Prejudicial interest
Encyclopedia
In UK local authority politics, the term prejudicial interest is used to describe a particular type of conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....

 involving councillors. When a councillor has an interest in a topic under debate that may affect their ability to fairly and objectively consider the subject, he or she is said to have a prejudicial interest. An example would be a councillor discussing a planning application for a company in which he or she has an interest. The councillor has an interest in the plans being approved and is therefore considered to have a "prejudicial interest".

The Standards Board for England
Standards Board for England
Standards for England, formerly known as the Standards Board for England, is a non-departmental public body sponsored by the Department for Communities and Local Government. Established following the Local Government Act 2000, it is responsible for promoting high ethical standards in local democracy...

 is the body responsible for investigating allegations of undeclared prejudicial interests. It is the responsibility of the councillor to declare their interest prior to discussions or votes and, once declared, they must leave the room for the duration of the discussion or vote.

Anyone can make an allegation of an undeclared prejudicial interest although the Standards Board for England
Standards Board for England
Standards for England, formerly known as the Standards Board for England, is a non-departmental public body sponsored by the Department for Communities and Local Government. Established following the Local Government Act 2000, it is responsible for promoting high ethical standards in local democracy...

 can only investigate reactively rather than proactively - ie. they cannot intervene to stop an offence from taking place, only investigate the offence once it has taken place.

Councillors and members of other local authorities in England are governed by a Code of Practice which is enforced by the Standards Board for England
Standards Board for England
Standards for England, formerly known as the Standards Board for England, is a non-departmental public body sponsored by the Department for Communities and Local Government. Established following the Local Government Act 2000, it is responsible for promoting high ethical standards in local democracy...

. In Scotland, the Standards Commission for Scotland carries out a similar function but also regulates members of devolved bodies. In Wales, it is the Public Services Ombudsman for Wales that carries out the equivalent function.
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