The Local Authorities (Model Code of Conduct) (England) Order 2001

PART 2 INTERESTS

Personal Interests

8.—(1) A member must regard himself as having a personal interest in any matter if the matter relates to an interest in respect of which notification must be given under paragraphs 14 and 15 below, or if a decision upon it might reasonably be regarded as affecting to a greater extent than other council tax payers, ratepayers or inhabitants of the authority’s area, the well-being or financial position of himself, a relative or a friend or—

(a) any employment or business carried on by such persons;

(b) any person who employs or has appointed such persons, any firm in which they are a partner, or any company of which they are directors;

(c) any corporate body in which such persons have a beneficial interest in a class of securities exceeding the nominal value of £5,000; or

(d) any body listed in sub-paragraphs (a) to (e) of paragraph 15 below in which such persons hold a position of general control or management.

(2) In this paragraph—

(a) “relative” means a spouse, partner, parent, parent-in-law, son, daughter, step-son, step-daughter, child of a partner, brother, sister, grandparent, grandchild, uncle, aunt, nephew, niece, or the spouse or partner of any of the preceeding persons; and

(b) “partner” in sub-paragraph (2)(a) above means a member of a couple who live together.

Disclosure of Personal Interests

9.—(1) A member with a personal interest in a matter who attends a meeting of the authority at which the matter is considered must disclose to that meeting the existence and nature of that interest at the commencement of that consideration, or when the interest becomes apparent.

(2) Subject to paragraph 12(1)(b) below, a member with a personal interest in any matter who has made an executive decision in relation to that matter must ensure that any written statement(1) of that decision records the existence and nature of that interest.

Prejudicial Interests

10.—(1) Subject to sub-paragraph (2) below, a member with a personal interest in a matter also has a prejudicial interest in that matter if the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member’s judgement of the public interest.

(2) A member may regard himself as not having a prejudicial interest in a matter if that matter relates to—

(a) another relevant authority of which he is a member;

(b) another public authority in which he holds a position of general control or management;

(c) a body to which he has been appointed or nominated by the authority as its representative;

(d) the housing functions of the authority where the member holds a tenancy or lease with a relevant authority, provided that he does not have arrears of rent with that relevant authority of more than two months, and provided that those functions do not relate particularly to the member’s tenancy or lease;

(e) the functions of the authority in respect of school meals, transport and travelling expenses, where the member is a guardian or parent of a child in full time education, unless it relates particularly to the school which the child attends;

(f) the functions of the authority in respect of statutory sick pay under Part XI of the Social Security Contributions and Benefits Act 1992(2), where the member is in receipt of, or is entitled to the receipt of such pay from a relevant authority; and

(g) the functions of the authority in respect of an allowance or payment made under sections 173 to 176 of the Local Government Act 1972(3) or section 18 of the Local Government and Housing Act 1989(4).

Overview and Scrutiny Committees

11.—(1) For the purposes of this Part, a member must if he is involved in the consideration of a matter at a meeting of an overview and scrutiny committee of the authority or a sub-committee of such a committee, regard himself as having a personal and a prejudicial interest if that consideration relates to a decision made, or action taken, by another of the authority's—

(a) committees or sub-committees; or

(b) joint committees or joint sub-committees,

of which he may also be a member.

(2) But sub-paragraph (1) above shall not apply if that member attends that meeting for the purpose of answering questions or otherwise giving evidence relating to that decision or action.

Participation in Relation to Disclosed Interests

12.—(1) Subject to sub-paragraph (2) below, a member with a prejudicial interest in any matter must—

(a) withdraw from the room or chamber where a meeting is being held whenever it becomes apparent that the matter is being considered at that meeting, unless he has obtained a dispensation(5) from the authority’s standard’s committee;

(b) not exercise executive functions in relation to that matter; and

(c) not seek improperly to influence a decision about that matter.

(2) A member with a prejudicial interest may, unless that interest is of a financial nature, and unless it is an interest of the type described in paragraph 11 above, participate in a meeting of the authority's—

(a) overview and scrutiny committees; and

(b) joint or area committees,

to the extent that such committees are not exercising functions of the authority or its executive.

13.  For the purposes of this Part, “meeting” means any meeting of—

(a) the authority;

(b) the executive of the authority; or

(c) any of the authority’s or its executive’s committees, sub-committees, joint committees, joint sub-committees, or area committees.

(1)

See regulation 4 of S.I. 2000/3272 for the requirement to make a written statement in respect of an executive decision.

(2)

1992 c. 4. Part XI has been amended.

(3)

1972 c. 70. Sections 173 to 176 were amended by section 194 of and paragraphs 26 and 27 of Schedule 11 to the Local Government and Housing Act 1989; section 7 of the Miscellaneous Financial Provisions Act 1983 (c. 29); sections 25 and 194 of and Schedule 34 to the Local Government, Planning and Land Act 1980 (c. 65); section 11(3) of and Schedule V to the Water Act 1983; section 328 of and paragraph 18 and 19 of Schedule 29 to the Greater London Authority Act 1999; section 84 of and paragraph 18 of Schedule 14 to the Local Government Act 1985 and section 237 of and Schedule 13 to the Education Reform Act 1988. Section 173A was inserted by section 24(2) of the Local Government, Planning and Land Act 1980.

(4)

1989 c. 42. Section 18 was amended by section 99 of the Local Government Act 2000; section 43 of and paragraph 37 to Schedule 4 of the Police and Magistrates' Court Act 1994 and section 582(1) of and paragraph 97 of Schedule 37 to the Education Act 1996.

(5)

Under section 81(5) of the Local Government Act 2000, the Secretary of State may prescribe in regulations the circumstances in which standards committees may grant dispensations.