Monday, 2 June 2014

New Cornwall scheme to boost town and parish finances

Cornwall Council has launched a new scheme to give a greater return to town and parish councils on money that they hold. Our aim is to pass on some of the benefits of our size to others in Cornwall.

As with many organisations, there are times during the year when towns and parishes have lots of money that they will spend as the year progresses. They need to have this money instantly available and the return they can get from their bank is very low, typically about 0.1%.

On the other hand, Cornwall Council can get a much higher return because of our size and credit rating (we hold the highest possible credit rating for a UK council). At the moment we can get around 1% on money to which we retain instant access.

So Cornwall Council is using its position in order to help towns and parishes. The council will hold money for local councils in our bank account and give them back a much higher return than they could get on their own. Cornwall Council will charge an administration fee but not make a profit and so the return we give will be about seven and a half times as much as they could get on their own - around 0.75%.

I launched this scheme at the end of last week, signing an agreement with St Austell Town Council Deputy Mayor Brian Palmer. Launceston Town Council has also agreed to take part and we are talking to all other towns and parishes in Cornwall to offer them the same facility.

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