News Roundup: Brexit bump, Bromley mandate, Salford bails out stadium, Basildon wins ERDF funding
0LGA eyes Brexit silver lining for councils
Brexit could improve the procurement process for local authorities, according to the Local Government Association. The LGA said that a new system could allow councils more leeway to use local suppliers, specify a minimum local living wage for their suppliers’ employees, or specify additional social value so that companies awarded contracts can be asked to employ or train a number of local people. Kevin Bentley, chairman of the LGA’s Brexit Task and Finish Group, said: “The way councils spend money has a huge bearing on local growth and job creation. But EU rules over how they buy goods and services can stifle those efforts and take up time and money.” Paul Dossett, head of local government at accountancy firm Grant Thornton, said: “The government will need to ensure that any relaxation of the current procurement rules does not undermine the quality, safety or financial viability of the process.”
Bromley launches £50m property fund mandate
London Borough of Bromley’s pension fund is seeking to invest in a £50m pooled UK property fund portfolio. The council has appointed AllenbridgeEpic to manage the procurement of the fund manager for the new mandate. The contract is due to run for 50 years with the option to extend for another 25.
Salford approves stadium bail-out loan
Salford City Council has approved a £630,000 loan to the City of Salford Community Stadium. The loan, which has been provided to avoid the stadium company defaulting on an earlier loan, will be matched by the stadium’s developer Peel Holdings. A report to councillors said the bail-out was “necessary to enable the stadium company to fully discharge its liabilities during the current financial year”.
RDF boost for Basildon market traders
Basildon Council has been awarded a €600,000 share of a project worth approximately €5 million aimed at boosting market traders. The council will receive the cash from the European Regional Development Fund. Linda Allport-Hodge, chair of Basildon Council’s Infrastructure, Growth and Development Committee, said: “People love markets for so many reasons and this funding is great news for our market traders, residents and visitors to the borough.”
Housing association mulls LGPS exit
Housing association Calico Group, based in Burnley, is set to exit the Local Government Pension Scheme. Calico’s liability on the pension scheme stands at £12 million, and each year deficit payments cost the employer up to £250,000. At present, approximately one in ten staff across The Calico Group are members of the LGPS, with most staff members in other pensions. Unions have criticised the proposal.
Torbay to increase borrowing for property
Torbay Council has increased its borrowing limit so that it can invest in more property schemes. The council voted to up its limit from £50m to £200m in an attempt to raise money to close a £5m hole in its budget. Opposition councillors criticised the council for investing in properties outside of its area.
