Local Authority round-up 17/07/20

Brexit

£705 million funding package in 20/21 for border infrastructure

The Government has announced a £705 million funding package for border infrastructure, jobs and technology at the GB-EU border to ensure GB border systems are fully operational when the UK takes back control of its border after the end of the transition period. The funding includes £470 million to build infrastructure such as border control posts and £235 million which be allocated for IT systems and staffing to include 500 more Border Force personnel to ensure our borders are safe and secure and that the UK is ready to take full advantage of its newly sovereign status. Michael Gove said “With or without further agreement with the EU, this £705 million will ensure that the necessary infrastructure, tech and border personnel are in place so that our traders and the border industry are able to manage the changes and seize the opportunities as we lay the foundations for the world’s most effective and secure border.”

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New Trade and Agriculture Commission

The Government has announced the new Trade and Agriculture Commission which will be chaired by food safety expert Tim Smith, a former Chief Executive of the Food Standards Agency and Tesco Group Technical Director. The commission will report directly to International Trade Secretary Liz Truss and will comprise members from retailers, farming unions, consumer, hospitality and environmental bodies from across the UK who will advise the Government on trade policies to adopt to secure opportunities for UK farmers, advancing and protecting British consumer interests and those of developing countries, how the UK engages the WTO to build a coalition that helps advance higher animal welfare standards across the world and developing a trade policy that identifies and opens up new export opportunities for the UK agricultural industry. George Eustice, Environment Secretary said “The Agriculture and Trade Commission will ensure that the UK’s agricultural industry, our support for farmers and our commitment to high welfare standards are maintained. This Government will work hard to ensure any future trade deals are in their best interests and will prioritise both food production and our world-leading environmental targets.”

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Border Operating Model published

The Government has published the Border Operating Model which provides clarity and certainty for the border industry and businesses, including technical detail on how the border with the European Union will work after the transition period and the actions that traders, hauliers, ports and carriers need to take. This will include getting a customs intermediary which can help traders find the information needed to complete formalities and submit the required declarations, for example customs information to HMRC systems.  Businesses can also need to apply for a duty deferment account which will benefit those who import goods regularly as they will be able to charge customs duty, excise duty and import VAT to the accounts which will be paid once a month through Direct Debit instead of being paid on individual consignments. Businesses will also need to prepare to pay or account for VAT on imported goods and ensure they have International Driving Permits. All businesses will also be required to apply for and hold a GB Economic Operator Registration and Identification number. The Border Operating Model will lay the groundwork in support of the Government’s objective to have the world’s most effective border by 2025.

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UK’s points-based immigration system

The Home Office has released further detail on the UK’s future immigration system which will come into effect from 1 January 2021. This will give employers the time to prepare and the new immigration system will be implemented in phases to ensure smooth delivery. The new system operates on a points basis for those applying via the skilled worker route, where they accrue points by meeting a number of relevant criteria, such as have a job offer at the appropriate skill level, the ability to speak English and meeting the salary threshold. The skills threshold for skilled workers has been expanded so that an applicant’s job must be at the minimum skill level of A-level or equivalent, rather than degree level under the current system. The new system also offers other simplified routes via a new Health and Care Visa for key health professionals which will make it easier and cheaper for health professionals to work in the UK and a new graduate route opening in Summer 2021 which will allow international students to stay in the UK once they have successfully completed their studies. Students who have completed undergraduate and master’s degrees will be able to stay for 2 years and those who have completed PhD can stay for 3 years. Home Secretary, Priti Patel said “Now we have left the EU, we are free to unleash this country’s full potential and implement the changes we need to restore trust in the immigration system and deliver a new fairer, firmer, skills-led system from 1 January 2021. Britain is open for business and ready to welcome the best and brightest global talent.”

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We have recently launched a dedicated visa guidelines hub which is full of clear, useful guidance to help those wishing to live, work and recruit into the UK navigate the complex legal territory that is immigration law. You can visit the site by clicking here.

Commercial

Unallocated money could be lost warns LGA

The Local Government Association (LGA) has warned that more than £730 million in vital EU cash which could help local communities bounce back from coronavirus pandemic risks going unspent and being sent back to Brussels if the funding is not allocated by the Government before the end of the year. It is therefore calling on the Government to urgently work with councils and combined authorities to ensure the remaining money is distributed and used effectively to provide support for employment, skills and training for which the funding is allocated.  Cllr Kevin Bentley, Chairman of the LGA’s EU Exit Taskforce, said “The Government needs to make sure the remainder of this fund reaches the local communities that need it desperately following the devastating economic impact of COVID-19. Councils and combined authorities are ready to work with Government to make sure that local residents and economies can reap the benefits of this funding.”

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Council plans cuts to cope with £49 million shortfall

Luton Borough Council is planning a major cut to services in order to save £22 million to avoid bankruptcy, it is facing a £49 million shortfall in its finances due to the coronavirus pandemic. The council has said that up to 365 jobs may be cut although they would scrap vacant posts and offer voluntary redundancies. They are also looking to stop the school meals service, reduce funding for highways maintenance, charge for green waste collection and reduce funding for social care and mental health support services. The council also said that they could also look to increase council taxes. Finance lead, Labour councillor Andy Malcolm said “The Government needs to provide more funding to local authorities for local services that people rely on because it’s not sufficient at the moment.”

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Regulatory

Bailiffs instructed to secure unpaid business rates

Following the coronavirus outbreak in March, the Government enforced a hold on bailiff’s enforcing the collection of outstanding business rates from troubled businesses after the lockdown commenced. However, since the Government announced that enforcement action could start again at the beginning of July, councils have now started instructing bailiffs to secure unpaid business rates from local retailers. Altus Group’s head of business rates Robert Hayton said “It beggars belief that councils are essentially undermining the Government’s effort to stimulate the economy and does nothing to help the recovery. It is hasty and unhelpful to indiscriminately enforce tax debts right at the moment that businesses are making the first tentative steps to return to the new normal. Councils must allow time for these businesses to return to profit or risk triggering a wave of otherwise unnecessary business failures undoing the Chancellor’s plan for jobs.”

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Planning and housing

New planning rules announced

Communities Secretary Robert Jenrick has announced changes to the planning system in order to protect theatres, concert halls and live music performance venues. The changes will come into force next week and will protect cultural institutions across England from being redeveloped or demolished as councils will now need to take the temporary impact of coronavirus into account when considering permission for change of use, redevelopment or demolition of a theatre, concert hall or live music performance venue. Jon Morgan, Director of the Theatres Trust, said “We welcome the news of revisions to the planning system, which reinforce and increase protections for our treasured theatres and provide reassurance for the communities that use and value them. The COVID-19 lockdown has rendered otherwise vibrant theatres vulnerable to permanent closure and we have already seen a number of theatres fall vacant due to the operator going into liquidation. These measures will help ensure these vital community assets are protected during the current crisis and can be revived to serve their local communities once again.” The policy will remain in place until 31 December 2022 and a written ministerial statement will be laid to outline the planning changes and will have immediate effect on the planning system.

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Planning laws relaxed to boost renewable energy

The Government has announced that it will be relaxing planning legislation to maximise the UK’s renewable energy storage by removing barriers for storage projects above 50 MW in England and 350 MW in Wales. The changes will make it easier to build large batteries to store renewable energy from solar and wind farms and could treble the number of batteries servicing the electricity grid, with more than 100 large-scale batteries being built. Minster for energy and clean growth, Kwasi Kwarteng, said “The key to capturing the full value of renewables is in ensuring homes and businesses can still be powered by green energy even when the sun is not shining, or the wind has stopped blowing. Removing barriers in the planning system will help us build bigger and more powerful batteries, creating more green-collar jobs and a smarter electricity network.”

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Court finds it unlawful for landlords to operate ‘no DSS’ policy

A judge has ruled that it is illegal for landlords to operate ‘no DSS’ policies that refuse letting to people claiming benefits. District Judge Mark ruled at York County Court saying “Rejecting tenancy applications because the applicant is in receipt of housing benefit was unlawfully indirectly discriminatory on the grounds of sex and disability, contrary to…the Equality Act 2010.” It was deemed contrary to sections 19 and 29 of the Act. The claim was brought by Housing charity Shelter, after they were contacted by a single mother of two children, after a letting agent refused to rent any properties to her because she receives housing benefit and who became homeless as a result. Shelter said the verdict was “a clear warning to other landlords and letting agents that they risk legal action if they continue to bar housing benefit tenants from renting.” Tessa Buchanan, barrister at Garden Court Chambers, said “This case is important because for the first time the court has declared that a ‘no DSS’ policy is unlawful on the grounds that it discriminates against women and disabled people. It should stand as a warning to other landlords and letting agents who have similar policies that they may be acting unlawfully.”

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