Oral Answers to Questions

Robert Neill Excerpts

Monday 10th November 2014 Commons Chamber

[Brandon Lewis]

There is about £2.8 billion of headroom in the housing revenue account across local authorities. We have recognised this year that some authorities that have been building have come close to that headroom, so we made extra money available. We have already announced some bids and will announce some more shortly. I encourage local authorities to bid to take up this opportunity, along with the housing guarantee grants that we have been offering with housing associations to provide more affordable housing. I am proud that we have managed to deliver more than 200,000 such houses over the past couple of years.

[Robert Neill (Bromley and Chislehurst) (Con)]

9. When his Department plans to issue a final response to the consultation entitled “Opportunities for collaboration, cost savings and efficiencies”; launched in May 2014, on the local government pension scheme.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)]

Our consultation outlined how £660 million a year could be saved if local government pension funds were invested more efficiently. We will publish a response in due course. Many funds have already started to take the messages from the consultation on board.

[Robert Neill]

I hope that “due course” will not be too long delayed, because my hon. Friend is absolutely right to recognise the significant savings that have been made to taxpayers and scheme members by the agglomeration of vehicles. When he takes on board the consequences of the consultation, will he particularly bear in mind the value that can be brought by collective investment vehicles, which can achieve some 90% of those savings without significant administrative upheaval and can provide useful vehicles for wider investment?

[Kris Hopkins]

The consultation considered how some £240 million could be saved by creating combined investment vehicles. It should be noted that London borough councils have already taken that on board and some 30 councils have come together after their council meetings and have agreed to bring those funds together.