Local Authority round-up 25/09/20

Brexit

Kent Access Permit system announced

Following a letter from cabinet minister Michael Gove to the Government warning that queues 7,000-trucks-long could clog roads around the port of Dover and Channel Tunnel after the transition period, the Government has announced the Kent Access Permit system. Under the system, truck drivers will need a permit to enter Kent after the Brexit transition period ends. Drivers of lorries weighing more than 7.5 tonnes will need to apply for the permits online and show that they have all the paperwork they need to ferry goods to Europe. The system will be enforced by police and ANPR cameras. Labour’s Shadow Chancellor of the Duchy of Lancaster, Rachel Reeves, said “It is incredible that ministers are only now admitting to their plans to arrest British truckers for entering Kent without new travel passports. With just over three months to go, how are businesses meant to prepare amid this Conservative carnival of incompetence?'”

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Brits in EU face closure of UK bank accounts over lack of post-Brexit rules

A number of large British banks are set to stop serving UK citizens resident in the EU as the Government has not yet negotiated post-Brexit rules. As EU banking rules will no longer apply to the UK once the Brexit transition period ends it would become illegal for UK banks to provide services for British customers in the EU without applying for new banking licences. Lloyds Bank, Barclays, Barclaycard and Coutts are all reported to be taking such action. Lloyds Bank has written to 13,000 personal and business customers saying it will no longer be able to offer banking services once the Brexit transition period ends on 31 December. HSBC and Santander say they have no plans to close British expat accounts in the EU. UK trade body UK Finance said “Where possible, firms want to keep providing banking services to customers living in the EEA after the transition period. The impact on each customer will vary depending on the operating model of their bank or provider, the product or service being provided, and the legal and regulatory framework in the country in which they are resident.”

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Commercial

Sport and Leisure Recovery Fund for Wales

The Welsh Government has announced a £14 million funding package to support Wales’ sport and leisure sector during the coronavirus pandemic lockdown. The funding package will be allocated to Sport Wales and managed by them on the Welsh Government’s behalf. The deputy minister for culture, sport and tourism, Lord Elis-Thomas, said that the Sport and Leisure Recovery Fund is intended to provide essential support to sports clubs and organisations, independent providers and sporting events who have all faced significant challenges during the crisis. He said “I’m very pleased that we’re able to lead the way in Wales in protecting and sustaining this very important part of our society by delivering this targeted package of support. Sport across Wales came to an abrupt halt at the beginning of this crisis with an immediate impact. We also recognise that there are significant longer-term challenges facing the sector – linked to gradual reopening and low capacities. I hope this fund will help with long-term planning and sustainability in the sport and leisure sector – which plays such an important part in keeping the nation healthy and active.”

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Jobs Support Scheme announced

Chancellor Rishi Sunak has announced details of the Jobs Support Scheme which will replace the current furlough scheme which comes to an end on 31 October. Under the new scheme, workers will get about three quarters of their normal salaries for six months. The new scheme will start from 1 November and the Government will subsidise the pay of employees who are working fewer than normal hours due to lower demand but will only apply to staff who can work at least a third of their usual hours . Employers will pay staff for the hours they do work and for the hours employees can’t work, the Government and the employer will each cover one third of the lost pay. The grant will be capped at £697.92 per month. Mr Sunak said the new scheme would “support only viable jobs” as opposed to jobs that only exist because the Government is continuing to subsidise the wages. As part of his announcement, Mr Sunak also announced that the VAT cut from 20% to 5% for hospitality and tourism companies will also be extended until March, that a scheme would be announced for the self-employed and that small businesses who took out “Bounce Back” loans would be able to use the new Pay as You Grow flexible repayment system in order to repay the loans over 10 years instead of the original six year term.

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Regulatory

Councils call for clarification on self-isolation funding

The Government recently announcement that people with coronavirus symptoms will be required by law from 28 September to self-isolate and that those who are on lower incomes who cannot work from home will be supported by a £500 payment to help them through the 14-day isolation period. The Government said that councils would be required to set up the schemes by 12 October and funding would be provided which can be used at the council’s discretion. However councils are now calling for the Government to provide information as to how councils will be reimbursed for any payments made under the scheme. Cllr James Jamieson, chairman of the Local Government Association said “Given the ongoing and significant funding pressures they face, urgent clarity is needed about how councils will be reimbursed for costs of setting up these schemes and the payments themselves.”

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Councils face reporting requirement on modern slavery

The Government is to strengthen the Modern Slavery Act 2015 to require larger councils and other public bodies and businesses to take action against modern slavery risks in their supply chains. All public bodies with a budget of at least £36 million will be required to regularly report on what they have done to prevent modern slavery. The Government will mandate the key topics that modern slavery statements must cover, from due diligence to risk assessment, to encourage organisations to be transparent about the work they are doing to ensure responsible practices. There will also be a requirement for such bodies to publish their modern slavery statements on a new digital government reporting service, which will be launched early next year. Safeguarding minister Victoria Atkins said “Sadly, we know that no sector is immune from the risks of modern slavery which can be hidden in the supply chains of the everyday goods and services we all buy and use. We expect businesses and public bodies to be open about their risks, including where they have found instances of exploitation and to demonstrate how they are taking targeted and sustained action to tackle modern slavery.” The Government said it will also take forward options for civil penalties for non-compliance with the Modern Slavery Act.

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Planning and housing

Design standards in new planning system

Housing Secretary, Rt Hon Robert Jenrick MP, has announced that he has appointed Nicholas Boys Smith to establish a new design body, tasked with driving up design standards and supporting local communities to produce design codes defining beautiful design in each community. This will allow councils to introduce their own local design codes in order to enhance beauty, quality and environmental standards by giving communities control over what is built in their areas. Mr Jenrick said “For the first time in this country, we are embedding beauty, design and quality in the planning system. The creation of a new design body will empower communities to demand developments are built to local preferences and reflect the character and identity of their communities – assigning ‘anywhereville’ developments to history.”

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Property Flood Resilience scheme extended

The Government has announced that the Property Flood Resilience scheme will be extended by nine months to take into account delays to repair work and the additional pressures placed on councils by the coronavirus pandemic. The extension will give homeowners and businesses more time to carry out repairs and give councils a greater period to process the grants. The new deadline for applications for grants of up to £5,000 has been extended so that communities flooded in November 2019 now have until now 31 December 2021 to apply, while those flooded in February 2020 have until 1 July 2022. Environment Minister Rebecca Pow said “Whilst the pandemic has affected us all, those who endured the hardship of flooded properties in the weeks and months ahead of coronavirus bore an even greater burden than most. The £5,000 grant enables people to make their homes and businesses more resilient and better protected from future flooding. This is about helping them build back better and greener, while also providing a boost for local economies.”

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