On the 15 November 2011, the Localism Bill received Royal Assent and became the Localism Act 2011 (“the Localism Act”). The relevant provisions relating to standards matters were set out in Chapter 7 and Schedule 4 of the Localism Act.

A report by the Director of Law, HR and Asset Management provided an update in respect of the implications of the Localism Act 2011 on the current Standards regime.

The Committee was informed that the Coalition Agreement ‘Our Programme for Government’ included the commitment to “abolish the Standards Board regime”.  The Government had stated that it considered the Standards regime, consisting of a centrally prescribed model code of conduct, standards committees with the power to suspend a Council Member and regulated by a central quango, was inconsistent with the principles of localism and that the regime could be a vehicle for vexatious or politically motivated complaints.

Appended to the Director’s report at Appendix 1 was an Explanatory Note detailing the key implications of the Localism Act on the Standards Regime. It was noted that the changes introduced by the Act concerning the standards regime were expected to take effect from 1 July 2012. On the 23 December 2011 the Local Government Lawyer reported that, in a letter to the Association of Council Secretaries and Solicitors (ACSeS), the Department for Communities and Local Government (DCLG) had written that while the Standards Board for England would cease to regulate Member standards from the 31 January 2012, “we envisage that the remaining local elements of the current regime, including statutory standards committees with the power to suspend councillors, will be abolished on 1 July 2012”.

In the same letter, the DCLG had responded to concerns expressed by ACSeS that the original proposed implementation date of 1 April 2012 for the new local government standards regime was impracticable, in part due to the timing of the local Council elections and meetings in spring. The DCLG had advised ACSeS that from 1 July onward, all local government standards matters (including the consideration and determination of outstanding complaints made during the period the Standards Board regime was operating), would become the responsibility of Councils and would be dealt with under the new arrangements imposed by the Localism Act.

The Committee noted that the DCLG’s decision to delay the implementation of the new local government standards Regime until the 1 July 2012 meant that the Government had more time to prepare the outstanding regulations defining what constituted a “disclosable pecuniary interest” as required by Section 30(3) of the Localism Act. In its letter to ACSeS, the DCLG advised that it recognised that Councils would need sufficient time to “advertise for and then appoint an “independent person” and put in place arrangements for handling allegations of breaches of their code, and principal authorities will have to put in place, and agree, arrangements with parish councils for both a code and register of interest related activity”.

Appendix 2 to the Director’s report set out the Association of Council Secretaries and Solicitors (ACSeS) draft Code of Conduct for Elected Members (“the Member Code of Conduct”) for Members’ consideration.  The draft code had been used by many Merseyside Authorities as the basis for a new Member code of conduct.  A further meeting of the North West Branch of ACSeS was scheduled for 20 January, which was expected to be attended by the Monitoring Officer and/or the Head of Legal and Member Services.  Discussions would be held concerning the implications of the Localism Act and in particular in relation to the standards regime and the issues that required consideration. An update of the outcome of this meeting will be provided at the next meeting of the Committee.

Many Merseyside Authorities had indicated (along with the Committee) that there was merit in one single Member code of conduct being developed for Merseyside Authorities.  This particular issue would be raised at the next ACSeS Branch meeting, which was attended by officers from the Merseyside Authorities.  Members reaffirmed their view that the adoption of a pan Merseyside Standards regime would bring consistency of standards across the whole region.

A number of Members had expressed concern over certain Members’ conduct and behaviour.  Some Members had emphasised the importance of improving the standard of Members’ conduct and behaviour and that all Members of the  Committee had an obligation to lead by example.  Given the new standards regime that had been introduced by the Localism Act, the Committee was asked to consider whether it was an opportune time to progress this issue with a view to bringing about necessary improvement in behaviour.

The Committee considered the following issues and gave consideration to what action could be taken to ensure that the Council was in the position to discharge it duties and responsibilities, arising from the Localism Act in respect of Members’ standards from 1 July 2012:

(1)  The terms of reference of the future of the Council’s Standards Committee;

  (2)  A Members’ Code of Conduct;

(3)   The role, description and recruitment process for independent persons;

  (4)  The Register of Interests;

(5)  The arrangements, procedures and protocols necessary to effectively deal with alleged breaches of the Member Code of Conduct;

(6)   The arrangements and procedures to deal with dispensations; (7)   Member/Co-opted Member training needs; and

(8)  A possible protocol for dealing with and making referrals to the Police in relation to alleged criminal activities/offences.

In order to progress the above issues in an appropriate manner, the Committee was invited to consider establishing a cross-party working group.  Appendix 3 to the Director’s report set out the draft terms of reference for a Standards Committee Working Group, which could be tasked with considering the eight issues detailed above (and any other relevant matters and issues that may arise) and developing options in relation to them for consideration by the Committee.

A number of issues had been raised in relation to the Localism Act and the interpretation of certain provisions and the powers/options available to Councils.  ACSeS, on behalf of its Members, had sought legal advice from Clive Sheldon QC on the following:

(a)   The range of options open to Councils to impose sanctions for breaches of the code of conduct under the 2011 Act; and

(b)   Whether past independent Members of standards committees are eligible to assume the role of “independent person” under the Localism Act.

A summary of Counsel’s Advice was provided at Appendix 4 to the Director’s report and a full copy of Counsel’s Advice was set out thereafter.

Members discussed the report in detail noting that under the Localism Act the current independent members would not be eligible to undertake the new role of independent person after 30 June 2012 in respect of Wirral Council’s Standards complaints.  It was noted that may be possible for them to act as independent persons for another Council, if a Council appointed them to do so.  It was also noted that further guidance was still awaited on the independent person and that it would be different to that of the independent member under the current Standards regime.

The Committee also agreed that all Members of the Council must be trained on the new Code of Conduct and Committee Members and their deputies must receive specific training on the new Standards process and on the administration of complaints about Members.

RESOLVED: That

(1)  the Explanatory Note and Counsel’s Advice set out at Appendices 1, 2 and 4 to the report be noted;

(2)  a Standards Committee Working Group be established in accordance with the Terms of Reference set out at Appendix 3 to this report but to also include the use and review of the existing Members’ Code of Conduct and written arrangements as the basis of any proposed changes (if required);

(3)  the Membership of the Working Group at (2) above comprise of Councillors C Blakeley, W Davies, L Rowlands, J Salter and P Williams and Mr K Harrison; and

(4)  the Director of Law, HR and Asset Management be requested to update the Members’ Code of Conduct in accordance with the decision at (2) above as a starting point for the development of a new framework for the Standards regime.