Local Authority round-up 08/06/19

Brexit

Jeremy Hunt willing to support no-deal Brexit

The Foreign Secretary Jeremy Hunt has explained that, if he were to win the Conservative leadership contest and become Prime Minister, he would be willing to leave the European Union without a deal if it was the only means of delivering Brexit.  However, qualifying this somewhat, Mr Hunt said: “I would be prepared to do it in extremis.  But I wouldn’t do it if there was a prospect of a better deal.  And I think there is a prospect of a better deal, and I think it’s possible to get one before 31 October, although I don’t pretend it’s going to be easy.”

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US to discuss “entire economy” in post-Brexit trade deal

A representative close to the President of the United States has explained that he believes that the US would be interested in discussing business access to the National Health Service during any trade discussions with the UK.  The controversial comments have, however, sparked outrage with the Shadow Health Secretary saying: “The ambassador’s comments are terrifying and show that a real consequence of a no-deal Brexit, followed by a trade deal with Trump, will be out NHS up for sale.  This absolutely should not be on the table.”

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International Trade Secretary warns of disruptive Brexit

The International Trade Secretary Dr Liam Fox has warned that “the prospect of a no-deal might well be used by those who seek to break up the United Kingdom… both in Northern Ireland and potentially in Scotland”.  However, Dr Fox also explained the need to remain open to the possibility of a no-deal exit explaining that: “Number one is that we want a deal, because we think that is the best way to leave the European Union with minimal disruption.  But equally, and it has to be delivered with equal volume and equal strength, if we can’t get an agreement, we have to be willing to walk away, otherwise we have no real negotiating hand.”

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Boris Johnson explains dangers of failing to implement Brexit

The former Foreign Secretary, and Tory Leadership hopeful, has said that the Conservative party faces “potential extinction” if it fails to ensure that the UK leaves the European Union by 31 October.  Contrary to this though, Mr Johnson’s leadership rival Michael Gove has described the deadline as “arbitrary” as well as suggesting that the UK is “not wedded” to it.

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Commercial

Mayor calls for “wholesale review” of the business rates system

West Midlands Mayor Andy Street has told the Treasury Select Committee that a wholesale review of the business rates system is required in order to save the UK’s struggling high streets. Explaining the need for action, Mr Street stressed: “Our town centres and in particular our high streets are the heart of where we live, and they are having a tough time. We need to think originally to come up with practical solutions to help them thrive again.” In this regard, Mr Street proposed the idea of reduced rates for new and expanding businesses in addition to their being a 100% relief for public sector bodies present on the high street.

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Small businesses to benefit from Greater London Investment Fund

The Mayor of London Sadiq Khan has launched a £100m Greater London Investment Fund in the hope that it can assist small businesses which have had difficulties in securing crucial investment previously. Commenting on the need for the fund, Mr Khan explained: “London is the best place in the world to start and grow a business – but even in such a dynamic economy as ours, some small entrepreneurs can’t access crucial funding. I promised to be the most pro-business Mayor that London has ever had and that’s why we’re allocating a record amount to SMEs who can create jobs and play a crucial role in our economy.”

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Government apologetic following business rates error

The Ministry of Housing, Communities and Local Government has confirmed that it may be required to make “special payments” to a number of councils following a technical error made by officials in the guidance note for this year’s business rates pilots. In relation to this, a government letter stated: “the Secretary of State has exceptionally decided to offer a goodwill payment to those councils who used the incorrect guidance for their financial planning in 2019-20, and where the consequences of doing so could be more difficult to mitigate.”

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Labour considers eradication of council tax for renters

A report published by the Labour party entitled “Land for the Many” has proposed replacing council tax with a “progressive property tax” which would be paid by property owners and not by tenants. With regard to the tax, the paper explains that: “unlike council tax, the progressive property tax rate would be based on regularly updated property values, and the rates would be set nationally, rather than locally determined.” Furthermore, the paper confirms that empty and second homes would be automatically taxed at a higher rate.

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Regulatory

Institute for Fiscal Studies (IFS) publishes Sure Start research

The IFS has published its findings following an investigation into the effects that the introduction of the Sure Start programme has had on the UK. In particular, the IFS noted that Sure Start has significantly reduced hospitalisations among children by the time that they finish primary school and has provided major benefits to those living in the poorest areas. At the same time however, the Local Government Association (LGA) explained that it was vitally important that such programmes remain adequately funded otherwise they face the risk of closure.

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Report stresses prevalence of “preventable ill-health”

A report published by the Institute for Public Policy Research has warned that “too many people in the UK are suffering from preventable ill-health with progress on prevention stalling over recent years”. It is because of this that the report recommends that the Government should increase its public health grant to 2012/13 levels as well as prioritising investment in mental health initiatives. Additionally, the report supports the reform of advertising regulation to ensure that unhealthy food products should be subject to a 9pm watershed.

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Planning and housing

Organisation highlights the cost associated with maintaining empty properties

The TaxPayers’ Alliance has published research examining the number of commercial properties owned by councils which were vacant for some, or all, of the two-year period from 1 January 2016 to 31 December 2017. Importantly, the findings state that the total cost of providing security, insurance maintenance and renovation to these was £74,022,381 emphasising the significant burden that empty properties place on councils.

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Brownfield development falls to five-year low

The Campaign to Protect Rural England warned that the proportion of new homes build on derelict and vacant land, i.e. brownfield sites, has fallen by 10% over the past five years at the same time as levels of greenfield development having increased. Stressing the worrying nature of the findings, a spokesperson from the organisation said: “It is imperative, if its potential is to be fully realised, that the Government, councils and house builders all take a brownfield-first approach to development.”

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Government introduces new housing infrastructure rules

The Minister of State for Housing Kit Malthouse has announced that communities are to benefit from new housing infrastructure rules which should make it easier for councils delivering new housing projects. Commenting on the news, Mr Malthouse explained: “The reforms not only ensure developers and councils don’t shirk their responsibilities, allowing residents to hold them to account – but also free up councillors to fund bigger and more complicated projects over the line. The certainty and less needless complexity will lead to quicker decisions”.

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Council wrongly granted planning permission for poultry farm

The Court of Appeal has allowed an appeal against a decision of the High Court finding that a council failed to carry out an assessment considering the likely effects of odour and dust arising from the disposal of manure when granting planning permission for an intensive poultry-rearing facility. In this regard, Lord Justice Lindblom held: “there was nothing within the environmental information for this project that qualified as a proper assessment, in accordance with the Environmental Impact Regulations, of the effects of odour from the storage and spreading of manure… In my view the [assessment] was incomplete and unlawful, and this unlawfulness vitiated the council’s decision to grant planning permission.”

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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.