Local Authority round-up 09/08/19

Brexit

Former trade adviser to Donald Trump says Brexit panic “not justified”

Steven Vaughn, a former top trade adviser to the US president has stressed that the UK has “enormous leverage” in a potential trade deal with the US. He also commented that the current US Trade Representative had already done all the preparations needed for a potential deal with the UK although he did acknowledge that agreeing a deal could take “months or years.” A key export for the US is agricultural products, but the fact farming methods in the US don’t fall under the EU regulations has led some to worry about food standards but Mr Vaughn has said that the US would like a deal to involve the expansion of farm exports, and he doesn’t think its “something people should be afraid of.”

For more information please click here.

Jeremy Corbyn urges the UK’s most senior civil servant to prevent a no-deal Brexit

Jeremy Corbyn has written to Cabinet Secretary Sir Mark Sedwill saying that leaving the EU on 31 October while a general election campaign is ongoing and before a new government is elected wold be an “anti-democratic abuse of power.” Election rules say Parliament should be dissolved 25 working days before polling day meaning a no-deal Brexit could  happen whilst MPs are not sitting. His letter comes amid speculation that MPs will table a no-confidence motion in the Prime Minister and Mr Corbyn has said his party would propose a no-confidence vote at an “appropriate” time after the Commons returned from its summer recess on 3 September. However, the Prime Minister’s senior adviser, Dominic Cummings has reportedly told MPs that losing a no-confidence vote would not stop the Prime Minister taking the UK out of the EU by the October 31 deadline.

For more information please click here.

No-deal fund for companies receives low take-up

Last year the Treasury and Revenue & Customs announced an £8m training fund to which companies could apply, to help prepare for a no-deal scenario. It is estimated that there are about 240,000 UK businesses that trade with the EU, of which just 741 have applied for the grant, a figure that the director of policy at the British Chambers of Commerce has called “concerning.” The funding aims to support employee training and IT improvements to complete customs declarations, in the event of a no-deal. The Head of EU negotiations at the Confederation of British Industry has said the reason the take-up is so low is because “the Government [has] failed to adequately publicise the scheme.”

For more information please click here.

UK Food Industry wants Government to waive aspects of competition law

Competition law rules prohibit suppliers and retailers from co-ordinating, amongst other things, supply or pricing, but, the UK food industry has asked the Government to consider waiving aspects of competition law in order to allow firms to co-ordinate and direct supplies with each other in the event of a no-deal Brexit. The boss of one leading retailer commented that there could be scenarios where retail bosses and the Government need to decide where lorries go to keep the food supply chain going, meaning retailers would have to work with competitors and therefore a suspension of competition law would be needed. The Food and Drink Federation’s chief operating officer has said it would be happy to help retailers, but due to fines of up to 10% of turnover that the CMA can impose for anti-competitive behaviour, it would need “some pretty cast iron reassurances” if it was to help businesses.

For more information please click here.

UK music industry could suffer in the event of a no-deal Brexit

The BPI, the organisation that represents the UK’s music industry has said that a no-deal Brexit could make life “very difficult” for the UK music industry as it believes copyright laws “might be thrown in the air.” The BPI is also concerned about the ability of musicians to tour overseas as a no-deal Brexit could mean uncertainty over work permits, delays at European borders and complications with moving instruments across the continent. The BPI is petitioning the Government “to ensure people can work and freely move abroad in the EEA area without visas for 90 days within any 180 day period, so they can tour and work abroad.”

For more information please click here.

Dairy cows in Northern Ireland could be culled in the event of a no-deal Brexit

Senior industry figures have warned that approximately 45,000 cows could be culled in Northern Ireland, in the event of a no-deal Brexit if higher tariffs are applied to British milk. About a third of Northern Ireland’s dairy output is processed in the Republic of Ireland, which would continue to be part of the EU, leaving Northern Ireland particularly vulnerable. Northern Ireland producers are concerned that if no agreement is reached and trading relationships with the Republic of Ireland become difficult, the country will be left with a glut of milk that it will not be able to process of sell. An industry insider commented that a no-deal Brexit could mean “hundreds of thousands of litres of milk going to waste, and then the farmers would have no choice but to reduce their herds.”

For more information please click here.

The EU refusing to negotiate a new Brexit deal, says Gove

Michael Gove has commented that he was “deeply saddened” that the EU seem to be refusing to renegotiate a Brexit deal. His comments come after EU negotiators told European diplomats that there was currently no basis for “meaningful discussions” and talks were back where they were three years ago. Mr Gove said that the EU’s reluctance to negotiate is “not in Europe’s interests.”

For more information please click here.

Politicians begin legal action to prevent the PM shutting down Parliament

In a bid to prevent Boris Johnson from shutting down parliament to force through a no-deal Brexit, a group of 24 parliamentarians have started legal action by lodging legal papers at the Court of Session in Edinburgh. It is understood that the group have instructed the same legal team that won a victory at the European Court of Justice last year over whether the UK could unilaterally cancel Brexit by revoking Article 50. The case could be heard within the next month.

For more information please click here.

Former US Treasury Secretary says UK is “too desperate” to secure US trade deal

Larry Summers, the former US Treasury Secretary, has said that he does not believe a “desperate” UK would manage to secure a post-Brexit trade deal. He thinks the UK is in a weak position when it comes to negotiating with trade partners, commenting that Britain “has no leverage” and saying that “Britain has much less to give than Europe as a whole did, therefore less reason for the US to make concessions.” Summers’ comments came after the UK’s foreign secretary Dominic Raab headed to Canada, the US and Mexico to begin talks about trading relationships.

For more information please click here.

Government urged to reveal its no-deal Brexit plans to the public

Following a series of leaks revealing the impact a no-deal would have on the country, Professor Tim Lang of the University of London’s Centre for Food Policy has called on the Government to make public its planning assumptions for disruptions to food supply caused by a no-deal Brexit. His comments follow the Government’s announcement of the launch of a £138m ‘Prepare for Brexit’ campaign. Professor Lang questioned whether or not this campaign would share the Government’s predictions for what would happen within a day of a no-deal Brexit. Professor Lang believes the “UK Government’s rationale for food secrecy is fear of panic-buying, to which just-in-time delivery systems are vulnerable.”

For more information please click here.

Boris Johnson to inject £1.8bn into the NHS

The new Prime Minister has promised a cash boost for the NHS, yet experts are doubtful that the £1.8bn fund is enough to cover the upgrades Mr Johnson has already promised. The boost in health funding is part of an attempt to build a domestic agenda beyond Brexit. The money is set to be made available immediately, though the sources of the fund have not been revealed. A senior policy analyst at Nuffield Trust has commented that “based on the conservative £160m cost estimate per trust, the total cost for upgrading all NHS services would be around £33bn.” She went on to say that “there have been calls to double the NHS budget for NHS investment – including from the NHS’s own regulator NHS Improvement. That would take investment to around £14bn next year.”

For more information please click here.

Commercial

£20m funding for councils to prepare for delivering Brexit

The Communities and Local Government Secretary, Rt Hon Robert Jenrick, committed £20 million for councils across England for vital preparations for delivering Brexit on 31 October. The funding will allow councils to make sure their residents are ready for Brexit and will also support a range of activity including communications, training and the recruitment of staff. In order to ensure councils are prepared to leave the EU, Mr Jenrick has asked every council to appoint a Brexit lead to work with government in order for “central and local government to be fully prepared to leave the EU on 31 October whatever the circumstances.”

For more information please click here.

A new study says the Government should develop a £10bn national regeneration strategy

A recommendation that the Government should develop a £10bn ‘national regeneration strategy’ to help boost towns and cities across the North and Midlands has been made by the Great Places Commission. The report urges the Government to give councils a sustainable future funding settlement that would help them rebuild their capacity and skills, allowing them to lead placemaking. The head of member relations at the National Housing Federation commented that “the Government need to invest in regeneration to start bringing the country back together and support communities to thrive.”

For more information please click here.

Scottish council warned by auditors to curb expenditure

Audit Scotland found Moray Council is facing funding gaps of £12m in 2020/21 and £7.1m in 2021/22. It also found that education and children’s services account for nearly half of its net expenditure and despite the council putting in place an improvement and modernisation programme to transform the two service areas, progress has been slow. The report by Audit Scotland found that the council’s “members have limited time to make the difficult decisions required to achieve financial sustainability before available reserves run out.” The council has also used reserves to fund additional staff costs to complete a review of corporate buildings by the end of March 2020 in the hope of realising recurring savings of £200,000 in revenue and £25,000 in capital funds.

For more information please click here.

Regulatory

Police investigating a leak of council documents

Council documents which reveal plans by Scarborough Borough Council to borrow £22 million to fund a regeneration scheme have been leaked, and the incident has now been referred to police as it could amount to misconduct in public office. The leak detailed plans to build 200 student flats and a public square in the town centre with £22 million in borrowed funds. Scarborough’s Legal Director has suggested that the council could incur fines due to breach of GDPR. The Legal Director added that the council “takes breaches seriously” and hoped their stance would “send a message.”

For more information please click here.

London Borough of Barnet uses ‘completion notice’ to tackle issues with a structure on a site

The London Borough is one of the first councils to use a completion notice to tackle issues with a structure on a site. The notice was served after it became apparent that the development would not be finished within a reasonable timescale. The effect of the notice is that the owners have until June 2020 to finish the work otherwise the planning permission could be invalidated and they could be forced to demolish the building. The Chairman of Barnet Council’s Planning Committee said that he “hopes this serves as a warning to others about the importance of acting responsibly.”

For more information please click here.

Council criticised by Ombudsman after child left with no proper education

A 10 year old girl was taken out of school as she was suffering from anxiety. During the 9 months she was out of school she received very little education, and her mother had to fund an alternative education placement. The Ombudsman’s investigation found that the council did not have a policy in place for children missing education because of ill health, and it was also found to have failed to maintain oversight of the targeted support clusters (local groups set up to oversee the council’s duties to children out of school). The council has agreed to pay the mother £2,700 to cover the cost of the child’s education over the 9 month period and for failing to assess the child’s needs and provide education during the period. The Local Government and Social Care Ombudsman commented that “councils have a legal duty to provide suitable alternative provision for children and young people who are missing education for whatever reason.”

For more information please click here.

Planning and housing

Brentwood Borough and Morgan Sindall sign £1bn joint venture

The Brentwood Development Partnership will deliver a programme of developments over the next 30 years through a £1bn joint venture with Morgan Sindall including new homes, public spaces and local facilities in Essex. The leader of the council commented that this is “a real opportunity to allow the community to thrive and grow, and by redeveloping the borough over the longer-term we will be helping to improve the lives of people living and working here.”

For more information please click here.

Wales to develop thousands of new council homes by 2040

As part of a development vision for Wales, the Welsh Government is aiming to develop thousands of new council homes by 2040, as well as creating more jobs and services. Housing Minister Julie James commented that she was committed to building more council housing “at pace and scale.” Key points in the development vision include: an extra 114,000 homes over the next 20 years, including 3,900 affordable or council homes a year, as well as urban development “clusters” around Cardiff, Newport and the Valleys.

For more information please click here.

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.

NHS Estates Forum

Join us at a free half-day forum where experts will discuss some of the key strategic issues impacting on Estates currently. We are running the forum jointly with NHS England and NHS Improvement, Audit One (a leading not-for-profit provider of internal audit) and North Tees and Hartlepool Solutions LLP.

Thursday 5th September (Leeds)

Tuesday 10th September (Newcastle)

Housing Management Law School – Autumn Term 2019

Join us at the next Ward Hadaway Housing Management Law School taking place this Autumn. Autumn term will bring with it a brand new programme where our social housing experts will update you on the most recent news and topics that you need to know about from both a legal and practical perspective.

Wednesday 9th October (Newcastle)

Thursday 10th October (Leeds)

Thursday 17th October (Manchester)

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