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Local Government and Public Involvement in Health Act 2007

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Chapter 2E+WControl of disposals etc

24Authorities dissolved by orders: control of disposals, contracts and reservesE+W

(1)The Secretary of State may direct that, with effect from a date specified in the direction, a relevant authority may not without the written consent of a person or persons so specified—

(a)dispose of any land if the consideration for the disposal exceeds £100,000;

(b)enter into any capital contract—

(i)under which the consideration payable by the relevant authority exceeds £1,000,000; or

(ii)which includes a term allowing the consideration payable by the relevant authority to be varied;

(c)enter into any non-capital contract under which the consideration payable by the relevant authority exceeds £100,000, where—

(i)the period of the contract extends beyond a date specified in the direction; or

(ii)under the terms of the contract, that period may be extended beyond that date; or

(d)include an amount of financial reserves in a calculation under section 32(3) or 43(3) of the Local Government Finance Act 1992 (c. 14).

(2)In this Chapter “relevant authority” means a local authority—

(a)which by virtue of an order under section 7 or 10 is to be dissolved; and

(b)which is specified, or of a description specified, in the direction.

(3)In this section—

  • capital contract” means a contract as regards which the consideration payable by the relevant authority would be capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (c. 26) (capital finance);

  • non-capital contract” means a contract which is not a capital contract.

(4)A person specified in the direction as a person whose consent is required may be the Secretary of State or such authority or other person as he thinks appropriate; and the direction may specify different persons—

(a)in relation to different matters for which consent is required;

(b)in relation to different relevant authorities or descriptions of relevant authority.

25Directions: further provision about reservesE+W

(1)A direction under section 24—

(a)may provide that the consent of the person or persons specified in the direction is not required for the inclusion, in a calculation under section 32(3) or 43(3) of the Local Government Finance Act 1992, of financial reserves of a description specified in the direction;

(b)may, in relation to any authority or description of authority, provide that that consent is not required for the inclusion in such a calculation of an amount of financial reserves not exceeding an amount specified in or determined under the direction.

(2)If a direction contains provision by virtue of subsection (1), the reference in section 24(1)(d) to an amount of financial reserves is to be read as a reference to an amount of financial reserves other than an amount permitted by the direction.

26Directions: supplementaryE+W

(1)In this section “direction” means a direction under section 24.

(2)A consent for the purposes of a direction may be given—

(a)in respect of a particular disposal or contract, or in respect of disposals or contracts of any description;

(b)unconditionally or subject to conditions.

(3)The following enactments have effect subject to any direction—

(a)section 123 of the Local Government Act 1972 (c. 70) (power to dispose of land);

(b)any other enactment relating to the disposal of land by local authorities.

(4)The consent required by a direction is in addition to any consent required by the enactments mentioned in subsection (3)(a) and (b).

(5)Where the consideration or any of the consideration under a contract is not in money, the limits specified in a direction by virtue of section 24(1)(a) to (c) apply to the value of the consideration.

(6)Where—

(a)a question arises in relation to a direction as to the value of any consideration, and

(b)the relevant authority concerned and the person or persons specified under section 24(1) fail to reach agreement,

the value is to be determined by the Secretary of State.

(7)A direction may be varied or revoked by a subsequent direction.

27Consideration to be taken into account for purposes of directionE+W

(1)In determining whether the limit specified in a direction by virtue of section 24(1)(a) is exceeded in the case of a disposal of land by a relevant authority, the consideration with respect to any other disposal of land made after 31 December 2006 by the relevant authority is to be taken into account.

(2)In determining whether a limit specified in a direction by virtue of section 24(1)(b) or (c) is exceeded in the case of a contract entered into by a relevant authority (“the contract in question”), the consideration payable by the relevant authority under any other relevant contract shall be taken into account.

(3)For the purposes of subsection (2) a “relevant contract” means a contract which is either or both—

(a)a contract entered into after 31 December 2006 by the relevant authority and the person with whom the contract in question is entered into;

(b)a contract entered into after that date by the relevant authority which relates to the same or a similar description of matter as that to which the contract in question relates.

28Contraventions of directionE+W

(1)A disposal made in contravention of a direction under section 24 is void.

(2)A contract entered into by an authority (“the old authority”) in contravention of a direction under section 24 is not enforceable against a successor.

(3)In subsection (2) a “successor” means a local authority (other than the old authority)—

(a)which is established by an order under section 7 or 10; and

(b)whose area consists of or includes the whole or part of the area of the old authority.

(4)A contract which apart from this subsection would be a certified contract for the purposes of the Local Government (Contracts) Act 1997 (c. 65) is not a certified contract for those purposes if it is entered into in contravention of a direction under section 24.

(5)If an authority includes financial reserves in a calculation under section 32(3) of the Local Government Finance Act 1992 (c. 14) in contravention of a direction under section 24, the authority is to be treated for the purposes of section 30(8) of that Act as not having made the calculations required by Chapter 3 of Part 1 of that Act.

(6)If an authority includes financial reserves in a calculation under section 43(3) of that Act in contravention of a direction under section 24, the authority is to be treated for the purposes of section 40(7) of that Act as not having made the calculations required by Chapter 4 of Part 1 of that Act.

29Power to amendE+W

(1)The Secretary of State may by order—

(a)substitute another sum for any sum for the time being specified in section 24(1);

(b)substitute another date for the date for the time being specified in section 27(1) and (3).

(2)An order under this section may include transitional or saving provision.

30Definitions for purposes of Chapter 2E+W

(1)In this Chapter—

  • local authority” means a county council in England, a district council in England or a London borough council;

  • relevant authority” has the meaning given by section 24(2).

(2)References in this Chapter to disposing of land include references to—

(a)granting or disposing of any interest in land;

(b)entering into a contract to dispose of land or grant or dispose of any such interest;

(c)granting an option to acquire any land or any such interest.

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