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Local Authority round-up 11/03/19

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

Labour leader meets with Tory MPs to prevent a no-deal Brexit

Following a meeting with Tory MPs to discuss alternatives to the Prime Minister’s deal if it was rejected again by Parliament, Jeremy Corbyn said: “I am reaching out to all groups in Parliament to try and prevent a no-deal Brexit which I think would be very damaging.” Mr Corbyn said he had agreed to meet with Conservative MPs because he was adamantly opposed to a no-deal exit and wanted to hear “what their ideas and options are.” He said he had discussed the so-called “Common Market 2.0 option” but would not commit to backing it at this stage. MPs will vote on whether to back Theresa May’s Brexit deal on Tuesday 12 March 2019.

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UK urged to offer ‘acceptable’ Brexit plan

EU officials have confirmed that they would work non-stop over the weekend if “acceptable” ideas were received by 8 March 2019, from the UK, to break the deadlock over the Irish backstop. Negotiations between British ministers and the EU officials over the past 24 hours, aimed at securing legal guarantees about the Irish backstop, have been described as “difficult”, with the EU insisting there has been no breakthrough. The UK has said “reasonable” proposals to satisfy MPs’ concerns about being tied to EU rules has already been made.

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Government suffers defeat over Trade Bill

On 6 March 2019, the House of Lords inflicted a defeat on a Labour amendment to the Trade Bill (by 207 against 141), which had called on the Government to negotiate a new customs union with the EU. The amendment was intended to make it an “objective” of the Government during Brexit talks to pursue a free trade deal allowing the UK to stay “in a customs union” with the EU after Brexit. MPs will now get the chance to vote on whether or not the UK should remain in the customs union when the Trade Bill returns to the House of Commons. International Trade Minister Baroness Fairhead said the amendment would require disputes to be heard by UK courts which “has the potential to undermine a successful and internationally accepted framework.”

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British Chambers of Commerce (BCC) comments on workers’ rights proposals

On 5 March 2019, ministers offered the following commitments to MPs ahead of the vote on Theresa May’s deal on 12 March: (1) MPs will be given a vote on adopting future EU rules on workers’ rights; (2) Trade unions will be consulted in advance on any proposed future changes; and (3) There will be a new single enforcement body to protect vulnerable and agency workers. Responding to the proposals, Dr Adam Marshall, Director General of the BCC said: “It is positive that the Government is committing to work closely with businesses and civil society on any future changes to UK employment and health and safety laws. We will await further detail on how these proposals might work in practice.”

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Government publishes information on employing EU seasonal workers after Brexit  

On 4 March 2019, the Department for Environment, Food and Rural Affairs (DEFRA) published a leaflet and information to help employers recruit EU citizens for seasonal work in farming and food businesses after Brexit. Amongst other matters, the documents highlight that EU citizens can continue to come to the UK for seasonal work in 2019 and 2020. If there is a deal, there will be no change to current arrangements for EU citizens in 2019 and 2020. If there is no deal, EU citizens can enter the UK and take up work in 2019 and 2020. EU citizens arriving after 29 March, who want to stay for more than 3 months, will need to register for European Temporary Leave to Remain to continue working in the UK.

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Regulator publishes guidance on state aid notifications and reporting post-Brexit

The Competition and Markets Authority (CMA) has published draft procedural guidance setting out general information on the processes the CMA proposes to use, in the event of a ‘no-deal’ Brexit, when examining and investigating notified aid measures under the proposed State Aid (EU Exit) Regulations 2019 (the Regulations). The CMA states that it will apply the guidance flexibly, meaning the CMA will have regard to the guidance when considering relevant state aid notifications, but that it may take a different approach when the facts of the case justify doing so, for example, if it is necessary to assess a possible aid measure as a matter of urgency. The CMA invites comments on the draft guidance by midnight on 18 March 2019.

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Committee expresses concerns to Home Secretary about EU Settlement Scheme

In a letter to the Home Secretary, the EU Justice Sub-Committee has raised concerns about the EU Settlement Scheme which, despite several major issues, is now in the process of being rolled out. The principle concerns include: (1) Publicity for the scheme has so far been inadequate and ill-judged. As a result, vulnerable and harder-to-reach people are at risk of not knowing that they need to apply for settled status; (2) The application process is not accessible to all; (3) Having no physical proof of status will not only disadvantage those without access to online technology, but would also leave all EU nationals in limbo in the event of a breakdown of the electronic system; and (4) There is no systematic scheme to move people from pre-settled status to settled status.

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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 the UK leaves 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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Government issues guidance on the impact of a no-deal Brexit on the E-Commerce Directive (the Directive)

The Department for Digital, Culture, Media & Sport has issued guidance on the likely impact of a no-deal Brexit on the Directive and how online businesses should prepare. The guidance explains that, following a no-deal Brexit, the UK’s policy will be to align with the provisions in the Directive, including those on the liability of intermediary service providers and general monitoring. However, information society services (ISS), certain elements of which the Directive regulates, will cease to benefit from this when operating in EEA member states. Accordingly, there will be a transitional period for ISS in financial services. Businesses in the UK and the EEA are therefore advised to check for any compliance issues resulting from the loss of the country of origin principle.

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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

Government launches £1.6 billion Stronger Towns Fund

On 4 March 2019, the Government announced the Stronger Towns Fund, which will target places that have not shared in the proceeds of economic growth in the same way as more prosperous parts of the country. A total of £1 billion will be allocated using a needs-based formula. More than half of this (£583 million) will go to towns across the North with a further £322 million allocated to communities in the Midlands. The North East will receive £105 million. Communities will be able to draw up job-boosting plans for their town, with the support and advice of their Local Enterprise Partnerships. Another £600 million will be available through a bidding process to communities in any part of the country.

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Council in funding bid to support £7.3 million historical bridge restoration

Northumberland County Council (NCC) is preparing to make its second funding bid in May 2019 as part of its effort to restore the historic Union Chain Bridge. Built in 1820, the Union Chain Bridge is the oldest operational suspension bridge in the world still carrying vehicles. NCC confirmed that, through securing National Lottery support, it is anticipated that the bridge project can also deliver numerous cultural, heritage, educational and community benefits. Councillor Glen Sanderson, Cabinet Member for Environment and Local Services with NCC said: We are confident that by May we will have developed the strongest bid possible for submission to the next round, so we can secure the funds needed to deliver this ambitious and exciting project.”

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Research suggests an imminent increase in council tax bills

On 5 March 2019, the Chartered Institute of Public Finance and Accountancy (CIPFA) published its Council Tax Survey which reveals that average band D households in England are set to face an increase of £75.60, or 4.5%, in their council tax bill for 2019/20. The survey was based on 328 responses to questionnaires sent to councils in England and Wales, with a 74% response rate. Of the 312 respondents from England, 301 will be increasing their council tax. The CIPFA highlights that this is the second highest increase of council tax in the last 10 years, surpassed only by last year’s rise of £80.92, or 5.1%.

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Regulatory

Report suggests councils are breaking the cycle of youth violence

According to a Local Government Association (LGA) report, councils are stepping up to the challenge of breaking the cycle of youth violence. Some of the key statistics from the report include: (1) 1% of all recorded crime is homicides, knife and gun crime (Home Office); (2) A 57% rise in recorded knife crime between 2013/14 and 2017/18 (Office for National Statistics); and (3) 51% rise in the number of under 18s suffering assaults with a sharp object in the last four years (NHS). The report includes key steps for councils to take and 9 case studies based on 9 different councils’ experience of these problems and the relevant solution to each problem.

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Data demonstrates councils have improved the delivery of public health

An LGA report published on 2 March 2019 reveals that councils have significantly improved the majority of public health outcomes, despite seeing reductions of £531 million in cash terms between 2015/16 and 2019/2020 to the public health budget.  Since taking over responsibility for public health in 2013, councils have maintained or improved 80% of the public health outcomes of the nation. However, the LGA urges the Government to reverse these budget declines in the forthcoming Spending Review, to ensure public health services continue to flourish and improve the health and wellbeing of the nation, while alleviating cost pressures on other public services such as the NHS.

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Transport Secretary launches pothole consultation

On 6 March 2019, Transport Secretary Chris Grayling launched a consultation on increasing the guarantee on utility firms’ roadworks, so that if a pothole forms within five years, the company must return to bring the road surface back to normal. Under the current ‘Specification for the Reinstatement of Openings in Highways’ rules, the guarantee only lasts for two years. The consultation will also look at introducing new asphalt standards. Mr Grayling said: “Potholes are the biggest enemy for road users and this Government is looking at all options to keep our roads in the best condition. Road surfaces can be made worse by utility companies, so imposing higher standards on repairs will help keep roads pothole-free for longer.”

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Council to amend guidance after Ombudsman investigation into missed education

The Local Government and Social Care Ombudsman (LGSO) has criticised Cornwall Council after a boy with special educational needs, who was excluded from his primary school because of behavioural problems, missed out on full-time education for 12 months. An investigation by the LGSO claimed the council did not provide him with the right support sooner because teams within the council did not communicate with one another. Following the investigation, the council has agreed to pay £2,500 and a further £1,000 to fund additional activities for the boy to suit his needs. It also agreed to amend its guidance on children eligible for an Education, Health and Care Plan Assessment to ensure these are lawful and in-line with legislation, guidance and case law.

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Planning and housing

Report warns of ‘inextricable link’ between homes and warehousing

A report published by the British Property Federation (BPF) examining the relationship between new housing and warehousing across England, finds that there is currently 69 square feet (sq. ft.) of warehousing floor space per home in England. To maintain this ratio, and to match the Government’s target of 300,000 new homes a new year, 20.6 million sq. ft. of additional warehouse floor space would be required annually. This is equivalent to 280 football pitches each year. Taking into consideration continuing growth of e-commerce and demand for last-mile delivery, the BPF argues this ratio of 69 sq. ft. will likely need to increase. Accordingly, the report makes key recommendations to the Government and the property sector.

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Housing Minister unveils funding boost for most vulnerable

On 1 March 2019, Housing Minister Heather Wheeler MP confirmed over £19.5 million is to be shared among 54 projects across England to help thousands of people who are homeless, or at risk of becoming homeless, to secure their own home. Councils will use the funding boost to help vulnerable people secure their own tenancy through support such as paying deposits or putting down the first months’ rent. Mrs Wheeler said: “This funding will make a huge difference in opening up the private rented sector to people who need it and give them the chance to rebuild their lives. I will also be meeting key stakeholders to tackle the practice of ‘No DSS’, to underline the need for immediate change.”

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High Court judge declares ‘Right to Rent’ scheme to be unlawful

On 1 March 2019, Mr Justice Martin Spencer, sitting in the High Court, declared the Government’s ‘Right to Rent’ scheme, which requires private landlords to check the immigration status of tenants and potential tenants, to be unlawful. Mr Spencer said: “It is my view that the Scheme introduced by the Government does not merely provide the occasion or opportunity for private landlords to discriminate but causes them to do so where otherwise they would not.” He also added that the Home Office had “not come close” to justifying the scheme. However, he also granted permission to appeal.

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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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