Barnett formula moves to centre of DUP negotiations
Talks between Theresa May and the Democratic Unionist Party (DUP) in Northern Ireland to form a minority government has thrown a spotlight on the Barnett Formula for allocating funds to home nations. The DUP wants city deals for the province but commentators have highlighted the risk of threatening the tenets of Barnett, prompting an outcry from Scotland and Wales. The Telegraph writes that “the government will not want to break the Barnett Formula … and risk arguments with Scotland and Wales, and will not want to be seen to give Northern Ireland favourable treatment.” The Times reports that the Treasury has warned that extra funding for Northern Ireland must go through Barnett.
Vast investment set to boost house building in Scotland
Scottish councils are to share a £1.75bn injection of cash aimed at stimulating the construction of affordable housing. The cash will come in three tranches: £532m in 2018-19, £591m in 2019-20 and £630m in 2020-21. Housing Minister Kevin Stewart said the money would allow local authorities to plan investment in affordable homes. “This is also an important signal to the house-building sector in Scotland and demonstrates our commitment to the industry and the estimated 14,000 jobs our affordable housing supply programme supports each year,” he said.
Reforms set to “strengthen” risk limits for European money funds
Fitch, the rating agency, has said new reforms to European money funds will benefit short-term investors. A statement released by Fitch said the reforms, due to be enacted imminently, would “benefit investors by strengthening industry-wide risk limits and enhancing transparency.” The reforms will introduce new fund types with the new LVNAV forming a “workable alternative to existing money funds,” said Fitch.
Norfolk prepares the ground for development company
Norfolk County Council will next week consider the creation of a stand-alone company to build new homes. The proposal is included on the agenda of the council’s business and property committee which will consider approving a plan that would see a new company borrow from the county council to develop surplus public land. A report for the committee said: “It is proposed that the primary objective for direct property development will be to maximise financial returns (capital receipts and revenue income) for the Council to support service delivery. In addition the Council is seeking wider social, economic and environmental outcomes…”
Gove told ‘everyone’ means public services too
CIPFA has responded to the return of Michael Gove to the cabinet as environment secretary by stressing the importance of including the interests of public services in Brexit negotiations. Gove returned to government saying he was looking forward to “working with everyone” on Brexit. Julia Goldsworthy, chair of CIPFA’s Brexit Advisory Commission for Public Services, said: “It is welcome news that the new environment secretary, Michael Gove, has claimed that the government will ‘work with everyone’ to achieve an effective Brexit deal. However, it is critical that ‘everyone’ should include public services for the sake of the people who rely on them. The Brexit Advisory Commission for Public Services stands ready to support the government in understanding the risks and opportunities of Brexit for the sector during the negotiation process.”
Huge housing expansion at the heart of Central Beds plan
Central Bedfordshire Council will next week consider a draft local plan which details an intention to build up to 10,000 new homes around Luton. The plan makes provision for between 20,000 and 30,000 new homes, though the precise figure will not be known until further work takes place on the plan in 2018. Central Bedfordshire says on its website: “The plan includes a range of different homes to rent and buy with a mixture of sizes including family homes, two bedroom homes, apartments and bungalows. And, to help people get on the housing ladder, this will include 30% to be provided as lower cost options such as affordable rent and shared ownership.”
