Parish and town councils: recent issues

“What are parish and town councils?

Parish and town councils are the tier of local government that is closest to the electorate in the UK. Collectively, they are often referred to as ‘local councils’. County, district and unitary authorities, by contrast, are often referred to in legislation and guidance as ‘principal authorities’. Parish and town councils are represented by the National Association of Local Councils (NALC), and by county-based associations.

Parish councils may resolve to call themselves ‘town’,  or ‘neighbourhood’, ‘community’, or ‘village’ councils. A number of parish councils for areas which have been granted city status by royal charter are known as ‘city councils’ (e.g. Salisbury, Truro, Ripon). This is known as the ‘style’ of a council. It has no effect on the status or legal powers available to the council. The chairman of a town council, or a city council which is a parish council in law, may style him- or herself Mayor.

Elected parish and town councils were first established by the Parish Councils Act 1894. This Act removed all non-ecclesiastical functions from church parish councils and passed them to newly-established local elected bodies, which became known as ‘parish councils’.  The Local Government Act 1972 entirely restructured local government within England and Wales, and it provides the legal foundation for the existence of today’s parish and town councils. Large parts of the 1972 Act have now been superseded with regard to principal authorities, but it still governs much of the workings of parish and town councils.

Where do parish and town councils exist?

In total, there are some 9,000 parish councils in England, some 730 community councils in Wales, and some 1,200 in Scotland. Parish councils cover only some 25% of the population of England: historically they have not existed in urban areas. It is not unusual for elections to parish councils to be uncontested, and for members to be co-opted where the number of candidates is fewer than the number of seats available.

No part of England is obliged to have a parish council. The Local Government Act 1972 requires a parish meeting to take place in all parishes. A parish meeting is a distinct legal entity from a parish council. It must hold two meetings per year, one of which must take place between 1 March and 1 June. A parish with a population of over 300 may choose to constitute a separate parish council – but it is under no obligation to do so. Where a parish council exists, the parish meeting

In practice this obligation may be disregarded, and there are few sanctions available if a parish meeting is not held.

Parish councils mainly cover rural parts of England. There are a number of localities, principally in large urban areas, which have never had parish councils (or ecclesiastical parishes). Inner London (the area of the former London County Council) historically had no parish councils, and parish councils were not permitted in Greater London between 1935 and 2007.

Charter trustees

Charter trustees are established under section 246 of the Local Government Act 1972. They are established in towns and cities which have a Royal Charter but which have lost their status as local government entities in previous local government reorganisations. They are a residuary category, with only sixteen remaining.

Where a new parish or town council is established for an area with charter trustees, the new body takes on their role and the charter trustees are discontinued. The most recent example of this is Kidderminster Town Council in December 2016.

Differences between parish councils and principal authorities

A number of provisions familiar from English local government legislation covering principal authorities do not cover, or apply differently to, parish and town councils:

  • The legislation regarding executive arrangements (mayors / cabinets) and overview and scrutiny in the Localism Act 2011, originally introduced in the Local Government Act 2000, does not apply to parish councils;
  • The requirements for committees to be politically balanced, in the Local Government and Housing Act 1989, do not apply to parish councils;
  • English parish and town councils are not covered by the Local Government Ombudsman;
  • Limited requirements for audit exist for councils with an income and expenditure of under £6.5 million (which applies to all parish and town councils); see the provisions of the Local Audit and Accountability Act 2014. Councils with an income and expenditure of under £25,000 are not subject to routine audit.
  • Parish and town councils have not yet been subject to a requirement to hold a referendum on increases in their precept. The Secretary of State, Eric Pickles, has stated in 2013, 2014 and 2015 that he would consider his decision in the light of substantial percentage rises in precepts in the latter year.”

The precept

Parish councils may raise a ‘precept’ on the council tax bills produced by their local billing authority (unitary authority or district council). This is essentially a demand for a sum to be collected through the council tax system. Council tax-payers cannot refuse to pay it, and the billing authority cannot refuse to levy it. It is the only source of tax revenue available to parish councils.

Historically, parish councils were able to raise a ‘rate’ from the time of their establishment in 1894: this was linked to their then duties under the Poor Laws. Rates were levied on non-domestic and domestic property until 1990, when the rates were replaced by the Community Charge and the National Non-Domestic Rate. Since then, parishes have precepted on domestic property only, via the Community Charge and then the council tax.

Charter trustees also have the right to precept on their principal authorities. Thirteen set a precept in 2015-16. The Middle Temple and Inner Temple have the right to precept upon the City of London.

In 2015-16, data on parish precepts showed that a total of £409 million was collected via the parish precept (including Charter Trustees and Temples). This was 1.7% of total collected council tax. 8,810 parish councils raised a precept. The average precept for 2015-16 on a Band D property was £54.12, a rise of 3.3% compared to 2014-15.11

In 2015-16, the largest amount precepted by a parish council was £2.02 million, and the lowest was £17. The largest amount per Band D household was £318.94 and the smallest 7p. The largest taxbase of a precepting parish was 23,842.4, and the smallest 1.4.12

Initial figures for the 2016-17 financial year show a rise of 6.1% in the precept compared to 2015-16. This equates to just over £445 million nationally, collected by 8,817 councils: an average of £57.40. The higher rise of 6.1% was cited by the Government in its proposal to extend the council tax referendum regime to certain parish councils.

Complaints regarding parish councils

Constituents may wish to complain about the decisions, the procedures, or the conduct of members or staff of their parish council. There are few remedies available in this regard outside of the four-yearly elections to the parish council. The route to complain depends upon the subject of complaint: there is no single organisation which oversees parish councils. The Government has taken the view that parish councils are accountable to their electorate principally through the ballot box. The most recent Parliamentary Question on the issue of complaints was answered as follows:

Parish councils can put in place their own mechanisms for handling complaints, having regard to a model code of practice produced by the National Association of Local Councils. In addition every elector has the right to raise any matter affecting parish business at the annual parish meeting, and a group of electors has the power to call for a poll on any issue which affects the parish.

Also, where electors consider there has been a possible waste or inefficiency or think that their council has spent money unlawfully, they can refer a complaint to their local district auditor.

Though each parish council has a relationship with the district or unitary council in whose area it lies, the district or unitary council has little power of control or direction over the parish council. District or unitary authorities have certain reserve powers over the conduct of elections in parish councils. Concerns over the legality of parish councils’ actions can be referred to the monitoring officer of the district or unitary authority in the area. But in general, it is not possible to have a parish council’s decision reversed at a higher level unless it can be demonstrated that the decision is unlawful: like other public authorities, parish councils are subject to action in the courts and judicial review.

Larger parish councils must appoint an auditor. Allegations of financial irregularities in a parish council can be reported to the auditor, who must then decide whether to investigate them. Parish councils with an income and expenditure under £25,000 are not subject to annual audit, but must still appoint an auditor to investigate any allegations. This category of parish councils is also subject to the requirements of theTransparency Code for Smaller Authorities: see Library briefing paper 06046, Local government transparency in England.

The Localism Act 2011 abolished the Standards Board for England, which investigated allegations of councillor misconduct or failure to declare interests. Under the 2011 Act, local authorities must establish their own standards regime, with at least one ‘independent person’ whom the authority must consult when investigating an allegation of misconduct. Parish councils too must establish a standards regime, but they may opt in to the one operated by their district or unitary authority.”

 

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