DCLG to publish secondary legislation on dismissal of senior staff by councils

The Government will this week lay before Parliament secondary legislation to reduce the “unnecessary and costly bureaucratic process” that councils must go through to take decisions about disciplinary matters, including dismissal, of their most senior staff.

In a written ministerial statement Local Government Minister Kris Hopkins claimed that current arrangements were a legal minefield that could pressure authorities into giving large payoffs to chief executives they wanted to dismiss.

He said: “Slow and costly bureaucracy requires councils to appoint a ‘designated independent person’, usually a Queen’s Counsel, to review dismissal and disciplinary cases for chief executives.

“Councils seeking to dismiss a chief executive for misconduct or poor performance have in some cases paid out inflated lump sums to avoid the cost of taking this bureaucratic route.”

The minister added that local government estimated the review process could cost at least £100,000 in legal fees, not counting independent investigation costs and salary for the suspended officer. He claimed that one previous case cost £420,000 and took 16 months to adjudicate.

“Ministers believe decisions by full council ensure proper democratic accountability, without the need for a centrally dictated process,” Hopkins said.

The legislation* will require such decisions to be taken transparently by full council. When making such a decision, the council will be required to consider any advice from a panel of independent persons.

These are the independent persons appointed for the purposes of the members’ conduct regime under the Localism Act, Hopkins said. Where possible, they must be local government electors for the area concerned, he said – “there will be restrictions against paying inflated expenses for such advice.”

Hopkins claimed that the reforms would “give councils the power to decide on the best disciplinary process that will deliver value for money for local taxpayers, whilst retaining independent scrutiny and accountability to local people”.

The minister said the Department for Communities and Local Government would also shortly be publishing guidance to local government on the use of severance agreements and on ‘off-payroll’ arrangements, reflecting reforms the Government had introduced at a civil service level.

In the statement the minister also said that:

1. The DCLG had developed guidance for local authority leaders and their teams on cyber resilience;
2. The Department and the Ministry of Justice had agreed to remove the annual fee for councillors as data controllers under the Data Protection Act;
3. The Triennial Review of the Valuation Tribunal Service and the Valuation Tribunal for England would start. “The review will examine their role, whether they are operating efficiently, and whether their control and governance arrangements continue to meet the recognised principles of good corporate governance”; and
4. The DCLG had published its response to consultation and associated secondary legislation on curtailing the powers of entry of the Valuation Office Agency, using powers under the Protection of Freedoms Act 2012. “These reforms include protection from unnecessary and intrusive visits into a taxpayer’s home or business, and introduce a new requirement for consent from a First-Tier Tribunal before any power of entry. It is intended that this will create a considerable road block and check and balance against use of the power.”

The written ministerial statement can be viewed here.

*UPDATE (26/03/15): The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2015 have now been published. They will come into force on 11 May.