My planning permission is due to expire, can I extend the period for implementation?
The Government announced on 22 June 2020 that it would be making provisions to enable planning permissions that have lapsed since 23 March 2020, and those that are due to lapse before the end of 2020, to be automatically extended.
The Government’s detailed proposals are set out in section 17 of the Business and Planning Act 2020, which entered the statute books on 22 July 2020. If a relevant planning permission is subject to a condition which requires the development to be begun no later than between 19 August 2020 (when section 17 of the Business and Planning Act 2020 will come into effect) and 31 December 2020, the condition is automatically deemed to instead provide that the development must be begun no later than 1 May 2021.
The Act also makes provision for any conditions requiring development to be begun between 23 March 2020 and 19 August 20202 to be extended to 1 May 2021, although this is not automatic. Where the provisions have such retrospective effect, an application is required to the local planning authority. The local planning authority are only able to grant approval, however, if they are satisfied that any EIA and habitats assessments continue to be valid. Deemed approval provisions will apply if the local planning authority do not determine any application within 28 days. The local planning authority are not able to approve such applications after 31 December 2020 so applications should be made in good time in advance of this date. There is the possibility of an appeal against the local planning authority’s decision but notice of the appeal must be submitted before 31 December 2020.
The Act includes similar provisions in relation to both detailed and outline planning permissions.
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The Flexible Furlough Scheme was introduced from 1 July 2020 and is due to come to an end on 30 September 2021.
Changing to shift working may give employers the opportunity to change hours / pay whilst also focusing work when it is needed. Like the other provisions, this should be done fairly, either across the board or by selecting teams/individuals based on objective business reasons. Imposing without agreement would create significant risk, therefore would require fair selection and consultation.
Some examples of the key questions to ask include:
- Is there still a viable underlying business that is likely to continue beyond the current crisis?
- What does the revised short to medium cash flow look like and will the company continue to be able to pay its liabilities?
- Does the company have the support of all of its stakeholders – lenders, shareholders, customers, suppliers and banks – even though the business might be in breach of its own obligations?
- What measures could (and should) the board put in place to protect creditors, including making sure that exposure to creditors (both collectively and individually) is not increased, assets are not sold at less than value and no creditor is treated more favourably than another?
- Is there still a reasonable prospect of the business avoiding liquidation or administration?
The key question is always whether accepting the money is in the best interests of creditors as a whole bearing in mind that accepting Government support and continuing to trade might increase the company’s overall liabilities. Directors should be mindful that if the business fails, their decisions during this critical time may be scrutinised and it is therefore important that directors have up-to-date financial information and projections to form the basis of any decisions, take stock, get the right advice and document the decisions that are taken.
The Commission has provided guidance as to measures which Member States can introduce without notification. These include:
- Measures which apply to all businesses within a Member State (for example the furloughing measures introduced by the UK Government)
- Measures providing support direct to consumers
- Measures which are already exempt from the notification requirement (discussed further below).
To respond to the crisis the European Commission has also issued a temporary framework to provide a basis for emergency aid to be notified for approval. The framework is initially in place until 31 December 2020. The Commission continues to keep this under review and has twice widened its scope to allow more types of aid to be notified. The type of measures covered include:
- The provision of guarantees (including guarantees for 100% of loans)
- The provision of loans at low interest rates, at zero interest rates or subordinated to senior debt
- Measures to support liquidity needs or to alleviate difficulties caused by the current crisis
- Measures to recapitalise businesses
- Measures to assist sectors hit particularly hard by the current crisis (eg transport)
- Measures targeted at COVID-19 such as research and development or production of products related to tackling the virus
The Commission has approved a UK Government “umbrella” notification to allow UK public authorities to adopt the measures permitted by the Commission framework. Therefore public authorities in the UK can use the Framework without notifying individual measures or schemes to the Commission.