LGA concern at absence of Local Government Finance Bill in Queen’s Speech

June 21, 2017

It is “hugely concerning” that the Government has not reintroduced the Local Government Finance Bill in the Queen’s Speech, the Local Government Association has said.

Lord Porter, Chairman of the LGA, said: “The Bill was setting out the framework towards allowing local government in England to keep all of the £26bn in business rates it raises locally each year and providing powers for Mayoral Combined Authorities and the Greater London Authority to raise an Infrastructure Supplement.

“Councils are facing an overall £5.8bn funding gap by 2020. The Government needs to commit to using its existing powers to keep working with local government to continue these vital reforms. Local government collectively must keep every penny they raise locally in taxation to spend on local services to help secure the long-term financial sustainability of councils and ease the pressure facing the public services our communities rely on. Plans to develop a fairer system of distributing funding to councils must also continue.”

Lord Porter repeated the LGA’s demand that local government be given a central role in deciding post-Brexit whether to keep, amend or scrap the EU laws which impact on council services.

“Brexit should not simply mean a transfer of powers from Brussels to Westminster, Holyrood, Stormont and Cardiff Bay,” he said. “It must lead to new legislative freedoms and flexibilities for councils so that residents and businesses benefit.”

Jonathan Carr-West, chief executive of the LGIU think tank, meanwhile suggested that for local government this Queen’s Speech “hovers around the edges rather than directly confronting the big questions”.

He said: “There are no firm proposals on social care funding reform and no mention of devolution in England. There is no further detail on the road map towards 100% business rate retention. All of these issues are urgent and growing more urgent by the month.

“Local government thus finds itself dragged into the uncertainty that is afflicting parliament. Councils can and will continue to deliver the local services that people depend upon. But if local government is to plan effectively for the future, it desperately needs more clarity on the big issues than is promised by today’s Queen’s speech.”

There are 27 Bills and Draft Bills in the Queen’s Speech, as well as proposals for various non-legislative measures. The background briefing notes can be viewed here.

Summary of Bills/Draft Bills most relevant to local government and related sectors

Repeal Bill: This Bill “will allow for a smooth and orderly transition as the UK leaves the EU, ensuring that, wherever practical, the same rules and laws apply after exit and therefore maximising certainty for individuals and businesses”. The Bill will:

repeal the European Communities Act 1972 and convert EU law into UK law as the country leaves the EU
create temporary powers for Parliament to make secondary legislation, “enabling corrections to be made to the laws that do not operate appropriately once we have left the EU”; it will also allow changes to be made to domestic law to reflect the content of any withdrawal agreement under Article 50
replicate the common UK frameworks created by EU law in UK law, and maintain the scope of devolved decision-making powers immediately after exit. “This will be a transitional arrangement to provide certainty after exit and allow intensive discussion and consultation with the devolved administrations on where lasting common frameworks are needed."

Immigration Bill: With the repeal of the European Communities Act, it will be necessary to establish new powers concerning the immigration status of EEA nationals. The Bill “will allow the government to control the number of people coming here from Europe while still allowing us to attract the brightest and the best”. The Bill will:

allow for the repeal of EU law on immigration, primarily free movement, that will otherwise be saved and converted into UK law by the Repeal Bill.
make the migration of EU nationals and their family members subject to relevant UK law once the UK has left the EU.

High Speed 2 Phase 2A Bill: The next phase of the HS2 project will be set out in this Bill. The Bill will provide the powers to build and operate the next stage of the HS2 network between Birmingham and Crewe.

Smart Meter Bill: In order to help deliver more transparent energy bills and allow households to monitor their use effectively, the Bill will:

extend, by five years, powers to make changes to smart meter regulations, and make sure the rollout is delivered effectively
introduce a Special Administration Regime to ensure the continuing operation of the national smart meter service if the provider becomes insolvent

Draft Tenants’ Fees Bill: Tackling unfair fees on tenants “will make the private rental market more affordable and competitive”. The draft Bill will bring forward proposals to:

ban landlords and agents from requiring tenants to make any payments as a condition of their tenancy with the exception of the rent, a capped refundable security deposit, a capped refundable holding deposit and tenant default fees.
cap holding deposits at no more than one week’s rent and security deposits at no more than one month’s rent.

Draft Domestic Violence and Abuse Bill: “In line with the manifesto commitment, draft proposals will be published to update the law to help tackle the evil of domestic abuse and violence”. Proposals will be published in draft for scrutiny by MPs and peers to help build a consensus and raise the profile of this issue. The draft measures will bring forward proposals:

to establish a Domestic Violence and Abuse Commissioner, "to stand up for victims and survivors, raise public awareness, monitor the response of statutory agencies and local authorities and hold the justice system to account in tackling domestic abuse.
to define domestic abuse and create a consolidated new domestic abuse civil prevention and protection order.
to ensure that if abusive behaviour involves a child, then the court can hand down a sentence that reflects the devastating life-long impact that abuse has on the child.

Civil Liability Bill: This Bill will “crack down on fraudulent whiplash claims and is expected to reduce motor insurance premiums by about £35 per year. The Bill will ban offers to settle claims without the support of medical evidence and introduce a new fixed tariff of compensation for whiplash injuries with a duration of up to 2 years.”

Courts Bill: The Bill will reform the courts system in England and Wales “to ensure it is more efficient and accessible, and in doing so utilise more modern technology”. The Bill will:

end direct cross examination of domestic violence victims by their alleged perpetrators in the family courts and allow more victims to participate in trials without having to meet their alleged assailant face-to-face.
introduce digital services which will allow businesses to pursue their cases quickly, enabling them to recover debts more easily.
provide a better working environment for judges, allowing more leadership positions in the judiciary to be offered on a fixed term basis, and enabling judges to be deployed more flexibly.

Data Protection Bill: The Bill will “fulfil a manifesto commitment to ensure the UK has a data protection regime that is fit for the 21st century”. The Bill will:

ensure that the country’s data protection framework is suitable for the new digital age, and cement the UK’s position at the forefront of technological innovation, international data sharing and protection of personal data.
strengthen rights and empower individuals to have more control over their personal data including a right to be forgotten when individuals no longer want their data to be processed, provided that there are no legitimate grounds for retaining it.
establish a new data protection regime for non-law enforcement data processing, replacing the Data Protection Act 1998.
modernise and update the regime for data processing by law enforcement agencies.

Draft Patient Safety Bill: The draft Bill will set out a framework “to help improve patient safety in the NHS and instil greater public confidence in the provision of healthcare services in England”. The Bill will bring forward proposals to:

establish the Health Service Safety Investigation Body in statute, providing it with clear powers to conduct independent and impartial investigations into patient safety risks in the NHS in England.
create a prohibition on the disclosure of information held in connection with an investigation conducted by the Health Service Safety Investigation Body, "enabling participants to be as candid as possible". This prohibition will not apply where there is an ongoing risk to the safety of patients or evidence of criminal activity, in which case the Investigation Body can inform the relevant regulator or the police.

Non-Legislative Measures

Public Inquiry into the Grenfell Tower fire: this will be a full public inquiry, in line with the Inquiries Act; the Government will appoint a judge to chair the inquiry on the recommendation of the Lord Chief Justice. Residents and victims’ families will receive funding for their legal representation. The Government is to guarantee that people will be rehoused as close as practically possible to where they previously lived. This rehousing would be in the same borough and, if not, a neighbouring borough.
Independent Public Advocate: This new role will – in England and Wales – act for bereaved families after a public disaster and support them at public inquests. The Public Advocate will be able to access information held by public bodies and will, where appropriate, report on or share that information with representatives of the victims.
Mental health reform: The Government will consider what further reform of mental health legislation is necessary, including changes in how the Mental Health Act 1083 is implemented on the ground. “As we work towards a new Mental Health Act, we will review the mental health legislative landscape and publish recommendations on where new policy could provide greater rights for those experiencing mental health problems so they can live lives free from discrimination.” The use of community treatment orders will be reviewed, and a Green Paper on Children and Young People’s Mental Health will be published.
Social care: “We will work to address the challenges of social care for our ageing population, bringing forward proposals for consultation to build widespread support.” The consultation will set out options to improve the social care system and to put it on a more secure financial footing, supporting people, families and communities to prepare for old age, and address issues related to the quality of care and variation in practice.
Public finances: “We will reflect on the message voters sent at the General Election – while always remembering that we have to balance the books and eliminate the deficit we inherited following the financial crisis…..The Government values the important work that public sector workers do in delivering essential public services. We can only have well-funded public services and high standards of living if we deliver a stronger economy and increase or productivity.”
Schools and technical education: “We want every child to go to a good or outstanding school. We will look at all options and work with Parliament to bring forward proposals that can command a majority…..We will continue to encourage more people, schools and institutions with something to offer to come forward and help deliver more good school places.” Failing maintained schools will continue to be converted into academies. The Government remains committed to changing the way funding is distributed to schools in England. An extra half a billion pounds a year will be invested in England’s technical education system.
National Living Wage and Workers’ Rights: The National Living Wage will be increased to 60% of median earnings by 2020. After 2020 it will continue to be increased “so that these workers will benefit from the same improvements in earnings as the average worker”. The Matthew Taylor Review of Employment Practices will be “an important step towards us ensuring fairness for everyone in work”. The report is due shortly.
Housing: “Proposals will be brought forward to [..] help ensure more homes are built.” The Government will deliver the reforms proposed in the Housing White Paper issued in February 2017. The Government will consult on leasehold reform.
Consumer markets including the energy market: The Government will publish a green paper “that will closely examine markets which are not working fairly for consumers, and is prepared to act where necessary”. This paper will look across markets at how to help consumers avoid being caught out by unfair terms and subscription traps. “We will also consider ways to help them enforce their rights, including through more widespread use of alternative dispute resolution.”