Local Democracy, Economic Development and Construction Act 2009

Part 1 Democracy and involvement

Chapter 1 Duties relating to promotion of democracy

Duties of principal local authorities

1 Democratic arrangements of principal local authorities

(1) A principal local authority has a duty to promote understanding of the following among local people—

(a) the functions of the authority;

(b) the democratic arrangements of the authority;

(c) how members of the public can take part in those democratic arrangements and what is involved in taking part.

(2) The duty under subsection (1)(c) includes in particular a duty to promote understanding of the following among local people—

(a) how to become a member of the principal local authority;

(b) what members of the principal local authority do;

(c) what support is available for members of the principal local authority.

(3) In this Chapter—

• “principal local authority” means—

  (a)

  a county or district council in England;

  (b)

  a London borough council;

  (c)

  the Common Council of the City of London in its capacity as a local authority;

  (d)

  a county or county borough council in Wales;

• “democratic arrangements”, in relation to any authority, means arrangements for members of the public to participate in, or influence, the making of decisions by the authority (including the making of decisions by the authority in partnership or conjunction with any other person);

• “local people”, in relation to a principal local authority, means people who live, work or study in the authority’s area.

2 Democratic arrangements of connected authorities

(1) A principal local authority has a duty to promote understanding of the following among local people—

(a) the functions of authorities which are connected with the principal local authority;

(b) the democratic arrangements of those authorities;

(c) how members of the public can take part in those democratic arrangements and what is involved in taking part.

(2) For the purposes of this section, each of the following is an authority which is connected with a principal local authority in England—

(a) any person mentioned in subsection (3) who acts or is established for an area which, or any part of which, coincides with or falls within the principal local authority’s area;

(b) the Homes and Communities Agency, so far as exercising functions in relation to the authority’s area;

(c) the Secretary of State, so far as exercising functions under sections 2 and 3 of the Offender Management Act 2007 (c. 21) in relation to the authority’s area;

(d) the managing or governing body of a maintained school in the principal local authority’s area;

(e) the managing or governing body of a further education institution in the principal local authority’s area;

(f) a National Health Service trust or NHS foundation trust which provides services at or from a hospital or other establishment or facility in the principal local authority’s area;

(g) where the principal local authority is a London borough council or the Common Council of the City of London, the Greater London Authority and Transport for London;

(h) where the principal local authority is a district council for an area for which there is a county council, the county council;

(i) where the principal local authority is a county council for an area for which there is a district council, the district council.

(3) The persons referred to in subsection (2)(a) are—

(a) a parish council;

(b) a parish meeting;

(c) a fire and rescue authority which is not a principal local authority;

(d) a National Park authority;

(e) the Broads Authority;

(f) a police authority;

(g) a chief officer of police;

(h) a joint waste authority established under section 207(1) of the Local Government and Public Involvement in Health Act 2007 (c. 28);

(i) a waste disposal authority established under section 10 of the Local Government Act 1985 (c. 51);

(j) an Integrated Transport Authority;

(k) an economic prosperity board established under section 88 or a combined authority established under section 103;

(l) a strategic health authority;

(m) a Primary Care Trust;

(n) a local probation board or a probation trust.

(4) For the purposes of this section each of the following is an authority which is connected with a principal local authority in Wales—

(a) any person mentioned in subsection (5) who acts for or is established for an area which, or any part of which, coincides with or falls within the principal local authority’s area;

(b) the Secretary of State, so far as exercising functions under sections 2 and 3 of the Offender Management Act 2007 (c. 21) in relation to the authority’s area;

(c) the managing or governing body of any maintained school in the principal local authority’s area;

(d) a National Health Service trust which provides services at or from a hospital or other establishment or facility in the principal local authority’s area.

(5) The persons referred to in subsection (4)(a) are—

(a) a community council;

(b) a community meeting;

(c) a fire and rescue authority which is not a principal local authority;

(d) a National Park authority;

(e) a police authority;

(f) a chief officer of police;

(g) a Local Health Board;

(h) a local probation board or a probation trust.

(6) The appropriate national authority may by order amend this section so as to—

(a) add any person who has functions of a public nature to the authorities which are connected with a principal local authority for the purposes of this section;

(b) cause any person to cease to be an authority which is connected with a principal local authority for those purposes;

(c) change the functions in respect of which any authority is connected with a principal local authority for those purposes.

(7) Before making an order under subsection (6) the appropriate national authority must consult such representatives of local government and such other persons (if any) as that authority considers appropriate.

(8) In this section—

• “further education institution” means an institution within the further education sector as defined by section 91(3) of the Further and Higher Education Act 1992 (c. 13);

• “maintained school” means—

  (a)

  a community, foundation or voluntary school (within the meaning of the School Standards and Framework Act 1998 (c. 31)),

  (b)

  a community or foundation special school (within the meaning of that Act), and

  (c)

  a maintained nursery school (as defined by section 22(9) of that Act).

(9) For the purposes of subsections (3)(g) and (5)(f), a chief officer of police acts and is established for the area of the chief officer’s police force.

3 Monitoring boards, courts boards and youth offending teams

(1) A principal local authority has a duty to promote understanding of the following among local people—

(a) the functions of the bodies mentioned in subsection (2);

(b) how a member of the public can become a member of, or take part in, the work of those bodies;

(c) what is involved in doing so.

(2) The bodies referred to in subsection (1) are—

(a) an independent monitoring board established under section 6 of the Prison Act 1952 (c. 52) for a prison in the principal local authority’s area;

(b) a visiting committee established under section 152 of the Immigration and Asylum Act 1999 (c. 33) for a removal centre in the principal local authority’s area;

(c) a courts board for an area which, or any part of which, coincides with or falls within the principal local authority’s area;

(d) a youth offending team for an area which, or any part of which, coincides with or falls within the principal local authority’s area.

4 Lay justices

(1) A principal local authority has a duty to promote understanding among local people of—

(a) the functions of a lay justice;

(b) how a member of the public can become a lay justice;

(c) what is involved in being a lay justice.

(2) In this section “lay justice” has the meaning given by section 9 of the Courts Act 2003 (c. 39).

Supplementary

5 Provision of information

(1) The duties in sections 2 and 3 do not apply to a principal local authority in relation to any other authority or body if or to the extent that, having been requested to do so, that authority or body has not made the necessary information available to the principal local authority.

(2) The duty in section 4 does not apply to a principal local authority if or to the extent that, having been requested to do so, the Lord Chancellor has not made the necessary information available to the principal local authority.

(3) For the purposes of this section the appropriate national authority may by order impose requirements relating to the provision of information to principal local authorities by—

(a) authorities which are connected with principal local authorities for the purposes of section 2, or

(b) the bodies referred to in section 3(2).

(4) Requirements imposed under subsection (3) may relate in particular to the provision of information by a particular authority or body or by authorities or bodies of a particular description.

(5) References in subsections (1) to (3) to principal local authorities do not include any district council for an area for which there is a county council.

(6) Where a principal local authority in England is the district council for an area for which there is a county council—

(a) the county council must, at least once a year, request any authority, body or other person in relation to which the district council is also under a duty under section 2, 3 or 4 for the information that the district council needs in order to discharge the duty in that section,

(b) the county council must pass on to the district council any information received by the county council under paragraph (a),

(c) if at any time the county council is notified of any changes to information previously passed on by it under paragraph (b), the county council must inform the district council accordingly, and

(d) the duties in sections 2, 3 and 4 do not apply to the district council in relation to any authority, body or other person if or to the extent that the county council has not made the necessary information available to the district council under this subsection.

6 Guidance

(1) The appropriate national authority may give guidance to principal local authorities in relation to the discharge of their duties under this Chapter.

(2) Guidance under this section—

(a) may be given generally or to one or more particular principal local authorities;

(b) may be different for different principal local authorities;

(c) must be published.

(3) Before giving guidance under this section the appropriate national authority must consult the principal local authorities to which it is given.

(4) A principal local authority must, in deciding how to discharge its duties under this Chapter, have regard to any guidance given to it under this section.

7 Isles of Scilly

The Secretary of State may by order apply the provisions of this Chapter to the Council of the Isles of Scilly, with or without modifications.

General

8 Orders

(1) An order under any provision of this Chapter is to be made by statutory instrument.

(2) A statutory instrument containing an order under any provision of this Chapter made by the Secretary of State is subject to annulment in pursuance of a resolution of either House of Parliament.

(3) A statutory instrument containing an order under any provision of this Chapter made by the Welsh Ministers is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

9 Interpretation

In this Chapter—

• “appropriate national authority” means—

  (a)

  the Secretary of State, in relation to principal local authorities in England;

  (b)

  the Welsh Ministers, in relation to principal local authorities in Wales;

• “principal local authority” has the meaning given by section 1;

• “democratic arrangements” has the meaning given by section 1;

• “local people” has the meaning given by section 1.

Chapter 2 Petitions to local authorities

Electronic petitions

10 Electronic petitions

(1) A principal local authority must provide a facility for making petitions in electronic form to the authority.

(2) A principal local authority must give reasons for not granting a request to use the facility provided by it under this section for the making of a petition.

(3) In this Chapter, “principal local authority” means—

(a) a county council in England;

(b) a district council in England;

(c) a London borough council;

(d) the Common Council of the City of London in its capacity as a local authority;

(e) the Council of the Isles of Scilly;

(f) a county or county borough council in Wales.

(4) In this Chapter, “e-petition facility” means a facility provided under this section.

Petition schemes

11 Petition schemes

(1) A principal local authority must make a scheme for the handling of petitions which are made to the authority and to which section 12 applies.

(2) In this Chapter “petition scheme” means a scheme under this section.

(3) A petition scheme must be approved at a meeting of the authority before it comes into force.

(4) A principal local authority must publish its petition scheme—

(a) on its website, and

(b) in such other manner as the authority considers appropriate for bringing the scheme to the attention of persons who live, work or study in its area.

(5) A principal local authority may at any time revise its petition scheme (and subsections (3) and (4) apply in relation to any scheme which is revised under this subsection).

(6) A principal local authority must comply with its petition scheme.

(7) Subject to that, nothing in this Chapter affects the powers or duties of a principal local authority in relation to any petition to it.

12 Petitions to which a scheme must apply

(1) This section applies to a petition made to a principal local authority which—

(a) requests the authority to take or cease to take action described in the petition,

(b) is signed by at least the specified number of persons who live, work or study in the authority’s area,

(c) is not a petition made under and in accordance with any other enactment, and

(d) if the petition is in electronic form, is made using the authority’s e-petition facility.

(2) In subsection (1)(b), “specified number” means the number specified for the purposes of this section in the principal local authority’s petition scheme.

(3) For the purposes of this Chapter—

(a) a signature counts if (and only if) the petition gives the signatory’s name and address (which may be an address where the signatory lives, works or studies);

(b) references to signing or signature, in the case of a petition made using a principal local authority’s e-petition facility, are to authentication in such manner as the authority’s petition scheme may specify.

13 Requirement to acknowledge

(1) A principal local authority’s petition scheme must secure the following results where a petition to which section 12 applies is made to the authority—

(a) the authority must send written acknowledgement of the petition to the petition organiser within the specified period;

(b) the acknowledgement must give such information about what the authority has done or proposes to do in response to the petition as the authority considers appropriate.

(2) In subsection (1)(a), “specified period” means the period specified for the purposes of this section in the scheme.

14 Requirement to take steps

(1) For the purposes of this Chapter, an “active petition”, in relation to a principal local authority, is a petition to which section 12 applies made to the authority where—

(a) the petition relates to a relevant matter, and

(b) the petition is not in the opinion of the authority vexatious, abusive or otherwise inappropriate to be dealt with as specified in this section.

(2) For the purposes of subsection (1)(a) “relevant matter” means—

(a) in the case of any principal local authority, a matter which relates to a function of the authority, and

(b) in the case of a relevant principal local authority, a matter which—

(i) does not relate to a function of the authority, but

(ii) relates to an improvement in the economic, social or environmental well-being of the authority’s area to which any of its partner authorities could contribute.

(3) In subsection (2)(b)—

(a) “relevant principal local authority” means a principal local authority in England other than a non-unitary district council;

(b) “partner authority”, in relation to such an authority, has the same meaning as in Chapter 1 of Part 5 of the Local Government and Public Involvement in Health Act 2007 (c. 28).

(4) For the purposes of subsection (1)(a)—

(a) the appropriate national authority may by order specify matters falling within subsection (2)(a) which are not to be regarded as relating to a function of the authority;

(b) the Secretary of State may by order specify matters falling within subsection (2)(b) which are not to be regarded as relevant matters.

(5) A principal local authority’s petition scheme must secure that, where an active petition is made to the authority, the authority must take one or more steps in response to the petition.

(6) A principal local authority’s petition scheme must secure that the steps which may be taken by the authority pursuant to subsection (5) include the following—

(a) giving effect to the request in the petition;

(b) considering the petition at a meeting of the authority;

(c) holding an inquiry;

(d) holding a public meeting;

(e) commissioning research;

(f) giving a written response to the petition organiser setting out the authority’s views about the request in the petition;

(g) in the case of a principal local authority operating executive arrangements, referring the petition to an overview and scrutiny committee of the authority;

(h) in the case of a principal local authority not operating executive arrangements, referring the petition to a committee of the authority with power under or by virtue of any enactment to review or scrutinise decisions made, or other action taken, in connection with the discharge of any functions of the authority.

(7) A principal local authority’s petition scheme must secure that where an active petition is made to the authority, the authority must also within the specified period—

(a) notify the petition organiser in writing of the steps the authority has taken or proposes to take in response to the petition and of the authority’s reasons for doing so, and

(b) publish that notification on the authority’s website unless the authority considers that in all the circumstances it would be inappropriate to do so.

(8) In subsection (7), “specified period” means the period specified for the purposes of this section in the petition scheme.

(9) A principal local authority’s petition scheme may—

(a) permit the notification referred to in subsection (7)(a) to be included in an acknowledgment sent pursuant to section 13(1);

(b) in a case where the authority takes the step referred to in subsection (6)(f), permit the notification referred to in subsection (7)(a) to be included in the response referred to in subsection (6)(f).

15 Requirement to debate

(1) For the purposes of this section, a “petition requiring debate”, in relation to a principal local authority, is an active petition made to the authority in relation to which the conditions in subsection (2) are met.

(2) Those conditions are that—

(a) the petition is signed by the specified number of persons who live, work or study in the authority’s area, and

(b) the petition is not a petition requiring an officer to be called to account by the authority (within the meaning of section 16).

(3) A principal local authority’s petition scheme must secure that, where a petition requiring debate is made to the authority, the steps taken by the authority under section 14(5) include or comprise the step of considering the petition at a meeting of the authority.

(4) In subsection (2)(a), “specified number” means the number specified for the purposes of this section in the principal local authority’s petition scheme.

16 Requirement to call officer to account

(1) For the purposes of this section, a petition “requiring an officer to be called to account” by a principal local authority is an active petition made to the authority in relation to which the conditions in subsection (2) are met.

(2) Those conditions are that—

(a) the petition is signed by the specified number of persons who live, work or study in the authority’s area,

(b) the petition requests that an officer of the authority (whether identified by name or description) be called to account at a public meeting of the authority,

(c) the officer is a relevant officer, and

(d) the petition gives grounds for the request which relate to the discharge of functions for which the officer is responsible.

(3) In subsection (2)(a), “specified number” means the number specified for the purposes of this section in the principal local authority’s petition scheme.

(4) In subsection (2)(c), “relevant officer” means an officer of the principal local authority of a description specified for the purposes of this subsection in the authority’s petition scheme.

(5) The descriptions of officer specified under subsection (4) must include—

(a) the statutory chief officers of the authority within the meaning of section 2 of the Local Government and Housing Act 1989 (c. 42),

(b) the non-statutory chief officers of the authority within the meaning of that section, and

(c) the head of the authority’s paid service.

(6) A principal local authority’s petition scheme must secure the results in subsection (7) where—

(a) a petition requiring an officer to be called to account by the authority is made to the authority, and

(b) the authority operates executive arrangements.

(7) The results in this subsection are that the steps taken by the authority under section 14(5) include or comprise the following steps—

(a) the exercise by an overview and scrutiny committee of the authority of its power under subsection (13)(a) of section 21 of the Local Government Act 2000 (c. 22) to require the relevant person to attend before it to answer questions;

(b) after the relevant person has attended before the overview and scrutiny committee, the making by the committee of a report or recommendations to the authority under subsection (2) of that section;

(c) the sending by the authority of a copy of that report or those recommendations to the petition organiser.

(8) A principal local authority’s petition scheme must secure the results in subsection (9) where—

(a) a petition requiring an officer to be called to account by the authority is made to the authority,

(b) the authority does not operate executive arrangements, and

(c) under or by virtue of any enactment the authority has a committee with power—

(i) to require officers of the authority to attend before it to answer questions, and

(ii) to make reports or recommendations to the authority.

(9) Those results are that the steps taken by the authority under section 14(5) include or comprise the following steps—

(a) the exercise by the committee referred to in subsection (8)(c) of its power to require the relevant person to attend before it to answer questions;

(b) after the relevant person has attended before the committee, the exercise by the committee of its power to make a report or recommendations to the authority;

(c) the sending by the authority of a copy of that report or those recommendations to the petition organiser.

(10) In each of subsections (7)(a) and (9)(a), “relevant person” means—

(a) the officer identified in the petition, or

(b) if the committee referred to in that subsection considers that for the purposes of addressing the concerns raised by the petition it would be more appropriate for another officer of the authority to attend before it, that officer.

17 Review of steps

(1) A principal local authority’s petition scheme must secure the results in subsection (2) where—

(a) pursuant to an active petition made to the authority, the authority gives notification further to section 14(7)(a), and

(b) the authority operates executive arrangements.

(2) Those results are—

(a) if the petition organiser so requests, an overview and scrutiny committee of the authority must under subsection (2)(a) of section 21 of the Local Government Act 2000 (c. 22) review the adequacy of the steps taken or proposed to be taken in response to the petition (or arrange, pursuant to subsection (3)(b) of that section, for the authority to do so);

(b) the authority must inform the petition organiser of the results of the review;

(c) the authority must publish those results on the authority’s website unless the authority considers that in all the circumstances it would be inappropriate to do so.

(3) A principal local authority’s petition scheme must secure the results in subsection (4) where—

(a) pursuant to an active petition made to the authority, the authority gives notification further to section 14(7)(a),

(b) the authority does not operate executive arrangements, and

(c) under or by virtue of any enactment the authority has a committee with power to review or scrutinise decisions made, or other action taken, in connection with the discharge of functions of the authority.

(4) Those results are—

(a) if the petition organiser so requests, the authority’s committee referred to in subsection (3)(c) must exercise the power referred to in that subsection to review the adequacy of the authority’s steps in response to the petition (or exercise any power of the committee to arrange for the authority to do so);

(b) the authority must inform the petition organiser of the results of the review;

(c) the authority must publish those results on the authority’s website unless the authority considers that in all the circumstances it would be inappropriate to do so.

18 Supplementary scheme provision

(1) A principal local authority’s petition scheme may, subject to the requirements of this Chapter, include such provision as the authority making it considers appropriate.

(2) That provision may in particular include—

(a) provision relating to petitions which are not petitions to which section 12 applies;

(b) provision for handling a petition made to more than one principal local authority;

(c) provision for handling a petition made to one principal local authority which relates to functions of another principal local authority.

Supplementary

19 Powers of appropriate national authority

(1) The appropriate national authority may by order make provision as to what a petition scheme must or must not contain.

(2) The appropriate national authority may give guidance to one or more principal local authorities in relation to the discharge of their functions under this Chapter.

(3) Provision in an order under subsection (1) or guidance under subsection (2) may relate in particular, in the case of a petition scheme, to—

(a) the number to be specified pursuant to section 12(2), 15(4) or 16(3),

(b) the period to be specified pursuant to section 13(2) or 14(8), or

(c) the officers to be specified pursuant to section 16(4).

(4) Guidance under subsection (2) may include a model petition scheme.

(5) A principal local authority may for the purpose of the discharge of its duties under this Chapter, adopt, with or without modification, the provisions of a model petition scheme under subsection (4).

(6) The appropriate national authority may direct a principal local authority to make such revisions to its petition scheme as may be specified in the direction (and subsection (4) of section 11 applies in relation to any petition scheme revised under this subsection).

(7) The powers conferred by this section are subject to the requirements of this Chapter.

20 Handling of petitions by other bodies

(1) The appropriate national authority may by order make provision for the handling of petitions by any body to which this section applies.

(2) The bodies to which this section applies are—

(a) a parish council in England;

(b) a community council in Wales;

(c) the Greater London Authority;

(d) the London Development Agency;

(e) Transport for London;

(f) an Integrated Transport Authority;

(g) an economic prosperity board established under section 88 or a combined authority established under section 103;

(h) a National Park authority;

(i) any body specified in section 21(1)(f) to (n) of the Local Government and Housing Act 1989 (c. 42).

(3) An order under this section may be made in relation to—

(a) one or more specified bodies to which this section applies, or

(b) bodies to which this section applies of a particular description.

(4) The provision which may be made by an order under this section includes provision applying, with or without modification, any provision made under this Chapter in relation to the handling of petitions by principal local authorities.

General

21 Orders

(1) Orders under this Chapter are to be made by statutory instrument.

(2) A statutory instrument containing an order under this Chapter made by the Secretary of State, other than an order referred to in subsection (3), is subject to annulment in pursuance of a resolution of either House of Parliament.

(3) The Secretary of State may not make a statutory instrument containing an order under section 20 which relates to the handling of petitions by a parish council in England unless a draft of the instrument containing the order has been laid before, and approved by, a resolution of each House of Parliament.

(4) A statutory instrument containing an order under this Chapter made by the Welsh Ministers, other than an order referred to in subsection (5), is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(5) The Welsh Ministers may not make a statutory instrument containing an order under section 20 which relates to the handling of petitions by a community council in Wales unless a draft of the instrument containing the order has been laid before, and approved by, a resolution of the National Assembly for Wales.

22 Interpretation

(1) In this Chapter—

• “active petition” has the meaning given by section 14(1);

• “appropriate national authority” means—

  (a)

  the Secretary of State, in relation to a principal local authority or other authority in England;

  (b)

  the Welsh Ministers, in relation to a principal local authority or other authority in Wales;

• “e-petition facility” has the meaning given by section 10(4);

• “executive arrangements” has the same meaning as in Part 2 of the Local Government Act 2000 (c. 22);

• “non-unitary district council” means a district council for an area which is part of the area of a county council;

• “overview and scrutiny committee”, in relation to a principal local authority operating executive arrangements, means a committee appointed by the authority under section 21 of the Local Government Act 2000;

• “petition organiser”, in relation to a petition made to a principal local authority, means—

  (a)

  the person designated in the petition as the person with whom the authority may deal in relation to the petition, or

  (b)

  such other person as agrees with the authority to be the person with whom the authority may deal in relation to the petition;

• “petition scheme” has the meaning given by section 11(2);

• “principal local authority” has the meaning given by section 10(3).

(2) For the purposes of this Chapter, the date on which a petition using a principal local authority’s e-petition facility is made to the authority is such date after the petition is first opened for signature as may be—

(a) determined by the petition organiser, or

(b) in the absence of such determination, specified in the scheme.

Chapter 3 Involvement in functions of public authorities

23 Duty of public authorities to secure involvement

(1) Where an authority to which this section applies considers it appropriate for representatives of interested persons (or of interested persons of a particular description) to be involved in the exercise of any of its relevant functions by being—

(a) provided with information about the exercise of the function,

(b) consulted about the exercise of the function, or

(c) involved in another way,

it must take such steps as it considers appropriate to secure that such representatives are involved in the exercise of the function in that way.

(2) This section applies to the following authorities—

(a) the Arts Council of England;

(b) the English Sports Council;

(c) the Environment Agency;

(d) the Health and Safety Executive;

(e) the Historic Buildings and Monuments Commission for England;

(f) the Homes and Communities Agency;

(g) the Museums, Libraries and Archives Council;

(h) Natural England;

(i) a regional development agency;

(j) a police authority in England;

(k) a chief officer of police for a police force in England;

(l) a local probation board for an area in England or a probation trust (other than a Welsh probation trust as defined by paragraph 13(6) of Schedule 1 to the Offender Management Act 2007 (c. 21));

(m) a youth offending team for an area in England;

(n) the Secretary of State.

(3) In this section, “relevant functions” means—

(a) in relation to an authority specified in subsection (2)(a) to (m), all the functions of the authority except in so far as those functions are not exercisable in or in relation to England;

(b) in relation to the Secretary of State, the Secretary of State’s functions under—

(i) section 2 of the Employment and Training Act 1973 (c. 50) (arrangements with respect to obtaining etc employment or employees), and

(ii) sections 2 and 3 of the Offender Management Act 2007 (c. 21) (responsibility for ensuring the provision of probation services throughout England and Wales),

except in so far as those functions are not exercisable in relation to England.

(4) Subsection (1) does not require an authority to take a step—

(a) if the authority does not have the power to take the step apart from this section, or

(b) if the step would be incompatible with any duty imposed on the authority apart from this section.

(5) Subsection (1) does not apply in such cases as the Secretary of State may by order made by statutory instrument specify.

(6) A statutory instrument containing an order under subsection (5) is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

• “interested person”, in relation to a relevant function, means a person who is likely to be affected by, or otherwise interested in, the exercise of the function;

• “representative” means, in relation to interested persons or a description of interested person, a person who appears to an authority to which this section applies to be representative of the interested persons;

• “regional development agency” means a development agency established by section 1 of the Regional Development Agencies Act 1998 (c. 45).

(8) The Secretary of State’s functions under this section by virtue of subsection (3)(b)(ii) are functions to which section 2(1)(c) of the Offender Management Act 2007 (c. 21) (functions to be performed through arrangements under section 3 of that Act) applies.

24 Duty of public authorities to secure involvement: guidance

(1) The Secretary of State may give guidance to authorities to which section 23 applies (other than the Secretary of State) in relation to the discharge of their duties under that section.

(2) Guidance under this section—

(a) may be given generally or to one or more particular authorities;

(b) may be different for different authorities;

(c) must be published.

(3) Before giving guidance under this section the Secretary of State must consult the authority or authorities to which it is given.

(4) An authority to which section 23 applies must, in deciding how to fulfil its duties under that section, have regard to any guidance given to it under this section.

Chapter 4 Housing

25 Establishment and assistance of bodies representing tenants etc

(1) The Secretary of State may—

(a) establish a body with the functions specified in subsections (2) to (5);

(b) give financial or other assistance to any person for the purpose of establishing a body with those functions;

(c) give financial or other assistance to any body appearing to the Secretary of State to have those functions for the purpose of the carrying out by the body of any or all of those functions.

(2) The function in this subsection is that of representing, or facilitating the representation of, the views and interests of—

(a) tenants of social housing in England, or

(b) tenants of social housing and other residential property in England.

(3) The function in this subsection is that of conducting or commissioning research into issues affecting—

(a) tenants of social housing in England, or

(b) tenants of social housing and other residential property in England.

(4) The function in this subsection is that of promoting the representation by other bodies of—

(a) tenants of social housing in England or any part of England, or

(b) tenants of social housing and other residential property in England or any part of England.

(5) It is immaterial for the purposes of subsection (1)(a) to (c) that a body may also have other functions.

(6) Assistance under this section may be given in such form (including financial assistance by way of grant, loan or guarantee) as the Secretary of State considers appropriate.

(7) Assistance under this section may be given on such terms as the Secretary of State considers appropriate.

(8) The terms on which assistance under this section may be given include, in particular, provision as to the circumstances in which it must be repaid or otherwise made good to the Secretary of State and the manner in which that must be done.

(9) A person or body to whom assistance is given under this section must comply with any terms on which it is given.

(10) In this section—

• “social housing” has the meaning given by section 68 of the Housing and Regeneration Act 2008 (c. 17);

• “tenant”, in relation to social housing, has the meaning given by section 275 of that Act.

26 Consultation of bodies representing tenants etc

(1) The Housing and Regeneration Act 2008 (c. 17) is amended as follows.

(2) After section 278 insert—

“278A Power to nominate for consultation purposes

(1) The Secretary of State may for the purposes of the following provisions of this Part nominate a body appearing to the Secretary of State to represent the interests of tenants of social housing in England—

(a) section 112(4);

(b) section 174(5);

(c) section 196(1);

(d) section 197(4);

(e) section 216.

(2) The Secretary of State must notify the regulator of any nomination (or withdrawal of any nomination) under this section.”

(3) In each of sections 112(4) (consultation about criteria for registration of providers of social housing) and 174(5) (consultation about disposal of dwellings by registered providers of social housing)—

(a) after paragraph (b) (and before the “and” following that paragraph) insert—

“(ba) any body for the time being nominated under section 278A,”;

(b) in paragraph (c), after “one or more” insert “other”.

(4) In section 196(1) (consultation about standards etc for registered providers of social housing)—

(a) after paragraph (b) insert—

“(ba) any body for the time being nominated under section 278A,”;

(b) in paragraph (c), after “one or more” insert “other”.

(5) In section 197(4) (consultation about directions relating to standards)—

(a) after paragraph (d) insert—

“(da) any body for the time being nominated under section 278A,”;

(b) in paragraph (e), after “one or more” insert “other”.

(6) In section 216 (consultation about guidance to registered providers of social housing)—

(a) after paragraph (a) insert—

“(aa) any body for the time being nominated under section 278A,”;

(b) in paragraph (b), after “one or more” insert “other”.

Chapter 5 Local freedoms and honorary titles

27 Local freedoms

(1) The Local Government Act 1972 (c. 70) is amended as follows.

(2) In section 248 (freemen and inhabitants of existing boroughs), after subsection (1) insert—

“(1A) Where the son of a freeman of a city or town may claim to be admitted as a freeman of that place, the daughter of a freeman may likewise claim to be so admitted.

(1B) The son or daughter of a freeman of a city or town shall be admitted as a freeman whether born before or after the admission, as a freeman, of his or her freeman parent and wherever he or she was born.

(1C) In subsections (1A) and (1B) “freeman” excludes a freeman of the City of London.”

28 Power to amend law relating to local freedoms

(1) The Local Government Act 1972 (c. 70) is amended as follows.

(2) In section 248 (freemen and inhabitants of existing boroughs), after subsection (1C) insert—

“(1D) Schedule 28A (amendment of laws relating to freedom of city or town) shall have effect.”

(3) Before Schedule 29 insert—

“Schedule 1 Amendment of laws relating to freedoms of cities and towns

Introductory

1 (1) This Schedule makes provision for the laws relating to freedom of a city or town to be amended by, or pursuant to, a resolution of persons admitted to that freedom.

(2) The powers conferred by this Schedule are without prejudice to any other power to amend the law relating to freedom of a city or town.

(3) In this Schedule—

• “appropriate national authority” means—

  (a)

  the Secretary of State, in relation to a city or town in England;

  (b)

  the Welsh Ministers, in relation to a city or town in Wales;

• “enactment” includes in particular—

  (a)

  a royal charter or other instrument made under the royal prerogative;

  (b)

  any instrument made under an enactment.

Powers to amend law in respect of women and civil partners

2 (1) The purposes of this paragraph are—

(a) to provide for a woman to have the right to be admitted to freedom of a city or town in any or all circumstances where a man has that right;

(b) to enable a woman admitted to the freedom of a city or town (whether pursuant to this Schedule or otherwise) to use the title “freewoman”;

(c) to put a civil partner or surviving civil partner of a person admitted to freedom of a city or town in the same position as a spouse or surviving spouse of such a person.

(2) The appropriate national authority may by order amend an Act for any purpose of this paragraph, if the amendment is proposed by a qualifying resolution.

(3) A qualifying resolution may amend—

(a) any enactment other than an Act, or

(b) the law established by custom,

for any purpose of this paragraph.

(4) An amendment may not be made under this paragraph for the purpose specified in sub-paragraph (1)(a) if the effect of the amendment in any case or circumstances would be to deprive a man of the right to be admitted to freedom of a city or town.

(5) A provision of a public general Act may not be amended under this paragraph unless the provision relates only to—

(a) a particular city or town, or

(b) a specified group of cities or towns.

Power to amend royal charters

3 (1) Her Majesty may by Order in Council amend the law relating to rights of admission to freedom of a city or town where—

(a) the law is contained in a royal charter; and

(b) the amendment is proposed in a qualifying resolution.

(2) It is immaterial for the purposes of sub-paragraph (1) above whether the amendment is one which could be made under paragraph 2(3) above.

(3) An Order in Council under this paragraph is not a statutory instrument for the purposes of the Statutory Instruments Act 1946.

Powers to amend laws established by custom

4 (1) A qualifying resolution may amend the law relating to rights of admission to freedom of a city or town where the law is established by custom.

(2) The power in sub-paragraph (1) above does not include power to make an amendment which could be made under paragraph 2(3) above.

Consequential amendments

5 (1) The power to make an amendment under paragraph 2(2) above includes power (exercisable in the same way and subject to the same conditions) to make consequential amendments to—

(a) any enactment, or

(b) the law established by custom.

(2) The power to make an amendment under paragraph 2(3), 3 or 4 above includes power (exercisable in the same way and subject to the same conditions) to make consequential amendments to—

(a) any enactment other than an Act, or

(b) the law established by custom.

(3) Where an amendment is made under paragraph 2(3), 3 or 4 above, the appropriate national authority may by order make consequential amendments to any Act, if the consequential amendments are proposed by a qualifying resolution.

6 (1) Where by virtue of an amendment under paragraph 2, 3 or 4 above a person has the right of admission to freedom of city or town, the following amendments in particular are to be regarded as consequential for the purposes of this Schedule—

(a) an amendment for the purpose of putting that person in the same position as any other person admitted to that freedom;

(b) an amendment for the purpose of putting a person who by marriage, civil partnership, descent, employment or otherwise is or has been related to or associated with that person in the same position as a person correspondingly related to or associated with any other person admitted to that freedom;

(c) an amendment for the purpose of putting a person who is or has been related by marriage or civil partnership to a surviving spouse or civil partner or child of that person in the same position as a person correspondingly related to the surviving spouse or civil partner or child of any other person admitted to that freedom.

(2) In determining for the purposes of sub-paragraph (1) above whether one relationship corresponds with another, differences of gender are to be ignored.

Qualifying resolutions

7 (1) For the purposes of this Schedule, a “qualifying resolution” is a resolution—

(a) in relation to which the requirements of paragraph 8 below are complied with; and

(b) which is passed in accordance with paragraph 9 below.

8 (1) The requirements of this paragraph in relation to a resolution are as follows.

(2) The resolution must be proposed by three or more eligible persons.

(3) Voting on the resolution is to be by postal ballot.

(4) The proposers must make reasonable endeavours to secure that each eligible person is sent—

(a) a notice of the ballot, and

(b) a ballot paper.

(5) The notice must state—

(a) the resolution proposed,

(b) the purpose of the resolution, and

(c) the date by which ballot papers must be returned (the “voting date”).

(6) Any notice and ballot paper must be sent at least 28 days before the voting date.

(7) For the purposes of this paragraph, a notice or ballot paper is sent to a person on the day it is posted by first class post to the last known address of that person.

9 (1) A resolution is passed in accordance with this paragraph if—

(a) it is passed by a majority of the eligible persons voting on the resolution,

(b) the number of eligible persons voting on the resolution is at least 10% of the number of eligible persons to whom notice is sent under paragraph 8(4) above, and “the resolution is notified to the relevant council within six weeks from the voting date.

(2) For the purposes of sub-paragraph (1)(c) above, the resolution is notified by delivery of the following documents to the relevant council—

(a) a copy of the resolution;

(b) a copy of the notice sent under paragraph 8(4) above;

(c) a statement in writing of the names of the eligible persons to whom the notice was sent;

(d) a statement in writing of the number of eligible persons who voted on the resolution and of the number who voted in favour of it;

(e) all ballot papers returned in accordance with the notice.

(3) The relevant council must keep the documents delivered under sub-paragraph (2) above, but need not keep those within paragraphs (b) to (e) of that sub-paragraph if it considers that it is no longer reasonably necessary to do so.

10 In paragraphs 8 and 9 above—

• “eligible person” means a person whose name is on the roll of persons admitted to the freedom of the city or town concerned kept under section 248(2) above;

• “relevant council” means—

  (a)

  in relation to a city or town in England—

  (i)

  the district council in whose area the city or town is situated, or

  (ii)

  if the city or town is not in the area of a district council, the county council in whose area it is situated;

  (b)

  in relation to a city or town in Wales, the principal council in whose area the city or town is situated.

Order-making powers: supplementary

11 (1) A statutory instrument containing an order under this Schedule which contains an amendment to a public general Act is subject to annulment—

(a) by either House of Parliament, in the case of an order made by the Secretary of State;

(b) by the National Assembly for Wales, in the case of an order made by the Welsh Ministers.”

(4) In section 248—

(a) in subsection (1), after “this section”, in both places, insert “and Schedule 28A”;

(b) in subsection (2), for “freemen” substitute “persons admitted to the freedom”;

(c) in subsection (3)—

(i) for “as a freeman” substitute “to the freedom”;

(ii) for “his”, in both places, substitute “the person’s”;

(iii) for “freemen” substitute “persons admitted to the freedom”;

(d) in subsection (4), in paragraphs (a), (b) and (c), for “freeman” substitute “person admitted to the freedom”.

29 Honorary titles

(1) Section 249 of the Local Government Act 1972 (c. 70) (honorary aldermen and freemen) is amended as follows.

(2) In the heading, for “Honorary aldermen and freemen” substitute “Honorary titles”.

(3) In subsection (1) (power of principal councils to confer title of honorary aldermen), after “honorary aldermen” insert “or honorary alderwomen”.

(4) In subsection (2)—

(a) after “honorary alderman” insert “or honorary alderwoman”;

(b) after “as alderman” insert “or alderwoman”;

(c) after “as an alderman” insert “or alderwoman”.

(5) In subsection (4), after “honorary alderman” insert “or honorary alderwoman”.

(6) After that subsection insert—

“(4A) A principal council may spend such reasonable sum as they think fit for the purpose of presenting an address, or a casket containing an address, to a person on whom they have conferred the title of honorary alderman or honorary alderwoman.”

(7) For subsections (5) to (9) (honorary freemen) there is substituted—

“(5) Subject as follows, a relevant authority may admit to be honorary freemen or honorary freewomen of the place or area for which it is the authority—

(a) persons of distinction, and

(b) persons who have, in the opinion of the authority, rendered eminent services to that place or area.

(6) In this section “relevant authority” means—

(a) a principal council;

(b) a parish or community council;

(c) charter trustees in England constituted—

(i) under section 246 of the Local Government Act 1972,

(ii) by the Charter Trustees Regulations 1996 (SI 1996/263), or

(iii) under Part 1 of the Local Government and Public Involvement in Health Act 2007.

(7) The power in subsection (5) above is exercisable by resolution of the relevant authority.

(8) A resolution under subsection (7) above must be passed—

(a) at a meeting of the relevant authority which is specially convened for the purpose and where notice of the object of the meeting has been given; and

(b) by not less than two-thirds of the members of the relevant authority (or, in the case of charter trustees, of the trustees) who vote on it.

(9) A relevant authority may spend such reasonable sum as it thinks fit for the purpose of presenting an address or a casket containing an address to a person on whom the authority has conferred the title of honorary freeman or honorary freewoman under subsection (5) above.

(10) The admission of a person as honorary freeman or honorary freewoman does not confer on that person any of the rights referred to in section 248(4) above.”

Chapter 6 Politically restricted posts

30 Politically restricted posts

(1) The Local Government and Housing Act 1989 (c. 42) is amended as follows.

(2) In section 2 (politically restricted posts), in subsection (2) omit—

(a) paragraphs (a) and (b), and

(b) in paragraph (c), the words “not falling within paragraph (a) or (b) above”.

(3) In section 3 (grant and supervision of exemptions from political restriction: Scotland and Wales), in subsection (3) omit—

(a) in paragraph (a), the word “and”,

(b) paragraph (b), and

(c) the words from “and it shall” to the end of the subsection.

(4) In section 3A (grant and supervision of exemptions from political restriction: England), in subsection (2) omit—

(a) in paragraph (a), the word “and”,

(b) paragraph (b), and

(c) the words from “and the relevant” to the end of the subsection.

Part 2 Local authorities: governance and audit

Chapter 1 Governance

31 Scrutiny officers

In the Local Government Act 2000 (c. 22), after section 21 insert—

“21ZA Scrutiny officers

(1) Subject as follows, a local authority in England must designate one of their officers to discharge the functions in subsection (2).

(2) Those functions are—

(a) to promote the role of the authority’s overview and scrutiny committee or committees;

(b) to provide support to the authority’s overview and scrutiny committee or committees and the members of that committee or those committees;

(c) to provide support and guidance to—

(i) members of the authority,

(ii) members of the executive of the authority, and

(iii) officers of the authority,

in relation to the functions of the authority’s overview and scrutiny committee or committees.

(3) An officer designated by a local authority under this section is to be known as the authority’s “scrutiny officer”.

(4) A local authority may not designate any of the following under this section—

(a) the head of the authority’s paid service designated under section 4 of the Local Government and Housing Act 1989;

(b) the authority’s monitoring officer designated under section 5 of that Act;

(c) the authority’s chief finance officer, within the meaning of that section.

(5) The duty in subsection (1) does not apply to a district council for an area for which there is a county council.

(6) In this section, references to an overview and scrutiny committee include any sub-committee of that committee.”

32 Joint overview and scrutiny committees

(1) In the Local Government and Public Involvement in Health Act 2007 (c. 28), for section 123 (joint overview and scrutiny committees: local improvement targets) substitute—

“123 Joint overview and scrutiny committees

(1) The Secretary of State may by regulations make provision under which any two or more local authorities in England may—

(a) appoint a joint committee (a “joint overview and scrutiny committee”), and

(b) arrange for the committee to exercise any functions in subsection (2).

(2) The functions in this subsection are functions of making reports or recommendations to—

(a) any of the local authorities appointing the committee (the “appointing authorities”), or

(b) if any of the appointing authorities is a non-unitary district council, the related county council,

about any matter which is not an excluded matter.

(3) In subsection (2) “excluded matter” means any matter with respect to which a crime and disorder committee could make a report or recommendations—

(a) by virtue of subsection (1)(b) of section 19 of the Police and Justice Act 2006 (local authority scrutiny crime and disorder matters), or

(b) by virtue of subsection (3)(a) of that section.

(4) In subsection (2) references to making reports or recommendations to a local authority include, in the case of a local authority operating executive arrangements under Part 2 of the Local Government Act 2000, making reports or recommendations to its executive.

(5) Regulations under this section may in particular—

(a) provide for arrangements to be made only in circumstances, or subject to conditions or limitations, specified in the regulations;

(b) in relation to joint overview and scrutiny committees, make provision applying, or corresponding to, any provision of—

(i) section 21(4) and (6) to (12) of the Local Government Act 2000,

(ii) sections 21A to 21D of that Act, or

(iii) section 246 of, and Schedule 17 to, the National Health Service Act 2006,

with or without modifications;

(c) make provision as to information which an associated authority of any appointing authority must provide, or may not disclose, to a joint overview and scrutiny committee (or, if the regulations make provision for the appointment of sub-committees of such a committee, to such a sub-committee).

(6) In subsection (5)(c) “associated authority”, in relation to any appointing authority, means—

(a) in the case of an appointing authority which is a non-unitary district council—

(i) the related county council, and

(ii) any person who is a partner authority in relation to the related county council;

(b) in the case of any other appointing authority, any person who is a partner authority in relation to the appointing authority.

(7) In subsection (6) “partner authority” has the same meaning as in Chapter 1 of this Part except that it does not include a police authority or a chief officer of police.

(8) Regulations under this section may not make provision of a kind mentioned in subsection (5)(c) with respect to information in respect of which provision may be made in exercise of the power conferred by section 20(5)(c) or (d) of the Police and Justice Act 2006 (guidance and regulations regarding crime and disorder matters).

(9) Any local authority and any joint overview and scrutiny committee must, in exercising or deciding whether to exercise any function conferred on it by or under this section, have regard to any guidance issued by the Secretary of State.

(10) In this section—

• “local authority” has the same meaning as in Part 2 of the Local Government Act 2000;

• “non-unitary district council” means a district council for a district in a county for which there is a county council (and the “related county council”, in relation to a non-unitary district council, means that county council).”

(2) In section 21 of the Local Government Act 2000 (c. 22) (overview and scrutiny committees), in subsection (2A)(e), for the words from “(joint” to the end substitute “(joint overview and scrutiny committees) appointed by two or more local authorities including the authority concerned”.

33 Powers of National Assembly for Wales

(1) Schedule 5 to the Government of Wales Act 2006 (c. 32) (Assembly measures) is amended as follows.

(2) In Part 1, after the heading “Field 12: local government”, after the entry relating to Matter 12.5 insert—

• “Matter 12.6

  Arrangements by principal councils with respect to the discharge of their functions, including executive arrangements.

  This matter does not include—

  (a)

  direct elections to executives of principal councils, or

  (b)

  the creation of a form of executive requiring direct elections.

  For the purposes of this matter—

  (a)

  “executive arrangements” has the same meaning as in Part 2 of the Local Government Act 2000;

  (b)

  “principal council” means a county or county borough council;

  (c)

  “direct elections” means elections by local government electors (within the meaning of section 270(1) of the Local Government Act 1972).”

(3) In that Part, after the entry relating to Matter 12.6 (as inserted by subsection (2) above) insert—

• “Matter 12.7

  Committees of principal councils with functions of—

  (a)

  review or scrutiny, or

  (b)

  making reports or recommendations.

  This matter does not include committees under section 19 of the Police and Justice Act 2006 (crime and disorder committees).

  For the purposes of this matter “principal council” means a county or county borough council.”

Chapter 2 Mutual insurance

34 Mutual insurance

(1) Subject as follows, a qualifying authority may —

(a) become a member of a body corporate—

(i) all of whose objects fall within the objects specified in subsection (2), and

(ii) all of whose members are qualifying authorities, and

(b) do anything that is required by, or is conducive or incidental to, membership of any such body.

(2) The objects referred to in subsection (1)(a)(i) are—

(a) to provide insurance, in relation to risks of any description, to—

(i) qualifying authorities who are members of the body corporate, and

(ii) persons prescribed in regulations made by the appropriate national authority,

(b) to enter into arrangements under which such insurance is provided to—

(i) qualifying authorities who are members of the body corporate, and

(ii) persons prescribed in regulations made by the appropriate national authority, and

(c) to do anything that is required by, or is conducive or incidental to, the provision of any such insurance or entering into any such arrangements.

(3) The power of a qualifying authority under subsection (1)(b) includes in particular power—

(a) to pay premiums and make other payments to the body corporate;

(b) to agree to make any such payments;

(c) to assume financial obligations in relation to persons prescribed for the purposes of subsection (2)(a)(ii) or (b)(ii).

(4) The appropriate national authority may by regulations impose restrictions or conditions on the exercise of any power conferred on a qualifying authority by subsection (1).

(5) A qualifying authority must, in exercising the powers conferred by subsection (1), have regard to—

(a) any guidance issued by the appropriate national authority, and

(b) any guidance or document specified in regulations made by the appropriate national authority.

(6) The appropriate national authority may by regulations amend this Chapter for the purposes of changing the authorities which are for the time being qualifying authorities for the purposes of this section.

35 Mutual insurance: supplementary

(1) This section applies for the purposes of section 34.

(2) A qualifying authority is—

(a) a county council in England;

(b) a district council in England;

(c) a London borough council;

(d) the Common Council of the City of London in its capacity as a local authority;

(e) the Greater London Authority so far as it exercises its functions through the Mayor;

(f) the Council of the Isles of Scilly;

(g) a county council in Wales;

(h) a county borough council in Wales;

(i) a National Park authority;

(j) the Broads Authority;

(k) a police authority;

(l) a fire and rescue authority not falling within paragraphs (a) to (h);

(m) a joint waste authority established under section 207(1) of the Local Government and Public Involvement in Health Act 2007 (c. 28);

(n) a waste disposal authority established under section 10 of the Local Government Act 1985 (c. 51);

(o) an Integrated Transport Authority;

(p) Transport for London;

(q) the London Development Agency;

(r) an economic prosperity board established under section 88 or a combined authority established under section 103.

(3) The “appropriate national authority” means—

(a) the Secretary of State, in relation to England;

(b) the Welsh Ministers, in relation to Wales.

(4) Regulations under section 34 are to be made by statutory instrument.

(5) A statutory instrument containing regulations under subsection (2), (4) or (5)(b) of that section is subject to annulment in pursuance of a resolution of—

(a) either House of Parliament (in the case of regulations made by the Secretary of State);

(b) the National Assembly for Wales (in the case of regulations made by the Welsh Ministers).

(6) A statutory instrument containing regulations under subsection (6) of that section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of—

(a) each House of Parliament (in the case of regulations made by the Secretary of State);

(b) the National Assembly for Wales (in the case of regulations made by the Welsh Ministers).

Chapter 3 Audit of entities connected with local authorities

Preliminary

36 Overview

(1) This Chapter makes provision for an audit authority to appoint a person to carry out audit functions in relation to a relevant entity in circumstances where it appears to the authority that the entity is or will be a qualifying English or Welsh local authority entity.

(2) For the purposes of this Chapter, each of the following is an “audit authority”—

(a) the Audit Commission;

(b) the Auditor General for Wales.

(3) In this Chapter, “relevant entity” means—

(a) a company,

(b) a limited liability partnership, or

(c) an industrial and provident society.

(4) In this Chapter, “qualifying English local authority entity” means a relevant entity which—

(a) is connected with a local authority in England, and

(b) meets such other conditions as the Secretary of State may by regulations specify.

(5) In this Chapter, “qualifying Welsh local authority entity” means a relevant entity which—

(a) is connected with a local authority in Wales, and

(b) meets such other conditions as the Welsh Ministers may by regulations specify.

(6) In this Chapter, “local authority” means any body which—

(a) is a local authority for the purposes of section 21 of the Local Government Act 2003 (c. 26) (see subsection (6) of that section and section 23 of that Act), and

(b) is required to prepare statements of accounts by regulations made under section 27 of the Audit Commission Act 1998 (c. 18) or section 39 of the Public Audit (Wales) Act 2004 (c. 23).

37 Notification duties of local authorities

(1) Where it comes to the attention of a local authority in England that—

(a) a relevant entity which is connected with the authority meets the conditions referred to in section 36(4)(b),

(b) a relevant entity which is connected with the authority has ceased to meet those conditions, or

(c) a relevant entity which meets those conditions has ceased to be connected with the local authority,

the authority must notify the entity and the Audit Commission accordingly.

(2) Where it comes to the attention of a local authority in Wales that—

(a) a relevant entity which is connected with the authority meets the conditions referred to in section 36(5)(b),

(b) a relevant entity which is connected with the authority has ceased to meet those conditions, or

(c) a relevant entity which meets those conditions has ceased to be connected with the local authority,

the authority must notify the entity and the Auditor General for Wales accordingly.

(3) Notification under this section must be within the period of 21 days beginning with the day on which the matter comes to the attention of the local authority.

Power to appoint auditor

38 Power to appoint auditor

(1) Subject to this Chapter, an audit authority may appoint a person to carry out audit functions in accordance with this Chapter in relation to a relevant entity.

(2) An appointment under this section is to be for a financial year of the entity.

(3) An appointment under this section must be made—

(a) before the start of the financial year to which it relates, or

(b) in the case of an appointment for the first financial year of the entity, before whichever is the earlier of—

(i) the end of that financial year, and

(ii) the end of the period of three months beginning with the day on which the audit authority receives notification in relation to the entity under section 37(1)(a) or (2)(a).

(4) The Audit Commission may make an appointment under this section if (and only if) it appears to the Audit Commission that—

(a) the entity will be a qualifying English local authority entity at the start of the financial year for which the appointment is made, or

(b) in the case of an appointment for the first financial year of the entity, the entity is a qualifying English local authority entity when the appointment is made.

(5) The Auditor General for Wales may make an appointment under this section if (and only if) it appears to the Auditor General that—

(a) the entity will be a qualifying Welsh local authority entity at the start of the financial year for which the appointment is made, or

(b) in the case of an appointment for the first financial year of the entity, the entity is a qualifying Welsh local authority entity when the appointment is made.

(6) Before making an appointment under this section in relation to an entity the appointing audit authority must consult the entity.

(7) Where one audit authority (“the first audit authority”) proposes to appoint a person under this section in relation to an entity for a financial year in circumstances where the other audit authority could also make an appointment under this section in relation to that entity for that year—

(a) the first audit authority must consult the other audit authority, and

(b) the first audit authority may not make the appointment for that entity for that year if the other audit authority has already done so.

(8) After making an appointment under this section in relation to an entity the appointing audit authority must notify the local authority with which the entity is connected.

39 Power to appoint replacement auditor

(1) Where a person appointed by an audit authority under this Chapter in relation to an entity for a financial year dies, is dismissed or is unable or unwilling to act, the audit authority may (subject to this Chapter) appoint a replacement in relation to that entity for that financial year.

(2) Before making an appointment under this section the audit authority must consult the entity.

(3) After making an appointment under this section the audit authority must notify the local authority with which the entity is connected.

40 Exclusions

(1) An audit authority may not make an appointment under this Chapter in relation to an entity for a financial year if, by virtue of this section, the entity is exempt from audit for that year.

(2) A company is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that, for the purposes of Part 16 of the Companies Act 2006 (c. 46), the company is or will be exempt from audit under that Part for that year.

(3) A limited liability partnership is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that, for the purposes of Part 16 of the Companies Act 2006 (as that Part applies to limited liability partnerships), the partnership is or will be exempt from audit under that Part for that year.

(4) An industrial and provident society is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that subsection (1) of section 4 of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) does not or will not apply to the society for that year by virtue of subsection (2) of that section or section 4A(1) of that Act.

(5) Subsection (1) does not apply if the entity requests the audit authority to make the appointment.

Auditors

41 Eligibility for appointment

(1) A person appointed under this Chapter may be—

(a) a member of staff of the appointing audit authority;

(b) an individual who is not a member of staff of that authority;

(c) a firm.

(2) The following may not be appointed under this Chapter in relation to an entity—

(a) an individual or firm who for the purposes of section 1212 of the Companies Act 2006 (c. 46) is not eligible for appointment as a statutory auditor, or

(b) an individual or firm who by virtue of section 1214 of that Act (independence requirement) may not act as statutory auditor in relation to that entity.

(3) In this section “firm” means any entity, whether or not a legal person, which is not an individual, and includes a body corporate, a corporation sole and a partnership or other unincorporated association.

42 Terms of appointment

(1) Subject to this Chapter, a person appointed under this Chapter holds office under this Chapter in accordance with the terms of their appointment.

(2) Subject to subsection (3), an appointment under this Chapter begins on the first day of the financial year for which the appointment is made.

(3) An appointment under this Chapter which—

(a) is for the first financial year of an entity, or

(b) is made under section 39 after the start of the financial year for which it is made,

begins on the day on which the appointment is made.

(4) An appointment under this Chapter, unless terminated earlier, ends when the person appointed has discharged their functions under this Chapter.

(5) A person appointed under this Chapter may not be dismissed by the appointing audit authority for divergence of opinion on accounting treatments or audit procedures.

(6) If it appears to the Audit Commission that an entity in relation to which it has appointed a person under this Chapter is not, or has ceased to be, a qualifying English local authority entity, the Commission may terminate the appointment (but is not required to do so).

(7) If it appears to the Auditor General for Wales that an entity in relation to which the Auditor General has appointed a person under this Chapter is not, or has ceased to be, a qualifying Welsh local authority entity, the Auditor General may terminate the appointment (but is not required to do so).

Audit of accounts

43 Right of entity to appoint auditor to conduct statutory audit

(1) Where a person is appointed under this Chapter in relation to an entity for a financial year, the entity may, under and in accordance with the relevant statutory provision, appoint that person as auditor of the entity for the purposes of that provision for the financial year.

(2) An appointment pursuant to subsection (1) is to be—

(a) on the standard terms and conditions, or

(b) on the standard terms and conditions subject to such modifications as may be agreed between the entity and the person appointed.

(3) The audit authority must notify the entity of its right under subsection (1).

(4) Notification under subsection (3) must be before the beginning of the financial year (except in the case of an appointment for the first financial year of the entity or which is made under section 39).

(5) Termination by the audit authority of the appointment under this Chapter does not terminate an appointment made pursuant to subsection (1).

(6) In subsection (1) “the relevant statutory provision”—

(a) in relation to a company, means Part 16 of the Companies Act 2006 (c. 46);

(b) in relation to a limited liability partnership, means that Part of that Act as it applies to limited liability partnerships;

(c) in relation to an industrial and provident society, means—

(i) section 4 of the Friendly and Industrial and Provident Societies Act 1968 (c. 55), or

(ii) in the case of an industrial and provident society to which regulation 3 of the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 (SI 2008/565) applies, that regulation.

(7) In subsection (2), “standard terms and conditions” means terms and conditions (including terms and conditions as to payment of fees) published for the purposes of that subsection by the audit authority from time to time.

(8) Before publishing terms and conditions under subsection (7) an audit authority must consult—

(a) such associations of local authorities, and such bodies of accountants, as the audit authority considers appropriate, and

(b) the Secretary of State (in the case of the Audit Commission) or the Welsh Ministers (in the case of the Auditor General for Wales).

44 Functions of auditor not appointed to conduct statutory audit

(1) This section applies to an entity in relation to which a person is appointed under this Chapter for a financial year if—

(a) the entity does not appoint that person pursuant to section 43(1), or

(b) the entity does so appoint that person but terminates the appointment before the discharge of the person’s functions pursuant to the appointment.

(2) Where this section applies to an entity which is a company—

(a) the person appointed under this Chapter must make a report to the company on the annual accounts of the company for the financial year, and

(b) sections 495(2) to (4) and 496 to 501 of the Companies Act 2006 (c. 46) apply as if—

(i) that report were a report under section 495(1) of that Act, and

(ii) the person appointed under this Chapter were the company’s auditor under Part 16 of that Act.

(3) Where this section applies to an entity which is a limited liability partnership—

(a) the person appointed under this Chapter must make a report to the partnership on the annual accounts of the partnership for the financial year, and

(b) sections 495(2) to (4) and 498 to 501 of the Companies Act 2006 apply as if—

(i) that report were a report under section 495(1) of that Act, and

(ii) the person appointed under this Chapter were the partnership’s auditor under Part 16 of that Act.

(4) Where this section applies to an entity which is an industrial and provident society—

(a) the person appointed under this Chapter must audit the revenue account or accounts and balance sheet of the society for the financial year and make a report to the society on them,

(b) section 9(2) to (7) of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) applies in relation to that report as in relation to a report under section 9(1) of that Act,

(c) section 18 of that Act applies in relation to any contravention of section 9(5) of that Act (as applied by paragraph (b)), and

(d) in a case where the society has caused group accounts for that year to be prepared as specified in section 13 of that Act, the person appointed under this Chapter must make a report to the society on the group accounts, stating the matters referred to in subsection (5) of that section.

(5) The person appointed under this Chapter must send a copy of the report made under this section to—

(a) the local authority with which the entity is connected, and

(b) the appointing audit authority.

(6) In subsection (3) references to the Companies Act 2006 are to that Act as it applies in relation to limited liability partnerships.

Public interest reports

45 Public interest reports

(1) A person appointed under this Chapter in relation to an entity must make a report about any relevant matter—

(a) which comes to their attention in discharging their functions arising under or pursuant to the preceding provisions of this Chapter, and

(b) which they consider that it would be in the public interest to bring to the attention of the entity, the local authority with which it is connected or the public.

(2) In subsection (1) “relevant matter” means—

(a) a matter relating to the financial affairs of the entity for the financial year, or

(b) a matter relating to the corporate governance of the entity.

(3) A report under this section must be sent to the entity before the end of the period of 14 days starting with the day on which the report is made.

(4) A copy of a report under this section must be sent before the end of that period to—

(a) the local authority with which the entity is connected, and

(b) the audit authority.

(5) The person appointed under this Chapter may—

(a) notify any person of the fact that the report has been made, and

(b) supply a copy of it or of any part of it to any person.

46 Codes of practice

(1) A code of practice under section 4 of the Audit Commission Act 1998 (c. 18) must include provision prescribing the way in which persons appointed under this Chapter by the Audit Commission are to carry out their functions under section 45.

(2) A person so appointed must, in the exercise of their functions under section 45, comply with such provision of such a code as is for the time being in force.

(3) Where provision under subsection (1) is included in a code of practice under section 4 of the Audit Commission Act 1998 for the first time, the inclusion is to be regarded as an alteration for the purposes of subsection (5) of that section.

(4) A code of practice under section 16 of the Public Audit (Wales) Act 2004 (c. 23) must include provision prescribing the way in which persons appointed under this Chapter by the Auditor General for Wales are to carry out their functions under section 45.

(5) A person so appointed must, in the exercise of their functions under section 45, comply with such provision of such a code as is for the time being in force.

47 Access to information

(1) A person appointed under this Chapter in relation to an entity (in this section referred to as an “auditor”) has a right of access at all reasonable times to every document relating to the entity which appears to the auditor necessary for the purpose of the exercise of their functions under section 45.

(2) The right conferred by subsection (1) includes power to inspect, copy or take away the document.

(3) An auditor may—

(a) require a person holding or accountable for any document referred to in subsection (1) to give to the auditor such information or explanation as the auditor thinks necessary for the purpose of the exercise of the auditor’s functions under section 45, and

(b) if the auditor thinks it necessary, require the person to attend before the auditor in person to give the information or explanation or to produce the document.

(4) Without prejudice to subsection (3), an auditor may—

(a) require any officer or member of the entity to give to the auditor such information or explanation as the auditor thinks necessary for the purpose of the exercise of the auditor’s functions under section 45, and

(b) if the auditor thinks it necessary, require the officer or member to attend before the auditor in person to give the information or explanation.

(5) In relation to any document kept in electronic form, the power in subsection (3)(b) to require a person to produce a document includes power to require it to be produced in a form in which it is legible and can be taken away.

(6) In connection with inspecting such a document, an auditor—

(a) may obtain access to, and inspect and check the operation of, any computer and associated apparatus or material which the auditor considers is or has been used in connection with the document;

(b) may require a person within subsection (7) to afford the auditor such reasonable assistance as the auditor may require for that purpose.

(7) The following persons are within this subsection—

(a) a person by whom or on whose behalf the computer is or has been used;

(b) a person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material.

(8) Without prejudice to subsections (1) to (7), the entity must provide the auditor with every facility and all information which the auditor may reasonably require for the purposes of the exercise of the auditor’s functions under section 45.

(9) A person who without reasonable excuse obstructs the exercise of any power conferred by this section or fails to comply with any requirement of an auditor under this section is guilty of an offence.

(10) A person guilty of an offence under subsection (9) is liable on summary conviction—

(a) to a fine not exceeding level 3 on the standard scale, and

(b) to an additional fine not exceeding £20 for each day on which the offence continues after the person has been convicted of it.

(11) Any expenses incurred by an auditor in connection with proceedings for an offence under this section, so far as not recovered from any other source, are recoverable from the entity in relation to which the auditor is appointed.

(12) The powers under this section are in addition to any other powers which an auditor has in relation to the exercise of the auditor’s functions under or pursuant to this Chapter.

48 Consideration of report by entity

(1) Where a report is made under section 45 in relation to an entity, the report must be considered—

(a) in the case of a company, at a general meeting of the company (to be called by the directors under section 302 of the Companies Act 2006 (c. 46));

(b) in the case of a limited liability partnership, at a meeting of the members of the partnership;

(c) in the case of an industrial and provident society, at a meeting of the society in accordance with the rules of the society.

(2) The meeting must be held before the end of the period of one month starting with the day on which the report is sent to it.

(3) The notice of the meeting must include a copy of the report.

(4) At the meeting the entity must decide—

(a) whether the report requires it to take any action, and

(b) if so, what.

(5) The entity must notify the local authority with which it is connected of—

(a) its decision under subsection (4)(a), and

(b) any decision under subsection (4)(b).

(6) If under subsection (4)(a) the entity decides that the report does not require it to take any action, the notification under subsection (5)(a) must give reasons for that decision.

(7) The person who made the report may extend the period of one month mentioned in subsection (2) if satisfied that it is reasonable to do so to allow the entity to comply with its duties under this section.

(8) A period may be extended under subsection (7) more than once.

(9) This section does not affect any duties (so far as they relate to the subject-matter of a report) imposed by or under any other enactment.

49 Consideration of report by local authority

(1) Where a report is made under section 45 in relation to an entity, the local authority with which the entity is connected must—

(a) consider the report and the entity’s decision or decisions under section 48(4) at a relevant meeting, and

(b) decide whether the report and the decision or decisions require the authority to take any action, and if so what.

(2) A local authority must discharge its duty under subsection (1) before the end of the period of one month starting with the day on which the entity notifies the local authority under section 48(5).

(3) The person who made the report may extend the period of one month mentioned in subsection (2) if satisfied that it is reasonable to do so to allow the local authority to comply with its duty under subsection (1).

(4) A period may be extended under subsection (3) more than once.

(5) In subsection (1)(a) “relevant meeting” means—

(a) in the case of a local authority not operating executive arrangements, a meeting of the authority or of a committee of the authority;

(b) in the case of a local authority operating executive arrangements—

(i) a meeting of the executive, or

(ii) if the function referred to in that subsection is a responsibility of the authority, a meeting of the authority or of a committee of the authority.

(6) The notice given of the meeting to members of the authority or of the executive or committee of the authority (as the case may be) must include—

(a) a copy of the report, and

(b) a copy of the notification given by the entity under section 48(5).

(7) Subsections (8) and (9) apply in relation to a meeting of a local authority or of a committee of a local authority under this section.

(8) The following powers do not include power to exclude the report—

(a) the power under section 1(4)(b) of the Public Bodies (Admission to Meetings) Act 1960 (c. 67) to exclude items from the matter supplied under that section (supply of agenda etc to newspapers);

(b) the power under section 100B(2) of the Local Government Act 1972 (c. 70) to—

(i) exclude documents from the documents open to inspection under section 100B(1) of that Act, or

(ii) exclude items from the matter supplied under section 100B(7) of that Act (public access to agenda and reports before meetings and supply of agenda etc to newspapers).

(9) Part 5A of the (9)Local Government Act 1972 has effect in relation to the report as if section 100C(1)(d) of that Act (public access to copies of reports for six years after meeting) were not limited to so much of the report as relates to an item during which the meeting was open to the public.

(10) In this section—

(a) “executive” and “executive arrangements” have the same meanings as in Part 2 of the Local Government Act 2000 (c. 22);

(b) references to a committee of a local authority include a sub-committee.

(11) This section does not affect any duties (so far as they relate to the subject-matter of a report under section 45) imposed by or under any other enactment.

Supplementary

50 Fees

(1) An entity in relation to which a person is appointed under this Chapter must pay the appointing audit authority a fee in respect of the discharge by that person of any of the functions specified by subsection (2) in relation to the entity.

(2) Those functions are—

(a) functions under section 44(2) to (5);

(b) functions under sections 45 to 49.

(3) The entity must pay a fee under this section at such time, and otherwise in accordance with such requirements, as the audit authority may specify.

(4) The amount of a fee payable under this section is, subject as follows, to be such as may be specified in or determined under a scale or scales of fees prescribed by the audit authority for the purposes of this section.

(5) Before prescribing a scale of fees under subsection (4) the audit authority must consult—

(a) such associations of local authorities, and

(b) such bodies of accountants,

as it considers appropriate.

(6) A scale of fees under this section is not to provide for the amount of a fee to be different depending on whether or not the person appointed under this Chapter is a member of staff of the audit authority.

(7) A scale of fees under this section and standard terms and conditions under section 43 are not to provide for fees of different amounts in respect of—

(a) the discharge of a function referred to in subsection (2)(a), and

(b) the discharge of an equivalent function pursuant to an appointment pursuant to section 43(1).

(8) If the Secretary of State considers it desirable or necessary to do so, the Secretary of State may by regulations prescribe a scale or scales of fees to have effect, for such period as is specified in the regulations, in place of any scale or scales prescribed by the Audit Commission under subsection (4).

(9) Before making any regulations under subsection (8) the Secretary of State must consult—

(a) the Audit Commission, and

(b) such associations of local authorities, and such bodies of accountants, as the Secretary of State considers appropriate.

(10) If the Welsh Ministers consider it desirable or necessary to do so, they may by regulations prescribe a scale or scales of fees to have effect, for such period as is specified in the regulations, in place of any scale or scales prescribed by the Auditor General for Wales under subsection (4).

(11) Before making any regulations under subsection (10) the Welsh Ministers must consult—

(a) the Auditor General for Wales, and

(b) such associations of local authorities, and such bodies of accountants, as the Welsh Ministers consider appropriate.

(12) If it appears to the audit authority that the work involved in a particular case differed (or is likely to differ) substantially from that envisaged by the person prescribing the appropriate scale, the audit authority may charge a fee of an amount different from that referred to in subsection (4).

51 Power of audit authority to require information

(1) At any time after the appointment of a person under this Chapter in relation to an entity, the appointing audit authority may for the purpose specified in subsection (2) require the entity to produce to it—

(a) the accounts audited by the person pursuant to section 43 or under section 44, or

(b) any other document or information relating to the entity to which the person has or had a right of access under or pursuant to this Chapter.

(2) The purpose referred to in subsection (1) is to enable an audit authority to secure that persons appointed by the authority under this Chapter maintain proper standards.

52 Subsidiaries of Passenger Transport Executives

(1) For the purposes of this Chapter, where a relevant entity is an undertaking in relation to which a Passenger Transport Executive is a parent undertaking, the entity is to be regarded as connected with the Integrated Transport Authority for the area for which the Executive is established.

(2) In this section—

• “undertaking” has the meaning given by section 1161 of the Companies Act 2006 (c. 46);

• “parent undertaking” has the meaning given by section 1162 of that Act.

(3) Section 31 of the Audit Commission Act 1998 (c. 18) is repealed.

General

53 Regulations

(1) Regulations under section 36(4)(b) or (5)(b) may provide for any expression used in formulating a condition specified in the regulations to have the meaning for the time being given by a relevant document identified in the regulations.

(2) In subsection (1), “relevant document”—

(a) means a document that (at the time the regulations are made) is a document identified for the purposes of section 21(2)(b) of the Local Government Act 2003 (c. 26) by regulations made under that provision, and

(b) includes a document so identified by virtue of section 21(5) of that Act.

(3) Regulations under this Chapter must be made by statutory instrument.

(4) A statutory instrument containing regulations under this Chapter made by the Secretary of State is subject to annulment in pursuance of a resolution of either House of Parliament.

(5) A statutory instrument containing regulations under this Chapter made by the Welsh Ministers is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

54 Interpretation

(1) In this Chapter—

• “audit authority” has the meaning given by section 36(2);

• “Audit Commission” means the Audit Commission for Local Authorities and the National Health Service in England;

• “company” has the same meaning as in Part 16 of the Companies Act 2006 (c. 46) (see section 1 of that Act);

• “financial year”—

  (a)

  in relation to a company, has the same meaning as in Part 16 of the Companies Act 2006 (see section 390 of that Act);

  (b)

  in relation to a limited liability partnership, has the same meaning as in Part 16 of the Companies Act 2006 (as it applies in relation to limited liability partnerships);

  (c)

  in relation to an industrial and provident society, means a year of account within the meaning of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) (see section 21 of that Act);

• “industrial and provident society” means a society registered (or deemed to be registered) under the Industrial and Provident Societies Act 1965 (c. 12);

• “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N.I.));

• “local authority” has the meaning given by section 36(6);

• “qualifying English local authority entity” has the meaning given by section 36(4);

• “qualifying Welsh local authority entity” has the meaning given by section 36(5);

• “relevant entity” has the meaning given by section 36(3).

(2) In this Chapter references to an entity being “connected with” a local authority are to be construed in accordance with subsection (6) of section 212 of the Local Government and Public Involvement in Health Act 2007 (c. 28).

Part 3 Local government boundary and electoral change

Establishment of the Local Government Boundary Commission for England

55 Local Government Boundary Commission for England

(1) The Local Government Boundary Commission for England is established as a body corporate.

(2) The Local Government Boundary Commission for England is not to be regarded as a servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.

(3) Accordingly, the property of the Local Government Boundary Commission for England is not to be regarded as the property of the Crown or as property held on behalf of the Crown.

(4) The Local Government Boundary Commission for England may do anything, except borrow money, which is calculated to facilitate, or is incidental or conducive to, the exercise of its functions.

(5) Schedule 1 (which makes further provision about the constitution and administration of the Local Government Boundary Commission for England) is part of this Part.

Local Government Boundary Commission for England: functions relating to electoral change

56 Review of electoral arrangements

(1) The Local Government Boundary Commission for England must from time to time—

(a) conduct a review of the area of each principal council, and

(b) recommend whether a change should be made to the electoral arrangements for that area.

(2) The Local Government Boundary Commission for England may at any time—

(a) conduct a review of all or any part of the area of a principal council, and

(b) recommend whether a change should be made to the electoral arrangements for the area of the principal council.

(3) In this Part “principal council” means—

(a) a county council in England;

(b) a district council;

(c) the Council of the Isles of Scilly;

(d) a London borough council.

(4) In this Part “electoral arrangements”, in relation to the area of a principal council, means—

(a) the total number of members of the council (“councillors”),

(b) the number and boundaries of electoral areas for the purposes of the election of councillors,

(c) the number of councillors to be returned by any electoral area in that area, and

(d) the name of any electoral area.

(5) Where under this section the Local Government Boundary Commission for England recommends that a change should be made to the electoral arrangements for the area of a principal council, the Commission must also recommend whether, in consequence, a change should be made to the electoral arrangements for the area of any parish council, where that area is within the area of the principal council.

(6) In this Part “electoral arrangements”, in relation to the area of a parish council, means—

(a) the total number of members of the parish council (“parish councillors”),

(b) arrangements for the division of the parish or (in the case of a common parish council) any of the parishes into wards for the purposes of the election of parish councillors,

(c) the number and boundaries of any wards,

(d) the number of parish councillors to be returned by any ward or, in the case of a common parish council, by each parish, and

(e) the name of any ward.

(7) Section 6(2)(a) of the Local Government Act 1972 (c. 70) (electoral divisions of non-metropolitan county to return one councillor each) does not limit the recommendations that may be made under this section.

(8) Schedule 2 (which makes further provision relating to recommendations under this section) is part of this Part.

(9) A principal council or parish council must, if requested by the Local Government Boundary Commission for England to do so, provide the Commission, by such date as it may specify, with any information that it may reasonably require in connection with its functions under this section.

57 Requests for review of single-member electoral areas

(1) A principal council which falls within subsection (3) may request the Local Government Boundary Commission for England to—

(a) conduct a review of the council’s area under section 56(2)(a), and

(b) make recommendations as to single-member electoral areas under section 56(2)(b).

(2) In this section “recommendations as to single-member electoral areas” means recommendations, for each electoral area in the area of a principal council, as to whether the electoral area should return one member of the council.

(3) A principal council falls within this subsection if—

(a) it is not the case that each of the electoral areas in the council’s area returns one member of the council, and

(b) the council is subject to a scheme for whole-council elections.

(4) For the purposes of subsection (3)(b) a principal council is “subject to a scheme for whole-council elections” if, in each year in which ordinary elections of members of the council are to be held, all the members of the council are to be elected.

(5) If the Local Government Boundary Commission for England grants a request under this section, in making its recommendations it must (in addition to the matters to be considered pursuant to Schedule 2) have regard to the desirability of securing that each electoral area in the principal council’s area should return one member of the council.

(6) If the Local Government Boundary Commission for England decides not to grant a principal council’s request under this section, it must notify the council of its decision and the reasons for it.

(7) Nothing in this section prevents the Local Government Boundary Commission for England, when making recommendations as to single-member electoral areas pursuant to subsection (1), from making other recommendations under section 56(2)(b).

(8) In subsections (2) and (5), references to electoral areas are, in relation to a case where the Local Government Boundary Commission for England makes recommendations for change to the number or boundaries of electoral areas in the area of a principal council, to the recommended electoral areas.

58 Review procedure

(1) As soon as reasonably practicable after deciding to conduct a review under section 56, the Local Government Boundary Commission for England must take such steps as it considers sufficient to secure that persons who may be interested in the review are informed of—

(a) the fact that the review is to take place, and

(b) any particular matters to which the review is to relate.

(2) In conducting a review under section 56, the Local Government Boundary Commission for England must—

(a) prepare and publish draft recommendations,

(b) take such steps as its considers sufficient to secure that persons who may be interested in the recommendations are informed of them and of the period within which representations with respect to them may be made, and

(c) take into consideration any representations made to the Local Government Boundary Commission for England within that period.

(3) The Local Government Boundary Commission for England may at any time before publishing draft recommendations under subsection (2)(a) consult such persons as it considers appropriate.

(4) As soon as practicable after conducting a review under section 56, the Local Government Boundary Commission for England must—

(a) publish a report stating its recommendations, and

(b) take such steps as it considers sufficient to secure that persons who may be interested in the recommendations are informed of them.

59 Implementation of review recommendations

(1) Where a report under section 58(4) contains recommendations for electoral changes, the Local Government Boundary Commission for England may by order give effect to all or any of the recommendations.

(2) An order under this section may in particular include provision as to—

(a) the total number of members of any principal council or parish council (“councillors”);

(b) the number and boundaries of electoral areas for the purposes of the election of councillors;

(c) the number of councillors to be returned by any electoral area;

(d) the name of any electoral area;

(e) the election of councillors for any electoral area;

(f) the order of retirement of councillors;

(g) the ordinary year of election for a parish council.

(3) An order under this section may not require or authorise the holding of an election for membership of a principal council otherwise than at an ordinary election for that council.

(4) An order under this section may—

(a) contain incidental, consequential, supplementary or transitional provision, or savings;

(b) make different provision for different cases, including different provision for different areas or councils.

(5) The provision referred to in subsection (4)(a) may include provision—

(a) applying any instrument made under an enactment, with or without modifications,

(b) extending, excluding or amending any such instrument, or

(c) repealing or revoking any such instrument.

(6) Where the Local Government Boundary Commission for England is satisfied that—

(a) a mistake has occurred in the preparation of an order under subsection (1), and

(b) the mistake is such that it cannot be rectified by a subsequent order under this section by virtue of section 14 of the Interpretation Act 1978 (c. 30) (implied power to amend),

the Local Government Boundary Commission for England may by order under this subsection make such provision as it thinks necessary or expedient for rectifying the mistake.

(7) In subsection (6), “mistake”, in relation to an order, includes a provision contained in or omitted from the order in reliance on information supplied by any public body which is inaccurate or incomplete.

(8) An order under this section is to be made by statutory instrument.

(9) A draft of a statutory instrument containing an order under this section is to be laid before Parliament before the instrument is made.

Local Government Boundary Commission for England: functions relating to boundary change

60 Transfer of functions relating to boundary change

(1) The functions of the Electoral Commission’s Boundary Committee under Chapter 1 of Part 1 of the Local Government and Public Involvement in Health Act 2007 (c. 28) (structural and boundary change) are, subject to this Part, transferred to the Local Government Boundary Commission for England.

(2) The functions of the Electoral Commission under the enactments specified in subsection (3) are, subject to the following provisions of this Part, transferred to the Local Government Boundary Commission for England.

(3) Those enactments are—

(a) section 2(4) of the Greater London Authority Act 1999 (c. 29) (constituencies for the Greater London Assembly);

(b) Chapter 1 of Part 2 of the Local Government and Public Involvement in Health Act 2007 (electoral arrangements);

(c) section 59 of that Act (change of name of electoral area);

(d) Chapter 3 of Part 4 of that Act (parish re-organisation).

(4) In this Part, the “Electoral Commission’s Boundary Committee” means the Boundary Committee for England constituted by the Electoral Commission under section 14 of the Political Parties, Elections and Referendums Act 2000 (c. 41).

Termination of involvement of Electoral Commission

61 Removal of functions relating to boundary and electoral change

(1) The duty of the Electoral Commission under section 14 of the Political Parties, Elections and Referendums Act 2000 (c. 41) to establish Boundary Committees is abolished so far as relating to England.

(2) Accordingly, the following provisions of that Act are repealed—

(a) section 14 (Boundary Committees), so far as relating to England;

(b) section 15 (Deputy Electoral Commissioners).

(3) In that Act, the following provisions (which provide for the transfer of functions etc to the Electoral Commission and which are not in force or in force only to a limited extent) are repealed—

(a) section 14 (Boundary Committees) so far as relating to Scotland, Wales and Northern Ireland;

(b) sections 16 and 17 (transfer of functions and property etc of Boundary Commissions to the Electoral Commission);

(c) sections 19 and 20 (transfer of functions of Local Government Boundary Commissions for Scotland and Wales to Electoral Commission);

(d) Part 1 of Schedule 3 (amendments relating to the transfer of functions of Boundary Commissions);

(e) in Schedule 22 (repeals), the entries relating to the Parliamentary Constituencies Act 1986 (c. 56) and the Boundary Commissions Act 1992 (c. 55).

62 Transfer schemes

(1) For the purpose of the exercise of functions conferred on the Local Government Boundary Commission for England by or under this Part, the Electoral Commission must make one or more schemes for the transfer of property, rights and liabilities from the Electoral Commission to the Local Government Boundary Commission for England.

(2) The Electoral Commission may not make a scheme under this section—

(a) without consulting the Secretary of State;

(b) without the consent of the Electoral Commission’s Boundary Committee.

(3) If the Electoral Commission and the Electoral Commission’s Boundary Committee fail to agree on the provision to be included in a scheme under this section, the Secretary of State may by order specify the provision to be included in the scheme.

(4) A scheme under this section must be made on or before—

(a) 31 December 2009, or

(b) such later date as the Secretary of State may by order specify.

(5) A transfer under a scheme under this section has effect in accordance with the terms of the scheme.

(6) A transfer under a scheme under this section may have effect—

(a) whether or not the property, rights and liabilities would otherwise be capable of being transferred;

(b) without any instrument or other formality being required.

(7) The rights and liabilities which may be transferred by a scheme under this section include rights and liabilities in relation to a contract of employment.

(8) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) apply to the transfer under a scheme under this section (whether or not the transfer is a relevant transfer for the purposes of those regulations).

(9) A scheme under this section may define the property, rights and liabilities to be transferred by specifying or describing them.

(10) A scheme under this section may include supplementary, incidental, transitional and consequential provision and may in particular—

(a) make provision for the continuing effect of things done by the Electoral Commission in relation to anything transferred by the scheme;

(b) make provision for the continuation of things (including legal proceedings) in the process of being done, by or on behalf of or in relation to the Electoral Commission in relation to anything transferred by the scheme;

(c) make provision for references to the Electoral Commission in an agreement (whether written or not), instrument or other document in relation to anything transferred by the scheme to be treated (so far as necessary for the purposes of or in consequence of the transfer) as references to the Local Government Boundary Commission for England;

(d) make provision for the shared ownership or use of any property or facilities.

(11) Where a scheme has been made under this section, the Electoral Commission and the Local Government Boundary Commission for England may (subject to any order under this section) agree in writing to modify the scheme; and any such modification is to have effect as from the date the original scheme came into effect.

(12) An order under this section is to be made by statutory instrument.

(13) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

Transitional

63 Continuity of functions

(1) Anything done before the relevant day by the Electoral Commission’s Boundary Committee for the purposes of the discharge of its functions under Part 2 of the Local Government Act 1992 (c. 19) may for the purposes of the discharge of any function of the Local Government Boundary Commission for England under any of sections 56 to 59 be regarded as having been done by the Local Government Boundary Commission for England under that section.

(2) In subsection (1) “relevant day” means the day on which section 56 comes into force.

(3) Anything done before the relevant day by the Electoral Commission’s Boundary Committee for the purposes of the discharge of any function referred to in section 60(1) may for the purposes of the discharge of that function by the Local Government Boundary Commission for England under Chapter 1 of Part 1 of the Local Government and Public Involvement in Health Act 2007 (c. 28) be regarded as having been done by the Local Government Boundary Commission for England under that Chapter.

(4) Anything done before the relevant day by the Electoral Commission for the purposes of the discharge of any function under an enactment specified in section 60(3) may for the purposes of the discharge of that function by the Local Government Boundary Commission for England under that enactment be regarded as having been done by the Local Government Boundary Commission for England under that enactment.

(5) In subsections (3) and (4), “relevant day” means the day on which section 60 comes into force.

64 Interim provision

(1) Schedule 3 (which makes modifications to Part 2 of the Local Government Act 1992 (c. 19) for an interim period) is part of this Part.

(2) Where the Electoral Commission receives recommendations under Part 2 of the Local Government Act 1992 before the day on which this Act is passed, it must determine whether to give effect to any or all of those recommendations on or before 31 March 2010.

Miscellaneous

65 Electoral changes consequential on boundary change in England

(1) Chapter 1 of Part 1 of the Local Government and Public Involvement in Health Act 2007 (structural and boundary change) is amended as follows.

(2) In section 8 (review of local government areas) after subsection (6) insert—

“(6A) Where under subsection (2) the Local Government Boundary Commission recommend that a boundary change should be made in relation to any local government area, the Commission must recommend to the Secretary of State whether, in consequence, a change should be made to—

(a) the electoral arrangements of the area of a local authority;

(b) the electoral arrangements of the area of a parish council.

(6B) In subsection (6A)(a) “electoral arrangements”, in relation to the area of a local authority means—

(a) the total number of members of the local authority (“councillors”);

(b) the number and boundaries of electoral areas for the purposes of the election of councillors;

(c) the number of councillors to be returned by any electoral area in that area; and

(d) the name of any electoral area.

(6C) In subsection (6A)(b) “electoral arrangements”, in relation to the area of a parish council means—

(a) the total number of members of the parish council (“parish councillors”);

(b) arrangements for the division of the parish or (in the case of a common parish council) any of the parishes into wards for the purposes of the election of parish councillors;

(c) the number and boundaries of any wards;

(d) the number of parish councillors to be returned by any ward or, in the case of a common parish council, by each parish; and

(e) the name of any ward.

(6D) Schedule 2 to the Local Democracy, Economic Development and Construction Act 2009 applies in relation to the making of recommendations under subsection (6A).

(6E) Where under subsection (2) the Local Government Boundary Commission recommend that a boundary change should be made in relation to the area of a London borough council, the Commission must recommend to the Secretary of State whether, in consequence, a change should be made to the area of any constituency for the London Assembly in order to comply with the rules set out in paragraph 7 of Schedule 1 to the Greater London Authority Act 1999.”

(3) In that section, in subsection (7), for “subsection (1), (2), (5) or (6)” substitute “this section”.

(4) In section 10 (implementation of recommendations), after subsection (2) insert—

“(2A) Subsections (2B) to (2D) apply where the Local Government Boundary Commission make a recommendation to the Secretary of State under section 8(6A) or (6E) in consequence of a recommendation under section 8(2).

(2B) Where under subsection (1)(a) the Secretary of State implements the recommendation under section 8(2) without modification, the Secretary of State must by order implement the recommendation under section 8(6A) or (6E).

(2C) Where pursuant to subsection (1)(a) the Secretary of State proposes to implement the recommendation under section 8(2) with modification, the Secretary of State must request the Local Government Boundary Commission to recommend whether a modification is needed to their recommendation under section 8(6A) or (6E).

(2D) Where under section (1)(a) the Secretary of State implements a recommendation under section 8(2) with modification—

(a) if the Local Government Boundary Commission have recommended under subsection (2C) that a modification is needed to their recommendation under section 8(6A) or (6E), the Secretary of State must by order implement the recommendation under section 8(6A) or (6E) with that modification;

(b) if the Local Government Boundary Commission have recommended under subsection (2C) that no modification is needed to the recommendation under section 8(6A) or (6E), the Secretary of State must by order implement that recommendation.”

(5) In section 11 (implementation orders: provision that may be included)—

(a) in subsection (3), at the end insert—

“(i) electoral matters within the meaning of section 12.”;

(b) in subsection (4), omit paragraph (d).

(6) In section 12 (provision relating to membership etc of authorities), in subsection (1)—

(a) for “section 11(4)” substitute “section 11(3)”;

(b) at the end insert—

“(l) the ordinary year of election for a parish council.”

66 Repeal of redundant provisions

The following provisions (which relate to the Local Government Commission for England) are repealed—

(a) in the Local Government Act 1992 (c. 19), section 12 and Schedule 2;

(b) in the Political Parties, Elections and Referendums Act 2000 (c. 41), section 18.

General

67 Consequential and supplementary provision

(1) Schedule 4 (which contains amendments consequential on, and supplementary to, this Part) is part of this Part.

(2) The Secretary of State may by order make such other provision as the Secretary of State considers appropriate in consequence of any provision made by this Part.

(3) The power conferred in subsection (2) includes power to amend, repeal or revoke provision contained in an enactment passed or made before the day on which this Act is passed.

(4) A order under subsection (2) is to be made by statutory instrument.

(5) A statutory instrument containing an order under subsection (2) which includes provision—

(a) amending or repealing provision contained in an Act, or

(b) amending or revoking provision contained in an instrument of which a draft was required to be laid before and approved by a resolution of each House of Parliament,

may not be made unless a draft of the instrument has been laid before, and approved by a resolution of each House of Parliament.

(6) A statutory instrument containing any other order under subsection (2) is subject to annulment in pursuance of a resolution of either House of Parliament.

68 Interpretation

In this Part—

• “the Electoral Commission’s Boundary Committee” has the meaning given by section 60(4);

• “electoral arrangements” has the meaning given in section 56(4) and (6);

• “principal council” has the meaning given in section 56(3).

Part 4 Local authority economic assessments

69 Local authority economic assessments

(1) A principal local authority in England must prepare an assessment of the economic conditions of its area.

(2) A principal local authority may revise the assessment, or any part or aspect of it, at any time.

(3) In this Part “principal local authority” means—

(a) a county council;

(b) a district council, other than a non-unitary district council;

(c) a London borough council;

(d) the Common Council of the City of London in its capacity as a local authority;

(e) the Council of the Isles of Scilly.

(4) In discharging its functions under this section, a principal local authority must consult such persons as it considers appropriate.

(5) Where a principal local authority is a county council for an area for which there is a district council, the following duties also apply in relation to the discharge by the county council of its functions under this section—

(a) the county council must consult and seek the participation of the district council;

(b) the county council must have regard to any material produced by the district council in the discharge of the district council’s functions under section 13 of the Planning and Compulsory Purchase Act 2004 (c. 5);

(c) the district council must co-operate with the county council.

(6) A principal local authority must have regard to any guidance given by the Secretary of State—

(a) as to what an assessment under this section should contain and how it should be prepared;

(b) as to when to prepare an assessment under subsection (1);

(c) as to when to revise any assessment, or any part or aspect of an assessment, under subsection (2).

(7) Before giving guidance under subsection (6) the Secretary of State must consult—

(a) such representatives of local government as the Secretary of State considers appropriate, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(8) In subsection (3), “non-unitary district council” means a district council for an area that is part of the area of a county council.

Part 5 Regional strategy

Regional strategy

70 Regional strategy

(1) There is to be a regional strategy for each region other than London.

(2) The regional strategy for a region is to set out—

(a) policies in relation to sustainable economic growth in the region, and

(b) policies in relation to the development and use of land in the region.

(3) In subsection (2)(a) and (b) references to the region include any part of the region.

(4) The policies referred to in subsection (2)(a) and (b) are to include policies designed to contribute to the mitigation of, and adaptation to, climate change.

(5) If to any extent a policy set out in the regional strategy conflicts with any other statement or information in the strategy, the conflict is to be resolved in favour of the policy.

(6) On the day on which this section comes into force the regional strategy for a region is to consist of—

(a) the regional spatial strategy for the region subsisting immediately before that day, and

(b) the regional economic strategy for the region subsisting immediately before that day.

(7) In a case where the area of a National Park falls within two or more regions, the Secretary of State may by regulations provide that the National Park is for the purposes of this Part to be treated as falling wholly within a region specified in the regulations.

(8) In this section “development” and “land” have the same meanings as in the Town and Country Planning Act 1990 (c. 8) (see section 336 of that Act).

Authorities relevant to this Part

71 Leaders’ Boards

(1) The participating authorities in each region other than London must for the purposes of this Part make a scheme for the establishment and operation of a body (whether or not incorporated) for the region.

(2) A body under subsection (1) is to be known as a “Leaders’ Board”.

(3) For the purposes of this section, “participating authority,” in relation to a region, means any of the following authorities whose area falls wholly or partly within the region—

(a) a district council;

(b) a county council;

(c) a National Park authority;

(d) the Broads Authority.

(4) Before making a scheme under subsection (1) the participating authorities in a region must consult such persons (if any) as they consider appropriate.

(5) After making a scheme under subsection (1) the participating authorities in a region must submit it to the Secretary of State for approval.

(6) If the Secretary of State approves a scheme under subsection (1), the participating authorities are to establish the body in accordance with the scheme.

(7) The Secretary of State may give such sums as the Secretary of State considers appropriate—

(a) to a Leaders’ Board, or

(b) to a participating authority in a region in respect of the Leaders’ Board for the region.

(8) If the Secretary of State considers that a Leaders’ Board established for a region is not operating effectively, the Secretary of State may by direction withdraw approval for the scheme under which it is established (and subsection (6) accordingly ceases to apply in relation to that scheme).

(9) The Secretary of State must by regulations make provision for Part 5A of the Local Government Act 1972 (c. 70) (public admission to meetings of principal councils, public access to documents, etc) to apply in relation to Leaders’ Boards as it applies in relation to principal councils (within the meaning of that Part).

(10) The application referred to in subsection (9) may be with such modifications as the Secretary of State considers necessary or expedient.

72 Responsible regional authorities

(1) References in this Part to “responsible regional authorities”, in relation to a region, are to the following (acting jointly)—

(a) the regional development agency for the region, and

(b) the Leaders’ Board for the region.

(2) But if during any period after the coming into force of this section there is no Leaders’ Board for a region, the references in this Part to “responsible regional authorities” are in relation to that period and region to be read as references to the regional development agency for the region.

Sustainable development

73 Sustainable development

(1) The responsible regional authorities and the Secretary of State must exercise their functions under this Part in relation to the regional strategy for a region with the objective of contributing to the achievement of sustainable development.

(2) For the purposes of subsection (1) the responsible regional authorities in relation to a region and the Secretary of State must (in particular) have regard to the desirability of achieving good design.

Revisions of regional strategy

74 Review and revision by responsible regional authorities

(1) The responsible regional authorities must keep the regional strategy for their region under review.

(2) The responsible regional authorities may prepare a draft revision of the regional strategy for their region when it appears to them necessary or expedient to do so.

(3) The responsible regional authorities must give notice to the Secretary of State of their intention to prepare a draft revision under this section.

(4) The responsible regional authorities must prepare a draft revision of the regional strategy for their region—

(a) at such time as may be specified in regulations made by the Secretary of State, or

(b) when directed to do so by the Secretary of State.

(5) A direction under subsection (4)(b) may in particular require a draft revision of a regional strategy—

(a) in relation to aspects of the strategy specified in the direction;

(b) in accordance with a timetable so specified.

75 Community involvement

(1) For the purposes of the exercise of their functions in relation to the revision of the regional strategy for their region, the responsible regional authorities must prepare and publish a statement of their policies as to the involvement of persons who appear to them to have an interest in the exercise of those functions.

(2) The responsible regional authorities must keep those policies under review and from time to time—

(a) revise the statement, and

(b) publish the revised statement.

(3) The responsible regional authorities must comply with the statement or revised statement in the exercise of the functions referred to in subsection (1).

76 Examination in public

(1) The responsible regional authorities may when preparing a draft revision of their regional strategy arrange for an examination in public to be held.

(2) In deciding whether or not to arrange for an examination in public to be held the responsible regional authorities must have regard to—

(a) the extent of the revisions proposed by the draft revision,

(b) the level of interest shown in the draft revision, and

(c) such other matters as the responsible regional authorities consider appropriate.

(3) The responsible regional authorities must inform the Secretary of State of their decision under subsection (2).

(4) If the responsible regional authorities decide to arrange for an examination in public to be held, the Secretary of State must appoint a person to hold it.

(5) If the responsible regional authorities decide not to arrange for an examination in public to be held, the Secretary of State may—

(a) arrange for such an examination to be held, and

(b) appoint a person to hold it.

(6) In deciding pursuant to subsection (5) whether or not to arrange for an examination in public to be held the Secretary of State must have regard to—

(a) the extent of the revisions proposed by the draft revision,

(b) the level of interest shown in the draft revision, and

(c) such other matters as the Secretary of State considers appropriate.

(7) No person has a right to be heard at an examination in public under this section.

(8) An examination in public under this section—

(a) is a statutory inquiry for the purposes of Schedule 7 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (Administrative Justice and Tribunals Council), but

(b) is not a statutory inquiry for the purposes of the Tribunals and Inquiries Act 1992 (c. 53).

(9) After an examination in public under this section the person appointed to hold it must—

(a) make a report of the examination to the responsible regional authorities, and

(b) send a copy to the Secretary of State.

77 Matters to be taken into account in revision

(1) In preparing a draft revision of the regional strategy for their region, the responsible regional authorities must have regard to—

(a) national policies and advice contained in guidance which has been given by the Secretary of State;

(b) the regional strategy for each adjoining region (other than London);

(c) if any part of their region adjoins London—

(i) the spatial development strategy; and

(ii) the London Development Agency strategy under section 7A of the Regional Development Agencies Act 1998 (c. 45);

(d) if any part of their region adjoins Scotland, the National Planning Framework for Scotland;

(e) if any part of their region adjoins Wales, the Wales Spatial Plan;

(f) the resources likely to be available for implementation of the regional strategy;

(g) the desirability of making different provision in relation to different parts of the region;

(h) any report pursuant to an examination in public under section 76;

(i) any representations made to them in respect of the draft which were not considered at an examination in public under that section;

(j) such other matters as the Secretary of State may by regulations prescribe.

(2) In preparing a draft revision of a regional strategy for their region the responsible regional authorities must—

(a) carry out an appraisal of the sustainability of the proposals in the draft, and

(b) prepare a report of the findings of the appraisal.

78 Approval of revision by Secretary of State

(1) When the responsible regional authorities have prepared a draft revision of a regional strategy, they must—

(a) publish it, together with the report referred to in section 77(2)(b), and

(b) submit it and that report to the Secretary of State.

(2) Where a draft revision of a regional strategy is submitted under subsection (1)(b) the Secretary of State may—

(a) approve the draft, or

(b) modify it and approve it as modified.

(3) The Secretary of State must consult such persons (if any) as the Secretary of State considers appropriate—

(a) before approving the draft under subsection (2)(a);

(b) before modifying the draft and approving it as modified under subsection (2)(b).

(4) In deciding whether to make any modifications to the draft the Secretary of State must have regard to—

(a) any report pursuant to an examination in public under section 76,

(b) any representations made to the responsible regional authorities in respect of the draft which were not considered at an examination in public under that section, and

(c) any representations made to the Secretary of State.

(5) The responsible regional authorities must publish any revision approved under this section.

79 Reserve powers of Secretary of State

(1) The Secretary of State may revise a regional strategy if the responsible regional authorities fail to comply with—

(a) the requirement under section 74(4)(a), or

(b) a direction under section 74(4)(b).

(2) Before revising a regional strategy under subsection (1) the Secretary of State—

(a) may arrange for an examination in public to be held and appoint a person to hold it;

(b) must consult such persons (if any) as the Secretary of State considers appropriate.

(3) Subsections (6) to (9) of section 76 apply in relation to an examination in public under this section.

(4) In deciding whether to revise a regional strategy under subsection (1) the Secretary of State must have regard to—

(a) any report pursuant to an examination in public under subsection (2)(a), and

(b) any representations made to the Secretary of State in respect of the draft which were not considered at such an examination in public.

(5) The Secretary of State must publish a strategy as revised under subsection (1).

(6) If the Secretary of State thinks it necessary or expedient to do so the Secretary of State may at any time revoke all or any part of a regional strategy.

80 Revision: supplementary

(1) The Secretary of State may make regulations (subject to the requirements of this Part) as to—

(a) the procedure to be followed by the responsible regional authorities in relation to revision of their regional strategy;

(b) the procedure to be followed at an examination in public under this Part;

(c) the remuneration and allowances payable to a person appointed to carry out an examination in public under this Part;

(d) the procedure to be followed by the Secretary of State in exercising functions under section 78 or 79.

(2) The Secretary of State may direct that where—

(a) before the day on which this section comes into force any step is taken in connection with the preparation of a revision of the regional spatial strategy or regional economic strategy for a region, and

(b) the Secretary of State thinks that the step corresponds to a step which must or may be taken under this Part in connection with the revision of the regional strategy for the region,

the step is to be regarded as having been taken under this Part in connection with the revision of the regional strategy.

Implementation of strategy

81 Implementation

(1) The responsible regional authorities must produce and publish, and from time to time revise, a plan for implementing the regional strategy for their region.

(2) The responsible regional authorities must for each period of twelve months prepare a report on the implementation of the regional strategy for their region.

(3) A report under subsection (2)—

(a) must be in respect of such period of twelve months as may be specified by the Secretary of State in regulations,

(b) must be in such form and contain such information as may be so specified, and

(c) must be submitted to the Secretary of State on such date as may be so specified.

Effect of strategy

82 Regional strategy as part of the development plan

(1) In section 38 of the Planning and Compulsory Purchase Act 2004 (c. 5) (development plan), in subsection (3)(a), for “regional spatial strategy” substitute “regional strategy”.

(2) For the purposes of that section, during the interim period a regional strategy is to be regarded as consisting solely of the matters referred to section 70(6)(a).

(3) In subsection (2) “interim period” means the period after the coming into force of this section and before whichever is the earlier of—

(a) publication of a revision to the strategy under section 78(5), or

(b) publication of a revised strategy under section 79.

83 Duties of regional development agencies

In the Regional Development Agencies Act 1998 (c. 45), for section 7 (strategy) substitute—

“7 Regional strategy

(1) A regional development agency shall in exercising its functions have regard to the regional strategy for its region.

(2) In subsection (1) “regional strategy” means the regional strategy under Part 5 of the Local Democracy, Economic Development and Construction Act 2009.

(3) Subsection (1) does not apply in relation to the London Development Agency.”

Supplementary

84 Guidance and directions

(1) The Secretary of State may give to any person exercising functions under this Part—

(a) guidance, or

(b) directions

in relation to the exercise of those functions.

(2) Guidance under subsection (1)(a) may in particular include guidance as to—

(a) the exercise of functions under this Part in relation to the requirement in section 70(2) that a regional strategy must contain policies in relation to sustainable economic growth;

(b) the matters to be included in a scheme under section 71.

(3) Directions under this section may be of a general or particular nature.

(4) The powers conferred by this section are without prejudice to any powers of the Secretary of State to give guidance or directions under this Part or under any other enactment.

85 Consequential provision

(1) Schedule 5 (which contains amendments consequential on this Part) is part of this Part.

(2) The Secretary of State may by order make such other provision as the Secretary of State considers appropriate in consequence of any provision made by or under this Part.

(3) The power conferred in subsection (2) includes power to amend, repeal or revoke provision contained in an enactment passed or made before the day on which this Act is passed.

(4) A order under subsection (2) is to be made by statutory instrument.

(5) A statutory instrument containing an order under subsection (2) which includes provision—

(a) amending or repealing provision contained in an Act, or

(b) amending or revoking provision contained in an instrument of which a draft was required to be laid before and approved by a resolution of each House of Parliament,

may not be made unless a draft of the instrument has been laid before, and approved by a resolution of each House of Parliament.

(6) A statutory instrument containing any other order under subsection (2) is subject to annulment in pursuance of a resolution of either House of Parliament.

General

86 Regulations

(1) Regulations under this Part are to be made by statutory instrument.

(2) A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of either House of Parliament.

87 Interpretation

In this Part—

• “London” means the London region specified in Schedule 1 to the Regional Development Agencies Act 1998 (c. 45);

• “region” means a region specified in Schedule 1 to the Regional Development Agencies Act 1998;

• “regional development agency” means a development agency established under section 1 of the Regional Development Agencies Act 1998;

• “responsible regional authorities” has the meaning given by section 72;

• “regional economic strategy” means a strategy under section 7 of the Regional Development Agencies Act 1998 (as in force immediately before the coming into force of section 70);

• “regional spatial strategy” means a strategy under section 1 of the Planning and Compulsory Purchase Act 2004 (c. 5) (as in force immediately before the coming into force of section 70).

Part 6 Economic prosperity boards and combined authorities

EPBs and their areas

88 EPBs and their areas

(1) The Secretary of State may by order establish as a body corporate an economic prosperity board (an “EPB”) for an area that meets the following conditions.

(2) Condition A is that the area consists of the whole of two or more local government areas in England.

(3) Condition B is that no part of the area is separated from the rest of it by one or more local government areas that are not within the area.

(4) Condition C is that there is no local government area that is surrounded by local government areas that are within the area but that is not itself within the area.

(5) Condition D is that no part of the area forms part of—

(a) the area of another EPB, or

(b) the area of a combined authority.

(6) Condition E is that each local government area that forms part of the area was included in a scheme prepared and published under section 98.

(7) In this Part “local government area” means the area of—

(a) a county council, or

(b) a district council.

(8) An order under this section must specify the name by which the EPB is to be known.

Constitution and functions of EPBs

89 Constitution

(1) The Secretary of State may by order make provision in relation to an EPB about—

(a) the membership of the EPB;

(b) the voting powers of members of the EPB;

(c) the executive arrangements of the EPB.

(2) The provision that may be made about membership includes provision about—

(a) the number and appointment of members of the EPB;

(b) the remuneration of, and pensions or allowances payable to or in respect of, any member of the EPB.

(3) The provision that may be made about voting powers includes provision for different weight to be given to the vote of different descriptions of member.

(4) The provision that may be made about executive arrangements includes provision about—

(a) the appointment of an executive;

(b) the functions of the EPB that are the responsibility of an executive;

(c) the functions of the EPB that are the responsibility of an executive and that may be discharged by a committee of the EPB or by a body other than the EPB;

(d) arrangements relating to the review and scrutiny of the discharge of functions;

(e) access to information on the proceedings of an executive of the EPB;

(f) the disapplication of section 15 of the Local Government and Housing Act 1989 (c. 42) (duty to allocate seats to political groups) in relation to an executive of the EPB or a committee of such an executive;

(g) the keeping of a record of any arrangements relating to the EPB and falling within paragraphs (a) to (f).

(5) An order under this section may not provide for the budget of an EPB to be agreed otherwise than by the EPB.

90 Constitution: membership and voting

(1) An order under section 89 that includes provision about the number and appointment of members of an EPB must provide—

(a) for a majority of the members of the EPB to be appointed by the EPB’s constituent councils,

(b) for those members to be appointed from among the elected members of the constituent councils, and

(c) for each constituent council that is a representative council to appoint at least one of its elected members as a member of the EPB.

(2) For the purposes of this section—

(a) a county council is a constituent council of an EPB if the area of the county council, or part of that area, is within the EPB’s area;

(b) a district council is a constituent council of an EPB if the area of the district council is within the EPB’s area.

(3) For the purposes of this section, the following are representative councils in relation to an EPB—

(a) if the EPB’s area coincides with or includes the whole of the area of a county council, the county council;

(b) if the EPB’s area includes part of the area of a county council—

(i) the county council, or

(ii) each district council for an area within that part,

as determined by or in accordance with the order;

(c) if the EPB’s area includes the area of a unitary district council, the district council.

(4) In this Part “unitary district council” means a district council whose area is not part of the area of a county council.

(5) If an order under section 89 provides for members of an EPB to be appointed otherwise than from among the elected members of its constituent councils, the order must provide for those members to be non-voting members.

(6) The voting members of an EPB may resolve that provision made in accordance with subsection (5) is not to apply in the case of the EPB.

91 Exercise of local authority functions

(1) The Secretary of State may by order provide for a function of a local authority that is exercisable in relation to an area within an EPB’s area to be exercisable by the EPB in relation to the EPB’s area.

(2) The Secretary of State may make an order under this section only if the Secretary of State considers that the function can appropriately be exercised by the EPB.

(3) An order under this section may make provision for the function to be exercisable by the EPB either generally or subject to such conditions or limitations as may be specified in the order.

(4) An order under this section may make provision—

(a) for the function to be exercisable by the EPB instead of by the local authority, or

(b) for the function to be exercisable by the EPB concurrently with the local authority.

(5) An EPB must perform the functions that are exercisable by the EPB by virtue of this section with a view to promoting the economic development and regeneration of its area.

(6) In this section “local authority” means—

(a) a county council, or

(b) a district council.

92 Funding

(1) The Secretary of State may by order make provision—

(a) for the costs of an EPB to be met by its constituent councils, and

(b) about the basis on which the amount payable by each constituent council is to be determined.

(2) For the purposes of this section—

(a) a county council is a constituent council of an EPB if the area of the county council, or part of that area, is within the EPB’s area;

(b) a district council is a constituent council of an EPB if the area of the district council is within the EPB’s area.

93 Accounts

(1) Each EPB must keep a fund to be known as the general fund.

(2) All receipts of the EPB must be carried to that fund.

(3) All liabilities falling to be discharged by the EPB must be discharged out of that fund.

(4) Accounts must be kept of—

(a) receipts carried to the general fund, and

(b) payments made out of the general fund.

94 Change of name

(1) An EPB may change its name by a resolution in accordance with this section.

(2) The resolution must be considered at a meeting of the EPB that is specially convened for the purpose.

(3) Particulars of the resolution must have been included in the notice of the meeting.

(4) The resolution must be passed at the meeting by not less than two-thirds of the members of the EPB who vote on it.

(5) An EPB that changes its name under this section must—

(a) send notice of the change to the Secretary of State, and

(b) publish the notice in such manner as the Secretary of State may direct.

(6) A change of name under this section does not affect the rights or obligations of the EPB or any other person, or render defective any legal proceedings.

(7) Any legal proceedings may be commenced or continued as if there had been no change of name.

Changes to and dissolution of an EPB’s area

95 Changes to boundaries of an EPB’s area

(1) The Secretary of State may by order change the boundaries of an EPB’s area by—

(a) adding a local government area to an existing area of an EPB, or

(b) removing a local government area from an existing area of an EPB.

(2) An order may be made under this section only if—

(a) the area to be created by the order meets conditions A to D in section 88, and

(b) each council to whom this section applies consents to the making of the order.

(3) This section applies to—

(a) a county council whose area, or part of whose area, is to be added to or removed from the existing area of the EPB;

(b) a district council whose area is to be added to or removed from the existing area of the EPB.

96 Dissolution of an EPB’s area

(1) The Secretary of State may by order—

(a) dissolve an EPB’s area, and

(b) abolish the EPB for the area.

(2) An order may be made under this section only if a majority of the councils to whom this section applies consent to the making of the order.

(3) This section applies to—

(a) a county council whose area, or part of whose area, is within the EPB’s area;

(b) a unitary district council whose area is within the EPB’s area.

Requirements in connection with orders about EPBs

97 Review by authorities: new EPB

(1) Any two or more of the authorities to whom this section applies may undertake a review of the effectiveness and efficiency of arrangements to promote economic development and regeneration within the area covered by the review (“the review area”).

(2) This section applies to—

(a) a county council in England;

(b) a district council in England.

(3) Where the review is being undertaken by a county council, the review area must include—

(a) the areas of one or more district councils that are within the area of the county council, or

(b) if there are no such areas, the area of the county council.

(4) Where the review is being undertaken by a district council, the review area must include the area of the district council.

(5) The review area may also include the area of any county council or district council in England not undertaking the review.

98 Preparation and publication of scheme: new EPB

(1) This section applies where two or more of the authorities that have undertaken a review under section 97 conclude that the establishment of an EPB for an area would be likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area, and

(b) economic conditions in the area.

(2) The authorities may prepare and publish a scheme for the establishment of an EPB for the area (“the scheme area”).

(3) Subject as follows, the scheme area—

(a) must consist of or include the whole or any part of the review area,

(b) may include one or more other local government areas, and

(c) must meet conditions A to C in section 88.

(4) The scheme area may not include a local government area unless each appropriate authority for that area—

(a) participates in the preparation of the scheme, or

(b) consents to its inclusion in the scheme area.

(5) For this purpose—

(a) a county council is an appropriate authority for a local government area that is or forms part of the area of that county council;

(b) a district council is an appropriate authority for a local government area that is the area of that district council.

99 Requirements in connection with establishment of EPB

(1) The Secretary of State may make an order establishing an EPB for an area only if, having regard to a scheme prepared and published under section 98, the Secretary of State considers that to do so is likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area, and

(b) economic conditions in the area.

(2) Before making the order, the Secretary of State must consult—

(a) each appropriate authority, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(3) For the purposes of this section—

(a) a county council is an appropriate authority if the area of the county council, or part of that area, is within the area for which the EPB is to be established;

(b) a district council is an appropriate authority if the area of the district council is within the area for which the EPB is to be established.

(4) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

100 Review by authorities: existing EPB

(1) Any one or more of the authorities to whom this section applies may undertake, in relation to an existing EPB, a review of one or more EPB matters.

(2) This section applies to—

(a) an EPB;

(b) a county council whose area, or part of whose area, is within an area of an EPB or could be within a proposed area of an EPB;

(c) a district council whose area is within an area of an EPB or could be within a proposed area of an EPB.

(3) For the purposes of this section an “EPB matter” is—

(a) a matter in relation to which an order may be made under any of sections 89, 91, 92, 95 and 96;

(b) a matter concerning the EPB that the EPB has power to determine.

(4) The review must relate to one or more areas of an EPB or proposed areas of an EPB.

(5) In this section and section 101 a “proposed area of an EPB” means an area of an EPB that may be created by an order under section 95 (changes to boundaries of an EPB’s area).

101 Preparation and publication of scheme: existing EPB

(1) This section applies where one or more of the authorities that have undertaken a review under section 100 conclude that the exercise of the power to make an order under any one or more of sections 89, 91, 92, 95 and 96 would be likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in an area of an EPB or a proposed area of an EPB, or

(b) economic conditions in such an area.

(2) The authorities may prepare and publish a scheme relating to the power or powers in question.

(3) The reference in subsection (1) to an area of an EPB includes an area that would cease to be an area of an EPB if an order were made in relation to that area under section 96 (dissolution of an EPB’s area).

102 Requirements in connection with changes to existing EPB arrangements

(1) The Secretary of State may make an order under any of sections 89, 91, 92, 95 and 96 in relation to an existing EPB only if, having regard to a scheme prepared and published under section 101, the Secretary of State considers that the making of the order is likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area or areas to which the order relates, or

(b) economic conditions in that area or those areas.

(2) Before making the order, the Secretary of State must consult—

(a) such of the authorities mentioned in section 100(2), and

(b) such other persons (if any),

as the Secretary of State considers appropriate.

(3) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

Combined authorities and their areas

103 Combined authorities and their areas

(1) The Secretary of State may by order establish as a body corporate a combined authority for an area that meets the following conditions.

(2) Condition A is that the area consists of the whole of two or more local government areas in England.

(3) Condition B is that no part of the area is separated from the rest of it by one or more local government areas that are not within the area.

(4) Condition C is that there is no local government area that is surrounded by local government areas that are within the area but that is not itself within the area.

(5) Condition D is that no part of the area forms part of—

(a) the area of another combined authority,

(b) the area of an EPB, or

(c) an integrated transport area.

(6) Condition E is that each local government area that forms part of the area was included in a scheme prepared and published under section 109.

(7) An order under this section must specify the name by which the combined authority is to be known.

104 Constitution and functions: transport

(1) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an Integrated Transport Authority (an “ITA”) under the following provisions of the Local Transport Act 2008 (c. 26)—

(a) section 84 (constitutional arrangements);

(b) section 86 (delegation of functions of the Secretary of State);

(c) section 87 (delegation of local authority functions);

(d) section 88 (conferral of a power to direct).

(2) Section 85 of that Act (provision about membership of an ITA) applies to—

(a) an order under subsection (1)(a) of this section, and

(b) the combined authority to whom that order applies,

as it applies to an order under section 84 of that Act and the ITA to whom that order applies.

(3) The following provisions of that Act apply in relation to a combined authority on whom functions of a kind described in section 88 of that Act are conferred as they apply in relation to an ITA on whom such functions are conferred—

(a) section 88(10) (provisions about directions);

(b) section 89(2) and (3) (power to remedy contravention of direction).

(4) Section 97 of that Act (change of name of ITA) applies to a combined authority as it applies to an ITA.

(5) The Secretary of State may by order transfer functions of an ITA to a combined authority.

(6) An order under subsection (5) may only be made in relation to functions exercisable by the ITA in relation to an area that becomes, or becomes part of, the combined authority’s area by virtue of an order under this Part.

(7) The Secretary of State may by order provide for any function that is conferred or imposed on a Passenger Transport Executive by any enactment (whenever passed or made) to be exercisable by a combined authority or the executive body of a combined authority in relation to the combined authority’s area.

(8) An order under subsection (7) may make provision for any function that—

(a) is conferred or imposed on an ITA by any enactment (whenever passed or made), and

(b) relates to the functions of a Passenger Transport Executive,

to be exercisable by a combined authority in relation to the combined authority’s area.

105 Constitution and functions: economic development and regeneration

(1) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an EPB under section 91 (exercise of local authority functions).

(2) Subsection (5) of section 91 (duty to perform functions with a view to promoting economic development and regeneration) applies to the exercise of functions by a combined authority by virtue of subsection (1) of this section as it applies to the exercise of functions by an EPB by virtue of that section.

(3) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an EPB under section 92 (funding).

(4) An order under subsection (3) may make such provision only in relation to the costs of a combined authority that are reasonably attributable to the exercise of its functions relating to economic development and regeneration.

106 Changes to boundaries of a combined authority’s area

(1) The Secretary of State may by order change the boundaries of a combined authority’s area by—

(a) adding a local government area to an existing area of a combined authority, or

(b) removing a local government area from an existing area of a combined authority.

(2) An order may be made under this section only if—

(a) the area to be created by the order meets conditions A to D in section 103, and

(b) each council to whom this subsection applies consents to the making of the order.

(3) Subsection (2) applies to—

(a) a county council whose area, or part of whose area, is to be added to or removed from the existing area of the combined authority;

(b) a district council whose area is to be added to or removed from the existing area of the combined authority.

(4) Where by virtue of an order an area ceases to be part of the area of a combined authority, the order—

(a) must make provision for designating an authority to be a local transport authority for the area for the purposes of section 108(4) of the Transport Act 2000 (c. 38), and

(b) may transfer functions to that authority from the combined authority that was formerly the local transport authority.

(5) Provision made by virtue of subsection (4) may designate different authorities for different parts of the area.

(6) The reference in subsection (4)(a) to an authority does not include an ITA.

(7) Subsection (4) does not apply if the area becomes part of the integrated transport area of an ITA by virtue of an order under section 78 or 90 of the Local Transport Act 2008 (c. 26).

107 Dissolution of a combined authority’s area

(1) The Secretary of State may by order—

(a) dissolve a combined authority’s area, and

(b) abolish the combined authority for that area.

(2) An order may be made under this section only if a majority of the councils to whom this subsection applies consent to the making of the order.

(3) Subsection (2) applies to—

(a) a county council whose area, or part of whose area, is within the combined authority’s area;

(b) a unitary district council whose area is within the combined authority’s area.

(4) The order—

(a) must make provision for designating an authority to be a local transport authority for the area that was previously the combined authority’s area for the purposes of section 108(4) of the Transport Act 2000 (c. 38), and

(b) may transfer functions to that authority from the combined authority that was formerly the local transport authority.

(5) Provision made by virtue of subsection (4) may designate different authorities for different parts of the area.

(6) The reference in subsection (4)(a) to an authority does not include an ITA.

(7) Subsection (4) does not apply to a territory or part of a territory that becomes the integrated transport area or part of the integrated transport area of an ITA by virtue of an order under section 78 or 90 of the Local Transport Act 2008.

Requirements in connection with orders about combined authorities

108 Review by authorities: new combined authority

(1) Any two or more of the authorities to whom this section applies may undertake a review of—

(a) the effectiveness and efficiency of transport within the area covered by the review (“the review area”), and

(b) the effectiveness and efficiency of arrangements to promote economic development and regeneration within the review area.

(2) This section applies to—

(a) a county council in England;

(b) a district council in England;

(c) an EPB;

(d) an ITA.

(3) Where the review is being undertaken by a county council, the review area must include—

(a) the areas of one or more district councils that are within the area of the county council, or

(b) if there are no such areas, the area of the county council.

(4) Where the review is being undertaken by a district council, the review area must include the area of the district council.

(5) Where the review is being undertaken by an EPB, the review area must include one or more local government areas within the EPB’s area.

(6) Where the review is being undertaken by an ITA, the review area must include one or more local government areas within the ITA’s integrated transport area.

(7) The review area may also include the area of any county council or district council in England that does not constitute or fall within the area of an authority undertaking the review.

109 Preparation and publication of scheme: new combined authority

(1) This section applies where two or more of the authorities that have undertaken a review under section 108 conclude that the establishment of a combined authority for an area would be likely to improve—

(a) the exercise of statutory functions relating to transport in the area,

(b) the effectiveness and efficiency of transport in the area,

(c) the exercise of statutory functions relating to economic development and regeneration in the area, and

(d) economic conditions in the area.

(2) The authorities may prepare and publish a scheme for the establishment of a combined authority for the area (“the scheme area”).

(3) Subject as follows, the scheme area—

(a) must consist of or include the whole or any part of the review area,

(b) may include one or more other local government areas, and

(c) must meet conditions A to C in section 103.

(4) The scheme area may not include a local government area unless each appropriate authority for that area—

(a) participates in the preparation of the scheme, or

(b) consents to its inclusion in the scheme area.

(5) For this purpose—

(a) a county council is an appropriate authority for a local government area that is or forms part of the area of that county council;

(b) a district council is an appropriate authority for a local government area that is the area of that district council.

110 Requirements in connection with establishment of combined authority

(1) The Secretary of State may make an order establishing a combined authority for an area only if, having regard to a scheme prepared and published under section 109, the Secretary of State considers that to do so is likely to improve—

(a) the exercise of statutory functions relating to transport in the area,

(b) the effectiveness and efficiency of transport in the area,

(c) the exercise of statutory functions relating to economic development and regeneration in the area, and

(d) economic conditions in the area.

(2) Before making the order, the Secretary of State must consult—

(a) each appropriate authority, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(3) For the purposes of this section—

(a) a county council is an appropriate authority if the area of the county council, or part of that area, is within the area for which the combined authority is to be established;

(b) a district council is an appropriate authority if the area of the district council is within the area for which the combined authority is to be established;

(c) an EPB is an appropriate authority if the EPB’s area, or part of its area, is within the area for which the combined authority is to be established;

(d) an ITA is an appropriate authority if the ITA’s integrated transport area, or part of that area, is within the area for which the combined authority is to be established.

(4) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

111 Review by authorities: existing combined authority

(1) Any one or more of the authorities to whom this section applies may undertake, in relation to an existing combined authority, a review of one or more combined matters.

(2) This section applies to—

(a) a combined authority;

(b) a county council whose area, or part of whose area, is within an area of a combined authority or could be within a proposed area of a combined authority;

(c) a district council whose area is within an area of a combined authority or could be within a proposed area of a combined authority.

(3) For the purposes of this section a “combined matter” is—

(a) a matter in relation to which an order may be made under any of sections 104 to 107;

(b) in relation to the combined authority or any executive body of the combined authority, where that body exists at the time of the review, a matter concerning the combined authority or the executive body that the combined authority has power to determine.

(4) The review must relate to one or more areas of a combined authority or proposed areas of a combined authority.

(5) In this section and section 112 a “proposed area of a combined authority” means an area of a combined authority that may be created by an order under section 106 (changes to boundaries of a combined authority’s area).

112 Preparation and publication of scheme: existing combined authority

(1) This section applies where one or more of the authorities that have undertaken a review under section 111 conclude that the exercise of the power to make an order under any one or more of sections 104 to 107 would be likely to improve—

(a) the exercise of statutory functions relating to transport in an area of a combined authority or a proposed area of a combined authority,

(b) the effectiveness and efficiency of transport in such an area,

(c) the exercise of statutory functions relating to economic development and regeneration in such an area, or

(d) economic conditions in such an area.

(2) The authorities may prepare and publish a scheme relating to the exercise of the power or powers in question.

(3) The reference in subsection (1) to an area of a combined authority includes an area that would cease to be an area of a combined authority if an order were made in relation to that area under section 107 (dissolution of a combined authority’s area).

113 Requirements in connection with changes to existing combined arrangements

(1) The Secretary of State may make an order under any of sections 104 to 107 in relation to an existing combined authority only if, having regard to a scheme prepared and published under section 112, the Secretary of State considers that the making of the order is likely to improve—

(a) the exercise of statutory functions relating to transport in the area or areas to which the order relates,

(b) the effectiveness and efficiency of transport in that area or those areas,

(c) the exercise of statutory functions relating to economic development and regeneration in that area or those areas, or

(d) economic conditions in that area or those areas.

(2) Before making the order, the Secretary of State must consult—

(a) such of the authorities mentioned in section 111(2), and

(b) such other persons (if any),

as the Secretary of State considers appropriate.

(3) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

Supplementary

114 Incidental etc provision

(1) The Secretary of State may by order make incidental, consequential, transitional or supplementary provision for the purposes of, or in consequence of, an order under this Part or for giving full effect to such an order.

(2) An order under this section may include provision amending, applying (with or without modifications), disapplying, repealing or revoking any enactment, whenever passed or made.

(3) The provision that may be included by virtue of subsection (2) includes provision applying, with modifications, or disapplying any enactment amended by Schedule 6.

(4) An order under this section may not include provision amending or disapplying sections 15 to 17 of, and Schedule 1 to, the Local Government and Housing Act 1989 (c. 42) (political balance on local authority committees etc).

115 Transfer of property, rights and liabilities

(1) The Secretary of State may by order make provision for the transfer of property, rights and liabilities for the purposes of, or in consequence of, an order under this Part or for giving full effect to such an order.

(2) Property, rights and liabilities may be transferred by—

(a) the order,

(b) a scheme made by the Secretary of State under the order, or

(c) a scheme required to be made under the order by a person other than the Secretary of State.

(3) A transfer by virtue of this section may have effect—

(a) whether or not the property, rights and liabilities would otherwise be capable of being transferred;

(b) without any instrument or formality being required.

(4) The rights and liabilities which may be transferred by virtue of this section include rights and liabilities in relation to a contract of employment.

(5) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) apply to the transfer by virtue of this section (whether or not the transfer is a relevant transfer for the purposes of those regulations).

(6) An order under this section or a scheme made under it may define the property, rights and liabilities to be transferred by specifying or describing them.

(7) Provision for the transfer of property, rights and liabilities made by virtue of this section may include provision—

(a) for the creation or imposition by the Secretary of State of new rights or liabilities in respect of anything transferred;

(b) for the shared ownership or use of any property or facilities;

(c) for the management or custody of transferred property;

(d) for bodies to make agreements with respect to any property, income, rights, liabilities and expenses of, and any financial relations between, the parties to the agreement.

(8) Provision for the transfer of property, rights and liabilities made by virtue of this section may include provision—

(a) for the continuing effect of things done by the transferor in relation to anything transferred;

(b) for the continuation of things (including legal proceedings) in the process of being done, by or on behalf of or in relation to the transferor in relation to anything transferred;

(c) for references to the transferor in any agreement (whether written or not), instrument or other document in relation to anything transferred to be treated (so far as necessary for the purposes of or in consequence of the transfer) as references to the transferee.

116 Consequential amendments

(1) The Secretary of State may by order make such provision as the Secretary of State considers appropriate in consequence of any provision made by this Part.

(2) The power conferred in subsection (1) includes power to amend, repeal or revoke provision contained in an enactment passed or made before the day on which this Act is passed.

117 Orders

(1) Orders under this Part must be made by statutory instrument.

(2) Subject to subsection (3), a statutory instrument containing an order under this Part may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(3) A statutory instrument containing only an order under section 116 that amends or revokes provision contained in an instrument subject to annulment by resolution of either House of Parliament is subject to annulment by such resolution.

(4) If a draft of an order under this Part would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.

118 Guidance

(1) The Secretary of State may give guidance about anything that could be done by an authority to whom this section applies under or by virtue of this Part.

(2) An authority to whom this section applies must have regard to any guidance given under this section in exercising any function conferred or imposed by or by virtue of this Part.

(3) Any guidance under this section must be given in writing and may be varied or revoked by further guidance in writing.

(4) Any such guidance may make different provision for different cases and different provision for different areas.

(5) This section applies to—

(a) a county council;

(b) a district council;

(c) an EPB;

(d) an ITA;

(e) a combined authority.

119 Amendments relating to EPBs and combined authorities

Schedule 6 (amendments relating to EPBs and combined authorities) is part of this Part.

120 Interpretation

In this Part—

• “combined authority” means an authority established under section 103(1);

• “EPB” has the meaning given by section 88(1);

• “ITA” has the meaning given by section 104(1);

• “local government area” has the meaning given by section 88(7);

• “unitary district council” has the meaning given by section 90(4).

Part 7 Multi-area agreements

Basic concepts

121 Multi-area agreements

(1) This Part makes provision about multi-area agreements.

(2) In this Part “multi-area agreement” means a document that—

(a) covers an area for which there are two or more local authorities (see section 122), and

(b) specifies improvement targets for that area.

(3) Any part of the area may be separated from any other part by territory that is not part of the area.

(4) In this Part “improvement target” means a target for improvement in the economic, social or environmental well-being of the whole or any part of the area covered by a multi-area agreement and which relates to any or all of the following—

(a) one or more local authorities for that area;

(b) one or more partner authorities for that area (see section 123);

(c) one or more other persons acting, or having functions exercisable, in that area.

(5) For the purposes of this Part, a target specified in a multi-area agreement relates to a person if—

(a) the exercise of any of that person’s functions, or anything done by that person, could contribute to the attainment of the target, and

(b) that person has consented to the application of the target to that person.

(6) A person is taken to have consented to the application of a target to that person if—

(a) that person has consented to the target being specified in the agreement, or

(b) where the target has been changed, that person has consented to the change.

122 Local authorities

(1) Each of the following is a local authority for the purposes of this Part—

(a) a county council in England;

(b) a district council in England;

(c) a London borough council;

(d) the Council of the Isles of Scilly;

(e) the Common Council of the City of London in its capacity as a local authority;

(f) an economic prosperity board established under section 88 or a combined authority established under section 103.

(2) For the purposes of this Part, a local authority is an authority for an area if the whole or any part of the local authority’s area coincides with or falls within that area.

123 Partner authorities

(1) For the purposes of this Part, each of the following is a partner authority for an area—

(a) any person mentioned in subsection (2), where the whole or any part of the area for which the person acts or is established coincides with or falls within that area,

(b) a person mentioned in subsection (3), where the person provides services at or from a hospital or other establishment or facility in that area,

(c) any person mentioned in subsection (4), and

(d) where the area includes the area of a London borough council or the Common Council of the City of London, Transport for London.

(2) The persons referred to in subsection (1)(a) are—

(a) a fire and rescue authority which is not a local authority;

(b) a National Park authority;

(c) the Broads Authority;

(d) a police authority;

(e) a chief officer of police;

(f) a joint waste authority established under section 207(1) of the Local Government and Public Involvement in Health Act 2007 (c. 28);

(g) a waste disposal authority established under section 10 of the Local Government Act 1985 (c. 51);

(h) an Integrated Transport Authority;

(i) a Primary Care Trust;

(j) a development agency established by section 1 of the Regional Development Agencies Act 1998 (c. 45);

(k) a local probation board or a probation trust;

(l) a youth offending team.

(3) The persons referred to in subsection (1)(b) are—

(a) a National Health Service trust;

(b) an NHS foundation trust.

(4) The persons referred to in subsection (1)(c) are—

(a) the Arts Council of England;

(b) the English Sports Council;

(c) the Environment Agency;

(d) the Health and Safety Executive;

(e) the Historic Buildings and Monuments Commission;

(f) the Homes and Communities Agency;

(g) the Learning and Skills Council for England;

(h) the Museums, Libraries and Archives Council;

(i) Natural England;

(j) the Secretary of State in so far as the Secretary of State has functions—

(i) under section 2 of the Employment and Training Act 1973 (c. 50) (arrangements with respect to obtaining etc employment or employees),

(ii) as highway authority by virtue of section 1 of the Highways Act 1980 (c. 66),

(iii) as traffic authority by virtue of section 121A of the Road Traffic Regulation Act 1984 (c. 27), or

(iv) under sections 2 and 3 of the Offender Management Act 2007 (c. 21) (responsibility for ensuring the provision of probation services throughout England and Wales).

(5) The Secretary of State may by order—

(a) amend subsection (2), (3) or (4) so as to—

(i) add to it any person who has functions of a public nature, or

(ii) remove from it any person for the time being mentioned in it;

(b) amend subsection (4)(j) so as to—

(i) add to it any function of the Secretary of State, or

(ii) remove from it any function for the time being mentioned in it;

(c) make such other amendments of this section as appear to the Secretary of State to be necessary or expedient in consequence of provision made by paragraph (a) or (b).

(6) Before making an order under subsection (5) the Secretary of State must consult—

(a) such representatives of local government as the Secretary of State considers appropriate, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(7) An order under subsection (5) must be made by statutory instrument.

(8) A statutory instrument containing an order under subsection (5) is subject to annulment in pursuance of a resolution of either House of Parliament.

(9) For the purposes of subsection (2)(e), a chief officer of police acts and is established for the area of the chief officer’s police force.

(10) The Secretary of State’s functions under this Part by virtue of subsection (4)(j)(iv) are functions to which section 2(1)(c) of the Offender Management Act 2007 (functions to be performed through arrangements under section 3 of that Act) applies.

Preparation and approval of multi-area agreements

124 Proposal for multi-area agreement

(1) The local authorities for an area proposed to be covered by a multi-area agreement (“the proposed area”) may request the Secretary of State to give a direction under section 125 for the preparation and submission of a draft multi-area agreement for the proposed area.

(2) The local authorities making the request—

(a) must include all of the local authorities for the proposed area, other than any non-unitary district council for that area;

(b) may include any non-unitary district council for that area.

(3) In this Part “non-unitary district council” means a district council for an area that is part of the area of a county council.

(4) The request must be made in writing and must—

(a) identify the local authorities making the request,

(b) nominate one of them to be responsible for preparing and submitting the draft, and

(c) identify the proposed area.

(5) The local authorities making the request must have regard to any guidance issued by the Secretary of State about such requests.

125 Direction to prepare and submit draft multi-area agreement

(1) If a request is made in accordance with section 124, the Secretary of State may direct the responsible authority to prepare a draft multi-area agreement for the proposed area and submit it to the Secretary of State.

(2) The draft must specify, in relation to each improvement target—

(a) the persons or persons to whom the target relates, and

(b) where the target does not relate to the whole of the proposed area, the part or parts of the area to which it relates.

(3) The draft must specify the period for which the multi-area agreement is to have effect.

(4) A direction under this section—

(a) may specify the date by which the draft must be submitted to the Secretary of State;

(b) may be varied or revoked.

126 Preparation of draft multi-area agreement

(1) In preparing a draft multi-area agreement in accordance with a direction under section 125, the responsible authority must consult—

(a) each of the other local authorities for the proposed area,

(b) each partner authority for that area, and

(c) such other persons as appear to it to be appropriate.

(2) In preparing the draft, the responsible authority must co-operate with—

(a) each of the other local authorities for the proposed area, and

(b) each partner authority for that area,

in determining the improvement targets relating to that local authority or partner authority that are to be specified in the draft.

(3) In preparing the draft, the responsible authority must have regard to any guidance issued by the Secretary of State.

(4) In determining the improvement targets relating to it which are to be specified in the draft, each of the other local authorities, and each partner authority, for the proposed area must—

(a) co-operate with the responsible authority, and

(b) have regard to any guidance issued by the Secretary of State.

127 Approval of draft multi-area agreement

(1) If a draft multi-area agreement is submitted to the Secretary of State under section 125, the Secretary of State may by notice in writing to the responsible authority—

(a) approve the draft,

(b) require the responsible authority to modify the draft, or

(c) reject the draft.

(2) If the Secretary of State approves a draft multi-area agreement, a multi-area agreement in the form of the draft has effect for the period specified in it.

(3) A requirement to modify a draft multi-area agreement operates for the purposes of section 125 as a direction under that section to prepare and submit a further draft of a multi-area agreement.

(4) If the Secretary of State rejects a draft multi-area agreement, the Secretary of State may not give a further direction under section 125 based on the same request under section 124.

128 Submission of existing multi-area agreement

(1) This section applies to a multi-area agreement prepared otherwise than in accordance with a direction under section 125.

(2) The local authorities for the area covered by the agreement may—

(a) submit the agreement to the Secretary of State, and

(b) request the Secretary of State to approve the agreement under section 129.

(3) The local authorities making the request—

(a) must include all of the local authorities for the area covered by the agreement, other than any non-unitary district council for that area;

(b) may include any non-unitary district council for that area.

(4) Before making the request, the local authorities must consult—

(a) any other local authority for the area covered by the agreement, and

(b) each partner authority for that area.

(5) The agreement must specify, in relation to each improvement target—

(a) the persons or persons to whom the target relates, and

(b) where the target does not relate to the whole of the proposed area, the part or parts of the area to which it relates.

(6) The agreement must specify the period for which it has effect.

(7) The request must be made in writing and must—

(a) identify the local authorities making the request,

(b) nominate one of them as the responsible authority in relation to the agreement,

(c) identify the area covered by the agreement, and

(d) provide information about the outcome of the consultation under subsection (4).

(8) The local authorities making the request must have regard to any guidance issued by the Secretary of State about such requests.

129 Approval of existing multi-area agreement

(1) If a multi-area agreement is submitted to the Secretary of State in accordance with section 128, the Secretary of State may approve the agreement by notice in writing to the responsible authority.

(2) An agreement approved under this section has effect for the purposes of this Part for the period specified in it.

Effect of multi-area agreements

130 Duty to have regard to improvement targets

Where a multi-area agreement has effect by virtue of section 127 or 129—

(a) each local authority for the area covered by the agreement, and

(b) each partner authority for that area,

must, in exercising its functions, have regard to every improvement target specified in the agreement that relates to it.

Revision of multi-area agreements

131 Responsible authorities

(1) Subject as follows, in this Part “the responsible authority”, in relation to a multi-area agreement, means—

(a) the authority that prepared the draft of the agreement, or

(b) in the case of an agreement approved under section 129, the authority nominated under section 128 in relation to the agreement.

(2) The local authorities to which the targets specified in a multi-area agreement relate may request the Secretary of State to agree to another one of those authorities becoming the responsible authority in relation to the agreement.

(3) A request under subsection (2) must be made in writing.

132 Revision proposals

(1) At any time while a multi-area agreement has effect by virtue of section 127 or 129, the responsible authority—

(a) may prepare and submit to the Secretary of State a revision proposal, and

(b) must do so if the Secretary of State so directs.

(2) In this Part “revision proposal”, in relation to a multi-area agreement, means a document proposing any or all of the following—

(a) the enlargement of the area covered by the agreement;

(b) changes to improvement targets specified in the agreement;

(c) the removal of improvement targets from the agreement;

(d) the addition of improvement targets to the agreement;

(e) the extension of the period specified in the agreement for which the agreement has effect.

(3) A revision proposal that proposes changes to an improvement target must specify—

(a) each person to whom the target relates, and

(b) where it does not relate to the whole of the area covered by the agreement, the part or parts of the area to which it relates.

(4) A revision proposal that proposes the addition of an improvement target must specify—

(a) each person to whom the target would relate, and

(b) where the target would not relate to the whole of the area covered by the agreement, the part or parts of the area to which it would relate.

(5) A direction under this section—

(a) may specify the date by which a revision proposal must be submitted to the Secretary of State;

(b) may be varied or revoked.

133 Preparation of revision proposal

(1) In preparing a revision proposal, the responsible authority must consult—

(a) each of the other local authorities for the area that would be covered by the multi-area agreement if the revision proposal were approved (“the agreement area”),

(b) each partner authority for that area, and

(c) such other persons as appear to it to be appropriate.

(2) In preparing a revision proposal, the responsible authority must co-operate with—

(a) each of the other local authorities for the agreement area, and

(b) each partner authority for that area,

in determining a change affecting that local authority or partner authority that is to be proposed by the revision proposal.

(3) In preparing a revision proposal, the responsible authority must have regard to any guidance issued by the Secretary of State.

(4) In determining a change affecting it that is to be proposed by the revision proposal, each of the other local authorities, and each partner authority, for the agreement area must—

(a) co-operate with the responsible authority, and

(b) have regard to any guidance issued by the Secretary of State.

134 Approval of revision proposal

(1) If a revision proposal relating to a multi-area agreement is submitted to the Secretary of State under section 132, the Secretary of State may by notice in writing to the responsible authority—

(a) approve the revision proposal,

(b) if the revision proposal was submitted to the Secretary of State pursuant to a direction under section 132(1)(b), require the responsible authority to modify the revision proposal, or

(c) reject the revision proposal.

(2) If the Secretary of State approves the revision proposal, the multi-area agreement has effect subject to the changes set out in the revision proposal.

(3) A requirement to modify a revision proposal operates for the purposes of section 132 as a direction under subsection (1)(b) of that section to prepare and submit a further revision proposal.

Information about multi-area agreements

135 Duty to publish information about multi-area agreement

(1) If a multi-area agreement is approved under section 127 or 129, the responsible authority must publish such information about the agreement as the authority considers appropriate.

(2) If a revision proposal is approved under section 134, the responsible authority must publish such information about the revisions to the multi-area agreement as revised by the revision proposal as the authority considers appropriate.

(3) Information required to be published under this section may be published in such manner as the responsible authority considers appropriate.

Supplementary and general

136 Consultation on guidance

(1) Before issuing guidance under this Part, the Secretary of State must consult—

(a) such representatives of local government, and

(b) such other persons (if any),

as the Secretary of State considers appropriate.

(2) The reference in subsection (1) to representatives of local government includes representatives of any persons who are, or are capable of being, partner authorities for the area covered by a multi-area agreement.

137 Interpretation

In this Part—

• “the agreement area” has the meaning given by section 133(1);

• “improvement target” has the meaning given by section 121(4);

• “local authority” has the meaning given by section 122;

• “multi-area agreement” has the meaning given by section 121(2);

• “non-unitary district council” has the meaning given by section 124(3);

• “partner authority” has the meaning given by section 123;

• “the proposed area” has the meaning given by section 124(1);

• “the responsible authority”, in relation to a draft multi-area agreement, means the local authority nominated under section 124(4) to be responsible for preparing and submitting the draft;

• “the responsible authority”, in relation to a multi-area agreement, has the meaning given by section 131;

• “revision proposal” has the meaning given by section 132(2).

Part 8 Construction contracts

138 Application of construction contracts legislation

(1) The Housing Grants, Construction and Regeneration Act 1996 (c. 53) is amended as follows.

(2) In section 106 (provisions not applicable to contract with residential occupiers), in subsection (1), omit paragraph (b) and the preceding “or”.

(3) After that section insert—

“106A Power to disapply provisions of this Part

(1) The Secretary of State may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations (not being operations in Wales) which is specified in the order.

(2) The Welsh Ministers may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations in Wales which is specified in the order.

(3) The Scottish Ministers may by order provide that any or all of the provisions of this Part, so far as extending to Scotland, shall not apply to any description of construction contract which is specified in the order.

(4) An order under this section shall not be made unless a draft of it has been laid before and approved by resolution of—

(a) in the case of an order under subsection (1), each House of Parliament;

(b) in the case of an order under subsection (2), the National Assembly for Wales;

(c) in the case of an order under subsection (3), the Scottish Parliament.”

(4) In section 146 (orders etc)—

(a) in subsection (2), for “Secretary of State” substitute “the authority making them”;

(b) in subsection (3)(a), after “106(4)” insert “, 106A”.

139 Requirement for construction contracts to be in writing

(1) In the Housing Grants, Construction and Regeneration Act 1996, section 107 (provisions applicable only to contracts in writing) is repealed.

(2) In section 108 of that Act (right to refer disputes to adjudication)—

(a) in subsection (2), after “The contract shall” insert “include provision in writing so as to”;

(b) in subsections (3) and (4), after “provide” insert “in writing”.

140 Adjudicator’s power to make corrections

In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), in section 108 (right to refer disputes to adjudication), after subsection (3) insert—

“(3A) The contract shall include provision in writing permitting the adjudicator to correct his decision so as to remove a clerical or typographical error arising by accident or omission.”

141 Adjudication costs

In the Housing Grants, Construction and Regeneration Act 1996, after section 108 insert—

“108A Adjudication costs: effectiveness of provision

(1) This section applies in relation to any contractual provision made between the parties to a construction contract which concerns the allocation as between those parties of costs relating to the adjudication of a dispute arising under the construction contract.

(2) The contractual provision referred to in subsection (1) is ineffective unless—

(a) it is made in writing, is contained in the construction contract and confers power on the adjudicator to allocate his fees and expenses as between the parties, or

(b) it is made in writing after the giving of notice of intention to refer the dispute to adjudication.”

142 Determination of payments due

(1) In the Housing Grants, Construction and Regeneration Act 1996, section 110 (dates for payment) is amended as follows.

(2) After subsection (1) insert—

“(1A) The requirement in subsection (1)(a) to provide an adequate mechanism for determining what payments become due under the contract, or when, is not satisfied where a construction contract makes payment conditional on—

(a) the performance of obligations under another contract, or

(b) a decision by any person as to whether obligations under another contract have been performed.

(1B) In subsection (1A)(a) and (b) the references to obligations do not include obligations to make payments (but see section 113).

(1C) Subsection (1A) does not apply where—

(a) the construction contract is an agreement between the parties for the carrying out of construction operations by another person, whether under sub-contract or otherwise, and

(b) the obligations referred to in that subsection are obligations on that other person to carry out those operations.”

(3) After subsection (1C) (as inserted by subsection (2) above) insert—

“(1D) The requirement in subsection (1)(a) to provide an adequate mechanism for determining when payments become due under the contract is not satisfied where a construction contract provides for the date on which a payment becomes due to be determined by reference to the giving to the person to whom the payment is due of a notice which relates to what payments are due under the contract.”

143 Notices relating to payment

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), in section 109 (entitlement to stage payments), in subsection (4), for “under the contract” substitute “provided for by the contract”.

(2) In section 110 of that Act (dates for payment), omit the following—

(a) subsection (2), and

(b) in subsection (3), “or (2)”.

(3) After section 110 of that Act insert—

“110A Payment notices: contractual requirements

(1) A construction contract shall, in relation to every payment provided for by the contract—

(a) require the payer or a specified person to give a notice complying with subsection (2) to the payee not later than five days after the payment due date, or

(b) require the payee to give a notice complying with subsection (3) to the payer or a specified person not later than five days after the payment due date.

(2) A notice complies with this subsection if it specifies—

(a) in a case where the notice is given by the payer—

(i) the sum that the payer considers to be or to have been due at the payment due date in respect of the payment, and

(ii) the basis on which that sum is calculated;

(b) in a case where the notice is given by a specified person—

(i) the sum that the payer or the specified person considers to be or to have been due at the payment due date in respect of the payment, and

(ii) the basis on which that sum is calculated.

(3) A notice complies with this subsection if it specifies—

(a) the sum that the payee considers to be or to have been due at the payment due date in respect of the payment, and

(b) the basis on which that sum is calculated.

(4) For the purposes of this section, it is immaterial that the sum referred to in subsection (2)(a) or (b) or (3)(a) may be zero.

(5) If or to the extent that a contract does not comply with subsection (1), the relevant provisions of the Scheme for Construction Contracts apply.

(6) In this and the following sections, in relation to any payment provided for by a construction contract—

• “payee” means the person to whom the payment is due;

• “payer” means the person from whom the payment is due;

• “payment due date” means the date provided for by the contract as the date on which the payment is due;

• “specified person” means a person specified in or determined in accordance with the provisions of the contract.

110B Payment notices: payee’s notice in default of payer’s notice

(1) This section applies in a case where, in relation to any payment provided for by a construction contract—

(a) the contract requires the payer or a specified person to give the payee a notice complying with section 110A(2) not later than five days after the payment due date, but

(b) notice is not given as so required.

(2) Subject to subsection (4), the payee may give to the payer a notice complying with section 110A(3) at any time after the date on which the notice referred to in subsection (1)(a) was required by the contract to be given.

(3) Where pursuant to subsection (2) the payee gives a notice complying with section 110A(3), the final date for payment of the sum specified in the notice shall for all purposes be regarded as postponed by the same number of days as the number of days after the date referred to in subsection (2) that the notice was given.

(4) If—

(a) the contract permits or requires the payee, before the date on which the notice referred to in subsection (1)(a) is required by the contract to be given, to notify the payer or a specified person of—

(i) the sum that the payee considers will become due on the payment due date in respect of the payment, and

(ii) the basis on which that sum is calculated, and

(b) the payee gives such notification in accordance with the contract,

that notification is to be regarded as a notice complying with section 110A(3) given pursuant to subsection (2) (and the payee may not give another such notice pursuant to that subsection).”

144 Requirement to pay notified sum

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), for section 111 (notice of intention to withhold payment) substitute—

“111 Requirement to pay notified sum

(1) Subject as follows, where a payment is provided for by a construction contract, the payer must pay the notified sum (to the extent not already paid) on or before the final date for payment.

(2) For the purposes of this section, the “notified sum” in relation to any payment provided for by a construction contract means—

(a) in a case where a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice;

(b) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice;

(c) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with section 110B(2), the amount specified in that notice.

(3) The payer or a specified person may in accordance with this section give to the payee a notice of the payer’s intention to pay less than the notified sum.

(4) A notice under subsection (3) must specify—

(a) the sum that the payer considers to be due on the date the notice is served, and

(b) the basis on which that sum is calculated.

It is immaterial for the purposes of this subsection that the sum referred to in paragraph (a) or (b) may be zero.

(5) A notice under subsection (3)—

(a) must be given not later than the prescribed period before the final date for payment, and

(b) in a case referred to in subsection (2)(b) or (c), may not be given before the notice by reference to which the notified sum is determined.

(6) Where a notice is given under subsection (3), subsection (1) applies only in respect of the sum specified pursuant to subsection (4)(a).

(7) In subsection (5), “prescribed period” means—

(a) such period as the parties may agree, or

(b) in the absence of such agreement, the period provided by the Scheme for Construction Contracts.

(8) Subsection (9) applies where in respect of a payment—

(a) a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract (and no notice under subsection (3) is given), or

(b) a notice under subsection (3) is given in accordance with this section,

but on the matter being referred to adjudication the adjudicator decides that more than the sum specified in the notice should be paid.

(9) In a case where this subsection applies, the decision of the adjudicator referred to in subsection (8) shall be construed as requiring payment of the additional amount not later than—

(a) seven days from the date of the decision, or

(b) the date which apart from the notice would have been the final date for payment,

whichever is the later.

(10) Subsection (1) does not apply in relation to a payment provided for by a construction contract where—

(a) the contract provides that, if the payee becomes insolvent the payer need not pay any sum due in respect of the payment, and

(b) the payee has become insolvent after the prescribed period referred to in subsection (5)(a).

(11) Subsections (2) to (5) of section 113 apply for the purposes of subsection (10) of this section as they apply for the purposes of that section.”

(2) In section 112 of that Act (right to suspend performance for non-payment)—

(a) in subsection (1), for the words from “Where” to “given” substitute “Where the requirement in section 111(1) applies in relation to any sum but is not complied with,”;

(b) in subsection (3), for “the amount due” substitute “the sum referred to in subsection (1)”.

145 Suspension of performance for non-payment

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section 112 (right to suspend performance for non-payment) is amended as follows.

(2) In subsection (1), after “performance of” insert “any or all of”.

(3) After subsection (3) insert—

“(3A) Where the right conferred by this section is exercised, the party in default shall be liable to pay to the party exercising the right a reasonable amount in respect of costs and expenses reasonably incurred by that party as a result of the exercise of the right.”

(4) In subsection (4), after “pursuance of” insert “, or in consequence of the exercise of,”.

Part 9 Final

146 Repeals

(1) Schedule 7 contains repeals.

(2) The repeal by this Act of sections 17, 19 and 26 of the Local Government Act 1992 (c. 19) does not affect the continuing effect of orders and regulations made under those sections.

(3) For the purposes of this Act—

(a) the repeals in Part 1 of Schedule 7 are part of Chapter 6 of Part 1 (politically restricted posts);

(b) the repeal in Part 2 of Schedule 7 is part of Chapter 3 of Part 2 (audit of entities connected with local authorities);

(c) the repeals in Part 3 of Schedule 7 are part of Part 3 (local government boundary and electoral change);

(d) the repeals in Part 4 of Schedule 7 are part of Part 5 (regional strategy);

(e) the repeals in Part 5 of Schedule 7 are part of Part 8 (construction contracts).

147 Extent

(1) Parts 1 to 7 extend to England and Wales only, except that—

(a) an amendment or repeal effected by any of those Parts has the same extent as the provision amended or repealed, and

(b) sections 67(2) to (6), 85(2) to (6), 114, 116 and 117 (powers to make consequential provision etc) extend also to Scotland and Northern Ireland.

Paragraph (a) does not apply to Chapter 6 of Part 1 (which accordingly extends to England and Wales only).

(2) Part 8 extends to England and Wales and Scotland.

(3) This Part extends to England and Wales, Scotland and Northern Ireland.

148 Commencement: general

(1) In Part 1 (democracy and involvement)—

(a) Chapters 1 and 2 come into force—

(i) in relation to England, on a day appointed by the Secretary of State;

(ii) in relation to Wales, on a day appointed by the Welsh Ministers;

(b) Chapter 3 comes into force on a day appointed by the Secretary of State;

(c) Chapter 4 comes into force on the day on which this Act is passed;

(d) Chapters 5 and 6 come into force at the end of the period of two months beginning with the day on which this Act is passed.

(2) In Part 2 (local authorities: governance and audit)—

(a) in Chapter 1—

(i) section 31 comes into force on a day appointed by the Secretary of State;

(ii) sections 32 and 33 come into force at the end of the period of two months beginning with the day on which this Act is passed;

(b) Chapters 2 and 3 come into force—

(i) in relation to England, on a day appointed by the Secretary of State;

(ii) in relation to Wales, on a day appointed by the Welsh Ministers.

(3) In Part 3 (local government boundary and electoral change)—

(a) sections 62, 64 and 68 and Schedule 3 come into force on the day on which this Act is passed;

(b) the remaining provisions come into force on a day appointed by the Secretary of State.

(4) Part 4 (local authority economic assessment) comes into force on a day appointed by the Secretary of State.

(5) Part 5 (regional strategy) comes into force on a day appointed by the Secretary of State.

(6) Part 6 (economic prosperity boards and combined authorities) comes into force on a day appointed by the Secretary of State.

(7) Part 7 (multi-area agreements) comes into force at the end of the period of two months beginning with the day on which this Act is passed.

(8) Part 8 (construction contracts) comes into force as specified in section 149.

(9) This Part comes into force on the day on which this Act is passed.

(10) Any power to appoint a day under this section—

(a) includes power to appoint different days for different purposes;

(b) includes power to make transitional provision or savings;

(c) is to be exercised by order made by statutory instrument.

149 Commencement: construction contracts

(1) Part 8 comes into force, so far as extending to England and Wales—

(a) on a day appointed by the Welsh Ministers, in relation to construction contracts which relate to the carrying out of construction operations in Wales;

(b) on a day appointed by the Secretary of State, in relation to other construction contracts.

(2) Part 8 comes into force, so far as extending to Scotland, on a day appointed by the Scottish Ministers.

(3) The amendments made by Part 8, so far as extending to England and Wales, do not apply—

(a) in relation to construction contracts which relate to the carrying out of construction operations in Wales and are entered into before the day appointed under subsection (1)(a), or

(b) in relation to other construction contracts which are entered into before the day appointed under subsection (1)(b).

(4) The amendments made by Part 8, so far as extending to Scotland, do not apply in relation to construction contracts which are entered into before the day appointed under subsection (2).

(5) In this section “construction contracts” and “construction operations” have the same meanings as in Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53).

(6) Any power to appoint a day under this section—

(a) includes power to appoint different days for different purposes;

(b) includes power to make transitional provision or savings;

(c) is to be exercised by order made by statutory instrument.

150 Short title

This Act may be cited as the Local Democracy, Economic Development and Construction Act 2009.