Proposals in the Localism Bill to abolish Standards for England and councils’ national code of conduct could threaten good governance in local government
Government plans to abolish much of the current standards regime for local government are causing concern, not least in the House of Lords.
A cross-party group of peers supports the belief expressed by Sir Christopher Kelly, chair of the Committee on Standards in Public Life. He suggested that the proposed changes, included in the Localism Bill, risk ‘lower standards and a decline in public confidence’. The peers are lobbying to retain major features of the current system, such as standards committees and the national code of conduct.
The government wants to abolish Standards for England (formerly the Standards Board for England) and remove the statutory requirement on English councils to adopt a centrally prescribed code of conduct and maintain a standards committee. Instead, councils will be able to decide for themselves whether they wish to adopt a code for their members and on a process for investigating complaints.
In some respects, the Bill’s planned new duty on councils to promote and maintain high standards while making regulation more proportionate is welcome. Its intended result is a significant reduction in vexatious and politically motivated complaints against council members.
But it is essential that the good governance baby should not be thrown out with the bath water in the proposed abolition of the current standards regime. High standards within the new self-regulation framework are crucial, and one high-profile slip can taint a whole sector.
Codes of conduct for board members are an essential component of good corporate governance for all public service bodies as they define the values and standards of behaviour expected of individuals. Nationally set codes of conduct can be used to promote consistent standards of behaviour and probity, and to provide assurance for community stakeholders. Their existence helps minimise lapses and provides a framework for personal accountability.
A standards committee at a local level provides a mechanism for complaints to be investigated. It should act as a disincentive to misconduct through effective overview and complaints handling.
Among other things, the committee should help promote confidence in local democracy. To be effective, it must be chaired by an independent person appointed through open competition, who is able to command the trust of all political parties and of the public.
The importance of good governance in local government is underlined in the Accounts and Audit (England) Regulations 2011, which require councils to publish an annual governance statement. This must be prepared in accordance with the CIPFA/Solace framework ‘Delivering good governance in local government’, which outlines the attributes needed. It also recommends that councils maintain their own governance code including protocols for conduct and an effective standards committee.
It is not enough for good governance to be considered at an individual council level as proposed in the Localism Bill. Basic standards and practices must be consistent across the sector, so that its overall reputation is maintained.
In the autumn, CIPFA and Solace will start revising the guidance that accompanies the framework. This work will need to address the Localism Bill’s proposals and take account of the work of the Committee on Standards in Public Life and others to ensure that the governance arrangements in local government remain fit for purpose.
In the interim, CIPFA will be doing all it can to avoid any backwards steps in such a crucial area.
Kerry Ace is finance and policy manager at CIPFA
