Local Authority round-up 25/02/19

Brexit

Prime Minister reschedules ‘meaningful vote’

On 24 February 2019, speaking as she travelled to an EU-Arab League summit in Egypt, Theresa May said her team would be returning to the Belgian capital on Tuesday for further talks. Mrs May added: “As a result of that, we won’t bring a meaningful vote to Parliament this week, but we will ensure that that happens by 12 March.” Mrs May has already met European Council President Donald Tusk for talks after landing in Egypt, and will meet other EU leaders on the fringes of the summit later on the same day.

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MPs quit Tory party to join the Independent Group  

On 20 February 2019, three Tory MPs resigned from the Conservative party to join an independent group, set up by former Labour MPs, reducing the Government’s working majority to nine MPs. The three MPs held a press conference, criticising the Government for letting the “hard line anti-EU awkward squad” take over the party. The new Independent Group is made up of eight Labour MPs who resigned from their party, over its handling of Brexit and anti-Semitism – saying it represented “the centre ground of British politics.” Responding to the resignations, Prime Minister Theresa May said she was “saddened” but her party would “always offer… decent, moderate and patriotic politics.”

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Prime Minister continues EU negotiations

On 20 February 2019, Theresa May returned to Brussels to continue discussions with the European Union. Chancellor Phillip Hammond confirmed on 19 February that the Government no longer intended to pursue alternative arrangements for the backstop in the Withdrawal Agreement. In particular, he said the so-called “Malthouse Compromise” which included proposals to use technology and checks away from the border to ensure the backstop was never activated, was no longer a viable option. Mrs May now plans to secure legally-binding assurances that the Irish backstop will not extend indefinitely.

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House of Commons (HOC) Library examines potential extension to Article 50

The HOC Library has published an article which provides insight into how any potential extension to Article 50 could be requested, and how it might affect the European Parliament (EP) elections to be held in May. The Labour frontbench has indicated that when the Government’s Brexit policy is next debated by the HOC on 27 February, it will support Yvette Cooper’s amendment to secure parliamentary time to debate a Bill, providing for a vote on seeking an extension to Article 50, if the Government has not secured Commons’ approval for an agreement by 13 March. Amongst other issues, the article explores scenarios in which a request for Article 50 could be made and how long a general election or referendum would take.

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UK and Israel sign trade continuity agreement

On 18 February 2019, the UK and Israel signed the UK-Israel agreement in Tel Aviv, which simplifies trade and allows businesses to trade as freely as they do now, without any additional barriers or tariffs. The British vehicles sector could avoid up to £9 million a year in tariff charges on their exports that would apply if the agreement was not in place, while machinery and mechanical appliance exporters could avoid up to £5 million a year. The agreement also protects existing preferential market access for pharmaceutical products, provides crucial protection for intellectual property rights and maintain high trading standards across industry.

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Government publishes guidance on regulatory requirements for manufactured goods

On 15 February 2019, the Department for Business, Energy and Industrial Strategy (BEIS) published guidance on the regulation of goods placed on the UK and EU markets, to help UK businesses understand the implications of a deal or ‘no-deal’ Brexit for their products and supply chains. The guidance brings together in one place, previously published sector-specific information across the different areas of goods regulation. It does not cover customs requirements, but directs businesses to the HMRC’s guidance on this issue.

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UK-US agree to preserve trade arrangements

On 14 February 2019, the UK and US signed the Mutual Recognition Agreement on Conformity Assessment (MRA), which will maintain all relevant aspects of the current EU-US MRA, when the EU-US agreement ceases to apply to the UK. The agreement is not a free trade deal, which can relax trading rules, reduce tariffs on imports and exports, and grant easier market access however, it will benefit a range of sectors, including technology, telecommunications and pharmaceuticals. The latter accounts for £7.7 billion of exports to the US, nearly 18% of total UK goods exports to the US.

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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

Local Government Association (LGA) publishes ‘Reshaping Financial Support’ report

The LGA has published a new report which sets out how councils are working with low-income households to improve advice provision and amend debt collection practices. The LGA plans to deliver some pathfinders with partners and councils later in 2019, to take forward the report’s recommendations, and further develop and explore local approaches to strengthening and delivering financial support. The report focuses on a study of 10 councils who have been reviewing their approaches so that they can better target their resources on those in greatest need, as well as deliver more holistic responses to support people to become more financially resilient in the long term.

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Briefing highlights the role of councils in securing exports and investment

In preparation for a House of Commons debate on the Potential Future Free Trade Agreements on 21 February, the LGA has published a briefing which explores the current UK trade policy and the importance of involving local government in the development of this policy. The LGA argues that local government should be consulted on the UK’s trade policy as it is being developed. It also recognises that through their role of securing exports and investment, their pivotal role in driving local economic growth, and their investment in infrastructure, housing, planning and skills, councils have a central role to play in fostering the conditions necessary for business and inclusive growth.

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Councils to benefit from £13 million of park funding

On 17 February 2019, the Minister of Housing, Communities and Local Government James Brokenshire, announced £9.7 million of funding allocated to councils to better maintain, protect and increase their recreational spaces. An additional £2.75 million will also be made available for the pocket parks plus programme, which supports community groups who wish to create new parks or refurbish older ones that have fallen into disrepair. Mr Brokenshire said: “This latest funding will support bold proposals to help renovate and restore existing parks and create new vibrant, safe green spaces for our communities.”

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Amey looks to terminate Birmingham roads contract

Amey PLC could be set to pay more than £200 million to free itself from a troubled 25-year PFI contract with Birmingham City Council, to repair its roads following a five-year legal battle with the council. The news follows Amey’s loss of a five-year legal fight with the council, over a £2.7 billion deal in the Court of Appeal. As reported in the Sunday Times, Amey’s parent company, Ferrovial, which also co-owns Heathrow, is looking to terminate the contract with Birmingham City Council. Reports suggest the council may be holding out for a settlement of £300 million or more.

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Regulatory

Department for Environment, Food and Rural Affairs (DEFRA) sets out plans to overhaul waste system

DEFRA has launched a consultation on plans to reform the system by which waste is collected and sorted, cut plastic pollution, and move towards a more circular economy. The consultation outlines plans to make businesses and manufacturers pay the full cost of recycling or disposing of their packaging waste. It also seeks to ensure there are a consistent set of recyclable materials and proposals for separate weekly food waste collections for every household in England. The Chancellor of the Exchequer Phillip Hammond said: This action, coupled with the other measures we are bringing in, will help drive up recycling, cut the amount of new plastic being used and protect our environment for future generations.”

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Supreme Court to hear case on residential care workers and sleep-ins

The Supreme Court has granted permission to appeal in the long-running litigation over whether sleep-in residential care workers should be paid National Minimum Wage while asleep. In July 2018, the Court of Appeal overturned an April 2017 Employment Tribunal ruling, finding that the National Minimum Wage did not apply to sleep-in shifts unless the worker was awake for the purpose of working. However, Cloisters Chambers, whose Caspar Glyn QC and Chesca Lord act for Mr Shannon confirmed: “The appeal raises a point of national importance which could affect hundreds of thousands of low-paid individuals. An estimated 655,000 individuals [are] employed in residential adult social care in England alone.”

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Council prosecuted after wall collapses into child

On 15 January 2019, Basildon Borough Council was sentenced after a brick boundary wall, which it part-owned, collapsed and seriously injured a six-year-old girl. An investigation by the Health and Safety Executive found Basildon Borough Council failed to take any action after receiving concerns about the wall’s condition from private tenants, two years prior to the incident. The council pleaded guilty to breaching Section 3(1) of the Health and Safety at Work Act 1974 and has been fined £133,333 and ordered to pay costs of £21,419.55. Speaking after the case, HSE inspector Tania van Rixtel said: “This was a wholly avoidable incident which could easily have been fatal.”

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Planning and housing

Analysis suggests building social housing could have saved £1.8 billion in rent

New analysis published on 15 February 2019, suggests that £1.8 billion would have been cut from the housing benefit bill, had the Government built 100,000 social rent homes in each of the past 20 years. The LGA, which commissioned Cambridge Economics to conduct the research, said this is why the Government should use the Spending Review to ensure that a “genuine renaissance” in council housebuilding, which is “needed to increase housing supply” and boost affordability, is a success. The analysis also found that building social rent homes each year for the past 20 years would have enabled all housing benefit claimants living in the private rented sector to move to social rent homes by 2016.

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Minister announces £6 million boost for community-led housing

The Government has announced a multi-million pound funding boost for community groups looking to build affordable housing in their areas. The Community Led Homes Programme will provide local people with up to £10,000 of funding to cover start-up costs for housing developments. A further £3.5 million will also be made available to provide technical advice and support to community groups. Announcing the new funding, Minister Kit Malthouse MP said: “Last year we delivered over 222,000 homes but we need to deliver more good quality properties, and the community-led housing programme will help us do just that.”

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Court allows council to strike out homelessness review decision

The County Court has allowed an oral application by the London Borough of Lewisham, as the local housing authority (LHA), to strike out part of an appellant’s notice of appeal under section 204(1) of the Housing Act 1996 (HA 1996) against the LHA’s homelessness review decision. The appellant, a single parent who suffered from depression, had been taken to have refused an offer of accommodation that the LHA had made. She therefore issued an appeal alleging the LHA had breached sections 15 and 19 of the Equality Act 2010. The judge granted the appellant permission to appeal from his order, and indicated that, if counsel for both parties were able to agree a route by which the judge might direct the appeal to the Court of Appeal, he would make an order to that effect.

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