Public Sector eBulletin, November 2009

   
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DMH Stallard Public Sector eBulletin
In this issue:
Revenue Generation and Protection - At the top of the Public Sector Agenda
Recovery of Damages from Housing Tenancy Fraudsters
Government to Offer Financial Incentive for Carbon Reduction Commitment
One Small Step For Regeneration?
It's not easy being green...
Wellbeing Powers: To Share or not to Share?
Registered Social Landlords: Possession Claims and Human Rights
Equality Bill: Harassment by Third Parties
Compromise Agreements - A lesson learned
Age Discrimination and Objective Justification



Tel 01293 60 5061
jenny.thorp@dmhstallard.com

 

Welcome to the November edition of the DMH Stallard Public Sector eBulletin.

With the ever increasing demands on public sector spending and how such organisations are under pressure to deliver value for money, we take a close look at ways in which revenue can be protected and identify some, often overlooked, methods to generate new streams of income.

We also examine the recent Audit Commission report "Protecting the Public Purse" who estimate that 2.5% of the total stock of council housing in London is subject to illegal sub-letting and the uncertainty surrounding local authority's "Wellbeing Powers" and its knock-on effect on shared services and procurement procedures.

Other articles feature important issues such as the impending Carbon Reduction Commitment Energy Efficiency Scheme (CRC) due to come into force in April 2010; the recently published "Regeneration Manifesto"; and some landmark Employment Tribunal cases; all of which will have implications on the way public sector organisations operate.

Finally, we are once again attending the ACSeS Conference 2009 due to take place in Leeds next week where we look forward to meeting many of you to discuss these issues and many more.

Jenny Thorp
Partner, Head of Public Sector

To register for further newsletters and DMH Stallard updates please click here

There has never been a time when revenue protection and the need to identify new streams of income has been so important within the public sector. The current economic landscape places ever increasing pressure on such organisations and particularly local authorities to deliver best value for money when providing services internally or to the public.

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In September 2009 the Audit Commission’s report “Protecting the Public Purse” estimated that 2.5% of the total stock of council housing in London is subject to illegal sub-letting. Investigations at a number of London Boroughs indicate that the proportion may be much higher, perhaps up to 5 - 10% of the total stock.

 

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The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) has been on the horizon for many years but, because of its complexity, has received little publicity and awareness remains low among the organisations that will be affected by it. Its purpose is to reduce Carbon Dioxide (CO2) emissions and increase energy efficiency by providing a financial incentive to improve performance. It is expected to come into force in April 2010, so time is fast running out to prepare for it.

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Earlier in the year, the British Property Federation, backed by the Homes and Communities Agency, Local Government and the private sector, including major retailers such as Tesco and John Lewis, published its “Regeneration Manifesto”.

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The Government has long made its commitment to tackling climate change well known, and no more so than in the introduction of the Code for Sustainable Homes in 2007. However, a recent planning Appeal Decision demonstrates that it is increasingly difficult for Local Authorities to support and encourage the Government’s ‘green’ policies in grating planning permissions.

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Greater value for money and efficiency are key objectives for all local authorities, particularly in light of the planned public sector spending cuts. However, when it comes to innovative cost-saving mechanisms such as service sharing, local authorities must take care not overstep their powers.

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Local authority landlords will be familiar with the concept of human rights being relied upon in defences to possession proceedings. Until the recent Court of Appeal decision in London & Quadrant Housing Trust v R (on the application of Weaver) & Equality and Human Rights Commission [2009} EWCA Civ 587, registered social landlords (“RSLs”) were unexposed to such challenges as they were not considered to be public bodies and therefore not within the Human Rights Act 1998 (“the 1998 Act”).

 

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A recent case involving Surrey County Council has highlighted the potential exposure of employers to claims arising from a failure to protect staff from harassment within the workplace.

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In Gibb v Maidstone and Tunbridge Wells NHS Trust, the employee was the Chief Executive of the Trust. Ms Gibb left her post after an outbreak of the superbug Clostridium Difficile at the NHS Trust which was linked to the deaths of many patients. Ms Gibb had been employed with a basic annual salary of £150,000.

 

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In a recent case, the EAT have considered the question of objective justification in an age discrimination claim. Under the Age Discrimination Regulations, unlike other strands of discrimination, both direct and indirect discrimination can be justified provided the employer can show that the discriminatory treatment or provision is “a proportionate means of achieving a legitimate aim”.

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