News Roundup: Southwark slams minister, audit company launches, housing loan for Durham, Lancashire crowd sources loans
0Southwark slams minister over standalone company comments
Southwark Council has criticised local government minister Brandon Lewis after he threatened to bring a halt to local authorities setting up housing companies to avoid losing their properties to Right to Buy. In a statement to Parliament last month, Lewis said: “The actions of a handful of councils mean the Right to Buy for some tenants is now under threat – I will not support any council setting up a housing company unless their tenants continue to have the chance of having a Right to Buy.” But Southwark said that the comments were “hardly the ‘localism in action’ that ministers claim to be seeking’.”
Audit management company swings into action
The independent firm set up to manage audit contracts for councils following the closure of the Audit Commission begins operations today (1 April). Public Sector Audit Appointments (PSAA) will take over a number of former commission responsibilities, including the appointment of local auditors whose contracts will run until at least 2017. Steve Freer, PSAA chairman, said: “We look forward to the challenge of helping to maintain a rigorous audit regime during an important period of tight financial settlements and significant change for local services.”
Government aids Durham stock transfer
The government has agreed to loan Durham County Council £205m to cover expenditure related to its proposed transfer of housing to a new company. The council missed the government’s deadline to complete the deal by the end of the 2014/15, which put an agreement to write-off the council’s historic housing debt in jeopardy. However, the Department for Communities and Local Government has now agreed a “repayable cash advance” from its contingency fund to cover the expenses.
Lancashire crowdsourcing partnership lends £1.5m
Lancashire Council has lent more than £1.5m to local businesses through a partnership with online crowdsourcing venture Funding Circle, it said this week. The council became the first council to lend directly to small and medium sized businesses through the platform two years ago. Since the partnership began, more than 230 companies within the Lancashire area have benefited from Funding Circle investors, the council announced.
Councils accept more commuted housing payments
Councils are receiving increased funding from property developers seeking to avoid building affordable homes within their schemes, according to new research. Trade magazine Inside Housing this week said that freedom of information requests from 196 councils revealed that £112.8m was paid in 2014/15 in order to fund affordable housing on alternative sites, compared to £87.2m in 2011/12. More than half said they had still to reinvest their money.
Northampton statue blockaded
Culture minister Ed Vaizey has put a temporary export ban on a 4,000-year-old Egyptian statue sold by Northampton Borough council for £15.76m. The statue was sold last year to a foreign buyer, but is now blocked from going abroad. Arts Council England withdrew its accreditation from Northampton after it sold the statue to fund an extension to a Northampton Museum.
Council ‘uses tax avoidance scheme’ to refurbish offices
Clackmannanshire Council in Scotland has used a tax avoidance scheme that is being investigated by HM Majesty’s Revenue and Customs to renovate its offices, according to the Mail on Sunday. The council saved £2.8m on the scheme by using the Business Premises Renovation Allowance, but may have cost the Treasury £3.6m in lost income tax receipts, according to the article. Investors put £2.8m into a partnership, which the council lent 4.9m, with the money used to refurbish the offices in Alloa.
