City bond proposal, Waverley’s property fund, Glasgow’s Brexit demands, Scottish accountability
0‘City region bonds’ on government agenda
The government is considering giving regional mayors powers to create “city bonds” to raise up to £1bn to fund infrastructure, according to a report. The Telegraph said that the new bonds would be underwritten by the Treasury. Ministers believe infrastructure investment could help boost the economy in the wake of the Brexit vote, the paper said.
Waverley joins property rush
Waverley Borough Council has become the latest council to commit cash to property investment in order to generate income. Members have agreed to commit £2m of general fund capital receipts and £1m of its 2017/18 New Homes Bonus into a new property investment fund.
LGPS funds commit to property fund
Leicestershire County Council Pension Fund and Nottinghamshire County Council Pension Fund have committed £55m to a new closed-ended property fund managed by Kames Capital. They join the West Midlands Pension Fund, which in July committed seed funding of £50m for the Kames UK Active Value Property Unit Trust II. All three funds are part of the emergent LGPS Central investment pool.
Glasgow makes Brexit demands
The UK and Scottish governments should transfer their surplus land holdings in Glasgow to Glasgow City Council for housebuilding to stimulate the economy in the wake of Brexit, a new report says. The proposal is one of six included in a report drawn up by senior business, local government and academic leaders. Frank McAveety, leader of the council, said: “I believe that Brexit will confront Glasgow with major economic challenges. I also believe these can be overcome if special action is taken by the Scottish and UK governments.”
Watchdog warning on social care pressures
Funding pressures are leading some social care providers to withdraw from local authority contracts, according to the Care Quality Commission. The watchdog’s annual report said that Mears Group has served notice to both Liverpool City and Wirral Councils for offering hourly pay rates of just £13.10 and £12.92, compared to the minimum recommended by the UK Homecare Association. The CQC also found that care home providers who make half their turnover from local authorities achieve 28% less profit per bed compared with all providers.
CIPFA calls for better accountability
The Chartered Institute of Public Finance and Accountancy (CIPFA) has called on the Scottish Government to strengthen accountability for local government in a new approach to taxation. It said tax should be set and raised locally without government intervention. It added that a wider range of discretionary tax powers could allow local councils to provide alternative means of supporting local services.
