Local Authority round-up 25/03/19

Brexit

EU agrees to Brexit delay

In a press statement released on 20 March 2019, European Council President Donald Tusk stated that the European Union will only agree to delay Brexit if MPs approved the current Withdrawal Agreement.  However, on 21 March, it was announced that the UK and the EU had agreed to delay Brexit until 22 May providing that MPs approve the Prime Minister’s deal in the next week.  If Parliament fails to approve the deal within the weeklong timeframe however, a far shorter delay period will apply – lasting only until 12 April.  In relation to the implications of this, Mr Tusk explained: “What this means in practice is that, until that date, all options will remain open, and the cliff-edge date will be delayed.”

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Prime Minister requests three month delay to Brexit

On 20 March 2019, in a letter to the President of the European Council, Donald Tusk, Theresa May formally requested an extension to the Article 50 period until 30 June 2019. The letter indicated that the purpose is to provide time to ratify and implement the Withdrawal Agreement. Mrs May’s letter also: confirmed that she intended to bring back the deal to the House of Commons for a third “meaningful vote” as soon as possible after the European Council meeting on 21-22 March 2019; asking the European Council, in advance of that vote, to approve the joint instrument which Mrs May agreed with Mr Tusk on 11 March 2019, and stating that Mrs May intended to bring forward further domestic proposals that confirm previous commitments to protect the UK’s internal market.

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EU Ministers agree continued EU access for UK transport operators

EU ministers have formally adopted laws which mean UK airlines, hauliers and passenger bus and coach operators will continue to be able to provide services to and from the EU in a ‘no-deal’ scenario. For UK hauliers, this means permits will not be required for the vast majority of journeys to the EU until the end of 2019. ECMT permits will enable hauliers to transit the EU to third countries. Operators of regular bus and coach services who have existing authorisations can also continue to provide services between the UK and the EU until the end of 2019. Roads Minister Jesse Norman said: “The Government believes that the best outcome is for the UK to leave the EU with a deal, but we will continue to progress sensible contingency plans.”

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Third “meaningful vote” must be different, says Speaker

On 18 March 2019, the Speaker of the House of Commons, John Bercow, made a statement saying that, in accordance with parliamentary rules, the Government cannot ask the House a question which is “substantially” the same as a question it has already been asked. He said the second vote on the Prime Minister’s deal last week was “in order” as it was substantially different to the first, but any further votes must pass the “test” he set out in order to be allowed. Although Mr Bercow was not entirely clear what would need to be different, he did tell Hilary Benn, Chair of the Exiting the EU Committee, that a “demonstrable change to the proposition” would be required.

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Competition and Markets Authority (CMA) publishes final guidance on effects of a “no-deal” Brexit on its functions  

The CMA has published the final version of its guidance on the effects of a ‘no-deal’ Brexit on the functions of the CMA. The guidance explains the legal changes expected to result from Brexit and sets out how Brexit will affect the CMA’s powers and processes for antitrust and cartel enforcement, merger control and consumer law enforcement after Brexit. It also explains the treatment of cases that are being reviewed by the European Commission or the CMA on the date of exit. The guidance will come into effect on exit day only in the event that the UK leaves the EU in a ‘no-deal’ scenario, and the Competition (Amendment etc.) (EU Exit) Regulations 2019 (SI 2019/93) comes into effect.

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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 publishes guidance for councils on community engagement in preparation for Brexit

The Ministry for Housing, Communities and Local Government (MGCLG) has published guidance which intends to advise councils on the ways they can understand, engage and reassure their communities in the lead-up to Brexit and beyond. The guidance focuses on: (1) effective community engagement and the role of local leaders in “generating trust”. The guidance states that many councils are using local forums as ways of offering reassurance to residents and as a way of disseminating key messages; (2) how to support the EU Settlement Scheme, which enables resident EU citizens and their families to obtain UK immigration status and remain in the UK permanently post-Brexit; and (3) tackling hate crime and preparing for any raised tensions.

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Councils to receive £9.75 million cash boost to support high street ‘spring clean’

The Government has announced that councils across England will receive an immediate cash boost from a £9.75 million fund, to support their efforts in cleaning up high streets and town centres. The funding will give councils an opportunity to encourage communities to take greater pride in their local area, and support campaigns such as Keep Britain Tidy’s Great British Spring Clean Campaign. Councils in partnership with existing community groups will be able to use this one-off funding to support volunteers. In particular, they will be able to buy tools such as litter pickers, gloves, brushes and provide training for residents on how to remove graffiti or tackle fly-tipping, as well as organise events to encourage more families to get involved.

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Department for Work and Pensions (DWP) proposes new pension scheme

The DWP has proposed the first Collective Defined Contribution (CDC) scheme in the UK after the pensions industry, insurers and other bodies welcomed the move proposed by Royal Mail and the Communication Workers Union (CWU). CDC pension schemes offer a regular retirement income by allowing group contributions to be pooled together and invested to give members of the scheme a higher final benefit level. The new schemes are expected to appeal to companies who want to offer strong pensions provisions to employees without having to hang on to enormous pension liabilities. The consultation response confirms primary legislation will be brought forward to introduce CDCs as soon as parliamentary time allows.

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Regulatory

Government launches ‘Future of mobility: urban strategy’ review

The Department for Transport has launched its biggest regulatory review in a generation to explore regulation around new transport modes. The review will explore regulations around new types of vehicles including e-scooters and e-cargo bike trailers, and how sharing data can improve services by reducing congestion, and how journey planning and payment can be made more simple. This wide-ranging review will also explore modernising laws from the 1800s that are providing a barrier to innovation. Alongside this, the Government is launching a competition for up to 4 new ‘future mobility zones’, backed by £90 million, to test ideas to improve journeys for people across the country.

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Stalking Protection Bill receives Royal Assent

On 15 March 2019, the Stalking Protection Bill received Royal Assent and became the Stalking Protection Act 2019 (SPA 2019). Parts of the SPA 2019 commence immediately while other parts commence later. The SPA 2019 will see the introduction of new Stalking Protection Orders, a civil order that police can apply for that will enable them to tackle so called ‘stranger stalking’ sooner and more effectively. The orders will have the flexibility to impose both restrictions and requirements on perpetrators and will carry a criminal penalty for those that breach them. The policy will apply for the order, so the burden of going through the process does not lie with the victim.

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Figures indicate high increase in modern slavery referrals by councils

According to the latest National Crime Agency statistics, the number of council referrals of suspected victims of modern slavery to the National Referral Mechanism (NRM) (the UK’s framework for referring and supporting victims) has risen from 153 in 2013, to 1,342 in 2018. In addition, the rate of council referrals has increased by 70% in the last year alone, from 789 in 2017, and 221% in two years, from 418 in 2016. The LGA said the increase in council referrals suggests an increasing awareness of modern slavery and the growing issue of county lines drug trafficking, many cases of which are included in the NRM figures.

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High Court rejects challenge over SEND cuts proposed by council

The High Court has rejected a judicial review challenge by five children with special educational needs and disabilities (SEND) to Surrey County Council’s decision to save £11 million from its SEND budget. The claimants submitted that the council’s decision to make significant reductions was flawed and invited the High Court to grant declaratory relief, and an order quashing the SEND “budget allocation for 2018-19” and costs. The claimants originally challenged the decision to approve the savings of £21,001,000, but at the hearing their QC confined her challenge to “areas of focus” (AOF) (inclusion, commissioning, provision and transition) comprising £11,694,000.

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Planning and housing

Survey reveals councils will use borrowing powers to accelerate homebuilding programmes

According to a survey conducted by the Local Government Association (LGA), 94% of housing stock-owning councils will use the new powers conferred on them by the Government’s abolishment of the housing borrowing cap, to accelerate or increase their housebuilding programmes to build homes desperately needed in their communities. However, 92% of councils are clear that more support from the Government is needed if councils are to truly resume their historic role as major house builders and reverse this decline in social housing. The survey also reveals the growing national and local skills gap is a cause for concern, with councils ability to reskill and upskill crucial to accelerating their homebuilding plans.

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Council entitled to rely on Charity Commission advice to sell part of designated land, court rules

The High Court has held that a council that held parkland on a charitable trust, governed by a Charity Commission (CC) scheme, had not acted in breach of trust by selling a cottage on the land. The council was told by the CC that it could rely on the power of sale in section 6 of the Trusts of Land and Appointment of Trustees Act 1996, to sell the cottage. In essence, the court held that the council was entitled to rely on, and was protected by, the Commission’s decision that the sale of the cottage was permissible and was not a breach of trust. It also held that the council was not required to retain part of the designated land for which no use could be found that furthered the object of the charity, or that drained the charity’s resources. It therefore had power to sell the cottage without replacing it.

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2019 Spring Statement: key planning announcements

Last week the Chancellor of the Exchequer, Philip Hammond, delivered the Spring Statement. In terms of the key planning announcements, the focus of the Government’s planning reforms is to ensure the vitality of the high street and drive greater housing delivery through more efficient use of land. To achieve this, the Government has confirmed that it is bringing forward new permitted development rights and changes to the Town and Country Planning (Use Classes) Order 1987 which were consulted on at the end of 2018. This includes making permanent the time-limited right to build larger single storey rear extensions to dwelling houses. The government will also publish a green paper on speeding up the planning process and consult on a “Future Housing Standard”.

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