News Round-up: Social care and council tax, business rates reform, Cambridge prepares for NHS blow, ratings and Brexit
0Government set to fight shy of radical business rates reform
The government is unlikely to propose radical changes to business rates following its ongoing review of the system, according to the Daily Telegraph. The paper said that it understands the government is likely to reject calls from business for a move to uprating using the consumer price index, rather than the retail price index. It is also not in favour of more frequent revaluations, the paper said.
Most councils to take social care council tax option
Nine out of 10 councils are considering, or have approved, plans to use new powers to pay for social care services by increasing council tax by an additional 2%, according to the Local Government Association. However, the new powers announced by George Osborne last year will not bridge the gap between the money raised and needed, it said. LGA vice chairman Nick Forbes called on the government to bring forward £700m of new funding from the Better Care Fund to 2016/17.
Trusts’ rebate claim ‘threatens Cambridge services’
A claim by NHS trusts for business rate rebates poses a risk to Cambridge City Council’s financial stability, according to councillor for finance George Owers. Explaining a proposed rise of 2.8% in council tax, he told the Cambridge Evening News: “We’re also proposing to take the small extra increase to protect the council’s long-term financial stability and tax-base.
“We face many risks and issues, including a claim by the local NHS foundation trust to reduce their business rates liability to the tune of nearly a million pounds a year.”
Moodys: ‘Brexit could see UK rating downgrade’
Ratings agency Moody’s says that it will consider putting the UK on negative outlook if citizens vote to leave the Euro. The agency currently rates the UK at Aa1, just below the maximum AAA mark, and says its outlook is currently stable. Kathrin Muehlbronner at Moody’s said: “We consider it positive that the referendum will take place as soon as June, as a lengthy period of uncertainty on the part of firms and investors would damage the UK’s economic growth prospects. That said, the outcome of the referendum remains wide open. In our view, a decision to leave the EU would be credit negative for the UK economy.”
Phillips appointed to chair LGPS advisory board
Former Herefordshire Council leader Roger Phillips has been appointed to chair the Local Government Pension Scheme Advisory Board, taking over from Joanne Segars. Phillips was previously vice chairman and also chaired the Local Government Association’s Local Government Pension Committee. Phillips said: “I am very aware of the many and varied challenges faced by the scheme and under no illusions about the hard work and tough decisions necessary to ensure its continued sustainability.”
