Figures show 60% rise in council property investment
Council appetite for boosting their property portfolios to raise revenue showed now sign of abating in the first quarter of the year. Figures from the Department for Communities and Local Government show local authorities spent £545m on acquisition of land and buildings between April and June, up 60% on the first quarter last year. Elsewhere, data showed that councils used £1.1bn more of their reserves in 2016-17 than the previous year.
‘No appetite’ for overhaul of Scottish business rates
Scottish local authorities face the prospect of carrying out more frequent revaluations of properties subject to business rates. The recommendation was one of 30 outlined in a review of the business rates system carried out by former RBS Scotland chairman Ken Barclay on behalf of the Scottish Government. The proposals would also provide a tax break of one-year for new build property and create a new supplement for large businesses. Barclay said: “Although the feedback indicated a number of common themes and concerns, there was no strong appetite for a significant overhaul of the current property-based tax system.”
National property management framework launched
A national framework to help councils manage and boost their property portfolios could save the public sector £35m over the next four years, the government claims. Some of the UK’s top property consultancies are among 34 firms awarded places on the Estates Professional Services framework, which launched this week. A statement from the Crown Commercial Service said: “The framework will enable customers to reduce property costs, release unwanted property assets, identify savings and identify opportunities to generate income from land and buildings.”
Infrastructure levy ‘largely unspent’
Only 16% of cash collected through the Community Infrastructure Levy have been spent on infrastructure, according to new research. Planning magazine this week published an investigation showing that the 32 councils that had adopted the levy by the end of 2013, have collected £166.3m through the levy to date. However, only £26.2m has so far been spent on infrastructure. Peter Home, associate director at property consultancy Turley, told the magazine: “The development industry pays the money in good faith to support development and this isn’t happening.”
Hampshire seeks treasury adviser
Hampshire County Council has issued a tender for a treasury management advisor. The contract will be for five years, with the option to extend for a further two, and is expected to be worth around half a million pounds. Bidders have until 15 September to respond to the call.
Newham to create regeneration JV
London Borough of Newham is seeking a private sector partner to deliver the regeneration of the Carpenters Estate in Stratford. The project will develop around 3,000 new homes and commercial units on 23 acres of land. The residential led mixed-used development will be delivered through a joint venture which will also hold and manage a portion of developed assets to provide income streams.
