Local Authority round-up 18/02/19

Brexit

Government suffers fresh Brexit defeat in the Commons

The Government has failed to secure a motion endorsing its negotiating strategy after the pro-Brexit group, the ERG, abstained from voting on the matter due to the strategy appearing to rule out a no-deal outcome.  Commenting on the defeat, one former Minister explained: “Maybe, just maybe, the penny will now drop with the Prime Minister and her Chief Whip that the hardliners in the ERG want a no-deal Brexit and will stop at nothing to get it… Responsible MPs of all parties must come together on 27 and 29 March to stop them.”

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Theresa May promises meaningful vote

On 12 February, Theresa May promised MPs a final, decisive vote on her Brexit deal with the European Union, once she has secured changes to the Irish backstop clause. Mrs May said she needed “some time” to get the changes she believes MPs want. She also promised to update MPs again on 26 February and, if she had not secured a new deal by then, to give them a say on the next steps in non-binding votes.

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British Chamber of Commerce (BCC) publishes Brexit “critical unanswered questions”

With less than 50 days until exit day, the BCC has published a list of twenty critical questions that remain unanswered for businesses in the unwelcome event of the UK leaving the EU without a deal – from what trade agreements will be in place with countries around the globe, to whether and how firms can move skilled staff between the UK and EU, and which regulations they will need to follow. Many of the unanswered questions reflect fundamental aspects of how companies operate; for instance, the terms of the trade agreements can affect pricing decisions, margins, even choice of business location and the geography of supply chains.

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Proposed regulation to permit use of the Channel Tunnel by trains in a ‘no-deal’ scenario

On 12 February 2019, the European Commission proposed a new regulation which will permit trains to use the Channel Tunnel for three months if the UK leaves the EU without a deal. The planned regulation will give the UK and France time to renegotiate the terms under which the railway service operates, but is yet to be agreed by the European Parliament and EU member states. The text of the proposed regulation confirms it is “intended to ensure the continuity limited to cross-border operations and services,” warning that “an interruption in these activities would cause significant social and economic problems.”

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UK and Switzerland sign trade continuity agreement

On 11 February 2019, International Trade Secretary Dr Liam Fox MP, signed the UK-Switzerland agreement in Bern, with Swiss Federal Councillor Guy Parmelin. The agreement simplifies trade and allows businesses to continue trading freely, without any additional tariffs, and continues the elimination of duties on the vast majority of goods traded between the UK and Switzerland. Mr Fox said: “This [agreement] is of huge economic importance to UK businesses so I’m delighted to be here in Bern today, ensuring continuity for 15,000 British exporters. Not only will this help to support jobs throughout the UK, but it will also be a solid foundation for us to build an even stronger trading relationship with Switzerland as we leave the EU.”

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HM Revenue and Customs (HMRC) awards £71 million logistics contract

HMRC has awarded a new £71 million contract, for a five-year term, to support existing customs compliance work, as it moves inland pre-clearance checks to new multi-purpose sites. Following a full procurement exercise, logistics firm Wincanton will work in partnership with HMRC and Border Force, providing logistics. HMRC and Border Force undertake targeted checks inland, which help prevent mis-declared goods from flowing into the country. HMRC has moved its inland pre-clearance operations from previous sites at Heathrow and Bicester to the new purpose-equipped sites at Hayes and Milton Keynes.

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Government launches new system to maintain EU restrictions on harmful gases

On 11 February 2019, the Government launched a new system to ensure the UK maintains current restrictions on the use of fluorinated greenhouse gases in the event of a ‘no-deal’ Brexit. The new online system will control the use of these harmful greenhouse gases that contribute to global warming, such as fluorinated gases, powerful greenhouses gases used in refrigerators and air conditioners. In a ‘no-deal’ scenario, UK businesses that produce or trade in these gases or products that contain them, will have to register on the new system by 12 April 2019. This will replace the current system which controls emissions for all EU Member States.

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We have created a Brexit checklist to assist businesses with the various challenges and opportunities presented by Brexit. Please click here to view.

Commercial

Minister unveils Integrated Communities Action Plan

On 9 February 2019, Housing Minister James Brokenshire MP outlined the Government’s next steps to deliver the vision of the Integrated Communities Strategy green paper, designed to create stronger, more confident and integrated communities, where people, whatever their background, can live, work, learn and socialise together, based on shared rights, responsibilities and opportunities. The plan is backed by £50 million of funding to help the relevant Government departments implement their own commitments to build integrated communities.  Mr Brokenshire MP said: “As we embark on a new future outside the European Union, we need to ensure that everyone, whatever their background, has access to the same opportunities.”

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Rail Minister reiterates northern benefits of HS2

On 11 February 2019, speaking at the inaugural Transport for the North conference in Sheffield, Rail Minister Andrew Jones set out his enthusiasm and ambition for northern transport. In particular, Mr Jones said: “Already there are 7,000 jobs supported by the programme; already over 2,000 businesses have HS2 contracts; and already the diggers are on the ground in Birmingham. Building has started.” He further added: “Our commitment to HS2, the full network to Manchester and Leeds, remains undiminished. As the Secretary of State said recently, to do otherwise would be a betrayal of the north.”

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Councillors vote to approve UK ‘tourist tax’

On 7 February 2019, councillors at Edinburgh City Council voted to approve the first ever UK ‘tourist tax’ which will raise an estimated £14.6 million annually. The Transient Visitor Levy scheme will include a flat £2 per-night room charge added to the price of a room in all properties for the first seven days of stay. Although Edinburgh are the first council in the UK to introduce such a scheme, the new tax will not come into effect until after the Scottish Parliament has passed the enabling legislation, with the council now recommending the proposals to ministers and MSPs.

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Regulatory

Local Government Association (LGA) responds to new taxi licensing rules

On 12 February 2019, the Government launched a consultation on robust new rules for licensing authorities, outlining how they should use their powers to protect vulnerable passengers from harm. These guidelines would improve safety with enhanced safety standards for taxi and private hire vehicles, which will be consistent across the country. New safety measures proposed include recommending councils ensure every driver undergoes enhanced criminal record and background checks.  Responding to the guidance, Councillor Simon Blackburn said: “Councils have long-called for existing outdated taxi laws to be updated and strengthened, so we are very pleased that so many of our recommendations have been supported in this consultation.”

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Pub operator faces £51,000 fine over advertisement

The operator of a pub in Gateshead has been ordered to pay more than £51,000 after ignoring demands to remove an illegal advertisement on his building. Mark Garry, director of G Leisure, was convicted in February last year for displaying an illegal advertisement on the gable of his pub. Despite that conviction, and being refused planning permission, the sign remained in place and Gateshead Council was forced to prosecute him for illegally displaying an advertisement. In January 2019, Gateshead Magistrates’ Court found Mr Garry guilty, again in his absence, and fined him £50,750. He was also ordered to pay costs of £336 and a victim surcharge of £170.

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LGA warns of bus routes at risk

The LGA is warning that the underfunding of subsidised bus routes, coupled with councils facing an overall funding gap of £3.1 billion in 2019/20, means that councils will struggle to maintain current subsidies for bus routes, which will continue to fall unless they are given the funding to protect them. Furthermore, the LGA said the future of the bus services is of huge concern, and would be made more secure if the Government reinstated the full funding of the costs, of the national concessionary travel scheme in its forthcoming Spending Review. Unless the Government addresses this gap, vulnerable residents could be left isolated and unsupported, particularly in rural areas.

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Planning and housing

Government to consider new stamp duty land tax surcharge

On 11 February 2019, HMRC announced the launch of a consultation which will look at how a new 1% increase to stamp duty costs for non-UK residents buying residential property in England and Northern Ireland would work. This follows a commitment made by the Prime Minister and a subsequent announcement of the proposed rate at Budget 2018. Proceeds of the new surcharge would be put towards measures to tackle rough sleeping. The consultation will cover all aspects of the charge, including how non-residents will be defined and how it applies to companies.

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Tenant Fees Bill receives Royal Assent

On 12 February 2019, the Tenant Fees Bill receive Royal Assent and will now become an Act of Parliament, putting an end to costly fees imposed by landlords or agents, with the ban on fees to come into effect from 1 June 2019. It is expected to save tenants across England at least £240 million a year, or up to £70 per household. The Act also caps the security deposits that renters pay at the start of their tenancy at 5 weeks’ rent, giving people the assurance that legally they cannot be expected to pay more than this to secure a property.

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Council fails in High Court challenge to grant dwelling scheme

South Gloucestershire Council has failed in a High Court challenge to a planning inspector’s decision to allow a developer’s appeal against refusal of planning permission for 350 dwellings, a 70 unit elderly care facility and community and commercial facilities. The council was granted leave to bring the court proceedings on one ground, namely, the inspector’s reasons regarding prematurity. The council argued these reasons were inadequate because he did not explain why he gave “little weight” to the council’s submissions on prematurity. However, Mrs Justice Lang dismissed the council’s claim, concluding, amongst other matters, that “There was not any real, as opposed to forensic, doubt as to what the inspector’s reasons were.”

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Independent review says planning appeal decisions could be cut by 5 months

According to a report published by Bridget Roswell CBE on 12 February 2019, the most contentious planning cases could be decided up to 5 months faster, and some in half the time, giving certainty to communities about future developments. The wide ranging review concluded outdated administrative processes and poor IT infrastructure were unnecessarily holding up cases. Mrs Roswell’s report also suggested that a lack of suitably qualified inspectors was hampering efforts to set up inquiry hearings on time. The Planning Inspectorate will now prepare an implementation plan, which will set out precisely how it will deliver the 22 recommendations made by the report.

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