151 officers to lose “vital protections”

The government is pushing ahead with plans to loosen protection for section 151 officers facing dismissal, in the face of widespread opposition to the move within the sector.

Local government minister Kris Hopkins (left) this week announced that the government had laid down secondary legislation to remove the requirement for a “designated independent person” to adjudicate disciplinary disputes involving senior council staff.

Hopkins said the current rules, which apply to disciplinary action against chief executives, monitoring officers and chief finance officers, are “slow and costly”, and sometimes lead to large pay-outs by councils looking to avoid the process.

In a written statement to Parliament, he said: “Local government estimates the review process can cost at least £100,000 in legal fees, not counting independent investigation costs and salary for the suspended officer. 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.”

The new rules will require disciplinary decisions to be made before full meetings of the full council, members of which will be required to consider advice from an independent panel.

The proposed legislation requires members to be resident in the council area, and there will be restrictions on inflated fees for the advice.

A consultation on the issue last year found widespread opposition to the government’s proposals. Respondents voiced worries that protection for whistleblowers would be weakened by the replacement of an expert barrister by laypeople in providing independent advice.

Rob Whiteman, chief executive, CIPFA

Rob Whiteman, chief executive of the Chartered Institute for Public Finance and Accountancy, told Room 151: “It is worrying that despite the reasoned concerns expressed by the local government sector at the government’s plan to abolish vital protections of local authority staff that they appear, in the dying days of this parliament, to have carried on regardless.”

He said that section 151 officers are able to call upon the protection of a designated independent person in disputes due to their specific legal duty to act in the interests of the local taxpayer.

“With the continuing financial pressure being placed on local authorities this need has never been greater nor more likely to lead to divergence of views,” he said. “The potential for conflict between financial imperatives and political priorities makes it essential that section 151 officers have adequate protection in the exercise of their statutory functions, so that they can carry out their statutory duties without fear or favour.”

The government was creating a situation where central government may have to intervene with greater frequency in local governance failure, he said.

“Weaker officers, no effective standards regime and abolition of the independent appointment of auditors is an unfortunate full house being dealt against probity and ethics,” he said.

But Hopkins said: “The reforms 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.”

In addition, he announced separate plans to publish guidance to local government on the use of severance agreements and “off-payroll” arrangements, reflecting reforms undertaken in Whitehall.