Local Authority round-up 11/09/20

Brexit

Deadline of 15 October 2020 for Brexit deal, says PM

On 7 September 2020, the Prime Minister Boris Johnson gave a short statement ahead of the eighth round of negotiations on the future UK-EU relationship starting on 8 September 2020, in which he said that there needs to be an agreement by the time of the European Council meeting on 15 October 2020, if it is to be in force by the end of 2020. He said that if an agreement is not reached by then, then both sides “should both accept that and move on”, and that there would then be a “trading arrangement with the EU like Australia’s.” He said that there was still time for an agreement to be put in place but that “we cannot and will not compromise on the fundamentals of what it means to be an independent country to get it.”

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Internal Markets Bill

On Monday, the Government introduced the Internal Markets Bill. The new bill sets out rules for the operation of the UK internal market – trade between England, Scotland, Wales and Northern Ireland – after the end of the Brexit transition period in January. It proposes that there be no new checks on goods moving from Northern Ireland to the rest of Great Britain and gives UK ministers powers to modify or “disapply” rules relating to the movement of goods that will come into force from 1 January if the UK and EU are unable to reach an alternative agreement through a trade deal. It also provides powers to override previously agreed obligations on state aid. The bill explicitly states that these powers should apply even if they are incompatible with international law. Despite facing a basklash of criticism over the Internal Markets Bill, Prime Minister Boris Johnson is urging MPs to support the bill. Mr Johnson said that the bill would “ensure the integrity of the UK internal market” and hand power to Scotland and Wales.

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Internal Markets Bill breaks international law

Northern Ireland Secretary Brandon Lewis has said that the UK Internal Market Bill which will amend the UK’s Brexit deal with the EU will “break international law in a very specific and limited way.” The Government introduced the bill on Monday which will affect post-Brexit customs and trade rules in Northern Ireland but Downing Street said that it would only make “minor clarifications in extremely specific areas.” However, the Government are facing criticism that it is an attempt to change the withdrawal agreement which became international law when the UK left the EU in January. Irish Foreign Affairs Minister, Simon Coveney, said “Any unilateral departure from the terms of the withdrawal agreement would be a matter of considerable concern and a very serious step.” Former PM Theresa May warned the change could damage “trust” in the UK over future trade deals with other states. The European Commission had requested a meeting as soon as possible to clarify what the legislation means for the Brexit deal.

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EU threatens legal action over Internal Markets Bill

Following emergency talks between Cabinet Office Secretary Michael Gove and European Commission Vice-President Maros Sefcovic, after it was revealed that the Internal Markets Bill will breach international law, by amending the withdrawal agreement, the EU has threatened the UK with legal action if it goes ahead with the bill. The EU said the bill “seriously damaged trust between the EU and the UK” and EU Commission Vice-President Maroš Šefčovič stated that if the bill were to be adopted, it would constitute an extremely serious violation of the withdrawal agreement and of international law. He urged the Government to withdraw the bill “by the end of the month” and “reminded the UK Government that the withdrawal agreement contains a number of mechanisms and legal remedies to address violations of the legal obligations contained in the text – which the European Union will not be shy in using”. Boris Johnson continues to defend the bill and the UK Government said its Parliament is sovereign and can pass laws which breach the UK’s treaty obligations.

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Commercial

Government announces business funding for local lockdowns

Businesses in England that are forced to shut because of local interventions will now be able to claim up to £1,500 per property every three weeks. The chief secretary to the Treasury Steve Barclay told MPs yesterday that the scheme will be introduced to provide a ‘safety net’ for businesses affected by lockdown measures. To be eligible for the grant, a business must have been required to close due to local coronavirus restrictions. The largest businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000. Mr Barclay said “These grants provide businesses with a safety net as they temporarily close their doors to help save lives in their local areas. As local economies eventually and carefully re-open after local interventions, our Plan for Jobs is there waiting to help businesses get back on their feet, protect jobs and thrive in the future.” Business secretary Alok Sharma said “No business should be punished for doing the right thing, which is why today’s package will offer additional breathing space for businesses that have had to temporarily close to control the virus. Through our wider Plan for Jobs, we will continue to back our innovators and job creators across the country who are playing a critical role as we build back better from the pandemic.”

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Scottish councils to receive £30 million investment

The Scottish government has announced that Scotland’s council’s will receive £30 million of new investment for regeneration and town centres under the Regeneration Capital Grant Fund and the Town Centre Fund. The funding will be available immediately and will be delivered by COSLA in partnership with the Scottish government. COSLA Environment and Economy Spokesperson Cllr Steven Heddle said ” This additional funding for the Regeneration Capital Grant Fund and Town Centre Fund will support the regeneration aspirations of our communities, and also accelerate the delivery of projects to support the recovery, tackle disadvantage and deprivation and support jobs.”

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Regulatory

Councils will not receive funding for COVID marshals

Boris Johnson announced this week that COVID marshals will enforce new rules which come into force on Monday. Under the new rules, which will be legally enforceable, premises will be legally required to collect contact details of customers so they can be reached in the event of a local outbreak and councils will have powers to take action when rules are not being adhered to. Mr Johnson said the government would “boost the enforcement capacity of local authorities by introducing Covid secure marshals to help ensure social distancing in town and city centres.” However, a spokesperson for the Ministry of Housing, Communities & Local Government said councils would “not receive specific funding for marshals” and that “matters of numbers, recruitment and remuneration will be for them to decide.”

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Planning and housing

Funding to unlock surplus land for housing

The Government has announced a £30 million fund to help release surplus public sector land for new housing. Councils will be able to bid for £20 million from the Land Release Fund for remediation works and infrastructure to bring their surplus sites forward for housing. An extra £10 million will be provided through the One Public Estate programme to support the earliest stages of development. Cabinet Office minister, Lord Agnew, said “By taking a fresh look at how we use buildings and release surplus public property and land, the One Public Estate programme has helped to create thousands of new homes and jobs and breathed new life into communities.” Housing minister, Christopher Pincher, added “This new funding will help councils right across England to turn unloved, unused land into new homes and communities where they are needed most. It is an important part of how we are working with local government and the housing industry at every level to support our recovery from the impact of the pandemic.” The additional funding has been welcomed by the Local Government Association who said it would enable councils to make better use of their assets.

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Council chiefs welcome affordable housing fund

Council leaders have welcomed the Government’s affordable housing funding announcement, but called for more powers to deliver social homes in their local areas. The £12.2 billion investment in affordable housing was confirmed at Budget, which also includes £700 million on new homes through the 2016 to 2022 programme. A new £11.5 billion Affordable Homes Programme will be delivered over five years from 2021 to 2026, providing up to 180,000 new homes across the country. The Government argues that the programme will unlock a further £38 billion in public and private investment in affordable housing, with new homes being made available from next year. Housing secretary Robert Jenrick, who announced the funding, said that around half of the new homes will be available for affordable home ownership. The rest will be made available for discounted rent, including 10% for supported housing. He said “Today’s announcement represents the highest single funding commitment to affordable housing in a decade and is part of our comprehensive plans to build back better. This Government is helping hard-working families and prospective first-time buyers get their feet on the housing ladder in an affordable way.” Cllr David Renard, the Local Government Association housing spokesperson, welcomed the announcement but called for more ‘powers and tools’ to help councils deliver social housing. He said “we are calling for councils to be given the powers and tools to deliver a programme of 100,000 social homes a year, which would not only meet a third of the Government’s housing target, but reduce homelessness, get rough sleepers off the streets and support people’s wellbeing. This includes reforming Right to Buy and allowing councils to keep receipts in full and set discounts locally. In addition, we would like to see the programme go further and allow councils to combine Right to Buy receipts with funding from the programme to deliver more housing.”

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