News round-up: Bank ratings, audit body named, business rates, Scottish business rates, RTB regulations delay
0
Rising capital levels unlikely to raise bank ratings
Growing capital levels will be unlikely to lead to an upgrading in ratings for UK banks, according to Standard & Poors. The ratings agency this week said that UK banks’ capital levels will continue to rise closer to its 10% threshold for a strong capital and earnings assessment over the next 18 to 24 months – remaining higher than European peers. But it said: “We doubt that rising capitalization alone will lead to upgrades in the near term. This is largely because of systemic economic uncertainty following the Brexit vote, which we reflect in our mainly negative outlooks on U.K. banks. Moreover, we also see sustainable profitability supporting banks’ business franchises and strategic objectives as a prerequisite for an upgrade.”
Council audit body appointed
The government has named Public Sector Audit Appointments (PSAA) as the body authorised to make future audit appointments on behalf of principal local authorities. Almost 270 councils and other local bodies have already expressed an interest in joining the national scheme which PSAA will now develop and manage. PSAA has prepared an initial draft prospectus and is inviting views from bodies on the arrangements including the views on the optimal length of the initial term of the auditor appointments.
Khan to reheat devolution proposals for London
London mayor Sadiq Khan has re-established the London Finance Commission to bring forward new devolution proposals for the capital. In 2013, the commission proposed devolving revenues streams including council tax, stamp duty land tax and business rates to the capital. Khan has already held initial discussions with the new chancellor of the exchequer, Philip Hammond, who indicated that he is open to further devolution for London.
Scottish business rates group calls for evidence
The Barclay review group looking at the future of business rates in Scotland has made a call for submissions. The group has been created to make recommendations to reform the business rates system and will report to Scottish ministers in July next year.
No quick end for EU procurement rules
Procurement rules for local authorities are likely to remain in place into the medium term, according to a new Parliamentary paper on the impact of Brexit on local government. The paper said that the European Union rules have been implemented through UK law so are unlikely to immediately disappear. The paper also cited a recent report by Room151 that the PWLB saw a spike in loans from the Public Works Loan Board in advance of the EU referendum.
Delay in details of Right to Buy home sale requirements
Publication of the government’s definition of higher value void properties which councils will be forced to sell to fund the extension of the Right to Buy to housing associations has been delayed. Initially, regulations were due to be published by July, but DCLG officials have reportedly indicated that details of the levy are now unlikely to appear before September.
Barnet signs Brent Cross regeneration deal
London Borough of Barnet has signed an agreement with development partners Argent Related, Hammerson and Standard Life Investments to regenerate the Brent Cross area. The scheme will create 7,500 homes, 27,000 jobs, three schools plus an additional Thameslink train station. In addition to a redevelopment of Brent Cross shopping centre, it will also create new road and public transport improvements.
