possible alternative approaches to delivering energy and utility services. The Government has set a target of zero carbon emissions from all new built homes by 2016 and this constitutes a challenge in itself. After a number of acronyms were explained, such as EDNO, ESCo, MUSCo and MUSIS, Kerry illustrated how utilities can be used to create a revenue flow and increase the asset value. The example of the London Borough of Newham showed that additional asset value of £200 million was achieved through sourcing the utilities.
Session 2 had Tim Shaw and Victoria Thourgood from Nabarro presenting their subject “Driving Regeneration and Innovation”. Tim and Victoria opened by giving a brief history on funding sources in local government. In the Victorian era 90% of all income was raised locally. More recently, the “traditional” sources have been capital receipts, section 106 monies, grants, ERDF, Prudential borrowing and the like – all very familiar to the delegates. Tim and Victoria then set out the modern, alternative sources – and it turned out to be a good morning for acronyms: TIFS, RGF, LABV, CIL, and don’t forget lovely JESSICA, all come into play now and should be considered, together with sources such as the Growing Places Fund, New Homes Bonus, HRA reforms, local business rates, and retail bonds. Tim and Victoria outlined the pros and cons of the funding sources and concluded that moving forward, local authorities should consider borrowing from a wider range of sources than before and, possibly, seek to leverage in private sector funding.
After coffee and a break from acronyms, the next presenters were Clair Higgins and David Couch from BNP Paribas, whose subject was “Looking Ahead – Where Now for the UK?”
Clare opened by giving an outlook for the UK economy and the property market and provided statistics which were a bit depressing should the forecasters and soothsayers turn out to be right. Some of the stats and predictions: the current recession will last 26 quarters and will not be over until Q3 in 2014. By comparison, for those of us old enough to remember them, the 1979 to 1983 downturn lasted 14
6
quarters and the 1990 to 1993 recession lasted 11 quarters. Unemployment today is approx. 8.3% and so far some 385,000 public sector jobs have been lost. Capital growth in property has bottomed out and during 2011 of the £33 billion invested in property, a third came from overseas investors. Retail recovery is patchy, although London is holding up well. In fact, the UK property market is currently a two tier market – London versus the rest, with London doing well, and the rest of the UK in the doldrums. Clare told us the economic forecast for growth in GDP for 2012 was “rubbish” – about 0.8%. David took over and tried to cheer us up by telling us there was still activity in the property market – it was just harder work and took longer to do deals. But deals are being done! The players in the market are property companies, opportunity funds, long term strategic players, house builders, and solvent holders of underperforming assets.
The final session of the conference was presented by Terry Hodgkinson CBE DL entitled “Inspired Leadership for Britain’s Global Recovery”. Terry opened by agreeing with Clare’s forecasts that the current recession would turn out to be the longest one yet and he thought that property prices would not return to the highs of 2007 until 2014/15. Again, London was faring far better than the rest of the UK and had the Olympics and Crossrail to boost development. The difference between AAA and secondary property was massive, with the former (mostly in London) holding up well and the latter depressed. Terry used Sir Bob Kerslake’s time as Chief Executive of Sheffield City Council as a good example of how inspired leadership could transform a city. Terry mentioned how Sir Howard Bernstein of Manchester City Council worked with Sir Bob to help the latter with his achievements in Sheffield. Terry then looked at the qualities which great leaders had which set them apart, and these were: integrity, enthusiasm, warmth, courage, judgement, being tough but fair, and humility, all of which, when combined, lead to wisdom. Terry distinguished management and leadership, which are very different: you manage things, but lead people. Terry then told us that the role of the inspirational leader was to provide
the vision, to help people connect, to be a coach, to treat innovation as a religion, and to embrace diversity. Terry emphasised the need in the current difficult times to find and bring along the next generation of inspirational leaders, with Kersten England, CEO of York City Council likely to be one of them.
That concluded the business part of the conference and Heather McManus wound up the proceedings and closed the conference.
As your reporter, it leaves me to thank the speakers for their excellent, informative and thought provoking presentations which were of a very high calibre and very relevant for an ACES conference. As always, thanks and appreciation goes to our sponsors, without whom we wouldn’t have a conference, and last but not least, congratulations and thank yous are extended to Daniella Barrow and the North East Branch for putting on such an excellent conference: it almost matched the giddy heights of our London conference last year!!
Onwards and upwards now to Lancaster in September.
THE TERRIER - Summer 2012
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