Local authority use of Arm’s Length External Organisations (ALEO’s): FOI release

Information requested

1. Has the Scottish Government ever been informed of Glasgow City Council’s use of multiple corporate identities and D-U-N-S numbers?

2. Has any public servant in government correspondence acknowledged or accepted this practice?

3. Which incorporated entity holds the liability and legal standing to enforce Council Tax under the Local Government Finance Act 1992?

4. Have any referrals been made to Audit Scotland, the Procurator Fiscal, or other investigative bodies in light of this corporate duplicity?

5. If not, why has the Scottish Government failed to act upon such knowledge, which would affect every household in Glasgow?

Response

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have all of the information you have requested.

In response to question 1, the Scottish Government have not specifically been informed of the use of Glasgow City Councils multiple D-U-N-S numbers, but are aware of the widespread practice of local authorities in Scotland, using Arm’s Length External Organisations (ALEO’s), such as wholly-owned or jointly owned limited companies and limited liability partnerships, to provide services on a commercial basis. For reporting purposes these entities are consolidated within the Council’s group structure.

A DUNS number is assigned automatically to each company upon incorporation and is used as a standard business identifier, similar to a social security number for individuals, to track a company's creditworthiness and business history.

Local authorities employ their own legal teams to ensure that they operate within the bounds of the law.

In response to question 2, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested. The Scottish Government does not hold and is not required to hold information regarding Glasgow City Council ‘D-U-N-S’ numbers.

In response to question 3, Council Tax enforcement is the statutory responsibility of the local authority to which the Council Tax is payable. The Local Government Finance Act 1992 (legislation.gov.uk) provides for certain local authorities to levy and collect Council Tax. For the information requested see Section 70 and Section 75.

The present Council Tax was created in 1993. Council Tax comprises both property and personal elements; it is a charge based on:

• the value of residential property;
• discounts, exemptions, and reductions for some households to reflect property characteristics or personal circumstances

In response to question 4, The Accounts Commission is responsible for securing the audit of all local authorities in Scotland. The auditor is responsible for gaining adequate assurance as to the financial management and administration of the local authority. Should a local authority be found to be operating beyond its statutory limitations a special report would be made to the Accounts Commission, upon which the Accounts Commission may decide to take further action if deemed appropriate and which may include providing advice to the Scottish Ministers. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested. However, you may wish to contact The Accounts Commission at info@audit-scotland.gov.uk who may be able to help you.

In response to question 5, the Scottish Government routinely scrutinises local authority financial management and administration along with compliance with the statutory framework. No concerns or infractions have been identified.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.