Policy statements
26.—(1) Each employing authority must formulate, publish and keep under review—
(a)the policy that they apply in the exercise of their discretionary powers under Parts II to IV and Parts VI to VIII, and
(b)the policy they apply in the exercise of their duty under regulations 17 and 19 to reduce annual compensation.
(2) If the authority decide to change either policy, they must publish a statement of the amended policy within one month of the date of their decision.
(3) The authority must not give effect to any policy change until one month has passed since the date of publication of the statement under paragraph (2).
(4) In formulating and reviewing their policies the authority must—
(a)have regard to the extent to which the exercise of their discretionary powers (in accordance with the policy), unless properly limited, could lead to a serious loss of confidence in the public service; and
(b)be satisfied that the policy is workable, affordable and reasonable having regard to the foreseeable costs.