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Finance Bulletin

Dear colleague,

Welcome to October’s finance bulletin.

Business rates revaluation hit the headlines at the end of September with the publication of the Valuation Office Agency’s (VOA) 2017 draft valuation list for non-domestic properties, which will take effect from April 2017. The Department for Communities and Local Government (DCLG) consulted on a transitional relief scheme to assist ratepayers in managing the impact of the changes.

The Government has previously indicated that, as far as is practicable, authorities’ retained business rates income should not be affected by the revaluation. DCLG’s technical consultation on the 2017/18 local government finance settlement proposed adjustments to top-ups and tariffs to cancel out the impact of revaluation.

It’s now a year since the proposals for increased business rates retention were first announced by the Government. As the reforms continue to progress, our next annual finance conference, ‘2020 vision’, will focus on the current state of play of the policy. There will be an opportunity to hear from leading figures in both local and central government involved in its development, in the run-up to implementation by the end of this Parliament. The conference will take place on Thursday, 5 January 2017 at the Coin Street Conference Centre near London Waterloo. You can book your place here.

Finally, the LGA is moving to Layden House in Farringdon (details below) from today for up to a year, whilst our Smith Square offices are refurbished. Telephone numbers and email addresses will remain the same.

Stories

Autumn Statement 2016

Ahead of the Chancellor’s Autumn Statement on 23 November, the LGA submitted our representation to HM Treasury. The submission spells out the urgent need to achieve financial stability for local government. The LGA calculates an overall £5.84 billion funding gap for the sector by 2019/20.

Consultation Responses

Several DCLG consultations on finance issues closed in October. The LGA submitted a response to the consultation on the implementation of the ‘check, challenge, appeal’ system from April 2017.

We have also responded to the consultation on transitional arrangements for the 2017 business rate revaluation and the technical consultation on the 2017/18 local government finance settlement. Both responses will be available on our website shortly.

Public Sector Audit Appointments: ‘Opt-in’ Invitations

Public Sector Audit Appointments (PSAA) expects to issue invitations to councils by early November 2016 for ‘opting in' to arrangements by the sector-led body for audit appointments, with responses required by early March 2017. If your authority has not yet expressed an interest and wishes to be involved, please contact tim.watkinson@local.gov.uk. PSAA has also launched a consultation on 2017/18 audit fees with a deadline of 12 January 2017.

Markets in Financial Instruments Directive 2 (MiFID2)

The Financial Conduct Authority (FCA) has published a consultation on the implementation of the MiFID2 directive, which closes on 4 January 2017. The proposals will impact on the regulation of local authorities’ treasury management activities; the relevant pages of the consultation document are p.37-41 and p.150-162. The LGA intends to respond on behalf of the sector, please send any comments to lgfinance@local.gov.uk

Sharing Ideas

#OurDay – Sign-up to the Thunderclap and Twibbon

Taking place on 15 November, #OurDay is our annual tweetathon to showcase the many and varied things councils up and down the country do to deliver the best for residents. Please sign-up to the thunderclap and use the twibbon to help spread the word of this fantastic day for local government. We have also produced a toolkit to help councils to get the most out of the day, including posters and top tips. 

Media

£2.6 billion could be needed to fix social care - LGA warns
13 October

LGA responds to Chancellor's EU funding guarantee
4 October 

Events

2020 Vision: LGA annual finance conference 2017
5 January 2017
Our annual finance conference will focus on the latest plans for further business rates retention by 2020. The 2017/18 settlement, including the impact of revaluation on councils will also be covered.

The LGA is moving office

From today, the LGA is temporarily relocating to our other property in Farringdon while refurbishment work takes place at our Westminster office. Find out more.