Local Authority round-up 12/02/21

Brexit

New interim UK-Ghana continuity trade partnership agreement concluded

The governments of the UK and Ghana have issued a joint statement announcing that they have finalised negotiations for a new Interim Ghana-UK Trade Partnership Agreement. The agreement will enter into effect following completion of the relevant internal procedures required in both countries. The two countries had been unable to conclude a continuity agreement before the end of the transition period, meaning that trade between the UK and Ghana reverted to WTO terms however on 31 December 2020, the UK and Ghana published a joint ministerial statement which explained that the countries had “reached a consensus on the main elements of a new trade agreement” and that they “intend over the next few weeks to finalise the text of the Agreement.” This new agreement will now replace the EU-Ghana stepping stone economic partnership agreement, which ceased to apply to the UK at the end of the UK-EU transition period on 31 December 2020. This agreement will provide for duty-free and quota-free access for Ghana to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market.

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Commercial

£51 billion funding package for councils announced

Local Government Secretary Robert Jenrick has announced a £51.3 billion package for councils next year, which is a £2.3 billion increase on this year. He also announced that final allocations for the £670 million fund to enable councils to continue reducing council tax bills for those least able to pay have now also been confirmed and that the scheme that compensates councils for income lost during the pandemic from services including car parks, leisure facilities and museums has been extended until June 2021. Mr Jenrick said “Today I am pleased to confirm a £51 billion funding package for next year that increases funding for social care and other vital services by £2.3 billion. We are also giving councils an additional £3 billion boost to the level of COVID support available. This is a fair and generous settlement that gives councils the resources they need to continue to deliver important services and support their communities.”

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Struggling councils to receive emergency funding

Communities Secretary Robert Jenrick has announced that four councils in England are to receive emergency funding due to the “serious financial challenges” they are facing. They will all receive additional funding in order to help them with the financial difficulties so they have a balanced budget. Mr Jenrick said “This aid is provided on an exceptional basis, with these councils subject to rigorous reviews of their financial positions, their governance, ability to meet some or all of their budget gaps for the next year without Government funding. Taxpayer support of this kind is never provided lightly and in return for the increased flexibility afforded to councils next year, we expect sound financial management with residents shielded from unaffordable increases.”

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Natural Environment Investment Readiness Fund announced

The government has announced the Natural Environment Investment Readiness Fund under which environmental groups, councils, businesses and other organisations can receive grants of up to £100,000 to help tackle climate change, create and restore habitats or improve water quality by developing nature projects in England. Eligible projects would include the creation of new woodlands, the creation of new coastal wetlands and the restoration of river catchments. The fund will remain open for applications until 26 March. Environment Minister Rebecca Pow said “Investors are rightly recognising environmental factors as key drivers of value. As we look to build back greener from the pandemic, I would encourage any interested businesses, local authorities, eNGOs or other organisations to bid for a portion of this fund.”

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£35.5 million funding to help tackle serious violence

The government has announced £35.5 million funding for Violence Reduction Units across England and Wales in order to help tackle serious violence and to prevent young people being drawn into it. Violence Reduction Units operate in areas worst affected by serious violence and bring together organisations across local communities to tackle violent crime and address its underlying causes. They also help fund vital local projects to provide positive preventative work with children and young people to stop them being drawn into violence.  Their work has included prevention work in schools, communities, prisons, hospitals, Pupil Referral Units and police custody suites and this funding will be provided to ensure they can continue to do this. National Police Chiefs’ Council Lead for Violence & Vulnerability, Assistant Chief Constable Jackie Sebire, said “We welcome the commitment from government in tackling serious violence and this funding will allow the units to continue to support young people and keep communities safe.”

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Planning and housing

Planning inspector had not erred in granting permission for storage building erected across public footpath

The High Court has held that a planning inspector had not erred in granting retrospective planning permission for a storage building that had been erected across a public footpath in open farmland. One of the grounds of appeal was that the inspector had erred in failing to treat the blocking of the footpath as a material consideration. Paragraph 98 of the National Planning Policy Framework (NPPF) states “Planning policies and decisions should protect and enhance public rights of way and access, including taking opportunities to provide better facilities for users, for example by adding links to existing rights of way networks including National Trails.” The High Court held that the inspector had correctly applied paragraph 98 and, given that the evidence suggested that the public right of way would be protected as the footpath could be diverted to an equally convenient alternative route, he had correctly concluded that the Highways Act 1980 (HA 1980) procedures should be followed to determine if such a diversion was possible. The grant of planning permission did not authorise the obstruction of the footpath by the storage building. If the application failed, action could be taken under sections 137 and 137ZA of the HA 1980 to remove the obstruction.

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Court of Appeal confirms fixed-term flexible tenancy cannot be determined prior to expiry of fixed term without forfeiture clause

The Court of Appeal has dismissed an appeal against a decision of the High Court which found that a flexible tenancy for a fixed term could not be determined before the expiry of the fixed term unless the tenancy agreement contained a forfeiture clause. The tenant held a flexible tenancy for a fixed term of five years. During the course of the term, Croydon Borough Council served notice on the tenant seeking termination of his tenancy and possession under grounds 1 and 2 in Schedule 2 to the Housing Act 1985 (HA 1985) (rent arrears and anti-social behaviour respectively). No claim was made on the ground of forfeiture. The High Court found that the tenancy agreement did not contain a forfeiture clause and dismissed the council’s claim. The Court of Appeal upheld the High Court’s decision, finding that the key question was the availability of an order for possession under section 82(1A)(a) of the HA 1985. The answer to that question could be seen more clearly from section 32 of the Housing Act 1980, in which it seemed reasonably clear that the legislative intention was that a periodic tenancy could only be brought to an end by obtaining an order for possession, while a fixed-term tenancy could only be brought to an end by obtaining an order for termination pursuant to a forfeiture clause (in which event, a periodic tenancy would come into effect under section 29 of the HA 1980). The change in wording from what was section 32(1) of the HA 1980 to what is now section 82(1), (1A) and (2) of the HA 1985 made no real difference. The Court of Appeal also found that just as a landlord could not end a fixed-term secure tenancy by rescission, the landlord could not do so by exercising a landlord’s break clause or by forfeiture for breach of a condition. The tenancy could only be ended by obtaining a termination order under section 82(3) of the HA 1985, which was only available if the tenancy agreement contained a forfeiture clause.

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Independent review of construction frameworks launched

The Cabinet Office has launched an independent review into construction frameworks as part of the implementation of the ‘Construction Playbook’ which was launched on 8 December 2020 containing 14 policy reforms intended to enable ‘faster, better, greener’ construction by transforming how public works projects and programmes are assessed, procured and delivered. Professor David Mosey of King’s College London has been appointed in order to lead an objective, independent review of public sector frameworks following a commitment contained in The Construction Playbook to undertaking a review of current construction frameworks. The Framework Review will lead to recommendations for the components of a ‘gold standard’ against which new proposed frameworks and framework contracts can be measured, standard contract terms that support the new gold standard and training packages to enable adoption of the new gold standard.

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