News Roundup: Manifesto cuts, LGPS legal challenge, Manchester dev doubts, Lutfur Rahman, £1m solar scheme,
0IFS outlines likely scale of local government cuts
The Conservative Party manifesto implies spending cuts to local government of 15.3% between 2015 and 2019, compared to just 0.7% under Labour’s plans, according to the Institute for Fiscal Studies. A report into the parties’ general election 2015 pledges looked at the cuts likely across “unprotected” areas of government spending. Scottish National Party plans would require 2.5% of cuts to non-ringfenced areas, the IFS said.
Legal action floated to block passive management for LGPS
LGPS managers could launch legal challenge against a mandatory shift to passive management, according to reports in a trade publication. The suggestion comes after website Investment & Pensions Europe (I&PE) quoted John Hattersley of South Yorkshire Pension Fund saying he had heard the issue mentioned by a number of LGPS. Proposals for the future of LGPS have yet to be finalised after a review was published last year. A decision was postponed until after the General Election.
Tower Hamlets mayor removed from office
Lutfur Rahman has been removed as mayor of the London Borough of Tower Hamlets with immediate effect after an election commissioner ruled he was guilty of electoral fraud. Rahman was found to have committed a number of breaches of electoral rules. Commissioner Richard Mawrey also found former cabinet member for resources Alibor Choudhury guilty of corrupt and illegal practices, saying of his evidence: “He was arrogant, indeed cocky, and did not hesitate to tell bare-faced lies in the smug assurance that the mere lawyers listening him would not have the wit to see through them.”
Hampshire to increase solar income
Hampshire County Council is to invest £1m increasing the number of solar panels installed on its buildings. The council has made the decision following a successful pilot project. Once investment in the solar panels has been recouped, they will provide long-term free electricity, along with a revenue income to the from the government’s feed-in tariff, the council said.
Councils slash sports and leisure funding
Local authorities have slashed more than £42m from sport and leisure budgets since 2010, according to research by the BBC. The biggest cuts were in London and the North West, which both saw cuts of more than £12.3m. Sports stars and charities warned that cutting facilities could harm health and fitness levels and could be a false economy.
Greek local government bails out national coffers
The Greek government has issued a decree forcing local government bodies to transfer all their cash balances to the country’s central bank. The move happened as pressure on the country increases in the run up to a deadline to repay debt to the International Monetary Fund.
Labour voices doubts over Manchester health deal
Labour may reverse a government decision to devolve £6bn of NHS funding to Greater Manchester Combined Authority, if elected. The coalition last month said that it would devolve the cash for health and social care to the region’s 10 councils and health groups. Speaking this week, Labour’s health spokesman Andy Burnham said that the deal was “drawn up in haste on the back of an envelope” and that he had misgivings.
