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Local Government Act 2002

Governance and management of local authorities and community boards - Local authorities - Governance and management

39: Governance principles

You could also call this:

"Rules for local councils to work fairly and make good decisions"

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When you are part of a local authority, you must follow some important principles. You should make sure everyone knows what your role is and how you are expected to behave. You should also have structures and processes that are effective, open, and transparent.

You should separate the people who make decisions about rules from those who make other decisions. You should be a good employer, which means treating your staff fairly and with respect, as explained in clause 36 of Schedule 7. You should have a good relationship between the elected members and the management of the local authority.

You should make sure this relationship is effective and understood by everyone involved. This helps the local authority work well and make good decisions for the community. It is essential to follow these principles to ensure good governance.

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Part 4Governance and management of local authorities and community boards
Local authorities: Governance and management

39Governance principles

  1. A local authority must act in accordance with the following principles in relation to its governance:

  2. a local authority should ensure that the role of democratic governance of the community, and the expected conduct of elected members, is clear and understood by elected members and the community; and
    1. a local authority should ensure that the governance structures and processes are effective, open, and transparent; and
      1. a local authority should ensure that, so far as is practicable, responsibility and processes for decision-making in relation to regulatory responsibilities is separated from responsibility and processes for decision-making for non-regulatory responsibilities; and
        1. a local authority should be a good employer; and
          1. a local authority should ensure that the relationship between elected members and management of the local authority is effective and understood.

            1. In subsection (1)(d), good employer has the same meaning as in clause 36 of Schedule 7.

            Notes
            • Section 39(2): inserted, on , by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).