LOCAL GOVERNMENT

Reeves Eyes £80bn Investment with Pension Megafunds

Chancellor Rachel Reeves is poised to announce a transformative Pension Schemes Bill aimed at consolidating the UK's £400bn local authority pension schemes, unlocking £80bn for investment in business and infrastructure. This strategic move, to be unveiled in her first Mansion House speech, seeks to enhance the efficiency and investment potential of local pension funds by pooling resources into larger funds. Government analysis indicates that pension funds yield higher productive investment levels when managing assets between £25bn and £50bn. Reeves' plan draws inspiration from successful models in Australia and Canada, where larger pension schemes have driven significant investment in infrastructure and private equity.

The proposed changes include setting a minimum size for multi-employer defined contribution schemes, encouraging the creation of megafunds. This initiative aims to provide UK pension savers with the benefits of scale, such as improved governance, investment expertise, and portfolio diversification. Industry leaders, including Standard Life CEO Andy Curran and BVCA chief executive Michael Moore, have welcomed the focus on scale and efficiency, recognising the potential for better outcomes for savers and increased investment in the UK economy.

EHCP EFFICIENCY

Transforming EHCP Processes: How Agilisys’ EHCP Plus Frees Up Time for SEND Support

Local authorities face increasing EHCP demand, stretching staff and impacting the support SEND children receive. Agilisys' EHCP Plus tool reduces the time associated with creating a preliminary first draft for EHCP plans, enabling SEND caseworkers to focus on impactful work with families, parents and children. Using GenAI, EHCP Plus creates the draft of an EHCPs in minutes, saving on average of 5 hours per plan. This efficiency could release over 40,000 days of professional time back into the SEND system annually, based on 2022 figures.

EHCP Plus offers a streamlined, customisable, and GDPR-compliant solution that meets statutory timelines while maintaining high-quality standards. Join the growing number of local authorities transforming their EHCP processes with Agilisys Transform's EHCP Plus.

LOCAL GOVERNMENT

Government Ends Oversight of Council's Four-Day Work Week Trial

The Best Value Notice for South Cambridgeshire District Council's four-day week trial has expired, with the government deciding not to renew it. Initially issued by the Conservative government, the notice required the council to prove value for taxpayers while maintaining service quality. Despite concerns about reduced capacity, a July report indicated the council upheld service standards. The Ministry of Housing, Communities and Local Government acknowledged the council's constructive engagement, signalling an end to micromanagement.

Council leader Bridget Smith expressed relief, highlighting the burden of submitting extensive data without feedback. The trial remains controversial, with opposition citing unresolved issues and staff dissatisfaction. The council awaits financial clarity for 2025-26 before consulting on the four-day week's future.

LOCAL GOVERNMENT FINANCE

Thurrock Council Considers Legal Action Against Over 20 Local Authorities

Thurrock Council, facing financial distress, plans to sue over 20 councils, alleging negligent solar asset valuations by APSE, leading to significant losses. APSE denies these claims, warning of high legal costs for councils, potentially affecting all 250 UK councils. Each council might incur £25,000 in legal advice costs. APSE's chief executive, Mo Baines, hopes for a resolution, questioning the fairness of other councils bearing Thurrock's financial burdens.

High Court proceedings target businessman Liam Kavanagh and Rockfire Group, linked to Thurrock's investments. A government report highlighted systemic failures under previous Conservative leadership. Labour's John Kent, now council leader, emphasises exploring all recovery avenues. Thurrock reclaimed £513m last year, with £90m more expected, reducing its debt to £1bn. The council's 2024-25 budget is set at £172.4m.

LOCAL GOVERNMENT FINANCE

Barnsley Council Faces £19m Budget Shortfall Amid Financial Strain

Barnsley Council faces a £19m funding gap, necessitating "difficult choices," according to leader Sir Stephen Houghton. Despite financial challenges, a ""flexible plan"" is in place to balance the budget. The government's recent Budget, including £1.3bn extra funding for councils, is seen as a positive step, yet more action is needed to reverse financial decline.

The council's finances are strained, with rising National Insurance contributions impacting costs, particularly for suppliers like adult social care providers. Barnsley Council overspent by £10m last year and anticipates a £25m gap over three years. A comprehensive plan aims to deliver efficiency savings, but the situation remains critical, requiring urgent attention.