Memorandum by the Office of the Deputy
Prime Minister (STA 01)
INTRODUCTION
1. The Office of the Deputy Prime Minister
has policy responsibility for ethical conduct in local government
in England, the legislative framework which provides the basis
of the ethical regime for local government, and the sponsorship
of the Standards Board for England.
2. This memorandum provides information
on the policy background to the establishment of the Standards
Board, and the Board's role in policing the new ethical framework
for local government and encouraging a culture of high standards
of conduct.
BACKGROUND TO
THE ESTABLISHMENT
OF THE
NEW ETHICAL
FRAMEWORK FOR
LOCAL GOVERNMENT
3. In its 1997 Election Manifesto the Government
committed itself to "clean up politics" and to re-invigorate
local democracy. The aim for local government was to enable councils
to provide the local leadership which their communities needed
and to deliver high quality services. If this aim is to be achieved,
there must be a high degree of public trust in councils and their
elected members and employees.
4. Following consultation, the Government's
proposals for a new ethical framework were issued in the 1998
White Paper Modern Local Government: In Touch with the People.
These included the provision of clearer rules for councillors,
and the establishment of the Standards Board for England as an
independent body to investigate all allegations of misconduct
by members. The Government took the view that it was of vital
importance to the credibility of the new framework to demonstrate
that, when investigations into breaches of the code were required,
they would be undertaken in a way which was thorough, consistent,
and demonstrably free from political bias.
5. A draft Local Government Bill, and further
details of the proposed new ethical framework, were published
in Local leadership, Local choice in March 1999. The ultimate
aims of the proposals were to provide:
— clear standards of conduct for councillors
and council employees;
— local standards committees to promote
and maintain standards; and
— robust, efficient, fair and effective
means of investigating allegations of misconduct, and dealing
with any councillors who are found to have committed a breach
of the code.
6. The Bill was enacted as the Local Government
Act 2000. The Act's two most significant provisions on standards
and conduct were:
— the introduction of new, nationally
applicable statutory codes of conduct across local government;
and
— the creation of the Standards Board
for England to oversee the operation of the code and refer alleged
breaches for investigation.
7. In November 2001, following consultation,
the Government laid before Parliament a set of model codes of
conduct, making explicit what is required of councillors. The
codes were framed to provide a practicable, clear and simple basis
for councillors to reach conclusions about the right course of
action to take in a variety of circumstances. All local authorities
were required to adopt a local code of conduct, which had to include
all the provisions of the model code. Where councils did not adopt
a local code by May 2002, the model code applied automatically.
8. The Standards Board for England was formally
constituted in March 2001.
The Government considered it vital to establish
a wholly new independent national body to promote and police the
code. As stated in Local leadership, Local choice: "Maintaining
an arms-length relationship with both central and local government
is important to reinforce the message to the public that the Board
will deal with any complaints in a rigorous yet impartial manner."
Both members of the public and councillors needed to have confidence
that complaints would be investigated in a thorough and impartial
manner and that the Government would not be able to intervene
in individual cases.
9. In order to ensure that the adjudication
of cases was separate from investigation, the Adjudication Panel
was established as a separate body to the Standards Board. Tribunals
drawn from members of the Adjudication Panel consider cases referred
to them by ethical standards officers of the Standards Board.
They determine whether a breach of the code has taken place, and,
if so, can then determine an appropriate penalty.
EFFECTIVENESS OF
THE STANDARDS
BOARD IN
PROMOTING AND
OVERSEEING THE
CODE OF
CONDUCT FOR
MEMBERS
10. Among the Standards Board's statutory
roles under the Local Government Act 2000 is the issuing of guidance
to local authorities on matters relating to the conduct of members.
In addition, in exercising its functions, the Board must have
regard to the need to promote and maintain high standards of conduct
by members.
11. The Board has promoted the code of conduct
to the local authority world in a variety of ways, including issuing
guidance to authorities and holding a series of annual conferences
for standards committee members and local authority officers.
The Standards Board places great emphasis on developing its role
of promoting the code in partnership with local authority associations
and individual councils. We believe that through this work the
Standards Board has succeeded in establishing itself as a strong
force for promoting greater confidence in local democracy. High
levels of satisfaction have been recorded by the recipients of
the Board's guidance material.
12. It is recognised that there is a close connection
between issues of conduct and those of a council's performance
more generally. The Standards Board has established a steering
group of senior representatives from the Board, the Audit Commission,
the Local Government Ombudsman, the Improvement and Development
Agency and the Office, to coordinate activities on standards with
other policy issues.
13. At the Minister's invitation, the Board
recently began a review of the code of conduct which will include
consultation with stakeholders, to be carried out during the course
of the coming year.
THE ROLE
OF THE
BOARD IN
ENSURING LOCAL
AUTHORITIES ADHERE
TO THE
CODE OF
CONDUCT AND
ASSESSING ALLEGATIONS
OF MISCONDUCT
14. The Local Government Act 2000 provides
that, among the Board's functions, is the appointment of ethical
standards officers, whose role is to investigate cases where members
may have failed to comply with their code of conduct. The Board
has put in place procedures to ensure that such investigations
are dealt with effectively, and that investigations are rigorous
and fair, and completed as quickly as possible.
15. The Standards Board has also put in
place systems to ensure that it focuses on the most serious cases,
for example, where the actions of members have caused others to
fear for their safety or where members have used their influence
to promote their own interests or those of their family or friends.
16. The Board operates an effective filter
system for trivial complaints. In 2003-04 only 34% of the allegations
it received required investigation. Of completed cases, only 12%
were referred for determination by the Adjudication Panel, which
considers the most serious cases.
17. The Board's processes continue to be
streamlined. The Board has put in place an IT based Case Management
System which will improve its casework management and monitoring.
It has also introduced a case weighting system to ensure improved
proportionality in the handling of investigations, and is developing
a set of key performance indicators and targets to bring a sharper
focus on effectiveness and efficiency. The Board's target is to
complete 90% of investigations within six months by 2006-07, and
to remove the Board's backlog of cases by April 2005.
DELAYS IN
INTRODUCING LOCAL
INVESTIGATION AND
DETERMINATION
18. Parliament recognised that, once a clearer
set of requirements for members was in place, it would be appropriate
to consider whether less serious allegations could be investigated
and determined at local level, at the discretion of the Standards
Board's ethical standards officers, without compromising the integrity
of the system as a whole.
19. We acknowledge concerns raised by some
about the time taken to bring forward the necessary secondary
legislation to implement local decision-making in this area. This
has been a consequence of both extensive public consultation and
the difficult issues this has raised, some of which have necessitated
further primary legislation.
20. A first round of consultation began
in May 2002 on how allegations of misconduct by councillors might
be handled at local level. This produced more than 1,000 responses,
which raised some important issues, in particular whether the
proposed investigative role of the monitoring officer could give
rise to a conflict on interests. This arises because the monitoring
officer is the usual source for members of advice regarding their
duties under the code of conduct. A conflict of interest would
arise if the monitoring officer was required to investigate an
allegation relating to an action by the member following earlier
advice by the officer on that issue. The Government therefore
decided that the monitoring officer must be allowed to nominate
another person to conduct investigations in the case of such possible
conflicts on interest. To achieve this, amendments to the Local
Government Act 2000 were included in the Bill which became the
Local Government Act 2003.
21. Until this amendment was put into effect,
it was not therefore possible to make regulations implementing
the local investigation of allegations. In the meantime, it was
decided that a first set of regulations would be made concerning
the determination by standards committees of allegations which
have been investigated by the Standards Board's ethical standards
officers. These regulations came into effect in June 2003, and
enable less serious allegations against councillors to be decided
by local standards committees, rather than by the Adjudication
Panel.
22. Following the coming into effect of
the provision in the Local Government Act 2003 allowing the monitoring
officer to nominate another person to conduct investigations in
November 2003, the way was then open for a further set of regulations
to be made allowing for local investigations to be undertaken.
A second round of consultation therefore began in February 2004
and concluded in May, on proposals to make provision for monitoring
officers to carry out investigations of allegations referred to
them by ethical standards officers. About 360 responses were received
to this consultation, again raising a wide range of issues.
23. Again, these responses have been carefully
considered, and reflected in amendments we have made to the original
proposals. Regulations were laid on 14 October to allow allegations
to be investigated and determined locally where ethical standards
officers consider this is the most appropriate level and refer
the cases to the councils concerned. The Regulations will come
into effect on 4 November 2004.
24. We recognise that some people have been
disappointed that standards committees could not have been provided
with powers to determine cases earlier and that the delay has
encouraged the impression of a centralised policing system. However,
although the process has taken longer than originally envisaged,
the end result is a more thorough and robust system which is better
able to ensure consistency across the country.
EFFECTIVENESS OF
THE NEW
ETHICAL FRAMEWORK
25. Both the Standards Board and the code
of conduct have achieved considerable support across local government
in a short time. This is demonstrated by the findings of recent
MORI research which has demonstrated high levels of satisfaction
with the work of the Board and the code of conduct and a recognition
that the problem it is tackling is a continuing issue of public
concern. The research found, for example, that 73% of members
and officers questioned believe the public is concerned about
members' standards of conduct.
26. The Board's work, including the guidance
it issues to local authorities, is helping to ensure that ethical
issues are seen to be taken seriously. The aim is that public
trust in elected members is maintained and increased.
27. The arrangements strike a balance between
nationally-enshrined principles, an independent Standards Board
investigating serious cases of misconduct, and local standards
committees both to consider less serious allegations at local
level and to promote high standards of conduct in individual councils.
28. We recognise the importance of keeping the
standards regime and the Standards Board's role under review to
give the opportunity for the regime to be further developed if
necessary in the light of experience gained from its operation.
The code of conduct has now been in operation for about two and
a half years, and while there is a considerable amount of experience
of the operation of the rules, we need to assess whether the code
is continuing to meet the objectives which it was created to achieve.
The Standards Board therefore recently began a review of the model
code. We will wish to consider carefully the Board's findings
and recommendations. A review of the Board, its role and operation,
is scheduled for 2006.
THE BOARD'S
RELATIONSHIPS WITH
OTHER REGULATORY
ORGANISATIONS, BODIES,
CENTRAL GOVERNMENT,
AND LOCAL
GOVERNMENT STAKEHOLDERS
29. The Board is an independent body. Ethical
standards officers, appointed by the Board, have complete control
of their own casework, and there is no intervention by other bodies
or central Government in decisions made on individual cases. However,
the Board has developed positive relationships with other organisations
and local government stakeholders. This includes the creation
of a steering committee in partnership with the Audit Commission,
the Local Government Ombudsman, and the Improvement and Development
Agency to assist in the coordination of policies affecting ethical
standards in local government.
30. The Board provides guidance to local
authorities, including parishes, on the interpretation of the
code of conduct, and has undertaken a series of presentations
to and meetings with local authority representative bodies.
31. The Board has also developed a strong
working relationship with central Government. The Government fully
supports the Board and greatly values its work. The Board's relationship
with the Office is provided for in legislation and a financial
memorandum setting out conditions attached to the grant provided
to the Board. Regular monthly meetings are held at official level
between the Office and the Board's Chief Executive and senior
directors to discuss performance issues and other matters of common
interest. An annual business plan and regular progress reports
are provided by the Board, and ad hoc meetings are held between
Ministers and the Board's Chair.
32. The Office works closely with the Board
to determine appropriate resourcing to ensure it continues to
provide value for money. The Board expressed its concerns last
year to the Office about its increasing workload and the need
to avoid the build up of case backlogs. Following discussions
with the Board, Ministers agreed an increase in funding to the
Board for 2003-04 from £8 million to £8.944 million,
and £8.94 million in 2004-05, so as to enable the Board to
meet its statutory obligations and provide an effective service.
33. The Board was also closely involved
with the Office in the development of the Handbook of Good Practice
on Public Ethics, launched by member states including the UK at
a Council of Europe conference earlier this year. The Handbook
draws together good practice ideas, with the aim of disseminating
good practice in the establishment and maintenance of ethical
regimes and high standards of public life across Europe.
THE BOARD'S
ROLE IN
SUPPORTING THE
ESTABLISHMENT AND
OPERATION OF
STANDARDS COMMITTEES
AT A
LOCAL LEVEL
34. Standards committees have a crucial
role in supporting local members and promoting high standards
of conduct at local level. The Local Government Act 2000 provided
that authorities must establish standards committees, whose general
functions would be the promotion and maintenance of high standards
of conduct by members, and the giving of assistance to members
to follow their code of conduct. In addition, committees have
the specific functions of advising the authority on the adoption
or revision of codes of conduct, monitoring the operation of the
codes, and advising and training members on matters relating to
the codes.
35. Regulations in 2001 made provision relating
to the size and composition of committees, including the appointment
of independent members. Subsequent Regulations in 2003 and 2004
have further developed the standards committees' role. Provision
was made in 2003 for committees to make determinations in cases
following an investigation by an ethical standards officer appointed
by the Standards Board. Further Regulations coming into effect
in November 2004 provide for committees to make determinations
following investigations by the local monitoring officer.
36. The Board has developed very positive
relationships with local standards committees to ensure they are
able to fulfil their role. The guidance material it has issued
to assist committees in undertaking their role and sharing best
practice has been well received. The Board has hosted three Annual
Conferences of standards committees which have also been warmly
welcomed.
37. The Board's guidance has assisted members
through each stage of the development of local authorities' statutory
role. The Regulations coming into effect in November 2004, making
provision for local investigation and determination, will be followed
by new guidance from the Board to assist monitoring officers in
undertaking their investigations, to help ensure that the new
regime for dealing with less serious cases by standards committees
will operate effectively.
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