Part 9 - Code of Conduct for Members

Introduction

Purpose

Local government has a key role to play in society. It is uniquely placed to lead communities and serve local people. However, to do so effectively there needs to be a bond of trust between those in public life and the people they serve. Members therefore need clear guidelines to enable them to work confidently within the boundaries set by the Government and the reasonable expectations of the public.

The Government has therefore developed a model code of conduct for Councillors and Co-opted Members of the local authority, which has been approved by Parliament. Each local Council is required to develop and adopt its own code incorporating the mandatory provisions from the national model

In accordance with advice from the Standards Committee, the national Model Code of Conduct has been adopted without amendment by the Council and forms the basis of this document.

Context

However, the Code is just one part of a complete framework designed to enable Councils to develop a culture that places an appropriately high value on ethical values and conduct.

There are 5 main elements of this framework. They are:

1. a set of general principles, approved by Parliament, to govern the conduct of councillors and co-opted Members of local authorities. The Principles of Conduct for Members are set out in full on page 4 and 5.

2. the Code itself which incorporates the general principles

3. a standards committee established in each local authority to support and encourage the achievement of high standards of conduct.

4. a national body, the Standards Board for England, to oversee the investigation of alleged breaches of the code of conduct. It will decide whether there has been any failure to comply with the code and, if so, what action should be taken.

5. a statutory code of conduct for local government employees, which forms part of their terms and conditions of employment.

Overview of the Code

Building upon the general principles of conduct set out on page 4 and 5, the Code covers the key rules for Council Members and Co-opted Members.

  • Paragraphs 1.1 to 1.4 deal with the scope of the Code –what activities it covers and when and to whom it applies.
  • Paragraph 2 requires Members to promote equality and treat others with respect.
  • Paragraph 3 sets out the duty of Members to keep some matters confidential and to be open about others.
  • Paragraph 4 requires Members to do nothing which might bring themselves or the Council into disrepute.
  • Paragraph 5 sets out the duty for Members to use Council resources and their role as a Member for the public good and not for personal gain.
  • Paragraph 6 outlines what Members must do to ensure that they are accountable to the public for the decisions they make.
  • Paragraph 7 states that Members have a duty to disclose breaches of the Code by other Members.
  • Paragraphs 8 to 16 deal with the interests of Members and have three effects. First they require Members to register any personal interests they may  have. Second they specify the difference between a personal interest and a prejudicial interest. Third, they require Members to declare personal interests in meetings at which the matter is to be discussed, and to withdraw from the meeting if they have a prejudicial interest.
  • Paragraph 17 requires Members to register any gifts or hospitality they accept that are worth more than £25.

Status of the Code

The Code of Conduct, as published in this document (green ink) is binding on Members and Co-opted Members: you cannot serve on the Council unless you agree in writing to observe and perform it.

The notes in black ink offer direction to Members but are not themselves binding.

General principles of conduct for Members

These general principles have been designed, by Parliament, to underpin the Code of Conduct adopted in each local authority. You should therefore bear them in mind as you carry out your role as  Member and when applying and interpreting the Code.

You should also note that the principles of:

  • honesty and integrity (principle 2)
  • and the duty to uphold the law (principle 8)
  • apply all the time, not just just when you act in your capacity as a Member.

Moreover, Members should remember that, technically, it is breaches of the Code (rather than a breach of these principles) that can be reported to the Standards Board for England.

1. Selflessness

Members should serve only thepublic interest and should never improperly confer an advantage or disadvantage on any person.

2. Honesty and Integrity

Members should not place themselves in situations where their honesty and integrity may be questioned, should not behave improperly and should on all occasions avoid the appearance of such behaviour.

3. Objectivity

Members should make decisions on merit, including when making appointments, awarding contracts, or recommending individuals for rewards or benefits.

4. Accountability

Members should be accountable to the public for their actions and the manner in which they carry out their responsibilities, and should co-operate fully and honestly with any scrutiny appropriate to their particular office..

5. Openness

Members should be as open as possible about their actions and those of their authority, and should be prepared to give reasons for those actions.

6. Personal Judgement

Members may take account of the views of others, including their political groups, but should reach their own conclusions on the issues before them and act in accordance with those conclusions.

7. Respect for Others

Members should promote equality by not discriminating unlawfully against any person, and by treating people with respect, regardless of their race, age, religion, gender, sexual orientation or disability. They should respect the impartiality and integrity of the authority’s statutory officers, and its other employees.

8. Duty to Uphold the Law

Members should uphold the law and, on all occasions, act in accordance with the trust that the public is entitled to place in them.

9. Stewardship

Members should do whatever they are able to do to ensure that their authorities use their resources prudently and in accordance with the law.

10. Leadership

Members should promote and support these principles by leadership, and by example, and should always act in a way that secures or preserves public confidence.

When does the code apply ?

The Code says:

1.1 Members must observe this code of conduct whenever they:

(a) conduct the business of the authority;

(b) conduct the business of the office to which they have been elected or appointed; or

(c) act as representatives of the authority and references to a member's “official capacity” shall be construed accordingly.

1.2 The Code of conduct shall not, apart from paragraphs 4 and 5(a) below, have effect in relation to the activities of a Member undertaken other than in an official capacity.

Comment:

The Code is binding on Members and co-opted Members. It will apply whenever you carry out any official duties. These include:

  • meetings of the authority or any of its committees
  • meetings of any executive
  • meetings with other Members and officers
  • meetings of any political groups on the authority
  • surgeries for constituents
  • public meetings, area forums or other similar meetings.

But official duties and Council business cannot be artificially confined to formally constituted meetings. It includes any other forum where you are there as a Member.

The Code requires the same standards of integrity and probity in any setting where you might exercise power and influence over Council resources and business. Paragraph 1.2 carries a reminder that parts of the Code may apply even when you are not carrying out official duties at all

The code does not normally apply to activities outside official duties, but there are one or two exceptions, and these are specified in paragraph 4 and 5(a) of the code.

Paragraph 4 deals with conduct that might be expected to bring the Council or the Member or into disrepute.

Paragraph 5(a) prohibits a Member from using their position improperly to confer an advantage (or a disadvantage) on themselves or another.

This recognises that, in practice, the private life of Members may be

  • closely scrutinised and
  • the subject of comment by the media and public.

To maintain public trust, these particular provisions apply to Members wherever and whatever they are doing, and not only when they are acting as Members.

The Code says:

1.3 Where a Member acts as a representative of the authority –

a) on another relevant authority, they must, when acting for that other authority, comply with that other authority’s code of conduct; or

b) on any other body, they must, when acting for that other body, comply with the authority’s code of conduct, except and insofar as it conflicts with any other lawful obligations to which that other body may be subject.

Comment:

The Council is increasingly working as a partner with other bodies in the area. Members may, therefore, be appointed or nominated to serve on the governing bodies of such organisations.

Depending on the nature of the other body, you may still be bound by this code.

If the body is a relevant authority (any authority listed in the box on page 9) ...when you act for that authority you will be bound by their code not this one.

When you act in behalf of any other body ... you are still bound by this code, unless this would be in conflict with legal obligations that apply to that body.

For example, many outside bodies, and in particular, charities and companies, are subject to their own body of law which governs the conduct of their Members.

Normally, there will be little difficulty in complying both with this code and with these other legal requirements.

However, if there is a conflict, the legal obligations of the outside body take precedence.

If you serve on an outside body in your own right and are not representing the Council ... you are bound only by the provisions of this code which apply to Members wherever and whatever they are doing.

List of relevant authorities

  • A county council,
  • A county borough council,
  • A district council,
  • A London borough council,
  • A parish council,
  • A community council,
  • The Greater London Authority,
  • A police authority, including the Metropolitan Police Authority,
  • the London Fire and Emergency Planning Authority,
  • a fire authority constituted by a combination scheme under the Fire Services Act 1947,
  • the Common Council of the City of London in its capacity as a local authority or police authority,
  • the Council of the Isles of Scilly,
  • a joint authority established by Part IV of the Local Government Act 1985,
  • the Broads Authority, or
  • a National Park authority established under section 63 of the Environment Act 1995.

The Code says:

1.4 In this code, “Member” includes a co – opted Member of an authority.

Comment:

The definition of co-opted Member includes any person who is not an elected Member but is otherwise:

  • appointed by the Council to any of its committees or sub-committees, or
  • a representative of the Council on any joint committee or sub-committee, and
  • entitled to vote at such meetings.

Independent representatives on the Standards Committee would fall within this definition of a co-opted Member.

Co - opted Members are expected to adopt and work to the same standards as Councillors.

The Code says:

2 A Member must

(a) promote equality by not discriminating unlawfully against any person;
(b)  treat others with respect; and
(c) not do anything which compromises, or which is likely to compromise, the impartiality of those who work for, or on behalf of the authority.

Comment:

Members must comply with the law on discrimination in two key areas:

  • service delivery, and
  • employment practice.

The Council has two complementary Equal Opportunity policies, one for service delivery issues, the other for employment issues. These policies are designed to incorporate the requirements of this code.

Service delivery

The Council is bound by all the legislation aimed at public authorities. Examples are

  • the Race Relations (Amendment) Act 2000
  • the Human Rights Act 1998
  • the Disability Discrimination Act 1995

These Acts include provisions that govern service delivery.

The Race Relations (Amendment) Act 2000 places a duty on public authorities like the Council to promote race equality

The duty to promote equality is a positive one. It requires the Council to be proactive: to seek to avoid unlawful discrimination before it occurs.

The Human Rights Act 1998 makes it unlawful for public authorities like the Council to breach the European Convention on Human Rights.

The convention includes the right to:

  • a fair hearing
  • respect for private and family life
  • freedom of thought, conscience and religion
  • freedom from discrimination on any ground such as sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status.

The Disability Discrimination Act 1995 protects people with disabilities against unfavourable treatment which cannot be justified. Promoting equality and respect.Code of Conduct for Members

The provisions of the Code mean that each Member (as well as the Council as a whole) has a duty to

  • promote equality
  • not discriminate unlawfully against any person.

Employment Practice

The Council as an employer is also bound by the whole raft of national and European law covering race, sex and disability discrimination. Again the Code means that each Member has a duty as an individual to promote equality and avoid unlawful discrimination.

Moreover Paragraph 2(b) of the Code requires Members to treat others with respect. As a minimum, this would mean avoiding words or actions that would insult or injure the feelings of others.

Of course, the word others includes:

  • other Members
  • Council employees
  • constituents
  • other members of the public, and so on.

Your role as Member puts you in a position of power. The Code requires you to exercise that power with due respect for others. The Code also includes a duty for Members not to compromise the impartiality of those who work for or on behalf of the authority.

Staff are required (in the protocol for Member-employee relations) to:

  • serve all Councillors and not just those of the controlling group
  • support and co-operate with Members whatever their constitutional role, for example, in executive, overview and scrutiny functions.

In addition, the protocol says that officers should expect that Members will avoid using their influence or pressure to get special treatment for themselves or others seeking access to resources or information to which they have no right, or for an improper purpose.

Accountability and openness

The Code says:

3. A Member must not –

(a) disclose information given to them in confidence by anyone, or information acquired which they believe is of a confidential nature, without the consent of a person authorised to give it, or unless they are required by law to do so; nor
(b) prevent another person from gaining access to information to which that person is entitled by law.

Comment:

As a Member you have access to information you need to know to carry out your role as a Councillor. This may include

  • sensitive personal data about people
  • information which is commercially sensitive or critical in negotiations or legal cases
  • other information given to you or the Council in confidence.

The Code requires you to respect such information. You must not divulge confidential information unless:

  • you have the consent of the relevant person, or
  • there is a legal requirement to disclose a matter.

The need for confidentiality would, for example, be over-ridden if you needed to report

  • a suspected breach of the code, or
  • another disclosure in the public interest 1 .

At the same time, you must not prevent another person gaining access to information to which they are entitled by law. To do so would be a criminal offence 2 .

In addition, legal provisions 3 regulate:

  • which meetings are to be
    - open to the public
    - held in private
  • written records of such meetings
  • the persons who are to produce, keep or make such records available.

The Code makes Members personally accountable for any act which prevents people getting access to information to which they are entitled under such provisions.

Further guidance on these issues will follow in due course

1 This might include, for example, things like criminal offences, miscarriages of justice, the endangerment of health or safety, or damage to the environment.
2 Section 100H of the Local Government Act 1972 makes it a criminal offence for anyone intentionally to obstruct a person from gaining access to information to which they are entitled.
3 Section 22 of the Local Government Act 2000 (and relevant regulations).

Honesty and integrity

The Code says:

4. A Member must not in their official capacity, or any other circumstance, conduct themselves in a manner which could reasonably be regarded as bringing their office or authority into disrepute.

Comment:

The code prohibits misconduct which a reasonable person would regard as bringing, either

  • the Council or
  • the office of the Member ... into disrepute.

Disrepute is a term that is open to a variety of interpretations. You must reach your own judgement on the sorts of activities that might qualify.

Ultimately it is up to the Standards Board for England to assess how a reasonable person might view the activity. The Council will monitor the decisions of the Board as they arise and publicise them so as to give guidance to Members.

If you are in doubt, you may also take advice from the Council’s monitoring officer (the Head of Legal and Democratic Services). However, the duty to decide lies with each Member.

Clearly, some (though not all) criminal offences may be regarded as bringing the Council into disrepute. In any case, Members would automatically be removed

from office for serious criminal offences which result in a prison sentence of 3 months or more 1 .

But the code’s focus is not on whether there is a criminal conviction. Rather the key issue is whether an action may damage the public’s confidence in the office of the Member or the Council itself.

1. Under the provisions in section 80(1)(d) of the LocalGovernment Act 1972..May 2002

The Code says:

5. A Member -

(a) must not in their official capacity, or any other circumstance, use their position as a Member improperly to confer on or secure for themselves or any other person, an advantage or disadvantage; and
(b) must, when using or authorising the use by others of the resources of the authority – (i) act in accordance with the authority's requirements; and(ii) ensure that such resources are not used for political purposes unless that use could reasonably be regarded as likely to facilitate, or be conducive to, the discharge of the functions of the authority or of the office to which the Member has been elected or appointed.

Comment:

You must ensure that you never improperly

  • benefit from your position as a Member
  • secure benefits for anyone else, and particularly, friends and family.

You must not use your position as a Member to disadvantage other people, for example, by

  • settling a score or
  • giving practical effect to a personal dislike of someone.

The Code also requires Members to keep to the rules set by the authority. The rules that currently apply here are set out on this page.

Council facilities

You must use any Council facilities provided for you in your role as Member of the Council strictly for that purpose and no other. For example, you must not use rooms in the town hall or any of the Council’s resources for any matter that is

  • Personal
  • business-related
  • on behalf of any community groups of which you are a Member
  • purely party-political.

Council resources may be used to pursue a party-political matter where it is reasonable to view this as helpful to the discharge of Council business.

So for example, it may be reasonable to use Council rooms in the election of a party group leader, since the appointment would lead to more effective handling of Council business. On the other hand, using Council equipment to produce personal or party campaign literature would be inappropriate.

Council facilities are provided only for use by Members themselves. The right to use them cannot be extended to any assistants you may have, nor to Members of any community group on which you serve.

A more detailed protocol will be developed to assist Members in due course.

Members' Secretaries

Members' secretaries are provided to assist councilors only in their role as council Members. Members' secretaries may, therefore, be used to help with work, meetings and correspondence that deal with council matters.

But you should not ask them to assist you with any personal, business or purely party political matter. This is so even when the person being contacted is a constituent, an officer or a councillor.

Members secretaries will refer inappropriate requests for assistance to their service heads.

Research Assistants

Again, such staff are provided to assist Councillors only in their role as Members. They may, therefore, help with work, meetings and correspondence that deal with council matters, but not with any personal, business or purely party political matter.

Research assistants may attend directorate management team meetings at the discretion of the appropriate director.

Political Party Workers

Councillors are often assisted by political party workers. There is no objection to this, but no non-elected party worker has any entitlement to:

information to which Members have access in their role as councilors

use council facilities provided for the use of councillors.

The principles which apply to use of facilities provided for Members (and the officers employed to assist them) apply equally to all Council property and facilities; and to all Council employees.

Personal judgement.

The Code says:

6. (1) A Member must when reaching decisions –

have regard to any relevant advice provided to them by -(

i) the authority's chief finance officer acting in pursuance of his duties under section 114 of the Local Government Finance Act 1988; and

ii) the authority's monitoring officer acting in pursuance of his duties under section 5(2) of the Local Government and Housing Act 1989; and

(b) give the reasons for those decisions in accordance with the authority's and any statutory requirements in relation to the taking of an executive decision.

(2) In sub-paragraph (1)(b) above and in paragraph 9(2) below, "executive decision"is to be construed in accordance with any regulations made by the Secretary of State under section 22 of the Local Government Act 2000.

Comment:

This part of the code deals with decisions taken by Members and their accountability for them. The Code requires you to have regard to the advice provided in specific circumstances by two statutory officers:

  • the monitoring officer and
  • the chief finance officer.

The monitoring officer 1 is required by law to report if any proposal or decision of the Council (or any of its sub-committees) may involve a contravention of the law, or result in maladministration.

The chief finance officer 2 is required by law to report if it appears that a decision of the Council (or any of its sub-committees) involves it in unlawful expenditure which could cause a loss or deficiency. In either case, the Council must stop the actions to which the report refers, until they have considered the statutory officer’s advice.

The code makes each Member responsible individually for their part in any failure by the Council to give proper consideration to a statutory officer’s advice. This does not mean that you have to agree with the advice given to you.

However, you must

  • be satisfied, and
  • be able to show that ... you took it into account and had good reason to disregard it.

This would be particularly so if the courts or an auditor were to find later that the action was unlawful.

1. The monitoring officer for the Council is the Head of Legal and Democratic Services

2. The chief finance officer for the Council is the Head of Financial Services and Chief Finance Officer

Paragraph 6.1(b) requires Members to give the reasons for their decisions. This is  key measure to ensure that Members can be held accountable for their decisions by fellow Members and by the public.

The code:

  • embodies the Council’s commitment to
    - transparency and
    - accountability
  • makes each Member responsible for their part in recording the reasons for any executive decision in which they participate.

Paragraph 6.2 is designed to help Members understand what is meant by an executive decision. The law and regulations referred to require written records of prescribed decisions and the reasons for them.

The decisions covered include those taken:

  • at meetings of the executive held in private or
  • by individual Members of the executive.

You should always ensure that it is possible to:

  • reconstruct the decision process
  • identify how things happened and why
  • find out who is responsible for the decisions made.

Duty to uphold the law

The Code says:

7. A Member must, if they become aware of any conduct by another Member which they reasonably believes involves a failure to comply with the authority's code of conduct, make a written allegation to that effect to the Standards Board for England as soon as it is practicable for them to do so.

Comment:

It is in itself a breach of the code to keep silent about another Member’s failure to comply with the code. The duty to make a report is not restricted to serious breaches such as fraud or corruption. You should report any matter which you have good reason to believe is a breach of the code. This duty overrides any party or personal loyalties you may have, or any duty of confidentiality.

You may wish first to discuss matters with an officer or Member that you trust, but the duty in the code is to make a report

  • in writing
  • to the Standards Board for England
  • as soon as it is practicable.

The provisions of the code are in addition to your rights and duties to raise an issue of concern with any other appropriate body outside the Council. For example, you may choose to raise a criminal matter directly with the police.

Registering personal interests

Introduction

Public confidence in the probity of the Council is a fundamental necessity. Without the public’s trust, the Council would quickly become discredited and ineffective.

The Code therefore sets out a protocol covering the declaration of Members’ interests which has 4 elements.

1 it defines what constitutes a personal interest. The Code ...
- requires Members to register such interests
- sets a time limit for them to notify changes to the interests they have registered.

2 it directs Members on what actions they must take to protect the Council’s reputation if they have a personal interest in a matter which is to be discussed at a meeting at which they are present.

3 the code requires Members to distinguish between
- personal interests and
- prejudicial interests.

4 it directs Members on how to decide whether their interest is
- personal or
- prejudicial
and sets out the appropriate action for the Member in each case.

The first requirement of the code is for you to register any interests that fall within the definitions it gives. Paragraph 14 defines financial personal interests, while paragraph 15 defines non-financial personal interests

Paragraph 14 of The Code says:

14. Within 28 days of the provisions of the code of conduct being adopted or applied or within 28 days of their election or appointment to office (if that is later), a Member must register their financial interests in the Council’s register maintained under section 81(1) of the Local Government Act 2000 by providing written notification to the monitoring officer of –

(a) any employment or business carried on by them;

(b)  the name of the person who employs or has appointed them, the name of any firm in which they are a partner, and the name of any company for which they are a remunerated director;

(c) the name of any person, other than a relevant authority, who has made a payment to them in respect of their election or any expenses incurred by them in carrying out their duties;

(d) the name of any corporate body which has a place of business or land in the authority's area, and in which the Member has a beneficial interest in a class of securities of that body that exceeds the nominal value of £25,000 or one hundredth of the total issued share capital of that body;

(e) a description of any contract for goods, services or works made between the authority and themselves or a firm in which they are a partner, a company of which they are a remunerated director, or a body of the description specified in sub-paragraph (d) above;

(f) the address or other description (sufficient to identify the location) of any land in which they have a beneficial interest and which is in the area of the authority;

(g) the address or other description (sufficient to identify the location) of any land where the landlord is the authority and the tenant is a firm in which they are a partner, a company of which they are a remunerated director, or a body of the description specified in sub-paragraph (d) above; and

(h) the address or other description (sufficient to identify the location) of any land in the authority's area in which they have a licence (alone or jointly with others) to occupy for 28 days or longer.

Paragraph 15 of The Code says:

15. Within 28 days of the provisions of code of conduct being adopted or applied or within 28 days of their election or appointment to office (if that is later), a Member must register their other interests in the Council’s register maintained under section 81(1) of the Local Government Act 2000 by providing written notification to the monitoring officer of their Membership of or position of general control or management in any –

(a) body to which they have been appointed or nominated by the authority as its representative;

(b) public authority or body exercising functions of a public nature;

(c) company, industrial and provident society, charity, or body directed to charitable purposes;

(d) body whose principal purposes include the influence of public opinion or policy; and

(e) trade union or professional association.

16. A Member must within 28 days of becoming aware of any change to the interests specified under paragraphs 14 and 15 above, provide written notification to the authority's monitoring officer of that change.

Comment:

You will have to include any matter that is set out in the box on the next page. The monitoring officer is required to keep and update a register of all Members' interests. You should tell your monitoring officer, of any such interests that you have:

  • in writing,
  • within 28 days of the date that either ...
    - you are elected or appointed to office, or
    - the date the Council adopts this Code of conduct.

The monitoring officer has a standard form on which you can make your declaration. You should tell the monitoring officer of any changes to your interests within 28 days of the change. The monitoring officer may also ask you to confirm or update your list of interests, from time to time

As the register is designed to allow the public to obtain a more complete picture of the people that represent them:

  • the register will be open to the public at a Council office at all reasonable hours.
  • the Council must advertise in at least one newspaper that the register exists and where the public may view it.

Registering your interests. Financial interests include:

  • your jobs and businesses;
  • the name of your employer and partnerships or companies in which you are involved;
  • the names of people who have helped you with election expenses or expenses associated with your office;
  • the name of any corporate body in the area in which you have a shareholding of more than £25,000 (face value) or have a stake of more than 1/100th in the company;
  • contracts for goods, services or works between you or your firm and the authority;
  • landholdings in the area;
  • land leased or licensed from the authority by you, your firm, or a company in which you have shares.
    Your other interests include:
  • membership of or position of control or management in:
    - other bodies where you represent the authority;
    - other public authorities;
    - companies, industrial and provident societies and charitable bodies;
    - bodies whose main purpose is to influence public opinion or policy; and
    - trade unions or professional associations

Declaring interests at meetings

Comment

As a member controlling the Council's assets and finances, you are in a position of trust. The law and the Code of Conduct require you to exercise the power and confidence conferred on you as a Member of the Council in the interests of the people of Waltham Forest.

This is in contrast with an ordinary business relationship, in which each party is free to seek purely personal benefits from their transactions with the other.

It is not, therefore, enough just to register your interests. You must also declare your interests at all meetings of the Council (or any of its committees or sub-committees) if any matter to be discussed at the meeting affects those interests.

Paragraph 13 of the Code defines the meetings at which you must declare any interests that you may have. The code then requires you to distinguish between any personal or prejudicial interests you have in a matter.

Paragraph 8 of the Code defines a personal interest that you would have to declare. The definition given in the Code is wider than the definition of the interests you would be required to put on the register. It is your responsibility to judge whether you have a personal interest in a matter to be discussed. How to do this is set out in the box on page 27.

What you can and cannot do at a meeting where you declare a personal interest is set out in paragraph 9 of the Code and in the box on page 32.

Paragraph 13 of The Code says:

13. For the purposes of this Part, "meeting" means any meeting of -

(a) the authority;

(b) the executive of the authority; or

(c) any of the authority's or its executive's committees, sub-committees, joint committees, joint sub-committees, or area committees.

Paragraphs 10 and 11 of the Code describe what would make any personal interest you have into a prejudicial interest.

What you can and cannot do at a meeting where you declare a prejudicial interest is set out in paragraph 12 of the Code.

Meetings at which you should declare interests

For the purposes of this part of the Code about declaring interests at meetings, "meeting" means any meeting of –

  • the authority;
  • the executive of the authority; or
  • any of the authority's
    - committees
    - sub-committees
    - joint committees
    - joint sub-committees
    - area committees or forums.
  • any of the executive’s
    - committees
    - sub-committees
    - joint committees
    - joint sub-committees
    - area committees or forums.

The Code says:

8. - (1) A Member must regard themselves as having a personal interest in any matter if the matter relates to an interest in respect of which notification must be given under paragraphs 14 and 15 below, or if a decision upon it might reasonably be regarded as affecting to a greater extent than other council tax payers, ratepayers or inhabitants of the authority's area, the well-being or financial position of themselves, a relative or a friend or –

(a) any employment or business carried on by such persons;

(b) any person who employs or has appointed such persons, any firm in which they are a partner, or any company of which they are directors;

(c) any corporate body in which such persons have a beneficial interest in a class of securities exceeding the nominal value of £5,000; or

(d) any body listed in sub-paragraphs (a) to (e) of paragraph 15 below in which such persons hold a position of general control or management.

(2) In this paragraph –

(a) "relative" means a spouse, partner, parent, parent-in-law, son, daughter, step-son, step-daughter, child of a partner, brother, sister, grandparent, grandchild, uncle, aunt, nephew, niece, or the spouse or partner of any of the preceeding persons; and

(b) "partner" in sub-paragraph (2)(a) above means a member of a couple who live together.

Comment:

The Code requires you to assess whether

  • personal considerations might colour your decision, or
  • it might appear that way to others.

Paragraph 8 (on this page) and the box on the next page describe how to go about making the decision. The Code requires you to take account of not just your own interests but also those of your

  • relatives and
  • friends.

You are not expected to know every detail of what your relatives and friends do or are involved in, and clearly, no Member can be expected to declare what they do not know.

But to comply with the Code, you should make reasonable enquiries of friends and of the relatives listed in paragraph 2a, particularly those living in the borough.

  • Deciding whether you have a personal interest to declare
  • If the matter being discussed relates to any of the interests you have entered in the register then that is a personal interest which you would need to declare.

In addition, you must ask yourself what effect a decision on the matter would have on you, your partner, your relatives and your friends. You would also need to look at the effect the decision would have on:

  • your job, employer or business;
  • any companies in which you are a director or where you have a shareholding of more than £5,000 (face value); your business partnerships; and
  • the following organisations where you or the people above hold a position of general control or management:
    - other bodies where you represent the authority;
    - other public authorities;
    - company, industrial and provident societies and charitable bodies;
    - bodies whose main purpose is to influence public opinion or policy; and
    - trade unions or professional associations.

If the matter would affect your well-being or financial position or that of the people or bodies listed here more than other people in the area, then you have a personal interest.

People in the area are defined as other council taxpayers, ratepayers, or inhabitants of the authority's area. Clearly, Council decisions affect the public in general. There is no personal interest when you are no more affected than other people. However, a conflict of interest will arise where you are particularly affected by the outcome of an issue.

This means that you need to compare your interests with those of other council taxpayers, ratepayers or inhabitants of the authority's area generally to see whether you think your interest is greater than theirs.

You should avoid putting your interests ahead of the public’s, but more than that, you should aim to avoid even the suspicion or appearance of it. A personal interest can affect you positively or negatively. So, even if you would stand to lose by the decision, you should still declare it.

The Code says:

10. - (1) Subject to sub-paragraph (2) below, a Member with a personal interest in a matter also has a prejudicial interest in that matter if the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the Member's judgement of the public interest.

(2) A Member may regard themselves as not having a prejudicial interest in a matter if that matter relates to -

(a) another relevant authority of which they are a Member;

(b) another public authority in which they hold a position of general control or management;

(c) a body to which they have been appointed or nominated by the authority as its representative;

(d) the housing functions of the authority where the Member holds a tenancy or lease with the Council, provided that they do not have arrears of rent of more than two months, and provided that those functions do not relate particularly to the Member's tenancy or lease;

(e) the functions of the authority in respect of school meals, transport and travelling expenses, where the Member is a guardian or parent of a child in full time education, unless it relates particularly to the school which the child attends;

(f) the functions of the authority in respect of statutory sick pay under Part XI of the Social Security Contributions and Benefits Act 1992, where the Member is in receipt of, or is entitled to the receipt of such pay from a relevant authority; and

(g) the functions of the authority in respect of an allowance or payment made under sections 173 to 176 of the Local Government Act 1972] or section 18 of the Local Government and Housing Act 1989.

11. - (1) For the purposes of this Part, a Member must if they are involved in the consideration of a matter at a meeting of an overview and scrutiny committee of the authority or a sub-committee of such a committee, regard themselves as having a personal and a prejudicial interest if that consideration relates to a decision made, or action taken, by another of the authority's -

(a) committees or sub-committees; or joint committees or joint sub-committees, of which they may also be a member

(2) But sub-paragraph (1) above shall not apply if that Member attends that meeting for the purpose of answering questions or otherwise giving evidence relating to that decision or action.

Comment:

Whether your personal interest amounts to a prejudicial interest is again a matter of judgement for each Member. Your decision should take account of three factors.

First:

Ask yourself whether a member of the public - if they knew all the facts – would reasonably think that your personal interest was so influential that your decision

on the matter would be affected by it. If you believe it reasonable for them to think that your judgement would be affected, then it is likely that you have a prejudicial interest.

Second:

Take into account the direction in Paragraph 11.1 to consider that you do have a prejudicial interest if you are a member of an overview or scrutiny committee which is reviewing a decision taken by another committee of which you are also a member. This would apply even if you had not participated directly in making the decision now under review. However, bear in mind that Paragraph 11.2 would permit you still to attend the overview or scrutiny meeting to give evidence or answer questions on the matter. This would ensure that the committee could benefit from experts in the matter being discussed.

Third:

Take into account the general exemptions from prejudicial interests that are set out in Paragraph 10.2. or discussed in the box on the next page. What you must do if you decide that you do have a prejudicial interest is set out in Paragraph 12.

Prejudicial interests: general exemptions

The code says that you may regard yourself as not having a prejudicial interest in a matter if it relates to:

  • another authority of which you are a Member;
  • another public authority in which you hold a position of general control or management;
  • other bodies where you represent the authority;
  • the housing functions of your authority where you hold a tenancy with the authority as long as - you are not two months or more behind with your rent and the matter doesn't relate to your particular tenancy;
  • school meals, transport and travelling expenses if you are a parent of a child in full time education, unless it relates to the school that your child goes to;
  • statutory sick pay where you are in receipt of, or are entitled to, such pay from your authority;
  • allowances or payments made under sections 173-176 of the Local Government Act 1972 or section 18 of the Local Government and Housing Act 1989.

The Code says:

9. (1) A Member with a personal interest in a matter who attends a meeting of the authority at which the matter is considered must disclose to that meeting the existence and nature of that interest at the commencement of that consideration, or when the interest becomes apparent.

(2) Subject to paragraph 12(1)(b) below, a Member with a personal interest in any matter who has made an executive decision in relation to that matter must ensure that any written statement[23] of that decision records the existence and nature of that interest.

Comment

If you have a personal interest in a matter that is to be discussed at any meeting, you must first decide whether your personal interest also amounts to a prejudicial interest.

Prejudicial interests are defined in Paragraphs 10 and 11 of the Code. The appropriate action to take when you have such an interest is set out in Paragraph 12. However, if you decide that your interest is personal but not prejudicial:

  • you must declare the interest and say what it is
  • you must do so before the meeting or as soon as it comes apparent in the meeting
  • you may, however, stay in the meeting, and
  • you may take part in it, and
  • you may vote on the matter.

However, if:

  • you stay in the meeting and
  • an executive decision is made ... you have a personal duty to ensure that the record of the decision states
  • that you had an interest and the nature of that interest.

The kinds of meetings at which you are required to declare personal and prejudicial interest are set out in the box on page 25.

The Code says:

12. - (1) Subject to sub-paragraph (2) below, a Member with a prejudicial interest in any matter must -

(a) withdraw from the room or chamber where a meeting is being held whenever it becomes apparent that the matter is being considered at that meeting, unless they have obtained a dispensation[27] from the Council's Standards Committee;

(b) not exercise executive functions in relation to that matter; and

(c) not seek improperly to influence a decision about that matter.

(2) A Member with a prejudicial interest may, unless that interest is of a financial nature, and unless it is an interest of the type described in paragraph 11 above, participate in a meeting of the authority's –

(a) overview and scrutiny committees; and

(b) joint or area committees, to the extent that such committees are not exercising functions of the authority or its executive.

Comment

If you decide that you have a prejudicial interest you must:

  • declare what that interest is and
  • withdraw from the meeting by leaving the room
  • take no part in discussions on that matter nor try improperly to influence a decision on it ...unless ...
  • you have a dispensation from the Standards Committee, or
  • you are exempt by reason of Paragraphs 12.2 or 11.2 of the Code.

These exemptions are described in the box on page 33.

Even if you are exempt or have a dispensation, you would still need to declare your interest

Prejudicial interests: exemptions and dispensations

Exemptions

Paragraph 12.2 of the Code provides, that if you are a member of a

  • joint committee, area forum or
  • overview or scrutiny committee ...

you may still participate in such a committee when you have a prejudicial interest, provided that

  • the interest is non-financial
  • the committee is not scrutinising a decision taken by another committee of which you are a member.

Paragraph 11.2 of the Code provides, that if you have a prejudicial interest in a matter being scrutinised by an overview and scrutiny committee of which you are a member ... you may still attend the meeting to

  • give evidence or
  • answer questions on the matter.

You should not otherwise participate in the meeting. This exemption is intended to allow maximum participation in overview and scrutiny committees and allow the committee to benefit from experts in the matters being discussed.

Dispensations

Your standards committee can grant you a dispensation to participate in a meeting even when you have a prejudicial interest, if the circumstances warrant it. You must seek the dispensation before the meeting at which the matter is to be discussed.

Registration of Gifts and Hospitality

The Code says:

17. A Member must within 28 days of receiving any gift or hospitality over the value of £25, provide written notification to the authority's monitoring officer of the existence and nature of that gift or hospitality.

In the interests of openness and accountability, the Council’s monitoring officer keeps a register of

  • the gifts and hospitality accepted by Members where its value is more than £25
  • the name of the person or organisation making any such gift

 Breaches of the Code

Once the Code is adopted it is open to anybody to make a complaint to the Standards Board for England about breaches of the Code. Of course, a complaint cannot be made to the Standards Board about anything that happened before the Code applied.

You can find the procedure for complaints in full in the Local Government Act 2000. If there is a written complaint, the Standards Board will consider whether the evidence warrants a detailed investigation by an Ethical Standards Officer.

Investigation by an ethical standards officer

During their investigation, such an officer:

  • may consider any other matter which comes to their attention where they suspect a failure to comply with the Code
  • has a right of access to every document the Council has that they consider necessary to their investigation
  • may require any person to give them such information or explanation as they think appropriate
  • may produce an interim report which can recommend that the Member under investigation be suspended or partially suspended or prevented from exercising particular functions or responsibilities.

After the investigation, the Ethical Standards Officer will make one of the following decisions:

1. there is no evidence of failure to comply

2. that no action needs to be taken in respect of the matters which are the subject of the investigation

3. that the matter should be referred to the Council's monitoring officer

4. that the matter should be referred for adjudication by a Case Tribunal.

Standards Board for England.Code

The Standards Boards for England (The Standards Board) aims to ensure that the highest standards ofethical conduct are maintained across local government.

Its main roles are to:

  • investigate written allegations that a Member has failed to comply with their Council's Code.
  • offer guidance to members
  • promote best practice on member conduct.

You can get current Standards Board guidance from the monitoring officer or from their web site [www.standardsboard.co.uk ].

Referral to the Council’s Monitoring Officer

The Ethical Standards Officer will produce a report on their findings and send a copy of the report to the monitoring officer and the standards committee.

At present, national regulations do not make it clear what happens once such a report has been made. The monitoring officer will keep Members informed of developments.

Case Tribunal

If the Ethical Standards Officer refers the matter to an Independent Case Tribunal, they will decide whether the Member has failed to comply with the Code.

The Member has the right to:

  • appear before the tribunal in person, or
  • be represented by
    - counsel,
    - a solicitor, or
    - any other person who they would like to represent them.

An Independent Case Tribunal can impose penalties. These include:

  • suspension or partial suspension from being a Member or co-opted Member of the Council (for up to one year) disqualification from being a Member of this or any other relevant authority for up to 5 years

The Member has a right of appeal.

Case tribunals may also make recommendations to the Council about:

  • the way it carries out its functions,
  • its code of conduct, or
  • the Standards Committee.

Last amended 18th October, 2001

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