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The Chartered Institute of Public Finance and Accountancy has endorsed the formation of a new company, INTEGER, to provide treasury management advisory service. INTEGER's four executive directors come from the banking, corporate, stockbroking and local government sectors. Peter Haring represents banking. His career and his views about the role of local authorities in treasury management are discussed.

The idea of government departmental reports in the United Kingdom emanated from the need to improve the information flow concerning public expenditures between Parliament and local authorities. The system of reporting implemented in 1991 gives departments much leeway in the choice of expanding and choosing extra information to be relayed. This increased information is a boon to public interest groups. However, if accountability to the public is to be taken seriously, the reports have to be made available to them at a reasonable price.

Local government councils may have difficulties in collecting business rates as changes affect the business rates transitional arrangements. Under assumption of lower rates, businesses could delay payment, severely affecting collection by local authorities. The revised business rates will favorably affect approximately half a million English and Welsh businesses which were anticipating real term increases of from 10% to 20% for the 1992 to 1993 period. Savings to businesses resulting from the transitional arrangement changes are expected to reach 320 million pounds sterling.

The United Kingdom's plans to commute loan grant payments from installment schemes to lump sums has raised apprehensions about increased spending on the part of local authorities for the years 1993 to 1994. The grants for loan charges are in the areas of home improvement, city development and slum clearance. The lump sum payments are to be paid to the Public Works Loans Board. The financial burden on local authorities is great since costs of loans which are felt only gradually in an installment payment plan will now be fully experienced after the implementation of the plan in Oct 1992.

A unified policy on local government finance for the United Kingdom is far from becoming a reality since politicians from the country's three largest parties continue to bicker about poll tax replacements proposals. Each of the proposals results in wide variations in tax payments and none provides a balance between equity and efficiency. As a solution to such a dilemma, a Royal Commission that would evaluate the local finance problem is proposed.

UK local councils that invested in the failed Bank of Credit and Commerce International Ltd (BCCI) are being given temporary credits by the UK government to cover losses. However, local councils do not agree with the measure which the Dept of Environment recommended because if BCCI is dissolved, the investments will be classified and written off as capital expenditures. As a result, the credits will be charged against their succeeding allocations. The councils instead propose that credits be made temporary until BCCI is liquidated and the real extent of investment losses are known.