News Roundup: Liverpool devolution, Invoice fines, ‘Unfair’ business rates, TIF extension, LPFA infrastructure bid…
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Liverpool calls for devolution inclusion
Leaders of Liverpool City Region Combined Authority have called on the government not to leave them out of plans for financial devolution. Chancellor George Osborne has already announced a package of measures for Manchester, and said similar plans would be drawn up with Sheffield and Leeds. Liverpool has agreed to approach central government as a matter of urgency to begin discussion on similar arrangements for Merseyside.
Unprepared councils ‘face massive invoice fines’
Councils could face massive bills if they are unprepared for legislation requiring them to pay up to £100 for every invoice they pay late. Mary Glindon MP, a member of the CLG Select Committee, has written to the Local Government Association voicing her concerns. Payment services provider Oxygen Finance say that an average upper tier authority could be in line to pay up to £750,000 a year unless they comply with the changes.
Property body calls for reform of ‘unfair’ business rates
The British Property Federation has called for an overhaul of the business rates system to boost investment in towns and cities, and to restore fairness. It called for an end to the current system which rises are calculated using the inflation rate. Liz Peace, chief executive of the British Property Federation, said: “Unlike every other tax in the UK, the business rates burden does not fluctuate with the economic cycle, meaning businesses have to pay the same regardless of economic conditions and this, we argue, must change. Unless Government acts, there may come a time when rates become so high that they squeeze investment out of all but our most prosperous towns and cities.”
MPs tout TIF extension
Councils should be allowed to make greater use of tax increment financing to unlock development, according to the parliamentary All Party Urban Development Group. In a report, the group also said that enterprise zones need to become more bespoke to reflect local conditions. It also called for local enterprise partnerships to have a greater role in the allocation of funds through the Regional Growth Fund.
DCLG consults on Right to Buy receipt arrangements
The Department for Communities and Local Government has launched a consultation on whether it should stick with its current arrangements relating to how Right to Buy receipts are split between local and central government. The purpose of the proposed amendments is to enable local housing authorities to calculate the “poolable” amount derived from the disposal of assets for the years 2015-2016 and 2016-2017. Special arrangements will be put in place for councils undergoing large scale housing transfers.
Tower Hamlets rejects Pickles criticism
Tower Hamlets Council says there is no need for government-appointed commissioners to run the recruitment process for a chief finance officer at the council. Communities secretary Eric Pickles is considering sending in a team to run parts of the council following a critical report by audit firm PwC. The borough’s mayor Lutfur Rahman said: “There is already an established timetable and committee agreed by all parties in the council chamber for appointments so there is no need for the Secretary of State’s intervention.”
Hull considers benefits of joint venture
Hull City Council is considering setting up a new joint venture company to run the council’s revenues and benefit service. The proposal was unveiled in a budget plan for next year, which aims to save £9m from this year. About 200 staff are expected to transfer to the new company, which will bid to carry out processing work for other councils.
Consultancy unveils valuation tool
Pensions consultancy Hymans Robertson has launched an asset valuation tool for local government pension schemes. The Employer Asset Tracker makes monthly asset valuations and could save pension funds up to 50% on valuation fees, the firm claims, by simplifying the process,
Pensions fund seeks to meet Cameron on infrastructure
The London Pensions Fund Authority is calling for renewed efforts to encourage LGPS investment in infrastructure. In a letter in the Financial Times, the authority’s deputy chairman, Sir Merrick Cockell, said that voluntary asset liability management partnerships across the LGPS, could provide a platform for pooled investments. He said: “LPFA, and I am sure other large LGPS funds, would welcome the opportunity to discuss with the prime minister how best to bring local financing and knowledge to the table and enhance the offer to UK pension funds and overseas investors.”
