PART 7

MERGERS AND RESTRUCTURING OF PRINCIPAL AREAS
CHAPTER 4

REMUNERATION ARRANGEMENTS FOR NEW PRINCIPAL COUNCILS

Directions to Democracy and Boundary Commission Cymru
142
1
The Welsh Ministers may direct the Democracy and Boundary Commission Cymru that it must perform its payment and pension functions in relation to—
a
the shadow council for a new principal area established under merger regulations or restructuring regulations, and
b
the principal council for that area, for the financial year in which the transfer date falls.
2
For the purposes of subsection (1), the Commission’s payment and pension functions are the functions under the following sections in Part 5A of the 2013 Act—
a
section 69A (payments to members), and
b
section 69B (members' pensions).
3
Accordingly Part 5A of the 2013 Act applies in the case of a council to which a direction under subsection (1) relates; but in its application by virtue of this subsection Part 5A is subject to—
a
subsection (4), and
b
section 143.
4
Where Part 5A of the 2013 Act applies by virtue of subsection (3)—
a
the shadow council is a relevant authority for the purposes of that Part,
b
the Panel may exercise its functions under Part 5A of the 2013 Act in relation to the principal council for the new principal area before the council has been established (including by way of imposing a requirement to which the council will be subject once it is established); accordingly, for those purposes that Part is to be read as if the council is, before it is established, a relevant authority,
c
where the transfer date does not fall on 1 April, the references in section 69A to a financial year include a reference to part of the financial year in which the transfer date falls,
d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In exercising functions by virtue of this section in relation to a principal council for an area which has or had a designated shadow council, the Panel may, in relation to times before and after the council will consist of councillors elected at the first ordinary election—
a
make different decisions under section 142(1) of the 2011 Measure;
b
set different amounts under subsection (3) of that section;
c
make different determinations under subsection (4) of that section;
d
set different percentages or other rates or indices under subsection (6) of that section;
e
make different decisions under section 143(2) and (3) of the 2011 Measure.

Reports of Commission relating to shadow councils and new principal councils
143
1
This section applies where Part 5A of the 2013 Act applies in the case of a council by virtue of a direction under section 142.
2
The first report under Part 5A of the 2013 Act that relates (wholly or partly) to the shadow council for the new principal area (“the first report”)—
a
must be published no later than the date specified in the direction under section 142 for that purpose, and
b
may be an annual report or a supplementary report, subject to the requirement imposed by virtue of paragraph (a) and the requirements under sections 69E(3) and 69I(1) and (2)(a) of the 2013 Act.
3
Section 69I(2)(b) of the 2013 Act (time limit on publication) does not apply in relation to the first report if it is a supplementary report.
4
Where any annual report or supplementary report relates (wholly or partly) to—
a
the shadow council, or
b
the principal council for the new principal area and that council will not be established at the time of publication of the report,
the Commission must take the step set out in subsection (5).
5
The Commission must, before publishing the report under section 69E of the 2013 Act, send a draft of the report to the following (if the Commission is not already required to do so under section 69G(1)(a) of the 2013 Act)—
a
the merging councils or restructuring councils whose areas are to be merged to create the new principal area;
b
the shadow council (if established);
c
the persons (if any) specified for that purpose in the direction under section 142.
6
A supplementary report may impose on the merging councils or restructuring councils whose areas are to be merged to create the new principal area, or on the shadow council—
a
requirements of a kind specified in section 69J(1) of the 2013 Act;
b
requirements of a kind specified in section 69K(1) of the 2013 Act.
7
Where a supplementary report relates (wholly or partly) to the shadow council, section 69J(2) of the 2013 Act applies in relation to that report (to the extent that it requires a payment to be made to or by the shadow council) as it applies in relation to an annual report.
8
The references in sections 69L, 69N and 69P of the 2013 Act to requirements imposed by an annual report include a reference to requirements imposed by a supplementary report by virtue of this section.
9
An annual or supplementary report must specify in relation to the council for the new principal area (whether it is a shadow council or a principal council at the time of publication) the information mentioned in section 69E(4) of the 2013 Act.
10
The matters required by virtue of this section and section 142 to be included in a report of the Commission in relation to the financial year in which the transfer date falls must be included in the annual report for that financial year.
11
But, if the Commission considers it appropriate to do so, it may at any time before the transfer date publish a supplementary report in relation to so much of that first financial year as falls on or after that date.

Guidance to Commission
144
The Commission must have regard to any guidance issued by the Welsh Ministers about the exercise of its functions in accordance with sections 142 and 143.

Pay policy statements
145
1
A transition committee must publish recommendations as to the pay policy statement to be prepared by the shadow council for the new principal area.
2
The recommendations must be published no later than six weeks before—
a
where the shadow council is an elected shadow council, the date on which elections to the shadow council are to take place, or
b
where the shadow council is a designated shadow council, the date on which the shadow council is to be established.
3
A shadow council must prepare and approve (and may amend) a pay policy statement in accordance with sections 38(2) to (5) and 39(1), (4) and (5) of the Localism Act 2011 (c. 20)—
a
for the period beginning with the approval of the pay policy statement and ending immediately before the transfer date, and
b
for the first financial year in which there will be a principal council for the new principal area.
4
Accordingly, sections 38(2) to (5) and 39(1), (4) and (5), 41(1) and (2) and 42(1) and (2) of the Localism Act 2011 apply; and where those provisions apply by virtue of this subsection—
a
the shadow council is, for the purposes of those provisions, a relevant authority within the meaning of Chapter 8 of Part 1 of that Act,
b
the period mentioned in subsection (3)(a) is to be treated for the purposes of those provisions as a financial year, and
c
section 39(5) of that Act is to be read as if for “on the authority's website” there were substituted “ on a website ”.
5
No chief officer (within the meaning of section 43(2) of the Localism Act 2011) may be appointed or designated by the shadow council until the pay policy statement under subsection (3) has been prepared and approved.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
In this section, “transition committee” means a transition committee established under Schedule 11—
a
in relation to merger regulations, or
b
in relation to restructuring regulations which make provision for there to be a shadow council.
S. 142(1) in force at 21.1.2021 for specified purposes, see s. 175(1)(f)(2)(b)(i)(7)
S. 142(2)-(5) in force at 21.1.2021, see s. 175(1)(f)
S. 143(1)-(4)(5)(b)(c) in force at 21.1.2021, see s. 175(1)(f)
S. 143(5)(a)(6) in force at 21.1.2021 for specified purposes, see s. 175(1)(f)(2)(b)(ii)(7)
S. 143(7)-(11) in force at 21.1.2021 for specified purposes, see s. 175(1)(f)
S. 145(1)-(7)(a) in force at 21.1.2021 for, see s. 175(1)(f)
S. 142(1) in force at 1.4.2021 in so far as not already in force by S.I. 2021/297, art. 2(d)
S. 143(5)(a)(6) in force at 1.4.2021 in so far as not already in force by S.I. 2021/297, art. 2(d)
S. 145(7)(b) in force at 1.4.2021 by S.I. 2021/297, art. 2(d)
Words in s. 142 heading substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(a); S.I. 2024/1337, art. 3(e)
Words in s. 142(1) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(b); S.I. 2024/1337, art. 3(e)
Word in s. 142(2) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(c)(i); S.I. 2024/1337, art. 3(e)
Words in s. 142(2) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(c)(ii); S.I. 2024/1337, art. 3(e)
Words in s. 142(2)(a) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(c)(iii); S.I. 2024/1337, art. 3(e)
Words in s. 142(2)(b) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(c)(iv); S.I. 2024/1337, art. 3(e)
Words in s. 142(3) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(d)(i); S.I. 2024/1337, art. 3(e)
Words in s. 142(3) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(d)(ii); S.I. 2024/1337, art. 3(e)
Words in s. 142(4) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(e)(i); S.I. 2024/1337, art. 3(e)
Words in s. 142(4)(c) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(e)(ii); S.I. 2024/1337, art. 3(e)
S. 142(4)(d) omitted (1.4.2025) by virtue of Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(e)(iii); S.I. 2024/1337, art. 3(e)
S. 142(4)(e) omitted (1.4.2025) by virtue of Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(5)(e)(iii); S.I. 2024/1337, art. 3(e)
Word in s. 143 heading substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(a); S.I. 2024/1337, art. 3(e)
Words in s. 143(1) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(b); S.I. 2024/1337, art. 3(e)
Words in s. 143(2) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(c)(i); S.I. 2024/1337, art. 3(e)
Words in s. 143(2)(b) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(c)(ii); S.I. 2024/1337, art. 3(e)
Words in s. 143(3) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(d); S.I. 2024/1337, art. 3(e)
Word in s. 143(4) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(e); S.I. 2024/1337, art. 3(e)
Word in s. 143(5) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(f)(i); S.I. 2024/1337, art. 3(e)
Words in s. 143(5) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(f)(ii); S.I. 2024/1337, art. 3(e)
Words in s. 143(5) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(f)(iii); S.I. 2024/1337, art. 3(e)
Words in s. 143(6)(a) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(g)(i); S.I. 2024/1337, art. 3(e)
Words in s. 143(6)(b) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(g)(ii); S.I. 2024/1337, art. 3(e)
Words in s. 143(7) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(h); S.I. 2024/1337, art. 3(e)
Words in s. 143(8) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(i); S.I. 2024/1337, art. 3(e)
Word in s. 143(10) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(k); S.I. 2024/1337, art. 3(e)
Word in s. 143(11) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(k); S.I. 2024/1337, art. 3(e)
Words in s. 143(9) substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(6)(j); S.I. 2024/1337, art. 3(e)
Word in s. 144 and heading substituted (1.4.2025) by Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(7); S.I. 2024/1337, art. 3(e)
S. 145(6) omitted (1.4.2025) by virtue of Elections and Elected Bodies (Wales) Act 2024 (asc 5), s. 72(4), Sch. 1 para. 15(8); S.I. 2024/1337, art. 3(e)