Local Authority round-up 15/11/19

Brexit

Fact check on claims over EU tax rules and Brexit timing

The past year has seen a growing number of claims that the recent anti-European shift is a result of new tax rules to come into force within the European Union. The legislation in question is the EU’s Anti-Tax Avoidance Directive (ATAD), which attempts to ensure big digital companies and other multinationals pay enough tax. However, this week a report by the BBC clarified that the rules of the ATAD are already part of UK law. The report concedes that a small number of the rules will not come into effect until 1 January 2020, however this implementation would occur regardless of the UK’s European membership.

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Brexit uncertainty “too risky” to place Tesla plant in UK

Tesla’s chief executive, Elon Musk, has announced that Berlin will be the site of its first major European factory as part of the carmaker’s expansion plan. Mr Musk chose Germany ahead of the UK for its first Tesla factory due to Brexit uncertainty. The chief executive told Auto Express that “Brexit [uncertainty] made it too risky to put a gigafactory in the UK.” Berlin will host Tesla’s research and development base, with Mr Musk explaining his choice that “Everyone knows that German engineering is outstanding and that’s part of the reason we are locating our gigafactory Europe in Germany.” The announcement comes after Mr Musk told the trade publication in 2014 that he wanted to build a plant in the UK.

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Commercial

Research finds councils need billions of extra funding

Figures released by the Institute for Fiscal Studies (IFS) has found that council’s incomes will be at least 20% below 2009/10 levels and that they need billions of pounds of extra funding in the next parliament in order to meet the rising costs of adult social care.  According to IFS calculations, whether council tax was raised by 2% annually (inflation) or even double the rate of inflation, councils would still need billions of pounds more a year.  For example, if it was double the rate of inflation, councils would still need a further £1.6 billion a year in funding by 2024-25, growing to £4.7 billion by 2029-30 and £8.7 billion by 2033-35.  The IFS suggests that the funding gap could be solved by handing councils powers in relation to local income tax or through additional grant funding from Westminster.

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Technology firm to support digital transformation of legal sector with £2m in funding

Tech Nation has been awarded a £2m government fund. The Ministry of Justice announced that the fund was to “help support the digital transformation of the UK’s legal sector”. The support is aimed at “encouraging investment and innovation, ensuring understanding, awareness and use of lawtech, exploring ethics and regulation around technology in the legal sector” explained the Ministry of Justice. Tech Nation is now responsible for building on the work of the LawTech Delivery Panel, established in 2018. The funding for lawtech has grown rapidly in the last five years from £1.5m in 2014 to £62m as of October this year.

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Flood-hit areas to receive £500 per affected house

The Community Recovery Grant Scheme will provide councils in flood-hit areas £500 for every affected house to aid recovery of towns. The funding comes after a meeting of the Cobra emergency committee chaired by the Prime Minister. The Department for Business, Energy and Industrial Strategy will provide funding for business recovery grants. The grants will add up to £2,500 for each small to medium sized business that has suffered ‘severe impacts’ from floods which are not covered on insurance. The Prime Minister said, “The recent flooding has had a devastating effect on people and businesses, and it’s essential that our communities have the support they need to recover.”

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Regulatory

Council secures enforcement order under the Enterprise Act 2002

Gateshead Council applied to the UK’s Competition and Markets Authority for permission to apply for an urgent court order against a director and his companies, ASC Home Improvements Ltd and Aspire UK Home Improvements Ltd, after the home improvement companies were subject to more than a hundred complaints from the public.  The council was successfully granted the enforcement order which the director in question signed an undertaking to the court lasting two years under which they are prohibited from breaching various pieces of legislation as listed. If the order or undertakings are breached then he will be found to be in contempt of court.

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Information watchdog could be granted investigation and other powers under POCA

The Information Commissioner has launched a consultation on her office gaining access to investigatory and other powers under the Proceeds of Crime Act 2002 (POCA). The ICO has stated “Personal data has a monetary value and is increasingly being recognised and treated as a commodity which is stolen and traded for financial gain.” The information watchdog conceded that courts can make POCA confiscation orders against convicted individuals for payment to the state, which matches the value of their benefit to the crime. The POCA investigation and the associated powers would allow the ICO to aid the court in identification of assets and their value in the criminal proceeds. The watchdog announced “Access to information relevant to the investigation of money laundering offences is being sought to enable the ICO to respond to the changing nature of criminal activity involving the misuse of personal data, and to engage with other law enforcement agencies more effectively in cases which may involve offences of money laundering.”

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Planning and housing

Council commits to build or buy 1,000 social homes

Nottingham City Council has signed off the council’s plan for 2019-2023 which commits the council to building or buying 1,000 council or social homes for rent as well as creating 15,000 jobs in the city.  The plan sets out the council’s aims for the next four years of which these plans form a part together with other plans including to build ‘the best children’s library in the UK’ and ensure Nottingham is ‘the cleanest big city in England.’  Council leader David Mellen said “Nottingham will be a thriving, sustainable city both socially and economically. We will work with our partners and communities to ensure vulnerable citizens are supported to live independently and are safe from harm.”

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Planning inspector went ‘beyond her powers’ in planning permission case

The Court of Appeal has ruled that a planning inspector has exceeded her powers under section 73 of the Town and Country Planning Act 1990. The case was brought over the permitted height of turbines at a site in Rhydcwmerau, Carmarthenshire. Carmarthenshire County Council had provided planning consent to Energiekontor for two wind turbines, with 22 conditions. One of the conditions was that the development was to be carried out in accordance with approved plans and documents. Energiekontor later applied under section 73 of the 1990 Act for the removal or variation of this condition, to allow for a turbine of 125 meters to be built. On the council’s refusal they applied to the Welsh Ministers, whose inspector allowed the appeal. The inspector submitted that section 73 enabled developers to refine schemes once they knew more of what was financially or physically viable. Lord Justice Lewison rejected this, and said that the question was of statutory interpretation “A condition altering the nature of what was permitted would have been unlawful. That, no doubt, was why the inspector changed the description of the permitted development. But in my judgment that change was outside the power conferred by section 73.”

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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

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.

Thursday 21st November (Newcastle)

HR and employment law update

Hear from Ward Hadaway’s employment specialists who will ensure that you are kept up-to-date with the latest developments in employment law.

Thursday 28th November (Middlesbrough)

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