Local Authority round-up 13/05/19

Brexit

Local elections affected by Brexit

With cross-party talks ongoing in Parliament and no agreement reached as yet in relation to Brexit, the Conservatives suffered significant losses in the local elections, losing almost 40 councils and over 1,000 seats. Labour also lost 4 councils and more than 100 seats. Prime Minister Theresa May said the results delivered a simple message of “just get on and deliver Brexit.”  Labour Chairman Ian Lavery agreed saying “the two parties need to get on and get Brexit sorted.”

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Brexit consultant contracts worth almost £160 million

Ministers have signed a new round of contracts with outside consultants worth almost £160 million in order to prepare for Brexit, many of which run until April 2020. Some of the contracts include existing consultants on extended contracts including Deloitte and Ernst & Young and another 11 firms which includes smaller suppliers. The government has said it will continue to “draw on the expert advice” of a range of specialists in preparation for Brexit whilst the general secretary of the FDA, Dave Penman, called the sum “eye watering.”

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Brexit deal unlikely before European elections

The European elections are due to take place on 23 May and it was hoped that the UK would not have to take part if a Brexit plan could be agreed beforehand. However to date there is still no agreement in place and cross-party talks are ongoing. If the UK has not left by 23 May then they will be legally obliged to take part. David Lidington said “regrettably” it is “not going to be possible to finish that process” before the date the UK legally has to take part.

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Prime Minister faces ongoing pressure to resign over Brexit failings

Whilst cross-party talks are ongoing in a bid to reach a deal on Brexit, Theresa May faces continuing pressure to resign as Prime Minister or to set a firm resignation date. In March, she pledged to stand down if and when Parliament ratified her Brexit withdrawal agreement with the EU but she has not indicated how long she intends to stay if no deal is reached.  Last week 1,300 councillors lost their seats for which she said she was “very sorry.” She continues to reject calls for her to quit. Tory Brexiteer Andrea Jenkyns said Theresa May had “failed to deliver on her promises” on Brexit and had lost public trust.

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No-deal Brexit ferry services cost Government millions

The Government entered into three contracts worth more than £100 million with Brittany Ferries, DFDS and Seaborne Freight to provide additional freight capacity between Britain and mainland Europe to prevent any disruption which may be caused by a no-deal Brexit which were not subject to a full public procurement process. Those services have since been terminated. The National Audit Office said that they warned the Government that it could be sued for up to £20 million over the procurement of those services. Eurotunnel brought legal proceedings in January seeking up to £80 million in damages as they were not approached as a potential provider and the Department for Transport has since agreed a £33 million settlement.

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Commercial

£143 million saving for council on LOBO termination loans agreement

Newham Council is expecting to save up to £143 million following an agreement with a bank to terminate LOBO loans which will allow the loans to be paid off at a lower rate of interest the saving is expected to be £3.5 million per year over 40 years.  Rokhsana Fiaz, the Mayor of Newham, said “earlier this year, I made a promise to Newham residents that I’d make every penny count and that’s why this council filed a claim against the bank in the High Court in February. The deal that we’ve successfully nailed down today means that we’ll be saving up to £143m for Newham residents, which is a successful resolution of this litigation.”​​

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Councils to receive boost to funding for unaccompanied asylum seeking children

On 8 May 2019 Immigration Minister Caroline Nokes announced that the government will increase funding to local authorities for unaccompanied asylum seeking children to £114 per child for every day that they are in their care, which amounts to over £41,600 per child per year.  Under the previous system an amount was awarded per child based on their age and date of arrival in the UK but the new system will now fix the cost regardless of these factors.  The minister said “I recognise the vital role local authorities play in this effort and that is why I have increased the funding available for looking after unaccompanied asylum seeking children by over £30 million.”

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Department for Education provides funding for school holidays

Following last year’s £2 million funding, Children and Families Minister Nadhim Zahawi has announced that the government will this year provide £9.1 million in funding for disadvantaged children to provide free meals and activities over the school holidays in 2019 which could benefit around 50,000 children.  This year, 11 local co-ordinators, including schools, local authorities, community foundations and charities, will oversee and fund clubs across the country to provide support for disadvantaged children over the school holidays.

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Regulatory

Government issues guidance on scrutiny for councils

The Ministry of Housing, Communities & Local Government has issued guidance to help councils carry out their overview and scrutiny functions effectively and ensure that councils and combined authorities know the purpose of scrutiny, what effective scrutiny looks like, how to conduct it and the benefits it can bring.  It includes a number of policies and practices councils should adopt or should consider adopting when deciding how to carry out their overview and scrutiny functions.  The guidance has been issued under section 9Q of the Local Government Act 2000 and under paragraph 2(9) of Schedule 5A to the Local Democracy, Economic Development and Construction Act 2009, which requires authorities to have regard to this guidance.

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Education Secretary asks for views on funding arrangements for pupils with complex Special Educational Needs and Disabilities

Following an announcement in December 2018 where the Education Secretary promised an extra £250 million up to 2020 to help councils manage high needs cost pressures, as well as £100 million funding to create more SEND places in mainstream schools, he has now asked schools and colleges for their views on more effective funding arrangements for pupils with special educational needs and disabilities.  He said “I want to make sure we have the best understanding of how our system for funding children with high needs is operating on the ground – and whether there are improvements we can make so every pound of public money we spend is building opportunities for young people.”

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Report urges £48 basic income

A report issued by Professor Guy Standing suggests every adult in the UK should receive a weekly basic income of £48, following in the footsteps of other countries who are already trialling a universal basic income.  The Labour Party, which has previously discussed the idea of a basic income said it would study the report ahead of its next manifesto.  The report suggests that the existing 1,156 tax reliefs which are available could be abolished and then this would pay for a basic income for every person which was calculated to cost around £150 billion a year.

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Government issues guidance for councils on bathing waters rules

The Department for Environment, Food & Rural Affairs have issued guidance to councils on the requirements to display information at designated bathing waters.  They must provide information at designated bathing waters during the bathing season (15 May to 30 September) which includes the current classification symbol, a general description of the bathing water, information about pollution incidents and a website with additional information on water quality.  It is also a requirement to display advice against bathing if appropriate.

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Planning and housing

Over £25 million specialist support to be allocated for rough sleepers

Following the government’s £100 million backed Rough Sleeping Strategy announced in 2018, James Brokenshire MP, Communities Secretary, has announced that over £25 million will be allocated to 109 local authorities to fund local schemes aimed at getting people off the streets and into stable accommodation.  The funding aims to provide specialist support to the most vulnerable rough sleepers including those with mental health or substance misuse issues and aims to provide 20 new rough sleeping centres, 130 navigator posts (who will be specialist support workers), 61 supported letting schemes and 30 dedicated local letting agencies.

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Local Government Association (LGA) responds to land availability report

The National Audit Office (NAO) has issued a report on land available for new homes and notes the government is unlikely to meet its target of releasing sufficient public sector land to build 160,000 homes by 2020 with the Ministry for Housing, Communities and Local Government expecting departments to have released enough land for only around 65,000 homes by 2020.  It is now not expected to meet its target until after 2025.  LGA Housing spokesman Cllr Martin Tett said “councils have shown that they are best-placed to lead efforts to make better use of public assets, such as releasing unused or surplus land for housing, and are committed to bringing forward sites to ensure that enough homes and the necessary infrastructure are built to meet local needs.”

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Councils should support local regeneration schemes

With over 216,000 empty homes across the UK, Action on Empty Home’s recent report sets out plans for regeneration schemes to bring empty homes back into use.  The report sets out that councils should work with communities to develop neighbourhood improvement plans that tackle empty homes and advises the Government to invest in areas with long-term empty homes to enable councils, social landlords and community-based organisations to buy or lease empty properties to refurbish them.  Will McMahon, director of Action on Empty Homes said “We want an investment programme, delivered through local government, to support community-based approaches that refurbish empty properties, meet the needs of local communities and tackle the underlying causes of the high levels of empty homes.”

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Councils request mandatory registration system for short term lets

The Mayor of London and several London council leaders have requested the Secretary of State for Housing, Communities and Local Government create a mandatory registration system for short term lets of less than 90 days per calendar year, as the current legislation is difficult to enforce.  Whilst they accepted that short-term lets are flexible it was noted that long-term rented housing needs to be protected and neighbours of short term rentals are not negatively impacted.  The current legislation requires planning permission to let a short term home for more than 90 days but this is difficult to enforce.  They have suggested a new system which include penalties for non-compliance and a single database which is accessible online so councils can monitor and enforce the 90 day rules.

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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 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.