DCLG lays regulations on disclosable pecuniary interests before Parliament

The Government has laid the regulations for disclosable pecuniary interests (DPIs) before Parliament ahead of the new standards regime for local government coming into force on 1 July 2012.

Key features of the new standards framework include the requirement for local authorities to have a code of conduct based on the Nolan principles and the involvement of an ‘independent person’ in dealing with allegations of misconduct.

Relevant authorities will also have to maintain a register of pecuniary interests. A failure by members to comply with the arrangements on DPIs without reasonable excuse will be a new criminal offence, with a penalty of a fine of up to £5,000 and disqualification from office for up to five years.

The Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012 were made at the same time as the Localism Act 2011 (Commencement No.6 and Transitional, Savings and Transitory Provisions) Order, which confrms the new regime will come into force at the beginning of next month.

The new Regulations specify a member’s DPIs as pecuniary interests covering:

  • employment, office, trade, profession or vocation;
  • sponsorship;
  • contracts with the relevant authority;
  • land;
  • licences to occupy land;
  • corporate tenancies;
  • beneficial interests in securities.

Further detail is set out below. Fulll on these can be obtained in the Regulations, which can be viewed here.

The Commencement Order includes out two transitional measures. These relate to the appointment of someone who is currently the independent chair or member of the existing standards committee as the local authority’s ‘independent person’, and the ability of police authorities to continue to operate a local standards regime under previous legislation ahead of their abolition in November 2012.  

The Commencement Order contains also sets out how complaints about a member’s conduct that are not resolved by 1 July should be dealt with.

In relation to codes of conduct, junior minister Bob Neill published In April 2012 an “illustrative text” of what one might look like. This came shortly after the Local Government Association and other stakeholders issued their own draft.

Last month the National Association of Local Councils, which represents the interests of neighbourhood, parish, village and town councils, also published its own template. 

Philip Hoult

Disclosable Pecuniary Interests

Employment, office, trade, profession or vacation

Any employment, office, trade, profession or vocation carried on for profit or gain.

Sponsorship

Any payment or provision of any other financial benefit (other than from the relevant authority) made or provided within the relevant period in respect of any expenses incurred by M in carrying out duties as a member, or towards the election expenses of M.

This includes any payment or financial benefit from a trade union within the meaning of the Trade Union and Labour Relations (Consolidation) Act 1992.

Contracts

Any contract which is made between the relevant person (or a body in which the relevant person has a beneficial interest) and the relevant authority:

(a) under which goods or services are to be provided or works are to be executed; and

(b) which has not been fully discharged.

Land

Any beneficial interest in land which is within the area of the relevant authority.

Licences

Any licence (alone or jointly with others) to occupy land in the area of the relevant authority for a month or longer.

Corporate tenancies

Any tenancy where (to M’s knowledge):

(a) the landlord is the relevant authority; and

(b) the tenant is a body in which the relevant person has a beneficial interest.

Securities

Any beneficial interest in securities of a body where:

(a) that body (to M’s knowledge) has a place of business or land in the area of the relevant authority; and

(b) either:

(i) the total nominal value of the securities exceeds £25,000 or one hundredth of the total issued share capital of that body; or

(ii) if the share capital of that body is of more than one class, the total nominal value of the shares of any one class in which the relevant person has a beneficial interest exceeds one hundredth of the total issued share capital of that class.

Source: The Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012