Why have a Register of Interests?

6th September 2024

Why have a Register of Interests?

Politicians and other individuals in public life are expected to register and declare their interests. The purpose of a register of interests is to give these individuals a means by which they can publicly record any private interests which may conflict, or may be perceived to conflict, with their public duties.

Equally importantly, the requirement to register and declare interests allows members of the public to have confidence that those who are responsible for making decisions on matters of public concern and how public money is spent (including on what and how public services are delivered, contracts and procurement) are doing so in the public interest, and not that of themselves or their friends, family or associates.

A register of interests provides transparency as it gives the public information about the interests of individuals in public life which might influence their judgement, discussions, decision making and actions, or which might be perceived objectively by a reasonable member of the public as doing so.

The Ethical Standards in Public Life etc. (Scotland) Act 2000 (Register of Interests) Regulations require local authorities and devolved public bodies in Scotland to maintain a public register of interests. These registers record the interests of councillors and members of devolved public bodies. The Regulations require councillors and members to record their interests within one month of their declaration of acceptance or date of appointment. Councillors and members are also required to update any entries on the register within one month of their circumstances changing.

The Councillors’ Code of Conduct and Model Code for Members of Devolved Public Bodies in Scotland outlined the interests that required to be registered and declared. A failure to register interests as required (and to do so within the one-month time limit) so can result in a breach of the relevant Code and a sanction (including suspension and disqualification) being imposed.

So what interests are councillor and members required to register?

• Financial interests: councillors and members are required to register any other paid roles they have and any other sources of remuneration they receive or expect to receive for other work they undertake. This is regardless of how casual or trivial the work may be. Councillors and members are also required to register unremunerated directorships in certain types of company.
• Non-financial interests: councillors and members are required to register non-financial interests such as memberships of clubs, societies, or other organisations like trade unions if the ‘objective test’ is met (*see below).
• Contracts: councillors and members are required to register an interest if they or any company they have a significant interest in, has a business relationship with the  council or public body through a contract, for the provision of goods or services, or to undertake work. They are also required to register the interests of any close family member who has transactions with the council or public body, or is likely to have transactions or do business with it.
• Houses, Land and Buildings: councillors are required to register any interest, such as being an owner or a tenant, in any houses, land and buildings in Scotland. This includes being a council tenant. The reason why councillors are required to register such interests is because they could be making planning and licensing decisions on local properties and businesses. There is, however, no requirement for the full address of the property to be disclosed on the Council’s website or otherwise made publicly available. It is sufficient for the purposes of the publicly available register for a councillor to simply identify the council ward in which the property is located. Members of devolved public bodies are also required to register any interests they have in any houses, land and buildings in Scotland but only if the objective test is met.
• Shares and Securities: councillors are required to register where they own or have an interest in more than 1% of the issued share capital of the company or body; or where the market value of any shares and securities (in any one specific company or body) that they own or have an interest in is greater than £25,000. Members of devolved public bodies are also required to register such interests in shares and securities if the objective test is met.
• Election Expenses: councillors and member are required to register any single donation of more than £50, or any donations from the same source that together amount to more than £50, towards election expenses. It should be noted that this will only apply to a small number of members of devolved public bodies, as most are appointed or nominate to the public body (as opposed to being elected).

*The objective test is whether members of the public with knowledge of the relevant facts might reasonably think the interest could influence the councillor’s or member’s actions, speeches, votes or decision-making as a councillor or member of the public body.

Lorna Johnston, the Standards Commission's Executive Director, notes “the requirement for councillors and members to register certain interests is a fundamental requirement of the ethical standards framework. A failure to ensure a register is kept up to date, as required, removes the opportunity for openness and transparency and denies members of the public the opportunity to consider whether the councillor’s or member’s interests may or may not influence their discussion and decision-making.”