Latest news with #PaulKohler
Epoch Times
15-05-2025
- Business
- Epoch Times
Providers Made Large Profits from Asylum Hotels but Haven't Returned Excess, MPs Told
Asylum housing providers have made higher profits from hotel use than other accommodation types, but have yet to return excess earnings to the taxpayer, MPs have heard. Executives from Clearsprings Ready Homes, Serco, and Mears Group appeared before the The Home Office is responsible for Private companies such as Clearsprings Ready Homes, Serco, and Mears Group deliver these housing services. The UK's asylum system uses two types of housing: dispersed accommodation (DA), which is longer-term housing like shared flats managed by contractors, and contingency accommodation, such as hotels or temporary sites used when standard housing runs short. The financial burden of these arrangements has grown significantly. Related Stories 7/23/2024 9/6/2024 The total cost of the UK's asylum housing contracts is expected to Hotel Dependency Under Fire The committee focused heavily on the continued use of hotels, which now account for 76 percent of annual spending on asylum accommodation, despite housing just 35 percent of people in the system. Liberal Democrat MP Paul Kohler noted that when the migrant accommodation contracts were determined, the assumption would be most of it being dispersed accommodation. 'Vast amounts are now going to far more expensive contingent hotels, the costs are higher. Therefore 7 percent of that higher turnover is a huge bonus to you, isn't it, in comparison to what was assumed to be the case when the contracts were first established?' he said. Steve Lakey, managing director of Clearsprings, admitted that hotels are more profitable than other accommodation types, but insisted they were only ever intended as a temporary solution. 'There is a big push and lots of work to try and reduce the hotels and increase the dispersal accommodation,' he told the committee. This follows the Home Office's pledge Claudia Sturt of Serco and Jason Burt of Mears echoed the view that hotels were introduced under emergency conditions during the COVID-19 pandemic and should be phased out. Still, they admitted they remain a key part of the system today owing to ongoing pressures and lack of other available accommodation. The sign outside the Home Office in Westminster, London, on April 29, 2018. Yui Mok/PA Wire Providers Acknowledge Profit Margins Under the UK's asylum accommodation contracts, providers like Clearsprings, Mears, and Serco have a profit-sharing threshold. If their profits exceed the 5percent cap, the excess must be returned to the Home Office. Clearsprings confirmed that its profit margin had reached 6.9 percent and said £32 million was set aside to be returned, pending audit. Mears said it expects to return £13.8 million, also awaiting final clearance, while Serco said it has not yet triggered profit-sharing under its contract. Despite these acknowledgements, MPs criticised the lack of actual payments made to date. 'You haven't paid a pound back into the Home Office,' said Labour MP Shaun Davies. The providers pointed out that the mechanism for paying back is driven by the Home Office, which is still auditing their accounts. Committee members also questioned Clearsprings about the personal wealth of its founder, Graham King, who appeared on the Sunday Times Rich List after a 35 percent rise in his net worth. Lakey declined to comment but emphasised the company's intention to reinvest funds. Regional Disparities MPs also questioned the uneven geographic spread of asylum housing, particularly the concentration in London and the southeast. Lakey explained that the majority of arrivals come into the southeast, mainly through Kent and Croydon intake units, and around airports where they have the most hotel availability. Providers said they must follow Home Office dispersal plans, which limit how many asylum seekers can be housed per capita in each area. They praised European models in countries like Switzerland, Germany, and Austria, where local authorities handle housing and integration, suggesting that such devolved systems are more responsive and effective. According to the latest figures, the number of people accommodated under asylum housing schemes has more than doubled, from around 47,000 in December 2019 to approximately 110,000 in December 2024.
The Independent
15-05-2025
- Politics
- The Independent
Infrastructure probe to look at why transport ‘brought to a standstill'
A probe into critical national infrastructure will look at 'broader questions' about why British transport networks have been 'brought to a standstill', according to the Transport Secretary. Heidi Alexander has said she expects answers in June about why a west London substation fire caused a major power failure at the UK's busiest airport, with more than 270,000 air passenger journeys disrupted on March 21. At the despatch box, Ms Alexander also took questions about disruption to the Elizabeth, Bakerloo, Jubilee and Northern lines in London on Monday after a fault with the National Grid's transmission network, and why HS2 is 'taking far longer and costing far more to deliver it than anyone expected'. Liberal Democrat transport spokesman Paul Kohler told the Commons: 'Following a fire at North Hyde substation which closed Heathrow a few weeks ago, various lines on the London Underground were brought to a standstill by another power outage this week. 'It's clear we need to do more to improve the resilience of our transport energy infrastructure, so will the Secretary of State commit to a full review to ensure these incidents do not keep happening?' Ms Alexander replied: 'There is a review being conducted by Neso (National Energy System Operator) about the Heathrow substation fire. The interim report has been published and we expect the the full report on that in addition – that will be coming in June. 'And we expect the Heathrow report to their board in May. I do work very closely and my department does with all transport operators to ensure that they have robust resilience plans in place, and the Government is conducting a review of critical national infrastructure to address broader questions.' Neso's 34-page interim review revealed the 'root cause of the fire remains unknown whilst forensic fire investigations are ongoing', and its lines of inquiry ahead of the final report include 'risk management and mitigation, and resilience planning by stakeholders' along with 'incident management coordination by key organisations, at operational and crisis management level'. According to the National Grid, the fault which affected transport networks in the capital 'was resolved within seconds and did not interrupt supply' but 'a consequent voltage dip may have briefly affected power supplies on the low voltage distribution network in the area'. Conservative former minister Sir Jeremy Wright had earlier raised the construction timeline for the London to Birmingham HS2 railway. 'The Secretary of State knows HS2's central purpose is to deliver economic growth, but she knows too that it's taking far longer and costing far more to deliver it than anyone expected,' he warned. Sir Jeremy continued: 'Given that projects of the scale of HS2 require parliamentary approval, isn't it important that Parliament has accurate estimates of how much and for how long the project will take to deliver? 'So will she commission a properly independent and thorough review of why it is that the budget for HS2 has increased so often and the timetable has expanded so often?' Ms Alexander said: 'I will be providing updates to this House on the emerging cost position and opening window. As (he) will know, this Government has appointed a new chief executive of HS2, Mark Wild, and he is conducting an ongoing review. 'We've also reintroduced ministerial oversight, which was so sorely lacking I'm afraid to say under his party's leadership. 'I recognise this is an important issue and we're doing all that we can do to deliver the rest of this railway for the lowest reasonable cost to the taxpayer so people can enjoy excellent rail services in the future.' On roads, Jess Brown-Fuller offered Ms Alexander a 'very warm invitation' to visit her Chichester constituency to 'sit in traffic'. The Liberal Democrat MP said her constituents face congestion 'morning, noon and night on the A27 which is strangling economic growth in the area and preventing investment'. Chancellor Rachel Reeves last year cancelled the nearby A27 Arundel bypass scheme, which like Chichester lies in West Sussex, after a Treasury audit found £3.5 billion of unfunded pressures related to transport in 2024/25. Responding to Ms Brown-Fuller, the Transport Secretary said she would 'look at the matters' raised, and added: 'As tempting as (Ms Brown-Fuller's) invitation is, I do regret that I won't be able to do that, and I won't commit the roads minister (Lilian Greenwood) to doing that, either.'
Yahoo
03-03-2025
- Business
- Yahoo
London bar owner says Treasury change ‘misunderstands why people drink wine'
A change to alcohol duty 'fundamentally misunderstands why people drink wine', a London speakeasy owner has said, as he warned nightlife faces an 'existential crisis'. Paul Kohler, the Liberal Democrat MP for Wimbledon, said 'every increase in cost makes survival more difficult' for businesses like the one he owns. The Treasury introduced a temporary 'easement' in 2023 which treated all wine between 11.5% and 14.5% alcohol by volume (ABV) as if it were 12.5%. It ended in February, so the amount of duty applied to wine increases depending on its ABV, which The Wine and Spirit Trade Association (WSTA) said would result in 30 different payable amounts within the range. When Chancellor Rachel Reeves unveiled her first budget in Government last year, the Treasury said the change would make an 11.5% ABV 250ml glass of wine 5p cheaper – but a 13% ABV 250ml glass would be 8p higher, if the cost is passed on to consumers. Speaking in the Commons, Treasury minister James Murray said firms had 'adapted well to the new system'. But Mr Kohler – who owns CellarDoor in Covent Garden – had earlier told the Commons that the system is 'simply not workable in the context of wine'. He said: 'It fundamentally misunderstands why people drink wine. 'Wine is consumed primarily for taste not strength – the ABV affects the taste profile. 'Compare a light Beaujolais with robust Rioja – it's all about taste, not about whether it is stronger and someone can get more drunk. That is not how people consume wine.' The MP also said: 'The ABV of wine cannot be predicted with precision before or during the wine-making process. 'The alcohol content's stable only at the point when the wine goes into the bottle. 'The ABV varies between different years and different vats, and until bottling we do not know the ABV of a particular bottle. 'It therefore creates huge uncertainty about price and profit margins for the industry if there are different rates of duty depending on the specific ABV, down to a gradation of 0.1%.' Turning to nightlife, Mr Kohler said: 'The industry is facing an existential crisis owing to the cost-of-living crisis, rising energy prices, inflation, labour shortages following Brexit, changes to commuting patterns, and more than doubling of business rates. 'Now, another increase in alcohol duties are to be yet another burden. 'Every increase in cost makes survival more difficult as I know myself, and this Finance Bill shows the Government is still not taking the dangers seriously.' Mr Murray said in response: 'The wine easement ended over a month ago and our early indications are that firms, warehouse keepers and HMRC have adapted well to the new system. 'Of course, I and my officials will carefully monitor that situation.' He added he has been in 'routine contact' with people from the wine industry during his time as a minister.
The Independent
03-03-2025
- Business
- The Independent
London bar owner says Treasury change ‘misunderstands why people drink wine'
A change to alcohol duty 'fundamentally misunderstands why people drink wine', a London speakeasy owner has said, as he warned nightlife faces an 'existential crisis'. Paul Kohler, the Liberal Democrat MP for Wimbledon, said 'every increase in cost makes survival more difficult' for businesses like the one he owns. The Treasury introduced a temporary 'easement' in 2023 which treated all wine between 11.5% and 14.5% alcohol by volume (ABV) as if it were 12.5%. It ended in February, so the amount of duty applied to wine increases depending on its ABV, which The Wine and Spirit Trade Association (WSTA) said would result in 30 different payable amounts within the range. When Chancellor Rachel Reeves unveiled her first budget in Government last year, the Treasury said the change would make an 11.5% ABV 250ml glass of wine 5p cheaper – but a 13% ABV 250ml glass would be 8p higher, if the cost is passed on to consumers. Speaking in the Commons, Treasury minister James Murray said firms had 'adapted well to the new system'. But Mr Kohler – who owns CellarDoor in Covent Garden – had earlier told the Commons that the system is 'simply not workable in the context of wine'. He said: 'It fundamentally misunderstands why people drink wine. 'Wine is consumed primarily for taste not strength – the ABV affects the taste profile. 'Compare a light Beaujolais with robust Rioja – it's all about taste, not about whether it is stronger and someone can get more drunk. That is not how people consume wine.' The MP also said: 'The ABV of wine cannot be predicted with precision before or during the wine-making process. 'The alcohol content's stable only at the point when the wine goes into the bottle. 'The ABV varies between different years and different vats, and until bottling we do not know the ABV of a particular bottle. 'It therefore creates huge uncertainty about price and profit margins for the industry if there are different rates of duty depending on the specific ABV, down to a gradation of 0.1%.' Turning to nightlife, Mr Kohler said: 'The industry is facing an existential crisis owing to the cost-of-living crisis, rising energy prices, inflation, labour shortages following Brexit, changes to commuting patterns, and more than doubling of business rates. 'Now, another increase in alcohol duties are to be yet another burden. 'Every increase in cost makes survival more difficult as I know myself, and this Finance Bill shows the Government is still not taking the dangers seriously.' Mr Murray said in response: 'The wine easement ended over a month ago and our early indications are that firms, warehouse keepers and HMRC have adapted well to the new system. 'Of course, I and my officials will carefully monitor that situation.' He added he has been in 'routine contact' with people from the wine industry during his time as a minister.
The Independent
29-01-2025
- Politics
- The Independent
Meeting attacker through restorative justice scheme ‘transformed' my life: MP
A Liberal Democrat MP has said meeting his attacker 'transformed' his life, as he called on the Prime Minister to place greater emphasis on restorative justice. Paul Kohler told the Commons his life was saved by two police officers after he was brutally attacked by four men in his own home in 2014, before becoming an MP. Speaking at Prime Minister's Questions, the Wimbledon MP said: 'I entered politics, active politics, after an attack on my home was misused by others to promote their anti-EU, anti-immigrant agenda. As a family, our lives were transformed by a restorative justice session organised by the charity Why Me, where we met one of our four attackers in prison Paul Kohler 'My life was saved by two brave police officers from Wimbledon police station. As a family, our lives were transformed by a restorative justice session organised by the charity Why Me, where we met one of our four attackers in prison. 'Will the Prime Minister meet with me to discuss how this Government can give restorative justice greater emphasis, and put victims at the centre of the criminal justice system, reduce recidivism and cut crime and costs?' Sir Keir Starmer replied: 'Can I extend my sympathy for what (Mr Kohler) experienced? It must have had a profound impact on him and of course his family. 'I too have seen the power of restorative justice, which does enable victims to receive answers, and perpetrators have to face the human cost of their crimes. 'Under the Victims' Code, all adult victims must be told about restorative justice and how to access it. We can always do more and I'll ensure that he gets the meeting he wants with the relevant minister.' The MP received facial reconstruction surgery after he suffered a fractured eye socket, a fracture to his left jawbone, a broken nose and bruising. Mr Kohler has previously said he believes the only reason he survived the beating was because officers were able to get to his home from the station within eight minutes of a 999 call made by his daughter. Following the attack, the former university lecturer went on to campaign against the London Mayor's Office for Policing and Crime's decision to close more than half of London's police stations. In 2018, Mr Kohler lost a High Court challenge against the decision to close 37 of the 73 police stations across the capital, but won a ruling from two leading judges that a decision to close his local station in Wimbledon was unlawful and must be reconsidered.
