News Roundup: Settlement leads to ‘grave concerns’, auditing report, LGPS funds buy into Anglian Water, procurement framework saves £88m
0Funding of social care a “grave concern”
Continued reliance on the council tax precept to plug the gap in funding for adult social care is a “grave concern”, according to the Society of Local Authority Chief Executives. Jo Miller, president of SOLACE, said: “It will come as a relief to most local authorities that the planning assumptions underpinning the budget proposals they have already had to go out to public consultation on are not significantly challenged by the provisional settlement. It is positive that the Government has recognised the importance of continuity and will not be making changes to New Homes Bonus in the coming year. That said, the continued reliance on the council tax precept to plug the gap in adult social care is of grave concern. It does not provide any kind of long term fix and only seeks to further distort an already regressive tax mechanism.”
30 councils raise value for money concerns
A report on auditing local authorities reveals 30 councils faced qualified conclusions on value for money, according to Public Sector Audit Appointments (PSAA). The report also showed that councils slowed in their reporting. 92% of auditors (331 out of 357) were able to achieve opinion on accounts by 30 September 2017, compared to 96% in the previous year. PSAA said: “This is a disappointing development in the context of the challenging new reporting timetable from 2017-18.” PSAA added: “The timeliness and quality of financial reporting for 2016/17, as reported by auditors, remained broadly consistent with the previous year for both principal and small bodies.”
London and Manchester pension funds join in 15% acquisition of Anglian Water
GLIL, the infrastructure investment joint venture between Greater Manchester Pension Fund (GMPF) and London Pensions Fund Authority (LAPF), is to participate as a 50:50 partner acquiring a 15% stake in Anglian Water Group. GLIL will partner with Dalmore Capital to make the investment. Kieran Quinn, chairman of GMPF, said GLIL was “delighted to be acquiring such an exceptionally well-run company, meeting our strict investment criteria.” Sir Merrick Cockell, chairman of LPFA, said: “Pension fund investment is key to UK infrastructure development. This investment in AWG demonstrates our commitment to sustainable infrastructure investing.”
National frameworks save £88m
National LGPS Frameworks, a procurement collaboration of LGPS funds and pools, says it has so far saved £88m in fees. The news came as the body launched a new framework for procuring investment management consultancy services. Nicola Mark, head of Norfolk Pension Fund and chair of the National LGPS Framework, said: “It is hard work to set up and manage these frameworks and requires huge dedication from the Funds and professionals who give their time and expertise to establish and help manage them. This is real collaboration in action, already delivering tangible and significant savings and benefits for the LGPS today”.
