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News Headlines

 

First £100m from Landsbanki Repaid to Councils

More than three years after the collapse of the Icelandic banking system, councils will receive the first installment, estimated to be around £110m,  of the £413m in local authority funds held Landsbanki, when it collapsed in 2008. The LGA successfully secured priority creditor status for UK local authorities through legal action and expects 98% of the total to be recovered.

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Scrap Bus Pass for Older People, Thinktank Proposes

Pensioners should be stripped of free bus travel as part of £15bn of immediate extra savings to boost the economy, the Social Market Foundation thinktank has said. The £1bn estimated annual cost of OAP travel passes was one low-priority item of spending that did nothing to improve the economy and should be scrapped, it said in a report.

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DCLG Publish LA Pay Guidance

Following revelations about public sector contractors attempting to reduce their tax liability, DCLG has published guidance under the Localism Act, requiring councils to publish and be accountable for their pay policies. The guidance makes clear that authorities should review senior executives' pay packages, particularly where arrangements could be perceived as being designed to minimise tax payments.

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Council Tax Freeze Authorities: DCLG Publish Latest List and Map

DCLG have published a list of over 200 authorities which have signalled their intention to take up the council tax freeze for 2012/13. They have also produced a map showing those authorities accepting the offer.  Meanwhile the Local Governmnet Minister, Bob Neill has written to all council leaders urging authorities to sign up to the freeze offer as 'an act of public service' that 'local residents will greatly appreciate'.

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Children Taken into Care Reaches Record High

Figures from the Children and Family Court Advisory and Support Service (Cafcass) show last month local authorities made 903 applications to protect youngsters from abuse or neglect, the highest figure since cafcass was et up in 2001. Between April 2011 and last month, Cafcass received 8,403 new applications. This figure is 12.4% higher when compared with the same period last financial year. If the figures climb at a similar rate to April, the figure will reach 10,000 for the financial year.

 

Last month, was set up in 2001 to look after the interests of children involved in court family proceedings.

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More Details on Public Health Funding for Councils Published

The Department of Health has published details of public health expenditure baselines for the new comissioning arrangements which begin in 2013. Aaround £5.2 billion wil be spent on public health services., of which at least £2.2 billion will go direct to councils to be spent on action to help their local communities stay as healthy as possible and to reduce health inequalities. This funding will, for the first time, be protected by a ringfence.

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Final 2012/13 Settlement Approved Following Debate in House of Commons

MPs have approved the local governmnet finance settlement for 2012/13 in a vote, following a debate in the House of Commons on 8 February. The report was passed by a majority of 79 votes. Details of the debate and video are available on the Parliament website.

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Ministers Threaten Council Tax Retaliation

Ministers have given the clearest indication yet that councils planning to put council tax up next year will face political retribution.  

In a parliamentary debate on Wednesday, housing minister Grant Shapps said councils that reject the government’s offer of cash to freeze council tax could see their funding base altered next year.

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Health Committee Report Calls for Social Care Integration

A report from the Commons Health Select Committee, published ahead of the social care White Paper, expected in spring, says councils and local NHS bodies should develop a single commissioning process for health and social care in their communities. The report repeats the Committee's call for better integration between the two care services and notes in most cases previous attempts to pool funding and join up services have been disappointing.

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DCLG Morale Lowest in Whitehall

Results from the annual Civil Service People survey show morale at DCLG is the lowest of any government department. Overall "employee engagement" fell by eight points last year to 40%; the average across Whitehall was 56%. Hilary Benn, Shadow CLG Secretary blamed the Communities Secretary’s leadership style, saying, “It's no wonder Eric Pickles's staff morale has reached rock bottom when his advisers brief against them”.

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Details of £250m Weekly Bin Collection Fund Announced

The Communities Secretary, Eric Pickles, has announced details of a new Weekly Collection Support Scheme for councils that retain or reinstate weekly residual waste and recycling services. It is understood that about 80 councils have already privately assured the minister that they will join the scheme. A survey of councils before Christmas suggested that only one in five would take part.

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Local Government Finance Bill Passes Commitee Stage

The House of Commons held the third and final day of the Committee stage of the Local Government Finance Bill on 31 January, following consideration ver two previous days on 18 January and 24 January. The Bill will now await third reading in the Commons. Details of the debate and amendment papers are available on the Parliament website.

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Pickles' Praise for Authorities Freezing Council Tax

Local Government Secretary Eric Pickles has praised councils that have signalled their intention to freeze council tax in 2012/13. Press reports have shown that 152 councils in England are preparing to freeze or reduce council tax next year. He said 'it is very early in the budget setting process, and I would fully expect this number to increase significantly over the next few weeks'.

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MPs Warn over Floods Funding 'Mismatch'

The Public Accounts Committee MPs has raised concerns about the funding for flood defences. The current bill is at least £1.1bn a year, according to the committee of MPs, and this is set to rise owing to climate change. A recent assessment for the government claimed that this could go up to between £1.5bn and £3.5bn a year by the 2020s. "Flood protection is a national priority. Yet it is unclear where the buck stops and who is ultimately responsible for managing the risk of flooding," said Margaret Hodge, who chairs the PAC.

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Elderly 'Suffer as Social Care Spending Cut'

Spending on social care for the elderly in England is falling this year - despite the assurances of ministers, an analysis by campaigners suggests. The Age UK report said £7.3bn was being budgeted this year - the same as in 2011 - but it represented a drop of 4.5% once inflation was taken into account.

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Cheap Loans Plan to Help Elderly Keep Independence

The Department of Health is considering plans for a major drive to reduce the number of people going into care homes and reduce the cost of social care. The centrepiece of the initiative would be Government-subsidised loans to the elderly to fund home improvements including downstairs bathrooms, stairlifts and other “property improvements” that would allow them to stay in their own houses longer.

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Two Counties Confirm Intention to Raise Council Tax

Both Surrey and Cambridgeshire county councils have confirmed that they plan to raise council tax for 2012/13, rather than accepting the one-off freeze grant. Cambridgeshire is planning a 2.95% increase and Surrey a 2.99% increase. 17 councils have so far announced plans to increase council tax, spanning Labour and Conservative control and rural and urban areas. A full list of councils which have already announced their intention to raise council tax is available on the public-access LGC blog.

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Second Day of Committee Consideration for Local Government Finance Bill

The second day of the Committee stage of the Local Government Finance Bill took place in the House of Commons on 24 January. Details of the debate and amendment papers are available on the Parliament website. Further amendments to the Bill will to be debated on 31 January, when it is expected to finish committee consideration.

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LGA Criticise Public Health Incentive Payments

Following yesterday's announcement of the Public Health Outcomes Framework by Health Secretary, Andrew Lansley, the LGA has cast doubts on a payment-by-results system. Mr Lansley  announced that councils that make measurable improvements to their communities’ public health will be rewarded with a cash premium. However, the LGA said such a system 'could be over-simplistic and fail to recognise the specific needs of local areas, including factors such as poverty, housing, education and transport. The Department of Health said it would publish further details on the premium as part of a finance update shortly.

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Pickles: Councils' 'Moral Duty' to Freeze Council Tax

Communities Secretary, Eric Pickles, has urged councils to freeze Council Tax, saying 'Councillors have a moral duty to sign up to keep down the cost of living. Anything less is a kick in the teeth to hard-working, decent taxpayers’. Fifteen authorities have already indicated that they do not plan to accept the Government's offer. These include Surrey County Council, whose leader said accepting the offer would leave a £14m shortfall 'every year for ever'.

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Healthy Residents Bonus for Town Halls

Cutting tooth decay in children, bringing down the number of times people fall in their homes and boosting breastfeeding of babies will earn councils extra funding, under plans to be announced. Local authorities will also be judged on how well they improve public health by tackling air pollution, domestic violence and truancy, Andrew Lansley, the Health Secretary, will say.

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Social Care Leaders Call for Progress on Reform

Social services portfolio holders representing 41 local authorities have warned that the “dignity” of older people will be put at risk unless the “unfair” regime is changed. They suggest a lifetime cap on individual costs of no more than £50,000 - higher than the original proposal of £35,000 but lower than the £60,000 recently suggested by a Department of Health working group.

Their intervention is the latest in a series to put pressure on ministers ahead of a White Paper on social care and a “progress report” on funding options due to be published in April.

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Local Government Finance Bill Considered in Committee Stage

The House of Commons held the first day of the Committee stage of the Local Government Finance Bill on Wednesday 18 January 2012. The Committee stage involves MPs proposing amendments to the text, which are considered in sequence by the whole House until each clause in the Bill has been considered. The Bill is next expected to be debated on 24 January and is due to finish committee consideration on 31 January 2012. Details of the debate and amendment papers are available on the Parliament website.

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LA Accounts Too Cluttered, say Audit Commission

The Audit Commission have published a report 'Let's be clear', calling on councils to reduce 'clutter' in their financial statements. The Commission says some accounts are so complex even professional local government accountants have difficulty understanding them and the average length of local authority statutory accounts is 113 pages.

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Elderly Risk Losing Everything, Warns No 10 Adviser

The elderly care system is “broken” and needs urgent reform to stop pensioners “losing everything” to pay for help in old age, the Government’s chief advised has warned. Andrew Dilnot, who chaired a government commission on social care, has called on all three political party leaders to ensure that their talks lead to reform.

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State to Help Elderly Downsize

Elderly home owners will be encouraged to downsize to smaller properties and allow councils to rent their homes to local families under government plans to reduce the housing crisis. The Government has now backed a pilot being run by Redbridge Council, in east London, known as the “FreeSpace” project, which has already proved successful.

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Regional Pay Unworkable, Says Former IMF Advisor

George Osborne faced fresh criticism of his plans to introduce regional differences in public sector pay after a leading authority on the issue warned that the policy was virtually unworkable in the current political climate. Mr Osborne wants to regionalise pay because he believes that having higher state pay than private sector wages in poorer areas limits the amount of labour available to companies – and thus harms the economy. Officials are still not clear how they will implement the policy without a major political backlash in the regions.

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Gov Response to Welfare Reform Report

The Government has published their response to the DCLG Select Committee report 'Localsation Issues in Welfare Reform'. Specifcally the Committee considered the localisation of support for Council Tax.

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Cross-Party Talks on Social Care Begin This Week

Cross-party talks involving Health Secretary Andrew Lansley, the Lib Dem care services minister Paul Burstow and two members of the Labour health team will begin talks on the future of the social care system on Tuesday. Neither side prepared to make any public statements about them, although the government has said it will publish plans in the spring. Similar talks broke down acrimoniously before the 2010 election follwoing disagreements over funding.

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LGF Bill Receives Second Reading in House of Commons

The Local Government Finance Bill received its Second Reading in the House of Commons on 10 January. The Bill passed with a division vote (Ayes 332; Noes 232) and will now be considered in Committee of the whole House (in the Commons Chamber).

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Biggest Local Government Union Accepts Principles for Pension Deal

Unison, the largest trade union in local governmnet has agreed to accept the main points of the Governmnet's pension offer, paving the way for negotaitions on the finer points to progress. Discussion on proposals for the LGPS are due to run until April 2012. The Unison endorsement comes after Unite members rejected the government’s local government reform proposals the previous day.

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Council Staff Reject Government's Latest Pension Plan

Leaders of the Unite trade union have rejected changes to the local government pension scheme. A revised offer was outlined in December by Danny Alexander, Chief Secretary to the Treasury. It means that despite making concessions, the government is still facing significant opposition to its plans to cut its pension costs.

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David Cameron Orders Merging of Health and Social Care

David Cameron has ordered health and social care services to be brought together in order to benefit patients in a move which government advisers are calling the NHS's most urgent overhaul. At the moment, health and social care – the help given mainly to old or disabled patients to help them continue to live at home rather than in hospital or nursing homes – are different systems in England. NHS medical treatment and domiciliary support, which is provided mainly by local councils, are usually not joined-up.

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Additional £170m Social Care Funding for 2011/12 Announced

The Department of Health has announced one-off additional funding of  £150m for Primary Care Trusts in England, for immediate transfer to local authorities for investment in social care services which also benefit the health system. An additional £20 million will be allocated to the Disabled Facilities Grant for 2011/12, to help more people with a disability to access the aids and adaptations they require to live independently at home. Allocations will be confirmed shortly by the Department for Communities and Local Government.

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Next Phase of Local Public Audit

The Government is today publishing its proposals for the new arrangements for audit of local public bodies. Following the decision to abolish the Audit Commission, the Government sought views last year on a new, more transparent and accountable local public audit framework that would both reduce the cost of public audit and maintain high standards of scrutiny over public money. The Government will now begin a period of intense discussion with councils and audit firms so they can shape the practical details of the new, localised audit system. A series of workshops with council finance experts will begin this month.

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