Local Authority round-up 07/05/19

Brexit

Brexit cross-party talks “productive”

Following weeks of cross-party negotiations after the Prime Minister’s Brexit deal was rejected by MPs, the PM’s de facto deputy, David Liddington, has described the recent talks as “positive” and “productive.”  Ministers are aiming to get MP consent to the terms of the Brexit deal by 22 May so the UK does not need to take part in EU elections.  To date, no agreement has been reached with issues regarding any customs union with the EU post-Brexit and demand for a further public vote being some of the issues on which discussions continue.

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Government to ask for EU for citizens’ rights assurance

In the case of a no-deal Brexit, the Government will ask for assurance from the EU regarding citizens’ rights to protect British citizens in the EU and EU citizens in the UK.  There are currently around 1.3 million UK citizens living in 27 EU member states and 3.2 million EU nationals in the UK.  MPs supported an amendment to the Prime Minister’s Brexit deal in February, which the Government accepted without a vote, but the EU has rejected the plan with the EU’s chief negotiator saying it would be “far from straightforward” to “carve out” citizens’ rights from the rest of the withdrawal agreement.

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Labour considers second referendum

As talks continue to break the deadlock in Parliament over Brexit, Labour is discussing whether a second public vote should be included as part of its European election manifesto. Labour’s National Executive Committee is currently split, with some members, including deputy leader Tom Watson, wanting any agreement to a Brexit deal with the Conservatives conditional on it being put to a public vote but others, say they should “try to deliver on what people voted for” as per Labour’s policy.

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Foreign Secretary warns against customs union with EU

No agreement has yet been reached in relation to a Brexit deal, with Labour insisting that they will not agree without the inclusion of a customs union with the EU.  Foreign Secretary, Jeremy Hunt, has warned the PM against agreeing a deal which involves a customs union with the EU, which opponents feel stops the UK from setting its own trade policy and goes against Brexit.  As cross-party talks continue, Jeremy Hunt said he “definitely” thought the Government could secure a deal that MPs would back.

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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

Care home goes into administration following care fee cuts

Four Seasons Health Care has gone into administration after struggling to repay its debts.  Four Seasons has struggled with cuts to local authority care fees and rising costs.  The company has 322 residential and nursing care homes, 17,000 residents and patients and employs around 20,000 staff. GMB national secretary said: “The possible collapse of Four Seasons shows our care system is in crisis, it is crumbling beneath us because the funding isn’t there.” The MB also said the Government needed to step in urgently to reassure staff and residents.

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Establishment of Local Government Mutual (LGM)

LGM has been established by the Local Government Association (LGA) together with 14 councils with the aim to use Local Government capabilities and resources to manage risk more effective and reduce the cost of risk where possible.  Chair of the LGA’s Resources Board, said “Councils are always looking for new and innovative ways to harness their considerable collective purchasing power to help reduce costs and improve services.”  The LGM looks at how it can potentially provide a cost-effective alternative to insurance services to save money.

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Government offers £30 million for smart energy systems

Forming part of the Industrial Strategy Challenge Fund programme, UK organisations can now apply for a share of up to £30 million to develop designs for smart local energy systems.  The challenge was established to support industry, public bodies and local communities to develop innovative technologies including cheaper renewables, energy storage, low carbon heat and digital infrastructure. Challenge director, Rob Saunders, said the aim is to “seek the very best ideas in British innovation to show how the energy sector of the future will be cleaner and greener and support the jobs and industries of the future.”

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Local Government Association (LGA) responds to adult social care report

King’s Fund has published a report warning that the adult social care system is at crisis point as a result of rising demand. Ian Hudspeth, Chairman of the LGA’s Community Wellbeing Board, said “the current system of adult social care is at breaking point, with people living longer, increases in costs and decreases in funding.”

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Regulatory

Low Pay Commission (LPC) reports on minimum wage underpayment

The LPC has reported that the number of people paid less than the statutory minimum wage in the UK increased in 2018.  In April 2018 439,000 people were paid less than they were entitled, with 369,000 being paid less than the National Living Wage, an increase of around 30,000 on the previous year.   LPC Chair Bryan Sanderson said “it is essential that people receive what they are entitled to. It is also vital for businesses to be able to operate on a level playing field and not be illegally undercut on wages.”  The LPC recommended that the Government continues to invest strongly in communications to both workers and employers around minimum wage compliance and enforcement.

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Local Government Association (LGA) responds to anti-social behaviour report

In April 2019, the Victims’ Commissioner reported on anti-social behaviour, noting that victims of anti-social behaviour are being let down by police, local councils and housing providers, with many victims having to suffer in silence.  Latest figures from the Crime Survey for England and Wales show 37% of people have personally experienced or witnessed anti-social behaviour in their community, the highest percentage recorded since this data was first collected.  The LGA said “Councils and partner agencies take residents’ complaints seriously and communicate with each other to ensure that where action is required this happens quickly and effectively. The LGA will be working with councils to consider the findings of this report carefully.”

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Planning and housing

Royal Institution of Chartered Surveyors (RICS) urges Government to tackle housing crisis

The Government has set a target of 300,000 new homes per year which is unlikely to be met as the sector struggles to meet growing demand for residential housing.  The RICS has urged the Government to do more to support Modern Methods of Construction (MCC) and recommended that housing association and councils should be offered financial incentives to build new homes.   RICS have said the Government must support MMC through investment and planning which could assist to address the issues of increasing capacity and investment in the industry and “will go some way to improving our capacity to meet need.”

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Homes for the North launch campaign

A group of cross-party northern MPs have shown support for the campaign which asks Government ministers responsible for housing to show more ambition when planning new homes and infrastructure asking for a regional housing target for the North and for the establishment of a pan-northern scrutiny body to ensure that housing and infrastructure are planned in conjunction with one another.  The chair of Homes for the North said “previous research reveals that the North needs 500,000 homes over the next ten years just to keep pace with current demand.”

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Upcoming seminars

As you may well know we run a programme of seminars on a wide range of topics. Listed below are those seminars coming up which we feel may be of interest to you. Please click on the links for further information and to book your place. You can see our full programme of upcoming events by clicking here.

Housing Management Law School – Spring Term 2019

Join us at the next Housing Management Law School. Spring term will bring with it a brand new programme where our social housing experts will update you on the most recent news and topics that you need to know about from both a legal and practical perspective.

Thursday 9th May 2019 (Leeds)
Thursday 16th May 2019 (Manchester)

PFI Law Update 2019

Join us at one of our annual PFI Law Update roadshows, hosted by our award-winning Public Sector team. You will be in the hands of a team acknowledged as the best advisors in this sector making these sessions essential for those seeking the latest insight into the topical issues, opportunities and risks of the PFI landscape.

Wednesday 15th May 2019 (Manchester)
Thursday 23rd May 2019 (Newcastle morning)
Thursday 23rd May 2019 (Newcastle afternoon)
Wednesday 5th June 2019 (London)

Public Sector Property Update

Join us at our next Public Sector Property update where our legal experts will ensure you are kept up-to-date with the latest developments and changes affecting property, land and estates in the Public Sector.

Wednesday 12th June 2019 (Newcastle)

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