localism bill update
7 October 2011
The Localism Bill has barely been out of the local government
press recently, mainly due to the Government accepting, or
signalling that they will accept, amendments which are generally
beneficial to local authorities.
These changes have come in some cases after hard lobbying
efforts by the Lords following the summer break: they obviously
came back in fighting form! So now is a good time to have a look at
what these proposed amendments are and the impact they’ll have on
local authorities.
Planning
Changes to assumptions of planning permission for
calculating compensation for compulsory purchase have been put
forward.
The Lords suggest changing the requirements for a local
authority to serve a planning enforcement order only to situations
where there has been a deliberate concealment of a breach. This has
the potential to reduce the enforcement power of the local
authority.
Referenda for neighbourhood development plans are to be arranged
for both the domestic and the non-domestic rate payers if there is
a high enough percentage of business use in the relevant area. This
could be controversial if residents feel that local authorities are
“siding” with business.
Housing
The Lords have proposed exempting buildings controlled or
managed by a co-operative society from the HMO licensing regime.
They also proposed amendments to flexible tenancies for social
housing to protect certain groups of people, namely the elderly and
the disabled, and to allow relevant landlords more discretion in
deciding to review a tenancy.
Governance
There will continue to be some form of code of conduct for
elected members. It is not proposed that the Standards Board is
maintained but there will be a requirement for a code.
Local authorities, economic prosperity boards and combined
authorities should be allowed to apply for further powers to be
devolved on a case by case basis from central government. The
powers will only be delegated if a compelling application is made
by one or more local authorities. For England’s core cities this
could mean exciting new ways to bring forward innovative local
projects.
There has been a major revamp of the ability of central
government to pass on EU fines to local authorities, obviously well
received by local government. Any decision will have to be approved
by both houses and be subject to statutory policy.
The Secretary of State will not have the power to require an
authority to have an elected mayor and cabinet system, only that a
referendum is held and the elected mayor cannot concurrently be the
chief executive.
The general power of competence has been extended to integrate
transport authorities, passenger transport executives, economic
prosperity boards and combined authorities, in as far as the remit
of their powers extend.
Local authorities will have more flexibility over deciding to
change from a whole council election system to an election by
thirds but not more than once every five years.
Communities
The Lords have introduced exceptions allowing a local authority
to refuse to hold a local referendum: if costs would be more than
5% of the council’s council tax requirement for that year; if the
same issue has been the subject of a referendum in the previous
four years; or where there is another statutory process that covers
the decision e.g. planning. This has the potential for large
savings to local authorities.
Some changes have been made to the “assets of community value”
provisions all of which give greater clarification of the process
in terms of definitions, notification and timescales.
For the “community right to challenge”, it will be local
authorities rather than the government who will set out periods for
inviting expressions of interest to take over council services.
Conclusion
These
amendments are on the whole good news for local authorities who
will be able to make more decisions based on their local
circumstances. It is now to be seen how far the Commons will go in
accepting the Lords’ suggestions.
The content of this bulletin is provided for the purposes
of general interest and information. It contains only brief
summaries of aspects of the subject matter and does not provide
comprehensive statements of the law. It does not constitute legal
advice and does not provide a substitute for it.