Local Authority round-up 23/04/21

Commercial

Councils urged to bid for share of £75 million Brownfield Land Release Fund

Councils are being urged to bid for a share of £75 million funding which is available to help fund housing developments. The funding comprises £50 million from the Brownfield Land Release Fund for housing and £25 million from the Self and Custom Land Release Fund. The fund will be administered through the One Public Estate Programme, a partnership between Cabinet Office, the Ministry of Housing, Communities & Local Government, and the Local Government Association. The fund is now open for applications until 23:59 Wednesday 2 June 2021. Mary Elkington, acting head of the Right to Build Task Force, said “It is fantastic that the Brownfield Land Release Fund includes this £25m allocation for self and custom build, and we encourage as many councils as possible to apply. This will make a genuine difference to those authorities working to deliver a more diverse route to delivering high-quality housing.”

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Report finds Welsh councils face funding gap next year

A report by Cardiff University’s Wales Governance Centre, ‘Local government & the Welsh budget: Outlook and challenges for the next Welsh Government,’ has reported that Welsh councils will face a funding gap of £178 million next year due to the effects of the coronavirus pandemic. Cian Siôn, a researcher on the Wales Fiscal Analysis project, said “Our analysis suggests that above-inflation increases to council tax are here to stay. In our model, we assume a 4.5% annual increase to council tax bills from 2022−23 to 2025−26, and even this is not sufficient to meet funding pressures in full. This strengthens the case for revisiting the way the local taxation system operates in Wales. A policy which pivots around inflation-busting council tax increases every year is an unsustainable way of funding local authorities in the long-term.”

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Regulatory

Welsh Government fails in court challenge over post-Brexit Internal Market Act

The Divisional Court has refused the Counsel General for Wales permission to apply for judicial review over the impact of provisions of the United Kingdom Internal Market Act 2020 on the legislation of the Welsh Senedd. The Welsh Government sought a declaration that the 2020 Act did not impliedly limit the competence of the Senedd to enact legislation inconsistent with the mutual recognition principle contained in section 2 of the Act which provides that goods which can be sold in one part of the United Kingdom may be sold in all other parts. Lewis LJ noted the Senedd has not yet enacted any legislation giving rise to issues involving the 2020 Act and nor had the Secretary of State exercised his powers in the ways feared by the Welsh Government. He dismissed the case as being premature and expressed no view on whether the claims made were arguable and said “As a general rule, the courts do not deal with claims for judicial review in such circumstances as the claim will be premature. This a case where the relevant legal events have not yet arisen.”

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International Trade

New independent commission established to scrutinise UK trade deals

A group comprising MPs from all major UK political parties, business leaders and academics have launched the new UK Trade and Business Commission to scrutinise the UK-EU trade and co-operation agreement and UK trade deals with non-EU countries. The new Commission will be co-convened by Hilary Benn MP and Peter Norris, the Chairman of Virgin Group. The establishment of the independent Commission follows the government’s decision in January 2021 to dissolve the Committee on the Future Relationship with the European Union, which was chaired by Hilary Benn MP, despite a formal request for the Committee to be able to continue its work. The Commission describes its work as follows: “The Commission will initially assess the economic impact of the EU-UK Trade and Cooperation Agreement and other UK trade deals, and then delve into sectoral and geographical themes. It will take written and oral evidence from expert witnesses, businesses and the public, to hear from a broad range of voices representing the different sectors of the UK economy, from financial services to manufacturing, and from across the political spectrum. This evidence will be used to make regular recommendations to the government outlining potential improvements to its trade deals, that will give British business and industry the best opportunities to bounce back from the double whammy of Covid and Brexit. The Commission will also be able to suggest lessons that need to be learned for future negotiations.” The Commission will hold fortnightly public evidence sessions that will be streamed online, the first session was held on 15 April 2021 and focused on the economic impact of the UK-EU trade deal.

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Planning and housing

New 95% mortgage guarantee launched

A new government-backed mortgage scheme has been launched this week which will enable first time buyers or current homeowners to secure a mortgage with just a 5% deposit. The new mortgage scheme, which is backed by the government, has been launched to help people to get onto the property ladder by requiring a lower deposit to be paid. The government will offer lenders the guarantee they need to provide the 95% mortgages. The scheme is now available from lenders including Lloyds, Santander, Barclays, HSBC and NatWest, with Virgin Money expected to follow next month. Housing Secretary Robert Jenrick said “The new mortgage guarantee scheme which comes into effect today will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.”

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