The Local Authorities (Allowances for Members) (Wales) Regulations 2007

Explanatory Note

(This note is not part of the Regulations)

Section 18 of the Local Government and Housing Act 1989 provides the power for the Secretary of State to authorise or require any relevant authority specified in Regulations to make a scheme providing for the payment of (amongst others) a basic allowance to councillors and a special responsibility allowance to councillors with special responsibilities. This power is now vested in the National Assembly for Wales by virtue of the National Assembly for Wales (Transfer of Functions) Order 1999.

Section 100 of the Local Government Act 2000 (“the 2000 Act”) provides for the National Assembly for Wales to make Regulations with respect to travelling and subsistence allowances payable to members of such relevant authorities as may be prescribed and with respect to allowances payable to members of such relevant authorities as may be prescribed for attending conferences and meetings. Section 100 of the 2000 Act also provides for the National Assembly for Wales to make Regulations with respect to the reimbursement of expenses incurred by members of such authorities as may be prescribed by Regulations.

These Regulations make provision about the payment of allowances to members of county and county borough councils and fire and rescue authorities in Wales. They also make provision about the payment of allowances to members of National Park authorities and the reimbursement of certain expenses incurred by such members.

Part 2 of these Regulations requires county and county borough councils in Wales (“authorities”) to make schemes for the payment of allowances to their members. In making schemes, authorities are required to make provision for the payment of basic allowance (regulation 7). A scheme may also provide for the payment of special responsibility allowance (regulation 8) and care allowance (regulation 9).

The amount of basic allowance, special responsibility allowance and care allowance payable to a member of an authority must not, subject to the provision in regulation 11 concerning the period prior to 31 March 2009 and provisions concerning uprating in regulation 12, exceed the maximum amounts prescribed for those allowances (and in the case of special responsibility allowance extend beyond the responsibilities or duties prescribed) for that authority by the Independent Remuneration Panel for Wales (“the Panel”) under Part 6 of these Regulations (and regulations 7(2), 8(3) and 9(3) refer respectively).

Regulation 8(2) provides that special responsibility allowance is not payable to more than half the members of an authority.

Part 2 of these Regulations also provides that, in relation to basic allowance, special responsibility allowance and care allowance, a scheme must specify that where a member is suspended or partially suspended from that member’s responsibilities or duties as member, the part of each allowance payable to that member in respect of the responsibilities or duties from which the member is suspended must be withheld by the authority (and regulations 7(6), 8(6) and 9(4) refer).

Part 3 of these Regulations makes further provision for schemes for the payment of allowances. Regulation 12(1) to (3) provides that a scheme may make provision for an annual adjustment of allowances. Such an adjustment by an authority must not exceed the amount prescribed for that authority by the Panel (or must be made by reference to any index prescribed by the Panel) in an annual report or a supplementary report produced by the Panel.

Under regulation 12(4) a scheme may provide that where a payment of allowances has been made to a member for a period during which that member is (amongst others) suspended, the authority may require that such part of the allowance that relates to the period of suspension be repaid to the authority.

Regulation 13 provides that a scheme must contain a provision so as to allow a member to forgo any part of that member’s entitlement to an allowance under the scheme.

Part 4 of these Regulations provides for the payment by authorities of other allowances. Under regulation 15, members are entitled to receive travelling and subsistence allowances. Under regulation 16, authorities may provide for the payment of a co-optees' allowance to co-opted members who have such responsibilities or duties in respect of attendance at conferences and meetings as are prescribed by the Panel.

Regulation 15(3) and regulation 16(6) provide, respectively, that where a member or co-opted member is suspended or partially suspended from that member’s or co-opted member’s responsibilities or duties as a member or co-opted member, the part of each allowance payable to that member or co-opted member in respect of the responsibilities or duties from which the member or co-opted member is suspended must be withheld by the authority.

The rates of travelling and subsistence allowances payable by an authority must not, subject to the provisions concerning uprating in regulation 20, exceed the maximum amounts prescribed for those allowances for that authority by the Panel under Part 6 of these Regulations (and regulation 15(2) refers). The amount of co-optees' allowance payable by an authority must not, subject to the provision in regulation 19 concerning the period prior to 31 March 2009 and provisions concerning uprating in regulation 20, exceed the maximum amount prescribed for that allowance (or extend beyond the responsibilities or duties prescribed) for that authority by the Panel under Part 6 of these regulations (and regulation 16(2) refers).

Under regulation 17 a member or co-opted member of an authority may elect to forgo any part of that member’s entitlement to allowances payable under Part 4 of these Regulations.

Regulation 18 requires authorities to specify a time limit for the making of claims for travelling and subsistence allowances by the person to whom they are payable. Travelling and subsistence claims (except claims relating to travel by private motor vehicle) are to be made on an “actual” basis and must be accompanied by relevant receipts for expenditure incurred, subject to any requirement or limitation determined by an authority.

Regulation 19 makes provision in respect of the maximum amount of co-optees' allowance payable in the period prior to 31 March 2009.

Regulation 20 provides that an authority may make provision for an annual adjustment of allowances payable under Part 4 of these Regulations. Such an adjustment by an authority must not exceed the amount prescribed for that authority by the Panel (or must be made by reference to any index prescribed by the Panel) in an annual report or a supplementary report produced by the Panel.

Under regulation 21 an authority may provide that where a payment of allowances has been made under Part 4 of these Regulations to a member for a period during which that member is (amongst others) suspended, the authority may require that such part of the allowance that relates to the period of suspension be repaid to the authority.

Part 5 of these Regulations makes provision in respect of administrative arrangements. Regulation 22 provides for all claims for travelling and subsistence allowances to be accompanied by a statement that the claimant has not and will not make any other claim in respect of the matter to which the claim relates. Regulation 24 makes provision for records of allowances and the availability of such records to a local government elector.

Regulation 25(1) and (2) makes provision for the publication of a scheme and the publication of sums paid under that scheme. Regulation 25(3) makes provision for the publication of sums paid in respect of allowances payable under Part 4 of these Regulations.

Part 6 of these Regulations makes provision for the Panel. Regulation 26 requires the National Assembly for Wales to appoint the Panel. Regulation 27 provides that the Panel must consist of a Chairperson and a Vice chairperson together with three other members. One member of the Panel is to be appointed as Chairperson by the National Assembly for Wales. Regulation 28 provides for the tenure of Panel members and regulation 29 makes provision in relation to meetings of the Panel.

Regulations 30 and 31 provide for voting at meetings of the Panel and the quorum of the Panel respectively. Under regulation 32 it is for the National Assembly for Wales to pay the expenses incurred by the Panel in carrying out its functions and regulation 33 entitles the Panel to seek information or advice.

Regulation 34 requires the Panel to produce an initial report before 31 July 2008 (or such later date as the National Assembly for Wales may agree). The matters to be prescribed in the initial report are described at regulation 34(1) and (2).

Regulation 35 requires the Panel to produce during the financial year 1 April 2009 to 31 March 2010 (and in any event by 31 December 2009, or such later date as the National Assembly for Wales may agree) and each financial year thereafter an annual report. The matters to be prescribed in an annual report are described at regulation 35(1) and (2). Regulation 35(3)(a) obliges the Panel, in producing an annual report, to take account of any supplementary report produced prior to that annual report which prescribes matters which for the time being apply to any authority.

Regulation 36 entitles the Panel to produce supplementary reports which may prescribe from time to time and in relation to one or more authorities any of the matters that the Panel may prescribe in the initial report or in an annual report.

In producing the initial report, an annual report or a supplementary report, the Panel is obliged to consider any representations received from an authority in respect of the Panel’s functions in producing such a report and regulations 34(3), 35(3) and 36(2) refer respectively.

The Panel may also make recommendations as to which members of an authority are to be entitled to pensions in accordance with the Local Government Pensions Scheme Regulations 1997 (and regulation 37 refers). Such Panel recommendations may form part of the Panel’s initial report or a supplementary report.

Regulation 39 makes provision for publicising the reports of the Panel.

Part 7 of these Regulations makes provision for the amendment of the Local Authorities (Allowances for Members of County and County Borough Councils and National Park Authorities) (Wales) Regulations 2002 (“the 2002 Regulations”).

Regulation 40(6) amends regulation 8(1) of the 2002 Regulations (which concerns special responsibility allowance) such that categories of responsibility described in regulation 8(1) include chairs of licensing committees and vice chairs of licensing committees (at sub-paragraphs (d) and (e) of regulation 8(1) respectively).

Regulation 40(7) substitutes a new regulation 8(2)(b), (c) and (d) for regulation 8(2)(b) of the 2002 Regulations. Where an authority operating executive arrangements or alternative arrangements has more than one deputy cabinet leader or more than one vice chair of a board, the additional sum of ten per cent payable by way of special responsibility allowance for such responsibility may be apportioned amongst those deputy leaders or vice chairs.

Part 7 of these Regulations also amends the 2002 Regulations such that in respect of basic allowance, special responsibility allowance, attendance allowance, care allowance and financial loss allowance, a scheme made by an authority (or, as appropriate, a National Park authority) must specify that where a member is suspended or partially suspended from that member’s responsibilities or duties as member, the part of each allowance payable to that member in respect of the responsibilities or duties from which the member is suspended must be withheld by the authority or National Park authority (and regulations 40(5), 40(8), 40(10), 40(12) and 40(13) refer respectively).

Regulation 40(15) inserts a new regulation 12A into the 2002 Regulations under which a scheme may provide that where a payment of allowances has been made to a member for a period during which that member is (amongst others) suspended, the authority or National Park authority, as appropriate, may require that such part of the allowance that relates to the period of suspension be repaid to the authority.

Regulation 40(16) inserts a new regulation 12B into the 2002 Regulations which provides for the extent to which a National Park authority must have regard to matters prescribed in a report of the Panel before making or amending a scheme or specifying an index by reference to which allowances may be adjusted.

Regulation 40(17) substitutes a new regulation 15(2) into the 2002 Regulations which provides for the extent to which a National Park authority must have regard to matters prescribed in a report of the Panel before determining rates of travel and subsistence allowances.

Regulation 40(18) inserts (amongst others) new regulation 15(4) and (5) into the 2002 Regulations. New regulation 15(4) and (5) requires authorities to specify a time limit within which a claim for travel or subsistence allowances must be made.

Regulation 40(19) inserts a new regulation 15A into the 2002 Regulations which provides for the recovery of allowances payable by an authority under Part IV of the 2002 Regulations.

Regulation 40(20) inserts a new regulation 15B into the 2002 Regulations which entitles a National Park authority to pay a co-optees' allowance to their co-opted members. Provision is also made for calculating the maximum amount of co-optees' allowance payable by a National Park authority and an annual adjustment of co-optees' allowance.

The 2002 Regulations are also amended such that (amongst others) in respect of travel and subsistence allowance and co-optees' allowance, where a member or co-opted member of a National Park authority is suspended or partially suspended from that member’s or co-opted member’s responsibilities or duties as member or co-opted member, the part of each allowance payable to that member or co-opted member in respect of the period of suspension must be withheld by the authority (and regulations 40(18) and (20) refer respectively).

Regulation 40(21) inserts a new Part IVA into the 2002 Regulations which makes provision for a National Park authority to reimburse to a member any monies expended by that member in respect of expenses incurred in arranging for the care of children or dependants.

Regulation 40(23) amends regulation 19 of the 2002 Regulations and provides for the publication by authorities of the total sum paid in a year to each member in respect of travel and subsistence allowances and for the publication by National Park authorities of the total sum paid in a year to each member in respect of reimbursement of care expenses.

Part 8 of these Regulations makes amendments to the Local Authorities (Allowances for Members of Fire Authorities) (Wales) Regulations 2004 (“the 2004 Regulations”). Regulation 41(5), (6) and (12) corrects typographical errors in the Welsh text of regulations 8, 10, 16 and 19 of the 2004 Regulations. Regulation 41(9) inserts a new regulation 15A into the 2004 Regulations which makes provision for the payment by a fire and rescue authority of a co-optees' allowance to its co-opted members. That new regulation 15A provides (amongst others) that where a co-opted member of a fire and rescue authority is suspended or partially suspended from that co-opted member’s responsibilities or duties as co-opted member, the part of co-optees' allowance payable to that co-opted member in respect of the period of suspension must be withheld by the fire and rescue authority.

Regulation 41(11) amends regulation 17 of the 2004 Regulations such that a fire authority must specify a time limit within which a claim for travel and subsistence allowances must be made. Regulation 41(13) substitutes a new regulation 19(3) into the 2004 Regulations such that a fire authority must make arrangements for the publication of sums paid in respect of care allowance and travel and subsistence allowances. Regulation 41(14) inserts a new 19(4) into the 2004 Regulations such that after the end of each year a fire authority must make arrangements for the publication of the total sum paid to each co-opted member in respect of co-optees' allowance.

Part 9 of these Regulations makes provision for revocations, savings and modifications.