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R v Secretary of State for the Environment ex p Hammersmith and Fulham LBC (1991)
Case Summary: This House of Lords case (1991) further restricts the scope of judicial review, particularly concerning decisions with inherent political elements. It builds upon the principles established in the Nottinghamshire case.
Facts: The Secretary of State, under the Local Government Finance Act 1988, imposed budgetary restrictions on local authorities, mandating proportionate poll tax reductions. Hammersmith and Fulham Council challenged this decision on grounds of illegality, irrationality, and procedural impropriety.
Decision: The House of Lords dismissed the council's challenge. The court held that the limitations on judicial review established in Nottinghamshire also applied here.
Key Reasoning (Lord Bridge):
  1. Statutory Compliance: Judicial review is only triggered after the court determines the ministerial action complies with the relevant statute (express or implied).
  2. Political Nature of Decision: The decision involved formulating and implementing national economic policy, requiring parliamentary approval. This inherently political nature significantly limits judicial scrutiny.
  3. Irrationality Standard: The court cannot review the merits of the policy unless the action demonstrates "bad faith, improper motive, or manifest absurdity." Simple unreasonableness is insufficient grounds for challenge.
  4. Separation of Powers: Reviewing the merits of economic policy would exceed the court's proper function and encroach on the executive's (and Parliament's) domain. The courts should not substitute their judgment for that of the elected government on matters of policy.
  5. Good Faith Assumption: If the Secretary of State acted in good faith within the Act's parameters, the courts cannot interfere with the policy's underlying merits.
Key Concepts & Implications:
  • Judicial Review Limitations: This case highlights significant constraints on judicial review when decisions involve complex policy choices with political dimensions. Courts will defer to the executive branch on matters within its legitimate sphere of authority.
  • Separation of Powers: The decision reinforces the principle of separation of powers, preventing the judiciary from overstepping its boundaries by second-guessing policy decisions of the executive branch.
  • Standard of Review: The "manifest absurdity" threshold for irrationality establishes a high bar for challenging government economic policy decisions. The court is highly unlikely to intervene unless there's clear evidence of bad faith or a completely unreasonable decision.
  • Application of Nottinghamshire Case: This case clarifies and extends the principles of judicial review limitation set out in the Nottinghamshire case.
Study Questions:
  1. What are the three grounds for judicial review? Which one is emphasized in this case and why?
  2. Explain Lord Bridge's reasoning regarding the separation of powers and the court's role in reviewing government policy.
  3. What is the threshold for irrationality in this context? Why is such a high bar set?
  4. How does this case build upon the principles established in the Nottinghamshire case?
  5. Discuss the implications of this decision for the balance of power between the judiciary and the executive in the UK.
Further Research:
  • Read the full judgment of R v Secretary of State for the Environment ex p Hammersmith and Fulham LBC (1991).
  • Research the Nottinghamshire case to understand the broader context of this decision.
  • Examine other cases concerning the limits of judicial review in relation to government policy decisions.
This study guide provides a comprehensive overview of the key aspects of the case and facilitates effective learning and understanding. Remember to actively engage with the study questions to reinforce your knowledge.



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