Day: July 3, 2018

Community-led housing groups can significantly increase the delivery of affordable homes and create a lasting legacy, through a new Community Housing Fund launched by the Housing, Communities and Local Government Secretary of State James Brokenshire on 2 July 2018.

The £163 million fund is available to community-led groups across England to support delivery of new affordable homes up to 31st March 2020.

Specifically, it will expand the housing supply through community led sectors, provide housing that’s affordable for local incomes, and aims to deliver a lasting legacy for the community housing sector through building an effective body of expertise within the housebuilding industry.

Funding outside London is being allocated by Homes England across two phases. A separate programme for London will be delivered by the Greater London Authority. This is in addition to £60 million of funding that has already been allocated directly by Government to 148 councils in December 2016.

Homes England Chief Executive Nick Walkley said:

“Community-led housing is about local people playing a leading role in solving local housing problems to provide affordable homes and strengthen communities in ways that aren’t always possible to achieve through mainstream housing.

“At Homes England, we’re determined to increase the supply of homes across all tenures and increase capacity in the housing sector. This is a really important fund, which will offer lasting impact and we look forward to receiving bids from community groups across England.”

Homes England has been working with leading organisations in the community-led housing sector to shape the new fund.

Tom Chance, Director at the National Community Land Trust Network, said:

“We’re delighted the Government has recognised the vital role community-led housing can play in delivering much-needed affordable housing. It’s the fastest growing new form of housing in the country. The new Community Housing Fund will provide long-lasting opportunities for communities everywhere so they can go out and build the homes they really want and need.”

Bidding is open to a range of organisations. Local authorities or Registered Providers of social housing may apply on behalf of community groups to support them through this process.

Phase one of the Community Housing Fund will support applications for revenue grants to assist community groups with the costs involved in the pre-development stage of community-led housing projects. Local authorities can also bid for revenue funding to support capacity-building activities for community-led groups in their areas.

In addition, local authorities can bid for capital funding for small-scale infrastructure projects, such as roundabouts or pumping stations, to unlock sites that the community can then develop for housing.

Bidding for Phase One of the Fund is now open on a Continuous Market Engagement basis via the Homes England Portal. Bidding will remain open to new applications until funding is fully committed or until 31 December 2019, whichever occurs first.

Further details on the Fund are available in the Prospectus published on Gov.uk.

A second phase of the fund will be launched later this year by Homes England, who will invite bids for capital funding to develop community-led affordable housing schemes.

Ends

For further media information please contact: Shaun Harley in the Homes England press office on 07989 203272 or shaun.harley@homesengland.gov.uk. Or Patsy Cusworth 0796772328 patsy.cusworth@homesengland.gov.uk.

Notes to Editors

In order to ensure that the schemes supported by the Community Housing Fund are truly community-led, proposals should ensure that:

• Meaningful community engagement and consent occurs throughout the development process. The community does not necessarily have to initiate and manage the process, or build the homes themselves, though some may do;
• The local community group or organisation owns, manages or stewards the homes and in a manner of their choosing, and this may be done through a mutually supported arrangement with a Registered Provider that owns the freehold or leasehold for the property; and
• The benefits to the local area and/or specified community must be clearly defined and legally protected in perpetuity.

Bidding is open to all organisations which are, or intend to become, constituted as a body corporate, or an equivalent form of constituted body. Eligible organisations include, but are not restricted to:

• Registered charity;
• Company Limited By Guarantee;
• Community Benefit Society
• Co-operative Society;
• Community Interest Company;
• An organisation of another type operating as a social enterprise and principally reinvesting their surpluses for social benefit;
• Registered Provider of social housing; or
• Local authority.

Local authorities or Registered Providers may apply on behalf of community groups and other organisations and, in those cases, the lead bidding organisation will remain directly accountable for the funds, where appropriate.
For applications not directly submitted by community-led organisations the applicant must demonstrate how the identified community will be engaged in the development proposal and how this will support the objectives of the Fund.

All organisations applying to the Fund will be required to submit details of the proposed activity through the Homes England bidding portal: https://bids.homesengland.org.uk

Homes England is the new housing delivery organisation that has been created to adopt a more commercial approach to respond to the long term housing challenges facing this country. The new, expanded agency will play a far bigger role in investing in supply and intervening in the market to help deliver 300,000 homes a year by the middle of the next decade.

Homes England will act differently from its predecessor, bringing together money, land, expertise and planning and compulsory purchase powers to accelerate the supply of new homes and address affordability issues in areas of highest demand.

Euro Contracts Services Limited was incorporated in 2004 by Shakil Ahmed, 61 from Slough, providing manual labourers to a farm in Hertfordshire.

The company operated much like a recruitment service, where the farm paid a fee for the supply of workers before Euro Contracts Services paid the labourers while taking a percentage for administrative costs.

The first investigation by HMRC into Euro Contracts Services took place in 2009 and they found that the farm labourers had not been paid the national minimum wage, losing out on close to £69,000.

In this instance, Euro Contracts Services paid the correct remuneration to the farm labourers but then deducted the costs of transporting the workers to the farm. This meant their pay packets were below the national minimum wage.

Shakil Ahmed corrected this underpayment but it was not the last time he would cheat his workers as two years later, HMRC carried out another investigation.

This time, HMRC found that between August 2010 and January 2011 Euro Contracts Services had paid 246 employees below the minimum wage to the tune of more than £110,000.

Shakil Ahmed launched an appeal against HMRC’s findings but this was dismissed in the courts. However, unlike last time when Shakil Ahmed corrected the underpayment, the money owed to the workers was not paid, leading HMRC in December 2015 to lodge a claim against Euro Contracts Services to recover the money owed.

Unfortunately, the money remained unpaid and a month before a full hearing had been set for September 2016, Euro Contracts Services entered Creditors Voluntary Liquidation meaning money owed to the employees was not paid.

The Secretary of State has since accepted a disqualification undertaking from Shakil Ahmed after he admitted that he had failed to ensure that Euro Contracts Services Limited complied with its obligations to pay the National Minimum Wage Act. His ban is effective from 22 May 2018 and lasts for seven years.

Dave Elliott, Head of Insolvent Investigations (Midlands & West) for the Insolvency Service said:

The fact that Shakil Ahmed was investigated on two separate occasions, shows that this was not the case of administrative error but a wilful act on his behalf.

Shakil Ahmed fully deserves his ban after cheating his workers out of what was rightfully theirs and this should serve as a warning to other directors that they have a duty to comply with regulations or else be banned from running companies for a long time.

Notes to editors

Director Shakil Ahmed is of Slough and his date of birth is 26/07/1956.

Company Euro Contracts Services Limited (Company Reg no.05192572).

Shakil Ahmed offered an undertaking to the Secretary of State which was accepted on 01 May 2018.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7637 6498

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The Code of Conduct for MPs should be changed to state that outside interests, whether paid or unpaid, should not compromise their principal role as an MP, according to a new report published today by the independent Committee on Standards in Public Life.

Launching the report, Chair of the Committee, Lord (Paul) Bew said:

The evidence we received for this review demonstrates that there is a wide spectrum of views, both amongst the public and MPs, as well as those who regulate standards for MPs. We also heard convincing arguments about the importance of individual MPs retaining the flexibility to perform their roles in the way they choose, and of Parliament being open to a wide a range of people from different backgrounds and professions.

When we last looked at this issue in our report on MPs’ expenses in 2009 (link), the Committee recommended a balance: that MPs should be able to undertake paid employment, providing that these activities remain within reasonable limits, and that there was transparency. At that time, there was consensus between the parties on this settlement but it is regrettable that the recommendations made then have not been fully implemented by Parliament, MPs and Government.

A majority of MPs do not hold remunerated outside interests, and a number of MPs hold outside interests which would be considered within ‘reasonable limits’. However, where a small number of individuals have taken up outside interests beyond what might be considered reasonable, it risks undermining trust in Parliament and Parliamentarians. We are therefore recommending a package of important reforms to address issues concerning MPs’ capacity to fulfil their Parliamentary duties and responsibilities to their constituents and to mitigate the potential for undue influence on our political system.

To demonstrate high standards, Parliament needs to be more transparent with the public about the registration and declaration of interests. The Register of Members’ Financial Interests must be more accessible, searchable and usable. Voters should know what outside interests Parliamentary candidates intend to hold if they are elected. The Code of Conduct for MPs should be clarified to state that any MP’s interests outside the House should not compromise their principal role as MPs. We also recommend that MPs should not undertake outside employment as Parliamentary strategists, advisers or consultants and that the rules on lobbying need to be clearer.

Foremost, MPs themselves should continually demonstrate leadership and integrity, considering how any outside interests might impact on their work in the legislature and be prepared to be fully open and honest with the public about any outside interests they choose to hold.

In line with the Committee’s Code of Practice, the three members of the Committee nominated by the political parties did not take part in formulating the recommendations made in this report. Indeed, they may not necessarily agree with every aspect. We are, however, grateful to our political colleagues for sharing their knowledge and advice on Parliamentary life.

My first report as Chair of this Committee recommended strengthening transparency around lobbying; my final report demonstrates that this continues to be an issue of public concern. As I complete my 5-year term, it is clear that Lord Nolan’s principles remain the cornerstone of ethical standards in public life..

Notes to Editors
1. Interview requests and media enquiries should go to Maggie O’Boyle on 07880 740627.

1. The independent Committee on Standards in Public Life advises the Prime Minister on ethical standards across the whole of public life in the UK. It monitors and reports on issues relating to the standards of conduct of all public office holders.
2. Lord Bew wrote to the Prime Minister on 23 March 2017 outlining the terms of reference for this review. The Committee published a consultation and invited submissions from anyone with an interest in these issues. The Committee held a roundtable discussion, focus groups and commissioned research as part of its evidence-gathering process. Summaries of the roundtable and correspondence received are available online.
3. The current members of the Committee are: Lord (Paul) Bew, Chairman, Rt Hon Dame Margaret Beckett DBE MP (Labour), Simon Hart MP (Conservative), Dr Jane Martin CBE, Dame Shirley Pearce DBE, Jane Ramsey, Monisha Shah and Rt Hon Lord (Andrew) Stunell OBE (Liberal Democrat). In line with the Committee’s Code of Practice the three political members did not take part in the conclusions or recommendations made in this report.
4. You can follow the Committee on twitter @PublicStandards.