News round-up: council tax rises, Swindon’s solar bond, PWLB fair value figures, Housing association merger talks
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Council tax rises 3.1%
The average Band D council tax level set by English councils in 2016/17 will increase by 3.1% over the previous year, according to Department for Communities and Local Government figures. The government said that the adult social care precept makes up just less than half of the increase. The average Band D taxpayer will now pay £1,530 for the year.
Swindon progresses towards solar bond target
Swindon Borough Council has raised 41% of the £1.8m it is hoping to raise through a new retail bond aimed at funding solar farm development. The council will also invest £3m, with the proceeds used to fund construction of the Swindon Community Solar Farm at Common Farm in Wroughton.
PWLB figures published
The Debt Management Office has published figures to help local authorities calculated the fair value of their PWLB loans. Councils have to assess the value at the end of each year end. “PWLB has also provided a calculation that has been useful to borrowers in previous years, which calculates a value for each loan at the end of the financial year as the aggregate net present value of future cash flows, discounted using the appropriate discount rate taken from the premature repayment set of rates in force at close of business on the last working day of the financial year”. The figures are available here.
Housing associations in merger talks
Three housing associations – L&Q, The Hyde Group and East Thames have entered into merger talks with a view to creating one of the country’s top four largest house builders. The associations say that they will be able to build 35,000 more homes together than they would have been able to apart. Housing minister Brandon Lewis said: “This shows what can be achieved by combining the strengths of each organisation.”
Betts calls for settlement clarity
Clive Betts, chairman of the House of Commons communities and local government select committee, has urged chancellor George Osborne to provide assurances on local government finances. In a letter, he said: “This is the question of the four-year settlements offered to local councils: can you give me your assurances that these still hold good and that they will not be affected as a result of the savings needed to fund the budget?”
Local authorities guided to buy British steel
Local authorities will now be required to consider the social and economic impact of the steel they procure for major projects, in a bid to prop up the industry. The government has extended central government guidance introduced in October to councils. Business secretary Sajid Javid said: “By changing the procurement rules on these major infrastructure projects we are backing the future of UK steel – opening up significant opportunities for UK suppliers and allowing them to compete more effectively with international companies.”
Northern Trust in Brent win
London Borough of Brent has appointed Northern Trust to provide global custody, performance measurement and valuation reporting services for its £650m pension fund assets. The award is the seventh for the investment manager under the National Local Government Pension Scheme Framework.
