LGA welcomes scrutiny of EU fines to local authorities

Government plans to assess EU fines allocated to local authorities are a positive step for councils, the Local Government Association (LGA) has said.

The policy statement for Part Two of the Localism Act 2011 has outlined that a minister of the crown could require public authorities to pay all or some of a European Court of Justice financial sanction, on the condition that the authority is deemed to have caused or contributed to the infraction.

Part Two of the Localism Act 2011 will serve as the policy statement to which a minister of the crown and any advisory panel must consult when exercising such functions.

Under the Localism Act 2011, EU fines can be allocated away from the Government and towards responsible public authorities. This has aimed to encourage authorities to meet their obligations under EU law and avoid financial sanctions falling on UK taxpayers.

Sir Merrick Cockell, chairman of the LGA, said that this has the potential to significantly reduce the risk of financial sanctions being allocated to the UK and, therefore, to public authorities.

‘Any attempts to pass on an EU fine to councils will now have to withstand both scrutiny from both Parliament and an independent fines advisory panel. This is something which town halls pressed for and is a positive step,’ Cockell said.

‘Fears had existed that councils would be instantly hit in the pocket as a result of failure of duty by contracted-out firms,’ he added. ‘But assurances have now been provided that if councils act reasonably this will be considered a factor by the fines advisory panel.’