Decision details

As set out in the attached report.

1.    To confirm the provision by the West of England Mayoral Combined Authority of indemnities to all its members and officers in the following terms:

“The West of England Mayoral Combined Authority (“the Authority”) agrees to indemnify each of its membersand officerswith respect to any action of, or failure to act by, said member or officer which:-

(a) is authorised by the Authority; or

(b) forms part of, or arises from, any powers conferred, or duties placed, upon that member or officer, as a consequence of any function being exercised by that member or officer (whether or not when exercising that function, he does so in his capacity as a member or officer of the Authority)

(i) at the request of, or with the approval of the Authority, or

(ii) for the purposes of the Authority;

save where the action or failure to act:-

(a)      constitutes a criminal offence (but an indemnity is available for any civil liability arising as a consequence of any action or failure to act which also constitutes a criminal offence other than where the action or failure to act falls within (b) hereof; and for the expense of successfully3 defending criminal proceedings whether at trial or on appeal); or

(b)      is the result of fraud, or other deliberate wrongdoing or recklessness on the part of that member or officer;

and no indemnity is provided in relation to the making by the member or officer of any claim in relation to an alleged defamation of that member or officer but may be provided in relation to the defence by that member of officer of any allegation of defamation made against him.

The indemnity granted hereunder will apply even in circumstances where the Authority did not have power to perform the relevant act so long as the member or officer:-

(a)      believed that the action, or failure to act, in question was within the powers of the Authority, or

(b)      where that action or failure comprises the issuing or authorisation of any document containing any statement as to the powers of the Authority, or any statement that certain steps have been taken or requirements fulfilled, believed that the contents of that statement were true,

and it was reasonable for that member or officer to hold that belief at the time when he acted or failed to act.

Further, the indemnity granted hereunder will apply in relation to an act or omission which is subsequently found to be beyond the powers of the member or officer in question but only to the extent that the member or officer reasonably believed that the act or omission in question was within his powers at the time at which he acted.

For the avoidance of doubt, this indemnity will not extend to the costs of legal advice or representation where the purpose of the same is (or is reasonably considered to be or include) making a claim or bringing a challenge of any sort against the Authority or a member or officer of the authority, nor to the costs of legal advice or representation of defending a claim brought by the Authority against the member or officer, or of the damages, compensation or accounts payable arising from such a claim”.

2.       To authorise the S73 Officer to put in place such insurance arrangements as that Officer considers necessary or prudent in the interests of the West of England Mayoral Combined Authority in relation to the indemnities provided to its Members and Officers.

As set out in the attached report.

Other Options Considered:

Do nothing. This option was discounted as it is not considered appropriate to expect members and officers to operate effectively in an organisation of the size and complexity of the West of England Mayoral Combined Authority, to deliver the complex and innovative projects and initiatives that it must deliver at pace, without the benefit of full indemnities permissible under law and routinely put in place by all other public authorities.

To proceed as set out, but not utilising urgency powers. This would require a decision of the Committee. Careful consideration was given to this option, however a statutory duty to deal with a matter of unlawful expenditure has arisen in circumstances where the deficiency with existing indemnities had not previously identified.

There is now insufficient time to convene a meeting of the Committee to grant the indemnity sought before the point in time when the statutory officers will incur personal risk in dealing with the unlawful expenditure matter, if the statutory officers are to deal with that matter in accordance with the obligations they are under. Neither statutory officer is prepared to expose themselves to those risks without the benefit of the indemnity sought. Not dealing with the unlawful expenditure issue in a timely and appropriate manner, which this urgent decision would allow, presents significant risk to the authority in terms of compounded reputational damage and an increased risk of government and/or external audit intervention.