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Local Authority round-up 07/02/20

Our Local Authority round up provides brief summaries of topical information on a weekly basis, to keep you aware of the changes and updates relevant to you.

Brexit

Boris Johnson sets out trade deal vision

Boris Johnson has said that he wants a Canada-style free trade deal with the EU and that the UK would return to the Withdrawal Agreement, and revert to World Trade Organisation terms, if such a deal was not reached.  Under the EU-Canada deal, import tariffs on most goods have been eliminated, though there are still customs and VAT checks however the flow of services, such as banking between Canada and the EU are much more restricted.  Mr Johnson said “We have made our choice – we want a free trade agreement, similar to Canada’s but in the very unlikely event that we do not succeed, then our trade will have to be based on our existing Withdrawal Agreement with the EU.  The choice is emphatically not ‘deal or no deal’. The question is whether we agree a trading relationship with the EU comparable to Canada’s – or more like Australia’s. In either case, I have no doubt that Britain will prosper mightily.”  In contrast, Mr Barnier, the EU’s chief negotiator, said the EU was ready to offer a “highly ambitious trade deal as the central pillar of this partnership”, which included zero tariffs and zero quotas but, he said, this was dependent on the UK agreeing to “specific and effective guarantees to ensure a level playing field” so competition “is and remains open and fair.”

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Agreeing to EU regulations would “defeat the point of Brexit” says Raab

The Foreign Secretary, Dominic Raab, has said that Britain will “not be aligning with EU rules” in any post-Brexit trade deal as to do so would “defeat the point of Brexit.”  He said the UK would enter trade talks “with a spirit of goodwill” but added “the legislative alignment – it just ain’t happening.”  Irish PM Leo Varadkar said the UK needed to commit to a level playing field to get a free trade deal which could include a deal such as that which the EU and Canada has but he said “one thing we feel very strongly in the EU is that if we are going to have tariff-free, quota-free trade with the UK, which is essentially what we have with Canada on almost everything, then that needs to come with a level playing field.”

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Commercial

Towns create new boards to apply for Town Deals funding

Newcastle-under-Lyme and Kidsgrove have set up new boards in order to develop proposals to apply for millions of pounds in funding from the Town Deals fund, which ministers have said will be supported by a £3.6 billion fund.  Cllr. Simon Tagg, leader of Newcastle-under-Lyme Borough Council said “Both towns have incredible potential and with further support and investment from the Government we are confident the boards can steer them on a path to prosperity.”  The councils have set up boards which are a partnership of public and private sector bodies, council representatives and leading figures from business, education, the Local Enterprise Partnership and the voluntary sector which Cllr Tagg said were required as an “important part of the process” in applying for funding.

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Council tax and charges set to rise

A new survey by the LGiU and sister publication the MJ has reported that 97% of councils are planning to increase council tax and charges in 2020/21 as councils are unable to rely on retention of business rates as an effective way of funding services.  Around 23% of councils have said financial plans will lead to cuts which will be noticed by the public and 75% of councils plan to increase their level of borrowing and 57% plan to use their reserves.  Heather Jameson, editor of The MJ, said “While the Government is reviewing the current funding system, the reforms are unlikely to go far enough to pay for the vital services that care for our elderly, protect our children, and help our communities thrive.”

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Council rejects £38 million Government funding

In November, Chancellor of the Exchequer Sajid Javid announced the Government was giving £38.1 million from its Housing Infrastructure Fund to improve congestion hotspots on roundabouts which links the A2 with the A249 near Sittingbourne. However Swale Council has rejected the funding as it would mean they would need to build an extra 8,000 houses.  The leader of the Swale Independents Alliance, said “This money is intrinsically linked with the delivery of ever more housing. We strongly feel, however, that this is not a basis on which we can agree to support this funding……We appreciate the Government is aware that this road-focused approach to infrastructure is inadequate and we welcome their plans to come forward with a more integrated approach to Housing Infrastructure Funding that will seek to address the other major concerns many local authorities have.”

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Regulatory

Environment Bill to give local authorities clear framework for tackling air pollution

The Government has now re-introduced its Environment Bill to Parliament, claiming that measures contained in the legislation would “ensure that local authorities have a clear framework for tackling air pollution and simple to use powers to address pollution in their areas.”  The Department for the Environment, Food and Rural Affairs added that the Government was committing to set an “ambitious, legally-binding” target to reduce fine particulate matter, the pollutant of greatest harm to human health.  The Bill will introduce a consistent approach to recycling, tackle waste crime, creating powers to introduce bottle deposit return schemes and will have more effective litter enforcement.

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Councils can bid for funding for electric buses

The Government has announced a £50 million fund which councils can bid for in order to secure the funding to help pay for a new fleet of electric buses in order to become England’s first town with all-electric buses.  The Department for Transport said that the winning town would be used as a model by the Government as it aims to ensure all buses are fully electric by 2025.  The Government is also providing £20 million towards trials of on-demand buses, which can be ordered through an app in rural or suburban areas where passenger demand doesn’t justify having fixed routes permanently in place.  Transport Secretary Grant Shapps has also said that about £3 million of funding will go to English local authorities outside of London in 2020 to help them improve or restore bus services that have been cut.

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Planning and housing

Court rules councils do have the power to extend prior approval decision

A landmark High Court judgment last year which said that councils do not have the power to extend prior approval decision deadlines “should not be followed”, a judge reconsidering the issue has ruled as he dismissed plans to convert an office block into 75 homes.  The judge accepted the Secretary of State’s submission that Article 7 of the Town and Country Planning (General Permitted Development) (England) Order 2015 permits applicants and local planning authorities to agree extensions of time for the determination of such applications in writing.  The judge also confirmed that to constitute an agreement in writing, it is sufficient that a verbal agreement was made by both parties, which is then separately evidenced in writing, for example by way of an email from the applicant sent to the LPA to confirm what had been discussed and agreed verbally. He rejected the submission that it was necessary for both parties to sign a single document, or for there to be correspondence confirming the agreement sent by both parties

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Councils spend £1.1 billion on temporary accommodation a year

An investigation by housing charity Shelter has revealed that councils are now spending £1.1 billion on temporary accommodation a year which has nearly doubled in the past 5 years from £490 million in 2013/14 to £939 million in 2018/19.   The number of homeless households living in private temporary accommodation has only increased by 46% which suggests the charge to councils for the accommodation has risen disproportionately.  Polly Neate, chief executive of Shelter, said “We cannot allow these businesses to continue profiting from the housing crisis, while homeless families suffer. With the budget approaching, now is the time for the Government to reverse this historic wrong and invest in a new generation of stable social homes.”

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Council leaders call for end to housing allowance freeze

Local Housing Allowance (LHA) rates has been frozen since 2016 when they covered the cheapest third of private rents.  The Government has now confirmed that it will end the LHA freeze in April this year and rates will increase in line with inflation but as rents have continued to rise over the past four years, the LHA rate now covers just 13% of market rents on average as a result.  Council leaders have said that if LHA rates were lifted then more than 100,000 people would be protected from financial hardship and the average cost of using temporary accommodation for a council would reduce by between £1.4 million and £3 million.  Councils would also see 650 more households able to cover the cost of their rent with the LHA payments.  Cllr Richard Watts, chair of the LGA’s Resources Board said “By restoring LHA rates to cover at least the lowest third of market rents, the Government can deliver more of the security that tenants need and support households who need help to meet their housing costs.”

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

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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