Local Authority round-up 20/12/19

Brexit

Government proposes to amend Brexit bill to rule out extension of the transition period

The Government has announced that it is adding a new clause to the Withdrawal Agreement Bill to rule out any extension to the transition period. The Commons will vote on it later today. If approved it will prevent any extension of the transition period which is due to conclude on 2020 but can currently be extended by mutual agreement for up to two years. The UK will leave the EU on 31 January and if the new clause is approved it will only have until the end of the year to agree a trade deal after which it will leave with no trade deal. With trade deals taking many years to conclude Boris Johnson is facing criticism for the move. Liberal Democrat interim leader Sir Ed Davey said “The only way Johnson can meet the December 2020 timetable is by giving up all his previous promises to Leave voters and agreeing to all the demands of the EU.”

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Pound falls again over uncertain Brexit

Following the pound’s surge to its highest level since May last year after the results of the general election were held, it has now fallen again this week after the Government said it would add a new clause to the Brexit bill to rule out any extension to the transition period beyond the end of next year which increases the chance of the UK leaving the EU without a trade deal. The pound fell 1% against the dollar, to below $1.32, and dropped 1.2% against the euro to €1.18. Andy Scott, associate director at financial risk advisor JCRA, said “Sterling’s impressive gains following the exit poll and election result have now been completely wiped out as markets are reminded that Boris Johnson’s promise to leave the EU is something he intends to fulfil, possibly without negotiating an amicable future relationship.”

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Nicola Sturgeon calls for Scottish independence

Scotland’s First Minister Nicola Sturgeon wants the UK Government to agree a transfer of powers allowing a referendum to be held in 2020 to vote on Scottish independence so Scotland can leave the UK and rejoin the EU as an independent member state. When voting on Brexit Scotland voted to remain with 62% and a successful second referendum could allow them to join an independent member state. Ms Sturgeon said that by transferring the power to allow a referendum it would ensure the referendum result was seen as being entirely legal and legitimate, particularly by the EU. Boris Johnson has said he is opposed to a second referendum and Ms Sturgeon has warned that “you can’t hold Scotland in the union against its will” and has not ruled out taking him to court if he does not agree.

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EU warns over treatment of EU citizens

The EU’s Brexit coordinator, Guy Verhofstadt, has warned that the European Parliament could block Boris Johnson’s Brexit deal over the UK’s treatment of EU citizens due to worries that the UK’s settlement scheme for EU nationals could cause problems and leave some citizens with no immigration status. He said “Everyone presumes the European Parliament will give automatically its consent to the withdrawal agreement. Not if the remaining problems with the citizens’ rights are not solved first. Citizens can never become the victims of Brexit.” Under the current plans ministers have said that EU citizens could face deportation if they don’t make the deadline to sign up for the Home Office’s settlement scheme.

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Commercial

Prime Minister urged to provide councils with ‘immediate’ financial certainty for next year

Councils have been forced to cut spending on local services by over 20% because of reductions to their funding from Whitehall over the last decade and local government professionals are now calling for Boris Johnson to provide financial certainty for next year. UK Solace president Martin Swales wrote to the Prime Minister on Friday asking for him to deliver a sustainable funding settlement for the next five-year term and to implement funding reforms for social care. In his letter Mr Swales wrote “Councils have already begun taking budget-led decisions which see further withdrawal of services from April 2020. You can minimise the impact of these decisions by confirming the local government finance settlement for the year ahead as a matter of urgency.”

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Oxford City Council announces budget to become a zero carbon council

Oxford City Council has published a £19 million climate emergency budget to help the authority become a zero carbon council in 2020 which includes £1 million additional operational funding and £18 million of capital investment to address the climate emergency. Cllr Tom Hayes, cabinet member for Zero Carbon Oxford said “Among our measures we’re announcing in this budget is our choice to become a net zero carbon council from October 2020. We will buy certified green gas and electricity and offset our remaining carbon emissions through the planting of trees in south-east England because we know the Assembly wanted to enhance biodiversity.”

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Regulatory

NHS trusts loses High Court bid to claim £1.5 billion charities reduction on business rates

A claim by 17 NHS Foundation Trusts that their relevant properties, mostly hospitals, were wholly or mainly used for charitable purposes and therefore met the requirements of sections 43(5) and 43(6) of the Local Government Finance Act 1988 and were only liable for 1/5 of the rates otherwise due has been dismissed by the High Court. The judge found that a Foundation Trust is not established for charitable purposes only and so is not a charity within the meaning of section 67(10) of the Local Government Finance Act 1988 or section 1(1)(a) of the Charities Act 2011. A Foundation Trust is therefore not a charity for the purposes of section 43(6) of the 1988 Act. The decision was welcomed by the Local Government Association who’s spokesperson said “Today’s ruling is good news for councils and the local services our communities rely on across the country. Councils, supported by the LGA, are pleased this common-sense decision will not see them having to pay NHS Trusts and Foundation Trusts £1.5bn in unfounded backdated business rates relief nor see them eligible for 80% relief going forward. Business rates, alongside council tax, are an extremely important source of income for local government so this would have huge implications for residents and the vital local services they rely on.”

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London plans UK’s first zero emission street

The City of London Corporation has announced that from Spring 2020 Beech Street in London will become the UK’s first 24/7 zero emission street. Access will be restricted to zero emission vehicles with the exception of emergency vehicles, access to the car parks off Beech Street and for refuse collection and deliveries. It is just waiting for approval from Transport for London and once given the traffic order will run for a maximum of 18 months to monitor its impact on air quality and traffic. The chair of the City of London Corporation’s environment committee, Jeremy Simons, said “These measures are another important step towards cleaner air in the City. Drastically reducing air pollution requires radical actions, and these plans will help us eliminate toxic air on our streets.”

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Planning and housing

Court rejects parish council’s claim council misdirected itself on relevant policies in the NPPF

The Court of Appeal has rejected a parish council’s claim that Babergh District Council, when assessing the five-year supply of housing land, misdirected itself on the relevant policies in the National Planning Policy Framework (NPPF). The case concerned three housing developments which the district council’s Planning Committee resolved to approve but the proposal did not accord with the development plan adopted by the district council previously. The district council concluded that the five-year housing land supply required under Government policy in paragraph 47 of the NPPF did not exist, so that, under the policy in paragraph 49, the policy for the “presumption in favour of sustainable development” in paragraph 14 was engaged and a decision to grant planning permission was justified. Lord Justice Lindblom said “They do not, in my view, demonstrate a failure by the district council to understand Government policy in paragraph 47 of the NPPF or guidance in the PPG, or a misapplication of that policy and guidance, or an exercise of planning judgment outside the generous scope that public law permits.”

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Council loses Upper Tribunal battle over modification of headlease

The Upper Tribunal (Lands Chamber) has ruled that Basingstoke and Deane Borough Council must modify the headlease of a former office building to allow for conversion to residential use after a claim was brought by a property firm. The premises are a purpose-built office building of which the council owns the freehold and in 1985 granted a headlease restricting its use to offices. The occupiers left the property in 2013 and the property has since fallen into disrepair and the property firm wanted to convert it to provide 114 residential flats, let on assured shorthold tenancies at open market rents however the council wanted to restore the building to lettable condition as town centre office accommodation and therefore refused to vary the headlease as it wishes to prevent residential uses in the area. The tribunal said “Our conclusion is therefore that the continuation of the restriction on the use of the building to offices secures no benefit to the council in terms of the capital value of its reversion, which was the main focus of the parties’ submissions.”

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280,000 people recorded as homeless in England

Homelessness charity Shelter has published the results of a study which reveals that around 280,000 are recorded as homeless in England which is an increase of 26,000 since 2016 and that the actual number was probably higher than this due to a large number of homeless people being undocumented. The charity is now urging the Government to tackle homelessness. Chief executive of Shelter, Polly Neate, said “Until the Government acts to stem this crisis, the work of our frontline advisers remains critical. With the public’s support we will do everything we can to help people find a safe and stable place to live – no matter how long it takes.”

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