GLA rating, Manchester PFI, Council tax, Financial reporting standards, City Deals
0GLA retains high financial rating
Ratings agency Standard & Poors has affirmed its AA+ rating for the Greater London Authority, despite its high debt levels. The agency said that negative balances reflected significant grant funding to Transport for London for expenditure on Crossrail and the Northern Line extension projects, which it said it believed would be supported by central government if required. S&P said that the rating reflected London’s wealth, a positive liquidity position, low levels of contingent liabilities, and the GLA’s management.
Manchester signs deal with PFI consortium
Manchester City Council has signed a £100 million contract with a development consortium to carry out an estate regeneration through the private finance initiative. The S4B consortium is made up of construction firm Galliford Try, housing association Contour Homes and maintenance company Mears and will carry out demolition, rebuilding and refurbishment of council homes on the 1970s estate in the Brunswick area of the city.
Council tax relief transition ‘managed well’
Councils worked effectively with the DCLG to implement changes which saw local authorities take responsibility for council tax support for low income groups, according to a report by the National Audit Office. However, it said that it is not clear if all of the longer-term objectives outlined by the department would be met, particularly the protection of vulnerable groups from increases in council tax. It found that 71 per cent of local authorities have introduced schemes that require working-age claimants to pay at least some council tax.
Praise for councils financial reporting performance
Councils performed well in meeting their financial reporting responsibilities for 2012/13, according to the Audit Commission, with 98 per cent of all local government bodies receiving an audit opinion by 30 September 2013. The commission praised three councils – Oldham Metropolitan Borough Council, Kent County Council and the Royal Borough of Greenwich for publishing accounts early. However, the responsible financial officer at Birmingham City Council and Epping Forest District Council failed to sign and certify their accounts by the deadline of 30 June 2013.
More cities join City Deal bandwagon
Deputy Prime Minister Nick Clegg has announced the agreement of three more City Deals for Coventry and Warwickshire, the Norwich area and the Black Country. A memorandum of understanding has also been agreed with Cambridge city region. The cities are the latest to join the programme, which was set up to devolve more power over finance from Whitehall to cities, although these new agreements focus mostly on the use of existing funding powers.
Councils face performance criteria to earn social care cash
Councils and NHS bodies will be required to protect adult social care services in order to qualify for cash from a £3.8 billion health and care integration pot. The criterion is one of seven nationally-set measures.
