Legal Topic Not e
National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
LOCAL COUNCILS’ DOCUMENTS AND RECORDS
Introduction
1. Information about local council documentation is contained in Chapter 11 of ‘Local
Council Administration’ by Charles Arnold Baker (8th Edition). This Note is intended to
update and supplement that information, with particular reference to the length of time
documents should be retained by local councils.
Financial returns and accounts
2. Section 11.12 on page 106 of ‘Local Council Administration’ (8th Edition) requires
clarification. Parish councils, committees of parish councils (including joint committees)
and parish meetings of parishes without a separate parish council (namely bodies
caught by s.2 and schedule 2 of the Audit Commission Act 1998) are required to make
annual returns pursuant to regulations issued under s.27 Audit Commission Act 1998
rather than pursuant to s.168 Local Government Act 1972.
Retention of documents
3. Attached is an Annex indicating the appropriate minimum retention periods for audit and
other reasons. There is a clear need to retain documentation for audit purposes, staff
management, tax liabilities, and the eventuality of legal disputes and legal proceedings
(explained in paragraphs 7-11 below and in the attached Annex). Subject to the
aforementioned reasons for retaining documents, and as a basic starting point, papers
and records may be destroyed if they are no longer of use or relevant. If in doubt,
document(s) should be retained until proper advice has been received.
4. Other documents not mentioned in the Annex and not covered in Chapter 11 of ‘Local
Council Administration’ may be treated as follows –
LTN 40
January 2013
LTN 40
National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
Planning papers
a. Where planning permission is granted, the planning application, any plans and the
decision letter should normally be retained until the development has been
completed so that, if required, the council can check that the development
proceeds in accordance with the terms and conditions of the permission. Where
planning permission is granted on appeal, a copy of the appeal decision should
also be retained likewise. It may sometimes be sensible to retain an appeal
decision indefinitely because of wider implications (e.g. the decision may set a
precedent for other developments in the locality).
b. Where planning permission is refused, the papers should be retained until the
period within which an appeal can be made has expired. If an appeal is made, and
dismissed, the decision letter may, as in (a) above, be worth retaining against
further applications relating to the same site.
c. Where a substantial number of planning applications are received from the local
planning authority, it is advisable for a council to have an effective referencing and
filing system.
d. Copies of Structure Plans, Local Plans and similar documents should be retained
as long as they are in force.
Insurance policies – all insurance policies should be kept for as long as it is possible
for a claim to be made under them. Irrespective of how long policies and
correspondence are retained, the recommendation is that councils ensure that they
keep a permanent record of insurance company names and policy numbers for all
insured risks. Article 4 of the Employers’ Liability (Compulsory Insurance) Regulations
1998 (SI. 2753) requires local councils, as employers, to retain certificates of insurance
against liability for injury or disease to their employees arising out of their employment
(this insurance is mandatory pursuant to the Employers’ Liability (Compulsory
Insurance) Act 1969) for a period of 40 years from the date on which the insurance is
commenced or renewed.
Information from other bodies (e.g. circulars etc. from County Associations, NALC
and other bodies (e.g. principal authorities) too numerous to mention) – such
information should be retained for as long as it is useful and relevant.
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National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
Magazines and Journals – a council may want to keep its own publications (e.g. news
letters). The Legal Deposit Libraries Act 2003 (the 2003 Act) requires a local council
(and a parish meeting in a parish without a separate parish council) which after 1
February 2004 has published works in print (this includes a pamphlet, magazine or
newspaper, a map, plan, chart or table), to deliver, at its own expense, a copy of them
to the British Library Board (which manages and controls the British Library). The British
Library holds books, periodicals, manuscripts and other publications for reference, study
and information. Printed works as defined by the 2003 Act published by a local council
(or a parish meeting in a parish without a separate parish council) therefore constitute
materials which the British Library holds. There is a separate NALC legal briefing in
respect of the 2003 Act. Journals published by others (e.g local government news
journals and magazines) should be retained as long for as they are useful and relevant.
Correspondence – if related to audit matters, correspondence should be kept for the
appropriate period specified in the Annex hereto. In planning matters, correspondence
should be retained for the same period as suggested for other planning papers. For
other correspondence (unless relating to staff) , no firm guidelines can be laid down (but
see paragraphs 7 – 11 below).
Documentation relating to staff – should be kept securely and in accordance with the
8 data protection principles contained in the Data Protection Act 1998 . The principles
provide that personal data in relation to staff should not be kept for longer than is
necessary for the purpose it was held. However even after an employment relationship
has ended, a council may need retain and access staff records for former staff for the
purpose of giving references, payment of tax, national insurance contributions and
pensions, and in respect of any related legal claims made against the council. The time
limits within which a claim (and any appeal) may be lodged against an employer at an
employment tribunal are set out in the legislation that contains the employment right in
question or failing that by reference to the Limitation Act 1980 (as amended) considered
in paragraph 7 below. The time for lodging a claim at an employment tribunal is usually
measured from the date that the employment relationship ended or the date of the act
complained of. Subject to where the Limitation Act 1980 applies, the most common
time limit for lodging a claim at an employment tribunal is 3 months (for example a claim
for unfair dismissal must, by virtue of s.111 of the Employment Rights Act 1996, be
lodged at an employment tribunal within 3 months of the date of the termination of the
employment contract) although 6 months applies in redundancy and equal pay claims.
LTN 40
National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
Local/historical information – The Local Government (Records) Act 1962 provides
that parish councils (and parish meetings in parishes without a separate parish council)
may acquire records of local interest and accept gifts or records of general and local
interest in order to promote the use of such records (defined as materials in written or
other form setting out facts or events or otherwise recording information).
Arrangements for the deposit, storage and management of documents
5. In accordance with s. 227 of the Local Government Act 1972 (the 1972 Act), if a parish
council requests the district council in which the parish is situated or a community
council in Wales requests the county or county borough council in which the community
is situated, the relevant principal authority must provide proper depositories for all the
specified papers (defined as public books, writings, council papers and all documents
directed by law to be kept) belonging to the parish or community for which there is no
other provision. (In the case of a parish or community not having a separate parish or
community council, the council of the district in which the parish, or the county or county
borough council in which the community is situated must provide proper depositories for
all the specified papers under the control of the parish meeting or belonging to the
community but in England only with the consent of the parish meeting). Documents of
local and or historical importance, if not retained and stored by a local council, with or
without reliance on the provisions of s.227 of 1972 Act, should be offered first to the
county record office if there is one. The county archivist there will always be willing to
advise on which records should be permanently preserved.
6. Local councils (and parish meetings of parishes without a separate parish council) are
advised to implement system(s) of paper and electronic records management (including
those records retained for audit purposes reviewed annually by a council’s internal
auditor). Such systems should ensure the storage and security of, access to and
disposal of both paper and electronic records. It is essential that any such system(s)
(and policies) relating to record management include an annual review of the records
themselves and also the effectiveness of such systems(s) (and policies).
Retention of documents for legal purposes
7. Most legal proceedings are governed by the Limitation Act 1980 (as amended). The
1980 Act provides that legal claims may not be commenced after a specified period.
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National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
The specified period varies, depending on the type of claim in question. The table
below sets out the limitation periods for the different categories of claim. The reference
to ‘category’ in the table refers to claims brought in respect of that category.
Category Limitation Period
Negligence (and other ‘Torts’) 6 years
Defamation 1 year
Contract 6 years
Leases 12 years
Sums recoverable by statute 6 years
Personal Injury 3 years
To Recover Land 12 years
Rent 6 years
Breach of Trust None
8. Where the limitation periods above are longer than other periods specified in this Note,
the documentation should be kept for the longer period specified. Some types of legal
proceedings may fall within two or more categories. Rent arrears, for example, could
fall within the following three categories (depending on the circumstances):
contract (6 years) – because all tenancies and leases are contracts;
leases (12 years) – if the arrears are due under a lease; and
rent (6 years) – if the arrears are due under a tenancy (and not a lease).
In these circumstances, NALC advises that the relevant documentation should be kept
for the longest of the three limitation periods.
9. The same principles apply in the case of debts. If the debt arises under a simple
contract the limitation period will be 6 years but if the debt arises under a lease the
limitation period will be 12 years (unless it relates to rent in which case the limitation
period will be 6 years). A final complication relates to sums due under leases which are
‘reserved as rent’. Sometimes, for example, service charges are expressed to be
payable as ‘additional rent’. The limitation period for service charges in those
circumstances will be 6 years – even though the sums are due under a lease.
10. As there is no limitation period in respect of trusts, councils are advised that they should
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National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
never destroy trust deeds and schemes and other similar documentation.
11. For the sake of completeness it should be noted that some limitation periods can be
extended. Examples include:
where individuals first become aware of damage caused at a later date (e.g. in the
case of personal injury);
where damage is latent (e.g. to a building); or
where a person suffers from a mental incapacity;
where there has been a mistake or where one party has defrauded another or
concealed facts.
12. In such circumstances individual councils will need to weigh (i) the costs of storing
relevant documents and (ii) the risks of:
claims being made;
the value of the claims; and
the inability to defend any claims made should relevant documentation be
destroyed.
13. It hardly needs to be said that the higher the value of a contract or the higher the risk or
value of a claim being made, the more likely it is that the greater expense/
inconvenience of storing documents for longer periods can be justified. Councils should
also confirm the precise wording of any insurance policies they have to ensure that they
comply with any terms they contain in respect of the retention of documents and
information.
Data Protection and Freedom of Information Considerations
14. In November 2002, the Lord Chancellor issued a Code of Practice pursuant to section
46 of the Freedom of Information Act 2000. The Code, which is called the ‘Lord
Chancellor’s Code of Practice on the Management of Records’ applies to public
authorities and also bodies which are subject to the Public Records Act 1958. Although
local councils are not subject to the 1958 Act, they should familiarise themselves with
the contents of the Code of Practice so they can formulate their own system of records
management. The Code of Practice is available on the internet and can be accessed
via the following link:
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National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
http://www.foi.gov.uk/reference/imprep/codemanrec.htm#part1
15. Further information in respect of the Freedom of Information Act 2000 is set out in LTN
37 (Freedom of Information) and in respect of the Data Protection Act 1998 in LTN 38
(Data Protection).
Other Legal Topic Notes (LTNs) relevant to this subject:
LTN Title Relevance
22 Disciplinary & Grievance
Arrangements
Sets out arrangements for dealing with
employment issues
23 Health and Safety Sets out need for public liability insurance
28 Basic Charity Law Sets out duties of custodian trustees to hold
title deeds of charity
37 Freedom of Information Sets out the information councils are obliged to
disclose.
38 Data Protection Sets out the circumstances in which personal
data should not be disclosed.
42 Occupiers Liability Sets out need for public liability insurance.
68 Negligence Sets out the need for pubic liability insurance.
© NALC 2013
LTN 40
National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
ANNEX TO LEGAL TOPIC NOTE 40
RETENTION OF DOCUMENTS REQUIRED FOR THE AUDIT OF PARISH COUNCILS
DOCUMENT MINIMUM RETENTION
PERIOD
REASON
Minute books Indefinite Archive
Scales of fees and
charges
6 years Management
Receipt and payment
account(s)
Indefinite Archive
Receipt books of all kinds 6 years VAT
Bank statements,
including deposit/savings
accounts
Last completed audit year Audit
Bank paying-in books Last completed audit year Audit
Cheque book stubs Last completed audit year Audit
Quotations and tenders 6 years Limitation Act 1980 (as
amended)
Paid invoices 6 years VAT
Paid cheques 6 years Limitation Act 1980 (as
amended)
VAT records 6 years VAT
Petty cash, postage and
telephone books
6 years Tax, VAT, Limitation Act
1980 (as amended)
Timesheets Last completed audit year Audit
Wages books 12 years Superannuation
Insurance policies While valid Management
Certificates for Insurance
against liability for
employees
40 years from date on which
insurance commenced or
was renewed
The Employers’ Liability
(Compulsory Insurance)
Regulations 1998 (SI. 2753),
Management.
Investments Indefinite Audit, Management
Title deeds, leases,
agreements, contracts
Indefinite Audit, Management
Members allowances
register
6 years Tax, Limitation Act 1980 (as
amended)
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National Association of Local Councils
Tel: 020 7637 1865 Fax: 020 7436 7451 e-mail: nalc@nalc.gov.uk website: www.nalc.gov.uk
DOCUMENT MINIMUM
RETENTION
PERIOD
REASON
For Halls, Centre, Recreation Grounds
application to hire
lettings diaries
copies of bills to hires
record of tickets issued
6 years VAT
For Allotments
register and plans Indefinite Audit, Management
For Burial Grounds
register of fees collected
register of burials
register of purchased graves
register/plan of grave spaces
register of memorials
applications for interment
applications for right to erect memorials
disposal certificates
copy certificates of grant of exclusive
right of burial
Indefinite Archives, Local Authorities
Cemeteries Order 1977 (SI.
204)
© NALC 2010
