Carbon Emissions Tax (UK Brexit)

Exit day is 31st October.

I previously posted that a Carbon Emissions Tax was being considered, then it seemed it would not go ahead. Today 29 July, the Government issued updated guidance giving 4th November as the start of the Carbon Emissions Tax (in the event of no-deal). The Carbon Emissions Tax is already provided for by Part 3 of the Finance Act 2019.

Part 3 (if not already added to Subscribers EHS Legislation Registers & Checklists) will be added shortly, to the Brexit Law List, as part of the Brexit Law consolidation that is a work in progress.

The relevant Guidance section states : the updated Guidance is here (please read other parts also)

Carbon pricing

As set out at Budget 2018, if the UK leaves the EU in a no deal scenario, the UK government would introduce a Carbon Emissions Tax to help meet the UK’s legally binding carbon reduction commitments under the Climate Change Act.

In this scenario, for 2019 a rate of £16 would be applied to each tonne of carbon dioxide emitted over and above an installation’s emissions allowance. For permit holders outside the simplified reporting scheme this allowance would be based on the allocation of free EUAs that would have been allocated to installations under Phase III of the EU ETS. For those currently covered by the simplified reporting arrangements, the allowance would be based on their current emissions target. The rate for years beyond 2019 would be set at future fiscal events.

The tax would apply from 4 November 2019 to all UK stationary installations currently participating in the EU ETS. The aviation sector would not be subject to the Carbon Emissions Tax. Aviation operators would still be obliged to comply with greenhouse gas Monitoring Reporting and Verification requirements throughout 2019.

Environment Bill (UK)

I posted months ago about HMG proposal for a new Environment Bill. There has not been an Environment Bill since 1995.

Progress to date has been weak, and the aspects that were published so far related only to the Governance and Principles aspects.

Today, 23rd July, the DEFRA Secretary has published an updated Policy Statement (of intentions) – here.

Note : Environment is a policy area that is devolved to the regional nations, so the legislative proposals below would apply in England only. Scotland, Wales and Northern Ireland would decide themselves whether and what to follow.

Note : this Statement identifies the Environment Bill will be introduced in the second Parliamentary Session (we are still in the First).

Air quality

(1) Legislation on key measures in the Clean Air Strategy – sharing responsibility for tackling air pollution (across local government structures and with relevant public bodies), plus enabling local government to tackle emissions from domestic burning.

(2) Powers for government to mandate recalls of vehicles and machinery, when they do not meet relevant legal emission standards.

Nature

(3) Nature policy to have a local community focus – a mandatory approach to biodiversity net gain requiring developers to ensure habitats for wildlife are enhanced, with a 10% increase in habitat value for wildlife compared with the pre-development baseline (national infrastructure projects excepted – we will continue to work to establish potential approaches to achieving biodiversity net gains for nationally significant infrastructure projects and marine development, which remain out of scope of biodiversity net gain in the Bill).

(4) Re net gain, planning and the future Environmental Land Management system (replacing agricultural land subsidies) – a new statutory requirement for Local Nature Recovery Strategies. The aim is for these strategies to help to map out important habitats and opportunities for the local environment to be improved, linking communities’ knowledge and priorities with national environmental objectives.

(5) A new duty on local authorities to consult with local communities to ensure that consultation takes place when a street tree is to be felled.

(6) Legislation on conservation covenants – voluntary agreements between a landowner and others (for example, a conservation charity) to help deliver positive local conservation.

Waste

(7) A series of measures that will fundamentally change the way government, businesses and individuals produce and consume products (this will be a big change).

(8) New legal powers to allow government to set resource-efficiency standards for products, driving a shift in the market towards products that are lasting, can be repaired and can be recycled. Plus clear labelling to enable citizens to make fully informed purchasing decisions.

(9) New powers to introduce Extended Producer Responsibility schemes – for packaging, producers will pay the full net cost of dealing with their packaging waste to incentivise recyclability in its design (this is in line with other countries). At the moment, producers currently only pay about 10% of these costs. This will be a fundamental change to the Packaging and Packaging Waste Producer Responsibility Law.

(10) Legislation to modernise the government’s powers to set producer responsibility obligations, extending them to prevention and redistribution of waste, in particular tackling food waste where there is no Legislation in England.

(11) A simplified approach to recycling across local authorities, making it simpler for the public to recycle. A consistent set of materials will need to be collected from all households and businesses in England, with clearer labelling on packaging.

(12) New powers to enable deposit return schemes, particularly dealing with plastic waste. Plus a new power to be able to introduce charges for specified single use plastic items. (Note, there is new EU Law in this area, I posted about recently).

(13) The Litter Strategy commits to review the mechanism by which councils and other land-managers can be held to account for maintaining their land to the standards set out in the Code of Practice. This includes the current section 91 Environment Protection Act process and other options, taking into account the impacts on local authority prioritisation and costs, the court system and the exchequer.

(14) A series of measures unspecified) to improve the management of waste, enabling better use of resources and to reduce the risk of economic, environmental and social harm.

Water

(15) Legislation to strengthen Ofwat’s powers to update water companies’ licences – in particular bringing the way in which water companies appeal Ofwat decisions in line with that for other utility regulators.

(16) New powers to direct water companies to work together on how they will meet current and future demand for water; making planning more robust, even in drought conditions and/or in areas of water stress, for example by working jointly to transfer between catchments when needed.

(17) A new power to enable future updates to a list of harmful chemicals which must be tackled to protect the aquatic environment.

Building Safety (UK)

I wrote quite some time ago, about HMG review of cladding and fire safety aspects following the Grenfell Tower Fire.

Yesterday (18th July) HMG made the following written statement –

Building safety update

My Rt Hon. Friend, the Secretary of State for the Ministry of Housing, Communities and Local Government (James Brokenshire) has today made the following Written Ministerial Statement.

I wish to update the House before the Summer recess on building safety, including: my expectations of building owners on the removal of unsafe Aluminium Composite Material (ACM) cladding; the steps this Government is taking on the remediation of existing buildings; wider updates on testing programmes; and early action on delivering the recommendations to reform the building safety regulatory system.

My priority is that residents should be safe – and feel safe – in their homes. All buildings with ACM cladding have had interim safety measures put in place as soon as they have been identified, and Fire and Rescue Services are conducting inspections to ensure those measures remain in place.

However, too many people have been living in fear for too long because of the slow progress being made by those responsible for making their buildings permanently safe. While many building owners have rightly taken action, there are still a number of residential buildings across the public and private sectors with unsafe ACM cladding where remediation has not yet started.

I am clear that this situation is unacceptable. That is why I want to set out my expectations on the timing of remediation of buildings with unsafe ACM cladding. Given the £600 million of funding this Government has made available, there is no further excuse for delay.

In the social sector, other than a small handful of exceptional cases, remediation will be completed by the end of the year.

In the private sector, progress has been slower, which is why this Government took action by announcing a £200 million fund. By the end of December 2019, any building in the private sector which I have not been assured is permanently safe should have a clear commitment to remediation, with a start and finish date agreed. Where no such safety assurance or plan has been brought forward by the end of December, building owners can expect enforcement action to be taken. My expectation is that, other than in exceptional circumstances, building owners should complete remediation within six months of agreeing a plan – by June 2020.

I acknowledge that this Government also has a role to play in ensuring that remediation is undertaken. That is why, on 9 May I announced that this Government was introducing a new £200 million fund to unblock progress in remediating private sector high-rise residential buildings. My Department has been in contact with relevant building owners or managers to enable them to start preparatory work on an application to the fund. My Department will today publish a prospectus setting out the scope and eligibility criteria for the fund, how to apply and the timetable for submitting applications.

To help facilitate remediation, I would like to clarify the planning treatment of ACM cladding replacement works. Planning permission may not be required where the external appearance of a building is not materially altered by replacement cladding. Approval for recladding is only needed if the work amounts to “development” within the meaning of section 55 of the Town and Country Planning Act 1990 or is required within the terms of a previous planning permission.

Local planning authorities should take a proportionate approach and work proactively with building owners to identify whether planning approval is necessary. I strongly encourage developers to engage with the local planning authority at the earliest opportunity during development of their remediation plans.

Where a planning application is considered necessary, pre-application engagement can help to resolve any issues and assist local planning authorities in issuing timely decisions. Local planning authorities should also take a proportionate approach to the amount of information needed to support an application and consider carefully whether charging a fee for their early advice is appropriate in these cases. Decisions on applications should be made as quickly as possible and can be made as soon as the time limit for consultation has expired. Building owners would also need to ensure that the work complies with Building Regulations and that they obtain the necessary approval.

My Department has also commenced a data collection exercise which will enable the Department to build a complete picture of external wall systems in use on high rise residential buildings. We have asked local authorities and housing associations to identify external wall materials and insulation on all high-rise residential buildings 18 metres and over.

On 11 July a fire test in accordance with British Standard 8414 was carried out at the laboratories of the Fire Protection Association. This test was commissioned by my Department on the advice of the Independent Expert Advisory Panel and involved a cladding system consisting of a Class B, fire retardant, high pressure laminate rainscreen with a non-combustible rock fibre insulation. This is part of an ongoing, systematic investigation into the fire risks from non-ACM cladding systems. I can confirm that this system met the relevant pass criteria and that the Expert Panel are satisfied that this specific system does not present a risk to public safety. Detailed advice from the Expert Panel on high pressure laminate cladding systems is also being published by my Department today.

My Department has also continued its investigations into fire doors. We have already made available the results of a sample of Glass-Reinforced Plastic composite fire doors tested by my Department. Following the advice of the Expert Panel, Government expanded the testing to include timber fire doors. Today I am making available the results from the testing of a sample of timber fire doors from 25 manufacturers. I am pleased to report that all have succeeded in meeting the required 30-minute fire performance standard. The sample included a range of glazed and un-glazed fire doors with a variety of hardware and were tested on both sides of the door. The summary results of the timber fire door tests to inform building risk assessments are now available at: https://www.gov.uk/guidance/fire-door-investigation

As a result of our tests, the Expert Panel have concluded that they do not believe there is a performance concern with timber fire doors across industry, where they are purchased directly from the manufacturer and produced to specification.

It is important to be clear that, although the results of our testing provide assurances for residents who have concerns about their fire doors, it is for building owners to assure themselves that the fire doors they install are fit for purpose and have the required documentation and certification. Guidance for building owners who are replacing flat front entrance doors can be accessed at: https://www.gov.uk/government/publications/advice-for-building-owners-on-assurance-and-replacing-of-flat-entrance-fire-doors

Since 2007, building regulations guidance has stated that all new blocks of flats over 30 metres should have sprinklers. In 2013, the Department wrote to all local authorities and housing associations, asking them to consider a Coroner’s Report recommendation that they should consider retro-fitting sprinklers in existing residential buildings over 30 metres.

The Housing Revenue Account borrowing cap was abolished on 29th October 2018, giving freedom to local authorities to help finance unforeseen capital repairs programmes, such as retro-fitting sprinklers, as well as build new homes. It is for building owners to seek professional advice and decide whether to fit sprinklers, on the basis of their assessment of the particular risk faced in their buildings.

At the heart of the regulatory reform is our intention to establish a regulator to oversee the safety and performance of all buildings. We are working closely with the Health and Safety Executive (HSE), who are sharing their considerable regulatory experience and expertise to help us shape the functions of the new regulator, alongside other members of our Joint Regulators Group. My Department is working with partners to develop proposals to allow the regulatory functions to exist prior to the new legislative regime being in place. We are similarly seeking the advice and input of the HSE on implementing the new regime following legislation.

This statement has also been made in the House of Commons: HCWS1757

UK Brexit Guidance Update (UK Brexit)

Exit day is 31st October.

Yesterday (18th July) HMG updated the guidance it had issued before the first exit day, to apprentice providers and persons operating further education collages – here.

[it also updated the guidance for schools]

This Blog does not cover employment law, or immigration law.

The Guidance is useful in that it summarises a range of matters, from travel and visas, to food supplies, and the situation for employing people after Brexit.

Please note there is no update to the (February issued) European temporary leave to remain instruction – here.

per the European temporary leave to remain instruction – EU, EEA and Swiss citizens who are granted European temporary leave to remain will be able to stay in the UK for 36 months from the date it is granted. European temporary leave to remain will be a temporary, non-extendable immigration status. It will not give indefinite leave to remain (ILR), lead to status under the EU Settlement Scheme or make EU, EEA and Swiss citizens eligible to stay in the UK indefinitely.

If EU, EEA and Swiss citizens want to stay in the UK for more than 36 months, they will need to apply for an immigration status under the new immigration system, which will come into effect from 1 January 2021. Those who do not qualify will need to leave the UK when their European temporary leave to remain expires.

If you’re an EU, EEA or Swiss citizen who enters the UK before the UK leaves the EU, you’re eligible to apply to the EU Settlement Scheme to continue living in the UK. EU, EEA or Swiss citizens and their families will be able to remain in the UK indefinitely if they are granted settled status under the EU Settlement Scheme.

If you’re an EU, EEA or Swiss citizen who arrives in the UK after the UK leaves the EU but were previously living in the UK before Brexit, you can also apply to the EU Settlement Scheme.

Irish citizens are excluded from the above – Irish citizens will not need to apply for European temporary leave to remain. They’ll continue to have the right to enter and live in the UK under Common Travel Area arrangements.

Food Supplies (per the guidance to apprentice providers, and it’s also in the schools document – similar guidance is in the instructions for hospitals and care homes)

The government has been working to plan arrangements that ensure goods can continue to flow into the UK without significant delays from additional controls and checks. We are continuously engaging with a wide range of stakeholders to support industry preparedness. However, the government does not have control over the checks imposed by EU Member States at the EU side of the border.

The government, including the Department for Education, will continue to work with food suppliers to prepare for a no deal departure from the EU. Colleges have significant flexibilities in terms of how they provide food for students that are eligible for free meals.

We advise that you contact your food supplier(s) if your college procures food directly to ensure they are planning for potential impacts of a no deal scenario. For example, this may include plans to adapt menus to allow for product substitution.

This would also include seeking reassurance on the ability of suppliers to continue to provide nutritious meals and to accommodate special dietary needs and allergens when introducing any substitute products.

Brexit Readiness (Ireland)

UPDATE (10th July) – Northern Ireland Department for the Economy Trade and Investment Data under No Deal is here

Exit day is 31st October (114 days)

Today, Ireland’s Tánaiste and Minister for Foreign Affairs Simon Coveney is due to bring three Brexit memos to Cabinet, including a revised contingency action plan which will be published later in the day. (I will update this post online to link the document). The July updated Plan is here.

NEW: Goods exported from the UK to Ireland will be subject “to a minimum 24 hour notification period” hitting business reliance on roll-on-roll off ferry trade [this was expected]

The contingency plan, circa 100-pages long, is an update of the plan published last December, and then updated in January, before the first Brexit exit day of March 29th. (I posted about this plan at the time). The December plan (with its January update) is accessed here.

Per the Irish Times writing on the subject – It will cover preparations in about 20 areas, including aviation, road haulage, retail, tourism and medicines.

There will also be a memo describing preparations at ports and airports. In the January update preparations had not been fully advanced, a greater amount of detail, can be expected in this July update. We still await details of the measures for the land border with the UK, but these are expected only after October 31st.

Per the Irish Times writing on the subject – According to sources familiar with its content, the memo will approve the permanent structures at airports and ports, including Dublin and Rosslare Europort.

The third memo will outline communications plans required to inform businesses and the public about the implications of a no-deal Brexit.

[if the Ports and Communications memos are published, I will update this post online]

A campaign to prompt holders of UK driving licences to apply for Irish licences is already under way. In addition, information was made available and carried in newspapers on the island of Ireland prior to March to prompt drivers with UK car insurance to obtain Green Cards. This information (licences and insurance) is also set out, but not the subject of a state information campaign, on the UK side, and motor insurance companies have written to customers on the UK side.

The starting point for traders on both sides is EORI registration. EORI registration on the UK aside is still lagging.

The International Road Haulage (Permits) issue on the UK side was eased with the EU’s announcement of the temporary waiver, but this runs out at end of December, and would need to be extended.

The UK issued in March, its proposal for temporary customs arrangements for goods entering Northern Ireland from Ireland – here.