Local Authority round-up 17/04/20

Brexit

House of Lords Library publishes article on coronavirus implications for transition period

The House of Lords Library has published an article entitled Coronavirus: What does it mean for the Brexit transition period? The article is in two parts and the first part examines how the focus of governments on Covid-19 has affected the progress of negotiations on the future UK-EU relationship and the implementation of the withdrawal agreement. It notes that informal discussions on the future relationship are ongoing, but it has not been possible to continue the negotiations by video-conferencing because of the number of participants involved and security concerns about the technology and that it is not clear how the talks will progress over future weeks. It notes that there have been many calls (including from the Scottish and Welsh Governments) for the transition period to be extended however the deadline for agreeing an extension is 30 June and the Government has maintained that it will not ask for or agree to an extension. The second part of the article looks at how the UK is affected during the transition period by the EU’s response to Covid-19, what is happening with the UK’s plans to negotiate trade deals with non-EU countries, and what this means for Parliament. It notes that the UK is still subject to most EU rules, including EU rules on state aid, during the transition period and that the European Commission has approved three UK state aid schemes under the temporary framework on state aid, which were adopted on 19 March 2020 in response to Covid-19. However, the UK can no longer take part in the EU’s decision-making and legislative processes in the same way as EU member states. It also notes that the Trade Justice Movement (a UK coalition of nearly 60 civil society organisations) wrote to the Government in late March 2020 asking it to delay the start of trade negotiations with the US. It also notes that there is no statutory role for Parliament in deciding whether there should be an extension to the transition period. If an extension were to happen then further legislation would be needed to remove the statutory ban on UK ministers agreeing to it.

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House of Commons European Scrutiny Committee publishes report on coronavirus implications on Brexit

The House of Commons European Scrutiny Committee has published a report which summarises the EU’s policy and legal measures adopted in response to the coronavirus pandemic, and assesses their implications for the UK in light of Brexit. The Committee expects the Government to explain which of the EU’s policy measures adopted in response to coronavirus are applicable to, or will be applied by, the UK, and to provide an assessment of their expected impact on the UK. For example, under the UK-EU withdrawal agreement, the UK remains eligible to be awarded EU funds until the end of 2020 and it is noted that the EU are accelerating the release of €29 billion of direct financial support from the EU’s structural funds to help affected countries and businesses. The report notes that the current crisis has highlighted difficulties with the post-Brexit transitional arrangements, which give the UK no formal say in shaping new EU law. Important policy decisions that affect the UK directly, such as the European Commission’s new temporary framework for state aid measures, are being made in Brussels at speed, but without formal UK input. The report also notes the Government’s approach to co-operation with the EU in emergency situations after the end of the transition period under the future UK-EU relationship, and in particular its apparent decision not to seek UK involvement in EU systems deployed during the pandemic, such as the EU’s Civil Protection Mechanism, or its Early Warning and Response System (EWRS) for pandemics. The Committee asks the Government to explain whether the Government was sighted of the draft temporary framework for state aid measures when it was circulated to the EU member states, and to clarify whether its views were taken in account when the temporary framework was finalised and also to provide an update on its assessment of the costs and benefits with respect to continued UK participation in the EU’s Civil Protection Mechanism and EWRS after the end of the transition period, and to clarify what form of formalised co-operation it is seeking with the EU on health security more generally.

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Commercial

Government announces support for charities

Chancellor Rishi Sunak has announced that the government is providing a £750 million funding package for charities to ensure they can continue their vital work during the coronavirus outbreak. £360 million will be directly allocated by government departments to charities in the form of cash grants, providing key services and supporting vulnerable people during the crisis. This includes £200 million to hospices to help increase capacity and give stability to the sector. The remaining amount will be allocated to St Johns Ambulance to support the NHS, victims charities, including domestic abuse, vulnerable children charities, disabled people and the Citizens Advice Bureau. A further £370 million will be available for small and medium-sized charities, provided by organisations including the National Lottery Community Fund for those in England, to support those organisations at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice. Mr Sunak also confirmed that the government will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser on 23 April – pledging a minimum of £20 million. He also reminded charities that they can take advantage of existing measures the government has already put in place including deferring their VAT bills, paying no business rates for their shops next year and furloughing staff where possible with the Government paying 80% of their wages under the Coronavirus Job Retention Scheme.

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HM Treasury announces funding for NHS and councils

HM Treasury has announced that more than £14 billion from the Coronavirus Emergency Response Fund will go towards public services, including the NHS and councils. Councils will receive £1.6 billion of new funding and £6.6 billion will be provided to health services. Chancellor of the Exchequer, Rishi Sunak, said “Our public services and its incredible workers are working with immense resolve and skill to keep us safe. We depend on them, which is why we are doing everything we can to provide our NHS, local authorities and others, with the resources and tools they need to tackle the virus. From the start, I’ve been clear our vital public services will get whatever they need to protect this country and its people from Coronavirus. We are delivering on our pledge.” The remaining funding will be provided to cover food packages for vulnerable people, to ensure vital rail services continue to run and £2 billion for Scotland, Wales and Northern Ireland through the Barnett formula.

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IFS says councils may not receive fair share of coronavirus funding

Following the HM Treasury announcement that councils will receive £1.6 billion of funding to deal with the coronavirus pandemic, the Institute of Fiscal Studies (IFS) has said that councils may not receive a fair share of that funding as allocation will be based on out of date spending assessments from 2013-14 and doesn’t take into account the number of confirmed coronavirus cases. IFS associate director, David Phillips, said “Rather than try to allocate all of the funding in advance, it [the Government] could loosen the rules to allow councils to borrow to fund day-to-day spending linked to the coronavirus pandemic, allowing them to respond rapidly in a manner they see fit. The Government could then reimburse councils at a later date once it has a better idea of what the impact of the coronavirus has been in different parts of the country and is able to apply proper financial safeguards.” Chartered Institute of Public Finance and Accountancy (CIPFA) local government policy manager, Joanne Pitt said “it is important that the sector remains confident it will be fully reimbursed for crisis-related spend.”

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Government announces new measures to help councils

The Government has announced new measures to help councils deal with financial pressures caused by the coronavirus pandemic. Councils will be able to defer £2.6 billion in business rates to central government over the next 3 months as part of the business rates retention scheme and the Government will bring forward care grant payments to councils worth £850 million for both children and adults which will now be paid this month rather than monthly in April, May and June. Local Government Secretary Rt Hon Robert Jenrick MP said “I am determined councils get the support they need which is why I am taking action to ease some of the immediate financial pressures they face in responding to coronavirus, helping to protect the NHS and save lives.”

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Regulatory

LGA calls for academy conversions to be suspended

The Local Government Association (LGA) is calling on the Government to suspend academy conversions to allow councils to focus on supporting schools and nurseries to stay open for vulnerable children and the children of key workers. There are currently 594 academy conversions in the pipeline and the academisation includes a legal requirement to re-negotiate contracts with suppliers, which goes against the Government’s current advice that schools continue to pay suppliers during the coronavirus crisis, and if a school has a deficit when it converts, the council has to pick up the bill. Cllr Judith Blake, Chair of the LGA’s Children and Young People Board, said “Council staff are working flat out at reduced capacity, and taking council teams away from their primary duty of care to see through applications for academy conversions is clearly not in the interest of either councils or schools during this unprecedented time. We want to work with the Government to ensure that schools are given the support they need over the immediate term, and this includes urgently placing a temporary pause on academy conversions during this time.”

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Data on public rights of way needed from councils

Councils are being asked to provide information on how coronavirus has affected public rights of way in their areas. Councils will receive an emailed survey which they are being urged to complete in order to identify if there is any tension between landowners and the public, how cutbacks are affecting maintenance and enforcement work, and what impact staff shortages and redeployment are having. The survey is being done in partnership between the Association of Directors of Environment, Economy, Planning and Transport (ADEPT) and the Institute of Public Rights of Way and Access Management, maintenance and enforcement work, and what impact staff shortages and redeployment are having. Paul Newark, chair of ADEPT’s Rights of Way Managers Group said “We want to see what impacts the current pandemic have had to maintenance and get a picture of what that will mean for the network over the longer term as an inevitable backlog of work builds up.”

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Planning and housing

New temporary permitted development right comes into force

The Town and Country Planning (General Permitted Development) (Coronavirus) (England) (Amendment) Order 2020 (SI 2020/412) (GPDAO 2020) came into force on 9 April under which Article 2 of the GPDAO 2020 amends Schedule 2 to the Town and Country Planning (General Permitted Development) (England) Order 2015 (SI 2015/596) by inserting a new Part 12A (Development by Local Authorities and Health Service Bodies). This allows for temporary permitted development to allow councils and prescribed health service bodies to carry out certain emergency development on land owned, leased, occupied or maintained by them without the need to obtain express planning permission. The development permitted is development for the purposes of preventing an emergency, reducing, controlling or mitigating the effects of an emergency or taking other action in connection with an emergency. An emergency for this purpose means an event or situation which threatens serious damage to human welfare in a place in the United Kingdom. This permitted development right is subject to a number of limitations which include that any use of the land for these purposes must cease on or before 31 December 2020.

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Homes England acquires 19 sites for new homes

Homes England has announced that over the past year it has acquired 19 sites worth £180 million which will provide the capacity to build 5,000 new homes in England.  Simon Dudley, interim Homes England Chair, said “I want to reassure the sector that Homes England is very much open for business and investing in a long-term pipeline of development opportunities to support market recovery. The need for new housing will remain a priority, so we will continue to do business with partners across the sector to create opportunities for future development and support the government’s housebuilding objectives.” Homes England has acquired the sites which have been challenging or stalled due to the coronavirus pandemic so it can unlock them for development and bring them back to market to provide new homes and to develop a strong pipeline of projects to support the recovery of the housebuilding sector. Stephen Kinsella, Chief Land and Development Officer at Homes England, said “In the long-term we will still have a housing shortage, so by continuing to acquire difficult sites and addressing the barriers which have previously stopped them moving into production, we’re making sure we can deliver on the agency’s mission to accelerate the construction of new homes while addressing the short-term disruption caused by the impact of coronavirus.”

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