Trading

Trading

This subtopic provides an practical guidance on local authority (LA) companies.

For information on the establishment and use of companies by LAs, details of the governance structure of companies and types of company

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Latest Local Government News

DfT launches consultation on proposals to support transition to ZEVs

The Department for Transport (DfT) has launched a consultation, seeking views on proposals supporting the UK's transition to zero emission vehicles (ZEVs). The consultation is divided into two parts. The first, conducted solely by the UK government, focuses on phasing out the sale of new petrol and diesel cars from 2030. It seeks input on ending the sale of new internal combustion engine cars from 2030, potential requirements for new non-zero emission vans to be sold from 2030 to 2035, considerations for small volume manufacturers, and measures to support ZEV uptake. The second part, conducted in collaboration with devolved administrations, examines the ZEV Mandate, delivered though vehicle emissions trading schemes. It seeks views on existing flexibilities and potential technical updates to the Mandate, which will inform future amendments to the Mandate and CO2 emissions regulation. The consultation closes on 18 February 2024.

IfG analyses government’s increased investment in deprived councils

The Institute for Government (IfG) has published an analysis of the government's December 2024 local government finance settlement, which allocates more funding to deprived areas. The analysis indicates a 3.5% real-terms increase in core spending power for 2025/26, with the most deprived councils receiving increases of up to 6.4%, compared to 3% for the least deprived. This is largely due to a new £600m 'Recovery grant'. However, the IfG notes that this single year's allocation cannot fully rectify over a decade of funding disparities, emphasising that it will take years to completely rebalance local authority finances. The most deprived councils have experienced a 20.1% real-terms funding cut from 2010/11 to 2024/25, which will only marginally improve to 15.3% by 2025/26 under the new settlement. While the settlement is seen as a positive step, the IfG highlights that rising costs, such as increases in National Insurance contributions and the National Living Wage, may counteract these gains. The government has also announced a consultation on further funding reforms for 2026/27 onwards, with the IfG concluding that these changes represent the beginning of efforts to address the local government finance crisis.

Was the tenant’s intention to return to the property as an owner sufficient to satisfy the ‘tenant condition’ (Hackney London Borough Council v Weintraub)

Local Government analysis: This judgment is another in a string of decisions concerning the interpretation of the tenant condition. The issue in this case was narrower than in previous hearings. Hackney appealed the previous judgment of Mr Justice Zacaroli made in April 2024. Hackney appealed on the basis that an intention to return to the property as an owner cannot satisfy the ‘tenant condition’. The judge in this case disagreed with such an assertion and the appeal was dismissed. There were other elements to the appeal, but those fell by the wayside. The Judge held that the tenancy condition can be satisfied even where the tenant does not intend to return to the premises as a tenant. It was held that there is no suggestion within the legislative provision that a return as a tenant is required. The condition remains satisfied if a tenant intends to return in any capacity, as long as this can be measured and shown against objective ascertained fact. Written by Clive Adams, head of Housing Management at Birketts LLP.

Welsh Government confirms royal assent for Devolved Welsh Authorities Amendment Order

The Minister for Further and Higher Education, Vikki Howells MS, has issued a written statement confirming that the Government of Wales Act 2006 (Devolved Welsh Authorities) (Amendment) Order 2024, SI 2024/1206 has received royal assent. The Order, which was initially laid before the Senedd and both Houses of Parliament in May 2024, has now been approved by Parliament and was formally made by His Majesty at a Privy Council meeting on 6 November 2024.

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