Localism Act 2011 Michael Blamire-Brown Legal Adviser WMPA

Localism Act themes To shift power from the centre to communities and individuals New freedoms and flexibilities (powers of competence) Reform of the planning system (neighbourhood plans) Social housing reforms and abolition of home information packs

The Act 241 sections 34 schedules 497 pages By comparison PRSRA sections 17 schedules 246 pages

Todays Topics Precepts Council tax referenda Standards of Conduct

What are PA’s missing? General power of competence Pay policy statements Provisions to watch: EU Financial sanctions Community right to bid

Council tax and precepts Council tax rate must have support of local people (electorate and not just CT payers) Capping power abolished Issue is whether a tax rise is “excessive” Ministers decide what is excessive – approved by House of Commons Excessive tax rises will have to be approved by electorate

Council tax Sections 72 – 79 Localism Act (Council Tax) in force 3 rd December 2011and schedules 5 – 7 (referendums) Localism Act provisions will apply to precepts for PA’s and PCC’s are “Major Precepting Authorities” Note s 26 PRSRA - PCC’s no duty to consult ratepayers

Council tax - procedure S 75 LA2011 calculation of income and expenditure Calculate basic tax (Band D) Schedule 5 (inserts provision into LGFA 1992) Precepting authority must determine whether basic tax excessive

What is excessive? Excessive defined by Sec of State according to principles – see formula in “The Limitation of Council Tax Precepts and Principles ” and “The Limitation of Council Tax Precepts (Alternative Notional Amounts) Report (England) ”

If proposed basic tax excessive Must make substitute calculations Must notify billing authority (failure to do so has implications) Billing Authority must hold referendum and recharge cost to Precepting Authority Date of referendum – Sec State can specify date – if other referenda first Thursday in May otherwise Billing Authority to select date no later than 1 st May

The referendum To approve or not approve the proposed tax If approved precept already set takes effect If not approved substituted amount has effect – implications for re-billing costs!

Precepts by PCC’s See s 26 PRSRA 2011 PCC a major Precepting authority Cannot issue precept until end of scrutiny process PCC notifies PCP PCP report to PCC – may include recommendations as to precept PCP may veto precept by required majority (2/3 of PCP membership) If no veto PCC has regard to report and issues precept (excessive tax provisions in Localism Act will apply) If veto - cannot issue proposed precept and must have regard to PCP report and give response

Standards Late changes to Localism Bill at report stage in Lords Inadequate stakeholder discussion Code no longer voluntary (as proposed in Bill) No apparent consideration of PRSRA reforms or impact on transition workload Implementation in last months of PA’s life

Time to re-arrange the deckchairs or abandon ship?

Standards of conduct Outline Existing regime abolished in entirety New regime in Act – code and register of interests – likely effective date 1 st July 2012 – applies England and Wales – no “teeth” in code Standards Board to be abolished – likely effective date 1 st April 2012 Statutory standards committees abolished No statutory role for independent members All existing investigations and hearings will need to be completed by implementation (1/07/12)

New duties Apply to Police Authorities as relevant authorities Duty to promote and maintain high standards of conduct Must adopt a code for members and co-opted members Must have arrangements for investigating allegations and making decisions Monitoring Officer must establish and maintain register of interests No statutory standards committee required but non- statutory committee could be appointed Must appoint at least one “independent person”

Independent Persons Must be asked for views to be taken into account before decision made on an allegation authority has decided to investigate May also be asked for views by authority or the member (possible conflicts may require more than one IP) Cannot be current independent members (current thinking) Consider sharing IP’s between PA’s or with LA’s

Is there a role for existing independent standards members? Will cease to hold office when new regime in force Probably cannot be IP’s Could be co-opted to a standards committee but (following Sec 13 Local Government and Housing Act 1989) cannot be voting members unless advisory committee only

Standards Committee Whether to appoint Existing committee role will end on implementation (likely to be 1 st July 2012) If to be continued must be re-constituted Possible membership (existing members + independent standards members optional) Terms of reference – deal with allegations May not need to meet if no complaints

Standards – member obligations Must register “disclosable pecuniary interests” (DPI) – to be defined in regulations as well as any other interests authority may require Must register own interest as well as spouse, civil partner (or living with person as spouse or partner) Register must be published on Authority website Must declare unregistered interests Member cannot take part in discussion or vote Dispensations can be granted Criminal offence for breach (rare – DPP consent needed)

The new code Must adopt a code based on Nolan principles Narrower than existing general principles Code will only apply for 4 ½ months Good case for simply extending existing code

Standards – action points Watch for announcement on implementation (DCLG) – likely 1 st July Draft new code (existing Standards Ctee can consider) for PA to approve before 1/07/12 Draft arrangements for allegations etc. – get PA to approve (Standards Ctee to recommend) PA to decide whether to re-constitute standards committee (recommended) and if so how to constitute Consider changes to standing orders – exclusion where interests Investigate sharing IP’s MO to prepare for new register of interests and publication on web

Thank you