DCLG use of capital receipts from asset sales for service reform
24 September 2013
This consultation aims to gauge the level of interest from local government for the use of capital receipts to pay for the revenue costs of reforming, integrating or restructuring services. The consultation is based on a series of six questions which range from the principle of having a scheme to some of the technical details associated with it.
The Association’s response suggests that local authorities should have a local discretion, in conjunction with their appointed external auditors, to best determine how exceptional revenue costs would be funded from their own or shared capital receipt pool and/or a reduced MRP in year provision. Together with this any Government proposal should have at its centre flexibility of application and ease of use and that arrangements need to be in place for the beginning of the 2014/15 financial year. It also maintains that the existing capital directions are maintained, but that the funding from grant holdbacks/ slicing need to be ceased.
View the full ANEC response here.