Identifying and Managing Conflicts of Interest

14th October 2024

Politicians and other individuals in public life, including councillors and board members of public bodies, are expected to identify and declare any personal interests they may have that could conflict with their public role. This is to ensure members of the public have confidence that those who are responsible for making decisions on matters of public concern and how public money is spent are doing so in the public interest, and not that of themselves or their friends, family or associates.

While those in public life are required to maintain a register of certain interests that might influence their judgement, discussions, decision making and actions, they are also required, at meetings, to identify and declare any interests that could conflict with their role, or could be perceived as conflicting with their role. These could be interests over and above ones they have registered.

So how do councillors and board members of public bodies identify which interests they are required to declare?

The Councillors’ Code of Conduct and Model Code for Members of Devolved Public Bodies in Scotland outline a three-stage approach for identifying and managing potential conflicts of interest. The first two stages are intended to help councillors and members distinguish between situations when they simply have a connection to a matter, and ones where that connection could objectively be regarded as having the potential to influence them in their role as a councillor or board member of their public body (where it would be a declarable interest).

Stage 1: Connection – councillors and members are required to consider whether there is any link between a matter (or agenda item) to be considered by their council or public body and them or any person or body with whom they are associated. This would include family relationships and social contacts. It would also include anything they have included on their register of interests.

Matters that are not considered a connection for the purpose of the Code include simply having previous knowledge or experience of a matter. For example, a board member’s knowledge and experience as an IT specialist would not in itself be considered a connection, if an item to be considered by the board was the introduction of a new organisation wide IT system.

Stage 2: Interest - If a councillor or member has a connection to a matter being discussed, they are then required to apply the Objective Test, which is: whether a member of the public, with knowledge of the relevant facts (i.e. the matter to be considered and the nature of the connection), would reasonably regard the connection as being sufficiently significant as to be likely to influence the councillor or member’s discussion or decision-making.

If the Objective Test is met, then it is an interest that requires to be declared.

The Codes of Conduct make it clear that the requirement to disclose or declare interests applies both in formal and informal dealings with council or public body employees and other councillors or members, not just in formal council, board or committee meetings.

Stage 3: Participation. If a councillor or member has a declarable interest, they cannot participate in the discussion or any voting on the matter, and must leave the room (or if it is online, the online meeting). This is to ensure they do not influence other councillors or members and / or to avoid any perception they could be doing so.

If a councillor or member decides that they should declare an interest, they should do so at the earliest opportunity. They should ask for the declaration of interest to be recorded in the minutes or any record of the meeting.

The Codes note that, in some circumstances, councillors and members may consider it is appropriate, for transparency reasons, to state publicly that while they have a connection to a matter, they do not consider it amounts to an interest (and to explain why). This can be helpful if they are concerned that members of the public may not be aware of the relevant facts.

Lorna Johnston, the Standards Commission’s Executive Director, notes “councillors and members should seek advice, in advance of any meeting, if they are unsure whether any connection they have to a matter would amount to a declarable interest.”

The Standards Commission has published Guidance on the Councillors’ and Model Codes of Conduct. This can be found here: https://www.standardscommissionscotland.org.uk/guidance/guidance-notes