News round-up: Bond Agency launch, Right to Buy delays, Birmingham’s budget troubles, business rates split
0Bonds agency promises imminent inaugural issue
The Municipal Bonds Agency (MBA) says that it is close to issuing its first bond worth around £100m. The long-awaited issue hangs on just one of the initial council borrowers signing off on the deal, according to MBA chief executive Aidan Brady. Brady said: “We have got a group of councils lined up. We are waiting for one and as soon as that drops we will complete the relevant paperwork to issue the bond.”
Charities press for social care funding
Three influential health charities have called on chancellor Philip Hammond to plug a £1.9bn social care funding gap in his Autumn Statement. The Health Foundation, The King’s Fund and the Nuffield Trust have published a briefing saying that the chancellor should bring forward planned increases in social care funding through the Better Care Fund. It said social care spending by local authorities was cut by 9% in real terms between 2009/10 and 2014/15.
Councils offered £140m to deal with immigration
The government is asking councils to bid for cash from a new £140m fund to help deal with the impact of immigration. The fund will be available to support authorities experiencing pressures over four years from this year. £100m will be available to help authorities ease pressures on local services while £40m will fund direct enforcement against illegal immigrants.
Right to Buy proposals delayed
Councils look set to escape a new levy on their higher value homes to fund the extension of Right to Buy in April. The government has still not published regulations on how the system — originally due to be introduced at the beginning of the next financial year — will work. Speaking before the parliamentary communities and local government select committee, housing minister Gavin Barwell said: “We haven’t taken a decision on timing yet but we have a statutory duty to consult councils before making any determination setting out the payment that would be required, and the regulations require affirmative procedure in the House. So, there’s clearly quite a big process that we have to go through before we could start making charges.”
CCLA announces new chairman
Richard Horlick has been announced as the new chairman of local authority fund manager CCLA Investment Management. Horlick will replace James Dawnay, who is retiring following 12 years in the role. Horlick has previously worked as chief executive of Schroders Investment Management Ltd, president, institutional business at Fidelity International Ltd (UK) and director of Newton Investment Management.
Birmingham budget reductions ‘unrealistic’
Birmingham City Council faces a £49m overspend this year, according to a government-appointed panel which is now overseeing the council. In a report to communities secretary Sajid Javid, the panel said that the council admitted that a number of its 2016/17 budget reduction proposals are unrealistic. The council will dip into its reserves but still faces a further £78m of savings to make the 2017/18 budget balance.
Scottish Government rebuked over tax reform failure
The Scottish Government has been forced to accept that it should have done more to reform council tax in order to force through proposed rises for top band properties. The Scottish Parliament has voted to approve the hikes which are set to raise £100m for education initiatives – but only after an amendment from the Scottish Greens which commits the government to doing better in future on reform.
Councils to chew over business rates split
Counties and districts will meet this month to discuss the split of receipts each will receive under business rates reform. According to PublicFinance, the meeting will take place to discuss arrangements under the 100% devolution of rates set to take place from 2019/20. Currently, districts take 80% of receipts, with counties receiving the remainder.
