Local Authority round-up 26/03/21

Brexit

European Commission launches infringement proceedings against UK

The European Commission has launched infringement proceedings against the UK by sending a letter of formal notice. The Commission believes the UK has breached the substantive provisions of the Northern Ireland Protocol, as well as the good faith obligation under the UK-EU withdrawal agreement, by unilaterally declaring its intention to delay the full application of the Protocol concerning the movement of goods and pet travel from Great Britain to Northern Ireland for operational reasons. The Commission can bring infringement proceedings against the UK for breach of certain provisions of the Protocol in accordance with Article 12(4) of the Protocol in conjunction with Article 258 of the TFEU. The letter of formal notice is the first formal step, which, if the Commission is not satisfied with the UK’s replies, could ultimately result in a referral to the Court of Justice of the EU and a financial penalty. The UK has one month to reply. The Commission has also called on the UK to enter into consultations in good faith in the Joint Committee established by the withdrawal agreement, with the aim of agreeing a mutually acceptable solution by the end of March. Failure to do so could result in the dispute settlement procedures under the withdrawal agreement being triggered, including binding arbitration between the EU and UK.

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European Parliament to ratify trade deal in April

European Parliament President David Sassoli has announced that the European Parliament will finally ratify the post-Brexit trade deal between the EU and the UK in a plenary session starting on 26 April 2021. The deal, which has already been approved by the EU national governments and British parliament, will need to receive the European Parliament’s ratification before the agreement legally comes into full force, however it has been implemented since January 1 under provisional application to avoid the consequences of a no-deal Brexit.

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Commercial

£56 million Welcome Back Fund announced

Communities Secretary Robert Jenrick has announced the new £56 million Welcome Back Fund for councils to help high streets and seaside resorts open safely this summer. The fund will enable councils to boost tourism, improve green spaces and provide more outdoor seating areas, markets and food stall pop-ups. The funding can be used by councils to install signage and floor markings, invest in street planting and seating areas, run publicity campaigns and prepare to hold events once lockdown restrictions are eased. Part of the funding has also been specifically allocated to all coastal resorts across England so that they can prepare to safely welcome visitors into the area. Mr Jenrick said “Our Welcome Back Fund gives every city, town and high street support to prepare for a great summer. This funding will help councils and businesses to welcome shoppers, diners and tourists back safely. As soon as the roadmap allows, we need to get behind our local businesses and enjoy all that this country has to offer and that we’ve been missing so much.”

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Councils allocated £100 million leisure recovery fund

The Government has announced that it has now allocated £100 million funding to 266 councils across England to help leisure centres prepare to re-open safely. The funding has been allocated to support the recovery of publicly-owned leisure centres and gyms facilities as part of the Government’s commitment to ‘building back fitter.’ Sports Minister Nigel Huddleston said “We know that Local Authorities have faced significant financial pressure as a result of the pandemic so this £100 million for leisure will be vital in helping them recover. Communities across England rely on their local leisure centre or gym to help them keep fit and healthy and this funding will assist those public facilities to make ends meet.”

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BEIS launches Restart Grant scheme

The Department for Business, Energy & Industrial Strategy (BEIS) has published details of its new Restart Grant scheme, which aims to support eligible businesses in reopening safely as COVID-19 restrictions are lifted by giving them a one-off grant. The scheme is one of the financial support measures announced in the Spring 2021 Budget to help businesses affected by COVID-19. Under the scheme, all rate-paying businesses trading in England in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors (and meeting certain other subsidy allowance and solvency conditions) can apply for one-off grants from their local councils. The maximum amount available is a one-off grant of up to £6,000 per business for non-essential retail and a one-off grant of up to £18,000 per business for hospitality, accommodation, leisure, personal care and gym. Businesses will not be eligible if they have already obtained financial support from certain other local council administered support schemes that exceeds the “permitted subsidy allowance.” Grants will be available from 1 April 2021, but businesses can submit their applications in advance and should check local council websites for details.

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Regulatory

Regulations made implementing government’s roadmap out of lockdown for England

On 22 March 2021, the UK government made the Health Protection (Coronavirus, Restrictions) (Steps) (England) Regulations 2021 (SI 2021/364) (Steps Regulations). They apply in England and come into force on 29 March. They implement the remainder of Step 1 and all of Steps 2 and 3 of the government’s roadmap out of lockdown for England, which outlines a gradual step by step approach to the easing of restrictions on businesses and venues following the national lockdown. At each Step more business restrictions are lifted, so that by Step 3 most businesses and venues in England, with the exception of venues such as nightclubs and discos, should be able to reopen. As to the timing of each Step, the government has provided indicative dates of 12 April (Step 2) and 17 May (Step 3) respectively, but these should be viewed as the earliest dates for implementation only. At least five weeks is required between the implementation of each Step (four weeks to assess the data, and one week’s notice to businesses); any delay in implementing Step 2 will therefore have a knock-on effect on the indicative Step 3 start date. It is an offence to contravene a Step restriction and a fixed penalty notice may be issued for any such offence. For business restriction offences, the first amount of the fixed penalty is set at £1,000, doubling for each subsequent offence up to a maximum of £10,000.

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Planning and housing

Pilots to improve the standard and quality of supported housing extended

Minister for Housing Eddie Hughes has announced that four of the pilots to improve the standard and quality of supported housing in England have been extended and will be backed by an additional £2.3 million in funding. Four of the five pilots which were initially launched in October last year in Birmingham, Hull, Blackpool, Bristol and Blackburn have now been extended for a further six months so that councils can continue to build upon the work they have done so far in improving support for residents to ensure that they are provided with quality homes. Mr Hughes said “We are determined to take action to drive up standards across the sector and by extending the pilots in Birmingham, Hull, Blackpool and Blackburn we can continue to test innovative new approaches. From this, we will develop long-term nation-wide solutions, and ensure vulnerable people get high quality accommodation and the support they need.”

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Councils to be given greater flexibility in reforms to use of Right to Buy receipts

Housing Secretary Robert Jenrick has announced this week that councils in England are to be given more freedom on how they spend the money received from homes sold through Right to Buy. The proposed new measures include extending the time councils have to spend Right to Buy receipts from three years to five years, an increased cap on the percentage cost of new homes councils can fund from Right to Buy receipts raised from 30% to 40% per home,“making it easier to build replacement homes, allowing receipts to be used for shared ownership, First Homes, as well as affordable and social housing and introducing a cap on the use of Right to Buy receipts for acquisitions. The changes will take effect from 1 April 2021, with the exception of a new acquisition cap, which will be introduced from 1 April 2022, on a phased basis. Mr Jenrick said “I have listened to local authorities who responded to our consultation on the use of Right to Buy receipts and I am delighted to announce a package of reforms providing authorities with the flexibilities they need to develop ambitious build programmes and help get people on the housing ladder.”

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Government announces £562 million green improvement fund

The government has announced £562 million in funding which will enable over 200 councils across England and Scotland to upgrade the UK’s least energy efficient and fuel-poor homes. It is expected that over 50,000 social housing properties and low-income households will be upgraded with green improvements from the funding. This includes measures such as cavity wall, underfloor and loft insulation, and replacing gas boilers with low carbon alternatives. Housing minister Christopher Pincher said “The challenges involved in improving the energy efficiency of our homes and reducing carbon emissions are substantial. However, the investment being announced today along with our Future Homes Standard will help ensure that existing and newly built homes will be fit for the future, better for the environment and affordable for households to heat using low carbon energy.”

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