Prior to 2000 a local government officer or councillor in the United Kingdom, who had unlawfully spent public funds, or caused loss to a local authority through misconduct could be surcharged to recover public money. The surcharge was applied, after referral to a court by the
Audit Commission.
In the case of an illegal corporate decision by an elected body, all the councillors could be surcharged. Councillors from
Lambeth London Borough Council
Lambeth London Borough Council is the local authority for the London Borough of Lambeth in Greater London, England. It is a London borough council, and one of the 32 in the United Kingdom capital of London. The council meets at Lambeth Town Hall ...
and
Liverpool City Council
Liverpool City Council is the governing body for the city of Liverpool in Merseyside, England. It consists of 90 councillors, three for each of the city's 30 wards.
The council is currently controlled by the Labour Party and is led by Mayor ...
who were involved in the
rate-capping rebellion
The rate-capping rebellion was a campaign within English local councils in 1985 which aimed to force the Conservative government of Margaret Thatcher to withdraw powers to restrict the spending of councils. The affected councils were almost all r ...
in 1985 were surcharged. Councillors in the 1973
Clay Cross Urban District Council
Clay Cross was an Urban District in Derbyshire, England from 1894 to 1974.F A Youngs Jr., ''Guide to the Local Administrative Units of England, Vol II: Northern England'', London, 1991 It was created under the Local Government Act 1894.
It was ...
Housing Finance Act dispute were surcharged £685 (this is equivalent to £ today) for refusing to increase housing rent.
The
Committee on Standards in Public Life recommended repealing surcharge because it was unfair for local government officers and councillors, and "bore no relation to people's ability to pay or their culpability".
The
Local Government Act 2000
The Local Government Act 2000 (c.22) is an Act of the Parliament of the United Kingdom that reformed local government in England and Wales. Its principal purposes are:
* to give powers to local authorities to promote economic, social and envir ...
amended the
Audit Commission Act 1998
The Audit Commission was a statutory corporation in the United Kingdom.
The commission's primary objective was to appoint auditors to a range of local public bodies in England, set the standards for auditors and oversee their work. The commissi ...
to remove the ability of the Audit Commission or Secretary or State to recover financial losses from individuals. Instead they would be subject to normal sanctions determined by the
Standards Board and
Adjudication Panel. Following the Tribunal Review such sanctions are now dealt with by the General Regulatory Chamber of the
First-tier Tribunal.
See also
*
Disgorgement (law)
Disgorgement is defined by '' Black's Law Dictionary'' as "the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion."
Overview
Disgorgement is a remedy or penalty used in US securities law. For examp ...
References
External links
Audit Commission website
Commission
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