Minutes:
In introduction, the following areas were identified as falling within the remit of this work area:
· Housing Finance
· Infrastructure Finance/Local Growth Fund
· Financing arrangements for One Public Estate Programme
· Capital Finance
· European Funding
It was emphasised that work needs to concentrate on areas where the LGA can add value, and make sure links with other Boards work programme are understood to minimise overlap. The role of the Portfolio would be to identify issues, illustrate them, and propose solutions.
In discussion, a number of points were made, and suggestions made for areas for investigation and further work:
· In all areas members identified that local solutions will need to be identified for local needs. Different areas will face different problems and the solutions looked at need to reflect that. Some localities will not be able to benefit from some possible solutions (e.g. additional powers granted to mayors will not be available to areas without mayors, and the mayoral model may not be suitable for some areas).
· How can infrastructure schemes be developed so that they can be attractive for pension fund investment or investment by other such as the EU Investment bank. Will the pooling of pension fund investments announced recently have an effect on this? No pension fund will invest in any scheme that does not make an acceptable rate of return. The need to find mechanisms to fund infrastructure that will not generate a long term income stream was identified as a priority (tolls for roads? Flood works? Schools?).
· Members suggested some evaluation of the recently announced changes to business rates and opportunities for additions to rates may be relevant here; the changes to business rates will be picked up in the Local Government finance work stream.
· Can councils develop schemes to facilitate or enable private investment in infrastructure – e.g. by helping fund developers’ cash flow?
· There is clear overlap with the Environment, Economy, Housing and Transport Board, particularly on Housing. The remit of this group needs to concentrate on the Housing finance and the mechanisms behind it. Members distinguished between the investment in infrastructure that enable building of new houses to take place and actual investment in new housing. Mechanisms proposed for investigation included the Housing Revenue Account ringfence, Community Infrastructure Levy, and Section 106 funding. Links to the LGA Housing Commission will be important and a way to channel the housing finance input. This group should focus on financial impact of proposed or potential change in relation to housing policy considering impact, evidence and options/solutions and will need to feed this into policy work.
· Are there untapped opportunities from EU funding and the One Public Estate programme?