News round-up: Shires and business rates, CIV supplier for Welsh LGPS, bond issue and absolute return probe
0Shire counties lose out on business rates
Shire counties receive dramatically less business rate income per head compared to urban areas, according to a new study. A report by Pixel Financial Management, for the County Councils Network (CCN), found that rateable values per head in the capital now average £3,700 compared to £851 in county areas, due to relief claimed by a larger number of businesses. CCN said that if the new system for business rates retention is not properly designed, “it could leave underfunded services for the vulnerable and elderly in county areas worse off at a time of growing demand”.
Welsh LGPS funds investigate CIV supplier
The Welsh Local Government Pension Funds pool has issued a prior information notice for a supplier to provide its collective asset vehicle. The funds intend to carry out market engagement to inform the specification of any services they tender for. They say that they expect to issue an invitation to tender later this year.
Regulator launches absolute return probe
The Financial Conduct Authority has launched an investigation into absolute return funds. The inquiry was prompted after concerns about how the strategy is marketed to retail investors. Two thirds of UK-domiciled absolute return funds have posted negative returns in 2016, according to the Financial Times.
Places for People in £400m bond issue
Housing association Places for People has taken advantage of low gilt yields to launch a £400m bond. The 10-year unsecured bonds at a coupon of 2.875% were understood to be oversubscribed with orders of £1.3bn, according to Inside Housing.
No plan for Scottish business rate cuts
The Scottish investment minister has said there is no immediate plan to cut business rates following the UK’s vote to leave the European Union. Scottish Conservatives had urged the Scottish government to implement a five-year non domestic rates freeze. Brown said the tax would be reviewed in due course.
CIPFA reveals waste spending
Councils in England and Wales spent £2.38bn on waste services in 2013/14, according to new figures from the Chartered Institute of Public Finance and Accountancy (CIPFA). The data found that local authorities recovered around 16% of the total costs from fees, charges and income.
