Weaver joins PWLB, LGPS ethics, Manchester strategy, Pickles covers rate cap, Stable MMF outlook…
0Weaver takes up loan board role
Mike Weaver, former president of the Chartered Institute of Public and Accountancy, has been appointed as a commissioner at the Public Works Loan Board. Weaver, who is also a former director of financial services at Worcestershire County Council, is among four new commissioners appointed. The unpaid position involves meeting once a year with other commissioners to oversee the work of the PWLB. Under civil service rules, commissioners can serve a maximum of two four-year terms.
Council removes pension funds from tobacco firms
The debate surrounding “unethical“ investments by local government pension fund managers raged on this week. John Ashton, president of the Faculty of Public Health UK said directors of public health should challenge their council’s pension funds over investments in tobacco, alcohol, pay-day loans and gambling. Meanwhile, Hertfordshire County Council has introduced a new policy which will see it moving £47 million of pension funds out of tobacco companies into other investments.
Manchester city region releases strategy
Public authorities in Greater Manchester have released a new strategy aimed at reducing the current £5 billion gap between tax revenues and public spending. The Greater Manchester Strategy sets out a number of goals, including increasing the city region’s share of UK jobs, boosting its economic growth rate to exceed the national average, reduce the number of out-of-work benefit clamaints and reduce carbon emissions to 48 per cent lower than 1990 levels.
Pickles puts councils’ mind at rest over business rate pledge
Communities secretary Eric Pickles has announced that the government, rather than councils, will pay for a cap on business rate rises announced as part of chancellor George Osborne’s Autumn Statement. Pickles clarified that councils will not lose out from the package of measures which will see smaller rises in rates than planned, plus discounts for small business premises and new occupiers of formerly unoccupied buildings. Pickles also announced this week that extra funding would be made available to councils to fight non-benefit-related corporate fraud.
Fitch predicts “stable” 2014 for MMFs
Fitch Ratings said this week that its rating outlook for money market funds (MMF) across the world is stable for 2014. It said that its assessment is based on funds’ “conservative active management of credit, market and liquidity risks”. It also said that in the longer term, MMF regulation could have serious implications, but said that it did not expect MMF regulations to be a factor next year, as reform would take time to implement. Other regulatory and political changes are reducing the supply of eligible investments for MMFs, and in response managers are increasingly investing in innovative money market products, such as callable commercial paper, collateralised commercial paper and repo backed by non-government collateral. The low interest rate environment is expected to persist in 2014, Fitch added.
London councils slam “outrageous” homes bonus announcement
Councils in London have reacted angrily to the news that the capital is exempt from a U-turn over the top-slicing of cash from New Homes Bonus receipts. The government announced last week that it was dropping a proposal to take 20 per cent of NHB cash to fund local growth funds. But London will still face the cut, which would amount to around £70 million. Chair of London Councils, Hackney mayor Jules Pipe, said: “All Londoners should be outraged by this move.”
