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
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