Transparency Code for councils with exp. or income >£200,000

The Government has published a Local Government Transparency Code. This October 2014 version replaces the previous Code published in May 2014

Importantly, the mandatory data publication requirements have been extended and now apply to councils with a gross annual income or expenditure (whichever is higher) exceeding £200,000. Previously the mandatory requirements only applied above the threshold of £6.5 million which effectively meant local councils exceeding the £200,000 threshold were subject only to recommendations under the Code.

The Government has published a Frequently Asked Questions which provides additional help with interpreting the Code.

For local councils with an annual turnover below £25,000, it is also anticipated that a Transparency Code ‘which will act as a substitute for routine external audit’ will be implemented later this year and will be ‘mandatory’. This wording suggests that affected smaller councils will not be able to opt to stay within the external audit regime and out of the Code, as previously envisaged. But this is not clear yet.

Local councils above the £200,000 threshold should read the October 2014 Code and the associated FAQs to prepare themselves for the Code coming into force on 7th November 2014 and for the first deadline for data provision of no later than 31 December 2014.

Councils below the £25,000 threshold need to monitor announcements for the introduction of a Transparency Code for them later this year.

All councils should consider the increasing demand from central government for transparency of financial data and information about decisions and should review the way they manage their records and information. The default assumption should be in favour of providing data and information wherever possible.