A series of documents, updates and questions and answers have been issued regarding the 2014-2020 European Structural and Investment Funds Programme and the response to COVID-19, and appear on the MHCLG website.
State Aid
April 6th, 2020 by James Goudie KC in Capital Finance and CompaniesThe House of Lords EU Internal Market Sub-Committee record that the Government lacks a clear understanding of what State Aid provisions it signed up to in the Protocol on Ireland/Northern Ireland, that the details of its subsidy control regime remain unknown, and that the role of the CMA in the future subsidy control framework remains uncertain.
Public Works Loan Board (“PWLB”)
March 16th, 2020 by James Goudie KC in Capital Finance and CompaniesHM Treasury has published a consultation document on “Future Lending Terms” fpr the PWLB. The Foreword states (emphasis added):-
Borrowing
February 25th, 2020 by James Goudie KC in Capital Finance and CompaniesFollowing Consultation in 2016, the Public Works Loan Board (“the PWLB”) has been abolished by the Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020, S.I. 2020/176.
Pooled Investments and Accounting
February 4th, 2020 by James Goudie KC in Capital Finance and CompaniesA new Regulation 24K has been added to the Local Authorities (Capital Finance and Accounting)(Wales) Regulations 2003, providing that a Welsh local authority must not charge an amount in its revenue account to reflect any fluctuation in the fair value of an investment in a pooled investment fund. Rather, such amounts must be recorded in a separate account, established, and used solely, for that purpose. This corresponds with Regulation 30K of the English 2003 Regulations, inserted in 2018.
State Aid
January 20th, 2020 by James Goudie KC in Capital Finance and CompaniesIn Case T-257/18, Iberpotash S.A. v European Commission, CJEU General Court Judgment on 16 January 2020, the first issue was whether there was a transfer of State resources. The Court said:-
Companies: General meetings and torts
April 9th, 2019 by James Goudie KC in Capital Finance and CompaniesIn Schofield v Jones (2019) EWHC 803 (Ch) the Court exercised its power under Section 306 of the Companies Act 2006 to direct the holding of a Company General Meeting with a quorum of only one. The purpose of the Meeting was to remove one of two members as one of four Directors. That Director was alleged to be in breach of fiduciary duty and had lost the confidence of the other Directors. That Director can and had thwarted the holding of a General Meeting by not
State Aid
April 1st, 2019 by James Goudie KC in Capital Finance and CompaniesCase C-405/16P, Germany v Commission, CJEU Judgment on 28 March 2019, is concerned with aid supporting renewable energy. The CJEU said:-
Local Authority Investments
March 4th, 2019 by James Goudie KC in Capital Finance and CompaniesThe Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2019, S.I. 2019/396, make amendments to the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (S.I. 2003/3146) (“the 2003 Regulations”). The technical amendments define the investments that shall not be treated as capital expenditure within local authority accounts. They also amend the categories of local authority investments in relation to which fluctuations in fair value are subject to specific accounting treatment.
Under the 2003 Regulations, local authorities must follow CIPFA’s Code of Practice on Local Authority Accounting in the United Kingdom, as amended or reissued in every financial year. The Government can modify local authorities’ duties to follow the proper practices set out in the Code on Local Authority Accounting, by including specific provisions in the 2003 Regulations. It also has a specific power to provide through regulations which expenditure of local authorities is, or is not, accounted for as capital expenditure. The 2003 Regulations make provision for capital finance and accounts under Part 1 of the Local Government Act 2003 (“the 2003 Act”). Regulation 25 of the 2003 Regulations provide for expenditure which is, and which is not, to be treated as capital expenditure for the purposes of Chapter 1 of Part 1 of the 2003 Act. Since 2004, Regulation 25 has excluded local authority investments in money market funds from treatment as capital expenditure in local authority accounts. Regulation 30K of the 2003 Regulations provides for specific accounting treatment for fair value gains and losses of local authority investments in pooled investment funds, including money market funds.
Capital Finance
November 27th, 2018 by James Goudie KC in Capital Finance and CompaniesThe Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2018, SI 2018/1207 amend the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (the “2003 Regulations”). Regulation 3 amends regulation 23 of the 2003 Regulations in order to allow a local authority to use capital receipts to make a payment to an employee or officer under new regulation 30AA. Regulation 4 inserts a new regulation 30AA into the 2003 Regulations.