Public Eye - Spring 2008 - Mills & Reeve

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Welcome to the spring edition of Public Eye, our local authority newsletter. With Christmas firmly out of the way, we look forward to a year of interesting developments for local authorities. In this issue, we examine the Government’s new take on the planning gain supplement (PGS) – the community infrastructure levy – and consider whether it is just another guise for the PGS. Regeneration projects could benefit from rosier finances if local asset backed vehicles (LABVs) are successfully introduced into the local government sphere – we explore the background of LABVs and what they could mean in the future. Insolvency in the construction industry is a major headache for local authorities and we look at some pragmatic ways to overcome, or at least reduce, the risk of contractors’ insolvency hitting your construction projects hard. We also review the dramatic changes arising out of the Local Government and Public Involvement in Heath Act 2007 for councillor misconduct investigations. Finally, some recent equal pay cases relating to pay protection and back pay are given close scrutiny. Contents: 3 Full steam ahead: local handling of complaints about members The Local Government and Public Involvement in Health Act 2007 is bringing about changes to how complaints about members are handled. 4 A work in progress: the community infrastructure levy The planning gain supplement is dead – long live the community infrastructure levy? Nathan Holden Partner and Head of Local Authorities Tel: 0121 456 8350 E-mail: nathan.holden@mills-reeve.com We welcome feedback on our publications and therefore, should you have any comments, please feel free to contact me. 5 Pain relief: insolvency in the construction industry How local authorities can prevent or limit the damage when insolvency hits their construction partners. 6 Equal pay: recent developments in the public sector Two new cases have cropped up to bring more complexity to equal pay. 8 A future prospect? Local asset backed vehicles The Government is looking to promote new ways of managing local authorities' assets to fund regeneration. 10 Case law update 11 In brief 12 Deals and news 2
Full steam ahead: local handling of complaints about members From April 2008 the Local Government and Public Involvement in Health Act 2007 (the 2007 Act) will dramatically alter the course of how allegations into breaches of the Code of Conduct are handled. The new pair of safe hands will be in the form of the Local Standards Committee rather than the Standards Board for England. • There will be a new devolved regime for the handling of complaints against members • The deadline for implementation is 1 April 2008 • All complaints will be the primary responsibility of the Local Standards Committee • Local authorities and their monitoring officers will need to start preparing now • New regulations will be forthcoming in due course Johann Wylly 0121 456 8226 johann.wylly@mills-reeve.com Previously, all complaints were dealt with by the Standards Board, which was originally established in 2001, but focus will now shift to its role as regulator, rather than investigator. This role extends the board’s function of providing expert guidance to local authorities on the Code of Conduct, via publication of the Code of Conduct: Guide for Members and the Pocket Guide to the Code of Conduct. The following amendments will mean that, from April 2008, the 2007 Act inserts a new section 57A into the Local Government Act 2000 substituting it for section 58. The new standards devolutionary regime has been fully supported by the Local Government Association, which has stated that such matters are best dealt with at a local level. The Local Standards Committee will make an initial assessment of misconduct allegations. Once it receives a complaint, it has three options as follows: • refer it to the monitoring officer who will subsequently investigate it; • refer it to the Standards Board; or • make a decision not to take any action at all. However, any reference to the Standards Board will only be on exceptional grounds, such as in the case of conflict issues or very serious allegations. It will be for the monitoring officer to shoulder the responsibility of investigation in most circumstances. What should monitoring officers be aware of? This new procedure amplifies monitoring officers’ responsibilities. 57B of the 2000 Act has created a right for a complainant to make a written request for a review of a decision by the Standards Committee to take no action in respect of an allegation. The clock starts ticking once a request is received so that the Standards Committee is convened, an assessment is made and a decision regarding the allegation taken within three months. The Standards Committee must be properly constituted to uphold the rules of natural justice, so that the investigating members are not identical to the decision-making members. There should be at least two sub-committees, one for the assessment stage and one for the review decision. It does not mean that a member involved in either of the initial stages should not be involved in the conduct decision later on. The Standards Board has produced a Checklist for local authorities in the run up to April 2008 on their website. The constitution of Standards Committees is going to be a major consideration for local authorities, necessitating planning ahead and pooling members. Monitoring officers should consider: • ensuring that the local authority clears outstanding investigations before 1 April 2008; • establishing the arrangements for delegating assessment and review to sub-committees; • training members and equipping them for their new roles; • recruiting independent members; and • joint working, if appropriate, with neighbouring local authorities. The Department for Communities and Local Government has released a consultation document on the detailed arrangements for putting into effect orders and regulations, and the closing date for responses was 15 February 2008. There will therefore only be a short timeframe between release of regulations and the deadline of 1 April 2008. Local authorities must not get shipwrecked by the new processes otherwise they may be subject to the Standards Board’s powers of intervention if their functions are not discharged satisfactorily. However, having an expert navigator, namely, the monitoring officer, to steer the local course will reap vital benefits in promoting local trust in the new ethical regime. 3
Page 1: Publiceye Spring 2008 Full steam ah
Page 5 and 6: • Insolvency can have serious con
Page 7 and 8: female members with equal pay claim
Page 9 and 10: Local authorities are currently sit
Page 11 and 12: In brief Johann Wylly 0121 456 8226

Public Eye - Spring 2008 - Mills & Reeve

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