News Roundup: HRA cap flexibility, social impact bond, mansion tax, pooling framework
0HRA cap flexibility considered in wake of Grenfell
The government is in discussions about relaxing finance rules to allow councils to carry out fire safety repairs in the wake of the Grenfell Tower disaster. Speaking to the House of Commons local government committee, communities secretary Sajid Javid said that 31 councils have approached his department about assistance. He said that departmental officials were in detailed discussions with six authorities. “The kind of discussions we are having with the six local authorities in more detail is around either in their housing revenue account—more headroom to borrow. One or two have made requests saying is it possible that there could be a transfer from general fund to the HRA. We are considering that as well.”
LGPS pooling prompts framework extension
A multi-provider framework covering global custody services for Local Government Pension Scheme funds has been extended due to uncertainty caused by the pooling process. The framework, run by Norfolk Pension Fund on behalf of a number of LGPS funds, will be extended for another 18 months. The council said: “The LGPS is currently undergoing major changes with the introduction of pooling arrangements and until these changes are established, it is not possible to predict or identify the changes that will be required to the services provided under the Framework Agreement.” The six managers on the framework are BNP Paribas, HSBC, JP Morgan Chase, Northern Trust, State Street and Bank of New York Mellon.
‘Difficult’ settlement for Welsh councils
Funding for local government in Wales will fall by 0.5% next year, the Welsh Government has announced. Councils will receive £4.2bn in core funding, although an additional £62m will be made available for schools and £42m for social services in 2018/19. Welsh local government secretary Mark Drakeford said: “Next year’s settlement might be difficult. We have done all we can to make it manageable. Councils must now use this time to plan ahead and ensure that funding goes to the services and people who need it the most.”
Burnham launches homelessness social impact bond
Manchester mayor Andy Burnham has announced a £1.8m social impact bond aimed at tackling homelessness. The bond, one of just eight approved so far, will harness private sector funding to help provide housing and employment for the homeless. Burnham said: “This is a crisis unfolding before our eyes and will only be solved if we work as one and bring the contribution of public, private and voluntary sectors together.”
Westminster moots voluntary ‘mansion tax’
Westminster City Council is preparing to introduce a voluntary tax on homes worth more than £10m. The council hopes to raise £2.75m from owners in 2,000 of the highest band properties, enabling it to freeze bills for the rest of its residents. The council is asking the government to allow an amendment to the Local Government Finance Act 1922 to enable the measure. Nickie Aiken, leader of WCC, said: “There is no appetite from central government to revaluate council tax, but we believe we have come up with a method which will allow the well-off to voluntarily help those just about managing.”
Public sector accountancy apprenticeship launched
CIPFA has teamed up with the Association of Accounting Technicians (AAT) to deliver an apprenticeship programme for aspiring public sector finance professionals. The new pathway will take students through AAT’s advanced and professional diplomas in accounting and then onto CIPFA’s public sector finance professional qualifications. Rob Whiteman, chief executive of CIPFA, said: “Public sector accountants are the bedrock of the services we all rely on and it is vital therefore that tomorrow’s public finance professionals have access to the best available training today.”
