Derby director suspended, Tesco tax, New Homes Bonus slammed, Fracking fees, Lloyds fined…
0Derby finance boss suspended
Derby City Council has suspended its strategic director of resources Roger Kershaw for unknown reasons. The suspension, which the council said did not imply any wrong-doing, would be effective during the course of an investigation. It refused to comment further on the case. Kershaw took up the position in 2011 after moving from Somerset County Council.
Councils float “Tesco tax” proposal
A group of councils is calling for the power to introduce a “Tesco tax” on supermarkets to raise money for services. Under the proposal, retail outlets with a rateable value in excess of £500,000 would have to pay an extra business levy of up to 8.5%. Similar schemes already exist in Northern Ireland and Scotland but the Department for Communities and Local Government poured cold water on the idea.
New Homes Bonus ‘robs poor councils’
The 50 most deprived councils have lost out on £111m it would have received if the New Homes Bonus pot had been distributed in line with block grant funding, according to new figures. According to the Financial Times, London, the South East and East Anglia have benefitted by £177m at the expense of councils in the Midlands and North.
Lloyds fined over LIBOR issues
Lloyds Banking Group has been fined £218m by regulators in the UK and USA in relation to issues surrounding the manipulation of LIBOR rates. The Financial Conduct Authority has fined Lloyds Bank and the Bank of Scotland, both part of the group, £105m for serious misconduct relating to the Special Liquidity Scheme (SLS), the British Bankers’ Association (BBA) Repo Rate and the London Interbank Offered Rate (LIBOR).
Councils call for higher fracking rewards
The LGA has called for councils to be properly rewarded if fracking schemes get the go-ahead in their areas. Briefings in national newspapers at the weekend suggested that the government was to push ahead with fracking despite widespread opposition in a consultation on the matter. Mike Jones, chair of the LGA’s environment and housing board said: “Given the significant tax breaks being proposed for the firms involved and likely returns, an offer from the industry to local communities of one per cent of revenues and compensation schemes is not enough, and we are seeking a better deal for residents if extraction of oil and gas takes place.”
Labour set to keep HRA borrowing cap
A future Labour government is unlikely to remove the current borrowing cap on local authorities’ housing revenue accounts, according to reports. The Financial Times said that a review for the party by Sir Michael Lyons is likely to merely recommend more freedom for those councils who can prove they are financially secure. Sir Michael said that there could not be a “gap” between his recommendations and the insistence by Ed Balls, shadow chancellor, that Labour must keep a tight rein on spending in the next parliament.
Cash on offer to speed housebuilding
The government has launched a £3m fund to kickstart work on stalled housing developments. The funding will be available to tackle planning issues that can cause delays, according to housing and planning minister Brandon Lewis. He said the cash could help bring forward 25,000 homes on 85 sites. Councils with the greatest numbers of large housing developments recently agreed will be given priority for the funding, as well as those who can show how they will make each pound go further by enabling faster starts on site.Each council that successfully bids is expected to receive around £50,000 from the fund.
Fee secrecy ‘scuppering CIV groundwork’
Preparatory work to create collective investment vehicles to manage Local Government Pension Scheme funds in England and Wales are proving difficult due to pension funds’ reluctance to reveal the fees they are paying. According to reports, a sub-committee of the LGPS Advisory Board was unable to construct a full list of fees due to secrecy from funds.
Tri-borough plans under review
Three London boroughs are to review their shared service arrangements, including the joint management of a £2.3bn pension fund. The review has been prompted after the Labour Party wrested control of the London Borough of Hammersmith and Fulham from the Conservatives. The council has a patchwork of shared service arrangements with neighbouring Westminster and Kensington and Chelsea.
New voice to campaign for city funding freedoms
A new Cities for Business partnership has been launched, covering the eight largest urban areas in England. Politicians and business leaders are backing the group, and have written to the chancellor, shadow chancellor and chief secretary to the Treasury calling for new powers and freedoms. The partnership called for innovation growth hubs in each core city, more local control over skills and employment services and more freedoms for councils over transport, broadband and housing funds.
