Exclusive: Council invests £20m in cancer-causing tobacco companies

A North Yorkshire County Council-controlled pension fund invests over £20m in two of the world’s largest tobacco companies, despite the council being in charge of public health and running its own quit smoking service.

The revelations come as part of a series of investigations by the Stray Ferret into controversial investments made by the North Yorkshire Pension Fund, which is controlled by the council.

You can click on the links to read our previous reports on how NYCC’s pension fund invests in fossil fuel companies and arms companies.

The Stray Ferret obtained a full list of the companies the pension fund invests in through a freedom of information request.

The NHS estimates smoking kills more than 1,000 people every year in North Yorkshire but the council’s pension fund holds £12.4m worth of shares in British American Tobacco and £8.9m in Phillip Morris.

Matt Walker, an NHS manager from Knaresborough who is also a Liberal Democrat campaigner, told the Stray Ferret he has seen first-hand the damage smoking has had on people’s health, including his own grandparents.

He said:

“If I was lucky enough to have a private pension then I certainly wouldn’t want it invested in tobacco companies. I don’t smoke for a good reason; I saw the painful premature death of my grandparents who both died within days of each other from smoking-related diseases.

“As someone who has worked in health locally for nearly two decades, I know that in North Yorkshire smoking continues to be the biggest preventable cause of ill health and early death.”

‘Live its values’

NYCC has a document called the North Yorkshire Tobacco Control Strategy for 2015-2025.

It says the council has a “proven record of success” in the provision of stop smoking services, with rates falling, in part thanks to its quit smoking service called Living Well Smokefree. The service is available to anyone aged from 12 and offers one-to-one help to quit.

Cllr Caroline Dickinson and LivingWell Smokefree team members.

The report says the county still has work to do, particularly with young people and those with mental health issues. It says:

“The impact of tobacco is felt most by the poorest in the county, not just on the smokers but also on their children and their communities. We must protect the health of future generations by ensuring smoking prevalence continues to fall.”

NHS manager Matt Walker called on the council to “live its values” and divest from its holdings in tobacco companies.

He added:

“The council also has smoking policies to protect the health and wellbeing of its staff. It’s important that any organisation lives its values. North Yorkshire County Council fails at the final hurdle as its pension fund holds over £20million in tobacco companies.”

‘Not an issue’

Harrogate Borough Council Conservative councillor Jim Clark has sat on the Pension Fund’s committee of councillors since 2001.

He told the Stray Ferret that he “doesn’t think there is an issue” with the council pension fund profiting from tobacco companies whilst at the same time being in charge of public health.

Cllr Clark pointed to the way tobacco giants such as British American Tobacco have diversified in recent years.

The companies now sell, what they market as, healthier alternatives to cigarettes, such as vapes and oral nicotine products.

Philip Morris’ chief executive Jacek Olczak said he hopes half of the company’s revenue will come from these smoke-free products by 2025.

Cllr Clark said:

“We know there’s a health issue with tobacco but some of these companies have other activities. It’s very difficult to get a company that deals in one activity now.

“We must remember, if we have shares in these companies, we can help to inform the debate.”

Responsible investment policy

As we have reported this week, the pension fund investments are managed by a private company called Border To Coast.

Government guidelines say fund managers can take ethical, social or environmental concerns into account when it invests, providing the fund’s finances do not suffer.

However, North Yorkshire’s responsible investment policy, last updated in July 2021, states that it will not implement an “exclusionary policy” against companies for ethical or social reasons.

It says:

“Whilst the Fund recognises that there is the potential for investment in certain sectors to cause harm, it will not implement an exclusionary policy against investment in any particular sector or company purely based on social, ethical or environmental reasons”.

Divesting from tobacco

The Greater Manchester Pension Fund, currently the largest local authority fund in the UK, divested from tobacco stocks in 2014.

Deborah Arnott, chief executive of the health charity ASH (Action on Smoking and Health) told the Stray Ferret that North Yorkshire should follow suit.

Ms Arnott said:

“Local authority pension funds have a legal duty to get the best deal for their pensioners, but that doesn’t mean they have to invest in tobacco companies.

“Greater Manchester, the largest fund in the Local Government Pension Scheme disinvested from tobacco stocks years ago, on the basis that the tobacco sector is relatively small as a proportion of world equity markets and the Fund’s investment managers’ views were that such exclusion was unlikely to have a material adverse impact on returns.

“What’s true for Greater Manchester’s pension fund is equally true for North Yorkshire.”

Gary Fielding, treasurer of North Yorkshire Pension Fund for North Yorkshire County Council, said: 

“The pension fund needs to get the balance right on responsible investment and ensuring funds are available to pay pensions without further call on local taxpayers

“Rather than divesting from companies, the fund believes active engagement gives it, in collaboration with other pension funds, greater influence in effecting change within companies.”

Do you pay into the North Yorkshire Pension Fund and have an opinion on our investigation? Contact thomas@thestrayferret.co.uk 

Harrogate set for colourful fountains and WiFi-charging benches

Harrogate town centre is set to get water fountains and smart benches where people can charge their phones as part of the £10.9 million Station Gateway scheme.

North Yorkshire County Council is expected to approve the controversial gateway project next week.

Most of the focus has been on how the scheme will reduce traffic to single lane on a stretch of Station Parade and part pedestrianise James Street to encourage cycling and walking.

But documents sent to councillors ahead of next week’s executive meeting also reveal proposed changes to the public realm close to the train station.

They include creating a dry plaza water jet feature surrounded by new trees and seating at Station Square, where the Victoria monument is located.

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One of the documents says:

“The fountain jets can be switched on and off by the council to cater to year-round events in the plaza. Lighting can also be controlled by visitors using a smart phone to connect.

“Smart benches are proposed in the plaza to allow visitors to enjoy the space whilst charging their devices. These smart benches can also have built-in WiFi and lighting so you can enjoy your time in the plaza.”

Other proposals include new lighting columns with built-in insect hotels for wildlife along with other green measures. The documents says:

“We want to celebrate how green Harrogate is by adding in new colourful planting and new trees along streets and in the new plaza at the station.

“Some areas of planting will be rain gardens. These are special planting areas that love collecting rain water to reduce the likelihood of floods around the town.”

Ofsted rates Ripley primary school as ‘inadequate’

Ofsted has rated Ripley Endowed C of E Primary School as ‘inadequate’ for the first time in the school’s history.

The 49-pupil school had a ‘good’ rating in 2011 but subsequently received ‘requires improvement’ ratings in 2015, 2017 and 2019.

The latest report, published yesterday, says pupils feel safe, safeguarding arrangements are effective and parents value the school. It also says pupils are polite and well mannered and there is no bullying in school.

But it is highly critical of the quality of education, leadership and early years provision. It is also critical of behaviour and attitudes and personal development.

Pupils, says Ofsted, are often distracted because work is too easy or too hard and “achieve far less than they should”.

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‘Inadequate’ is the lowest of four possible ratings. The report says:

“Ripley Endowed Church of England School is a warm and caring school. Pupils feel safe here. They support, help and care for each other.

“Parents value the school and the staff that work here. The quality of education that pupils receive is inadequate.

“Despite the teachers wanting the pupils to achieve, the curriculum is not designed or planned well enough to support them to do this.”

Ofsted inspectors visited the school over two days in November 2021 when they observed lessons, spoke to pupils informally and met parents at the start of the day.

Here is how the inspectors came to the overall ‘inadequate’ rating:

The Stray Ferret approached Ripley Endowed C of E Primary School for its response to the Ofsted rating. We were directed to North Yorkshire County Council, the local education authority, but it did not respond by the time of publication.

Ripley is part of a federation of three schools. The other two schools are Kettlesing Felliscliffe Community Primary School and Beckwithshaw Community Primary School.

Exclusive: Council invests £15m in arms firms linked to deadly Yemen War

A North Yorkshire County Council pension fund invests £15m in arms companies that have built weapons for the deadly Saudi Arabia-led bombing campaign in Yemen.

The revelations come as part of a series of investigations by the Stray Ferret into controversial investments made by the North Yorkshire Pension Fund, which is controlled by the council.

The Stray Ferret obtained a full list of the companies the pension fund invests in through a freedom of information request.

The council’s pension fund is now facing renewed calls to divest from arms firms. However, its own responsible investment policy, last updated in July 2021, clearly states that it will not implement an “exclusionary policy” against companies that are deemed by some to be questionable.

It says:

“Whilst the Fund recognises that there is the potential for investment in certain sectors to cause harm, it will not implement an exclusionary policy against investment in any particular sector or company purely based on social, ethical or environmental reasons”.

Ethical questions for council

The fund has an investment worth £11m in the UK’s largest arms manufacturer BAE Systems.

Company reports analysed by the Campaign Against Arms Trade (CAAT) found BAE Systems, via the UK government, has sold at least £15bn worth of arms and services to the Saudi military since the Yemen conflict began in 2015.

According to UNICEF, over 10,000 children in Yemen have been killed in the conflict, which is between a Saudi-backed Sunni group and Shia Muslims.

Professor Anna Stavrianakis is an expert on the global arms trade and is a Professor of International Relations at the University of Sussex. She told the Stray Ferret the pension fund’s investment in BAE Systems raises ethical questions for NYCC.

She said:

“The basic ethical premise of investment is that you invest now to secure a better future for yourself. If you do that by investing funds in a company that in an extremely direct way has contributed to the deaths of other people, it is not that much of a stretch to say there’s an ethical issue there.

“If I was a council employee I would be asking where is my money being invested, and at whose expense is my future being secured? They can be painful questions to answer.”

‘Death and destruction’

North Yorkshire Pension Fund also holds £3.7m in Raytheon Technologies, an American defence company that manufacturers the controversial Paveway bomb.

Fragments of the bomb were found following a 2019 Saudi-led air strike in Yemen that killed six civilians, including three children.

A Paveway bomb being dropped. Credit – Raytheon

In 2019, the European Center for Constitutional and Human Rights (ECCHR) submitted a 300-page document accusing European arms executives at firms, including BAE and Raytheon, of “aiding and abetting” alleged war crimes in Yemen by the Saudi-led coalition.

Kirsten Bayes from the Campaign Against Arms Trade, called on North Yorkshire County Council to reconsider its pension fund’s investments into arms companies.

As well as BAE Systems and Raytheon, the pension fund also invests £7.3m in Safran and £6.9m in Rolls Royce, which are both major manufacturers of military equipment.

Ms Bayes said:

“Arms companies make their money from death and destruction. Council tax payers and pensioners in North Yorkshire will be shocked to learn that their funds are invested so heavily in such a violent industry.

“We would call on the trustees of the pension fund to reconsider their investments in weapons makers. Their money could instead be helping to create new, green jobs in the high growth industries of the future. That would be a better deal for everyone.”

Councillor defends the investment

Harrogate Borough Council Conservative councillor Jim Clark has sat on the Pension Fund’s committee of councillors since 2001 after a career in finance. He represents all the district councils in North Yorkshire.

He defended the investment in BAE Systems when asked by the Stray Ferret. He said the £11m holding represents a “very, very small” part of the fund’s total investments and that the fund’s main responsibility is to maximise its value, although he said “various people have different views on that”.

Cllr Jim Clark

Cllr Clark believes by remaining as an investor in companies that are deemed by some to be controversial, it can use its power to influence decision-making.

He said:

“Theres no point saying ‘just sell the shares’. If you have no shares you have no way of influencing decisions made, people tend to forget that when they make comments that haven’t been properly thought through.

“Successful companies will always listen to their shareholders. It’s very important that they do.”

Cllr Clark was unable to provide evidence of how the North Yorkshire Pension Fund has influenced decision-making at BAE Systems.

BAE Systems and council respond

The Stray Ferret approached both BAE Systems and Raytheon for comment.

A BAE Systems spokesperson said:

“We provide defence equipment, training and support under government to government agreements between the UK and the Kingdom of Saudi Arabia.‎ We comply with all relevant export control laws and regulations in the countries in which we operate and our activities are subject to UK government approval and oversight.”

Gary Fielding, treasurer of North Yorkshire Pension Fund for North Yorkshire County Council, said: 

“The pension fund needs to get the balance right on responsible investment and ensuring funds are available to pay pensions without further call on local taxpayers.

“Rather than divesting from companies, the fund believes active engagement gives it, in collaboration with other pension funds, greater influence in effecting change within companies”.

In the final part of our investigation into the council’s pension fund, we reveal it holds over £20m in cancer-causing tobacco companies despite the council being in charge of public health.

Business groups claim they’ve been ignored in Station Gateway consultation

Three business groups have accused North Yorkshire County Council of ignoring their views and the opinions of residents during the Station Gateway consultation.

The Stray Ferret revealed yesterday that the county council is set to give the £10.9m project the green light at a meeting on Tuesday next week — even though the latest consultation revealed the majority of respondents feel negatively towards the scheme.

The gateway scheme will see major changes around Harrogate railway station, including single lane traffic on a stretch of Station Parade and  James Street partly pedestrianised to encourage walking and cycling.

In a joint letter to members of the county council’s executive, which has been recommended to approve the scheme, Harrogate District Chamber of Commerce, Harrogate Business Improvement District and Independent Harrogate warned that work on the scheme would create ‘another 12 months of major disruption and misery’ for businesses already struggling to get over covid.

The letter adds:

“Sadly, the views of the business community have been continually ignored. As have those of other key organisations, in particular Harrogate Civic Society and residents’ organisations who believe what is being proposed will not bring the benefits being espoused. The Conservative Party, of which you are a member, prided itself on being the party of business. Sadly, this doesn’t appear to be the case anymore!

“For the last two years, town centre businesses have suffered at the hands of the covid pandemic and now you are proposing to add at least another 12-months of major disruption and misery.

“For you it will be easy to support the proposal in front of you, as of next year North Yorkshire County Council will not exist in its current form and some of you may not even seek re-election.

“Before you cast your vote, we urge you to carefully consider the businesses in Harrogate town centre and their collective views.”

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The letter also questions the lack of an economic impact survey and says greater consideration should be given to the travel needs of people who come into Harrogate from nearby villages.

‘Welcome boost’ to town centre

The Harrogate scheme is one of three in Yorkshire being paid for by £42m from the government’s Transforming Cities Fund.

County Councillor Don Mackenzie, executive member for access, said:

“These proposals represent the biggest investment in Harrogate, Selby and Skipton town centres in decades.

“We want to encourage more people to travel by foot, bike and public transport because it is good for health and the environment by promoting fitness and reducing congestion.

“The spending will also provide a welcome boost for our town centres after two difficult years of trading during the pandemic.

“We have listened to feedback from the public consultations and are confident people will be pleased with the results.”

Don’t judge Otley Road cycle path until its complete, says campaign group

Harrogate District Cycle Action has urged people to hold judgement on the new Otley Road cycle path until it is completed in full.

The first phase of the long-delayed Harrogate cycle path between Harlow Moor Road and Arthurs Avenue was due for completion last week but has now been pushed back again until 21 February 2022.

Kevin Douglas, chairman of Harrogate District Cycle Action, said while the campaign group had raised some concerns over the works completed so far, people would only see the full benefits when all three phases of the project are completed.

He said:

“This is only one phase and a very small part of the whole project.

“What we wanted to see was a scheme that was going to be an exemplar for other cycle routes and at the moment we haven’t got that because it is only part of the bigger picture.

“When the whole thing is done it should be better and encourage more people to cycle and walk.”

The cycle path is part of a wider package of sustainable transport measures for Harrogate, which will cost around £4.6 million once completed.

Funding was first secured by North Yorkshire County Council in 2017 and there have since been several delays involving utility and construction works.

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There have also been drawn-out discussions with the Duchy of Lancaster – the owners of the Stray – over the use of grass verges protected by law.

Despite the long-awaited progress on the first phase, the county council has said it is still unable to say when the project could be completed in full.

It said phase two could start in April and that the final phase connecting Cardale Park relies on developer funding, which is currently being worked on and will lead to more detailed planning, including a feasibility study.

Junction concerns

The concerns raised by Harrogate District Cycle Action over the first phase involve changes to Otley Road’s junction with Harlow Moor Road, as well as priority for pedestrians.

Mr Douglas said the campaign group would soon meet with council officers to highlight the issues.

He said: 

“We said right at the beginning that this is one of the most difficult parts of Otley Road to work on. There are constraints and we acknowledge that.

“But the Harlow Moor Road junction has been widened to allow traffic through which is frustrating and has narrowed the turning for pedestrians and cyclists.”

Mr Douglas added:

“With all the delays that are going on we will keep pressing the council which should have been doing one phase and then straight onto the next one.

“I couldn’t see them doing a new road scheme in this way – they just wouldn’t do it.”

Council completes £1.8 million purchase of Cardale Park land

North Yorkshire County Council has completed the £1.8 million purchase of land earmarked for a care home near Cardale Park.

The three-acre site on Beckwith Head Road in Harrogate was previously owned by Tees, Esk and Wear Valleys NHS Foundation Trust, which runs mental health services in the district.

However, the county council has now bought the land in order to progress a “scheme to assist with social care market development in the Harrogate area”.

Following the purchase, council officials are now expected to outline plans for the facility to senior county councillors in May.

A spokesperson for the county council said:

“We have completed purchase of the land and we are planning to go back to executive in May 2022 for a final decision on the use of the land and in the meantime and we are completing viability studies on best use of the site.”

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The land was previously given approval to build a 36-bed mental health facility on the site, following the closure of Harrogate District Hospital’s Briary Unit, which helped adults with mental illness.

However, those plans were dropped in 2019 and inpatients on the unit were sent to Foss Park Hospital in York instead.

Confirmed: £11m Station Gateway to get green light next week

North Yorkshire County Council has confirmed that the £10.9m Harrogate Station Gateway will be recommended for approval next week.

The Stray Ferret revealed last week that the county council’s executive was expected to give the green light on January 25.

Now the county council, which is the lead partner for the scheme, has confirmed the executive is recommended to take the proposals forward to detailed design stage so work can start in spring or summer.

It says the move will save shops from decline, make the town centre more attractive and improve the town centre for cyclists and pedestrians.

Station Gateway design

James Street will be partly pedestrianised and traffic on some of Station Parade reduced to single lane.

The decision comes despite widespread opposition to the scheme from businesses and residents.

The results of the second phase of consultation, published last month, revealed that of 1,320 people who replied to an online survey, 55% feel negatively, 39% positively and five per cent neutral towards the scheme. One per cent said they didn’t know.

Nevertheless the scheme is expected to proceed with only minor amendments.

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A report to councillors acknowledges there has been “a general reduction in the level of support for the changes”. It says the main concerns are the negative impacts on businesses, congestion, air quality and the attractiveness, accessibility and safety of the town centre.

It adds that officers believe:

“The proposals will have an overall positive impact on the local economy, air quality and the attractiveness, accessibility and safety of the town centre with a minimal increase in journey times and flows in the worst case traffic modelling.

“It is therefore considered appropriate that the proposals be taken forward through detailed design and implementation.”

The report adds the “overall impact on retail footfall is expected to be positive”, adding.

“Evidence suggests that the town centre retail sector is at risk of decline in the medium term. There is also a growing body of case study evidence which indicates that the scheme will increase footfall and economic value.”

Granville Road Gateway protestors

Residents living near the town centre fear their streets will get more traffic.

Extra traffic in residential areas

Regarding concerns that the changes will displace traffic along the A61 Cheltenham Crescent into nearby residential streets, the report says traffic modelling looked at “significant changes (an average change of 3 vehicles per minute or more)”, adding:

“At the worst time of day (the afternoon peak hour) only East Parade experiences a significant increase in flow (5 vehicles per minute).”

The Harrogate scheme is one of three in Yorkshire being paid for with £42m from the government’s Transforming Cities Fund.

County Councillor Don Mackenzie, executive member for access, said:

These proposals represent the biggest investment in Harrogate, Selby and Skipton town centres in decades and aim to increase productivity by making it quicker, easier and safer for people to travel around and connect with economic opportunities.

“We want to encourage more people to travel by foot, bike and public transport because it is good for health and the environment by promoting fitness and reducing congestion. The spending will also provide a welcome boost for our town centres after two difficult years of trading during the pandemic.

“The entire project is a great example of partnership working between Craven District Council, Harrogate Borough Council, Selby District Council, North Yorkshire County Council and the West Yorkshire Combined Authority and is set to deliver real benefits to residents and businesses across our county.

“We have listened to feedback from the public consultations and are confident people will be pleased with the results.”

Public health boss ‘cautiously optimistic’ worst of Omicron wave is over

The director of public health for North Yorkshire says she is “cautiously optimistic” that the county has seen the worst of the Omicron wave as covid infections continue to fall.

Louise Wallace told a meeting of North Yorkshire’s Outbreak Management Advisory Board today that the latest figures showed a “much better picture” with a 43% drop in the county’s weekly infection rate which now stands at 1,048 cases per 100,000 people.

Latest figures for the Harrogate District show that the rate has fallen to 1,136 per 100,000 people.

However, Ms Wallace said infections were still higher than previous months and that this was putting pressure on care homes, hospitals and schools.

She said: 

“We are now seeing a decline in some of the numbers and I’m really hopeful that they are heading in the right direction.

“I’m cautiously optimistic that we are turning the tide, but we still do have 854 daily cases.

“And of course we have had changes to testing arrangements over the last few weeks which may be having an impact on some of the data.”

Latest figures show there have been seven covid-related deaths in North Yorkshire in the last week – fewer than this time last year when the county was averaging five deaths each day.

NHS staff told today’s meeting that despite this improving picture, many patients were still being hospitalised with the virus.

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They also expressed concerns that fewer people are now testing for covid and that this was “skewering” the true rates of infections and estimates on how many more patients could need hospital treatment.

This comes as the self-isolation period for people who test positive has been cut to five full days in England.

From today, people will be able to leave isolation after negative lateral flow tests on days five and six in a move to ease pressure on staffing shortages across the private and public sectors.

This was announced last week by the government which is reportedly seeing “encouraging” signs that the Plan B restrictions in England could be removed after a review on January 26.

The current restrictions include guidance to work from home, the widespread use of face coverings and NHS Covid passes for some events.

Meanwhile, teenagers aged 16 and 17 can now book their booster vaccines online from today. The top-up jabs are also being made available to clinically vulnerable 12 to 15 year olds.

Pandemic sees increase in number of Harrogate district free school meals

An extra 350 children in Harrogate district secondary schools have become eligible for free school meals since the coronavirus pandemic began, figures reveal.

A total of 1,143 children were eligible in October 2021, compared with 796 in January 2020.

This means almost 1 in 10 children in the district are now eligible for free school meals. The national average is around 2 in 10.

The Stray Ferret obtained the figures from a freedom of information request to North Yorkshire County Council, the education authority for the district.

To qualify for free school meals a parent must apply to the council with evidence that they are receiving a benefit, such as child tax credit, income support or universal credit.

The issue of free school meals was highlighted following a campaign by Manchester United and England footballer Marcus Rashford.

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Speaking at last week’s Harrogate and Knaresborough Area Constituency Committee, Helen Ingle, health improvement manager at NYCC, said the council was trying to encourage parents of key stage 1 age children to take up free school meals.

If a child is in reception, year one or year two they are automatically entitled to a free school meal.

Ms Ingle also said schools in the district had reported an increase in obesity since the pandemic began.

She said:

“[Covid] has had a massive impact on levels of overweight and obesity, we’re doing a lot of work around that. Schools are very concerned about healthy eating levels in schools and have noticed a change in children’s weight and eatings habits since covid.”