(6) Subject to subsection (7) below, a scheme under this section may make such provision in relation to an educational endowment as the Secretary of State considers appropriate and, without prejudice to the generality of the foregoing, may include provision for—

(a) amending or revoking the governing instrument of an endowment;

(b) grouping, amalgamating, combining or dividing any endowments;

(c) the purposes to which, and the conditions under which, any such endowments may be applied;

(d) incorporating or establishing new governing bodies, or dissolving, combining or uniting any governing bodies;

(e) the powers of the governing body of any endowment.

(7) In exercising his powers under subsection (6) above, the Secretary of State shall make no more changes with respect to any endowment than appear to him to be necessary or expedient in consequence of the alteration of local government areas effected by this Part of this Act.

(8) Schemes under this section may make different provision in relation to different endowments or categories of endowment, different provision in respect of different items or categories of property, rights, liabilities and obligations, and different provision in respect of different authorities.

(9) Subject to the provisions of the governing instrument of an educational endowment (including such an instrument made or amended by a scheme under this section), where, as the result of the election of a new authority occurring after 1st April 1996, it is necessary for a person to be nominated by the authority or by a committee thereof to be vested (to any extent) with the endowment, in terms of subsection (2) above, or to be vested with any power, in terms of subsection (3) above, that person shall be so nominated at the first meeting of the authority or committee held after it has been elected or appointed; and in such a case the person who (to the said extent) was last vested with the endowment or, as the case may be, who was last vested with the power, before the meeting shall continue therein until the date of the meeting.

(10) Section 19 of this Act applies in relation to educational endowments as it applies in relation to the property referred to in that section.

(11) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(12) Expressions used in this section and in Part VI of the [1980 c. 44.] Education (Scotland) Act 1980 have the same meaning in this section as in that Part.

(13) Nothing in this section shall affect any other power to reorganise any educational endowment or otherwise to alter the provisions of any trust.

(14) In this section—

  • “authority” includes an existing local authority and a new authority;

  • “existing local authority” includes a joint committee and a joint board but does not include an islands authority; and

  • “new authority” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles) and a joint board.

18 Residuary bodies

(1) The Secretary of State may by order establish one or more bodies, to be known as “residuary bodies”, for the purpose of—

(a) taking over and exercising such functions with respect to such property, rights and liabilities as may be transferred under section 15 of this Act; and

(b) exercising such other functions, including, without prejudice to the generality of the foregoing, any functions which may be conferred on a property commission under section 19 of this Act,

as he may so prescribe.

(2) An order under this section may apply to a residuary body, with such modifications as may be specified, any enactment which applies to a local authority in Scotland.

(3) The Secretary of State may give directions to a residuary body as to—

(a) the carrying out by them of any of their functions; and

(b) the exercise by them of any of the powers conferred on them by or under this section.

(4) The Secretary of State may require a residuary body to make payments of such amounts, and at such times, as he may specify to a local authority or a joint board.

(5) The Secretary of State may require any local authority in the area in which a residuary body operates to meet such proportion of their expenses as he may determine.

(6) Any expenses incurred by a residuary body shall, in so far as they are not otherwise met, be paid by the Secretary of State out of money provided by Parliament.

(7) The Secretary of State may direct a residuary body to prepare, within such time as he may specify in the direction, a scheme for their winding up and for the disposal of their property, rights and liabilities.

(8) Subject to subsection (9) below, where a residuary body have prepared a scheme such as is mentioned in subsection (7) above, the Secretary of State may by order give effect to that scheme, subject to any modifications he considers appropriate, and any such order may—

(a) include provision for the disposal, whether by transfer or otherwise, of the body’s property; and

(b) contain such supplementary and transitional provision as the Secretary of State thinks necessary or expedient.

(9) Where a residuary body is wound up in accordance with an order under subsection (8) above sections 8, 9, 10 and 13 of this Act shall apply, with any necessary modifications, to the staff of the residuary body as they apply to the staff of an existing local authority.

(10) Schedule 3 to this Act has effect in relation to residuary bodies.

(11) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

19 Property commission

(1) Subject to subsection (2) below and after such consultation, whether before or after the passing of this Act, as he considers appropriate, the Secretary of State may by order establish a property commission for the purpose of—

(a) advising authorities on matters relating to property to be transferred from existing local authorities to new authorities;

(b) advising the Secretary of State on the general principles on which such property should be transferred; and

(c) carrying out such other functions in relation to the transfer of property as may be specified in the order,

and for the purposes of this section “property” includes property held on trust to which section 16 of this Act applies.

(2) An order under this section may make provision as to the constitution and membership of the commission, the appointment and removal from office by the Secretary of State of the chairman and members of the commission, the employment of staff and the remuneration and superannuation of the members and staff of the commission.

(3) The Secretary of State may give directions—

(a) to the commission as to the carrying out by them of their functions;

(b) as to the area or areas in which the commission are to carry out their functions;

(c) as to the procedure to be followed by the commission;

(d) for the supplying of information to the commission by any authority; and

(e) to any authority—

(i) as to the implementation of advice given to them by the commission; and

(ii) as to the payment by them of any expenses incurred by the commission in doing anything requested of them by that authority.

(4) The Secretary of State may by order provide for the winding up of the commission and the disposal of their assets.

(5) Any expenses incurred by the property commission and not recovered by them from an authority shall be paid by the Secretary of State out of money provided by Parliament.

(6) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

  • “authority” includes an existing local authority and a new authority;

  • “existing local authority” includes a joint committee and a joint board but does not include an islands authority; and

  • “new authority” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands and Western Isles) and a joint board.

Chapter 4 General

20 Joint committees and joint boards

After section 62 of the 1973 Act (standing orders, etc.) there shall be inserted—

62A Incorporation of joint committees

(1) Where—

(a) arrangements are made (whether under this Act or any other enactment) for two or more local authorities (in this Part of this Act referred to as “the relevant authorities”) to discharge any of their functions, or any functions in any area, jointly;

(b) the relevant authorities have—

(i) appointed, or propose to appoint, a joint committee to discharge those functions; and

(ii) advertised their proposals in accordance with subsection (2) below; and

(c) application is made, in writing, to the Secretary of State by the relevant authorities for the incorporation of that joint committee (or proposed joint committee) as a joint board to carry out those functions,

the Secretary of State may by order establish a joint board in accordance with this section to discharge those functions.

(2) Before applying to the Secretary of State under subsection (1)(c) above, the relevant authorities shall place in at least one daily newspaper circulating in their areas an advertisement—

(a) giving brief details of what they propose to do;

(b) giving an address to which representations about the proposal may be sent; and

(c) fixing a date, being not less than 8 weeks after the date on which the advertisement appears, within which representations may be made,

and they shall include with their application evidence that an advertisement has been placed.

(3) Where any representations are timeously made in response to an advertisement placed in accordance with subsection (2) above, the relevant authorities shall consider them and shall include with their application a statement that they have done so.

(4) An order under subsection (1) above shall delegate to the joint board such of the functions of the relevant authorities as may be specified in the order and may include provision with respect to—

(a) the constitution and proceedings of the joint board;

(b) matters relating to the membership of the joint board;

(c) the transfer to the joint board of any property, rights and liabilities of the relevant authorities;

(d) the transfer to the joint board of any staff of the relevant authorities;

(e) the supply of services or facilities by the relevant authorities to the joint board,

and may, without prejudice to the generality of paragraphs (a) to (e) above, apply (with or without modifications) any of the provisions of Part V of this Act to a joint board as those provisions apply to a joint committee.

(5) A joint board established under this section shall be a body corporate and shall have a common seal.

(6) An order under subsection (1) above shall be in terms agreed by the relevant authorities.

(7) An instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

62B Power of Secretary of State to establish joint boards

(1) Where the Secretary of State considers—

(a) that any functions, or any functions in any area, of the relevant authorities should be discharged jointly by those authorities; and

(b) that arrangements, or satisfactory arrangements, for the joint discharge of those functions—

(i) have not been made by the relevant authorities; or

(ii) have ceased to be in operation,

he may, after consulting the relevant authorities, by order establish a joint board in accordance with this section.

(2) Subsections (4) and (5) of section 62A of this Act shall apply to a joint board established under this section as they apply to a joint board established under that section with the substitution of a reference to subsection (1) of this section for the reference to subsection (1) of that section.

(3) No order shall be made under subsection (1) above unless a draft of the instrument containing the order has been laid before, and approved by resolution of, each House of Parliament.

62C Further provisions relating to joint boards

(1) Where a joint board has been established by order under section 62A or 62B of this Act, the Secretary of State may by order provide—

(a) for excluding any functions, or any functions in any area, from those specified in the order establishing that joint board; and

(b) for the dissolution of the joint board.

(2) An order shall not be made under subsection (1) above unless the Secretary of State has consulted the relevant authorities.

(3) An instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) The power to make an order under this section or section 62A or 62B of this Act shall include power to make such transitional, incidental, supplemental or consequential provision as the Secretary of State thinks necessary or expedient.

(5) An order under this section or section 62A or 62B of this Act may, for the purpose of making such provision as is mentioned in subsection (4) above—

(a) apply with or without modifications;

(b) extend, exclude or amend; or

(c) repeal or revoke with or without savings,

any enactment or any instrument made under any enactment..

21 Application of section 211 of the 1973 Act to joint boards

In section 211 of the 1973 Act (provisions for default of local authority), after subsection (4) insert—

(5) The provisions of this section shall apply to a joint board as they apply to a local authority..

22 Community councils

(1) Subject to subsection (2) below, schemes for the establishment of community councils made and approved under section 52 of the 1973 Act, including any such schemes as amended by virtue of section 53 of that Act, which are effective immediately before 1st April 1996 shall continue to have effect in respect of the area, or part of an area, to which they apply on and after that date.

(2) Without prejudice to their duty under section 53 of the 1973 Act, on and after 1st April 1996, a local authority may revoke a scheme (or an amended scheme) such as is mentioned in subsection (1) above in so far as it relates to their area and make a new scheme in accordance with this section.

(3) Where a local authority propose to make a new scheme such as is mentioned in subsection (2) above—

(a) they shall give public notice of their intention to revoke the existing scheme and make a new scheme for the establishment of community councils, and any such notice shall invite the public, within a period of not less than eight weeks from the date of the notice, to make suggestions as to the areas and composition of the community councils;

(b) after considering suggestions made under paragraph (a) above, the local authority shall prepare and give public notice of a draft scheme which shall contain—

(i) a map showing the boundaries of the proposed areas of community councils and their populations, and the boundaries of any area for which the local authority consider a community council to be unnecessary;

(ii) where a local authority consider that a community council is unnecessary for any area, a statement of their reasons for arriving at that conclusion;

(iii) provisions relating to qualifications of electors, elections or other voting arrangements, composition, meetings, financing and accounts of community councils;

(iv) provisions concerning the procedures to be adopted by which the community councils on the one hand and the local and public authorities with responsibilities in the areas of the community councils on the other will keep each other informed on matters of mutual interest; and

(v) such other information as, in the opinion of the local authority, will help the public to make a reasonable appraisal of the scheme;

(c) the notice mentioned in paragraph (b) above shall invite the public, within a period of not less than eight weeks from the date of the notice, to make representations to the local authority as respects the draft scheme;

(d) after considering any representations made under paragraph (c) above, the local authority may, after giving public notice of the amendments to the proposals and a further invitation to make representations, amend the draft scheme to take account of those representations and adopt it;

(e) the local authority shall give public notice of the scheme in its adopted form together with public notice of such a scheme as it applies to each proposed area, by exhibition in that area, and any such notice shall contain an invitation to electors in the area concerned to apply in writing to the authority for the establishment of a community council in accordance with the scheme.

23 Duty to prepare decentralisation schemes

(1) Every council shall have a duty to prepare a draft decentralisation scheme for their area in accordance with this section.

(2) A draft decentralisation scheme shall contain a council’s proposals for the administration of their functions within the whole area of the council and shall specify the date or dates by which such a draft scheme shall be implemented and, without prejudice to the generality of the foregoing, may include provision as to—

(a) arrangements for the holding of meetings of the council (or any committee or sub-committee of the council) at particular places within the area of the council;

(b) the establishment of committees for particular areas and the delegation to those committees (under section 56 of the 1973 Act) of specified functions of the council;

(c) the location of offices of the council within the council’s area, the staffing of such offices and the delegation to members of staff (under the said section 56) of specified functions;

(d) the provision of facilities at particular places within the area of the council where advice may be obtained on services provided by the council.

(3) Every council shall, before 1st April 1997, give public notice of the fact that they have prepared a draft decentralisation scheme and of the places within their area where copies of the draft scheme may be inspected, and any such notice shall invite the public, within a period of not less than eight weeks from the date of the notice, to make to the council representations as regards the draft scheme.

(4) Every council shall, during the period mentioned in subsection (3) above, consult the community councils within their area about the draft scheme.

(5) After considering any representations made under subsection (3) or (4) above, the council may amend the draft scheme (whether to take account of those representations or otherwise) and shall adopt the scheme.

(6) After the scheme has been adopted, the council shall—

(a) send a copy of the scheme in its adopted form to the Secretary of State; and

(b) give public notice of such scheme.

(7) Where a scheme has been adopted, it shall be the duty of the council concerned to implement the scheme by the date or dates specified in the scheme.

(8) A council may amend a scheme adopted under this section or revoke and replace such a scheme but the amended scheme or, as the case may be, new scheme shall be adopted in accordance with the provisions of this section, subject to such modifications as are necessary.

(9) The Secretary of State may, after consulting such associations of local authorities and such other persons as appear to him to be appropriate, issue guidance with respect to the form and content of decentralisation schemes.

(10) A council shall take account of any guidance issued under subsection (9) above.

Chapter 5 Finance

Transitional provisions

24 Transitional provisions: finance

After section 94 of the 1992 Act insert—

94A Transitional provisions

(1) The Secretary of State may, after consulting such associations of local authorities as appear to him to be appropriate, specify in a report, as regards the financial year 1996-97 and any local authority, the amount which in his opinion should be used as the basis of comparison for the purposes of paragraph 1(1) of Schedule 7 to this Act.

(2) A report under this section—

(a) shall contain such explanation as the Secretary of State considers desirable of the calculation by him of the amount mentioned in subsection (1) above; and

(b) shall be laid before the House of Commons.

(3) A report under this section may relate to two or more authorities and may be amended by a subsequent report under this section.

(4) If a report under this section is approved by resolution of the House of Commons, paragraph 1(1) of Schedule 7 to this Act shall have effect, as regards the financial year 1996-97 and any authority to which the report relates, as if the amount mentioned in subsection (1) above were the basis of comparison there referred to.

(5) This section shall not apply in relation to Orkney Islands, Shetland Islands and Western Isles..

25 Financing of new authorities prior to 1st April 1996

(1) The Secretary of State may with the consent of the Treasury make grants of such amounts, and subject to such conditions, to local authorities as he considers appropriate.

(2) A local authority may with the consent of the Secretary of State (who shall in turn seek the consent of the Treasury) borrow by way of temporary loan or overdraft from a bank or otherwise any sums which they may temporarily require for the purpose of defraying expenses (including the payment of sums due by them to meet the expenses of other authorities) pending the receipt of revenues receivable by them after 1st April 1996.

(3) Grants made under this section shall be made out of money provided by Parliament.

(4) In this section “local authority” means any of the local authorities the members of which are to be elected, in accordance with section 5 of this Act, on 6th April 1995.

Valuation and rating

26 Valuation lists

(1) Subject to the provisions of this section, the local assessor for each new local authority area shall compile for the council for that area, from the existing valuation lists, a valuation list as at 1st April 1996.

(2) The provisions of section 84 of the 1992 Act (compilation and maintenance of valuation lists) shall apply, with any necessary modifications, to a valuation list compiled under subsection (1) above as they apply to a valuation list compiled under that section.

(3) As soon as reasonably practicable after compiling a valuation list under subsection (1) above, the local assessor shall send a copy of the list to the council for whose area the list was compiled; and the council shall, as soon as reasonably practicable, deposit it at their principal office.

(4) Subsection (1) above does not apply to the local assessors for the councils of the Borders, Dumfries and Galloway, Fife, Highland, Orkney Islands, Shetland Islands or Western Isles.

(5) In this section—

  • “existing valuation lists” means the lists maintained under the said section 84 of the 1992 Act on the day on which this section comes into force in relation to the area of any regional council whose area includes any part of the area of the new authority; and

  • “valuation list” has the same meaning as in the 1992 Act.

(6) A local assessor shall compile a list under this section by extrapolating from the existing valuation lists and, accordingly, except to the extent that valuation may be required to be carried out under any provision of the 1992 Act, shall not carry out any valuation of property for the purposes of a list compiled under this section.

27 Valuation areas and authorities and appointment of assessors etc

(1) Each local authority area shall be a valuation area, and the council of each area shall be the valuation authority for that area; and on and after 1st April 1996 the valuation authorities constituted under this section shall have and exercise in relation to valuation the powers exercisable by valuation authorities immediately prior to that date.

(2) Every valuation authority shall, in accordance with the provisions of this section, appoint an assessor and such number of depute assessors as the authority may consider necessary for the purposes of the Valuation Acts; and any assessor or depute assessor appointed under the 1973 Act by a regional or islands council and holding office immediately before 1st April 1996 shall cease to hold office on that date.

(3) The Secretary of State shall by order prescribe the qualifications required to be possessed by any person appointed to the office of assessor or depute assessor and, except as otherwise provided in such an order, a person shall not be appointed as assessor or depute assessor unless he possesses the qualifications so prescribed.

(4) A depute assessor appointed under this section shall have and may exercise all the functions of an assessor so appointed.

(5) An assessor or depute assessor appointed under this section shall hold office on such reasonable terms and conditions, including conditions as to remuneration, as the authority appointing him think fit.

(6) An assessor or depute assessor appointed under this section shall hold office during the pleasure of the valuation authority but shall not be removed from office (or required to resign as an alternative thereto) except—

(a) by a resolution of the authority passed by not less than two-thirds of the members present at a meeting of the authority the notice of which specifies as an item of business the consideration of the removal from office of the assessor or his being required to resign; and

(b) with the consent of the Secretary of State,

and before deciding whether or not to give such consent the Secretary of State shall give the authority and the assessor an opportunity of being heard by a person appointed by the Secretary of State.

(7) If it appears to the Secretary of State that any functions, or any functions in any area, of two or more valuation authorities should be discharged jointly by those authorities, he may by order establish a joint board in accordance with this section.

(8) An order under this section shall delegate to the joint board such of the functions of the valuation authorities concerned under the Valuation Acts as may be specified in the order and may include such incidental, consequential and supplemental provision as the Secretary of State considers necessary or expedient for bringing the order into operation and for giving full effect thereto.

(9) Without prejudice to the generality of subsection (8) above, an order under this section may include provision with respect to—

(a) the constitution and proceedings of the joint board;

(b) matters relating to the membership of the joint board;

(c) the transfer to the joint board of any property, rights and liabilities of the authorities concerned;

(d) the transfer to the joint board of any staff of the authorities concerned;

(e) the supply of services or facilities by the authorities concerned to the joint board; and

(f) the dissolution of the joint board,

and may, without prejudice to the generality of paragraphs (a) to (f) above, apply (with or without modifications) any of the provisions of Part V of the 1973 Act to a joint board established under this section as those provisions apply to a joint committee.

(10) A joint board established under this section shall be a body corporate and shall have a common seal.

(11) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(12) Any reference in any enactment to a valuation authority shall, where any function to which that enactment relates is for the time being exercised by a joint board established under this section, include any such joint board.

28 Valuation rolls

(1) Subject to the provisions of this section, the assessor for each valuation area shall make up for the valuation authority for that area, from the existing valuation rolls, a valuation roll as at 1st April 1996.

(2) Subsection (1) above does not apply to the assessors for the councils of the Borders, Dumfries and Galloway, Fife, Highland, Orkney Islands, Shetland Islands or Western Isles.

(3) In this section “existing valuation rolls” means the rolls made up under subsection (1) of section 1 of the 1975 Act (valuation roll and revaluation) and in force by virtue of subsection (2) of that section on the day on which this section comes into force in relation to the area of any existing valuation authority whose area includes any part of the area of the new valuation authority.

(4) Valuation rolls made up under this section shall be made up in the form prescribed for the purposes of section 1 of the 1975 Act; and subsections (4) and (5) of that section shall apply to such rolls as they apply to valuation rolls made up under subsection (1) of that section.

(5) An assessor shall make up a valuation roll under this section by extrapolating from the existing valuation rolls, and accordingly, except to the extent that alteration of the valuation roll may be required to be carried out under section 2 of the 1975 Act (alteration to valuation roll in force), shall not make any alteration of the entries in the roll for the purposes of a roll made up under this section.

29 Valuation appeal panels and committees

(1) With effect from 1st April 1996—

(a) valuation appeal panels and valuation appeal committees shall be constituted for each valuation area, in accordance with the provisions of this section and with regulations made by the Secretary of State, for the purpose of hearing and determining appeals and complaints—

(i) under the Valuation Acts; and

(ii) under sections 81(1) and 87(6) of the 1992 Act (council tax appeals); and

(b) every local valuation panel and valuation appeal committee constituted under section 4 of the 1975 Act shall cease to exist, and that section shall cease to have effect.

(2) A valuation appeal committee shall consist of members of a valuation appeal panel, and members of such a panel shall be appointed by the sheriff principal after such consultation as he thinks fit.

(3) Regulations under this section may make provision—

(a) for one valuation appeal panel to be appointed to serve two or more valuation areas;

(b) as to—

(i) the qualifications of members of a valuation appeal panel, and of any secretary or assistant secretary to be appointed to such a panel;

(ii) the maximum and minimum number of members of any such panel; and

(iii) the termination of the appointment of such members;

(c) with respect to the appointment of—

(i) one of those members as chairman of the panel;

(ii) such number of deputy chairmen as the sheriff principal considers appropriate; and

(iii) a secretary and, if the sheriff principal considers it necessary, an assistant secretary or assistant secretaries of the panel;

(d) as to—

(i) the number of valuation appeal committees to be formed from a valuation appeal panel;

(ii) the maximum and minimum number of members of such a committee; and

(iii) the manner in which members of a valuation appeal committee are to be selected from a valuation appeal panel;

(e) as to the terms and conditions of employment (including remuneration and allowances) of any secretary or assistant secretary of a valuation appeal panel;

(f) as to the payment to members of a valuation appeal panel and a valuation appeal committee of such allowances as the Secretary of State may determine;

(g) as to the defraying of any expenses incurred by a valuation appeal panel or committee; and

(h) for any other matter which appears to the Secretary of State to be necessary, expedient or appropriate for the purpose of the administration of valuation appeal panels and committees,

and regulations under this section may make different provision in respect of different valuation appeal areas or different valuation panels.