Challenger banks, NHB action, HRA transfer, Oxfordshire outsourcing, Town centre regeneration

Banking chief: ‘Councils could help smaller banks’
British Banking association chief executive Anthony Browne said this week that councils could become a key player in opening up the banking sector to more competition from smaller players. Browne delivered a speech at the London Stock Exchange calling on the government to loosen regulation which he said was holding back the formation of smaller banks. He said: “We want councils to be able to invest some of their £30billion of resources in smaller banks and some of the rules on capital for smaller banks to be relaxed.”

Welsh Council pension arrangements declared unlawful
Pension payments made to senior officers at Pembrokeshire Council were made under an unlawful arrangement aimed at avoiding tax, auditors have found. The Welsh Audit Office said that two senior officers at the council, including the chief executive, opted out of the Local Government Pension scheme but received equivalent payments so they could make their own savings and avoid tax liabilities. It is expected that by the end of March 2014 a total of £51,011 will have been paid to the Chief Executive and one other senior officer. WAO auditor Anthony Barrett said: “Pembrokeshire Council has acted unlawfully and urgently needs to rescind its decision around pensions opt-outs and stop any further payments to senior officers.”

New Homes Bonus: London legal action considered
London Councils is considering taking legal action to stop the government top-slicing New Homes Bonus cash from the capital’s local authorities to give to its local enterprise partnership. Council leaders will next week consider a report which says that the body is also discussing how a top slice might work in less damaging ways. One of the options would be to allow councils to make a transfer of the cash from capital resources, a report by officers says.

Islington looks to move costs to HRA
London Borough of Islington is planning to transfer around £1.3 million in costs from its general fund to its housing revenue fund. The charges relate to “landlord services” which were previously funded under the Supporting People stream, which received £15 million from central government in 2012/13. Supporting People income is no longer allocated separately, but in theory forms part of a council’s general fund, according to trade magazine, Inside Housing.

New Homes Bonus payments reach almost £1 billion
Councils will receive almost £950 million in New Homes Bonus payments in 2014/15, the government has announced. Local authorities earned £248.5 million for the year from October 2012 to October 2013, which has been added to allocations earned in previous years to reach the total. The largest allocation was £19.5 million for Tower Hamlets, which built more than two thousand homes during the period, with the smallest allocation of £47,934 for its 13 net additions.

Oxfordshire announces outsourcing intention
Oxfordshire County Council has revealed it is planning to outsource a range of back office services, including finance and banking services. The council has announced its intention to engage with the market to help shape its requirements ahead of a procurement process. The council said it would most likely seek a four year contract for the outsourcing of services, which would include human resources and could also extend to schools in its area.

Councils ‘should use town centre assets’ for regeneration
Councils should be encouraged to do more to use their property assets to regenerate town centres, according to a report by the Association for Public Service Excellence. The report says that national policy on town centres has placed too much emphasis on encouraging councils to dispose of assets, it said. But Paul O’Brien, chief executive of APSE said: “It makes financial sense to ensure assets that give town centres a focal point, lever in resources and create strong multiplier effects in local economies…”

Birmingham to reveal Capita contract details
Birmingham City Council has committed to publishing details of its multi-million outsourcing contract with Capita. The council has been under pressure to reveal what exactly is covered by the IT, call centre and billing services contract, which costs around £120 million pounds a year. The council said the contract would be published by the end of March.