News round-up: Business rates consultation, transparency complaints, EU funding guarantees, investment fund launch
0Business rates consultation closes
The government’s consultation on business rate localisation has closed. The Institute for Fiscal Studies’ response said the proposal is a positive step towards greater financial autonomy for local authorities, but warned that a major redistribution of resources at the outset of the scheme could create financial uncertainty for a decade. Industry groups have warned that businesses should not be regarded as a “cash cow”.
Councils slammed over financial transparency
Councils are withholding information about how public funds are being spent through contracts with the private sector, according to campaigners. Transparency International UK said that redactions in contract documents released to the public are hiding the identity of some suppliers. Its report said the London Borough of Hackney had reported £14m of transactions in one month without identifying suppliers.
Norfolk CC working LGPS framework
Norfolk County Council is working on a framework for the supply of services to the LGPS prompted by State Street’s decision to withdraw from providing analytical services. The county is acting on behalf of four local authorities and one asset pool but the framework will be open to other LGPS funds.
Hammond extends EU funding guarantee
Chancellor Philip Hammond has extended a guarantee to continue supporting projects funded by the European Union. Initially, the government said it would provide cash for projects signed before the Autumn Statement. But at the Conservative Party conference this week he said that the pledge would now extend to all projects signed before the UK leaves the EU.
LGPS guidance issued
The Chartered Institute of Public Finance and Accountancy and consultancy firm Aon Hewitt have issued guidance on governance arrangements for emerging Local Government Pension Scheme pools. The guidance identifies issues that joint oversight committees need to take into account, and sets out principles for adapting current governance arrangements.
Council invests in hydro-electricity project
Bath & North East Somerset Council is investing in a new hydro-electric community-owned energy project on the River Avon. The council’s £130,000 loan will cover half the capital costs of the scheme, with the remainder (£131,000) made up by investment through a community share issue.
$500m infrastructure fund launched
AllianzGroup has teamed up with the International Finance Corporation to launch a $500m (£393m) fund investing in infrastructure projects in global emerging markets. “Modern infrastructure is essential for economic growth and lasting prosperity,” said IFC chief executive Philippe Le Houérou. “Yet a huge investment gap exists in this sector—totalling trillions of dollars a year in emerging markets alone.
