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In our council, any request for a dispensation is made via the clerk as soon as possible before the meeting, which is then discussed under declarations of interest at the meeting and a decision made.
Generally, applications may also be made at the council meeting itself if the council have a standing item on the agenda to deal with dispensation requests and the nature of the interest has only become apparent to a councillor at the meeting itself.

I don't know of any specific notice being required, (perhaps depends on your standing orders?)
by (5.3k points)
It does not depend on Standing Orders, but the law of the land. See s 33 of Localism Act 2011 http://www.legislation.gov.uk/ukpga/2011/20/section/33/enacted There should be no discussion about granting a dispensation which must be requested in writing and should not be granted unless there is good reason. If a councillor discovers an interest during a meeting s/he should declare it there and then and not take part in discussions or vote on that agenda item, and leave the room if s/he has a pecuniary interest or one that has been registered on the Register of Interests. Your clerk needs more training and your councillors should read the various Acts under which they serve. I, for one, am heartily fed up with this random interpretation and adherence to the laws and regulations. It seems  many parish councils are making it up as they go along.

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