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Save South East from crisis to drive national renewal, Localis report argues

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Press release

Embargo date: from 00.01 a.m., Wednesday 4th
December 2024

Save South East from crisis to drive national renewal, Localis report argues

Government must use the next Comprehensive Spending Review (CSR) to bring councils in the South East of England back from the brink of looming crisis and restore their strength and capacity to deliver on the national missions, the think-tank Localis has argued.

In a report published today entitled “Restoration and Resilience: building capacity and capability to deliver local services in the South East”, Localis reveals that despite its reputation for prosperity, councils serving the 9.2 million people living in the country’s most populous region are experiencing significant financial strain causing a worrying decline in their capacity to deliver vital local services.

According to the Localis study, councils in the South East must gain powers over local public sector recruitment policies and to set more competitive pay scales to attract and retain talent in the region. It further argues they would benefit from devolved control of immigration policy for key roles like care workers and in green skills to address acute workforce shortages made worse since Brexit.

Key findings from the report include:

  • financial strain: South East councils are facing significant financial pressures, with many resorting to minimum service provision.
  • capacity crisis:
    a shortage of skilled staff and outdated workforce practices are hindering service delivery.
  • fragmented governance: the region’s fragmented political landscape hinders effective collaboration and strategic planning.

To address these challenges, the report recommends a series of measures, including:

  • strengthening financial governance and strategic leadership
  • diversifying revenue streams
  • investing in workforce development and capacity building
  • promoting collaboration and partnership working
  • reforming the funding system
  • empowering local authorities through devolution.

Jonathan Werran, chief executive Localis, said: “The South East is a vital economic engine for the UK, but its local government system is under severe strain.

“We need urgent action in the forthcoming finance settlement and longer-term Comprehensive Spending Review settlement to ensure that councils across the South East region have the resources and tools to deliver essential services and drive economic growth and realise the national missions at the level of place.”

Sean McKee, director, South East Councils, said: “As ministers ponder structural matters for the South East like devolving powers and council sizes, an additional, crucial issue requiring dedicated focus is the local government workforce.

“Government is eager to pursue national missions to foster economic growth and bring social benefit. However, delivering those missions at the local level will require an adequate, skilled cohort of council staff on a range of services.

“The current delivery framework has limits and gaps in several service areas, these need to be addressed before any new responsibilities are bestowed.

“This report offers a timely spotlight on the regional council workforce, noting concerns around retention and recruitment, but also commenting and questioning the how, what, and why, related to enabling the South East region to be part of government’s quest for national renewal.”

Ruth Adams, chief executive, South East Councils, said: “The South East has always been a vibrant and enterprising place and our councils reflect this, and are ambitious to see increased capacity and capability to deliver their ambitions for the region.

“Recruitment and retention of staff together with developing a highly-skilled workforce is a priority for councils and as the regional employers’ organisation for the South East, we are pleased to support this report and to shine a light on these crucial issues.”

ENDS

Press enquiries:

Nuala Cudmore, communications and events manager, Localis
(Telephone) 0870 448 1530 / (Mobile) 07510 691149 / (Email) [email protected]

Notes to Editors:

  • An advance copy of the report is available for download here:

https://www.localis.org.uk/wp-content/uploads/2024/11/Localis-Restoration-and-Resilience-Report-A5-NOV24-PRF03.pdf

The report is being launched at an evening reception taking place at One Great George Street, Westminster on Wednesday 4th December

To register your place please register via this MS Form:

Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.

www.localis.org.uk

  • About South East Councils

South East Councils (SEC) is a cross-party membership association that works to ensure the South East England region is a great place to live, work and do business.

With most local authorities as members, we seek to provide a unified democratic voice on South East interests.

South East Councils is an associate member of the Local Government Association (LGA).

https://www.secouncils.gov.uk/

  • About South East Employers

SEE is one of the nine regional employers’ organisations which represent the interests of local authorities and public sector bodies in England. As the regional employers organisation for the South East, we are independent and not-for-profit. Through our wealth of local knowledge and professional expertise, we add value to our councils and communities and complement the work they do.

https://www.seemp.co.uk/about/

  • Key report recommendations
  • Local authorities in the South East should strengthen financial governance and strategic leadership.
    • Councillors should deepen their understanding of legal frameworks underpinning financial governance, ensuring full support for Section 151 officers.
  • Financial officers should embed ethics and integrity into their financial decision-making and adopt robust conflict of interest management and transparency protocols.
  • Officers should utilise data-driven insights, enabling councils to balance immediate demands with long-term sustainability.
  • Local authorities in the South East should strengthen commercial practices and diversify revenues.
  • Commercial activity must be balanced with robust risk management – including clear risk appetites early on in any commercialisation process to safeguard against the dangers of high-risk ventures.
  • Councils should adopt structured models to assess commercial maturity, ensuring that commercial strategies remain fundamentally aligned with strategic goals.
  • Local authorities should also consider CMIs and other bond-related options to finance projects such as infrastructure upgrades, renewable energy installations, and urban developments.
  • South East local authorities must collaborate in managing public service contracts.
  • Councils should work closely with partners to extract an expansive conception of value-for-money from contracts, particularly by leveraging the provisions of the upcoming Procurement Act.
  • By collaborating with other local authorities, councils can pool resources and achieve greater economies of scale in procurement and service delivery.
  • South East local authorities must engage in comprehensive, collaborative, and data-driven strategic workforce planning.
  • Local authorities should undertake regular assessments of their workforce’s age distribution, skillsets, and future retirement projections.
  • Local authorities should formalise regional partnerships to deliver bespoke training programmes, with county councils well-positioned to manage these initiatives.
  • Local authorities should explore a shared staffing framework modelled after WMTemps to reduce their dependency on agency staff and improve workforce stability.
  • Given the ageing workforce in local government, councils should develop succession plans for senior roles, including identifying potential internal candidates for leadership positions and setting up structured mentoring programmes.
  • Local authorities should work across the region to develop outplacement programmes to mitigate the impact of job losses whilst also addressing skills gaps.
  • South East local authorities should work towards revitalising apprenticeships and training
  • Local authorities should advocate for a more unified approach to make apprenticeship schemes more accessible and cost-effective.
  • Councils should collaborate with local businesses and educational institutions to create green and service resilience apprenticeship programmes.
  • Councils must begin to prioritise integrated, resilient, and preventative service models
  • Expand integration efforts by continuing to form cross-body, boundary and sectoral teams to plan, share resources, and deliver services collaboratively
  • Engage communities proactively through local surveys, forums, and partnerships with parish councils and community organisations to gather real-time insights into emerging trends.
  • Use data analytics to predict service demands, enabling early interventions that prevent escalation.
  • Local authorities in the South East must collaborate on infrastructure and housing delivery.
  • Foster cross-boundary collaborations on strategic planning to ensure cohesive development across local authority borders
  • Create local housing and infrastructure funds by establishing housing trusts, developing affordable and social housing, and coordinating with central authorities.
  • Align local investments with climate resilience goals by forming cross-council partnerships with bodies such as the Environment Agency, focusing on flood defences, coastal retreat strategies, and retrofitting.
  • Pursue collaborative, cross-authority infrastructure planning, pooling resources and developing regional cooperation frameworks to produce regional and sub-regional infrastructure plans.

Recommendations

Recommendations to local government

Recommendations to central government

  • Central government must push on with and accelerate reform of social care funding
  • Government must expedite its plans for a National Care Service, with clear funding mechanisms to alleviate local authority burdens. Integrating health and social care services, alongside implementing a cap on care costs, will help councils manage growing financial pressures.
  • Central government should create a long-term funding stream for social care to allow councils to better allocate resources to other critical areas
  • Government should consider reviving the Fair Funding Review and reset business rates
  • A renewed Fair Funding Review can work towards ensuring that funding allocations reflect present-day needs rather than outdated population and economic models
  • A comprehensive reset of business is necessary to address disparities in spending power across regions, particularly in the South East where the current system disadvantages many councils in unique ways.
  • The new MHCLG Workforce Development group must be empowered to provide support measures to address the staffing crisis in local government.
    • The Apprenticeship Levy should be reformed, allowing councils to charge an administration fee and streamlining funding and support mechanisms.
  • Government should invest in regional employment hubs to help scale up efforts to support to councils coordinate workforce planning.
  • The impact of employer national insurance contribution rises on council recruitment capacity must also be examined, with targeted discounts and exemptions considered.
  • The Spending Review, the English Devolution Bill and the Planning and Infrastructure Bill must work in tandem to establish and fund mechanisms for cross-boundary spatial planning.
    • Capital funds should be made available to consortia of councils who can produce plans for the provision of social and genuinely affordable housing.
  • Investment vehicles for local infrastructure provision should be supported through central government match funding.

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AI Revolutionizes Cryptocurrency Trading with Real-Time Analysis

AI algorithms are transforming cryptocurrency trading by offering real-time analysis and unprecedented efficiency. This article explores the technological advancements and their impact on the crypto market.

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Artificial intelligence is rapidly reshaping the cryptocurrency trading landscape, a fact made clear by recent reports from Bloomberg. The integration of AI algorithms into trading strategies is providing unprecedented real-time analysis and efficiency, a development that is attracting significant attention from investors eager to capitalize on the volatile yet lucrative crypto markets.

In May 2026, Bloomberg highlighted how AI technologies are enabling traders to process vast amounts of market data at speeds unattainable by human analysts. This capability allows for the detection of patterns and trends that might otherwise go unnoticed, offering a competitive edge to those who harness these tools. The real-time nature of these analyses means traders can make decisions based on the most current market conditions, enhancing the potential for profitable trades.

The application of AI in cryptocurrency trading is not merely a theoretical concept but a practical reality transforming investment strategies. For instance, hedge funds and institutional investors are increasingly relying on machine learning models to predict price movements and optimize trading algorithms. These models can analyze a myriad of factors, from market sentiment to historical price data, adjusting trading strategies dynamically in response to new information.

AI’s role in enhancing trading efficiency is particularly crucial in the cryptocurrency markets, where volatility is a constant challenge. The ability to swiftly process and react to market changes can mean the difference between a lucrative trade and a significant loss. This agility is driving interest from tech-savvy investors who are keen to leverage innovation for financial gain.

However, the rise of AI in cryptocurrency trading is not without its challenges. Regulators are grappling with the implications of these technologies, as traditional oversight mechanisms struggle to keep pace with rapid technological advancements. There is an ongoing debate about the need for new regulatory frameworks to ensure fair and transparent trading practices.

Despite these challenges, the potential benefits of AI in cryptocurrency trading are substantial. As the technology continues to evolve, it is likely to drive further innovation in the financial sector, offering new opportunities for growth and investment. Investors and firms that can effectively integrate AI into their trading strategies are poised to thrive in this new digital era.

The future of cryptocurrency trading appears increasingly intertwined with AI technology. As more traders adopt these advanced tools, the market dynamics will likely shift, favoring those who can adapt quickly to technological changes. The ongoing integration of AI into cryptocurrency trading not only heralds a new era of financial innovation but also underscores the transformative power of technology in shaping the future of finance.

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The Rise of Green Finance in Europe: Challenges and Limitations

Explore the burgeoning field of green finance in Europe, focusing on the critical challenges and limitations that could shape its future. This article provides a thorough analysis of the barriers to sustainable investment growth and the potential implications for investors.

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As the sun rises over Europe’s financial districts, a new wave of investment strategies is beginning to take shape. Green finance, a term that encapsulates financial investments flowing into sustainable and environmentally friendly projects, is gaining traction across the continent. However, beneath the surface of this promising trend lie significant challenges that could impede its progress.

The current landscape of green finance in Europe is characterized by an increasing number of funds and initiatives aimed at supporting sustainable development. The European Union has been at the forefront, implementing a comprehensive framework that encourages green investments. This includes the EU Green Deal and the Sustainable Finance Disclosure Regulation (SFDR), which aim to direct capital flows towards sustainable economic activities. Despite these efforts, the journey towards a universally green financial system is fraught with obstacles.

One of the primary challenges facing green finance is the lack of standardized definitions and metrics. What exactly constitutes a ‘green’ investment can vary significantly across regions and sectors, leading to confusion and inconsistency. This lack of clarity can result in greenwashing, where investments are marketed as sustainable without meeting rigorous environmental criteria. The absence of a unified taxonomy complicates efforts to assess and compare the sustainability of different financial products.

Moreover, the transition to green finance is hindered by the existing financial infrastructure. Traditional financial systems are deeply entrenched, often prioritizing short-term gains over long-term sustainability. This systemic inertia makes it difficult for green initiatives to gain a foothold. Additionally, many investors are still skeptical about the profitability of sustainable investments, perceiving them as risky or less lucrative compared to conventional options.

Another significant limitation is the uneven distribution of green finance across Europe. While countries like Germany and the Nordic nations have made substantial progress in integrating sustainable practices, others lag behind due to economic and regulatory disparities. This imbalance poses a challenge to achieving a cohesive and effective green finance strategy across the continent.

The role of technology and innovation in overcoming these challenges cannot be overstated. Advancements in fintech, such as blockchain and artificial intelligence, have the potential to enhance transparency and efficiency in green finance. These technologies can help track and verify the environmental impact of investments, thus building trust and credibility in the market.

Despite these hurdles, the future of green finance in Europe holds promising opportunities. As awareness of climate change grows, so does the demand for sustainable financial products. Investors are increasingly recognizing the long-term benefits of aligning their portfolios with environmental goals. Furthermore, regulatory pressures and societal expectations are likely to drive more companies towards sustainable practices, thereby expanding the scope of green finance.

In conclusion, while the rise of green finance in Europe is a step in the right direction, it is not without its challenges. Addressing the issues of standardization, infrastructure, and regional disparities will be crucial in unlocking the full potential of sustainable investments. As Europe navigates these complexities, the outcome will not only shape the future of its financial markets but also its commitment to a sustainable global economy.

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Fed Ends Crypto-Specific Oversight: What It Means for the Industry

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By PromoMag Business Desk | August 2025

The U.S. Federal Reserve has officially ended its dedicated oversight program for crypto and fintech—signaling a shift in how regulators will handle digital asset activities going forward. The “novel activities” supervisory program, introduced in 2023, is being dissolved, with crypto oversight now folded back into the Fed’s traditional bank examination framework. The decision has stirred debate across the financial world, as institutions assess whether this signals regulatory maturity—or strategic retreat.

The implications are significant. From compliance teams at major banks to fintech startups vying for legitimacy, everyone involved in digital assets must now recalibrate to meet evolving expectations without the specialized lens once offered by the Fed’s focused crypto arm.

The move suggests the Fed believes crypto is now mainstream enough to be treated as part of general financial supervision—yet critics worry this could dilute the nuanced oversight digital assets require.

Background: The “Novel Activities” Framework

The Fed launched its novel activities supervision program in August 2023 in response to growing integration of crypto, stablecoins, and blockchain-based banking functions across U.S. financial institutions. The initiative aimed to provide centralized expertise and scrutiny for risk-laden innovations, including tokenized assets and distributed ledger operations.

It operated parallel to traditional supervisory mechanisms, offering more specialized attention to high-risk fintech and crypto ventures while maintaining consistency across regional Federal Reserve Banks.

This structure was designed to address growing concern about the systemic risk posed by digital assets—especially in the wake of crypto collapses like FTX and TerraUSD.

Why the Fed Is Pulling the Plug

Fed officials have not framed the closure as a downgrade of crypto’s importance, but rather as a consolidation of resources. According to internal briefings, the rationale centers around streamlining compliance review, increasing supervisory efficiency, and reducing regulatory overlap.

A spokesperson from the Federal Reserve Board stated:
“We are embedding digital asset risk monitoring within our standard supervisory models, ensuring consistent treatment across all novel activities.”

In essence, the Fed believes that its traditional supervisory programs are now sophisticated enough to handle digital asset risks without the need for a separate channel.

Industry Response: Mixed Signals

Reactions from the financial sector are divided.

Major banks—including those offering crypto custody services or tokenized asset platforms—have expressed relief at the perceived reduction in regulatory burden. According to a senior compliance officer at a top-five U.S. bank:
“It’s a positive signal. The Fed sees crypto activities as part of the financial mainstream.”

However, fintech startups and some policy analysts worry the decision could lead to a loss of institutional expertise and focus, potentially making it harder to navigate complex regulatory expectations.

Crypto advocacy groups, such as the Blockchain Association, warned that “folding crypto oversight into legacy systems” could slow innovation and diminish clarity for newcomers to the space.

Regulatory Consequences for the Crypto Ecosystem

This shift creates a new regulatory reality for institutions engaged in digital asset activities.

Firms can expect a more generalized approach to supervision, one less tailored to the unique volatility and structural intricacies of blockchain technology. While this might reduce compliance complexity, it also removes the layer of crypto-specific feedback once provided under the novel activities program.

The Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC) have shown no indication of following suit, meaning regulatory fragmentation in the U.S. will likely persist.

Moreover, it raises questions about the future of coordinated federal crypto policy—especially as debates continue over stablecoin regulation and the role of central bank digital currencies (CBDCs).

Global Context: Lagging or Leading?

The Fed’s move contrasts with approaches taken in Europe, Asia, and even the UK.

The EU’s Markets in Crypto-Assets (MiCA) regulation has introduced a fully bespoke framework for digital asset supervision, offering clarity and structure to market participants. Hong Kong and Singapore have likewise invested heavily in dedicated crypto regulation teams and innovation hubs.

In the UK, although regulatory clarity has been slow, the recent announcement that retail investors will soon access regulated crypto ETNs on the London Stock Exchange underscores a willingness to evolve within clear frameworks.

As a result, some experts argue the U.S. risks falling behind its global peers in crypto governance and innovation readiness.

What Happens Next

For institutions, the end of the Fed’s crypto-specific program means adapting to a more homogenized—but perhaps less predictable—regulatory regime.

Financial firms should review their risk disclosures, audit procedures, and supervisory expectations to align with the broader examination frameworks now in place. The Fed is expected to release updated supervisory guidance before the end of 2025 to assist with the transition.

Market watchers will also look to Congress for any moves toward legislative clarity, particularly around stablecoins, custody rules, and crypto exchange oversight.

Final Thoughts

The Fed’s decision to retire its novel activities supervision marks a turning point. On the one hand, it acknowledges crypto as no longer “novel”—but rather as an established component of financial services. On the other, it risks flattening the regulatory nuance needed to address crypto’s unique challenges.

Whether this shift accelerates mainstream adoption or muddies the regulatory waters will depend on how swiftly and clearly the Fed communicates its new expectations.

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