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Room 151

  • 151 BRIEF

    What's New?

  • Slough welcomes commitment that Office for Local Government ‘will not be a burden’

    June 30, 2022

  • Homes England agrees strategic partnership with two authorities

    June 29, 2022

  • Soaring inflation and pay pressures to add £3.6bn to council budgets

    June 28, 2022

  • Underfunded social care reforms could ‘exacerbate workforce pressures’

    June 27, 2022

  • Nottingham City Council leader labels proposed intervention as ‘disappointing’

    June 27, 2022

  • Government preparing to intervene in Nottingham City Council

    June 23, 2022

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151 BRIEF

    • 30 Jun, 2022
    • — in 151 News · Governance · Levelling up

    Slough welcomes commitment that Office for Local Government ‘will not be a burden’

    Slough Borough Council has welcomed Michael Gove’s commitment that the proposed Office for Local Government will not be an “administrative burden” on local authorities.

    The secretary of state for levelling up, housing and communities, speaking at the annual conference of the Local Government Association (LGA) on 28 June, announced the creation of the new body, which aims to benchmark and drive performance in councils.

    Cllr James Swindlehurst, leader of Slough Borough Council, told Room151: “We welcome Michael Gove’s comments that there is much to celebrate in local government, and we are pleased the new Office for Local Government is to be useful to local authorities rather than an administrative burden.”

    Gove made specific reference in his LGA speech to a history of “weak leadership” at Slough. “Long-running mismanagement by the borough council, with little or no effective scrutiny over decision-making let residents down,” he said.

    As a result, commissioners had to be sent in to address “failings in its financial management and governance”.

    Alongside Slough, Gove also highlighted the arrest of Liverpool City Council’s former mayor and the ongoing police investigation into alleged corruption and illegal activity. This triggered a Best Value inspection in 2020 and also led to commissioners being sent in.

    “I’m sure, like me, you find these failings wholly unacceptable. It’s not just the case that the people of Liverpool and Slough deserve better, it’s also the case that local services matter,” Gove added.

    In response to Gove’s criticism, Swindlehurst said: “We acknowledge Slough has had serious difficulties, but the commissioners and everyone here at Slough is working hard to deliver our improvement and recovery plan and we continue to make progress.”

    This comes as Slough has approved plans to restructure its finance department to enhance capacity and capability.

    —————

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    • 29 Jun, 2022
    • — in 151 News · Housing · Levelling up

    Homes England agrees strategic partnership with two authorities

    Homes England has agreed a Strategic Place Partnership (SPP) pilot programme with two authorities to deliver affordable housing and regeneration.

    The SPP is a new model of cooperation between the government’s housing and regeneration agency and local authorities. Homes England is testing the pilot programme with the Greater Manchester Combined Authority and the Association of South Essex Local Authorities (ASELA).

    Peter Denton, chief executive of Homes England, said: “The new model of partnership is our way of responding to the most ambitious places where there is significant opportunity and a need to partner more closely.”

    The SPP is aimed at sub-regions with the most ambitious proposals for housing growth as part of their broader social, environmental and economic vision for the area.

    The SPP is centred on a shared business plan that sets out special and thematic priorities. For Greater Manchester, this is a shared focus on the delivery of growth locations, affordable housing and town centre regeneration.

    Andy Burnham, mayor of Greater Manchester, said: “Right now we have to be creating homes and infrastructure that are fit for a better future, and our ambition is to deliver 30,000 good-quality, truly affordable net-zero carbon homes by 2038.”

    Cllr Chris Hossack, chair of ASELA and leader of Brentwood Borough Council, said the programme was in line with the government’s Levelling Up White Paper as it is adopting “a place-first approach to regeneration” and working with local leaders to unlock barriers.

    He said: “We welcome the partnership with Homes England. It will support our vision for south Essex as a place where communities can thrive and where new homes come hand in hand with new jobs and regeneration of our town centres and high streets.”

    —————

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    • 28 Jun, 2022
    • — in 151 News · Funding

    Soaring inflation and pay pressures to add £3.6bn to council budgets

    Rising inflation, energy prices and National Living Wage pressures are set to add £3.6bn of extra costs onto council budgets in 2024/25, according to an analysis by the Local Government Association (LGA).

    As its annual conference in Harrogate starts today, the LGA warned that the extra cost pressures pose “a serious risk” to the future financial viability of some services and councils.

    Cllr James Jamieson, LGA chairman, said: “As our analysis shows, the impact on our local services could be disastrous. This will stifle our economic recovery, entrench disadvantage, and undermine government ambitions to level up the country.”

    The unforeseen cost pressures by both central and local government will add £2.4bn to council budgets this year, which will rise to £3.6bn in 2024/25.

    The LGA reported that the “unprecedented crisis” is forcing councils to rip up financial plans set three months ago. Some authorities have said that in light of the current situation, cuts to local services may be necessary to balance their books.

    Jamieson added: “Budgets are having to be reset with potential cuts to the essential services people rely on, in the middle of a cost-of-living crisis.”

    The LGA has called for government support to ensure that councils have the resources to overcome unprecedented costs and protect services that communities rely on.

    “Only with adequate long-term funding – to cover increased cost pressures and invest in local services – and the right powers, can councils deliver for our communities, tackle the climate emergency, and level up all parts of the country,” Jamieson said.

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    • 27 Jun, 2022
    • — in 151 News · Funding · Social care

    Underfunded social care reforms could ‘exacerbate workforce pressures’

    Councils are concerned that the government’s adult social care reforms are “significantly underfunded”, which will threaten their implementation and exacerbate ongoing financial and workforce pressures.

    A survey by the Local Government Association (LGA) ahead of its annual conference found that 98% of councils are not confident that the funding set aside to implement the charging reforms is sufficient.

    According to the LGA, of the £36bn the new UK-wide health and social levy will raise over the next three years, only £5.4bn is ringfenced for social care reforms in England.

    Cllr David Fothergill, chairman of the LGA Community Wellbeing Board said: “This survey lays bare the huge concerns of councils that the government’s charging reforms are significantly underfunded. This has the potential to tip councils over the financial edge.”

    The survey of senior councillors responsible for adult social care across England also found that three quarters of local authorities are not confident that they will have enough frontline staff to deliver the reforms.

    Vacancy rates across the sector have already led to over 500,000 people waiting for an assessment or care review, which is up from just under 400,000 in November 2021.

    Fothergill added: “Underfunding these reforms will only exacerbate pre-existing significant pressures, which the reforms – and the funding for them – do nothing to address.

    “Local government is seeking immediate assurances that the government will underwrite any additional costs councils incur and will work with councils as a matter of urgency to consider further mitigations that may need to be used if funding, capacity and timescale pressures threaten implementation.”

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    • 27 Jun, 2022
    • — in 151 News · Governance

    Nottingham City Council leader labels proposed intervention as ‘disappointing’

    The leader of Nottingham City Council has labelled the government’s proposal to appoint commissioners to intervene in the authority as “disappointing”.

    The Department for Levelling Up, Housing and Communities (DLUHC) announced on 23 June that it was “minded” to appoint commissioners to take part in some of the authority’s decision-making functions.

    The intervention was decided after DLUHC reviewed reports examining the council’s unlawful Housing Revenue Account expenditure and subsequent progress reports.

    Cllr David Mellen, Nottingham City Council leader, said: “It’s clearly disappointing that the Housing Revenue Account issue has led to the government taking the action it has.”

    Mellen admitted that the unlawful allocation of Housing Revenue Account funds was a “significant setback”, but highlighted that it was the council that “brought the matter to light ourselves as part of our work to tighten up our financial and governance arrangements”.

    Nottingham Labour has since released a statement on the intervention which states that “the appointment of commissioners would be unjustified, and an attack on our local democracy”.

    The intervention was decided after DLUHC reviewed reports examining the council’s unlawful Housing Revenue Account expenditure and subsequent progress reports.

    —————

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    • 23 Jun, 2022
    • — in 151 News · Governance

    Government preparing to intervene in Nottingham City Council

    Levelling up secretary Michael Gove has said that he is “minded to intervene” in Nottingham City Council and is proposing to appoint Sir Tony Redmond as lead commissioner.

    The proposed intervention was signalled in a letter from local government minister Kemi Badenoch to Redmond published today (23 June). Badenoch wrote that Gove had made the decision after reviewing reports examining the council’s unlawful Housing Revenue Account expenditure and subsequent progress reports.

    Badenoch wrote: He [Gove] is satisfied on the basis of the evidence provided that Nottingham City Council is failing to comply with its Best Value duty. He is therefore minded to exercise his Best Value powers under the Local Government Act 1999 and appoint commissioners.”

    Redmond is currently chair of Nottingham’s Improvement and Assurance Board. In the letter, Badenoch highlighted the “constructive working relationship you have established with the council and your understanding of the challenges facing the city”.

    The letter asks for representations from “all interested parties” to be received by 7 July before a final decision is made by Gove and Badenoch.

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    • 23 Jun, 2022
    • — in 151 News · Workforce

    Low earners at Surrey County Council receive 7.85% pay increase

    Surrey County Council’s lowest-paid workers are set to receive a pay rise of 7.85% after unions and council officers agreed on a “proportionate” pay offer.

    The local authority targeted the pay increase to lower earners who are currently struggling with the cost-of-living crisis. The percentage pay increase drops further up the scales, with those earning the most receiving no rise.

    Tim Oliver, leader of Surrey County Council said: “I’m pleased that a strong pay offer has been agreed, one that particularly protects our lowest-paid staff.

    “We know that the cost of living is proving a challenge for many, but as a council it is our absolute priority to ensure no one is left behind, and that includes our staff. This offer reflects that.”

    The pay rise will exceed the National Living Wage, with a minimum hourly pay rate of £10.24 per hour.

    Oliver added: “It is also in recognition of the excellent services staff continued to provide under difficult conditions during the pandemic, which we are all grateful for.”

    Surrey County Council’s pay is subject to local agreement and negotiations between the council and recognised trade unions, which are Unison and GMB.

    This follows an analysis by the Local Government Association that the increase of the National Living Wage could cost councils at least £400m over the next two years.

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    • 23 Jun, 2022
    • — in 151 News · Funding · Infrastructure

    UK Infrastructure Bank launches plan to deploy £22bn of investment

    The UK Infrastructure Bank (UKIB) has launched a new strategic plan outlining where it will deploy £22bn of investment to help deliver the UK’s net-zero commitments and tackle regional economic inequality.

    The plan pledges to make clean energy the largest sector for the bank’s funding. It also commits UKIB to invest in tackling specific infrastructure challenges such as the expansion of electric vehicle charging, retrofit of buildings and the roll out of zero emission buses by local authorities.

    John Flint, CEO of UKIB, said: “We want our investments to shape the future and, for the first time, we’re highlighting where we expect the biggest investment opportunities will be to deliver on our mission to tackle climate change and regional inequalities.”

    UKIB announced that its advisory function will launch this summer, which aims to support local authorities in delivering infrastructure projects. This follows the bank’s pledge to lend £4bn to councils for capital schemes.

    John Glen, economic secretary to the Treasury, said: “A year after its launch, it’s great to see the bank delivering on its mandate to accelerate investment in infrastructure, helping to level up across the UK and tackle climate change.”

    UKIB said the plan highlights the importance of nature-based solutions and will finance the scale-up of existing green infrastructure and accelerate the deployment of new technologies such as carbon capture.

    The bank also announced a triple bottom line which applies to all its investments: achieving policy objectives, crowdfunding-in private capital and generating a positive financial return on equity of between 2.5% to 4%.

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    • 21 Jun, 2022
    • — in 151 News · Funding

    LGA: councils facing service and job cuts due to National Living Wage increase

    Increases in the National Living Wage (NLW) could cost councils at least £400m over the next two years and cause service and job cuts, according to the Local Government Association (LGA).

    In the Spring Statement, the government confirmed that it wanted the NLW to reach two-thirds of median earnings by 2024. Forecasts from the Low Pay Commission suggest this could mean an increases of almost 20% in the NLW in two years.

    The LGA said that bringing the pay of the lowest-paid council staff in line with these forecasts would cost almost £400m. It warned that without additional government funding councils will be unable to keep up with the cost of the NLW increase, which would put council staff and local services at risk.

    Cllr Andrew Western, chair of the LGA’s resources board, said: “Staff pay makes up a huge proportion of councils’ costs and it is clear that the rising cost of living is going to have a huge knock-on impact on pay pressures for local government.

    “The forecasted sharp rise in the NLW – if unfunded – would hit council budgets hard and put services at risk.”

    The LGA estimated that 35% of local government staff could end up being paid no more than the NLW by 2024 unless additional funding is secured.

    Western added: “Only by fully funding the cost, can central government ensure councils can continue to protect vital services – such as adult social care, homelessness support, collecting bins and filling potholes – and the jobs of the public sector workers that deliver them.”

    —————

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    • 21 Jun, 2022
    • — in 151 News · Funding

    London boroughs facing £400m extra pressure on budgets due to inflation

    Local authorities in London are facing additional budget pressures of £400m due to the rapid increase in inflation, according to an analysis by London Councils.

    The representative body for the capital’s 32 boroughs and the City of London said the councils had originally planned for an inflation impact of £300m in revenue budgets for 2022-23, but this was now estimated to be closer to £700m overall.

    London Councils said that rising inflation had also cut £100m in real terms from the £330m financial uplift received by the boroughs in the local government settlement for 2022-23.

    Cllr Georgia Gould, chair of London Councils, said: “Eye-watering inflation means our funding has effectively been cut by £100m already this year – and, overall, we face £400m of additional budget pressures.”

    The analysis suggested that local authorities’ running costs for maintaining current services will be up to £300m higher due to the increase in inflation. The study also stated that construction contract expenses for some projects have risen by 20-25%.

    The inflationary pressures are being felt most acutely in adult social care, which for some boroughs represents 70% of their controllable budgets.

    Gould called for additional government funding to support councils with the rising costs. She said: “Without an increase in grant funding in line with inflation and, above all, funding certainty for the next two years, councils will be forced to make reductions to services, impacting those residents who need them most.”

    —————

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  • Next Page »
  • 151 BRIEFS – WHAT’s NEW?

    • Homes England agrees strategic partnership with two authorities
    • Soaring inflation and pay pressures to add £3.6bn to council budgets
    • Underfunded social care reforms could ‘exacerbate workforce pressures’
    • Nottingham City Council leader labels proposed intervention as ‘disappointing’
    • Government preparing to intervene in Nottingham City Council
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