New Roundup: £30bn devolution, Herefordshire delays loan, Right to Buy powers, financial planning in Wales, Newport’s asset sale

Labour pledges to devolve £30bn in spending
Funding of £30bn will be devolved to the all regions if Labour is elected in May, the party has declared. The party launched its vision for local government this week, promising councils powers over bus routes, local rail networks and employment schemes. The party said: “We believe in devolution to create economic powerhouses, not just in one or two parts of the country, but in every city and county region.”

£2m loan for PFI deal delayed by Herefordshire
A clause allowing Herefordshire Council to delay purchasing of a share in a new waste incinerator is to be triggered by the authority. The decision means it has put off borrowing almost £2m to cover acquisition of a quarter of the facility in Hartlebury.  Instead, the purchase, which forms part of a PFI deal including Worcestershire County Council and Mercia Waste Management, will be completed in 2023.

LGA demands more powers over Right to Buy receipts
More powers are needed for councils to spend Right to Buy receipts on replacement homes, according to a survey by the Local Government Association, Chartered Institute of Housing (CIH), and the National Federation of ALMOs (NFA). The poll reveals 73% of councils feel the current system only allows them to replace half or fewer of the homes they sell under the policy. The three bodies called on the government to give authorities more flexibility to combine the receipts with other grants, funding and land to deliver replacement homes.

Welsh councils at “financial tipping point”
Financial management at Welsh councils needs to embrace transformational change if they are to remain fit to meet growing challenges, according to a watchdog. A report by the Wales Audit Office found that although most councils set clear corporate objectives they need to ensure their medium-term financial and service plans are sufficiently joined up to deliver the priorities. Auditor general for Wales, Huw Vaughan Thomas, said: “Welsh councils are facing a financial tipping point.”

Newport ponders asset sale
An asset sale to fund front line services is under consideration by Newport City Council in South Wales. Management of the council’s commercial estate is under review to consider how 400 buildings and 1,000 parcels of land could be managed more efficiently.  The estate currently brings in an annual income of more than £1m.

Q3 capital expenditure reaches £5.367bn
Total capital expenditure by English councils rose to £5.367bn in the third quarter of 2014-15, according to new statistics released by the Department for Communities and Local Government. The sum compares to a second quarter figure of 4.822bn, and is the largest third quarter capital spending figure since 2010-11.