Local Authority round-up 08/01/21

Brexit

The EU-UK Trade and Cooperation Agreement

On 24 December, the UK and the EU agreed the EU-UK Trade and Cooperation Agreement which came into force at 11pm on 31 December 2020. The UK departed from the EU on 31 January 2020 however it remained under the EU’s rules through the transition period whilst negotiations were undertaken. The agreement sets out preferential arrangements in areas such as trade in goods and in services, digital trade, intellectual property, public procurement, aviation and road transport, energy, fisheries, social security coordination, law enforcement, judicial cooperation in criminal matters and thematic cooperation and participation in EU programmes. It is underpinned by provisions ensuring a level playing field and respect for fundamental rights.

Key provisions of the extensive agreement include that that UK manufacturers have tariff-free access to the EU’s internal market, meaning there will be no import taxes on goods crossing between Britain and the continent however there are new checks at borders such as safety checks and customs declarations. The provisions in the agreement do not govern trade in goods between the EU and Northern Ireland, where the Northern Ireland Protocol will apply.

Businesses offering services, such as banking, architecture and accounting, have now lost their automatic right of access to EU markets and will face some restrictions as there will no longer be automatic recognition of professional qualifications for people such as doctors, chefs and architects.

In respect of travel, UK nationals will now need a visa for stays of longer than 90 days in the EU in a 180-day period, EU pet passports will no longer be valid and European Health Insurance Cards will remain valid until they expire and will subsequently be replaced by a new UK Global Health Insurance Card.

In respect of fishing rights, which was a major sticking point in negotiations, over the next five-and-a-half years, the UK will gradually gain a greater share of the fish from its own waters after which it could choose to ban EU fishing boats from 2026, but the EU would be allowed to introduce taxes on British fish in response.

The UK will now have no role in the European Court of Justice and any disputes that cannot be resolved between the UK and the EU will be referred to an independent tribunal instead. The UK is no longer obliged to comply with EU standards of data protection, but data will continue to be exchanged in the same way for at least four months as long as the UK doesn’t change its data protection rules and the UK will no longer have automatic access to key security databases, but should be able to gain access upon request.

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Some EU online retailers refuse delivery to UK

Some EU online retailers have said they will no longer deliver to the UK because of tax changes which came into force on 1 January. Following the UK’s departure from the EU, EU companies now face higher costs in order to comply with UK tax requirements. From 1 January, new VAT rules were brought in by HMRC which requires retailers to pay VAT at the point of sale rather than at the point of importation. This means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150. Bicycle part firm Dutch Bike Bits said from now on, it would ship to every country in the world except the UK and Belgium-based Beer On Web, said it was now shunning the UK “due to the new Brexit measures.”

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Spain and UK strike deal on Gibraltar after Brexit

Spain and the UK have struck a deal to avoid a hard border in Gibraltar as the UK leaves the EU. Under the terms of the deal, Gibraltar will be part of the Schengen passport-free area with the sponsorship of Spain and follow EU rules, while remaining a British Overseas Territory. This means British citizens will need to go through a Schengen border post to enter Gibraltar through its airport and seaport but EU citizens arriving from Spain or another Schengen country will avoid passport checks. During a four-year transition, the European Border and Coast Guard Agency, called Frontex, will patrol both access points. However, the deal does not address the issue of sovereignty and at present the plan is to have a six-month transition period and then formalise the new arrangements with a treaty. Dominic Raab said “all sides are committed to mitigating the effects of the end of the [Brexit] Transition Period on Gibraltar, and in particular ensure border fluidity, which is clearly in the best interests of the people living on both sides. We remain steadfast in our support for Gibraltar, and its sovereignty is safeguarded.”

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Commercial

Further grants to support businesses

Chancellor Rishi Sunak has announced £4.6 billion in grants to businesses in the retail, hospitality and leisure sectors in England who will receive a one-off grant worth up to £9,000 to support them during the new lockdown. The money will be provided on a per-property basis and is expected to benefit over 600,000 business properties who have been forced to close under the new lockdown restrictions in England, which are expected to last until at least February half-term. A further £594 million is also being made available for councils and the devolved administrations to support other businesses not eligible for the grants, that might be affected by the restrictions and will be discretionary. Businesses will need to apply to their local council to access this funding. Mr Sunak said “Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

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£830 million high street investment announced

Communities Secretary Robert Jenrick has announced that up to £830 million from the Future High Streets Fund will go towards delivering local projects, such as improvements to transport infrastructure, new homes and the transformation of underused spaces, in 72 areas across England as part of the effort to help high streets recover from the impact of the coronavirus pandemic. Confirmed plans include £24.6 million to support the delivery of 186 new homes, road safety improvements and a permanent new space in Birkenhead, £17.9 million to boost Worcester town centre by transforming underused space to create new homes for first time buyers and improving connectivity and £25 million for Swindon to modernise its town centre which will include a new public transport hub and improved cycle and pedestrian routes. Mr Jenrick said “The year ahead will be a big one for the high street as it seeks to recover, adapt and evolve as a result of the pandemic. Today’s £830 million investment from the Future High Streets Fund is one of many ways the government is working to help our much-loved town centres get through this and prosper into the future.”

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Regulatory

England enters third national lockdown

Following advice from the UK Chief Medical Officers advising that the COVID threat level should move from level four to level five in England following a surge in cases, Prime Minister Boris Johnson announced that with effect from 00.01 on Wednesday 5 January 2021, England would again enter into a national lockdown, meaning people should stay at home save for specific reasons. These include to shop for necessities, to go to work (if you cannot work from home), to exercise or meet your support bubble and to seek medical assistance. All non-essential businesses have been forced to close once again. All schools and educational settings have also been closed except for children of key workers and vulnerable children. Clinically extremely vulnerable people have also been advised to begin shielding again. The measures became law on Wednesday after MPs retrospectively voted in Parliament in favour of the restrictions. The measure are expected to be in place until at least February half-term, but may be extended further.

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Planning and housing

Government amends recently introduced permitted development rights

The Town and Country Planning (General Permitted Development) (England) (Amendment) (No 4) Order 2020 (SI 2020/1459) came into force on 30 December 2020. The Order amends class A (new dwellinghouses on detached blocks of flats) and class AA (new dwellinghouses on detached buildings in commercial or mixed use) in Part 20 of Schedule 2 to the Town and Country Planning (General Permitted Development) (England) Order 2015 (SI 2015/596) by introducing a requirement for a developer seeking prior approval in relation to an existing building, which is 18 metres or more in height, to provide a report from a chartered engineer or other competent professional, confirming that the external wall construction of the existing building adequately prevents fire spread in order to comply with paragraph B4(1) of Schedule 1 to the Building Regulations 2010 (SI 2010/2214). There are transitional and saving provisions applicable where a prior approval application was made or prior approval event occurred before 30 December 2020.

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Government announces reforms for leaseholders

Housing Secretary Robert Jenrick has announced reforms to English property  law that will make it easier and cheaper for leaseholders to buy  their homes. Under the reforms, leaseholders will be given the right to extend their lease by a maximum term of 990 years at zero ground rent which could save them from thousands to tens of thousands of pounds in ground rent. Any leaseholder who chooses to extend their lease on their home will now no longer be required to pay any ground rent to the freeholder. An online calculator will also be introduced to make it simpler for leaseholders to find out how much it will cost them to buy their freehold or extend their lease. Mr Jenrick  said “Across the country people are struggling to realise the dream of owning their own home but find the reality of being a leaseholder far too bureaucratic, burdensome and expensive. We want to reinforce the security that home ownership brings by changing forever the way we own homes and end some of the worst practices faced by homeowners.”

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If you have any questions about the issues raised in this update, please do not hesitate to get in touch.