The ‘ New ’ Standards Regime A Huntingdonshire Perspective

The ‘New’ Standards RegimeA Huntingdonshire Perspective Presentation to SLCC 1 March 2013 by 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

The ‘ New ’ Standards Regime A Huntingdonshire Perspective