Warrington MPs raise council bank investment worries
Concerns have been by Warrington’s two members of Parliament over the borough council’s decision to buy a 33% stake in a new bank. As reported in Room151, the council’s executive board has approved the move to form a partnership with Acorn Financial Partners. But speaking this week, Warrington North MP Helen Jones told the Warrington Guardian: “I am concerned that the council are investing so much money in an unproven and unregistered bank and that despite committing well over half the investment, the council will not be the majority shareholder.” Warrington South MP David Mowat said: “This is a highly unusual move. It’s not entirely clear to me how this will benefit Warrington and, as a general rule, public bodies should stay out of commerce.”
Property splash
Local authorities spent £386.7m on shopping centres last year, according to property consultancy Savills. The firm said that the total was spread across 10 schemes, up from zero the previous year. Savills said: “These transactions accounted for 13% of all UK shopping centre deals in 2016 and 44% of deals below £100m.”
Hundreds of councils sign up to new audit appointments body
More than 200 of 493 qualifying councils have signed up with Public Sector Audit Appointments to provide their auditors, according to its chairman. Steve Freer told website PublicFinance that he was confident the number will reach 400 by the registration deadline of 9 March. He said: “Bodies must get themselves organised and make sure it’s on the agenda. There is a very clear closing date on the opportunity and people do need to be mindful of that.”
57 social care authorities ‘set to lose money next year’
Analysis suggests that 57 social care authorities will be worse off following this year’s provisional 2017/18 Local Government Finance Settlement, according to the Local Government Association. The LGA said that the authorities will lose more in New Homes Bonus payments — compared to indicative NHB allocations published in February 2016 — than they gain in Adult Social Care Support Grant. The LGA called on the government to reverse the cuts in NHB cash.
Nottingham invests £4.6m in Birmingham property
A building occupied by the DVLA in Birmingham has been bought by Nottingham City Council. The council says that the property will generate net income of around £190,00 a year. A council spokesman said: “Like many councils trying to continue providing services in the face of government funding cuts, the city council has been developing and expanding its commercial property investment portfolio to generate and sustain long-term revenue, together with the potential for capital appreciation.”
EIB hints on continuing UK membership
Investment rules at the European Investment Bank could be changed to allow it to continue with UK membership following Brexit. Current rules mean that shareholders in the bank have to be member states of the European Union, but this week, EIB president Werner Hoyer told a press conference that “there is an option to change that and allow a former member state to remain a member … is completely open to speculation. So, I think we should not exclude any possibility”, he said.
London Councils creates housing delivery vehicle
Local authority representative body London Councils has appointed a contractor to help drive plans to improve and boost housing across the capital. Consultancy Halliford Associates will work with London Councils, to develop a collaborative delivery vehicle which aims to help councils increase their homebuilding capacity.
