New LGA chair, Salford debt write-off, Housing association risk, Transformation fund…
0Sparks to become LGA chair
David Sparks will become the first Labour chair of the Local Government Association for 10 years following local elections last week. Sparks, leader of Dudley Metropolitan Borough Council, was nominated by the LGA’s Labour group after the party became the largest group within the body. Sparks said that he would continue the consensus approach which he said he had been adopted by his predecessor Sir Merrick Cockell. He said: “There is a desire across the political spectrum for the LGA to be robust in our dealings with government, while able to work constructively with ministers.”
Salford housing debt written off
The government has written off Salford City Council’s historic £65.1m housing revenue account debt. The decision clears the way for a deal for the council to transfer its 8,500 homes to not-for-profit company Salix Homes, which currently manages the properties. If tenants vote to approve the transfer later this year, Salix Homes will invest £75m to ensure that all the homes will reach the government’s Decent Homes standard by 2020.
Moody’s warning over housing association sales strategies
Housing associations building homes for market sale are vulnerable to greater credit risk, according to ratings agency Moody’s. In a report released this week, it said that associations building homes for sale would expose themselves to sales revenue volatility and delivery risks. Although year-on-year sales can strengthen surpluses and cash interest cover, Moody’s “views outright sales as riskier than traditional social housing management”. A number of councils have announced loans to housing associations in recent months.
Transformation fund deadline moved
Ministers have extended the deadline for councils to apply for a share of a new £15m fund aimed at encouraging the sharing of senior management and IT systems. The original deadline for applications has been put back from 1 July to 1 October following concerns that some councils might not be able to obtain political sign-off for their bids. Last year’s Transformation Challenge Award 2013 to 2014 saw 18 successful bidders, with 44 local authorities and five fire authorities benefiting from funding.
Welsh councils ‘need to show better scrutiny outcomes’
Councils in Wales are working hard to improve their scrutiny processes but the results are unclear, according to the Welsh auditor general. In a report released this week he said that there was “clear enthusiasm” from councils to improve outcomes, matched by significant investment. But he added that councils need to do more to demonstrate the impact of scrutiny and clarify the role scrutiny committees play in promoting improvement and challenging decisions.
More cash to assist enterprise zones
The DCLG has announced another tranche of funding to help enterprise zones deal with infrastructure issues. This week, local growth minister Kris Hopkins said that the cash would go to zones in Bristol, Manchester, Great Yarmouth and Leicestershire. The new money will be used to fund road, utility line and building construction aimed at encouraging business opportunities at enterprise zone sites. The funding was the remaining part of a £550 million package of support.
