into Clancy’s hands. He will highlight concerns about the accountability of the LEP, a point also made recently by former MP and failed mayoral campaigner Sion Simon.

The basic question that Clancy will be asking his Labour comrades is: “How far should we engage with the Tory LEP?” Sir Albert, presumably, will claim that the LEP and its focus on regional government through big business is the only game in town.

Team Clancy will play the mayoral ticket, as in the claim that Sir Albert is acting imperiously in the manner of an elected mayor rather than that of a council leader, who they believe should be consulting over policy and carrying out the wishes of Labour councillors.

Spectacular rows at Labour group meetings recently have included the markets issue, a move to charge for collection of garden refuse, the switch to wheelie bins, and the refusal to find the relatively tiny sum of £8 million to continue paying council tax benefit at 100 per cent for low income claimants.

Cllr Clancy’s backers may even imply that Albert Bore, fast approaching pensionable age and in his second spell as leader, is a little bit past it and is simply making one tactical error after another. They will suggest he panicked when faced by huge Government cash cuts and is slashing services at the drop of a hat before the true extent of the council’s financial difficulties becomes apparent.

And in a month-long campaign, Cllr Clancy and his supporters will also highlight Service Birmingham, the Capita-led ICT joint venture company which has contracts worth £1 billion with the council. It’s claimed that about £120 million of public money is syphoned off to Service Birmingham each year, compared to initial estimates of about £55 million when the arrangement was first approved eight years ago.

It will be claimed that costs could be slashed by bringing ICT services back in-house, thereby releasing more money to prop up front-line services. Indeed, investigating the cost of scrapping the council’s contracts with Capita is probably the first thing that a Clancy-led administration would do if the revolution really does materialise on May 11.

 
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