151 BRIEF

  • Salford trails ‘no cuts’ budget

    Salford City Council has promised that it will not make any cuts in its 2020/21 budget.

    The authority says services will next year get a reprieve after making a total of £211m of cuts and budget reductions to balance budgets since 2010.

    Full details of the authority’s spending plan for next year will be revealed later this month.

    Salford city mayor Paul Dennett said: “The council has reached a no cuts position this year after careful stewardship and bold decisions to invest to save in innovative service changes to ensure we are making the best use of our available resources to meet the needs of our residents.”

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    • 30 Jan, 2020

    Somerset votes to increase long-term investments to boost revenue

    Somerset County Council has agreed to increase the level of its strategic investments from £10m to £60m.

    A full meeting last week approved the plan, which is aimed at achieving a higher return by reducing exposure to short-term investments.

    An officer report to the council said: “This strategy of increasing our strategic investments and reducing our short-term investments would generate an additional income of over £1m over the next two years.

    “Taking this approach will expose the council to risks on the capital values of the investment but these will only be realised if the investments are sold and the intention is to hold these investments for the longer term.”

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  • Wiltshire makes major investment in Brunel low carbon equities portfolio

    Wiltshire Pension Fund  has moved 20% of its assets into a low carbon passive equity portfolio managed by LGPS pool Brunel Pension Partnership.

    The transition has taken place following a review of the pension fund’s strategic asset allocation, led by Wiltshire’s Pension Committee.

    The fund’s total assets currently stand at a total of around £2.7bn, making the investment worth around £550m.

    Wiltshire’s pension committee chairman Tony Deane said: “Climate change is an increasingly material issue for investors and we believe that investing to support the Paris goals is entirely consistent with securing long-term financial returns and is aligned with the best long-term interests of Wiltshire’s beneficiaries.”

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  • £1,000 pub discount among business rate relief package

    Central government has announced business rates relief for pubs of £1,000 in the next financial year.

    Chancellor Sajid Javid said as many as 18,000 pubs – which need a rateable value of less than £100,000 to qualify – are expected to benefit from the discount from April.

    Central government will fully reimburse local authorities for the local share of the discretionary relief using a grant under section 31 of the Local Government Act 2003.

    The relief will come on top of the retail discount, which the government has extended from a third to a half.

    It has also extended the discount to cinemas and music venues and extended the duration of the local newspapers office space discount for another five years.

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    • 30 Jan, 2020

    Kent to recoup initial £140m from Woodford investment

    Kent County Council will receive an initial payment of £138.9m from its investment in the Woodford Equity Income fund.

    The council’s investment in the fund was worth £263m on 31 March last year, but its value fell to below £200m after the fund suspended trading when the county asked to withdraw its money in June.

    A spokesman for the Kent County Council Superannuation Fund said: “We can confirm that we have received a letter from the administrators of the Woodford fund stating that we will be receiving an initial sum of £138.9million tomorrow. “We have also been advised that further sums will be forthcoming dependent on the sale of the assets of the fund.”

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    • 29 Jan, 2020

    Edinburgh unveils £2.5bn housing investment plan

    City of Edinburgh Council has announced plans for a £2.5bn investment in council housing over the next ten years.

    The council last week approved plans which will help support the council’s existing commitment to build at least 20,000 social and affordable homes by 2028, along with another 2,000 between 2028 and 2030.

    The HRA business plan also assumes investment in existing homes and neighbourhoods of around £20,000 per home over the next 15 years.

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  • LGA calls for cash to upgrade dilapidated sports facilities

    Almost two-thirds of leisure centres are need urgent new investment from government, according to Local Government Association (LGA).

    Figures shared with the LGA by Sport England show that up to 63% of sports halls and swimming pools are more than 10 years old.

    Nearly a quarter of all sports halls and swimming pools have not been refurbished in more than 20 years.

    Gerald Vernon-Jackson, chair of the LGA’s culture, tourism and sport board, said: “Underinvestment has meant that many councils have not been able to provide the necessary refurbishments to some outdated sports facilities.

    “Where refurbishments have been possible, they have been shown to save an average of £500,000 a year, so investment pays for itself, as well as improving the health and wellbeing of residents and helping meet our climate targets.”

    The LGA is calling on government to use the forthcoming Budget to introduce a £500m funding pot for councils for sports centre renovations.

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  • Watchdog questions financial sustainability of Highland Council

    Scotland’s public sector spending watchdog says that Highland Council is failing to demonstrate that it is financially sustainable.

    In a critical audit report, the Accounts Commission said the authority has a “poor record of meeting budget gaps” and that it needs to meet a forecast deficit of £77.3m in the two years from 2020/21.

    The report said that the commission was “disappointed” with the progress made by the council since its previous Best Value audit in 2010.

    Andrew Burns, member of the Accounts Commission said: “This report makes clear the very challenging financial position faced by the council and changes to the way services are delivered are vital.

    “It is reassuring that change is now happening more quickly and it is really important that this momentum is maintained. It will, however, be very challenging for the council to meet all of its commitments and priorities.

    “Given the urgent nature of the issues raised in our report, the Accounts Commission will maintain a close interest in the progress made by Highland Council.“

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  • Exeter tribunal win sets business rates precedent for museums

    Exeter City Council has won a landmark ruling on the valuation of museums for business rates purposes.

    Last week, the Upper Tribunal (Land Chamber) ruled that rates for the Royal Albert Memorial Museum in Exeter should have been valued on net income, rather than the cost of rebuilding.

    Colin Hunter, director of business rates at law firm Lambert Smith Hampton (LSH), which advised the council on the appeal, said: “This is the third appeal of this kind that we have taken to the Upper Tribunal and, in all cases, the court has found in our favour.

    “However, what is interesting about this case compared with the others is that it makes it clear that the choice of valuation method isn’t a matter of legal principle but rather should be based upon fact and evidence.”

    He said  the result is likely to have a significant impact on the way English and Welsh museums are valued in the future, “particularly older museums situated within historic buildings which would have substantial rebuild costs”.

    The Valuation Office Agency has until 7 February to appeal against the decision.

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  • Border to Coast signs up to responsible investment principles

    LGPS pool Border to Coast Pensions Partnership has signed up to the Principles for Responsible Investment, a framework supported by the United Nations.

    The six principles provide a framework for integrating environmental, social and corporate governance (ESG) considerations into investment decision-making and ownership practices.

    Councillor Doug McMurdo, chair of the Border to Coast joint committee and of Bedfordshire Pension Fund said: “The twelve Border to Coast partner funds believe that the way to achieve long term sustainable returns is through Responsible Investment (RI).

    “The PRI is acknowledged as the world’s leading proponent of RI and we are delighted that Border to Coast has become a signatory, demonstrating its commitment to stewardship and RI.”

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