News Roundup: Borrowing surplus falls, low carbon fund, roadwork penalties, New Homes Bonus
0Local government borrowing surplus falls
Local government net borrowing (LGNB) for the financial year-to-date (April 2015 to December 2015) was estimated to be in surplus by £0.9bn, according to figures released by the Office for National Statistics. The figure was a decrease in surplus of £0.4bn on the same period in the previous year, and was mainly attributed to decreases in grants received from central government, particularly in April.
Swansea makes regeneration appointments
Swansea Council has appointed two developers to manage the regeneration of two city centre sites. Rivington Land will build a 3,500 seat arena plus homes and commercial development on the site of a former shopping centre. Trebor Developments will lead the regeneration of the former civic centre site for homes, cafes, restaurants and a new public aquarium.
Haringey shifts to low carbon pension fund
Haringey Council in London has voted to move one-third of equity investments held by its pension fund into a low carbon fund. The decision will see around £200m in passive equity exposure moved into the MSCI World Low Carbon Target Index Fund, run by LGIM.
Authorities face roadworks penalties
Councils face fines of up to £5,000 a day if road works and temporary traffic lights are left in place unnecessarily. The proposals would mean that workers on ‘A’ roads, which are managed by councils, will either have to work over weekends – so projects are finished sooner – or lift the works until they resume. Transport secretary Patrick McLoughlin said: “Roadworks can be essential, but that doesn’t mean they should be in place any longer than is absolutely necessary.”
Flood-hit councils could get more council tax
Councils in flood-prone areas could be allowed to raise council tax bills by an additional £15 per household, according to environment minister Liz Truss. Truss told a committee of MPs that she supported a model being introduced in Somerset to pay for preventive measures. The shadow precept could increase the average council tax bill in the area by 1.25% this April, according to the Daily Telegraph.
Funding move ‘could harm housing growth’
Moves by the government to shift £800m out of the New Homes Bonus (NHB) to fund adult social care could stymie housing growth, according to the District Councils’ Network. In its response to the government’s consultation on the local government settlement, it said: “Reducing the funding available for NHB may result in local authorities feeling less incentivised to deliver housing growth and/or not being rewarded for some housing growth that they have already consented (but has yet to be built).”
Councils slam Swinney over settlement deadline
Scottish finance Secretary John Swinney has given Scottish councils until 2 February to accept his “challenging but fair” financial settlement. The Convention of Scottish Local Authorities, says the settlement amounts to a £350m (3.5%) budget cut that could lead to the loss of 15,000 council jobs. It said: “Given Mr Swinney only furnished councils with the final proposals for the settlement today it is difficult to see how he expects any council to comply with this timescale.”
