Author: Pulse Assent

Less than two weeks after the Government confirmed its comprehensive plans for the UK’s future relationship with the EU, it has published a further White Paper explaining how the UK’s Withdrawal Agreement will be put into law.

The EU (Withdrawal Agreement) Bill – formerly known as the Withdrawal Agreement and Implementation Bill – will legislate for the major elements of the Withdrawal Agreement we reach with the EU, including issues such as the agreement on citizens’ rights, the financial settlement and the details of a time-limited implementation period.

The precise details of the Bill will be subject to the ongoing negotiations with the EU but today’s White Paper provides yet more legal certainty as we prepare to leave the EU in March next year.

It confirms that the Bill will:

• be the primary means by which the rights of EU citizens will be implemented and protected in UK law;
• amend some parts of the EU (Withdrawal) Act to ensure that our statute book functions correctly during the time-limited implementation period; and
• create a financial authority to manage the specific payments to be made under the financial settlement, with appropriate Parliamentary oversight.

With UK and EU negotiators continuing to work through outstanding parts of the Withdrawal Agreement, including on Northern Ireland and other separation issues, more detail on how they will be legislated for will be provided in due course.

The Secretary of State for Exiting the EU, Dominic Raab said:

“This White Paper on the EU (Withdrawal Agreement) Bill explains the pragmatic approach we are taking to legislating for our Withdrawal Agreement, including the time-limited implementation period that we agreed with the EU in March.

“It also provides further certainty at home and in the negotiations that the UK is getting on with the job of delivering a smooth and orderly Brexit while giving Parliamentarians an opportunity to consider the detail of the EU (Withdrawal Agreement) Bill before it is introduced.

“We look forward to working with MPs and peers on this crucial piece of legislation which will give effect to our exit Treaty in law.”

The Bill was announced in November last year, but this is the first time that the Government has presented detail on how key parts of the Withdrawal Agreement will be made reality in UK law.

It follows the EU (Withdrawal) Act which received Royal Assent on 26 June 2018 and will ensure that our statute book functions when we leave, regardless of the outcome of the negotiations.

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.