News Roundup: LGPS property exposure, Kent’s tax wrangle, unlawful parking charges, intern profits, Notts highways
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Kent agrees to pay car journey tax
Kent County Council has settled a wrangle with the taxman and has agreed to pay £179,000 of tax for councillors’ travel expenses. The bill, which includes £12,000 of interest, follows the council’s decision to abide by a ruling from HMRC that car journeys were taxable. Councillors who benefited during a period between 2009 and 2013 will be asked to repay their individual costs on a voluntary basis.
Derbyshire fund set to increase property exposure
Derbyshire Pension Fund is poised to increase its investment in property after missing its return target in 2014. The fund is considering proposals from an independent investment consultant to up its allocation in real estate to 10%. Its internal investment team also wants to see an increase – but only up to 7%
Auditor finds council unlawfully raised parking charges
North Dorset District Council unlawfully raised parking charges to fund other services, according to its auditor. A public interest report by Grant Thornton released its findings in a report instigated after an objection relating to the rise in fees. John Gregory, director at Grant Thornton, said: “North Dorset District Council has recognised its error in 2012/13 and will ensure that all future fees and charges are set in the context of the specific requirements of relevant legislation.”
Sheffield intern schemes has multiplier effect
An intern scheme funded to the tune of £365,000 by Sheffield City Council has generated £1.34m for the city’s economy, according to a report. Economic research consultancy Ekosgen found that the RISE scheme saw 85% of graduates given a permanent job. The scheme pays small firms £1,000 in wages and provides mentoring.
Local government net borrowing increases
Local government net borrowing for the financial year ending in April was estimated at £2.9bn, an increase of £4.4bn compared with the previous year. In 2014/15 LGNB was in surplus by £1.5bn, according to the estimates compiled by the Office for National Statistics. However, its report said the figures are skewed by changes to housing revenue account responsibilities and business rate reforms.
Notts to establish highways JV
Councillors have approved plans to establish a joint venture company to provide highways and fleet management services for Nottinghamshire County Council. The partnership will be set up in partnership with the CORMAC group – a company wholly owned by Cornwall Council. The new company will become operational on 1 April next year, under a 10-year contract which will allow it to generate 20% of its turnover through commercial work.
