Please read on for the legal update from NALC:
We recently received requests about the implications of the Subsidy Control Act 2022. In 2023, we provided general guidance that we’d like to share again. The Subsidy Control Act 2022 came into force on 4 January 2023 and creates a regime covering any financial assistance by a public authority to an outside commercial enterprise. The controls apply to any situation where a local council has provided more than “minimal financial assistance”. Minimal financial assistance is defined as not exceeding £315,000 in total over the current financial year and the two immediately preceding financial years. A subsidy is where a public authority provides support to an enterprise that gives it an economic advantage. The Subsidy Control Act 2022 does not apply to local authorities giving financial support to other local authorities.
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We were asked about a town council custom of holding two annual meetings in May. The first meeting focused on electing the chair and the associated civic ceremony, before being deferred to a second meeting a few days later for the council to conduct its formal business. In short, our view is that this was not permitted. Section 15 (2) of the Local Government Act 1972 says that the election of a chair shall be the first business transacted at the annual meeting of the parish council. The law requires an annual meeting, not two separate meetings. Our view is also that the practice of deferring the business in this manner did not comply with Section 15 (2) as the second meeting appeared to be held without the appropriate public notification. We also emphasise that there is no requirement for a separate civic and ceremonial meeting to be held or for a separate ceremonial role for a mayor, as there is with the mayor-making or the mayor role at the principal authority level.
We were asked if parish or town councils could set criteria for eligibility to stand as chair. Our answer was no. The election of the chair of a parish council is provided for in Section 15 (1) of the Local Government Act 1972, which says that the chair of a parish council shall be elected annually by the council from among the councillors. The fundamental point is that a council’s standing orders cannot remove statutory rights. Legislation takes precedence over standing orders or custom. Any councillor can be elected chair under Section 15. Councils should not have policies or procedures that prevent a councillor from standing. The law does not provide a procedure for how a chair is selected. We understand that some councils make provision for certain councillors’ standing, for example, the succession of the vice-chair or long-standing councillors. Our advice in such cases has been that councils must still consider councillors wishing to put themselves forward other than in accordance with council policies or standing orders
The Ministry of Housing, Communities and Local Government recently wrote to us to confirm that from 29 June 2026, local authorities must not publish an elected or co-opted member’s home address in local authority registers of interest. A new Section 32A of the Localism Act 2011 (the 2011 Act) makes clear that a member’s home address must not be disclosed on the authority’s public register of interest unless the member has requested otherwise. The requirement not to publish a member’s home address extends to parish and town councils that publish registers of interest on their own website in line with Section 29 (7) of the 2011 Act. To aid transparency, public registers of interest will still state that a member has an interest, the address of which is withheld. The exact address details are still declared to the monitoring officer, remain available internally to authorities and will continue to prevent conflicts of interest.
The English Devolution and Community Empowerment Act 2026 (the 2026 Act) received Royal Assent at the end of last month. We understand that the 2026 Act makes changes to the Localism Act 2011 with respect to assets of community value. The changes are not in force. We will update any guidance as required when the law comes into effect, possibly next year.
We are often asked whether we can recommend local solicitors’ firms to parish and town councils seeking legal advice or representation. However, we are unable to recommend individual solicitors or firms. Instead, we direct councils to the Law Society’s Find a Solicitor service.
We have updated our advice note on local council documents and records. We have also published four HR policy templates, which include updated policy templates on paternity leave and pay, sickness absence and whistleblowing, and a new policy template on bereavement. These updates are because of provisions of the Employment Rights Act 2025 coming into force. Additionally, our legal manager and senior solicitor, Jane Moore, delivered a legal update for the Cleveland Local Councils Association on 26 March 2026.
If you have any queries relating to the legal update, please do reach out to us.