News Roundup: Policies ‘conflict’ over property investment, industrial strategy role, EU structural funds
0O’Donnell to step down from Camden
Mike O’Donnell is to step down from his role as finance director after 12 years at London Borough of Camden. O’Donnell made the announcement that he will end his tenure at the council in a letter to councillors. O’Donnell has spent the past nine months covering the chief finance officer role at Birmingham City Council. He now plans to develop a portfolio of different roles, which could include working on some Camden projects.
LEP role in industrial strategy
The District Councils’ Network has welcomed a greater role for local enterprise partnerships outlined in the government’s Industrial Strategy White Paper. John Fuller, chairman of the District Councils’ Network said: “The increased prominence of Local Enterprise Partnerships (LEPs) will allow strategic growth and local planning and housing authorities to work together on functional economic geographies to build the national economy one local economy at a time. We look forward to using our local leadership role in shaping place based local industrial strategies across England in partnership with the public and private sector.”
Regulation changes ‘inconsistent’ with other policies
Proposed changes to local government finance guidance aimed at regulating councils’ commercial activities may be inconsistent with other government policies, according to a new report. Accounting firm Grant Thornton said that the move to limit investment outside of councils’ own area seems to be at odds with a desire to see local government pension pools invest in infrastructure “which by its very nature is likely to be ‘out-of-area’.” The report added: “Furthermore, an over emphasis on commercial property may be out of kilter with the full range of other asset classes which councils are trading in.”
EU commission recommends needs-based approach
Post-Brexit replacement for European Union structural funds must be allocated on a needs basis, according to the Brexit Advisory Commission for Public Services. The commission recommends that the funding should be directed towards achieving specific outcomes rather than being based on GDP, and that national funding streams should be simplified. Julia Goldsworthy, chair of the commission, said: “A new approach should also be used to give localities and regions greater control over how future funds are shaped and spent. They are best placed to understand how their local economies work and how resource can be most effectively targeted in their area.”
Woking buys office complex
Woking Borough Council has spent £72.4m on an office scheme in its borough. Woking Borough councillor David Bittleston, said: “Over recent years Woking has lost vital employment space and we recognise that the current investment market is reluctant to invest in speculative office developments. Without prime town centre office space, there is a genuine risk that jobs for local people and future employment opportunities could be lost.”
CIPFA reveals biggest fraud threats
Local authorities detected and stopped 75,00 fraud cases with a total value of £336.2m, according to the Chartered Institute of Public Finance and Accountancy. The third annual instalment of CIPFA’s Counter Fraud and Corruption Tracker revealed the three greatest fraud risk areas for local government as procurement, adult social care and council tax single person discount. Peter Wilson, director of counter fraud at CIPFA, said: “Our public services are already under tremendous financial pressure and so it is crucial criminals are not allowed to syphon cash away from where it is needed.”
