LGPS CIV debate, HRA freedoms, Local Growth Fund, Council merger…
0London Councils voices LGPS reform concerns
London Councils, the body representing local authorities in the capital, says that there is no logical reason to split asset classes across different common investment vehicles. Responding to a government consultation on the future of LGPS investment, the body added that one CIV for the whole of the LGPS would generate “dis-economies of scale” and could disrupt the investment market. It said: “Even with passive management, depending upon the index chosen and the rules it follows, a single CIV might well become a target for hedge funds that are aware of the CIV’s need to rebalance in accordance with the known index rules.” London Councils also revealed that four councils have now decided not to participate in its proposed CIV, with 24 on board and another five to give notification shortly.
15 councils to get HRA freedoms
Housing minister Kris Hopkins has announced that 15 councils will be given permission to undertake an additional £60m of housing revenue account borrowing. The councils will be able to borrow the funds – which come from an overall allocation of £300m announced in the Budget – over the next two years to build new homes. Hopkins said bids for the remaining £240m were still welcome.
£6bn package announced for growth
The government has unveiled details of £6bn of funding for councils and local enterprise partnerships through the Local Growth Fund. The cash, covering 2015-16 will be spent on transport, housing, skills and development projects in England. The allocations were made after England’s 39 local enterprise partnerships were invited to submit a strategic economic plan outlining their growth priorities.
Slough in standalone housing company move
Slough Borough Council has agreed plans to set up a standalone company to buy and develop land for housing. The aim of the company would be to build on smaller infill sites owned by the council, which are less attractive to large developers, and would help meet housing demand.
Labour unveils funding devolution pledges
A future Labour government would create local public accounts committees to monitor value for money and the performance of public spending. The recommendation was included in a report recommending greater devolution over spending by the party’s local government innovation taskforce. The Local Government Association welcomed the announcement but said that the promise needed to be translated into a manifesto pledge.
LGA proposes housing measures
The Local Government Association has unveiled proposals it said would help councils provide half a million homes by the end of the decade. Key measures include government incentive schemes to encourage private developers to speed up housing delivery; the creation of council-led local land trusts; the complete scrapping of the housing borrowing cap and an overhaul of the government’s Right to Buy scheme.
Northern Trust wins pensions mandate
Cambridge and Northamptonshire local government pension schemes have appointed Northern Trust to provide custody, accounting and securities lending on their combined £4bn investment portfolio. The appointment was made under the National LGPS framework for global custody services.
Job fears over back office council merger
Oxfordshire County Council has announced plans to merge services with Hampshire County Council. The move would see large parts of the county council’s finance and human resources departments transferred to a business centre in Winchester. This has provoked fears that workers at Oxfordshire could be told to relocate or lose their jobs.
Authorities mull shared service arrangements
Three councils in the east of England are considering a proposal to share ICT and legal services. In addition, Cambridge City, South Cambridgeshire District Council and Huntingdonshire District Council will also examine the feasibility of shared HR and revenues and benefits functions. Lewis Herbert, leader of Cambridge City Council, said: “With a 40% reduction in government core funding for the council we have to find ways of making further savings for at least the next four years.’
Dorset councils in cost savings plan
Three Dorset councils believe they can save £6m by 2019-20 by sharing a chief executive and senior management team. North Dorset District Council, West Dorset District Council and Weymouth & Portland Borough Council have proposed the arrangement to make efficiencies on the use of office space. The councils could bid for central government transformation cash to help institute the change.
Suffolk set to withdraw from tobacco investments
Suffolk County Council will next week vote on proposals to disinvest from tobacco companies. A motion before the full council calls for its pension fund to withdraw from any company deriving more than half of its income from tobacco. The council currently has almost £37m invested in such firms.
