News round-up: Birmingham’s CEO departs, council property sales rocket, settlement slammed, Norther Powerhouse bond
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Mark Rogers. Photo: Birmingham City Council, Flickr
Birmingham chief executive leaves post
Mark Rogers, chief executive of Birmingham City Council, has left the authority, just days before its budget was agreed. The departure comes just three months after a government commission said that the authority was facing a “mammoth” task to balance its budget. Rogers has also made critical comments about the government’s austerity policies.
Huge rise in council property sales
Local authorities almost doubled their receipts from the sale and disposal of property in the final quarter of 2016. According to figures released by the Department for Communities and Local Government, sales and disposals of tangible fixed assets rose from £623.5m between July and September to £1bn in the following quarter. Total capital expenditure fell slightly from £5.6bn to £5.3bn.
Final local government settlement slammed
The Local Government Association has expressed disappointment that the government has not provided any new funding for councils in the final local government finance settlement. In a statement, LGA chairman Lord Porter said: “Cuts to New Homes Bonus funding will leave two thirds of councils having to find millions more in savings than expected to plug funding gaps next year. Extra council tax income will not bring in anywhere near enough money to prevent the need for continued cutbacks to local services, including social care.”
IPPR’s Northern Powerhouse paper
Call for Northern Powerhouse infrastructure bond
The government should work with the Municipal Bonds Agency to launch a Northern Powerhouse infrastructure bond, according to think tank the IPPR. In a report released this week, it said that individuals should be able to make tax-free investments in the bond as part of their personal pension plans. The report also called for the removal of local borrowing caps to allow local areas and subnational bodies to borrow more freely on international capital markets.
Business rates income set to reach £23.8bn
Local authorities estimate the business rates income for 2017-18 will total £23.8bn. Local authorities report they will grant a total of £3.8bn of relief from business rates in 2017-18. Of this £2.7bn is the cost of other mandatory relief, £908m is the net cost of small business rate relief and £127m the cost discretionary relief.
