The ‘New’ Standards Regime

A Huntingdonshire Perspective

Presentation to SLCC 1 March 2013by Colin Meadowcroft

Monitoring Officer Huntingdonshire District Council

Topics Quick overview of “new” Standards

Regime Huntingdonshire Code of Conduct Register of Interests Sensitive Interests DPIs & Other Interests Dispensations Investigations & Sanctions Is New Regime Working?

Localism Act 2011

Commencement date for new standards regime - 1 July 2012

After commencement, previous standards regime completely replaced

Standards for England abolished No “Personal Interests” or

“Prejudicial Interests”

Code of Conduct (1) Duty on all Councils to ‘promote and

maintain high standards of conduct by members

Must adopt a Code of Conduct (but Model form not prescribed)

HDC adopted new Code 4 July Council Parish Councils can adopt their own or ‘adopt

’ one based on District Council’s 69 Parishes have adopted (55 HDC; 12

NALC)

Code of Conduct (2)

Code must conform with 7 Nolan principles:-

Selflessness Integrity Objectivity Accountability Openness Honesty Leadership

HDC Code Requirements General Coduct Required:-

Leadership by personal example Must respect others and not bully (NALC) Must not bring Council into disrepute (NALC – Respectful) Must not disclose confidential information (NALC) Must not obstruct access to publicly available information (NALC) Must not use position for personal advantage (NALC) Must comply with Council requirements on use of resources

(NALC) Must exercise independent judgement and provide proper

reasons for decisions Must have regard to advice from Statutory officers and take

account of all relevant considerations Must not do anything to cause Council to act unlawfully

When Does Code Apply? Whenever acting, claiming to act or giving

impression you are acting as a Councillor E.g. Formal meetings (including at site visits

and briefings by officers) When acting as a representative of Council When discharging duties as a Councillor When corresponding with the Council as

Councillor NOT when you are acting in a private capacity

Registers of Interests Monitoring Officer must maintain a Register of

Interests for own Members Register must contain ‘Disclosable Pecuniary

Interests’ (‘DPI’s) Each Council may specify any interests other

than DPI’s to be disclosed (not prescribed) Copy of Register available for public

inspection and published on HDC website All Parish Council registers published on HDC

website & on Parish Website (if exists) Signatures redacted

Sensitive Interests If Councillor has a registrable interest; and The Nature of that interest is such that the MO

considers disclosure could lead to violence or intimidation

Then details excluded from published Register (may state details witheld)

Decision of MO – Justification required If DPI considered at meeting - Councillor must

disclose fact that has DPI – but not detail

Disclosable Pecuniary Interests (1)

Defined by Regulations Similar to previous registrable e.g.

Employment; property ownership and licences; contracts or tenancies with Council; sponsorship; shares (£25k nominal value) in body

with business/land in Council’s area

Disclosable Pecuniary Interests (2)

DPI does not include membership of bodies exercising functions of public/charitable/influencing public opinion*

Main difference – requirement to disclose spouse’s/partner’s interests

Not required to name spouse/partner Not required to show separately

DPI Requirements Member must disclose existing DPI’s on Register within

28 days of election If not already registered Member must disclose DPI at

any meeting where item affecting DPI being considered and notify MO within 28 days

Member must not participate or vote where has DPI – unless obtained Dispensation

If without reasonable excuse a Member fails to comply with above-

Guilty of offence – liable to maximum fine of £5k and disqualification for up to 5 years

Prosecutions only instituted by DPP

Other Interests & Gifts Only DPI’s are defined in the legislation General power for Councils to require ‘other’ interests to be

declared DPI’s extend to interests of spouse/partner, but not other close

relatives HDC Code requires declaration at meeting where decision –

affects the well-being or financial standing of you or a member of your family or a person with whom you have a close association

to a greater extent than it would affect the majority of the Council Tax payers

Code requires gifts & hospitality over £50 (received as a member) to be notified to MO within 28 days and put on Register

Implications of Having Other Interests – HDC Code

These other interests are not on HDC Register

Must be declared at the meeting Do not prevent discussion or

voting Failure to comply is breach of

Code- not criminal offence

Other Interests – NALC Code NALC Code Requirements on Interests more

extensive and restrictive Must register interests relating to or likely to

affect:• Any body to which Councillor appointed by

the Council; or• Any body exercising functions of a public

nature; for charitable purposes; or seeks to influence public opinion (including trade union or political party)

Implications of Having ‘Other’Interests under NALC Code

Member cannot vote Member may speak only if public allowed Member need only declare ‘other’ interest if

not already on Register or notified to M.O. or if speaks on matter

Member must disclose interest in matter relating to financial interest of a friend, relative or close associate (other than DPI); and

Member cannot vote or speak (unless public allowed)

Dispensations If Member has DPI cannot speak or vote on matter unless

obtains dispensation Dispensations granted on specific grounds only:-

so many Members of meeting have DPI’s that it impedes the transaction of the business (i.e. inquorate); or

without dispensation the representation of different political groups would be so upset as to alter the likely outcome of vote;

the dispensation is in the interests of persons living in the authority’s area;

otherwise appropriate to grant a dispensation. Dispensations allow a Member with DPI to speak and/or

vote

Procedure for Dispensations Each relevant authority now deals with own

dispensations HDC-Decision on meeting inquorate & no member of

cabinet - delegated to MO (objective) Others require decision of Standards Committee (or Sub) Adopting Criteria Helpful. Might include e.g.

The nature of the interest- is it trivial or remote? (dispensation more likely)

Does Member have particular knowledge or expertise? (dispensation more likely)

Does significant proportion of public have the same interest?(if so, dispensation more likely)

Would member’s involvement damage public confidence?(if so, dispensation more likely)

Setting Council Tax Is a Dispensation Required?

Previous Code contained statutory exception for specified Prejudicial Interests e.g. setting Council Tax

No similar exemption for DPI’s under new regime

Many Councils (including HDC) have granted ‘General Dispensations’ to all Councillors

Rationale: Member’s Home/Property on Register as DPI – Setting Precept affects that DPI

Dispensations- The Government View Government view- Dispensation unnecessary Brandon Lewis MP – Letter 5 February 2013 –

“Removing Unnecessary Red tape” Whilst DCLG ‘does not issue legal advice’- ‘such

dispensations are unnecessary’ Being Council Tax payer is pecuniary interest-

But not a DPI Council Tax liability applies to population generally-

‘Councillors have no unique position’ May not have been government intention – but not

Declaring DPI potentially criminal offence

Investigations & Sanctions District Council required to put in place procedures to

investigate standards complaints Arrangements must include consultation with an

‘independent person' District Council still responsible for allegations against

parish Councillors No specific powers to require Members to comply with

any investigation No specific powers to require compliance from parish

councils and parish councillors No longer power to suspend Main sanction available censure/publicity

Is New Regime Working? Government keen to avoid bureaucratic gold

plating- Criminal sanctions for serious failures to declare DPI’s Remainder - remedy at ballot box

Committee on Standards in Public Life (CSPL) Report January 2013

CSPL welcomed “intention behind Localism Act” to encourage a greater sense of local responsibility for standards

CSPL Expressed 2 particular concerns:- Only real sanctions – Censure & Criminal Prosecution – Not sufficient Previously allegations considered by standards committees,

independently chaired and with independent members. Now requirement to “consult” with Independent Person

Not sufficient assurance that justice is being seen to be done