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1 Declarations of interest
1 Declarations of interest
Section 5 of the Code of Conduct (2021) sets out the three‑stage process you should follow to identify and manage declarable interests. Section 1 of this course will take you through:
- Stage 1 – Connection – what is and is not a connection in terms of the Code
- Stage 2 – Interest – the objective test
- Stage 3 – Participation – what you must do if you have a declarable interest.
Next, move onto 1.1 Connection.
1.1 Connection
Stage 1 considers whether you have a connection to the matter being considered by the Council. A connection is any link between the matter and you, or someone or a body you are associated with, such as a family, social or professional relationship. It also includes any interest you have registered under Section 4 of the Code.
Paragraph 5.4 of the Code sets out matters that are not considered a connection for the purposes of the Code. This includes simply having prior knowledge or experience of a matter.
Matters not considered a connection also include being:
a.A Council Tax or rate payer, or a council house tenant
b.A councillor when matters relating to elected members’ remuneration, allowances, expenses, support services or pensions are being considered
c.A member of an outside body to which you have been appointed or nominated by the Council (for example, a regional transport partnership, an IJB, a city region deal, an arm’s‑length external organisation or a voluntary organisation)
You may take part in discussions and votes affecting an outside body to which you have been appointed or nominated by the Council without declaring your membership, unless:
- the matter is quasi‑judicial or regulatory and the body has a direct interest (for example, as an applicant or objector), or
- you have an additional personal interest.
A personal conflict could arise, for example, if your partner works for the outside body and the Council is considering funding that could affect their employment.
A subject that applies to a large proportion of the public would not generally be considered to give rise to a connection for the purposes of the Code. Examples include being a taxpayer, or being in receipt of a state pension or universal credit.
1.2 Interest
If you have a connection to a matter being discussed, you must then decide, under Stage 2, whether it amounts to an interest that requires to be declared. The Code requires you to apply the objective test, which is whether a member of the public with knowledge of the relevant facts would reasonably regard your connection to a particular matter as being so significant that it would be considered as being likely to influence your discussion or decision-making. If yes, the connection is an interest that requires to be declared.
Importantly, the test is not based on your own knowledge of your motivations or whether you believe you would be influenced; it is based on what an informed member of the public would reasonably think.
The Code makes clear that interests must be declared in both formal and informal interactions with officers and other councillors, not only in formal Council or committee meetings.
1.3 Participation
If you have a declarable interest then, under Stage 3, you cannot participate in any discussion or voting on the matter. You should declare the interest as early as possible and must leave the room; it is not sufficient to move to the back of the room or a public gallery. If the meeting is online, you should move to a separate breakout room or leave and rejoin after the discussion has concluded. This is both to ensure that you do not influence other members and to avoid any perception that you could be doing so.
Specific exceptions
Membership of an outside body
As explained in Section 1.1 of this course, being appointed or nominated by the Council to represent it on an outside body does not usually constitute a connection under Stage 1 that might lead to a declarable interest under Stage 2. The exceptions are:
if the matter is quasi-judicial or regulatory in nature and the outside body is the applicant or an objector
or
if you have an additional personal conflict.
Participating in budget decisions
You should consider whether you have a connection to the Council’s budget arising from a personal circumstance. If so, you must apply the objective test and consider whether the connection is so significant, relative to the overall budget, that it would reasonably be regarded as likely to influence your decision-making.
A declarable interest may arise, for example, if a budget decision could directly affect your partner’s employment or a business you own.
For the overall budget, being in receipt of a benefit available to the wider public (such as a carer’s allowance) would not amount to a declarable interest.
If the budget is divided into specific parts or lines, you may need to withdraw only for the relevant section. If no declarable interest exists but members of the public might reasonably have concerns, a transparency statement may be appropriate.
1.4 How to declare an interest
If you need to declare an interest, be transparent, clear and brief. For example, you can state:
‘I declare an interest in item (x) for the following reason(s) …’
You do not need to give detailed reasoning; only enough to explain why your connection to the matter to be considered is sufficiently significant as to amount to a declarable interest. You could state:
‘I am a friend of the managing director of (x), who are the applicants in respect of …’
or
‘My partner is employed by (x), who stand to benefit from the financial assistance recommended in the report …’
You should be careful to protect the confidentiality of others’ business or financial interests.
For transparency and accurate minute‑taking, you should clearly state that you will leave the room:
‘As I have declared an interest, I will now withdraw from the meeting/leave the online meeting during any discussion and voting on item (x).’
Transparency statements
If you have a connection to a matter to be considered but, having applied the objective test, you do not consider it amounts to an interest, you may make a transparency statement to explain your reasoning. For example:
‘I have a connection to this item by reason of … However, having applied the objective test, I do not consider I have an interest to declare because …’
You can ask committee staff to record your transparency statement in the minutes.
The Standards Commission has produced an Advice Note for Councillors on How to Identify and Declare Interests.
Activity 1 Identifying declarable interests
a.
Yes – you must always declare an interest if anyone close to you has ever been supported by an organisation that receives funding from the Council.
b.
Only if the objective test is met, i.e. whether a member of the public with knowledge of the relevant facts would reasonably regard your connection as sufficiently significant as to be likely to influence your discussion and decision-making on the agenda item being considered by the Committee.
c.
No – it is irrelevant because the financial support received is so limited compared to the overall contribution made or to be made by the Council.
d.
No – because you feel confident that, regardless of the support given to your family member, you can make the decision objectively and on its merits.
The correct answer is b.
Discussion
You would be considered to have a connection under Stage 1. Whether this connection amounts to a declarable interest depends on the specific facts and circumstances of the case, and on whether the objective test is met.
You should declare an interest if the objective test is met:
Whether a member of the public with knowledge of the relevant facts, would reasonably regard your connection [the fact that one of your family members has received support from one of the voluntary organisations] as being so significant that it is likely to influence your discussion or decision‑making.
In this case, relevant facts could include:
- what the Committee was being asked to consider – for example, was it to consider and determine applications for funding or was it just being asked to note that funding had been awarded
- when the financial support was provided – for example, was it a one-off contribution provided several years ago or is it an ongoing arrangement
- the nature of your relationship with the family member – for example, is it a close relative that you see often, or even live with, or is it a distant relative with whom you have little contact.
If the objective test is met, you must declare an interest and leave the room while the agenda item is being considered. Failing to do so could create a perception of unfairness or bias, even if you believe you can assess the matter objectively. It could also lead to a challenge against any decision made by the Council in respect of awarding funding – potentially costly even if unsuccessful – and cause reputational damage to both you and the Council.
If the objective test is not met but you are concerned that members of the public may be aware of your connection to one of the voluntary organisations in question (even if they do not know all the relevant facts), you may wish to make a transparency statement explaining why this connection does not amount to a declarable interest.
a.
Yes, absolutely.
b.
No – being friends with a family member of the applicant is too remote.
c.
Only if the objective test is met – i.e. if a member of the public with knowledge of the relevant facts would reasonably regard his connection to the licensing matter as being so significant that it is likely to influence his discussion or decision-making.
d.
No – the councillor does not stand to gain anything personally from the decision.
The correct answer is c.
Discussion
Whether the councillor should have taken part depends entirely on the specific facts and circumstances. What you have heard may be inaccurate or simply an unfounded rumour.
The councillor would only need to declare an interest and refrain from taking part if the objective test is met: whether a member of the public with knowledge of the relevant facts would reasonably regard the connection as so significant that it is likely to influence his discussion or decision-making.
Relevant facts include how close the relationship is (for example, whether the family member is a longstanding friend or a casual acquaintance) and how close the family member’s relationship is to the applicant (for example, whether they are siblings who speak regularly or distant relatives with no recent contact).
It is important to recognise that even if there is no possibility of personal gain, a failure to declare an interest could still breach the Code if the objective test is met. The key question is whether a member of the public, knowing the nature and extent of the relationships involved, would reasonably view the interest as sufficiently significant to prejudice the councillor’s consideration of, and decision-making on, the specific matter.
Now move onto 2 Registration of interests.