A New Ethical Framework for Local Government in Scotland

Chapter 1 - A New Ethical Framework

The Government’s Agenda

1 Effective democratic government – be it at central or local level – requires a bond of trust between the people and those in public life who serve them. That trust requires councils to be open, and in touch with their communities. It requires clarity about where decisions are taken, and who is to be held to account for them. It demands that councils accept the discipline necessary to achieve best value in local services. It also demands that councils accept the discipline necessary to guarantee the highest standards of conduct.

2 Last July the Government published the Report 1 of Lord Nolan and his Committee (“the Nolan Report”). That Report found that the vast majority of councillors are decent, honest and hard working. In no sense is corruption widespread. But any incident of corruption or misconduct in public life, however infrequent or isolated, is wholly unacceptable.

3 The Nolan Report concluded that there was in local government a profusion of rules resulting in a growing lack of clarity over standards of conduct. The Report thus recommended that a new start be made on an ethical framework for local government.

4 Accordingly, the Prime Minister committed the Government, working in partnership with local government, to establish a new ethical framework for the conduct of the more than 20,000 councillors and 2 million council staff in Great Britain. It is the Government’s agenda to make the radical changes needed to put in place a new conduct regime which will build and secure the people’s trust in those who serve them in their local councils. With the advent of the Scottish Parliament, it is particularly important that local authorities are seen to merit their place in the new constitutional settlement.

The Need for Change

5 The weaknesses identified by the Nolan Report must be addressed. While the vast majority of councillors and council staff are decent and honest, there has been substantial public concern at allegations of misconduct within individual councils in Scotland, and the current ethical framework does not allow for open and transparent investigation of such allegations.

6 There is currently an extensive ethical framework covering the actions and behaviour of councillors. This includes the present National Code of Local Government Conduct, which has legal force but no specific enforcement mechanism. The legal framework also includes specific provisions which prevent a councillor from, for example, voting on contracts in which he or she has an interest. The present weaknesses arise to a considerable extent from extensive modifications made over a number of years which have resulted in an overly complex framework. The current framework will not withstand further piecemeal change. The Government is, therefore, committed to replace it with a new comprehensive ethical framework, so that all will know with clarity the conduct expected of those in local government, and will have confidence that any wrongdoing will be rapidly and effectively addressed.

7 This consultation paper seeks responses on the Government’s proposals to establish a framework which would offer: clarity as to the standards of conduct required; a mechanism for a council collectively to act against an individual councillor for misconduct, other than through party machinery; an alternative to the archaic penalty of audit surcharge; a proper, workable definition of the position of council officers, including the head of paid service, the monitoring officer, and the chief financial officer; arrangements for “whistleblowing”; safeguards in relation to the movement of council staff to the private sector; clear direction for the way councils operate the planning system.

8 To achieve these effects, and subject to consideration of views expressed in response to this consultation paper, the Government propose that under the new framework: every councillor will be bound by a code of conduct which is easy to understand and relevant to the decisions which have to be made in council life; there will be arrangements for the investigation of all allegations of malpractice and wrongdoing; for serious allegations the investigation will be independent; all investigations will be rapid and thorough, and their findings will be quickly acted upon; it will be clear on whom in particular circumstances the duties to investigate and to act will fall (the council, one of its committees, an officer of the council, or on a new independent body – the National Standards Commission); there will be appropriate appeals mechanisms; the kind of action to be taken in particular circumstances will be prescribed, allowing appropriate discretion to ensure that any action taken, including penalty imposed, is proportionate to the allegation or proven breach of the Code. This will range from public censure to suspension of council membership.

9 The Government believe that this framework will give local government itself a leading responsibility for its own standards, as favoured by the Nolan Report. To establish this framework we will build on the recommendations of that Report. We will also take account of the submissions which we have received commenting on those recommendations, and of our discussions with the Convention of Scottish Local Authorities, the Accounts Commission and the Commissioner for Local Administration in Scotland. In relation to the conduct of officers we will have regard to our consideration of the rules restricting political activities.

10 Whilst the Government are now clear about the broad structure of the framework, there remain more detailed issues on which we have yet to form firm views. The following chapters outline questions about these detailed issues.

[1] Third Report of the Committee on Standards in Public Life: Standards of Conduct in Local Government in England, Scotland and Wales, July 1997.Cm 3702. [Back]