Day: July 24, 2018

More councils are being invited to apply for powers to retain the growth in their business rates, under new pilots announced today (24 July 2018) by Secretary of State for Communities, Rt Hon James Brokenshire MP.

The pilots will see councils rewarded for supporting local firms and local jobs and ensure they benefit directly from the proceeds of economic growth.

From April 2019, selected pilot areas will be able to retain 75% of the growth in income raised through business rates, incentivising councils to encourage growth in business and on the high street in their areas and allowing money to stay in communities and be spent on local priorities – including more funding to support frontline services.

This follows the success of previous waves of business rates retention pilots, launched in a wide range of areas across country in 2017 and 2018.

The current 50% business rates retention scheme is yielding strong results and in 2018 to 2019 it is estimated that local authorities will keep around £2.4 billion in business rates growth.

Findings from the new round of pilots will help the government understand how local authorities can smoothly transition into the proposed system in 2020.

Secretary of State for Communities, Rt Hon James Brokenshire MP, said:

I’m pleased to respond to calls from local government and provide further opportunities for councils to control more of the money they raise locally.

I want to encourage councils to work together, with the aim of sharing their business rates income, so they can make better decisions that benefit their wider areas.

Continuing the pilot programme for the second time allows us to look at how the system will work from 2020.

Proposals will need to show how local authorities would ‘pool’ their business rates and work collaboratively to promote financial sustainability, growth or a combination of these.

Alongside the pilots, the government will continue to work with local authorities, the Local Government Association, and others on reform options that give local authorities more control over the money they raise and are sustainable in the long term.

Financial settlement technical consultation

The Secretary of State also today launched the annual technical consultation on the local government finance settlement and is calling for submissions from stakeholders by 18 September 2018.

The technical consultation reiterates this government’s intention for the 2019 to 2020 settlement to confirm the final year of the 2016 to 2017 multi-year settlement, and to implement Council Tax referendum principles as announced last year.

The multi-year settlement offered local authorities greater certainty over elements of their funding across the spending period and was accepted by 97% of local authorities.

The government proposes to allocate funding in 2019 to 2020 in accordance with the agreed methodology announced by the Secretary of State in 2016 to 2017, which ensures that local councils delivering similar services receive a similar percentage change in settlement core funding for those services.

Finally, ministers have noted the strength of feeling in local government around the issue of ‘negative Revenue Support Grant’ and this technical consultation sets out the governments preferred approach to resolving the issue in 2019 to 2020.

Further information

The deadline for proposals is 18 September 2018 – see details of the consultation.

It is expected that successful applications will be announced before or alongside the publication of the provisional Local Government Finance Settlement. After the announcement, the department will support successful authorities in preparing for implementation. Pilot local authorities will retain 75% of the growth in their business rates income in the year of the pilot (2019 to 2020), meaning that an additional 25% of the central government share (usually 50% of the growth) will stay in the local area.

The pilot programme will not affect funding to other, non-pilot, local authorities. There is already a system of redistributing funding between councils to ensure that areas with lower business rates income do not lose out.

The preferred method for resolving the issue of ‘negative RSG’ recognises the commitment made by the government during the implementation of the business rate retention scheme in 2013 to 2014, that authorities’ retained business rates baselines, which are used to determine their tariff and top-ups, would be fixed in real terms until the system was reset. This commitment was made so that local authorities would benefit directly from supporting local business growth and the government does not wish to undermine this incentive.

Whilst the number of new pilots has not been confirmed, it is possible that the pilot programme may be smaller than in 2018 to 2019, reflecting the proximity of the proposed reforms in 2020.

Under the plans for the new system, some existing grants to local government would be funded through retained business rates. Based on the current 2019 to 2020 value of these grants, this will be equivalent to 75% business rates retention, up from the current 50% retained by the local government sector as a whole. The actual value of these grants, and so the level of business rates retention that can be achieved, will be determined in the Spending Review.

Devolution deal areas with ongoing pilots will continue to pilot 100% business rates retention in 2019 to 2020, reflecting the government’s ambitions to introduce a national system of 100% business rates retention in the long-term.

The department will continue to have separate discussions with London authorities about the currently ongoing London pilot.

New proposals for Local Enterprise Partnerships (LEPs) to supercharge economic growth and drive forward investment in local businesses across the country have been put forward by ministers today (24 July 2018).

The publication of the ‘Strengthened Local Enterprise Partnerships’ review sees government delivering on its promise in the Industrial Strategy white paper to bring forward reforms to the leadership, governance and accountability of the 38 LEPs charged with kick-starting economic growth and creating jobs in their regions.

The review proposes a number of changes to boost the performance of LEPs, increase their diversity and ensure they’re operating in an open and transparent way. These include:

• up to £20 million of additional funding between 2018 to 2019 and 2019 to 2020 to support the implementation of these changes and embed evidence in Local Industrial Strategies
• supporting LEPs to consult widely and transparently on appointing new Chairs and improve board diversity
• a requirement for women to make up at least one third of LEP boards by 2020 with the expectation of equal representation by 2023
• a mandate for LEPs to submit proposals for revised geographies including removing situations in which 2 LEP geographies overlap

The Communities Secretary, Rt. Hon James Brokenshire MP, said:

This publication of the Strengthened Local Enterprise Partnerships policy represents a step change in approach for LEPs. We will continue our work to strengthen these leading institutions to develop ambitious strategies for growth and build an economy which is fit for the future.

Local Growth Minister, Jake Berry MP, said:

We’ve committed over £9 billion to help LEPs through 3 rounds of Growth Deals to deliver on their investment priorities, while creating new and exciting economic opportunities for local businesses and communities across the country.

This landmark shake-up of our local enterprise partnerships will help us deliver on our pledge to deliver over £12 billion through the Local Growth Fund by 2021 while allowing LEPs to use their local knowledge to deliver inclusive growth.

Further information

Local Growth Fund

Local Enterprise Partnerships are playing a vital role in driving forward economic growth across the country, helping to build a country that works for everyone.

By 2021, government will have invested over £12 billion through the Local Growth Fund, allowing LEPs to use their local knowledge to get all areas of the country firing on all cylinders.

Analysis has shown that every £1 of Local Growth Fund invested could generate £4.81 in benefits.

The full ‘Strengthened Local Enterprise Partnerships’ report can be accessed on GOV.UK

Building attractive and better-designed homes in areas where they are needed is at the centre of new planning rules published by Secretary of State Rt Hon James Brokenshire MP today (24 July 2018).

The new rules will also make it easier for councils to challenge poor quality and unattractive development, and give communities a greater voice about how developments should look and feel.

The revised National Planning Policy Framework follows a public consultation launched by the Prime Minister earlier this year to provide a comprehensive approach for planners, developers and councils to build more homes, more quickly and in the places where people want to live.

The new rule book will focus on:

• promoting high quality design of new homes and places
• stronger protection for the environment
• building the right number of homes in the right places
• greater responsibility and accountability for housing delivery from councils and developers

Secretary of State for Communities, Rt Hon James Brokenshire MP said:

Fundamental to building the homes our country needs is ensuring that our planning system is fit for the future.

This revised planning framework sets out our vision of a planning system that delivers the homes we need. I am clear that quantity must never compromise the quality of what is built, and this is reflected in the new rules.

We have listened to the tens of thousands of people who told us their views, making this a shared strategy for development in England.

Ministers have been clear on their ambition to achieve 300,000 new homes a year by the mid-2020s, which follows 217,000 homes built last year, the biggest increase in housing supply in England for almost a decade.

The new rules will see 85 of the proposals set out in the housing white paper and the Budget, implemented in the new National Planning Policy Framework.

Promoting high quality design of new homes and places

Refocusing on the quality and design of proposals which are in line with what local communities want, the framework ensures councils have the confidence and tools to refuse permission for development that does not prioritise design quality and does not complement its surroundings.

With an emphasis on engaging with communities and allowing residents to see proposed development before it’s even built, the new framework encourages councils to make use of innovative new visual tools to promote better design and quality, which will also make sure new homes fit in with their surroundings.

Adopted neighbourhood plans will demonstrate clear local leadership in design quality, with the framework allowing groups seeking such plans to truly reflect the community’s expectations on how new development will visually contribute to their area.

Whilst the framework sets the strategic direction for driving up new build quality, it will remain up to councils to apply these polices in the most appropriate way in their area, recognising that they are well placed to know their area’s unique character and setting.

To maximise the use of land we are promoting more effective use of the land available and giving councils more confidence to refuse applications that don’t provide enough homes.

Stronger protection for the environment

The new framework has also been updated to provide further protection for biodiversity; ensuring wildlife thrives at the same time as addressing the need for new homes.

Changes to the framework see the planning system align more closely with Defra’s 25 Year Environment Plan, which aims to leave the environment in a better state for future generations. This includes more protection for habitats, and places greater importance on air quality when deciding development proposals.

It provides strengthened protection for ancient woodland and ancient and veteran trees across England, ensuring they can be retained for the benefit of future generations.

Whilst giving councils real flexibility to make the most of their existing brownfield land, the revised framework makes sure they exhaust all other reasonable options for development before looking to alter a Green Belt boundary.

The government has more explicitly outlined the protection of the Green Belt in England, explaining the high expectations and considerable evidence that would be needed to alter any boundary.

Building the right number of homes in the right places

To help tackle unaffordable house prices in many areas across the country, the framework sets out a new way for councils to calculate the housing need of their local community (including different forms of housing, such as older people’s retirement homes).

This new methodology aims to deliver more homes in the places where they are most needed, based on factors including the affordability of existing homes for people on lower and medium incomes.

Greater responsibility and accountability for housing delivery from councils and developers

From November 2018 councils will have a Housing Delivery Test focused on driving up the numbers of homes actually delivered in their area, rather than how many are planned for.

In addition, to make sure that the necessary infrastructure and affordable housing is delivered to support communities, clearer guidance for both developers and councils will also be published today.

Meaning that developers will know what is expected of them up front, even before they submit a planning application and councils have greater power to hold them to these commitments.

Further information

The publication of the National Planning Policy Framework follows the government’s first Design Quality Conference held in London earlier this year, which demonstrated our commitment to engaging local government and industry to promote and deliver a step change in the design quality of new development.

See the final National Planning Policy Framework published today (24 July 2018).

During the consultation the government held 10 regional engagement events and approximately 40 individual meetings.

29,224 responses received to the government’s consultation on the revised National Planning Policy Framework. This included over 25,000 campaign responses.

• Savings from closing seven courts to be reinvested into reform
• Systems will be modernised, improving access to justice for all
• Following careful consideration, Cambridge Magistrates’ Court will remain open

Services will be moved to alternative locations as close as possible to the closing court.

During 2016/17, 41% of court and tribunal buildings were used for less than half of their available time. This, coupled with an estate inherited from previous organisations before the advent of HM Courts and Tribunals Service (HMCTS), means there is some excess court capacity, with some of the estate in poor condition or in close proximity to another court building.

Following public consultations, decisions have been made to close:

• Banbury Magistrates’ and County Court
• Blackfriars Crown Court
• Chorley Magistrates’ Court
• Fleetwood Magistrates’ Court
• Maidenhead Magistrates’ Court
• Northallerton Magistrates’ Court
• Wandsworth County Court

All courts were assessed on the basis of ensuring access to justice, delivering value for money and the ability to offer efficiency in the long term. Cambridge Magistrates’ Court – on which the decision to consult was finely balanced – will remain open following consideration of a range of issues, including its location within a large and well-connected city and new evidence suggesting that closure would not provide sufficient value for money.

Unlike the other seven courts which are freeholds owned by HMCTS, Cambridge Magistrates’ Court is a long Finance Lease with restrictions on use. After further investigation of the likely costs, the Lord Chancellor has concluded that the value for money case has not been made. HMCTS will continue to explore further ways to manage under-utilisation of existing buildings in the region as part of its wider estates strategy.

Northallerton Magistrates’ Court serves an exceptionally rural community but during the course of the consultation public service transport timetables were altered. This may make it more difficult for some users in some areas to get to court, especially for early morning starts. As a result, the court will not be closed until video facilities are made available in Northallerton.

Lord Chancellor, David Gauke said:

All money raised from the sale of these buildings will be reinvested into the justice system, and we want to reassure communities that those affected by closures will have access to alternative courts.

We must ensure we use public money effectively and make decisions in the best interest of the wider justice system.

More than 700 responses were received following the consultations published in January. Travel times and distances to the nearest courts were thoroughly considered before final decisions were made.

The Government is investing £1 billion in reforming and modernising courts and tribunals, which has already delivered:

• An online system which enables court staff to prepare case files and access them digitally in a courtroom during a hearing – saving 68 million pages of paper.
• The ability for those convicted of minor motoring offences to make their initial plea online. Some 1500 pleas are dealt with online every week. Court staff and the police automatically receive the completed online plea form as soon as the defendant has submitted it, reducing delays.
• A fully paperless system in conjunction with Transport for London – which means thousands of cases involving fare evasion are dealt with more swiftly and effectively.

In the civil courts people can now:

• Make a small money claim online – with over 3,000 claims issued in the first month, cases moving through more quickly, and user satisfaction over 80% during the pre-launch pilot.
• Apply for a divorce online – which has cut errors in application forms from 40% to less than 1%, saving people time and trouble during a traumatic time.
• Apply for probate online – which has also cut errors, sped up the process, and has a satisfaction rate of more than 90%.

Court buildings are also being improved and as of March 2018 approximately £108m was spent on capital maintenance to improve the existing estate. Approximately £115m has been raised from the sales of surplus buildings to reinvest in the wider reform programme.