New Homes Bungle, Euro Funding, Teesside Pension Fund, Seaside Funding, London Housing Contracts
0Auditor shines spotlight on New Homes Bonus counting bungle
The National Audit Office says that an “arithmetical error” in the government’s calculation of extra new homes reduces the supply of new housing by 8-13%, or 32,000 homes. The estimate was produced by DCLG, says the NAO, “using very limited evidence”. A 42-page report from the Office stated that it had: “found little evidence that the bonus has yet made significant changes to local authorities’ behaviour towards increasing housing supply.” The report added that as the scheme is funded by redistributing formula grant, authorities in areas where new homes are less likely to be built face losing large amounts.
England’s EU fund reduction unfair, says LGA
The Local Government Association has responded angrily to news that the government has re-allocated EU structural funds. Following a new Europe-wide formula for allocating the funds, the UK government said that the devolved administrations of Northern Ireland, Scotland and Wales would not receive a fair distribution, and re-allocated to counteract the effect. However the LGA called the move a “huge blow to English towns and cities”. England will receive 11% less than previously expected. “This funding announcement means it is even more important for the government to follow through with a more devolved approach to funding and to fully commit to Local Growth Deals and Heseltine’s proposals for a single pot to reflect local needs,” said LGA chairman Sir Merrick Cockell.
Second tranche of seaside funding available
Seaside towns may now apply for funding from the £27.8m Coastal Communities pot. The scheme is in its second year and provides money for regeneration schemes, heritage areas and leisure facilities. Last year 26 projects in England in areas including Scarborough and Sunderland received funding.
Teesside Pension Fund appoints Aon Hewitt
Middlesbrough Borough Council has appointed Aon Hewitt to provide actuarial consulting services to the Teesside Pension Fund. The council is one of the first to procure actuarial services through the national framework agreement established last year by Norfolk County Council to help funds procure more effeciently. The £2.5bn Teesside fund has 60,000 members.
London borough saves on housing contracts
Hammersmith and Fulham Council is to save millions through two new housing contracts. The council has outsourced housing management in the South of the borough and awarded a repairs and maintenance contract to MITIE Property Services. The repairs contract should bring in a saving of 10% per year, or £20m over ten years. The borough abolished its ALMO two years ago, and according to its cabinet member for housing, saved millions in that process.
