Policies & Procedures

Scotton Parish Council
Chairperson Allowance Policy

1. Background
The Chairperson is elected by members of the Council at the commencement of the Annual Meeting of the Parish Council in accordance with the Local Government Act 1972 section 15 (1) (2).

The Chairperson is an elected figure head of the Council and the civic representative of the village. Section 15 (5) and 34 (5) of the Local Government Act 1972 provides for town and Parish Councils to pay the chairperson ‘for the purposes of enabling them to meet the expenses of their office such allowance as the Council think reasonable’.

Each May, the Parish Council elects the Chairperson for the coming year. This position entails increased responsibility, and their duties may be considered in two parts: first, the duties outside of the Council chamber but arising from the ordinary business of the Council, and second, activities expected of them by the public. The Chairperson represents the Council at various events throughout the Parish. As a result, there may be expenses incurred and to defray those extra costs a budget may be allocated when setting the yearly budget.

2. General Principles
The Chairperson, their family, friends, or close associates (or any organisations with which they have a connection) may NOT benefit from use of the Chairperson’s allowance.

The annual allowance is determined through the annual budget setting and may vary each year but will not exceed £100.00.

3. Permitted Expenditure
The Local Government Act 1972 does not stipulate the type or category of expenditure for which the Chairperson may use the Chairperson’s allowance. However, it is commonly described as recompense for the expenses of maintaining dignity of office.

General items include but if in doubt the chairperson should seek the advice of the Parish Clerk:

• Mileage to and from events outside of the village
• Tickets for events
• Hospitality
• Providing support to Chairperson/ Civic events (e.g., raffle prizes)
• Donations at events
• Donations to charities
• Reasonable clothing allowance for Civic events

Provisions made for the Chairperson’s allowance in the Local Government Act 1972 do not extend to the Vice-Chair, who is treated the same in law as all other Parish Councillors. However, if the Vice-Chair incurred costs associated with officially representing the Chairperson in their absence, the Vice-Chair can be reimbursed any legitimate out of pocket expenses incurred whilst deputising for the Chairperson, out of the allowance.
 

4. Payment of Allowance
Payments made for items such as tickets, purchase of prizes, or purchase of food and drinks for hospitality etc will be made directly to the Chairperson in lieu of receipts. Where it is not possible to provide receipts, signed written details must be provided by the Chairperson to substantiate the expenditure. All claims must be declared promptly to the Clerk.

If the Council or chairperson are unsure if the allowance may be used for a particular expense, advice will be sought from the Parish Clerk. If an expense does not meet the conditions of payment the chairperson will not be reimbursed.

If receipts or reasons for expenses are not submitted by the end of the budget year, reimbursement will be made in the next budget year by agreement of the Council.

All claims will be noted at the first available meeting of the council to maintain full transparency.

The full allowance does not have to be spent in the budget year.
Remaining funds may be rolled over to the next budget year, to reduce the amount awarded in the next budget or vired to other budget costs.

The auditor will have full access to these records and may at any time, recommend improvements or amendments to the scheme.

5. Taxation
As long as the Chairperson’s allowance is a reasonable reimbursement of the expenses of an unpaid office, and contains no element of remuneration for the holder, HMRC treat it as not chargeable for tax, but they ask councils how much is paid; and, where it is thought that there might be an element of remuneration, they might ask chairperson’s for details of the uses to which the allowances are put.