Social impact fund, London Councils, Shale gas rate retention, New housing model, Devon infrastructure investment
0Waltham Forest commits to social impact fund
London Borough of Waltham Forest’s pension fund has helped seed a £20.8 million social impact fund aimed at producing social outcomes alongside a financial return. The Impact Ventures UK fund will invest in enterprises that create a strong positive social impact for disadvantaged people and communities in the UK as well as generating a financial return. It will showcase social innovation and leadership, and will provide growth capital, strategic industry insights, management support and mentoring for social entrepreneurs.
London Councils bemoan “unsustainable” settlement
London Councils says that the government’s proposed Local Government Finance Settlement for 2014/15 threatens the sustainability of the finance system for councils in London. In its response to the government consultation on the settlement, the body which represents all the capital’s local authorities said London was facing a “double whammy” of disproportionately high cuts along with dramatic increases in demand and costs. It also complained about a “lack of transparency and coherence” in the government’s proposals. Unlike councils across the rest of England, London boroughs will lose a proportion of the New Homes Bonus.
Councils to keep full shale gas rate receipts
Prime minister David Cameron has announced that councils will be able to keep 100 per cent of business rates they collect from shale gas sites. The government said the announcement could be worth up to £1.7 million a year for a typical site, and will be directly funded by central government. In addition, the industry has confirmed that it will consult on how it will share a further 1 per cent of ongoing profits with the local communities affected, with options being considered likely to exclude councils receiving this cash.
Consultant moots new housing model to fund services
Councils could generate revenue for services by transferring housing to private companies and requiring them to pay a share of income under a new model being developed by consultants. According to Inside Housing magazine, Richard Parker, head of housing at PwC, a member of Labour’s housing review is discussing the model with council leaders and officials. The report said that the model would see such firms divert some income to services usually paid for by the general fund while keeping its borrowing off council balance sheets.
Devon puts faith in infrastructure investment
Devon County Council Pension Fund has invested £40 million in two infrastructure funds run by Aviva Investors. The move follows a recent rise in Devon’s target for infrastructure investment from 2 per cent to 4 per cent. Half of the £40 million has been committed to Aviva Investors’ Returns Enhancing and Liability Matching Infrastructure Fund, which focuses on projects across the U.K. The other half has been committed to the Returns Enhancing and Liability Matching Ground Rents Fund.
Joint venture set to redevelop former colliery site
St. Helens Council has created a joint venture with developer Langtree Group to acquire the former Parkside colliery site at Newton le Willows, St. Helens. The new company has taken ownership of the freehold and will begin work on a development strategy to develop the site. A statement from the company said that it hopes to reinstate the rail link with the mainline to create a new rail freight centre on the site. Parkside Colliery closed in March 1993 – the last pit in the Lancashire Coalfield to close down.
