(1)The Secretary of State may by order specify—
(a)factors (“performance indicators”) by reference to which a best value authority’s performance in exercising functions can be measured;
(b)standards (“performance standards”) to be met by best value authorities in relation to performance indicators specified under paragraph (a).
(2)An order may specify different performance indicators or standards—
(a)for different functions;
(b)for different authorities;
(c)to apply at different times.
(3)Before specifying performance indicators or standards the Secretary of State shall consult—
(a)persons appearing to him to represent the best value authorities concerned, and
(b)such other persons (if any) as he thinks fit.
(4)In specifying performance indicators and standards, and in deciding whether to do so, the Secretary of State—
(a)shall aim to promote improvement of the way in which the functions of best value authorities are exercised, having regard to a combination of economy, efficiency and effectiveness, and
(b)shall have regard to any recommendations made to him by the Audit Commission.
(5)In exercising a function a best value authority must meet any applicable performance standard specified under subsection (1)(b).