Local Authority round-up 28/05/19

Brexit

The Brexit Party clear winner in UK’s European elections

The UK’s European election results have been announced with The Brexit Party winning 29 seats and becoming the joint largest nation party in the European Parliament.  The Liberal Democrat’s secured 16 seats, Labour 10, Green 7, the Conservative’s 4, the Scottish National Party 3 and Plaid Cymru, the Democratic Unionist Party and the Alliance party all secured 1 each.  Change UK, UKIP and Ulster Unionist did not win any seats.  The Conservatives and Labour suffered heavy losses.  It is unclear whether the results indicated a need to leave the EU without a deal or whether a further referendum was needed as Anti-Brexit parties received around 40% of the vote and Pro-Brexit parties received just under 35% of the vote.

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Theresa May to resign on 7 June

On Friday 24 May Theresa May announced that she will quit as Conservative leader on 7 June but will remain until then whilst a Conservative leadership contest takes place.  Following details of her new Brexit deal she faced increasing pressure to resign with some MPs seeking a change to the party rules so they could vote to oust her at a meeting of backbench MPs.  She had previously pledged a timetable for her resignation to take place after MPs voted on her Brexit plan in early June but has now announced her resignation saying she has “deep regret” that she has been unable to deliver Brexit and that it was now in the “best interests of the country for a new prime minister to lead that effort.”

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Leadsom quits and delays Withdrawal Agreement Bill

Theresa May’s Withdrawal Agreement Bill, which was expected to be published on 24 May, has now been delayed until early June following the resignation of Andrea Leadsom as Commons Leader on 22 May.  Mark Spencer told MPs “We will update the House on the publication and introduction of the Withdrawal Agreement Bill on our return from the Whitsun recess.”  Leadsom resigned stating that she could not announce the bill which had “new elements that I fundamentally oppose,” and has since been replaced by Treasury minister Mel Stride.

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End of Brexit talks lead to drop in the pound

Following the end of cross-party talks with no agreement last week, the pound sunk to a four month low on Friday evening, falling by 2%, which analysts said reflected investors pricing a higher chance of the UK leaving the EU without a deal.  The pound was 0.52% lower against the dollar at $1.273 which was a drop from a general trade price of $1.29 against the dollar since the delay of Brexit in March.  The pound was also lower against the Euro, falling 0.46% to €1.140.

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Brexit talks end without agreement

Cross-party talks ended last week with no agreement reached between the parties.  There remains unresolved issues including membership of a customs union and a further referendum which prevented any agreement being reached on the prime ministers Brexit deal.  Labour leader Mr Corbyn wrote in a letter to Theresa May “I believe the talks between us about finding a compromise agreement on leaving the European Union have now gone as far as they can.”

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Commercial

Government announces £62 million funding for high streets

Culture Secretary Jeremy Wright announced that the Government is to provide a new £62 million fund as part of its plan for high streets which it announced as part of last year’s budget.  The funding will be used to regenerate by refurbishing disused or underused buildings into create spaces, retails outlets, offices and housing as part of the Governments wider initiatives to help high streets.  The funding includes £44 million of Government and Historic England Funding, £3 million from the National Lottery Heritage Fund and £15 for the Architectural Heritage Fund.  Jeremy Wright said “this £62 million investment will breathe new life into high streets right across the country, benefiting local people and businesses, as well as providing assistance to much-loved historic buildings.”

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DWP to publish new poverty statistics

Following a report published by the Social Metrics Commission last year, the Department for Work and Pensions will publish experimental statistics in 2020 which will also include the Government’s annual official Households Below Average Income publication which measures poverty in the UK.  Minister for Family Support, Housing and Child Maintenance Will Quince said “Employment is at record levels and income inequality and absolute poverty are still lower than in 2010, but nonetheless we know some families need more support. That is why we continue to spend £95 billion a year on working age benefits, and we are looking at what more can be done to help families improve their life chances.”

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Councils could face £50 billion shortfall

The Government has announced that councils will have access to £46.4 billion this year but the County Councils Network have said that this may not be sufficient and councils could face funding issues of more than £50 million over the next six years unless more cash is made available.  Rising costs and demand for services will impact funds and it is proposed that yearly council tax rises will not be sufficient to make up the shortfall.  Paul Carter, County Councils Network chairman, said “If Government does not provide additional funding for councils over the medium term, many local authorities will resort to providing the bare minimum, with many vital services all but disappearing.”  The County Councils Network has asked the Government to provide clarity about spending plans.

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Regulatory

New measures on violent crime

As part of the Governments Serious Violence Strategy, the Offences Weapons Act received Royal Assent on 16 May which brings in tough new measures to strengthen law enforcement against violent crime.  Sajid Javid, Home Secretary, said “these new laws will give police extra powers to seize dangerous weapons and ensure knives are less likely to make their way onto the streets in the first place. The Act will also see the introduction of Knife Crime Prevention Orders – a power the police called for.”  Some measures brought in by the new Act include a ban on selling bladed products to a residential address without age verification,  banning the sale of corrosive products to under 18s and making it illegal to possess dangerous weapons in private, including knuckledusters, zombie knives and death star knives.

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Government awards £635,000 to protect children from online abuse

The Marie Collins Foundation has received a £635,000 investment from the Global Fund to End Violence Against Children, a Home Office-led consortium, to support work against children who have been sexually abused online.  Under the Global Protection Online Network they will help train safeguarding professionals to develop best practice and develop new guidelines and new legislative measures.  Minister for Crime, Safeguarding and Vulnerability, Victoria Atkins said “Child sexual exploitation is a global problem and one which requires a global response. The Government is absolutely committed to tackling this horrific abuse wherever it occurs and we are working closely with Governments and organisations across the world to protect children from harm.”

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£2.5 million awarded for Careers Hubs

Following success last year with the first 20 Careers Hubs launched across England outperforming the national average across all aspects of career education, the Secretary of State for Education has announced that this will be expanded with a further £2.5 million to be awarded.  The funding will provide a further 18 new Careers Hubs and two expended Hubs with just over 1,300 secondary schools and colleges set to now benefit including access to support and funding to bring them together with employers, universities, training providers and career professionals.  Damian Hinds, Secretary of State for Education, said “today’s investment will give thousands more young people access to expert careers guidance as they take those first exciting steps into their future.”

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LGA responds to report on young people

In response to figures published by the office of National Statistics reporting on young people not in education, employment or training, the Local Government Association (LGA) said councils are losing 60p out of every £1 received from the Government to provide services. Chairman of the Local Government Association People and Places Board, Cllr Mark Hawthorne, said ““Councils want to ensure every young person realises their full potential. The Government needs to enable councils to work with local and national partners to join up careers advice, skills and training provision so that every young person has the opportunity to take their place in a growing economy.”

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Planning and housing

Ministry of Justice launches re-examination of housing possession service

On 20 May the Ministry of Justice announced a three-week engagement to seek views on housing possession advice in courts to understand the experience of anyone involved in the provision of advice and assistance at housing possession proceedings.   The service is currently provided by the Legal Aid Agency providing advice for people facing housing repossession through the Housing Possession Court Duty Scheme.  Responses are required by 10 June 2019 to help the Ministry of Justice understand the scheme and any concerns to better understand the process.

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£15 million investment announced to support families

The Government has announced up to £15 million in funding for 40 new council areas under a new programme Supporting Families: Investing in Practice which aims to provide programmes to families where children are at risk of being taken into care.  The programme will help families work on issues together including to create stability for young people to prevent them being taken in to care under the Family Group Conferences project and also those impacted by domestic violence or substance misuse or addiction under the Family Drug and Alcohol Courts.  Children and Families Minister Nadhim Zahawi said “we are seeing rising numbers of children going into care. Often, their parents are struggling with problems of their own and that has an impact on the whole family. Projects like these are making sure vulnerable families get the support they need from experts who can help them address their problems head on and stop them from spiralling out of control.”

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Regulator of Social Housing reminds councils of social housing consumer standards

In a letter issued to the chief executives of councils dated 17 May 2019, the Regulator of Social Housing, Fiona MacGregor, reminds councils of their obligations under the Regulator’s consumer standards, particularly with respect to the Home Standard expectations on health and safety whereby obligations remain with the local authority where it is the stock-owning body even if its management has been contracted out.  It recommends that councils seek assurances that the council is complying with consumer standards as part of their obligations to ensure they have proper oversight of all health and safety issues.

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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.

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.