Local Authority round-up 04/03/19

Brexit

Government to pay £33 million to Eurotunnel

The Government has settled an ongoing dispute regarding freight capacity after reaching an agreement worth up to £33 million with Eurotunnel, which was suing the Government after it awarded a contract to Seaborne Freight, which owns no ships and has never run a Channel service. Transport Secretary Chris Grayling has been heavily criticised for the Seaborne deal, which would have been worth £13.8 million. In a statement accompanying the agreement, Mr Grayling said: “While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world.”

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Environment Minister resigns over Brexit delay vote

On 1 March 2019, Environment Minister George Eustice resigned from the Government due to Theresa May’s promise to allow MPs a vote on delaying Brexit, if her deal is rejected. Mr Eustice is a longstanding Brexiteer, who stood as a UKIP MEP candidate before joining the Conservatives. Mr Eustice said it would be “dangerous” to go to the EU “cap in hand at the 11th hour and beg for an extension.” He feared it could mean a long delay or that Brexit “may never happen at all” and said the UK must be prepared to walk away without a deal.

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House of Commons (HoC) reject Labour’s Brexit proposals

On 27 February 2019, MPs voted on their preferred Brexit strategy. Labour’s Brexit proposals, which would see the UK entering into a permanent customs union with the EU, were defeated by 323 to 240. In response to the votes, Jeremy Corbyn said: “We will back a public vote in order to prevent a damaging Tory Brexit or a disastrous no deal outcome.” MPs also voted against the SNP motion saying the UK should not leave the EU without a deal “under any circumstances.” The Prime Minister also faced a Brexit rebellion, after 20 Tory MPs voted against proposals, backed by the Government, to delay the UK’s 29 March departure date, if there is a no-deal scenario.

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Agreement secures £1.3 trillion market for British contractors

On 27 February 2019, the World Trade Organisation (WTO) members confirmed that the UK will join the Government Procurement Agreement (GPA) as an independent member if we leave the EU without an agreement. The GPA is an agreement within the WTO framework between its 19 members, including major economies such as the United States, Canada, the EU and Japan. Overseas businesses will be able to bid for £67 billion worth of public sector contracts in the UK every year. In return, British suppliers will be able to bid for £1.3 trillion worth of Government contracts overseas in a wide range of sectors from large infrastructure to professional and business services.

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Prime Minister offers votes to MPs on no-deal Brexit and Article 50 extension

On 26 February 2019, the Prime Minister gave a statement to the House of Commons in which she made a commitment to hold a second meaningful vote on her Brexit deal by 12 March 2019. If that vote is lost, MPs will be offered two separate votes: One, on the following day, on whether MPs support a no-deal Brexit, so the UK would “only leave without a deal on 29 March if there is explicit consent in the House for that outcome.” If that fails, then MPs will get a vote by 14 March on requesting an extension to the two-year Article 50 negotiation process, to delay EU withdrawal beyond 29 March.

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Government publishes report on the impact of a no-deal Brexit

On 26 February 2019, the Government published its assessment of the implications of a no-deal exit for trade and for businesses, given the preparations that have been made. The Government’s report, which was drawn up for the cabinet, said: “One of the most visible ways in which the UK would be affected by delays in goods crossing the Channel is our food supply, 30% of which comes from the EU.” It also said the worst-hit areas economically in a no-deal scenario would be Wales (-8.1%), Scotland (-8.0%), Northern Ireland (-9.1%) and the North East (-10.5%).

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Department for Health and Social Care (DHSC) provides update on medical products supply after Brexit

On 25 January 2019, the DHSC confirmed that it is working on detailed plans to ensure the continued supply of medical products to the UK in the event of a no-deal Brexit. Around three-quarters of the medicines and over half of the clinical consumables we use come from or via the EU.  The DHSC has analysed, amongst other areas, the supply chains of 12,300 medicines and almost half a million product lines of medical devices and clinical consumables. Following this analysis, it has put in place a multi-layered approach to minimise any supply disruption, by securing freight, buffer stocks, stockpiling and warehousing, and regulatory flexibility which will help to ensure the continuation of medical supplies.

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EU trade remedies measures to continue post-Brexit

On 25 February 2019, the Department for International Trade (DIT) set out the current EU trade remedy measures the UK will transition when the UK leaves the European Union. In total, 43 trade remedies measures that currently apply to imports from outside the EU will be transitioned into UK law after Brexit. The DIT confirmed that British businesses will continue to be protected from cheap imports that are deemed to have been traded unfairly such as: (1) tyres and aluminium wheels from China; (2) ceramic tiles, tableware and kitchenware from China; and (3) a range of steel and iron products from countries including Belarus, Brazil, China, Iran, Russia and the USA.

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We have created a Brexit checklist to assist businesses with the various challenges and opportunities presented by Brexit. Please click here to view.

Commercial

Local Government Association (LGA) responds to report on the UK’s Shared Prosperity Fund (SPF)

The Institute for Public Policy Research (IPPR) has published a report on the opportunities for the UK’s SPF after Brexit. As Brexit is likely to bring uncertainty over the future of funding allocated to the nations and regions of the UK,  the report outlines three challenges facing the UK: regional inequality; centralisation of power; and a lack of community voice. It then provides recommendations for how the SPF could be designed effectively to tackle these problems. Councillor Kevin Bentley, Chairman of the LGA’s Brexit Taskforce, said: “Without a clear timetable of action, there is a risk that billions of pounds of investment into our communities will be lost and local areas and economies will be denied desperately-needed funding.”

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Government publishes guidance on outsourcing and contracting

The Government Commercial Function has published the Outsourcing Playbook containing guidance on outsourcing decisions and contracting. The playbook is aimed at commercial, finance and project delivery professionals in central government departments, who are responsible for the planning and delivery of outsourcing projects. Its purpose is to provide those professionals with guidelines, rules and principles that will help them to avoid the most common errors observed in outsourcing projects. A series of supporting guidance notes referred to in and accompanying the playbook set out how projects should be conducted and ultimately delivered.

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HS2 supports unemployed people into work

HS2 Limited’s procurement models, which encourage a change in the approach to skills and employment, whilst ensuring supply chains work flexibly to provide opportunities for the unemployed, have now supported over 250 unemployed people into work. 2,000 businesses have now won work and 7,000 job roles are already supported. Kate Myers, HS2 Ltd’s Head of Skills, Education and Employment, said: “HS2 is much more than just a railway and we are committed to ensuring that the 30,000 people we’ll need to design and build it represent a diverse, talented and highly skilled workforce.”

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£9.8 fund to confront knife crime and gang culture

The Minister of Housing, Communities and Local Government has announced that community-backed projects in 21 areas across England will each receive a share of £9.5 million, to help families who are vulnerable to the devastating effects of knife crime and gang culture. A further £300,000 will also be available for councils across England to train frontline staff on how to tackle childhood trauma. Mr Brokenshire said: “The early intervention strategies set out by the projects we are funding offer real alternatives to children and young people who may otherwise become involved in gang crime.”

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Regulatory

Junk food advertising ban on London transport network commences

On 25 February 2019, a ban on junk food advertising on Transport for London (TFL) came into force. Supported by the Mayor of London, Sadiq Khan, the ban covers roundabouts, bus stops, Dial-a-Rides and taxis, as well as the more obvious London Underground trains, stations, buses, and bus stops. TFL confirmed that all future bookings are subject to the new policy, and said: “We’ve already seen large advertisers confirm they will continue to advertise on the TfL network under the new rules – by advertising their products that are not too high in fat, salt and sugar.” However, the Advertising Association said the ban would have “little impact on the wider societal issues that drive obesity.”

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LGA calls for ‘opt-in’ licensing rules to tackle ‘lawless’ shisha bars

On 23 February 2019, town hall leaders urged the requirement for licensing laws to help councils tackle shisha bars, that repeatedly flout smoking and fire safety laws, and in the worst cases are linked to organised crime. In light of this, the LGA is calling for the Government to modernise the list of activities councils can ‘opt-in’ to licence. The LGA argues that this would provide flexibility for individual councils to adopt local licensing schemes to cover modern and emerging risks. Councils could then vet licence holders in advance of premises opening, more easily monitor shisha bars and cafes for harmful activity and seize equipment or revoke licences for repeat offenders breaching licensing conditions or breaking the law.

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Former council officer fined for sharing personal data of rival job applicants

On 27 February 2019, the Information Commissioner’s Office confirmed that a former council officer of Nuneaton and Bedworth District Council, who had been trained in data protection law, has been prosecuted for passing the personal information of rival job applicants to his partner. The recruitment packs he shared, in 2017, included the name, address, telephone number and CV of each candidate, along with contact details for each of their two referees, which breached s.55 of the Data Protection Act 1998. The former officer was fined £660 and was also ordered to pay £713.75 costs and a victim surcharge of £66.

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Planning and housing

High Court rules that UK’s departure from the EU will not frustrate lease

The High Court has held that the European Medicines Agency’s (EMA) 25-year lease of premises in Canary Wharf will not be frustrated on the UK’s departure from the EU. The EMA’s existence and functionality is governed by various EU regulations, one of which designates its headquarters in London. The EMA’s primary argument was that the UK’s departure from the EU would frustrate its lease by reason of supervening illegality. Mr Justice Marcus Smith rejected this on the basis that the EMA would still have capacity to deal with immovable property in a non-EU country and, therefore, have capacity to continue performing its obligations under the lease. As such, there was no frustration by supervening illegality.

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Government issues consultation on reform of local homelessness services

On 21 February 2019, the Ministry of Housing, Communities and Local Government issued a consultation on structures that support partnership working and local accountability in homelessness services. The consultation seeks views on the effectiveness of existing non-statutory and statutory provisions and, particularly, whether the Government should introduce Homelessness Reduction Boards as a potential “local governance mechanism” that would be responsible for addressing homelessness at a local level. Responses to the consultation can be submitted online, by email or by post. The consultation closes on 16 May 2019.

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Britain faces ‘accessible housing crisis’ charity warns

The Centre for Ageing Better has warned that Britain is on the verge of an ‘accessible housing crisis’ due to planning policy failures. A YouGov poll, commissioned by the charity, has revealed that nearly half (48%) of the population do not think society does enough to enable people to live independently and safely at home as they grow older. This finding is supported by the fact that one in five homes in England is deemed ‘non-decent’, with non-decent homes disproportionately lived in by people in later life. Accordingly, Dr Anna Dixon, chief executive of the Centre for Ageing Better, said: “National rules must be strengthened, and planners within local authorities must work with developers and builders to enforce them.”

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Conversion of domestic garage into bakery was not a material change of use

Medway Council has refused to grant a lawful development certificate for the use of an attached domestic garage as a small commercial bakery, because the proposal would result in a material change of use of the dwelling and therefore constituted development. The applicant appealed. The inspector allowed the appeal based on the following reasons: (1) there would be no change in the external appearance of the dwelling; (2) the proposed activities were no different to those undertaken in a typical domestic kitchen and (3) the scale of the activities was unlikely to lead to notable increases in traffic or to disturb neighbours. However, the inspector stated that if the business grew, it was possible that planning permission could be required in the future.

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