Local Government Chronicle

Court action could follow Iceland losses: Local Government Chronicle

 
Local authorities are likely to sue treasury management advisors Butler and Sector over councils’ potential losses from Icelandic banks, according to local government financial consultant Howard Knight.
 
“In the light of the evidence given at the [Communities and Local Government] Select Committee on January 26th, I have no doubt that councils will be seeking expert advice [...]

Inflation + recession = budget crisis: Local Government Chronicle

 
The Government’s grant increases of 4.2% and 4.4% for English councils for the next two years are significantly below the inflation rate for goods and services bought by local authorities, which have been badly hit by hikes in fuel and food costs. Added to which, local government minister John Healey told the House of Commons, [...]

Should council funds go for bonds?: Local Government Chronicle

 
Boots the Chemists stunned the corporate world seven years ago by switching all its pension fund’s equity investments into bonds. Its decision reflected both pessimism in the prospect for shares and the impact of accounting standard FRS 17, which requires companies to declare pension fund liabilities on company balance sheets, based on current market values.
 
Life [...]

Butlers advised six of hardest hit councils: Local Government Chronicle

Six of the seven councils facing the largest potential losses from investments in Icelandic banks were advised by one firm, Butler’s, analysis by LGC reveals. Only Haringey of the most affected seven local authorities was advised by another firm, Sector Treasury.
 
Asked for an explanation, Butler’s representative, Mike Sheard – the communications director of parent company [...]

Credit ratings agencies face examination: Local Government Chronicle

Nigh on one billion pounds buys an awful lot of bucks, even at current exchange rates. And there is a hell a lot of buck-passing going on when it comes to accepting responsibility for the £920m of investments and deposits in Icelandic banks potentially lost by local authorities.
 
Councils say they relied on credit ratings agencies’ [...]

Council pension schemes are next victim: Local Government Chronicle

Meltdown in the global financial markets has hit local government pension schemes hard. Not only are they all badly affected by the vicious fall in share prices, but some held direct investments in institutions and securities that collapsed in value.
 
Perhaps surprisingly, the failure of the giant US investment bank Lehman Brothers has brought some of [...]

NI council reorganisation announced: Local Government Chronicle

Belfast City Council will take over parts of neighbouring Lisburn, Castlereagh and North Down districts under plans to reform local government in Northern Ireland. A new Newry and Down District Council will cover the whole of the Mournes Area of Outstanding Natural Beauty, including some of the existing Banbridge district.
 
The reorganisation of local government will [...]

Finding SOLACE in Belfast: Local Government Chronicle

 
SOLACE delegates who have not visited Belfast for a few years will be amazed as they look out from the windows of the Waterfront Hall during this week’s [next week's] annual conference. Below them is the emerging ‘Titanic Quarter’ – Europe’s largest waterfront development.
 
The last time SOLACE held its conference in Belfast was 11 years [...]

The end is nigh - for final salary schemes: Local Government Chronicle

 
Local government’s final salary pension scheme will cease to exist within four years. That is the dramatic prediction of authorities’ own pension fund managers and other senior council finance officials.
 
A survey of participants at recent seminars organised by fund advisers Mercer found that 75% believe that the current final salary scheme will not exist by [...]

Listening to the children: Local Government Chronicle

 
Children in care
Children in care are now more likely to be listened to by local authorities, but more needs to be done to make more children in care feel safe, according to the first Children’s Care Monitor report. While children are able for the first time to report regularly on their experiences, too many – [...]