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 2011

• 158 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 3rd December 2011and schedules 5 – 7 (referendums)

• Localism Act provisions will apply to precepts for 2012 -2013

• 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 2011 -12” and “The Limitation of Council Tax Precepts (Alternative Notional Amounts) Report (England) 2011 -12”

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 1st 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 conductOutline

• Existing regime abolished in entirety• New regime in Act – code and register of

interests – likely effective date 1st July 2012 – applies England and Wales – no “teeth” in code

• Standards Board to be abolished – likely effective date 1st 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 CommitteeWhether to appoint

• Existing committee role will end on implementation (likely to be 1st 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

1st 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