News round-up: Green light for LPP pool, finance settlement timing slammed, social impact bonds
0LPP given pooling green light
The Local Pensions Partnership — a £14bn tie-up between Lancashire County Pension Fund and London Pensions Fund — has been given a go ahead with its LGPS pooling plans. A letter from local government minister Marcus Jones told the pool: “LPP remains significantly below the minimum scale of £25bn which we set last year, which will limit the net returns achievable compared to larger pools. I am aware that you are exploring partnerships with funds both within and outside the LGPS, in addition to GLIL, including the possibility of working with other LGPS pools as pool operator. I continue to expect you to deliver increased effective scale in order to reduce costs and will review the position in the spring.”
SOLACE slams finance settlement timing
The representing council chief executives, SOLACE, has called the late issue of the provisional 2017/18 local government settlement “extremely problematic”. In its response to the government consultation on the settlement, it said: “Local authorities, who have a duty to consult with local people over changes to local service delivery, will have little chance to do so in a way that meets legislative and case law expectations if they are to set a budget in the required timeframe and meet all legal obligations, e.g. sending out council tax invoices. A more timely and joined up release of information from government departments would greatly assist the local government sector in meeting their legal obligations.”
Government launches new social impact bonds round
Councils can bid for a new round of the Life Chances Fund to create social impact bonds, the government has announced. The first application round, launched in July, saw £760,000 awarded to local service providers to combat drug and alcohol dependency and to support children’s services. Investors will be repaid on the basis of specified social outcomes being achieved.
LGPS pool seeks chair and directors
The £23bn Brunel Pensions Partnership has begun a hunt for an independent chair and two directors. In a job advert, the pool of 10 South West local government pension funds said: “We are seeking a leader whose experience will have been gained in the investment sector, or who may have been a CEO or senior director from the corporate, legal and/or financial services private sector, or may have led a significant public sector or not-for-profit organisation.”
Legal joint venture scoops contracts
Legal services joint venture LGSS Law has been appointed to provide support to Bedfordshire Fire and Rescue Authority and housing association Flagship Group. The social enterprise is jointly owned by county councils in Bedfordshire, Cambridgeshire and Northamptonshire.
