What are the changes to the law?
On 25th June 2020, the Corporate Insolvency and Governance Act, among other things, introduced new restrictions on suppliers of goods and services to terminate the contract in the event that the customer enters an insolvency process. This has very important consequences for many businesses as it could expose them to greater financial risks.
Related FAQs
The CMA is particularly concerned about certain activities, its guidance highlights:
- Exchange of commercially sensitive information where this is not necessary in response to the crisis
- Collaboration which unfairly excludes third parties
- Abuse of a dominant position (including a dominant position held as a result of the crisis) – particularly to charge excessive prices
- Seeking to maintain prices or prevent reductions in prices
- Cooperation going beyond what is necessary to respond to the crisis in the interests of consumers
For the purposes of collective consultation, making someone redundant and/or changing terms and conditions of employment, by termination and re-engagement, is also classed as a dismissal by reason of redundancy and so has the exact same consultation requirements.
Physical bundles may not be regarded as safe for public health and there are obvious difficulties in providing them with the current restrictions in place. Electronic bundles should be provided in PDF format, preferably paginated, indexed and bookmarked. The bundles should only contain documents and authorities that are essential to the issues required to be decided at the remote hearing and should be filed with the court by email.
The Town and Country Planning (Use Classes) (Amendment) (England Regulations) 2020 were laid before Parliament and come into force on 1 September 2020. They apply in England only.
The changes include the revocation of the following Use Classes;
- A1 – shops
- A2 – financial and professional services
- A3 – restaurants and cafes
- A4 – drinking establishments
- A5 – hot food takeaways
- B1 – business. Also revoked are the sub parts of B1;
- B1(a) – offices
- B1(b) – research and development of products and processes
- B1(c ) – industrial process
- D1 – non residential institutions
- D2 – assembly and leisure
The changes include the amendment of the following Use Class;
- B2 (industry)
The changes include the introduction of the following Use Classes;
- E – commercial, business and service
- F.1 – learning and non-residential institutions
- F.2 – Local community
There are no changes to the following Use Classes;
- C1 – hotels, boarding and guest houses
- C2 – residential institutions
- C3 – dwellinghouses
- C4 – small HMO
From 1 September 2020;
- Small retail shops (not more than 280 sq metres net sales area) selling essential goods including food and at least 1 kilometre from another shop will cease being an A1 use and will become a F.2 (local community) use;
- Other A1 shops will become an E (commercial, business and service) use;
- A2 uses will become an E (commercial, business and service) use;
- A3 uses will become an E (commercial, business and service) use;
- A4 uses will not be in a Use Class, they will be sui generis, ie not in any use class;
- A5 uses will not be in a Use Class, they will be sui generis, ie not in any use class;
- B1 uses (included B1(a), B1 (b) and B1 (c) will become an E (commercial, business and service) use;
- B2 uses will either be B2 uses or will be Class E uses.
- Clinics, health centres, creches, day nurseries and day centres (previously D1 uses) will become an E (commercial, business and service) use;
- Schools, non residential education and training centres, museums, public libraries, public halls, exhibition halls, places of worship, law courts (previously D1 uses) will become an F.1 ( learning and non-residential institutions) use;
- Cinemas, concert halls, live music performance venues, bingo halls and dance halls (previously D2 uses) and will be sui generis, ie not in any use class;
- Gyms, indoor sport, recreation or fitness not involving motorised vehicles or firearms principally to visiting members of the public (previously D2 uses) will become an E (commercial, business and service) use;
- Hall or meeting place for the principal use of the local community (previously D2 uses) will become an F.2 (local community) use;
- Indoor or outdoor swimming baths, skating rinks, outdoor sports or recreation grounds (not involving motorised vehicles or firearms) (previously D2 uses) will become an F.2 (local community) use.
Changes of use within a Use Class do not constitute development. That being the case, provided the Order is applicable, its operation not having been restricted by planning condition, Agreement or Article 4 (1) Direction for example, planning permission would not be required, development as defined not happening. If legally binding confirmation is required that planning permission is not required this can only be obtained by way of a successful application for a Certificate of Lawfulness. In the absence of such, there is some risk.
It remains the case that planning permission may be required for operational works to buildings. It also remains the case that other consents and permissions may be necessary for example licenses. Furthermore amendments to leases may be required if the property is rented.
The Regulations additionally include transitional arrangements because of permitted development rights for changes of use in the Town and Country Planning (General Permitted Development) (England) Order amongst others. To respond to this Regulations introduce a ‘material period’ which is defined as meaning the period beginning 1 September 2020 and ending 31 July 2021. It is expected during the material period the Orders giving permitted development rights for changes for use which do constitute development will be amended / updated to reflect the new use classes.
Click here to view the Regulations.
The above is based on our understanding of the new Regulations at the time of issue and in advance of planning practice guidance being issued.
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.