News Roundup: PWLB borrowing reaches £464m, MHCLG returns unspent £817m to Treasury, US firm enters advice market
0PWLB borrowing reaches £464m in February
Councils borrowed £464m from the Public Works Loan Board during February, according to figures released by the Debt Management Office. The figure is up on January’s £315m. The biggest sum was borrowed by Wolverhampton City Council, which took £50m in three loans with durations of 16, 22 and 33 years.
Highest council tax rises ‘for 14 years’
Council tax payers face the highest rise in their bills for 14 years, according to statistics from CIPFA. The institute’s annual council tax survey found an average council tax increase of £81.05 (5.1%) for next year. Rob Whiteman, CIPFA chief executive, said: “This sharp rise in council tax across the country reflects the enormous financial pressures many local authorities are currently under. Local government has made by far the biggest efficiencies in the public sector since 2010, but now it feels like crunch time, with the consequences of earlier funding cuts really beginning to bite.”
Housing ministry returns cash to Treasury
The Ministry of Housing, Communities and Local Government has returned £817m of unspent cash to the Treasury. According to website Huffington Post, the money includes £329m for the government’s Starter Homes programme, £72m for affordable homes and £52m for estate regeneration. Labour’s shadow housing secretary, John Healey, said: “If the secretary of state can’t defend his department’s budget from the Treasury he should give the job to someone who can.”
US firm enters council financial advice market
PFM (Public Financial Management), which provides advice to US cities, states, and utilities is set to launch in the UK. PFM said it was entering the market due to a demand for financial advice among local authorities and because of the “changing rules around where local authorities can borrow from, such as alternatives to the PWLB.” The firm added: “PFM works exclusively with government and public sector clients. This means it understands their specific and unique needs, while recognising the pressures under which they operate.”
Liverpool finance chief announces departure
Becky Helland is to step down from her role as Liverpool City Council’s finance director on 11 March, according to reports. The Liverpool Echo said that the announcement was made to councillors in an email from assistant chief executive Catherine Garnell. Hellard joined the council in 2012 and will be replaced by Peter Casterton, according to the report.
LGA says council tax rises won’t protect services
Extra income from council tax rises will not protect services, the Local Government Association has warned. LGA chairman Lord Porter said: “The extra income this year will help offset some of the financial pressures they face, but the reality is that many councils are now beyond the point where council tax income can be expected to plug the growing funding gaps they face. Extra social care funding will be wiped out by the significant cost pressures of paying for the government’s national living wage and extra general council tax income will only replace a third of the central government funding they will lose this year.”
