Council spending plunges, LGPS defecits, Northern investment, Estate rationalisation…

Council spending plunges under austerity
Local authority spending in England has fallen by a third over the course of this Parliament, according to data compiled by the Department for Communities and Local Government (DCLG) and the Chartered Institute of Public Finance. The figures show that per capita spending by councils will have fallen by 14.5% in cash terms by 2014-15 when compared to 2000-2010 last year of the last Parliament. When adjusted for inflation this represents a steep drop of 29.1%, CIPFA said.

Probe launched into LGPS deficits
The Local Government Pension Scheme shadow board has commissioned a review of deficits within the scheme. The move comes after former local government minister Brandon Lewis asked the board to make proposals on the management of deficits in the LGPS. A working group met in July and agreed to commission a specialist piece of work on the issue with a view to making recommendations to the secretary of state for communities and local government later this year.

Osborne pledges boost to North
Chancellor George Osborne has announced that measures to boost economic growth in the north of England will form the centrepiece of his Autumn Statement later this year. He was responding to a new report published by an alliance of five cities – Leeds, Liverpool, Manchester, Newcastle and Sheffield – calling for transport improvements, including a £15bn high speed trans-Pennine rail link. Richard Threlfall, KPMG’s UK head of infrastructure, building and construction, said: “The £15bn estimated cost is only a part of the total investment needed, though delivers a great deal for less than the cost of Crossrail 1 or Crossrail 2.”

New tranche of councils join estate rationalisation scheme
Another 20 councils have been picked to join a programme to release excess government land and property. The councils will join 12 pilot councils that took part in the first phase of the One Public Estate programme aimed at saving £21m in running costs and £88m in capital receipts. The councils are Manchester City, Trafford, Bury, Oldham, Salford, Stockport, Norfolk and Suffolk in partnership with Forest Heath and St. Edmondsbury (West Suffolk), Liverpool, Birmingham, LB Barnet, LB Croydon, Plymouth, Southampton, Kent, York, Cornwall and Bradford.

Business rates appeal plans dropped
The Government has scrapped plans to tighten the business rates appeals system after protests from lobby organisations. Last month, former High Streets Minister Brandon Lewis claimed that too many businesses were abusing the appeals system and promised to tighten it. But business leaders said there were so many appeals because the government delayed the standard, five-year revaluation of all business premises from next year to 2017. Ministers will now consider reforms as part of a broader review of business rates administration after the next revaluation in 2017.

Councils explore property sharing arrangement
Four councils are considering plans to create a joint property vehicle to manage public sector land and buildings in the West Midlands. The partners currently exploring the potential of a joint property vehicle include Herefordshire Council, Hereford and Worcester Fire and Rescue Service, Redditch Borough Council, Warwickshire Police, West Mercia Police, Worcestershire County Council and Worcester City Council. The move would be intended to provide savings of £110.7 million between 2015 and 2025.

LGA warning over social care funding
Government funding for the adult social care system may not be enough for councils to implement reforms outlined in the Care Act. A survey by the Local Government Association found that nine in 10 councils are concerned about the cost of making crucial changes to services for people in need. The LGA has written to Health Minister Norman Lamb on behalf of councils across England and Wales to outline the growing concerns and urge the government to commit to plugging any funding shortfall.