Various queries relating to Local Councils in Scotland: FOI release

Information requested

1. As Local Councils in Scotland are listed on Companies House and have a Duns Number are they Corporations.

2. Are Local Councils in Scotland exempt from the Bills of Exchange Act and if they are could you please provide the exemption evidence?

3. Are Local Councils in Scotland Lawfully required to get a written Liability Order signed by a Judge to sell on any Council Tax Dept?

4. As Stirling Park Sheriff Officers is on Companies House are they a for profit Corporation.

5. Do Stirling Park Sheriff Officers require the signed Liability Order to enforce any dept?

Response

1. As Local Councils in Scotland are listed on Companies House and have a Duns Number are they Corporations.

Local authorities are legal entities created by statute and subject to specific statutory rules. Local authorities are not corporations in the usual sense. Local authorities are exempt from the taxes payable by corporations and will not usually be registered on companies house. However, arm’s lengths external organisations, such as companies or partnerships, which are either wholly or partly owned by a local authority will be registered with Companies House and may therefore identify the local authority.

Local authorities in Scotland often use Arms Length External Organisations (ALEO’s), such as whollyowned 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. The annual accounts include the financial performance of the group companies and are subject to external audit. Although a local authority will not have a DUNS number, an ALEO of a local authority may do, as a separate legal entity registered with Companies house.

A DUNS number is simply an entity identifier and is assigned automatically to an entity upon incorporation. It is used as a standard business identifier, similar to a social security number for individuals, to track a company's creditworthiness and business history. This information is then used by lenders, suppliers, and other businesses to assess a company's reliability and financial standing, especially in international transactions. While a local authority will not have a DUNS number, local authorities employ their own legal teams to ensure that they operate within the bounds of the law.

I have included a link to guidance for local authorities on the use of Arm’s Length External Organisations (ALEO’s) which was published by the Accounts Commission in 2018 and which provides an overview of the 130 such organisations used (at that time) by local authorities in Scotland.

Councils' use of arm's-length organisations | Audit Scotland

The Accounts Commission is responsible for scrutinising the financial management and performance of a local authority via the annual audit of all local authority annual accounts in Scotland. The appointed 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.

As well as scrutiny and oversight by the Accounts Commission and Scottish Government, a number of other public bodies have also reviewed the use of ALEO’s and published advice on this, such as the Scottish Charity Regulator and the Standards Commission for Scotland:

2015-01-09-oscr-aleo-report.pdf

160928 Advice for Councillors on ALEOs(FINAL) .pdf

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.

2. Are Local Councils in Scotland exempt from the Bills of Exchange Act and if they are could you please provide the exemption evidence.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not hold any information on this. As such, I hereby provide you with formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

Outwith FOISA, the Scottish Government does not hold any information on whether local councils in Scotland are exempt from the Bills of Exchange Act. You may wish to consider seeking independent legal advice to answer this question.

3. Are Local Councils in Scotland Lawfully required to get a written Liability Order signed by a Judge to  sell on any Council Tax Dept.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not hold any information on this. As such, I hereby provide you with formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

Outwith FOISA it may be worth noting, Liability Orders are used in England and Wales in the collection of council tax debt, the Scottish equivalent is a Summary Warrant. The Scottish Government does not hold any information on whether Summary Warrants need to be signed by a judge to sell on Council Tax debt. You may wish to consider seeking independent legal advice to answer this question.

4. As Stirling Park Sheriff Officers is on Companies House are they a for profit Corporation.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not hold any information on this. As such, I hereby provide you with formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

However, outwith FOISA, Stirling Parks is a limited liability partnership (LLP) and therefore can generate profit, and those profits will be shared between the partners of the LLP on an agreed profit-sharing basis.

5. Do Stirling Park Sheriff Officers require the signed Liability Order to enforce any dept.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not hold any information on this. As such, I hereby provide you with formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

As stated in our answer to your third question, Liability Orders are used in England and Wales in the collection of council tax debt, the Scottish equivalent is a Summary Warrant. You may wish to consider seeking independent legal advice to answer this question.

Reasons for not providing information

An exemption applies

An exemption under section s.17 (1) (b) of FOISA applies to some of the information you have requested. S.17 details a notice that information is not held. In this instance, information is not held, as stated, because the Scottish Government does not hold information regarding the Bills of Exchange Act and Liability Orders.

This exemption is not subject to the ‘public interest test’, so we are not required to consider if the public interest in disclosing the information outweighs the public interest in applying the exemption.

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.