Local Government and Elections (Wales) Act 2021

Restraining transactions and recruitment etc. by direction E+W

1 (1) After receiving a merger application or after giving notice as described in section 129(6), the Welsh Ministers may direct a merging council or restructuring council that— E+W

(a) the council must not carry out a restricted activity unless it has considered the opinion of a specified person or persons on the appropriateness of carrying out the activity;

(b) the council must not carry out a restricted activity unless the written consent of a specified person or persons has been given for the activity to be carried out.

(2) The restricted activities are—

(a) making a relevant land acquisition or disposal;

(b) entering into a relevant contract or agreement;

(c) making a relevant capital acquisition;

(d) giving a relevant grant or other financial assistance;

(e) making a relevant loan;

(f) including an amount of financial reserves in a calculation under section 32 of the Local Government Finance Act 1992 (c. 14);

(g) starting the process of recruiting (including by way of internal recruitment)—

(i) a non-statutory chief officer mentioned in section 2(7) of the Local Government and Housing Act 1989 (c. 42);

(ii) a deputy chief officer mentioned in section 2(8) of that Act.

(3) The Welsh Ministers may direct a merging council or restructuring council seeking to appoint or designate a person to a restricted post (including from among its existing officers) to comply with specified requirements about the appointment or designation.

(4) “Restricted post”, in relation to a merging council or restructuring council, means—

(a) its chief executive appointed under section 54;

(b) its monitoring officer designated under section 5(1) of the Local Government and Housing Act 1989;

(c) a statutory chief officer mentioned in section 2(6) of that Act;

(d) its head of democratic services designated under section 8(1) of the 2011 Measure.

(5) A merging council or restructuring council given a direction under sub-paragraph (1) must—

(a) provide details of any proposal to carry out a restricted activity to any person or persons specified for the purpose of sub-paragraph (1)(a) or (b) in respect of that activity;

(b) provide the Welsh Ministers with details of a proposal to appoint or designate a person to a restricted post where any requirements apply in relation to the appointment or designation by virtue of a direction under sub-paragraph (3).

(6) If an opinion given for the purposes of sub-paragraph (1)(a) is that it would not be appropriate for a merging council or restructuring council to carry out a restricted activity but the council decides to carry it out, the council must publish its reasons for making that decision.

(7) Where a direction has been given under sub-paragraph (3), section 143A(1)(b) and (3) of the 2011 Measure (recommendations of Independent Remuneration Panel for Wales on remuneration) does not apply to a proposal to provide to the chief executive of a merging council or restructuring council remuneration which is different to that provided to the chief executive's predecessor.

(8) A direction given under this paragraph takes effect from the date specified.

(9) In this paragraph, “specified” means specified in a direction given under this paragraph.

F1 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 12 para. 1(10) omitted (5.5.2022) by virtue of Local Government and Elections (Wales) Act 2021 (asc 1), s. 175(7), Sch. 5 para. 20; S.I. 2021/231, art. 6(s)

Commencement Information

I1 Sch. 12 para. 1 in force at 21.1.2021 for specified purposes, see s. 175(1)(f)(2)(b)(ii)(m)(7)

I2 Sch. 12 para. 1 in force at 1.4.2021 in so far as not already in force by S.I. 2021/297, art. 2(j)