PART II
2.1 This report does not deal with all types of local authority nor all types of inquiry they may hold. This Part sets out how we have defined the scope of our report. We consider first the definition of local authority second the definition of ad hoc inquiry and third the powers of local authorities to establish ad hoc inquiries.LOCAL AUTHORITIES AD HOC INQUIRIES AND POWERS OF INQUIRY
1 The definition and organisation of local authorities
2 General2.2 Local Government Act 1972 ("the 1972 Act") section 270 defines a local authority as:
a county council … a district council a London borough council or a parish council but in relation to Wales … a county council county borough council or community council...[1]
3 Principal local authorities2.3 In this project we are only concerned with "principal" local authorities: those responsible for the vast majority of services that are provided by local government. Principal local authorities include:
(1) county councils district councils unitary councils and London boroughs in England; and
2.4 The functions of principal local authorities include: education housing planning social services transport environmental health waste collection leisure and sports services.[3] It is failures in these services which are most likely to be the subject of an ad hoc inquiry.(2) county and county borough councils in Wales.[2]
2.5 We do not address inquiries established by either parish or community councils. The functions that they exercise are not conspicuously amenable to the type of inquiry we have in mind.[4] Nor are we concerned with Regional Development Agencies.[5] They differ from the principal local authorities listed in paragraph 2.3 above as their powers and functions relate to economic development rather than the provision of specific "front line" services. For similar reasons we are not concerned with the Greater London Authority.
4 The organisation of local authorities2.6 Until the Local Government Act 2000 ("LGA 2000") was enacted decision-taking by local authorities was largely done by the council working with a series of council committees. The LGA 2000 introduced new models of executive arrangements for local authorities.[6] A variety of executive arrangements therefore now exists.
2.7 The LGA 2000 provided for three new models:
(1) authorities with an elected mayor with two or more councillors of the authority appointed by the elected mayor to be the executive of the authority;[7]
(2) a councillor of the authority ("executive leader") elected as leader of the executive by the authority and two or more councillors of the authority appointed to the executive either by the executive leader or by the authority (referred to as the "leader-cabinet" model);[8]
2.8 Any of these models must take the form prescribed in regulations issued by the Secretary of State.[10](3) an elected mayor and an officer of the authority ("the council manager") appointed by the executive of the authority.[9]
2.9 The functions which are the responsibility of the executive are defined in LGA 2000 section 13.[11] Where a function falls to the executive the LGA 2000 prescribes how it is to be discharged within each of the new possible structures. Executive arrangements must include the appointment of Overview and Scrutiny Committees.[12]
5 The definition of ad hoc[13] inquiry2.10 Local authorities have a number of specific statutory powers or duties to establish inquiries. The focus of this project is on ad hoc inquiries that is those which are not specifically provided for in legislation.
2.11 We have two reasons for focusing on ad hoc inquiries. First not being the subject of specific statutory provisions they are essentially unregulated in other words subject to no formal procedural rules. It is this lack of regulation that in our judgment leads to the kinds of difficulty identified by Waterhouse.
2.12 Second the issues in relation to which ad hoc inquiries are used - in particular those arising out of performance failure - are those which raise the problems considered by Waterhouse especially relating to the liabilities of local authorities.
2.13 There is no single definition of 'ad hoc inquiry'. We have arrived at a definition by a process of eliminating those classes of inquiry with which we are not concerned.
6 Exclusions2.14 In CP 163 we developed a typology of inquiries in which local authorities may be involved.[14] We excluded two types of inquiry - inquiries established by Government Minister [15] and an inquiry set up under the Tribunals of Inquiry (Evidence) Act 1921 - on the basis that while local authorities may be involved in such inquiries they are not inquiries set up by the local authority. For similar reasons we excluded investigations into allegations of maladministration conducted by the Local Commissioner for Administration (Ombudsman) and investigations conducted by the Standards Board for England.[16]
2.15 We also excluded "routine statutory inquiries". These were inquiries that have to be established as a matter of routine in relation to certain classes of decision for example planning or education or licensing. These were excluded for two reasons: first the nature of the inquiry is not into past service failure but is designed to gather evidence in the light of which decisions about the future are to be taken; second the inquiry process is subject to specific procedural regulation.
7 Inclusions2.16 We conclude that the types of inquiry that this report should cover should be ad hoc inquiries established by a principal local authority which are not already governed by other statutory powers and which involve complaints against the authority or a failure in its services.[17] In addition given the fact that responsibility for the delivery of many services is now jointly divided between local authorities and other public agencies (for example the National Health Service) we include in the scope of ad hoc inquiries those inquiries jointly set up by a local authority and another public body.
2.17 This definition of ad hoc inquiry therefore extends to:
(1) inquiries by Overview and Scrutiny Committees;
(2) independent inquiries;
(3) internal inquiries; and
(4) ad hoc inter-agency inquiries.
8 Inquiries by Overview and Scrutiny Committees2.18 One consequence of the LGA 2000 has been the creation of Overview and Scrutiny Committees (OSCs). OSCs make reports or recommendations to the authority or the executive on matters which affect the authority's area or the inhabitants of that area.[18] OSCs are comprised of members who are not part of the executive.[19] OSCs are designed to allow members without direct executive power to scrutinise decisions taken by the executive. Lord Harris of Haringey speaking in the House of Lords described them thus:
In the same way as the Select Committee of your Lordships' House and of another place can raise issues can challenge orthodoxy can perhaps criticise the majority party of government and can certainly recommend improvement so too can the overview and scrutiny committees clarify the position and explore the implications of proposals within a local authority.[20]2.19 Their role is wide and includes: review and development of policy; making policy and budget proposals to the council; conducting best value reviews; reviewing executive decisions; call-in decisions prior to implementation;[21] performance monitoring; and review and scrutiny of other organisations.[22]
2.20 Research does not yet give a clear picture of the actual work of OSCs. In 2002 one report found that most OSCs were investigating the provision of services by the local authority;[23] later research found that most OSCs tended to focus on "policy development and review in preference to holding the executive to account".[24]
2.21 There is no time restriction on what an OSC may look into: it may review a matter where something has allegedly gone wrong; it may review an executive decision which has been taken but not yet been put into effect; or it may take a prospective view of a matter on which an executive decision might be anticipated or on any matter falling within the functions of the local authority. While the primary function might have been conceived as holding the executive to account in public there is nothing to prevent the scrutiny being more wide-ranging.
2.22 OSCs also now have the power to review health functions in their area.[25] Regulations have been made to provide for local authorities to band together to make joint reviews.[26] As with non-health powers of OSCs there is nothing in the primary legislation to prevent the OSC deciding to conduct an inquiry into a complaint about a serious failure in the provision of services in its local area.
2.23 OSCs have power to require members and officers to attend the committee to answer questions.[27] It is the duty of members or officers to comply with these requirements.[28] However members and officers can refuse to answer questions that they would be entitled to refuse to answer in court.[29] The committee cannot compel other witnesses to attend; they may merely invite them to attend.[30]
2.24 Where an OSC is reviewing health functions it may be appropriate for it to hear from employees of a part of the NHS. Regulations make provision which amongst other things require any officer of a local NHS body to attend before the committee to answer questions. This puts them in the same position as officers of the local authority.[31]
2.25 Although OSCs are standing bodies of statutory creation each of its reviews is one-off. OSCs are largely free to determine their own procedures. We therefore conclude that they should fall within the scope of ad hoc inquiries.
9 Independent inquiries2.26 These are inquiries established by the local authority but conducted by an independent chairperson who may work alone or with a team of investigators or assessors to assist him or her. The inquiry may sit in private or in public although the sensitive nature of these inquiries means most are conducted in private. [32] The chair of an inquiry subject to his or her terms of reference directs the inquiry and its subsequent report.
2.27 The inquiry will still be independent if members or officers of the authority are co-opted to form part of the investigative panel. For example the Devon Foot and Mouth Inquiry panel included councillors serving on Devon County Council.[33] However if the chair is a councillor or an officer of the authority the fact that there are independent persons participating in the inquiry will not make it an independent inquiry.
10 Internal inquiries2.28 This is another type of ad hoc inquiry set up by the local authority. In contrast to an independent inquiry it is chaired by a person connected to the authority such as the Chief Executive Officer or a Head of Department. Equally it may be undertaken on behalf of an officer of the authority by officers from within the commissioning department or from another department of the authority. This kind of inquiry is not usually open to the public.
2.29 The type of inquiry to be established whether internal or external may depend on a number of factors including: speed costs the availability of witnesses and documents and public and media pressure.[34] The fact that such inquiries are ad hoc means the authority can respond flexibly to tailor the inquiry to fit its needs best.
2.30 Similarly the decision whether to hold the inquiry in public may be affected by pending criminal trials the subject-matter of the inquiry the need for transparency the likelihood that information will be disclosed to the inquiry about confidential matters or issues of cost and speed.
11 Ad hoc inter-agency inquiries2.31 These can be undertaken by one or more statutory bodies. They may involve local authorities health authorities the police or other public bodies. They may be subject to standing procedures or other procedural rules or ad hoc.
2.32 Ad hoc inquiries will be established in response to a particular situation. Where child abuse deaths or other child protection issues are likely to attract major public concern a procedure colloquially known as a Part 8 review [35] is invoked. Guidelines laid down by the Department of Health Home Office and Department for Education and Employment[36] require each agency which was involved in the issue to review its own conduct. These reviews are then compiled by the Area Child Protection Committee (ACPC) into one report. The guidelines are currently non-statutory.[37]
12 Powers to establish local authority ad hoc inquiries2.33 It is a general principle of local government law that a council cannot act unless Parliament has conferred power upon it to act.[38] If a local authority wishes to establish an ad hoc inquiry it must show it has the necessary statutory power. At present there is no power which specifically enables local authorities to set up an ad hoc inquiry. The power to do this has to be inferred from other broader powers.
2.34 Two powers are of particular relevance. As neither of these makes specific provision for establishing inquiries it follows that neither of them make any provision for how an inquiry is to be run. Inquiries established under these provisions fall within the definition of ad hoc inquiry.
13 Local Government Act 1972 (LGA 1972)2.35 Section 111(1) of the LGA 1972 states:
2.36 In the interpretation and application of section 111(1) the following key points emerge.(1) Without prejudice to any powers exercisable apart from this section but subject to the provisions of this Act and any other enactment passed before or after this Act a local authority shall have power to do any thing (whether or not involving the expenditure borrowing or lending of money or the acquisition or disposal of any property or rights) which is calculated to facilitate or is conducive or incidental to the discharge of any of their functions. …
(1) The powers conferred by it must be ancillary to a "function" of the local authority conferred by some other provision. The function exercised must be clearly intra vires the local authority. It is not sufficient that it was reasonable for the local authority to have done what it did.[39]
(2) To rely on section 111(1) it is not necessary for the local authority to link the claimed ancillary power to another expressly conferred power. It is sufficient to link it to a function of the local authority.[40]
(3) It is unclear whether the function must be expressly conferred by statute or can be impliedly conferred. The broad view of Lord Justice Woolf (as he then was) was that section 111 can extend to functions which the authority is impliedly authorised to perform.[41] Lord Justice Parker[42] took a narrower approach suggesting that the term functions is "plainly referring to the functions set out in Part IX of the Act". However this is inconsistent with Woolf LJ's view and the fact that many functions of local authorities are conferred by other Acts.
(4) The powers conferred by section 111 are subject to any restriction or requirement imposed by the LGA 1972 or any other enactment.
2.37 Thus the inquiry needs to be ancillary to the statutory functions of the authority. Where the inquiry relates to a function such as housing social services or education the section provides adequate authority. If an inquiry is not ancillary to a function the council might lack the necessary vires. For example an authority not being a health authority which conducted an inquiry into health provision in its area might be acting beyond its powers. (Such problems may now be avoided given that OSCs now have powers to investigate health functions.)(5) It is unclear whether the common law[43] doctrine of incidental powers has been superseded by section 111(1) LGA 1972.[44]
14 Local Government Act 2000 (LGA 2000)[45]2.38 Section 2(1) of the LGA 2000 Act introduced a new power which enables principal local authorities to do anything[46] which they consider likely to promote or improve the economic social and environmental well-being of their areas.[47] This came into force on 18 October 2000[48] for English local authorities and 9 April 2001 for Welsh local authorities.[49]
2.39 Where the establishment of an ad hoc inquiry will improve or promote these objectives this power provides the necessary legal authority. Arguably the wide drafting of section 2(1) means that the authority can use it both to establish and fund the inquiry [50] in furtherance of the well-being of the community. Even if this interpretation is wrong the authority can continue to invoke section 111 of the LGA 1972 to authorise the necessary expenditure on any inquiry established under section 2(1).
2.40 Any inquiry conducted by an Overview and Scrutiny Committee is conducted pursuant to section 21 of the LGA 2000.
Note 1 The 1972 Act
s 270 as amended by Local Government Act 1985
s 102
Sched 16 para 8
Sched 17 and by the Local Government (Wales) Act 1994
s 1(5). [Back] Note 2 See Draft Bill
cl 18(1). By virtue of s 270(1) of the 1972 Act
as amended by the Local Government Act 1985
s 102
Sched 16
para 8 and the Local Government (Wales) Act 1994
s 1(8)
“‘principal council’ means a council elected for a principal area”
and “‘principal area’ means a non-metropolitan county
a district or a London borough but
in relation to Wales
means a county or county borough”. [Back] Note 3 A complete list of the functions of principal local authorities is reproduced in the loose-leaf work Cross on Local Government Law Appendix A. See also Cross on Principles of Local Government Law (2nd ed 1997) which lists the Allocation of Principal Functions at Appendix A. [Back] Note 4 Parish and Community councils are only subject to one duty – the duty to consider the provision of allotments on the written demand of six parliamentary electors resident in the parish (Small Holdings and Allotments Act 1908
s 23). The powers that they possess relate to baths and wash-houses
cemeteries
community centres
maintenance of the highways
provision of public conveniences
village greens etc. A complete list of the powers and duties of parish and community councils is reproduced in Cross on Principles of Local Government Law (2nd ed 1997) Appendix B. [Back] Note 5 Regional Development Agencies (RDAs) were established by the Regional Development Agencies Act 1998 with the purposes of promoting economic development and investment in the regions. [Back] Note 6 LGA 2000
s 10. The Local Government Act 2000: Guidance to English Local Authorities (March 2001) provides details on the way in which executive arrangements operate in practice. The executive is responsible for implementing the authority’s policies in accordance with the policy framework established by the full council (Guidance Ch 2
para 2.26 – 2.27). Overview and Scrutiny Committees hold the executive to account after they are implemented and assist in the development of future policy options (Guidance Ch 3
paras 3.15 and 3.54). [Back] Note 7 LGA 2000
s 11(2)(a)and (b). [Back] Note 8 Ibid
s 11(3)(a)and (b). [Back] Note 9 Ibid
s 11 (4)(a) and (b). [Back] Note 10 Ibid
s 11(5) and (6). [Back] Note 11 The allocation of functions between the executive and full council is set out in the Local Authorities (Functions and Responsibilities) (England) Regulations 2000 (SI 2000 No 2853). Those functions which are not the responsibility of the executive remain subject to the same legislative framework as they were before the Act was passed so that the authority may delegate them to committees
sub-committees and officers in accordance with the 1972 Act
s 101. Except for the functions expressly mentioned
all other functions remain the responsibility of the executive.
A number of regulations have been passed under s 13 of the LGA 2000 and are described in detail in para 3.999.2297 of the Encyclopaedia of Local Government Law. [Back] Note 13 The dictionary definition of “ad hoc” is “for a particular
usually exclusive purpose.” Concise Oxford Dictionary
1990 [Back] Note 14 CP 163
Part II
paras 2.9-2.48. [Back] Note 15 Legislation currently before Parliament will
if passed
allow the Secretary of State to direct a local authority
alone or with other specified bodies
to establish or participate in a “domestic homicide review”: Domestic Violence
Crime and Victims Bill
cl 7(2) (Bill 83
29 March 2004). Such a review would be ad hoc but
because it would be instigated by the Secretary of State and not by the local authority
it is not the type of ad hoc inquiry with which we are concerned. [Back] Note 16 Established under the LGA 2000; allegations of breach of ethical standards in Wales are investigated by the Local Commissioner for Wales. [Back] Note 17 This is a wider definition than that adopted by SOLACE which
in 1978
defined ad hoc inquiries as “inquiries into exceptional circumstances
either involving substantial complaints against the authority or a substantial failure in its services.” SOLACE and RIPA
“Ad hoc Inquiries in Local Government” (1978)
para 1.23. See para 4. 17 below. [Back] Note 18 LGA 2000
s 21(2)(e). [Back] Note 19 A report by ELG gives some sense of how OSCs are comprised
initially:
Overview and scrutiny arrangements show considerable variation between councils in terms of the basic structural arrangements such as the number
name
composition and organisation given to such committees. The committees were largely responsible for setting their own agendas based on advice given by the full council and officers. Two thirds were chaired by a member of the majority party. Party pre-meetings before overview and scrutiny meetings were a common practice in just under 40 per cent of councils but only 9 per cent of councils reported that decision-making in these committees was subject to a party whip. Non-elected co-opted members of overview and scrutiny committees were widespread.
“Report of ELG survey findings for ODPM advisory group” (Nov. 2002)
p 5. Evaluating Local Governance: New Constitutions and Ethics (ELG) is the name of a research project which is conducting a five year evaluation of the new council constitutions and ethical frameworks for the Office of the Deputy Prime Minister. The project involves a collaboration between the Department of Government
University of Manchester with Birkbeck College
Goldsmiths College and the SURF Centre at Salford University. [Back] Note 20 Hansard (HL) 6 Dec. 1999
vol. 607
col. 1055. [Back] Note 21 Where a planning application is made to a local planning authority the Secretary of State may
under Town and Country Planning Act 1990
s 77
call-in the application for his own determination. Similar arrangements apply to listed building consent applications. [Back] Note 22 Local Government Information Unit
“The Effective Executive” Jan 2003
p 10. [Back] Note 23 “Report of ELG survey findings for ODPM advisory group” (Nov. 2002)
p 6. [Back] Note 24 R Ashworth
“Evaluating the effectiveness of local scrutiny committees” (Economic and Social Research Council
Dec. 2003)
p 17. See too M Sandford and L Maer Old Habits die Hard? Overview and Scrutiny in English Local Authorities (Constitution Unit
2004). [Back] Note 25 LGA 2000
s 21(2)(f) as inserted by Health and Social Care Act 2001
s 7. This power is given to the OSC of any county council
any county borough council
the council of any district comprised in an area for which there is no county council
and any London borough council
i.e.
not all local authorities. These are the authorities that are responsible for social services. “The health service” in this context
means the same as in the National Health Service Act 1977: See s 1(1) of that Act: NHSA 1977
s 128. It also includes social care services provided through arrangements between NHS bodies and local authorities: Health and Social Care Act 2001
s 7(5). Some local authorities are already working in partnership with health bodies: L Cramp (Health Development Agency) “Changing partners: local government and health in the 21st century” (2002). See also Local Authority (Overview and Scrutiny Committees Health Scrutiny Functions) Regulations 2002 SI 2002 No 3048. Regulation 2 requires the OSC to follow guidance issued by the Secretary of State
to invite comment from interested parties
and to take account of relevant information available to it
but the OSC is otherwise free to follow its own procedure. [Back] Note 26 Ibid
s 8(2)(a) and reg. 7 of SI 2002 No 3048. [Back] Note 27 LGA 2000
s 21(13)(a). [Back] Note 28 LGA 2000
s 21(13). [Back] Note 29 LGA 2000
s 21(15). [Back] Note 30 LGA 2000
s 21(13)(b). A recent inquiry which has used this power is the Bedfordshire County Council inquiry into the fire at Yarl’s Wood Detention Centre. Bedfordshire County Council
“Special Report of the Resource Stewardship Select Committee to the County Council on 18 July 2002 on Yarl’s Wood Detention Centre”. [Back] Note 31 Health and Social Care Act 2001
s 7(3)(f). See SI 2002 No 3048
reg. 6. [Back] Note 32 The two pre-Waterhouse inquiries into abuse of children in local authority care in North Wales (the Cartrefle and Jillings inquiries) were of this type. See paras 1.5 – 1.14 above. [Back] Note 33 Devon County Council
“Devon Foot and Mouth Inquiry 2001 Into the outbreak and its effects
their handling now and in the future and the recovery and sustaining of the well-being of Devon’s countryside”
p 14. [Back] Note 34 Beyond broad public and media pressure
families
relatives and local politicians can bring pressure to bear on the local authority: see B Corby
A Doig and V Roberts
“Inquiries into Child Abuse” (1998) 20(4) Journal of Social Welfare and Family Law 377–395. [Back] Note 35 They are known as Part 8 reviews
as the guidelines for such reviews are set out in Part 8 of the document cited in the following footnote. Local Authorities are required to take note of this guidance: Local Authority Social Services Act 1970
s 7. [Back] Note 36 Department of Health
Home Office and the Department for Education and Employment
“Working Together to Safeguard Children” (1999) (“Working Together”). See below
paras 6.29 – 6.35. [Back] Note 37 ACPCs are likely to be put on a statutory footing as Local Safeguarding Children Boards. See Green Paper “Every Child Matters” (Sept. 2003) Cm 5860
paras 5.25 – 5.26. If this happens
such inquiries would no longer fall within our definition of ad hoc inquiry. Below
para 6.35. [Back] Note 38 A-G v Great Eastern Railway Co (1880) 5 App Cas 473 478; Baroness Wenlock v River Dee Co (1885) 10 App Cas 354. See generally I Leigh
Law Politics and Local Democracy (2000) pp 41–46
A Arden
Local Government Constitutional and Administrative Law (1999) paras 2.2.1 – 2.2.22. For recent confirmation of this principle
see Local Authority v Health Authority and another [2003] EWHC 2746 (Fam)
[2004] 1 All ER 480. [Back] Note 39 Allsop v North Tyneside MBC (1992) 90 LGR 462
472 per Watkins LJ relying on Hazell v Hammersmith LBC [1992] 2 AC 1
31 per Lord Templeman. [Back] Note 40 R v DPP ex parte Duckenfield [2000] 1 WLR 55. [Back] Note 41 Hazell v Hammersmith LBC [1990] 2 QB 697
CA. See also R v Eden District Council ex parte Moffat
The Times 24 November 1988 per Nourse LJ and Allsop v North Tyneside MBC (1992) 90 LGR 462
480–481 per Watkins LJ in the Divisional Court. [Back] Note 42 R v DPP ex parte Duckenfield [2000] 1 WLR 55. [Back] Note 43 A-G v Great Eastern Railway Co (1880) 5 App Cas 473 481 per Lord Blackburn “that where there is an Act of Parliament creating a corporation for a particular purpose
and giving it powers for that particular purpose
what it [the Act of Parliament] does not expressly or impliedly authorise is to be taken to be prohibited;[but]that those things which are incident to
and may reasonably and properly be done under the main purpose
though they may not be literally within it
would not be prohibited”. [Back] Note 44 See R v Richmond upon Thames London Borough Council ex parte McCarthy & Stone (Developments) Ltd [1992] 2 AC 48 56 per Slade LJ
but see also J Bennett and S Cirell
Municipal Trading (1992) p 61; Encyclopedia of Local Government Law (2002) para 2–249:
the common law rule is arguably wider … as it permits activities which are “consequential upon” other activities and which may not be reflected in “calculated to facilitate
conducive or incidental to”.
However
it is likely that adopting the test of “ordinary meaning” of the words of the statute and the “purpose” of the statute from Cross on Statutory Interpretation (3rd ed 1995) ch 2 and following Slade LJ McCarthy that the common law rule has been superseded by the statute. Nevertheless
resolution of this point would require a judicial interpretation. [Back] Note 45 Prior to the LGA 2000 the statutory powers to establish and fund an inquiry were found in ss 111(1) and 137 of the 1972 Act. Section 137 was repealed for principal local authorities by the LGA 2000
s 8. [Back] Note 46 Subject to certain restrictions
contained in LGA 2000
s 3. The importance of this power is discussed in Local Government Association Powering up: making the most of the power of well-being (London
LGA
December
2003). [Back] Note 47 LGA 2000
s 2(1). [Back] Note 48 The Local Government Act 2000 (Commencement No 3) Order 2000 SI 2000 No 2836. [Back] Note 49 The Local Government Act 2000 (Commencement) (No 2) (Wales) Order 2001 SI 2001 No 1471 (W 97). [Back] Note 50 The authority has the power to incur expenditure (s 2(4)(a)) and to provide staff
goods
services or accommodation to any person (s 2(4)(f)) in the exercise of its powers under Local Government Act 2000
s 2(1). [Back]