Legal Practice Notes

This Practice Note looks at exclusivity within contract negotiations. It covers negotiations and agreements to agree, exclusivity or lock-out arrangements, the obligation to negotiate in good faith, options, rights of first refusal or pre-emption, and break fees. For a template exclusivity agreement, see Precedent: Exclusivity agreement—commercial contracts. Negotiations and agreements to agree Talks between parties to reach and close a transaction can be protracted, complex and subject to numerous amendments to terms. Considerable time and expense, including lawyers’ and accountants’ fees, are often incurred, which may ultimately be wasted if consensus is not reached and the deal is not finalised. Circumstances may shift owing to external influences, and findings from enquiries can alter the value of the subject of the deal as well as each side’s bargaining position. Where parties are contemplating a collaboration, joint venture or joint tender, there is frequently a period of due...

New plan-making system in England under the Levelling-up and Regeneration Act 2023 The Levelling-up and Regeneration Act 2023 ( LURA 2023) brings major reforms in England to the plan-making framework in Part 2 of the Planning and Compulsory Purchase Act 2004 ( PCPA 2004), taking effect on 25 March 2026. Related secondary legislation, also operative from 25 March 2026, sets out detailed procedural rules. Collectively, this is termed the ‘ Current Plan- Making System’. Although the Current Plan- Making System applies in England from 25 March 2026, transitional measures mean the PCPA 2004 regime, without the LURA 2023 amendments (the ‘ Legacy Plan- Making System’), will still govern: in Wales; and development plan documents being produced under the legacy regime in England, provided they have been submitted to the Secretary of State for examination by 31 December 2026. Where that deadline cannot be met, the plan must...

The policy background In 2012, the first edition of the National Planning Policy Framework (2012 NPPF) took effect in England. It obliged local planning authorities ( LPAs), among other things, to plan to meet the full, objectively assessed requirement for both market and affordable homes within their boundaries. They were expected to use their evidence base so the Local Plan met the full, objectively assessed housing need across the housing market area, insofar as this aligned with the Framework’s policies, and to identify key sites critical to delivering the housing strategy over the plan period. This represented a significant change in policy—previously there was no obligation to assess needs objectively with a view to planning to meet them. The purpose of this shift was to boost significantly the supply of housing (para 47 of the 2012 NPPF). For further detail on the...

Housing delivery Over many years, the term local housing company ( LHC) has been used in differing ways for housing delivery vehicles. Its earliest post- Housing Act 1996 usage referred to large scale voluntary transfers of urban estates to a company with equal representation from the local housing authority ( LHA), tenants and independent members, which often secured government support, for example from the then Estates Regeneration Challenge Fund ( ERCF). See Practice Note: Housing stock transfer. The label resurfaced in July 2007 in the Housing Green Paper, ‘ Homes for the future: more affordable, more sustainable’. As conceived by English Partnerships (later the Homes and Communities Agency and now Homes England), it described a 50:50, long-term corporate joint venture between an LHA and a private sector partner to develop local authority land. Today, LHC is commonly applied to independent,...

For a comprehensive record of legislation, guidance, consultations and other developments relating to local government reorganisation ( LGR), see Practice Note: Local government reorganisation ( LGR)—tracker. What is local government reorganisation? LGR describes the reshaping of a local authority’s structure, boundaries and functions. This commonly entails: changes to the structure and boundaries of local authority areas the modification of existing local authorities, the abolition of certain local authorities and the creation of new successor local authorities the transfer of functions, staff, property, rights and liabilities to successor local authorities In England, the principal enabling framework for structural and boundary change is Chapter 1 of Part 1 of the Local Government and Public Involvement in Health Act 2007 ( LGPIHA 2007). An important operational notion is the ‘reorganisation date’, generally set out in the relevant structural changes order and applied throughout the...

The Auditor General for Wales is responsible for overseeing audits of the accounts of local government bodies in Wales as part of their overall duties for public service audit. The Public Audit ( Wales) Act 2004 ( PA( W) A 2004) introduced separate arrangements for local government in Wales, ending the Audit Commission’s role in the principality. However, much of PA( W) A 2004 remained aligned with the local government model set out in the Audit Commission Act 1998, retaining many long-standing special provisions that have applied in local government for many years and that are underpinned by a substantial body of supporting case law, particularly in relation to the auditor’s additional powers to act and the rights of the public under audit. Under PA( W) A 2004, Audit Wales was appointed as the auditor to local government bodies and made use of firms to...

The Local Government Act 1974 ( LGA 1974) The Local Government Act 1974 ( LGA 1974) created a Commissioner for local administration, commonly referred to as the LGO, and that term is used throughout this Practice Note. This Practice Note outlines the LGO’s statutory functions, its jurisdiction—including matters it cannot investigate—together with its powers and procedures. It should be read in conjunction with Practice Notes: Maladministration—complaints and Maladministration—investigations and reports. The LGO’s mission statement is ‘ Remedy injustice—help improve local services.’ The LGO’s strategic objectives are to: ensure the service is straightforward to find and simple to use deliver redress for injustice through impartial, rigorous and proportionate investigations apply learning from complaints to help improve local services be accountable to the public and use our resources efficiently The LGO must prepare an annual report on the discharge of its functions in relation to local authorities and present it to those...

This year’s annual summary highlights many of 2017’s major developments and also looks ahead to what 2018 may well bring. It covers the social housing and governance fallout from the Grenfell Tower disaster, alongside key updates in education, children’s social care, health care and related licensing. There is also news on Lexis Nexis®’s content, featuring notable developments from the past year and outlining what is planned for the next 12 months. Reviewing 2017 Social Housing/ Governance What happened? On 14 June 2017, Grenfell Tower in the west London Borough of Kensington and Chelsea ( RBKC) was engulfed by fire, causing the deaths of 71 people, the serious injury of many others, and leaving several hundred residents homeless. What are the key implications? Grenfell has become a defining moment in the provision of social housing and in the accountability of local authorities for the services they deliver. The...

This Practice Note sets out guidance on the idea of ‘local connection’ as contained in section 199 of the Housing Act 1996 ( HA 1996) for England and section 81 of the Housing ( Wales) Act 2014 ( H( W) A 2014) for Wales, as amended by the Homelessness Reduction Act 2017 ( HRA 2017) with effect from 3 April 2018. The concept supports local housing authorities ( LHAs) in handling housing applications by allowing referrals to other LHAs where an applicant lacks a local connection with the authority first approached. Its purpose is to avoid any single LHA being overwhelmed by applications. This Practice Note also outlines the relevant legislation and guidance in both England and Wales. Statutory guidance for England was published on 22 February 2018 to coincide with HRA 2017 coming into force on 3 April...

Across the UK, waste originates from many streams, including the public sector, commercial enterprises, industry, agriculture, mining, forestry, fishing and households. Local authorities ( LAs) have statutory responsibilities to arrange the collection and disposal of household waste within their boundaries. To fulfil this, they provide householders with services such as kerbside collections, bulky item pick-ups, ‘bring banks’—unmanned points with containers for recyclables—and household waste recycling centres ( HWRCs). LAs are also required, when asked, to arrange the collection of commercial waste from premises in their areas and to keep highways and roads free from litter and refuse. Across the UK, devolved administrations determine waste management strategy and policy, meaning each nation sets its own targets and approaches for monitoring progress. Duty to collect waste Subject to certain exceptions, waste collection authorities ( WCAs) in England and Wales are required to arrange the...

What is ? Local authorities ( LAs), like the wider public sector, are required to run their activities within set budgets. With spending limits broadly predetermined, they should ensure actual expenditure closely aligns with the budget. If unforeseen pressures arise that risk overspending, or, in rare cases, unlawful budget setting or unremedied General Fund deficits, LAs and their statutory proper officers are duty-bound to intervene and restore compliance. Setting the budget and putting in place robust monitoring is among the most critical financial disciplines for LAs, underpinning sound stewardship of public funds. With firm controls, the likelihood of material over or underspends should be low. Where controls are weaker, significant variances can emerge. Financial management sits at the heart of an LA’s corporate governance; it is a core responsibility for every manager, not merely a task for accountants. Accordingly, senior management and leading members across the...

When do local authorities investigate environmental offences? Environmental offences encompass a wide array of unlawful activities that impact our surroundings. Local authorities usually take the lead on investigating, enforcing and prosecuting the less serious breaches. In England and Wales, duties can overlap between local authorities, the Environment Agency ( EA), Natural England ( NE) and Natural Resources Wales ( NRW). In Scotland, investigations into environmental crime are carried out by the Scottish Environment Protection Agency ( SEPA). For guidance, see: Practice Note: Environmental prosecution and enforcement policy Practice Notes: Environment Agency—powers to investigate environmental crime; and Environment Agency ( EA)—powers of entry Practice Note: Natural England—powers to investigate environmental crime Practice Note: Natural Resources Wales—powers to investigate environmental crime Practice Note: Scottish Environment Protection Agency—powers to investigate environmental crimes Where a statute does not expressly assign...

FORTHCOMING CHANGE : On 13 October 2025, the Ministry of Housing, Communities and Local Government ( MHCLG) opened a consultation on enhancements to the Local Government Pension Scheme ( LGPS) in England and Wales. Among other measures, it sets out a reset of Fair Deal protections, bringing the scheme into line with the 2013 Fair Deal guidance and phasing out the use of ‘broadly comparable’ pension schemes for future outsourcing, except in limited exceptional cases. Rather than relying on admission bodies, a new default ‘deemed employer’ approach would allow all staff compulsorily moved under TUPE to keep uninterrupted LGPS membership, with the original Fair Deal employer remaining accountable for pensions. These safeguards would roll forward through re-tenders and later transfers, protecting access for ‘protected transferees’ and, where the employer chooses, for new starters on the contract. For members currently in broadly...

This Practice Note offers hands-on guidance for those working within a local authority in England or Wales on dealing with licensing fees and levies. Local authorities may, of course, be required to administer a wide range of licences or approvals, covering licences for the sale of alcohol and the provision of regulated entertainment, as well as taxi licences, and licences for street trading. It is not intended to give detailed advice on setting and/or recovering fees for every licensing regime; instead, it provides broad direction on the principal issues that should be taken into account. Accordingly, it is intended as a practical overview rather than a comprehensive manual for practitioners across England and Wales. Licensing fees and levies Licensing fees broadly fall into three distinct categories: fees fixed by statute, which individual authorities cannot vary fees determined locally to meet the costs of...

This Practice Note This Practice Note outlines the legal powers permitting councils to set up commissioning models for services, as well as Local Enterprise Partnerships ( LEPs). It further reviews the grounds for taking part in external arrangements, for example via Strategic Partnerships, to carry out certain functions. The Practice Note additionally addresses council powers and obligations when joining forces with neighbouring authorities through shared services arrangements; when collaborating with other public bodies, including the NHS; and where there is a statutory requirement to co-operate in delivering services. It also highlights the constraints that might arise or restrict their ability to proceed. Working alongside external organisations is not a new concept in local government. In recent years, it has become increasingly necessary for local authorities to participate in a wide variety of different partnership arrangements of various types where...

Large scale voluntary v small scale voluntary transfers Large scale voluntary transfer ( LSVT) refers to moving all, or a significant proportion, of a local housing authority’s ( LHA) dwellings to a typically newly formed private registered provider ( RP) of social housing, which is entered on and overseen by the Regulator of Social Housing ( RSH) in England. See Practice Note: Regulation of social housing in England. An LSVT ordinarily involves the disposal of 500 or more occupied and leasehold homes by the authority. An LSVT may cover the entire existing portfolio held by an LHA, or only part of it; the latter is termed a partial stock transfer by practitioners in practice. A small scale voluntary transfer ( SSVT) means transferring 499 or fewer occupied and leasehold units usually within five years or less. An LHA proposing an SSVT must broadly follow the same...

ARCHIVED: This Practice Note has been archived and is not maintained. Background Private finance initiatives ( PFIs) have allowed local authorities to form agreements with private sector partners to deliver new and/or upgraded capital assets (for example, infrastructure) together with a range of associated and complementary services. Central government departments have offered financial support towards the capital cost component of PFI schemes and projects. In December 2012 the PFI contracting programme closed and a new model of public–private partnership, termed ‘ PF2’, took its place thereafter. This note addresses PFI, with only limited mention of PF2, as housing has so far not been included within the categories of projects approved under PF2. Under housing PFI contractual arrangements, local housing authorities ( LHAs) enter into contracts with consortia of private sector companies to design, construct, improve, finance, manage and maintain the social housing stock...

This Practice Note outlines the practical issues that local authority landlords should consider when confronted with a housing disrepair claim in England. It explains the foundation for a repair claim and the practical steps to take when managing a claim, including whether the matter could be addressed through alternative dispute resolution outside the court process. It also covers the Awaab’s Law regime implied term and the new statutory time frames for local authority landlords to investigate and remedy specified emergency and HHRS hazards. The basis for a disrepair claim It is essential to understand the grounds on which a claim can be brought, together with some basic procedural points. Disrepair claims arise principally under contract and statute, and the basis of each is summarised below. Where there is a tenancy agreement, the claim will typically be for breach of contract. A copy of the tenancy...

What is a flexible tenancy? Introduced by the Localism Act 2011, a local authority may grant a flexible tenancy where: the tenant has previously lived in a council property under a family intervention, demoted or introductory tenancy prior written notice has been given confirming the tenancy will be flexible a landlord has granted a secure tenancy for a fixed term of not less than two years Once an authority has put in place a tenancy strategy or an interim policy, it may offer flexible tenancies instead of periodic secure tenancies. Each individual authority determines whether it will use flexible tenancies and in what circumstances: a flexible tenancy is a kind of secure tenancy for a fixed term of at least five years, or in exceptional cases, for a minimum of two years the principal distinction from a periodic secure tenancy is that a...

This Practice Note sets out the requirements and flags the principal matters concerning the financial statements and reporting for LAs. What is financial accounting in brief? Local authorities ( LAs) are highly complex organisations with intricate and numerous transactions that must be properly accounted for. In 2009, HM Government chose to implement International Financial Reporting Standards ( IFRS), the framework used by FTSE 350 companies and widely regarded as the ‘gold standard’. These standards are extensive, detailed and highly rules‑driven, running to well over 2,000 pages in total. In addition, LAs must also closely follow the Chartered Institute of Public Finance and Accountancy ( CIPFA) Accounting Code of Practice, updated on an annual basis each year. The Code adopts IFRS as specified, then makes changes by introducing statutory overrides and other adjustments so that the effect of IFRS accounting is not charged to the General Fund and,...