News Roundup: MPs threaten vote against settlement, Haringey council leader resigns, Birmingham PFI contracts, Guildford borrowing
0Tory backbenchers threaten local government settlement
A band of Conservative rebel MPs could vote against the government’s local government settlement due to concerns over social care funding. Daniel Kawczynski, MP for Shrewsbury and Atcham, tweeted: “Shropshire council is facing a black hole of £10m to pay for rising costs of adult social care. I cannot support proposed settlement until government finds more money to help my council meet these costs.” County councils have complained that a social care transition grant has not been extended into 2018-19.
Haringey joint venture on the ropes
Claire Kober, leader of London Borough of Haringey, has announced she is stepping down from the role, effectively killing hopes for the council’s proposed joint venture with developer Lendlease. The proposal would have seen Haringey put land into the venture, with the development firm providing development capital. The scheme has been the centre of a bitter internal struggle within the borough’s Labour group, culminating in the deselection of pro-HDV councillors.
Birmingham takes PFI schools contracts back in house
Birmingham City Council is progressing plans to take facilities management (FM) contracts for seven schools back in house. The FM arrangements were part of the government’s Building Schools for the Future private finance initiative scheme. A report to councillors said: “The schools and academies impacted have been directly consulted with over the last 18 months. All are supportive and would prefer to end current FM arrangement and take back direct responsibility of FM, and fully understand the implications and requirement to manage this activity within their respective delegated budgets.”
Guildford borrows to invest in student housing
Guildford Borough Council has approved plans to spend £81m on student housing to help meet demand and raise income. The council has approved the plans as part of its investment strategy, which in total will require borrowing of £419m.
Council tax support scheme deadline moved back
DCLG has moved the deadline for council tax support schemes to be agreed from 31 January to 11 March. The move follows a review of the scheme by former Conservative MP Eric Ollerenshaw. In its response, the government said: “Moving the annual deadline from 31 January nearer to when schemes start on 1 April, would give councils more time to consider revisions to their schemes that meet statutory requirements while most effectively providing assistance to those in most need.”
Government announced housing fund winners
The government has announced 133 council projects, sharing £866m of funding, aimed at assisting marginal housing projects in high demand areas. The first wave of funding from the £5bn Housing Infrastructure Fund will fund infrastructure projects to unlock housing schemes. The government claimed the funding could assist with the building of 200,000 homes.
