News Roundup: 90% rate retention, banking investigation, Swindon’s debt, LGPS reform
0LGA calls for 90% business rate retention
The Local Government Association says the government should raise the share of locally retained business rates in the forthcoming Budget. In its submission to the Treasury, the LGA said the share of locally retained rates should be gradually raised to 80% or 90% by the end of the decade. It also called on the government to bear the full cost of business rate appeals raised before April 2013, and to protect the social care budget from cuts. The Budget will be unveiled next month.
FCA announces banking investigation
The Financial Conduct Authority has announced that it will launch its first wholesale market study into investment and corporate banking. The decision follows the publication of an FCA review into competition in the wholesale sector. It found issues which could make it difficult for clients to assess whether they are getting value for money, and prevent smaller firms from challenging established large players in the market. The Institute of Directors said the inquiry should prioritise examination of the fund management industry, calling for greater transparency over pay, fees and voting records.
Digital ‘could offer massive savings for councils’
Local government could save £500m a year by embracing digital transformation, according to a new report commissioned by the Department for Communities and Local Government. The research revealed average savings made by councils which have already gone digital have increased from £1m a year ago to £1.4m in 2014. The report found that 86% of local government officials cite legacy ICT systems and infrastructure as the biggest barrier to achieving progress, compared to 73% in 2013.
Hull closes care homes PFI deal
Hull City Council reached a deal on financing for a private finance initiative for its Extra Care Housing project in December, the Treasury has revealed. The council has secured £80m to build 316 extra care apartments at three locations in the city. The facilities are being designed, built and operated by Riverside Housing.
Swindon debt set to rocket
Swindon Council is set to increase its borrowing by more than 50% over the next three years. Its debt will stand at £185m at the end of 2014/15, but is set to rise to £290m by April 2018. The council says that the level of debt is manageable and that it will eventually result in a return to the council.
Coventry poised to sell council offices
Coventry City Council is next week set to sell a number of buildings to Coventry University. The council will move out of the buildings for a new home at the Friargate regeneration scheme. The university is committed to investing between £100m and £125m in the sites over the next five years, which the council says will generate £100m a year for the city’s economy from 2020.
LGPS passive management reforms ‘unlikely before election’
The coalition government is unlikely to proceed with plans to force council pension funds to only use passive management arrangements, according to a leading consultant. John Raisin told the Municipal Journal: “This seems to have gone quiet since Brandon Lewis was moved from the pensions brief. I think this might well go away until after the election.”
