News round-up: Devolution rejection, responsibilities delay, Welsh LGPS, development incentive powers
0Greater Lincolnshire devolution deal threatened
Lincolnshire County Councillors have voted against devolution as part of the Greater Lincolnshire Combined Authority. The deal, published in March this year, was intended to involve 10 local authorities across the region. County councillors are reported to be opposed to an elected mayor, a condition of the deal when proposals were signed with the then chancellor George Osborne. Though the details of the deal were published they were subject to ratification by local authorities.
Isle of Wight councillors have also narrowly voted against devolution proposals, this time as part of the Solent Combined Authority. Councillors voted on Wednesday night with some citing fears that the island’s interests could be sidelined by joining with Southampton and Portsmouth in a single council run by an elected mayor. However, there may still be room for manoeuvre. The Isle of Wight vote was on governance arrangements only, not the final deal, according to the County Press newspaper.
LGA calls for new responsibility delay
Councils should be allowed to use newly retained business rates to address a funding gap by 2020 of £5.842bn before the government imposes further responsibilities on them, according to the Local Government Association. In its submission on the forthcoming Autumn Statement, the LGA said: “Once these existing pressures have been fully funded any remaining business rates income should be geared towards assuming responsibilities linked to driving economic growth.”
Welsh LGPS pool submits plans
The eight LGPS funds in Wales have submitted a proposal to government to pool a total of £13bn in investments. A Welsh Local Government Association spokesperson said: “The LGPS funds within Wales wish to appoint a third party FCA regulated operator to establish and run a range of collective investment vehicles (CIVs) to allow the pooling of their pension fund assets.” The aim is for the Wales LGPS pool to be operational a year ahead of the government deadline of April 2018.
DCLG claims fiscal benefits from Troubled Families Programmes
The average cost to local authorities of delivering the Troubled Families Programme was approximately £3,350 per family, according to the Department for Communities and Local Government. It said that the estimated fiscal benefit due to the gross reduction in service use among families one year after intervention was around £7,050 per family, implying a gross fiscal benefit of £2.11 for every £1 spent.
South East councils call for development incentive powers
Unimplemented planning permissions cost councils in the South East around £98.5m in 2014-15, according to partnership body South East Councils. It said: “The current lack of powers to incentivise delivery is creating a housing deficit in the South East. It is also affecting councils’ income and their ability to invest in local services and infrastructure.”
£20m pot for homelessness launched
The government has announced details of a £20m fund for local authorities to trial new homelessness initiatives, focusing on prevention at an earlier stage. Successful bidders will “work with a wider group of at-risk people to help families and individuals before they reach crisis point”, the government said. This could include new resident advice services and outreach work with landlords and private sector tenants.
Councils ‘increasingly polarised’ in cuts response
Councils are becoming increasingly divided in their approach to austerity, according to a new report from Zurich Municipal. In a study carried out for the Society of Local Authority Chief Executives it said: “In 2016 many local authorities are becoming bold commercial entities driving forward communities. For some it is change or bust. In contrast, there are CEOs struggling with community sustainability and funding black holes. They might not succeed. Some local authorities are worlds apart from others.”
