Localism Bill (HL Bill 90)

(a) relating to local authorities—

(i) ceasing to operate executive arrangements or alternative
arrangements under Part 2 of the Local Government Act 2000,
and

(ii) 5starting to operate executive arrangements or a committee
system under Part 1A of that Act,

(b) as to whether, and how, anything done, or in the process of being done,
under any provision of Part 2 of that Act is to be deemed to have been
done, or be in the process of being done, under any provision of Part 1A
10of that Act (whether generally or for specified purposes), or

(c) modifying the application of any provision of Chapter 4 of Part 1A of
that Act in relation to a change in governance arrangements by a local
authority within a specified period.

(3) The reference in subsection (2)(b) to things done includes a reference to things
15omitted to be done.

(4) In this section—

• “change in governance arrangements” has the meaning given by section
  9OA of the Local Government Act 2000;

• “local authority” means a county council in England, a district council or
  20a London borough council;

• “specified” means specified in an order under this section.

CHAPTER 4 Predetermination

14 Prior indications of view of a matter not to amount to predetermination etc

(1) Subsection (2) applies if—

(a) 25as a result of an allegation of bias or predetermination, or otherwise,
there is an issue about the validity of a decision of a relevant authority,
and

(b) it is relevant to that issue whether the decision-maker, or any of the
decision-makers, had or appeared to have had a closed mind (to any
30extent) when making the decision.

(2) A decision-maker is not to be taken to have had, or to have appeared to have
had, a closed mind when making the decision just because—

(a) the decision-maker had previously done anything that directly or
indirectly indicated what view the decision-maker took, or would or
35might take, in relation to a matter, and

(b) the matter was relevant to the decision.

(3) Subsection (2) applies in relation to a decision-maker only if that decision-
maker—

(a) is a member (whether elected or not) of the relevant authority, or

(b) 40is a co-opted member of that authority.

(4) In this section—

• “co-opted member”, in relation to a relevant authority, means a person
  who is not a member of the authority but who—

  Localism BillPage 21

  (a)

  is a member of any committee or sub-committee of the
  authority, or

  (b)

  is a member of, and represents the authority on, any joint
  committee or joint sub-committee of the authority,

  5and who is entitled to vote on any question which falls to be decided at
  any meeting of the committee or sub-committee;

• “decision”, in relation to a relevant authority, means a decision made in
  discharging functions of the authority, functions of the authority’s
  executive, functions of a committee of the authority or functions of an
  10officer of the authority (including decisions made in the discharge of
  any of those functions otherwise than by the person to whom the
  function was originally given);

• “elected mayor” has the meaning given by section 9H or 39 of the Local
  Government Act 2000;

• 15“member”—

  (a)

  in relation to the Greater London Authority, means the Mayor
  of London or a London Assembly member, and

  (b)

  in relation to a county council, district council, county borough
  council or London borough council, includes an elected mayor
  20of the council;

• “relevant authority” means—

  (a)

  a county council,

  (b)

  a district council,

  (c)

  a county borough council,

  (d)

  25a London borough Council,

  (e)

  the Common Council of the City of London,

  (f)

  the Greater London Authority,

  (g)

  a National Park authority,

  (h)

  the Broads Authority,

  (i)

  30the Council of the Isles of Scilly,

  (j)

  a parish council, or

  (k)

  a community council.

(5) This section applies only to decisions made after this section comes into force,
but the reference in subsection (2)(a) to anything previously done includes
35things done before this section comes into force.

CHAPTER 5 Standards

15 Amendments of existing provisions

Schedule 4 (which amends the existing provisions relating to the conduct of
local government members and employees in England and makes related
40provision) has effect.

16 Duty to promote and maintain high standards of conduct

(1) A relevant authority must promote and maintain high standards of conduct by
members and co-opted members of the authority.

(2) In this Chapter “co-opted member”, in relation to a relevant authority, means
a person who is not a member of the authority but who—

(a) is a member of any committee or sub-committee of the authority, or

(b) is a member of, and represents the authority on, any joint committee or
5joint sub-committee of the authority,

and who is entitled to vote on any question that falls to be decided at any
meeting of that committee or sub-committee.

(3) The reference in subsection (2) to a joint committee or joint sub-committee of a
relevant authority is a reference to a joint committee on which the authority is
10represented or a sub-committee of such a committee.

(4) In this Chapter “relevant authority” means—

(a) a county council in England,

(b) a district council,

(c) a London borough council,

(d) 15a parish council,

(e) the Greater London Authority,

(f) the Metropolitan Police Authority,

(g) the London Fire and Emergency Planning Authority,

(h) the Common Council of the City of London in its capacity as a local
20authority or police authority,

(i) the Council of the Isles of Scilly,

(j) a fire and rescue authority in England constituted by a scheme under
section 2 of the Fire and Rescue Services Act 2004 or a scheme to which
section 4 of that Act applies,

(k) 25a police authority (in England or in Wales) established under section 3
of the Police Act 1996,

(l) a joint authority established by Part 4 of the Local Government Act
1985,

(m) an economic prosperity board established under section 88 of the Local
30Democracy, Economic Development and Construction Act 2009,

(n) a combined authority established under section 103 of that Act,

(o) the Broads Authority, or

(p) a National Park authority in England established under section 63 of
the Environment Act 1995.

(5) 35Any reference in this Chapter to a member of a relevant authority—

(a) in the case of a relevant authority to which Part 1A of the Local
Government Act 2000 applies, includes a reference to an elected mayor;

(b) in the case of the Greater London Authority, is a reference to the Mayor
of London or a London Assembly member.

(6) 40Functions that are conferred by this Chapter on a relevant authority to which
Part 1A of the Local Government Act 2000 applies are not to be the
responsibility of an executive of the authority under executive arrangements.

(7) Functions that are conferred by this Chapter on the Greater London Authority
are to be exercisable by the London Assembly acting on behalf of the
45Authority.

17 Voluntary codes of conduct

(1) A relevant authority may adopt a code dealing with the conduct that is
expected of members and co-opted members of the authority when they are
acting in that capacity (referred to in this section as a “code of conduct”).

(2) 5A relevant authority may—

(a) revise its existing code of conduct,

(b) adopt a code of conduct to replace its existing code of conduct, or

(c) withdraw its existing code of conduct without replacing it.

(3) If a written allegation is made to a relevant authority that a member or co-
10opted member of the authority has failed, or may have failed, to comply with
its code of conduct, it must—

(a) consider whether it is appropriate to investigate the allegation, and

(b) if it decides that an investigation is appropriate, investigate the
allegation in such manner as it thinks fit.

(4) 15If a relevant authority finds that a member or co-opted member of the authority
has failed to comply with its code of conduct (whether or not the finding is
made following an investigation under this section) it may have regard to the
failure in deciding—

(a) whether to take action in relation to the member or co-opted member,
20and

(b) what action to take.

(5) A relevant authority must publicise its adoption, revision or withdrawal of a
code of conduct in such manner as it considers is likely to bring the adoption,
revision or withdrawal of the code of conduct to the attention of persons who
25live in its area.

(6) A relevant authority’s function of adopting, revising or withdrawing a code of
conduct under this section may be discharged only by the authority.

(7) Accordingly—

(a) in the case of an authority to whom section 101 of the Local
30Government Act 1972 (arrangements for discharge of functions)
applies, the function is not a function to which that section applies;

(b) in the case of the Greater London Authority, the function is not a
function to which section 54 of the Greater London Authority Act 1999
(discharge of Assembly functions by committees or single members)
35applies.

18 Disclosure and registration of members’ interests

(1) The Secretary of State may by regulations make provision for or in connection
with requiring the monitoring officer of a relevant authority to establish and
maintain a register of interests of the members and co-opted members of the
40authority.

(2) Regulations under this section may, in particular, make provision—

(a) specifying the financial and other interests that are to be registered in
the register;

(b) requiring any member or co-opted member of a relevant authority who
45has an interest of a specified kind to disclose that interest before taking
part in business of the authority relating to the interest;

(c) preventing or restricting the participation of a member or co-opted
member of a relevant authority in any business of the authority to
which an interest disclosed by virtue of paragraph (b) relates;

(d) for a relevant authority to grant dispensations in specified
5circumstances from a prohibition imposed by virtue of paragraph (c);

(e) about the sanctions that a relevant authority may impose on a member
or co-opted member for failure to comply with regulations under this
section;

(f) requiring a relevant authority to make copies of the register available to
10the public and to inform the public that copies are available.

(3) The provision that may be made by virtue of subsection (2)(e) does not include
provision—

(a) for the suspension or partial suspension of a person from being a
member or co-opted member of the authority, or

(b) 15for the disqualification of a person for being or becoming (by election
or otherwise) a member or co-opted member of that or any other
relevant authority.

(4) The reference in subsection (1) to a monitoring officer of a relevant authority
includes, in relation to a relevant authority that is a parish council, such person
20as may be specified.

(5) In this section “specified” means specified in regulations under this section.

19 Offence of breaching regulations under section 18

(1) A person who is a member or co-opted member of a relevant authority
commits an offence if, without reasonable excuse, the person—

(a) 25fails to register a financial or other interest in accordance with
regulations under section 18,

(b) fails to disclose an interest of a kind specified in such regulations in
accordance with such regulations before taking part in business of the
authority relating to the interest, or

(c) 30takes part in business of the authority to which an interest disclosed by
virtue of such regulations relates contrary to a prohibition or restriction
imposed by such regulations.

(2) A person who is guilty of an offence under this section is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

(3) 35Where a person is convicted of an offence under this section, the court may by
order disqualify the person, for a period not exceeding five years, for being or
becoming (by election or otherwise) a member or co-opted member of the
relevant authority in question or any other relevant authority.

(4) A prosecution for an offence under this section is not to be instituted except by
40or on behalf of the Director of Public Prosecutions.

(5) Proceedings for an offence under this section may be brought within a period
of 12 months beginning with the date on which evidence sufficient in the
opinion of the prosecutor to warrant the proceedings came to the prosecutor’s
knowledge.

(6) 45But no such proceedings may be brought more than three years—

(a) after the commission of the offence, or

(b) in the case of a continuous contravention, after the last date on which
the offence was committed.

(7) A certificate signed by the prosecutor and stating the date on which such
evidence came to the prosecutor’s knowledge is conclusive evidence of that
5fact; and a certificate to that effect and purporting to be so signed is to be
treated as being so signed unless the contrary is proved.

20 Amendment of section 16 following abolition of police authorities

In section 16(4) (which defines “relevant authority” for the purposes of this
Chapter) omit—

(a) 10paragraph (f) (the Metropolitan Police Authority), and

(b) paragraph (k) (police authorities).

21 Transitional provision

(1) An order under section 226(2) may, in particular, provide for any provision
made by or under Part 3 of the Local Government Act 2000 to have effect with
15modifications in consequence of any partial commencement of any of the
amendments to, or repeals of, provisions of that Part made by Schedule 4.

(2) An order under section 226(2) may, in particular, make provision for an
allegation or a case that is being investigated under Part 3 of the Local
Government Act 2000 by the Standards Board for England or an ethical
20standards officer—

(a) to be referred to an authority of a kind specified in or determined in
accordance with the order;

(b) to be dealt with in accordance with provision made by the order.

(3) The provision that may be made by virtue of subsection (2)(b) includes—

(a) 25provision corresponding to any provision made by or under Part 3 of
the Local Government Act 2000;

(b) provision applying any provision made by or under that Part with or
without modifications.

CHAPTER 6 Pay accountability

22 30Pay policy statements

(1) A relevant authority must prepare a pay policy statement for the financial year
2012-2013 and each subsequent financial year.

(2) A pay policy statement for a financial year must set out the authority’s policies
for the financial year relating to—

(a) 35the remuneration of its chief officers,

(b) the remuneration of its lowest-paid employees, and

(c) the relationship between—

(i) the remuneration of its chief officers, and

(ii) the remuneration of its employees who are not chief officers.

(3) 40The statement must state—

(a) the definition of “lowest-paid employees” adopted by the authority for
the purposes of the statement, and

(b) the authority’s reasons for adopting that definition.

(4) The statement must include the authority’s policies relating to—

(a) 5the level and elements of remuneration for each chief officer,

(b) remuneration of chief officers on recruitment,

(c) increases and additions to remuneration for each chief officer,

(d) the use of performance related pay for chief officers,

(e) the use of bonuses for chief officers,

(f) 10the approach to the payment of chief officers on their ceasing to hold
office under or to be employed by the authority, and

(g) the publication of and access to information relating to remuneration of
chief officers.

(5) A pay policy statement for a financial year may also set out the authority’s
15policies for the financial year relating to the other terms and conditions
applying to the authority’s chief officers.

23 Supplementary provisions relating to statements

(1) A relevant authority’s pay policy statement must be approved by a resolution
of the authority before it comes into force.

(2) 20The first statement must be prepared and approved before the end of 31st
March 2012.

(3) Each subsequent statement must be prepared and approved before the end of
the 31st March immediately preceding the financial year to which it relates.

(4) A relevant authority may by resolution amend its pay policy statement
25(including after the beginning of the financial year to which it relates).

(5) As soon as is reasonably practicable after approving or amending a pay policy
statement, the authority must publish the statement or the amended statement
in such manner as it thinks fit (which must include publication on the
authority’s website).

24 30Guidance

(1) A relevant authority in England must, in performing its functions under
section 22 or 23, have regard to any guidance issued or approved by the
Secretary of State.

(2) A relevant authority in Wales must, in performing its functions under section
3522 or 23, have regard to any guidance issued or approved by the Welsh
Ministers.

25 Determinations relating to remuneration etc

(1) This section applies to a determination that—

(a) is made by a relevant authority in a financial year beginning on or after
401st April 2012 and

(b) relates to the remuneration of or other terms and conditions applying
to a chief officer of the authority.

(2) The relevant authority must comply with its pay policy statement for the
financial year in making the determination.

(3) Any power of a fire and rescue authority within section 27(1)(i) to appoint
officers and employees is subject to the requirement in subsection (2).

(4) 5In section 112 of the Local Government Act 1972 (appointment of staff) after
subsection (2) insert—

“(2A) A local authority’s power to appoint officers on such reasonable terms
and conditions as the authority thinks fit is subject to section 25 of the
Localism Act 2011 (requirement for determinations relating to terms
10and conditions of chief officers to comply with pay policy statement).”

26 Exercise of functions

(1) The functions conferred on a relevant authority by this Chapter are not to be
the responsibility of an executive of the authority under executive
arrangements.

(2) 15Section 101 of the Local Government Act 1972 (arrangements for discharge of
functions by local authorities) does not apply to the function of passing a
resolution under this Chapter.

(3) The function of a fire and rescue authority within section 27(1)(i) of passing a
resolution under this Chapter may not be delegated by the authority.

27 20Interpretation

(1) In this Chapter “relevant authority” means—

(a) a county council,

(b) a county borough council,

(c) a district council,

(d) 25a London borough council,

(e) the Common Council of the City of London in its capacity as a local
authority,

(f) the Council of the Isles of Scilly,

(g) the London Fire and Emergency Planning Authority,

(h) 30a metropolitan county fire and rescue authority, or

(i) a fire and rescue authority constituted by a scheme under section 2 of
the Fire and Rescue Services Act 2004 or a scheme to which section 4 of
that Act applies.

(2) In this Chapter “chief officer”, in relation to a relevant authority, means each of
35the following—

(a) the head of its paid service designated under section 4(1) of the Local
Government and Housing Act 1989;

(b) its monitoring officer designated under section 5(1) of that Act;

(c) a statutory chief officer mentioned in section 2(6) of that Act;

(d) 40a non-statutory chief officer mentioned in section 2(7) of that Act;

(e) a deputy chief officer mentioned in section 2(8) of that Act.

(3) In this Chapter “remuneration”, in relation to a chief officer and a relevant
authority, means—

(a) the chief officer’s salary or, in the case of a chief officer engaged by the
authority under a contract for services, payments made by the
authority to the chief officer for those services,

(b) any bonuses payable by the authority to the chief officer,

(c) 5any charges, fees or allowances payable by the authority to the chief
officer,

(d) any benefits in kind to which the chief officer is entitled as a result of
the chief officer’s office or employment,

(e) any increase in or enhancement of the chief officer’s pension
10entitlement where the increase or enhancement is as a result of a
resolution of the authority, and

(f) any amounts payable by the authority to the chief officer on the chief
officer ceasing to hold office under or be employed by the authority,
other than amounts that may be payable by virtue of any enactment.

(4) 15In this Chapter “terms and conditions”, in relation to a chief officer and a
relevant authority, means the terms and conditions on which the chief officer
holds office under or is employed by the authority.

(5) References in this Chapter to the remuneration of, or the other terms and
conditions applying to, a chief officer include—

(a) 20the remuneration that may be provided to, or the terms and conditions
that may apply to, that chief officer in the future, and

(b) the remuneration that is to be provided to, or the terms and conditions
that are to apply to, chief officers of that kind that the authority may
appoint in the future.

(6) 25In this Chapter “remuneration”, in relation to a relevant authority and an
employee of its who is not a chief officer, means—

(a) the employee’s salary,

(b) any bonuses payable by the authority to the employee,

(c) any allowances payable by the authority to the employee,

(d) 30any benefits in kind to which the employee is entitled as a result of the
employee’s employment,

(e) any increase in or enhancement of the employee’s pension entitlement
where the increase or enhancement is as a result of a resolution of the
authority, and

(f) 35any amounts payable by the authority to the employee on the employee
ceasing to be employed by the authority, other than any amounts that
may be payable by virtue of any enactment.

(7) References in this Chapter to the remuneration of an employee who is not a
chief officer include—

(a) 40the remuneration that may be provided to that employee in the future,
and

(b) the remuneration that is to be provided to employees of the same kind
that the authority may employ in the future.

(8) In this Chapter—

• 45“enactment” includes an enactment comprised in subordinate legislation
  (within the meaning of the Interpretation Act 1978);

• “financial year” means the period of 12 months ending with 31st March in
  any year.

CHAPTER 7 Miscellaneous repeals

28 Repeal of duties relating to promotion of democracy

Chapter 1 of Part 1 of the Local Democracy, Economic Development and
Construction Act 2009 (duties relating to promotion of democracy) is repealed.

29 5Repeal of provisions about petitions to local authorities

Chapter 2 of Part 1 of the Local Democracy, Economic Development and
Construction Act 2009 (petitions to local authorities) is repealed.

30 Schemes to encourage domestic waste reduction by payments and charges

The following provisions are repealed—

(a) 10section 71(1) of, and Schedule 5 to, the Climate Change Act 2008 (which
amend the Environmental Protection Act 1990 to enable waste
collection authorities to make waste reduction schemes, but which have
never been in force), and

(b) sections 71(2) and (3) and 72 to 75 of that Act (which provide for the
15provisions mentioned in paragraph (a) to be piloted and then either
brought into force, with or without amendments, or repealed).

Part 2 EU fines

31 Power to require local or public authorities to make payments in respect of
20certain EU financial sanctions

(1) In this Part “EU financial sanction” means a lump sum or penalty payment (or
both) imposed after the commencement of this Part by the Court of Justice of
the European Union under Article 260(2) of the Treaty on the Functioning of
the European Union.

(2) 25A Minister of the Crown may require a local or public authority to make a
payment of an amount determined by the Minister in respect of any EU
financial sanction imposed on the United Kingdom.

(3) The requirement to make a payment under this Part must be imposed—

(a) by an EU financial sanction notice under section 33 given by the
30Minister to the authority concerned after complying with the
requirements of section 32; or

(b) in the case of an EU financial sanction that is or includes a penalty
payment, by a further EU financial sanction notice under section 35
given by the Minister to that authority after complying with the
35requirements of section 34.

(4) The Secretary of State must publish (and may from time to time revise and
republish) a statement of policy with respect to the imposition of requirements
to make payments under this Part and the determination of the amount of the
sums required to be paid.