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Local Government and Housing Act 1989

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Local Government and Housing Act 1989

1989 CHAPTER 42

An Act to make provision with respect to the members, officers and otherstaff and the procedure of local authorities; to amend Part III of the LocalGovernment Act 1974 and Part II of the Local Government (Scotland) Act 1975 and to provide for a national code of local government conduct; to makefurther provision about the finances and expenditure of local authorities(including provision with respect to housing subsidies) and about companiesin which local authorities have interests; to make provision for and inconnection with renewal areas, grants towards the cost of improvement andrepair of housing accommodation and the carrying out of works of maintenance,repair and improvement; to amend the Housing Act 1985 and Part III of theLocal Government Finance Act 1982; to make amendments of and consequentialupon Parts I, II and IV of the Housing Act 1988; to amend the Local GovernmentFinance Act 1988 and the Abolition of Domestic Rates Etc. (Scotland) Act 1987and certain enactments relating, as respects Scotland, to rating andvaluation, and to provide for the making of grants; to make provision withrespect to the imposition of charges by local authorities; to make furtherprovision about certain existing grants and about financial assistance to andplanning by local authorities in respect of emergencies; to amend sections 102and 211 of the Local Government (Scotland) Act 1973; to amend the Local LandCharges Act 1975; to enable local authorities in Wales to be known solely byWelsh language names; to provide for the transfer of new town housing stock;to amend certain of the provisions of the Housing (Scotland) Act 1987 relatingto a secure tenant’s right to purchase his house; to amend section 47 of theRace Relations Act 1976; to confer certain powers on the Housing Corporation,Housing for Wales and Scottish Homes; to make provision about security oftenure for certain tenants under long tenancies; to provide for the making ofgrants and giving of guarantees in respect of certain activities carried onin relation to the construction industry; to provide for the repeal of certainenactments relating to improvement notices, town development and educationsupport grants; to make, as respects Scotland, further provision in relationto the phasing of progression to registered rent for houses let by housingassociations or Scottish Homes and in relation to the circumstances in whichrent increases under assured tenancies may be secured; and for connectedpurposes.

[16th November 1989]

X1Be it enacted by the Queen’s most Excellent Majesty, by and with theadvice and consent of the Lords Spiritual and Temporal, and Commons, in thispresent Parliament assembled, and by the authority of the same, asfollows:—

Editorial Information

X1The text of ss. 74–138, 157, 161–183,190–193, 194(1), 195, Schs. 4, 9, Sch. 11 paras. 31, 32, 42, 58,62–88, 93–95, 99, 100, 107, 110–112 was taken from S.I.F.Group 61 (Housing), ss. 187, 193, 195 from S.I.F. Group 64 (IndustrialDevelopment), ss. 149(6), 186, 190–193, 194(1), 195, Schs. 7, 10, Sch.11 paras. 8–13, 49–54, 60, 61, 89–91, 101–106, 108,109, 112 from S.I.F. Group 75:1 (Landlord and Tenant: General, E.&W.), ss.1(1)–(3)(5)–(8), 2–13, 15–22, 23(1), 24–26, 28,30(2), 31, 32(1), 33–35, 36(1)–(8), 37–73, 139,146–158, 160, 184, 188–195, Schs. 1–3, 5, 8, Sch. 11 paras.1–7, 14, 16–30, 37–41, 47, 48, 56, 57, 59, 92, 96–98,113, Sch. 11 paras. 1–7, 14, 16–30, 37–41, 47, 48, 56, 57,59, 92, 96–98, 113, Sch. 12 from S.I.F. Group 81:1 (Local Government:General, E.&W.), and ss. 1(1)(2)(4)–(8), 2–12, 14–21,23(2), 27, 29, 30(1), 31, 32(2), 36(9), 140–145, 150–153, 155,157, 159, 185, 190, 192, 194(1), 195, Schs. 1, 6, Sch. 11 paras. 15,33–36, 43–46, 55, 96, 97 from S.I.F. Group 81:2 (Local Government:General, S.).

Modifications etc. (not altering text)

C1Act: (except ss. 43(2), 53(1) and 54(1) so far as they relate to a fire authority or police authority, and except s. 43(3)) transfer of functions (W.) (1.7.1999) by S.I. 1999/672, art. 2, Sch. 1

C2Act modified (1.12.2008) by The Housing and Regeneration Act 2008 (Consequential Provisions) Order 2008 (S.I. 2008/3002), art. 7 (with Sch. 2) (see S.I. 2008/3068, art. 2(1)(b))

Part IE+W+S Local Authority Members, Officers, Staff and Committees etc.

Modifications etc. (not altering text)

C3Pt. I (ss. 1-21) applied (temp. from 4.5.1995 to 31.3.1996) by S.I. 1995/1042, art. 4(1)

Pt. I (ss. 1-21): power conferred to make provisions about matters of the kind dealt with in this part (1.9.1997) by 1997 c. 50, s. 44(1), Sch. 4 para. (j)(i); S.I. 1997/1930, art. 2(1)(2)(m) (subject to art. 2(3))

Pt. I (ss. 1-21): extended (E.W.) (26.10.2000 for E. and 28.7.2001 for W.) by 2000 c. 22, ss. 23, 108(4), Sch. 1 para. 3(13); S.I. 2000/2849, art. 2(c)

C5Pt. 1 functions made exercisable by joint standards committees (E.) (15.6.2009) by The Standards Committee (Further Provisions) (England) Regulations 2009 (S.I. 2009/1255), regs. 1(1), 14

Political restriction of officers and staffE+W+S

1 Disqualification and political restriction of certain officers and staff.E+W+S

(1)A person shall be disqualified from becoming (whether by election orotherwise) or remaining a member of a local authority if he holds apolitically restricted post under that local authority or any other localauthority in Great Britain.

(2)In the M1House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices) there shall be inserted at the appropriate place—

Person holding a politically restricted post, within the meaning of Part I of the Local Government and Housing Act 1989, under a local authority, within the meaning of that Part.

(3)In section 80 of the M2Local Government Act 1972 (disqualification for election and holding office as member of local authority)—

(a)in subsection (1)(a) (paid office holders and employees), the words “joint board, joint authority or” shall be omitted; and

(b)in subsection (6) (extension of meaning of “local authority”), after the word “includes” there shall be inserted “ a joint board and ”.

(4)In section 31 of the M3Local Government (Scotland) Act 1973 (which makes corresponding provision for Scotland)—

(a)in subsection (1)(a)(ii), the words “or joint board” shall be omitted; and

(b)after subsection (1) there shall be inserted the following subsection—

(1A)A person is disqualified for being a member of a joint board if he or a partner of his holds any paid office or employment (other than the office of chairman or vice-chairman of the board) or other place of profit in the gift or disposal of the board.

(5)The terms of appointment or conditions of employment of every person holding a politically restricted post under a local authority (including persons appointed to such posts before the coming into force of this section) shall be deemed to incorporate such requirements for restricting his political activities as may be prescribed for the purposes of this subsection by regulations made by the Secretary of State.

(6)Regulations under subsection (5) above may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate and, without prejudice to section 190(1) below, may contain such exceptions for persons appointed in pursuance of section 9 below as he thinks fit.

(7)So far as it has effect in relation to disqualification for election, this section has effect with respect to any election occurring not less than two months after the coming into force of this section and, so far as it relates to becoming in any other way a member of a local authority, this section has effect with respect to any action which, apart from this section, would result in a person becoming a member of the authority not less than two months after the coming into force of this section.

(8)If, immediately before the expiry of the period of two months referred to in subsection (7) above, a person who is a member of a local authority holds a politically restricted post under that or any other local authority, nothing in this section shall apply to him until the expiry of the period for which he was elected or for which he otherwise became a member of the authority.

Modifications etc. (not altering text)

C6S. 1 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 1 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 7(4) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 1 extended (8.5.2000) by 1999 c. 29, ss. 68, 70 (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

Marginal Citations

2 Politically restricted posts.E+W+S

(1)The following persons are to be regarded for the purposes of this Part as holding politically restricted posts under a local authority—

(a)the person designated under section 4 below as the head of the authority’s paid service;

(b)the statutory chief officers;

(c)a non-statutory chief officer;

(d)a deputy chief officer;

(e)the monitoring officer designated under section 5 below;

(f)any person holding a post to which he was appointed in pursuance of section 9 below; and

(g)any person not falling within paragraphs (a) to (f) above whose post is for the time being specified by the authority in a list maintained in accordance with subsection (2) below and any directions under section 3 [F1or 3A] below or with section 100G(2) of the M4Local Government Act 1972 or section 50G(2) of the M5Local Government (Scotland) Act 1973 (list of officers to whom powers are delegated).

(2)It shall be the duty of every local authority to prepare and maintain a list of such of the following posts under the authority, namely—

F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)posts [F3F4... the] duties of which appear to the authority to fall within subsection (3) below,

as are not posts for the time being exempted under section 3 [F5or 3A] below, posts for the time being listed under section 100G(2) of the M6Local Government Act 1972 or section 50G(2) of the M7Local Government (Scotland) Act 1973 or posts of a description specified in regulations made by the Secretary of State for the purposes of this subsection.

(3)The duties of a post under a local authority fall within this subsection if they consist in or involve one or both of the following, that is to say—

(a)giving advice on a regular basis to the authority themselves, to any committee or sub-committee of the authority or to any joint committee on which the authority are represented[F6 or, where the authority are operating executive arrangements, to the executive of the authority, to any committee of that executive, or to any member of that executive who is also a member of the authority];

(b)speaking on behalf of the authority on a regular basis to journalists or broadcasters.

(4)It shall be the duty of every local authority to deposit the first list prepared under subsection (2) above with their proper officer before the expiry of the period of two months beginning with the coming into force of this section; and it shall also be their duty, on subsequently making any modifications of that list, to deposit a revised list with that officer.

(5)It shall be the duty of every local authority [F7 in Scotland and Wales ] in performing their duties under this section to have regard to such general advice as may be given by virtue of subsection (1)(b) of section 3 below by a person appointed under that subsection.

[F8(5A)It shall be the duty of every local authority in England in performing their duties under this section to have regard to such general advice as may be given by virtue of section 3B below by the Secretary of State.]

(6)In this section “the statutory chief officers” means—

[F9(za)the director of children’s services appointed under section 18 of the Children Act 2004 and the director of adult social services appointed under section 6(A1) of the Local Authority Social Services Act 1970 (in the case of a local authority in England);]

(a)the chief education officer [F10or director of education] appointed under [F11section 532 of the Education Act 1996][F10or section 78 of the M8Education (Scotland) Act 1980] [F12(in the case of a local authority in Wales) ] ;

(b)[F13the chief officer of a fire brigade maintained under the M9Fire Services Act 1947 and appointed under regulations made under section 18(1)(a) of that Act;]

(c)the director of social services [F14(in the case of a local authority in Wales)] or [F15chief social work officer] appointed under section 6 of the M10Local Authority Social Services Act 1970 or section 3 of the M11Social Work (Scotland) Act 1968; and

(d)the officer having responsibility, for the purposes of section 151 of the Local Government Act 1972, section 73 of the M12Local Government Act 1985, section 112 of the M13Local Government Finance Act 1988 [F16, section 127(2) of the Greater London Authority Act 1999] or section 6 below or for the purposes of section 95 of the M14Local Government (Scotland) Act 1973, for the administration of the authority’s financial affairs.

(7)In this section “non-statutory chief officer” means, subject to the following provisions of this section—

(a)a person for whom the head of the authority’s paid service is directly responsible;

(b)a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the head of the authority’s paid service; and

(c)any person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the local authority themselves or any committee or sub-committee of the authority.

(8)In this section “deputy chief officer” means, subject to the following provisions of this section, a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to one or more of the statutory or non-statutory chief officers.

(9)A person whose duties are solely secretarial or clerical or are otherwise in the nature of support services shall not be regarded as a non-statutory chief officer or a deputy chief officer for the purposes of this Part.

(10)Nothing in this section shall have the effect of requiring any person to be regarded as holding a politically restricted post by reason of his holding—

(a)the post of head teacher or principal of a school, college or other educational institution or establishment which, in England and Wales, is maintained or assisted by a local education authority or, in Scotland, is under the management of or is assisted by an education authority; or

(b)any other post as a teacher or lecturer in any such school, college, institution or establishment,

or of requiring any such post to be included in any list prepared and maintained under this section.

(11)Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

Textual Amendments

F2S. 2(2)(a)(b) and word repealed (S.) (28.2.2007) by Local Governance (Scotland) Act 2004 (asp 9), ss. 9(a), 17(2); S.S.I. 2007/25, art. 2(1); s. 2(2)(a)(b) repealed (E.W.) (12.1.2010) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 30(2)(a), 148(1)(d), Sch. 7 Pt. 1

F3Words in s. 2(2)(c) repealed (S.) (28.2.2007) by Local Governance (Scotland) Act 2004 (asp 9), ss. 9(b), 17(2); S.S.I. 2007/25, art. 2(1)

F6Words in s. 2(3)(a) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 22; S.I. 2002/808, arts. 1(2), 21

F9S. 2(6)(za) inserted (E.W.) (1.1.2008 with effect in accordance with 2004 c. 31, s. 18(9)(10)) by Children Act 2004 (c. 31), s. 67(2), Sch. 2 para. 3(a); S.I. 2007/1792, art. 2

F10Words in s. 2(6)(a) repealed (S.) (1.4.1996) by 1994 c. 39, s. 180(1)(2), Sch. 13 para. 161(1)(2)(a), Sch. 14 (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)(d), Sch. 2

F11Words in s. 2(6)(a) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 para. 95 (with s. 1(4), Sch. 39 paras. 30, 39)

F12Words in s. 2(6)(a) inserted (E.W.) (1.1.2008 with effect in accordance with 2004 c. 31, s. 18(9)(10)) by Children Act 2004 (c. 31), s. 67(2), Sch. 2 para. 3(b); S.I. 2007/1792, art. 2

F13S. 2(6)(b) repealed (E.W.) (1.10.2004 except in relation to W., 10.11.2004 for W.) by Fire and Rescue Services Act 2004 (c. 21), s. 61, Sch. 2; S.I. 2004/2304, art. 2; S.I. 2004/2917, art. 2

F14Words in s. 2(6)(c) inserted (E.W.) (1.1.2008 with effect in accordance with 2004 c. 31, s. 18(9)(10)) by Children Act 2004 (c. 31), s. 67(2), Sch. 2 para. 3(c); S.I. 2007/1792, art. 2

F15Words in s. 2(6)(c) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(2)(b) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

F16Words in s. 2(6)(d) inserted (8.5.2000 for specified purposes otherwise 3.7.2000) by 1999 c. 29, s. 127(8) (with Sch. 12 para. 9(1)); S.I. 1999/3434, arts. 3, 4

Modifications etc. (not altering text)

C9S. 2 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 7(4) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

Marginal Citations

3 Grant and supervision of exemptions from political restriction[F17: Scotland and Wales ].E+W+S

(1)[F18It shall be the duty of the Scottish Ministers to appoint in relation to Scotland, and the duty of the Welsh Ministers to appoint in relation to Wales, a person]

(a)to carry out the functions in relation to political restriction which are conferred by subsections (2) to (7) below; and

(b)to give such general advice with respect to the determination of questions arising by virtue of section 2(3) above as that person considers appropriate after consulting such representatives of local government and such organisations appearing to him to represent employees in local government as he considers appropriate.

(2)A person appointed under subsection (1) above—

(a)shall consider any application for exemption from political restrictionwhich is made to him, in respect of any post under a local authority, by the holder for the time being of that post; and

(b)may, on the application of any person or otherwise, give directions to a local authority requiring it to include a post in the list maintained by the authority under section 2(2) above.

(3)An application shall not be made by virtue of subsection (2)(a) above in respect of a post under a local authority except where—

(a)the authority have specified or are proposing to specify the post in the list maintained by the authority under subsection (2) of section 2 above; F19...

F20[F21(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F22...]

(4)If, on an application made by virtue of subsection (2)(a) above in respect of any post under a local authority, the person to whom the application is made is satisfied that the duties of the post do not fall within section 2(3)above, that person shall direct—

(a)that, for so long as the direction has effect in accordance with its terms, the post is not to be regarded as a politically restricted post; and

(b)that, accordingly, the post is not to be specified in the list maintained by that authority under section 2(2) above or, as the case may be, is to be removed from that list.

(5)A person appointed under subsection (1) above shall not give a directionunder subsection (2)(b) above in respect of any post under a local authority except where he is satisfied that the post—

(a)is a post the duties of which fall within section 2(3) above; and

(b)is neither included in any list maintained by the authority in accordance with section 2(2) above, section 100G(2) of the M15Local Government Act 1972 or section 50G(2) of the M16Local Government (Scotland) Act 1973 nor of a description specified in any regulations under section 2(2) above.

(6)It shall be the duty of a local authority—

(a)to give a person appointed under subsection (1) above all such information as that person may reasonably require for the purpose of carrying out his functions under this section;

(b)to comply with any direction under this section with respect to the list maintained by the authority; and

(c)on being given a direction by virtue of subsection (2)(b) above, to notify the terms of the direction to the holder for the time being of the post to which the direction relates.

(7)It shall be the duty of a person appointed under subsection (1) above, in carrying out his functions under this section, to give priority, according to the time available before the election, to any application made by virtue of subsection (2)(a) above by a person who certifies that it is made for the purpose of enabling him to be a candidate in a forthcoming election.

(8)The Secretary of State may—

F23(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)provide for the appointment of such numbers of staff to assist any person appointed under [F24subsection (1)], and to act on that person’s behalf, as the Secretary of State may with the consent of the Treasury determine;

(c)pay to or in respect of a person appointed under that subsection andmembers of such a person’s staff such remuneration and such other sums by way of, or towards, the payment of pensions, allowances and gratuities as the Secretary of State may so determine; and

(d)provide for a person appointed under that subsection and such a person’s staff to hold office on such other terms as the Secretary of State may so determine.

Textual Amendments

Modifications etc. (not altering text)

C10S. 3 applied (S.) (temp. 6.4.1995 to 31.3.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 3 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 7(4) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 3 extended (8.5.2000) by 1999 c. 29, ss. 68, 70 (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

Marginal Citations

[F253AGrant and supervision of exemptions from political restriction: EnglandE+W+S

(1)The standards committee of a local authority in England which is a relevant authority—

(a)must consider any application for exemption from political restriction which is made to the committee, in respect of any post under the relevant authority, by the holder for the time being of that post; and

(b)may, on the application of any person or otherwise, give directions to the relevant authority requiring it to include a post in the list maintained by the authority under section 2(2).

(2)An application may not be made under subsection (1)(a) unless—

(a)the relevant authority have specified or are proposing to specify the post in the list maintained by them under section 2(2);F26...

F27(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F28...

(3)If, on an application under subsection (1)(a) in respect of any post, the standards committee is satisfied that the duties of the post do not fall within section 2(3), the committee must direct—

(a)that, for so long as the direction has effect in accordance with its terms, the post is not to be regarded as a politically restricted post; and

(b)that accordingly the post is not to be specified in the list maintained by the relevant authority under section 2(2) or (as the case may be) is to be removed from that list.

(4)A standards committee may not give a direction under subsection (1)(b) in respect of any post unless the committee is satisfied that—

(a)the duties of the post fall within section 2(3); and

(b)the post is neither—

(i)in any list maintained by the relevant authority in accordance with section 2(2) above or section 100G(2) of the Local Government Act 1972; nor

(ii)of a description specified in any regulations under section 2(2) above.

(5)A standards committee must when determining for the purposes of subsection (3) or (4) whether or not the duties of a post fall within section 2(3) have regard to any general advice given by the Secretary of State under section 3B.

(6)Every local authority in England which is a relevant authority must—

(a)give its standards committee all such information as the committee may reasonably require for the purpose of carrying out its functions under this section;

(b)comply with any direction under this section with respect to the list maintained by the authority; and

(c)on being given a direction under subsection (1)(b), notify the terms of the direction to the person who holds the post to which the direction relates.

(7)In carrying out its functions under this section a standards committee must give priority, according to the time available before the election, to any application under subsection (1)(a) from a person who certifies that the application is made for the purpose of enabling him to be a candidate in a forthcoming election.

(8)The Secretary of State may make regulations requiring a local authority in England which is not a relevant authority to establish a committee to exercise the functions conferred by this section on the standards committee of a local authority in England which is a relevant authority.

(9)Regulations under subsection (8) may include provision—

(a)applying any provisions of this section (with or without modification) where a committee has been established under the regulations;

(b)applying (with or without modification) any provision of section 53 of the Local Government Act 2000 or regulations made under subsection (6) of that section.

(10)In this section—

  • standards committee” means a committee established under section 53(1) of the Local Government Act 2000;

  • relevant authority” has the meaning given by section 49(6) of that Act.]

[F253BGeneral advice as to politically restricted posts: EnglandE+W+S

(1)The Secretary of State may in relation to England give such general advice with respect to the determination of questions arising by virtue of section 2(3) as he considers appropriate.

(2)Before giving general advice under this section the Secretary of State must consult such representatives of local government and such organisations appearing to him to represent employees in local government as he considers appropriate.]

Textual Amendments

F25Ss. 3A, 3B inserted (E.W.) (31.1.2008 for specified purposes, 1.4.2008 so far as not already in force) by Local Government and Public Involvement in Health Act 2007 (c. 28), ss. 202(2), 245(5); S.I. 2008/172, art. 9(2); S.I. 2008/172, art. 9(3)

Duties of particular officersE+W+S

4 Designation and reports of head of paid service.E+W+S

(1)It shall be the duty of every relevant authority—

(a)to designate one of their officers as the head of their paid service; and

(b)to provide that officer with such staff, accommodation and other resources as are, in his opinion, sufficient to allow his duties under this section to be performed.

(2)It shall be the duty of the head of a relevant authority’s paid service,where he considers it appropriate to do so in respect of any proposals of his with respect to any of the matters specified in subsection (3) below, to prepare a report to the authority setting out his proposals.

(3)Those matters are—

(a)the manner in which the discharge by the authority of their different functions is co-ordinated;

(b)the number and grades of staff required by the authority for the discharge of their functions;

(c)the organisation of the authority’s staff; and

(d)the appointment and proper management of the authority’s staff.

(4)It shall be the duty of the head of a relevant authority’s paid service,as soon as practicable after he has prepared a report under this section, to arrange for a copy of it to be sent to each member of the authority.

(5)It shall be the duty of a relevant authority to consider any report under this section by the head of their paid service at a meeting held not more than three months after copies of the report are first sent to members of the authority; and nothing in section 101 of the M17Local Government Act 1972 or in section 56 of [F29, or Schedule 10 or 20 to,] the M18Local Government (Scotland) Act 1973 (delegation) shall apply to the duty imposed by virtue of this subsection.

(6)In this section “relevant authority”—

(a)in relation to England and Wales, means a local authority of any of thedescriptions specified in paragraphs (a) to (e)[F30, (ja) and (jb)] of section 21(1) below; and

(b)in relation to Scotland, [F31council constituted under section 2 of the Local Government etc. (Scotland) Act 1994].

(7)This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

Textual Amendments

F31Words in s. 4(6)(b) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(3)(b) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

Modifications etc. (not altering text)

C11S. 4 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 13(7)(a) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 4 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 72(1) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

C14S. 4(2)-(6) applied (with modifications) (E.W.) (28.3.2008) by The Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 17(6)

Marginal Citations

M181973c. 65.

5 Designation and reports of monitoring officer.E+W+S

(1)It shall be the duty of every relevant authority—

(a)to designate one of their officers (to be known as “the monitoring officer”) as the officer responsible for performing the duties imposed by this section [F32and, where relevant, section 5A below]; and

(b)to provide that officer with such staff, accommodation and other resourcesas are, in his opinion, sufficient to allow those duties [F33and, where relevant, the duties under section 5A below] to be performed;

and [F34subject to subsection (1A) below] the officer so designated may be the head of the authority’s paid service [F35(or, in the case of a police authority established under [F36section 3 of the Police Act 1996][F37or the Metropolitan Police Authority], [F38the chief executive of the authority])] but shall not be their chief finance officer.

[F39(1A)The officer designated under subsection (1) above by a relevant authority to which this subsection applies may not be the head of that authority’s paid service.]

F39[(1B)Subsection (1A) above applies to the following relevant authorities in England and Wales—

(a)a county council,

(b)a county borough council,

(c)a district council,

(d)a London borough council,

(e)the Greater London Authority, and

(f)the Common Council of the City of London in its capacity as a local authority, police authority or port health authority.]

(2)[F40Subject to subsection (2B),] it shall be the duty of a relevant authority’s monitoring officer, if it at any time appears to him that any proposal, decision or omission by the authority, by any committee, [F41or sub-committee of the authority, by any person holding any office or employment under the authority] or by any joint committee on which the authority are represented constitutes, has given rise to or is likely to or would give rise to—

(a)a contravention by the authority, by any committee, [F41or sub-committee of the authority, by any person holding any office or employment under the authority] or by any such joint committee of any enactment or rule of law [F42or of any code of practice made or approved by or under any enactment]; or

[F43(aa)any such maladministration or failure as is mentioned in Part 3 of the Local Government Act 1974 (Local Commissioners), or]

(b)any such maladministration or injustice as is mentioned in F44 or Part II of the M19Local Government (Scotland) Act 1975 (which makes corresponding provision for Scotland)[F45; or

(c)a matter which the Public Services Ombudsman for Wales would be entitled to investigate under the Public Services Ombudsman (Wales) Act 2005,]

to prepare a report to the authority with respect to that proposal, decision or omission.

[F46(2A)No duty shall arise by virtue of subsection (2)(b) above unless a Local Commissioner (within the meaning of the M20Local Government Act 1974) has conducted an investigation under Part III of that Act in relation to the proposal, decision or omission concerned.]

[F47(2AA)No duty shall arise by virtue of subsection (2)(c) above unless the Public Services Ombudsman for Wales has conducted an investigation under the Public Services Ombudsman (Wales) Act 2005 in relation to the proposal, decision or omission concerned.]

[F48(2B)Where a relevant authority are operating executive arrangements, the monitoring officer of the relevant authority shall not make a report under subsection (2) in respect of any proposal, decision or omission unless it is a proposal, decision or omission made otherwise than by or on behalf of the relevant authority’s executive.]

(3)It shall be the duty of a relevant authority’s monitoring officer—

(a)in preparing a report under this section to consult so far as practicable with the [F49person who is for the time being designated as the head of the authority’s paid service under section 4 above] and with their chief finance officer; and

(b)as soon as practicable after such a report has been prepared by him or his deputy, to arrange for a copy of it to be sent to each member of the authority [F50and, in a case where the relevant authority have a mayor and council manager executive, to the council manager of the authority].

(4)The references in subsection (2) above, in relation to a relevant authority in England and Wales, to a committee or sub-committee of the authority and to a joint committee on which they are represented shall be taken to include references to any of the following, that is to say—

[F51(a)any police committee the members of which include persons appointed by the authority;]

(b)any local fisheries committee the members of which include persons so appointed;

F52(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)any sub-committee appointed by a committee falling within paragraphs (a) to (c) above;

but in relation to any such committee or sub-committee the reference insubsection (3)(b) above to each member of the authority shall have effect as a reference to each member of the committee or, as the case may be, of the committee which appointed the sub-committee.

(5)It shall be the duty of a relevant authority and of any such committee as is mentioned in subsection (4) above—

(a)to consider any report under this section by a monitoring officer or his deputy at a meeting held not more than twenty-one days after copies of the report are first sent to members of the authority or committee; and

(b)without prejudice to any duty imposed by virtue of section 115 of the M21Local Government Finance Act 1988 (duties in respect of conduct involving contraventions of financial obligations) or otherwise, to ensure that no step is taken for giving effect to any proposal or decision to which such a report relates at any time while the implementation of the proposal or decision is suspended in consequence of the report;

and nothing in section 101 of the M22Local Government Act 1972 or in section 56 of [F53, or Schedule 10 or 20 to,] the M23Local Government (Scotland) Act 1973 (delegation) shall apply to the duty imposed by virtue of paragraph (a) above.

(6)For the purposes of paragraph (b) of subsection (5) above the implementation of a proposal or decision to which a report under this section relates shall be suspended in consequence of the report until the end of the first business day after the day on which consideration of that report under paragraph (a) of that subsection is concluded.

(7)The duties of a relevant authority’s monitoring officer under this section shall be performed by him personally or, where he is unable to act owing to absence or illness, personally by such member of his staff as he has for the time being nominated as his deputy for the purposes of this section.

[F54(7A)Subsection (7) above shall have effect subject to section 82A of the Local Government Act 2000 (monitoring officers: delegation of functions under Part 3 of that Act).]

(8)In this section [F55and in section 5A]

  • business day”, in relation to a relevant authority, means any day which is not a Saturday or Sunday, Christmas Day, Good Friday or any day which is a bank holiday under the M24Banking and Financial Dealings Act 1971 in the part of Great Britain where the area of the authority is situated;

  • chief finance officer”, in relation to a relevant authority, means the officer having responsibility, for the purposes of section 151 of the Local Government Act 1972, section 73 of the M25Local Government Act 1985, section 112 of the Local Government Finance Act 1988 [F56, section 127(2) of the Greater London Authority Act 1999] or section 6 below or for the purposes of section 95 of the Local Government (Scotland) Act 1973, for the administration of the authority’s financial affairs; and

  • relevant authority”—

(a)in relation to England and Wales, means a local authority of any of the descriptions specified in paragraphs (a) to [F57(k)] of section 21(1) below; and

(b)in relation to Scotland, means a local authority.

[F58(8A)Any reference in this section to the duties of a monitoring officer imposed by this section, or to the duties of a monitoring officer under this section, shall include a reference to the functions which are conferred on a monitoring officer by virtue of Part III of the Local Government Act 2000.]

(9)This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

Textual Amendments

F32Words in s. 5(1)(a) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(a); S.I. 2002/808, arts. 1(2), 22(1)(a)

F33Words in s. 5(1)(b) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(b); S.I. 2002/808, arts. 1(2), 22(1)(b)

F34Words in s. 5(1) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1), 108(4), Sch. 5 para. 24(1)(2)

F35Words in s. 5(1)(b) inserted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 35(a); S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F36Words in s. 5(1) substituted (22.8.1996) by 1996 c. 16, ss. 103(1), 104(1), Sch. 7 Pt. I para. 1(1)(2)(zd)

F37Words in s. 5(1) inserted (for certain purposes on the “operative date" (as defined in art. 1(2)(c) of S.I. 2000/1095) and on 3.7.2000 for all other purposes) by 1999 c. 29, s. 325, Sch. 27 para. 62 (with Sch. 12 para. 9(1)); S.I. 2000/1095, art. 4(2)(c)

F39S. 5(1A)(1B) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1), 108(4), Sch. 5 para. 24(1)(3)

F40Words in s. 5(2) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(c); S.I. 2002/808, arts. 1(2), 22(1)(c)

F41Words in s. 5(2) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 35(b); S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F42Words in s. 5(2)(a) repealed (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1)(2), 108(4), Sch. 5 para. 24(1)(4), Sch. 6

F46S. 5(2A) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1), 108(4), Sch. 5 para. 24(1)(6)

F48S. 5(2B) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(d); S.I. 2002/808, arts. 1(2), 22(1)(d)

F49Words in s. 5(3)(a) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 35(c); S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F50Words in s. 5(3)(b) added (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(e); S.I. 2002/808, arts. 1(2), 22(1)(e)

F51S. 5(4)(a) repealed (1.4.1995 (E.W.) otherwiseprosp.) by 1994 c. 29, s. 93, Sch. 9 Pt. I; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F52S. 5(4)(c) repealed (1.4.1997) by 1995 c. 25, s. 120(3), Sch. 24 (with ss. 7(6), 115, 117); S.I. 1996/2560, art. 2, Sch.

F54S. 5(7A) inserted (E.W.) (18.11.2003) by Local Government Act 2003 (c. 26), ss. 113(3), 128(2)(d)

F55Words in s. 5(8) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 23(1)(f); S.I. 2002/808, arts. 1(2), 22(1)(f)

F56S. 5(8): words in the definition of "chief finance officer" inserted (8.5.2000 for specified purposes, otherwise 3.7.2000) by 1999 c. 29, s. 132(1)(2) (with Sch. 12 para. 9(1)); S.I. 1999/3434, arts. 3, 4

F57S. 5(8): words in para. (a) of the definition of "relevant authority" substituted (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1), 108(4), Sch. 5 para. 24(1)(7)

F58S. 5(8A) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 107(1), 108(4), Sch. 5 para. 24(1)(8)

Modifications etc. (not altering text)

C15S. 5 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 13(7)(b) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 5 applied (with modifications) (23.11.1995) by S.I. 1995/2803, art. 19(1), Sch. 6 para. 7(3)

S. 5 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 73 (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2 (as amended (27.5.2000) by S.I. 2000/1435, art. 2, Sch. 1 Pt. I para. 5 and amended (E.W.) (28.7.2001) by 2000 c. 22, ss. 107, 108(4), Sch. 5 para. 24(5), Sch. 6)

S. 5 extended (with modifications) (8.9.2000) by 2000 asp 10, s. 36, Sch. 5 para. 15 (with s. 32); S.S.I. 2000/312, art. 2

C20S. 5(1) applied (10.5.2000) by S.I. 2000/1095, art. 6(5)(a)

C21S. 5(2)-(7) applied (with modifications) (E.W.) (5.3.2008) by The Cheshire (Structural Changes) Order 2008 (S.I. 2008/634), arts. 1, 8(4)

C22S. 5(2)-(7) applied (with modifications) (E.W.) (28.3.2008) by The Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 17(4)

Marginal Citations

[F595A Reports of monitoring officer—local authorities operating executive arrangementsE+W

(1)Where a relevant authority are operating executive arrangements, the monitoring officer of that authority shall be responsible for performing the duties imposed by this section.

(2)It shall be the duty of the monitoring officer of a relevant authority that is referred to in subsection (1) above, if at any time it appears to him that any proposal, decision or omission, in the course of the discharge of functions of the relevant authority, by or on behalf of the relevant authority’s executive, constitutes, has given rise to or is likely to or would give rise to any of the events referred to in subsection (3), to prepare a report to the executive of the authority with respect to that proposal, decision or omission.

(3)The events referred to for the purposes of subsection (2) are—

(a)a contravention, by the relevant authority’s executive or any person on behalf of the executive, of any enactment or rule of law; or

(b)any such maladministration or [F60failure] as is mentioned in Part III of the Local Government Act 1974 F61 (Local Commissioners)[F62; or

(c)a matter which the Public Services Ombudsman for Wales would be entitled to investigate under the Public Services Ombudsman (Wales) Act 2005.]

(4)No duty shall arise by virtue of subsection (3)(b) above unless a Local Commissioner (within the meaning of the Local Government Act 1974) has conducted an investigation under Part III of that Act in relation to the proposal, decision or omission concerned.

[F63(4A)No duty shall arise by virtue of subsection (3)(c) above unless the Public Services Ombudsman for Wales has conducted an investigation under the Public Services Ombudsman (Wales) Act 2005 in relation to the proposal, decision or omission concerned.]

(5)It shall be the duty of an authority’s monitoring officer—

(a)in preparing a report under subsection (2) to consult so far as practicable with the person who is for the time being designated as the head of the authority’s paid service under section 4 above and with their chief finance officer; and

(b)as soon as practicable after such a report has been prepared by him or his deputy, to arrange for a copy of it to be sent to each member of the authority and, where the authority has a mayor and council manager executive, the council manager.

(6)It shall be the duty of the authority’s executive—

(a)to consider any report under this section by a monitoring officer or his deputy at a meeting held not more than twenty-one days after copies of the report are first sent to members of the executive; and

(b)without prejudice to any duty imposed by virtue of section 115B of the Local Government Finance Act 1988 (duties of executive as regards reports) or otherwise, to ensure that no step is taken for giving effect to any proposal or decision to which such a report relates at any time while the implementation of the proposal or decision is suspended in consequence of the report.

(7)For the purposes of paragraph (b) of subsection (6) above the implementation of a proposal or decision to which a report under this section, by a monitoring officer or his deputy, relates shall be suspended in consequence of the report until the end of the first business day after the day on which consideration of that report under paragraph (a) of that subsection is concluded.

(8)As soon as practicable after the executive has concluded its consideration of the report of the monitoring officer or his deputy, the executive shall prepare a report which specifies—

(a)what action (if any) the executive has taken in response to the report of the monitoring officer or his deputy;

(b)what action (if any) the executive proposes to take in response to that report and when it proposes to take that action; and

(c)the reasons for taking the action specified in the executive’s report or, as the case may be, for taking no action.

(9)As soon as practicable after the executive has prepared a report under subsection (8), the executive shall arrange for a copy of it to be sent to each member of the authority and the authority’s monitoring officer.

(10)The duties of an authority’s monitoring officer under this section shall be performed by him personally or, where he is unable to act owing to absence or illness, personally by such member of his staff as he has for the time being nominated as his deputy for the purposes of this section.]

Textual Amendments

F59S. 5A inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/3327, arts. 1(2), 23(2); S.I. 2002/808, arts. 1(2), 22(2)

Modifications etc. (not altering text)

C23S. 5A(2)-(7) applied (with modifications) (5.3.2008) by The Cheshire (Structural Changes) Order 2008 (S.I. 2008/634), arts. 1, 8(4)

C24S. 5A(2)(5) applied (with modifications) (28.3.2008) by The Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 17(4)

6 Officer responsible for financial administration of certain authorities.E+W+S

(1)On and after the commencement day the Common Council shall—

(a)make arrangements for the proper administration of such of its financial affairs as relate to it in its capacity as a local authority, police authority or port health authority, and

(b)secure that one of its officers has responsibility for the administration of those affairs.

(2)Section 17 of the M26City of London Sewers Act 1897 (functions of the chamberlain of the City of London as regards financial affairs) shall cease to have effect on the commencement day.

(3)On and after the commencement day the person having responsibility for the administration of certain of the financial affairs of the Common Council under subsection (1) above shall—

(a)be a member of one or more of the bodies specified in subsection (5)below; or

(b)be the person who immediately before that day was the chamberlain of the City of London; or

(c)be a person who qualifies by virtue of section 113(2)(b) of the M27Local Government Finance Act 1988 (existing office holders) as a person who may be given responsibility for the financial affairs of an authority mentioned in section 111(2)(a) to (k) of that Act; or

(d)fulfil two or more of those conditions.

(4)On and after the commencement day the person having responsibility for the administration of the financial affairs of a new successor body under section 73 of the M28Local Government Act 1985 shall—

(a)be a member of one or more of the bodies specified in subsection (5)below; or

(b)be the person who immediately before that day had responsibility for the administration of the financial affairs of the body concerned under the said section 73; or

(c)be a person who qualifies by virtue of section 113(2)(b) of the Local Government Finance Act 1988 (existing office holders) as a person who may be given responsibility for the financial affairs of an authority mentioned insection 111(2)(a) to (k) of that Act; or

(d)fulfil two or more of those conditions.

(5)The bodies referred to in subsections (3)(a) and (4)(a) above are—

(a)the Institute of Chartered Accountants in England and Wales;

(b)the Institute of Chartered Accountants of Scotland;

(c)the Chartered Association of Certified Accountants;

(d)the Chartered Institute of Public Finance and Accountancy;

(e)the Institute of Chartered Accountants in Ireland;

(f)the Chartered Institute of Management Accountants;

(g)any other body of accountants established in the United Kingdom and forthe time being approved by the Secretary of State for the purposes of this section.

(6)The Secretary of State may make regulations containing, as regards the Common Council and any new successor body to which section 73 of the M29Local Government Act 1985 applies, provisions equivalent to sections 114 to 116 of the M30Local Government Finance Act 1988 (reports etc.) subject to—

(a)modifications to confine the provisions to the Common Council in its capacity as a local authority, police authority or port health authority; and

(b)any other modifications the Secretary of State thinks fit;

and any such regulations may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(7)In this section—

  • the commencement day” means the day on which this section comes into force;

  • the Common Council” means the Common Council of the City of London;

  • new successor body” means a body corporate established at any time by an order under section 67(3) of the Local Government Act 1985 (new body succeeding to residuary body’s functions).

(8)This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

Marginal Citations

M261897 c. cxxxiii.

M271988c. 41.

M291985c. 51.

Appointment and management etc. of staffE+W+S

7 All staff to be appointed on merit.E+W+S

(1)Every appointment of a person to a paid office or employment under—

(a)a local authority or parish or community council in England and Wales, or

(b)a local authority in Scotland,

shall be made on merit.

(2)Subsection (1) above applies to all appointments made by, or by any committee of, a local authority or parish or community council, whether made under section 112 of the Local Government Act 1972 or section 64 of the Local Government (Scotland) Act 1973 (appointment of staff) or otherwise, but has effect subject to—

F64(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)[F65section 18 of the M31Fire Services Act 1947 (regulations as to appointment etc. of chief officers and fire brigades);]

(c)section 7 of the M32Sex Discrimination Act 1975 (discrimination permitted in relation to employment where sex of employee is a genuine occupational qualification);

(d)section 5 of the M33Race Relations Act 1976 (discrimination permitted in relation to employment where being of a particular racial group is a genuine occupational qualification); F66. . .

(e)section 113 of the M34Local Government Finance Act 1988 and section 6 above (qualifications of officers responsible for administration of financial affairs of certain authorities) [F67; and.

F67(f)[F68sections 5 and 6 of the Disability Discrimination Act 1995 (meaning of discrimination and duty to make adjustments).]]

[F68sections 4, 4A, 4D and 4E of the Disability Discrimination Act 1995 (discrimination and duties to make adjustments in relation to employees and office-holders).]

(3)This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

Textual Amendments

F64S. 7(2)(a) omitted (2.12.1996) by virtue of 1995 c. 50, s. 70(4), Sch. 6 para. 5(a) (with ss. 59, 64, 65); S.I. 1996/1474, art. 2(3), Sch. Pt. III (and repealed (prosp.) by 1995 c. 50, s. 70(3)(5), Sch. 7 (with ss. 59, 64, 65))

F65S. 7(2)(b) repealed (E.W.) (1.10.2004 except in relation to W., 10.11.2004 for W.) by Fire and Rescue Services Act 2004 (c. 21), s. 61, Sch. 2; S.I. 2004/2304, art. 2; S.I. 2004/2917, art. 2

F66Word in s. 7(2)(d) omitted (2.12.1996) by virtue of 1995 c. 50, s. 70(4), Sch. 6 para. 5(b) (with ss. 59, 64, 65); S.I. 1996/1474, art. 2(3), Sch. Pt. III (and repealed (prosp.) by 1995 c. 50, s. 70(3)(5), Sch. 7 (with ss. 59, 64, 65)

F67S. 7(2)(f) and preceding “; and" inserted (2.12.1996) by 1995 c. 50, s. 70(4), Sch. 6 para. 5(c) (with ss. 59, 64, 65); S.I. 1996/1474, art. 2(3), Sch. Pt. III

F68S. 7(2)(f) substituted (3.7.2003 for specified purposes, 1.10.2004 in so far as not already in force) by The Disability Discrimination Act 1995 (Amendment) Regulations 2003 (S.I. 2003/1673), reg. 1(2)(3), 31(1)

Modifications etc. (not altering text)

C25S. 7 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 13(7) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 7 applied (8.5.2000) by 1999 c. 29, s. 67(6) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

Marginal Citations

8 Duty to adopt standing orders with respect to staff.E+W+S

(1)The Secretary of State may by regulations require relevant authorities, subject to such variations as may be authorised by the regulations—

(a)to incorporate such provision as may be prescribed by the regulations instanding orders relating to their staff; and

(b)to make or refrain from making such other modifications of any such standing orders as may be so prescribed.

(2)For the purposes of this section standing orders relate to the staff of a relevant authority if they make provision for regulating—

(a)the appointment of persons to paid office or employment under the authority; or

(b)the dismissal of persons holding such office or employment and the taking of other disciplinary action against such persons.

(3)Without prejudice to the generality of subsection (1) above, regulations under this section may require a relevant authority’s standing orders—

(a)so to restrict the manner of exercising the power to take steps for or towards the selection of candidates for interview, or for appointment, as to make it exercisable only by the authority themselves, by a committee orsub-committee of the authority or by particular officers of the authority;

(b)to restrict the power of the authority or any of their committees or sub-committees—

(i)to give directions to persons making appointments on their behalf as to the identity of the individuals to be appointed; or

(ii)otherwise to interfere with the making of appointments by such persons;

(c)to require the monitoring officer of the authority to prepare a report tothe authority in respect of every proposed appointment of a person to a politically restricted post;

(d)to require every such report to state whether, in the opinion of the monitoring officer, the proposed appointment can be made—

(i)without any contravention of any provision made by or under this Part; and

(ii)without any matter being taken into account which could not properly be taken into account;

and, if in his opinion it cannot be so made, his reasons; and

(e)to prohibit the authority or any committee, sub-committee or other person acting on their behalf from dismissing or taking other disciplinary action against a person holding office or employment under the authority except in accordance with recommendations contained in a report made to the authority by an independent person of such a description as is prescribed by the regulations.

(4)Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate; and that provision may include—

(a)provision which, for the purposes of any such restriction as is mentioned in subsection (3) above, makes modifications of any enactment with respect to the delegation of a relevant authority’s functions;

(b)provision which (with or without modifications) applies provisions of section 5 above in relation to any report prepared in consequence of regulations made by virtue of subsection (3)(c) above;

(c)provision specifying the consequences—

(i)in relation to any appointment or contract of employment;

(ii)in relation to any proceedings on a complaint to an [F69employment tribunal]; and

(iii)in relation to any expenditure incurred by the authority,

of any contravention of standing orders made in pursuance of the regulations; and

[F70(d)without prejudice to section 191(1) below, special provision in relation to the appointment of persons—

(i)in pursuance of section 9 below;

(ii)for the purposes of functions exercised by joint committees on which relevant authorities are represented; and

(iii)in pursuance of regulations made under paragraph 6 of Schedule 1 to the Local Government Act 2000 (mayor’s assistant).]

(5)In this section “relevant authority”—

(a)in relation to England and Wales, means a local authority of any of the descriptions specified in paragraphs (a) to (e) of section 21(1) below; and

(b)in relation to Scotland, means a [F71council constituted under section 2 of the Local Government etc. (Scotland) Act 1994].

9 Assistants for political groups.E+W+S

(1)Nothing in section 7(1) above or in any enactment, standing order or rule of law by virtue of which it is unlawful for a relevant authority or any committee or sub-committee of such an authority to have regard to any person’s political activities or affiliations in determining whether he should be appointed to any paid office or employment under the authority shall apply to the appointment of a person in pursuance of this section.

(2)An appointment is an appointment in pursuance of this section if—

(a)the appointment is made for the purpose of providing assistance, in the discharge of any of their functions as members of a relevant authority, to the members of any political group to which members of the authority belong;

(b)the terms of the appointment comply with subsection (3) below;

(c)the appointment is to one of not more than three posts which a relevant authority have decided to create for the purposes of this section; and

(d)each of those posts falls, under the standing orders of the authority, to be filled from time to time in accordance with the wishes of a political group to which the post has been allocated under those standing orders.

(3)The terms on which any person is appointed to or holds any appointment in pursuance of this section must be such as secure that the annual rate of remuneration for the post is less than the relevant amount and that the appointment terminates at or before the end of—

(a)in the case of a post under an authority in England and Wales, the day in the appropriate year on which the authority hold the meeting which they are required to hold in pursuance of paragraph 1 of Part I of Schedule 12 to the M35Local Government Act 1972 (annual meeting of principal councils); and

(b)in the case of a post under an authority in Scotland, the first day after the appointment on which a meeting is held in pursuance of the requirement under paragraph 1 of Schedule 7 to the M36Local Government (Scotland) Act 1973 that a meeting is held within twenty-one days from the date of an election.

(4)For the purposes of subsection (3) above the annual rate of remuneration for a post under a relevant authority is less than the relevant amount if the annual rate of remuneration in respect of the post—

(a)is less than £13,500 or such higher amount as the Secretary of State may by order made by statutory instrument specify; and

(b)where that post is a part time post, would be less than that amount if it were a full time post and carried remuneration at the same rate;

and a statutory instrument containing an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.

[F72(4A)An order made under subsection (4)(a) above in relation to England or Wales may, instead of specifying an amount, specify a point on a relevant scale specified by the order.

(4B)A “relevant scale” is a scale consisting of points and of amounts corresponding to those points.

(4C)In relation to any time while an order made by virtue of subsection (4A) above is in force, the amount that at that time corresponds to the point specified by the order is to be treated for the purposes of subsection (4)(a) above as specified by the order.]

(5)The standing orders of a relevant authority the members of which are divided into different political groups shall, for the purposes of subsection (2)(d) above—

(a)prohibit the making of an appointment to any post allocated to a political group until the authority have allocated a post to each of the groups which qualify for one;

(b)prohibit the allocation of a post to a political group which does not qualify for one; and

(c)prohibit the allocation of more than one post to any one political group.

(6)Subject to subsection (7) below, where the members of a relevant authority are divided into different political groups, a group shall qualify for a post if—

(a)the membership of that group comprises at least one-tenth of the membership of the authority;

(b)the number of the other groups (if any) which are larger than that group does not exceed two; and

(c)where the number of the other groups which are the same size as or larger than that group exceeds two, the authority have determined that that group should be a group to which a post is allocated;

and it shall be the duty of a relevant authority, before making any allocation for the purposes of this section in a case in which there are groups which would qualify for posts if paragraph (c) above were disregarded, to make such determinations under that paragraph as secure that there are no more nor less than three groups which do qualify for a post.

(7)Where the members of a relevant authority are divided into political groups only one of which has a membership that comprises one-tenth or more of the membership of the authority—

(a)the groups qualifying for a post shall be that group and one other group;and

(b)the other group shall be the one with the next largest membership or, in a case in which there is more than one group with the next largest membership, such one of those groups as may be determined by the authority;

and, in such a case, it shall be the duty of the authority to determine which of the groups with the next largest membership is to qualify for a post before making any allocation for the purposes of this section to the group with the largest membership.

(8)Neither a relevant authority nor any committee or sub-committee of a relevant authority shall exercise any power under—

(a)section 101 of the M37Local Government Act 1972 (delegation); or

(b)section 56 of [F73, or Schedule 10 or 20 to,] the M38Local Government (Scotland) Act 1973 (which makes corresponding provision for Scotland),[F74; or

(c)Part II of the Local Government Act 2000 (arrangements with respect to executives etc.)]

so as to arrange for the discharge of any of the authority’s functions by any person who holds a post under the authority to which he was appointed in pursuance of this section.

[F75(8A)Neither an executive, a committee of an executive or a member of an executive, of a relevant authority, shall exercise any power under—

(a)sections 14 to 18 of the Local Government Act 2000 (discharge of functions); or

(b)section 101(5) of the Local Government Act 1972 (arrangements for the discharge of functions by local authorities),

so as to arrange for the discharge of any of the authority’s functions by any person who holds a post under the authority to which he was appointed in pursuance of this section.

(8B)An area committee of a relevant authority shall not exercise any power under arrangements made under regulations made under section 18 of the Local Government Act 2000 (discharge of functions by area committees) so as to arrange for the discharge of any of the authority’s functions by any person who holds a post under the authority to which he was appointed in pursuance of this section.]

(9)No person holding any office or employment under a relevant authority shall be required to work under the direction of a person holding a post to which he was appointed in pursuance of this section except for the purpose of providing that person, or the political group to which his post is allocated, with secretarial or clerical services.

(10)Without prejudice to section 8 above, the Secretary of State may, for the purposes of this section and any standing orders relating to appointments in pursuance of this section, by regulations make provision—

(a)as to the circumstances in which the members of a relevant authority areto be treated as divided into different political groups;

(b)as to the persons who are to be treated as members of such a group and as to when a person is to be treated as having ceased to be a member of such a group;

(c)requiring the question whether a person is or is not a member of apolitical group to be determined in such manner as may be provided for by or under the regulations;

(d)requiring a relevant authority from time to time to review allocations made for the purposes of this section;

(e)specifying the manner in which, and times at which, the wishes of a political group are to be expressed and the consequences of a failure by such a group to express its wishes;

and regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(11)In this section—

  • appropriate year”, in relation to a post held by any person under a relevant authority, means—

    (a)

    where the authority is [F76 subject to whole council elections by virtue of Chapter 1 of Part 2 of the Local Government and Public Involvement in Health Act 2007], the period of twelve months beginning with the first such election to be held after that person is appointed to that post; and

    (b)

    in any other case, the period of twelve months beginning with the third anniversary of that person’s appointment to that post;

  • [F77“area committee” has the same meaning as in section 18 of the Local Government Act 2000;]

  • membership”, in relation to a relevant authority, means the number of persons who are for the time being members of the authority;

  • relevant authority”—

    (a)

    in relation to England and Wales, means the council of any county, [F78county borough] district or London borough; and

    (b)

    in relation to Scotland, means a [F79council constituted under section 2 of the Local Government etc. (Scotland) Act 1994].

Textual Amendments

F73Words in s. 9(8)(b) repealed (S.) (1.4.1996) by 1994 c. 39, s. 180(1)(2), Sch. 13 para. 161(1)(6)(a), Sch. 14 (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)(d), Sch. 2

F74S. 9(8)(c) and the word preceding it inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 24(a); S.I. 2002/808, arts. 1(2), 23(a)

F75S. 9(8A)(8B) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 24(b); S.I. 2002/808, arts. 1(2), 23(b)

F77S. 9(11): definition of "area committee" inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 24(c); S.I. 2002/808, arts. 1(2), 23(c)

F78S. 9(11): words in the definition of “relevant authority" para. (a) inserted (7.1.1997) by S.I. 1996/3071, art. 2, Sch. para. 3(1)

F79S. 9(11): words in the definition of “relevant authority" para. (b) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(6)(b) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

Modifications etc. (not altering text)

C31S. 9(1)(9)(11) applied (8.5.2000) by 1999 c. 29, s. 67(8) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

C32S. 9(1)(3)(4)(8)(8A)(8B)(9) applied (with modifications) (E.) (6.5.2002) by The Local Authorities (Elected Mayor and Mayor's Assistant) (England) Regulations 2002 (S.I. 2002/975), regs. 1(2), 3(7)(8)

Marginal Citations

10 Limit on paid leave for local authority duties.E+W+S

(1)Notwithstanding anything in [F80section 50(4) of the Employment Rights Act 1996] (conditions of time off for public duties), where—

(a)a local authority permit an employee of theirs to take time off for the purpose of performing the duties of a member of a relevant council; and

(b)those duties do not include the duties of chairman of the council,

it shall be unlawful for the authority to make any payment of remuneration or other payment to that employee in respect of so much (if any)of any time off for that purpose as is in excess of two hundred and eight hours in any one financial year and is time off to which the employee would not be entitled apart from his membership of that council.

(2)In this section—

  • chairman”, in relation to a relevant council, includes any corresponding office the holder of which is referred to as mayor or Lord Mayor or by any other description;

  • employee” has the same meaning as in the [F81the Employment Rights Act 1996];

  • financial year” means the twelve months ending with 31st March; and

  • relevant council” means the council of any county, [F82county borough] district or London borough, the Common Council of the City of London, a parish orcommunity council or any council in Scotland which is a local authority for the purposes of [F83subsection (2) of section 50] of that Act (time off for public duties);

and subsection (3) of that section (meaning of duties of a member of a body) shall apply for the purposes of this section as it applies for the purposes of that section.

Textual Amendments

F80Words in s. 10(1) substituted (22.8.1996) by 1996 c. 18, ss. 240, 243, Sch. 1 para. 44(a) (with ss. 191-195, 202)

F81S. 10(2): words in the definition of “employee" substituted (22.8.1996) by 1996 c. 18, ss. 240, 243, Sch. 1 para. 44(b)(i) (with ss. 191-195, 202)

F82S. 10(2): words in the definition of “relevant council" inserted (7.1.1997) by S.I. 1996/3071, art. 2, Sch. para. 3(2)

F83S. 10(2): words in the definition of “relevant council" substituted (22.8.1996) by 1996 c. 18, ss. 240, 243, Sch. 1 para. 44(b)(ii) (with ss. 191-195, 202)

Modifications etc. (not altering text)

C33S. 10 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 10 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 11(3) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

11 Confidentiality of staff records.E+W+S

(1)Nothing in [F84section 17 of the M39Local Government Finance Act 1982 or] section 79 of the M40Local Government Act 1985 (public inspection of accounts etc.) or in section 101 or 106 of the M41Local Government (Scotland) Act 1973 (which makes corresponding provision for Scotland) shall entitle any person—

(a)to inspect so much of any document as contains personal information about a member of the relevant body’s staff; or

(b)to require any such information to be disclosed in answer to any question.

(2)Information shall be regarded as personal information about a member of the relevant body’s staff if it relates specifically to a particular individual and is available to that body for reasons connected with the fact—

(a)that that individual holds or has held any office or employment under that body; or

(b)that payments or other benefits in respect of any office or employment under any other person are or have been made or provided to that individual by that body.

(3)In this section—

  • document” includes accounts, books, deeds, contracts, bills, vouchers and receipts; and

  • relevant body” in relation to accounts which are required to be audited in accordance with [F85the Audit Commission Act 1998] or Part VII of the said Act of 1973, means the body whose accounts are required to be audited or, as the case may be, the Common Council of the City of London;

and references in this section to a payment made or benefit provided to an individual in respect of any office or employment include references to a payment made or benefit provided to him in respect of his ceasing to hold the office or employment.

(4)This section shall have effect only in relation to—

(a)the inspection of, or of documents relating to, accounts for periods beginning on or after 1st April 1990; and

(b)the disclosure of information in answer to questions about such accounts.

Textual Amendments

F84Words in s. 11(1) repealed (E.W.) (11.9.1998) by 1998 c. 18, ss. 54(1)(3), 55(2), Sch. 3 para. 18(1)(a), Sch. 5

F85S. 11(3): words in definition of “relevant body" substituted (E.W.) (11.9.1998) by 1998 c. 18, ss. 54(1), 55(2), Sch. 3 para. 18(1)(b)

Modifications etc. (not altering text)

C36S. 11 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

Marginal Citations

M411973c. 65.

12 Conflict of interest in staff negotiations.E+W+S

(1)It shall be the duty of a local authority to secure that, so far as practicable, the interests of that authority in any negotiations with respect to the terms and conditions on which persons in local authority employment hold office or are employed are never represented, whether directly or indirectly by, or by persons who include—

(a)a person who is both a member of the authority and in such employment; or

(b)a person who is both a member of the authority and an official or employeeof a trade union whose members include persons in local authority employment.

(2)In this section—

  • F86[member”, in relation to a trade union consisting wholly or partly of, or of representatives of, constituent or affiliated organisations, includes a member of any of its constituent or affiliated trade unions;]

  • official” and “trade union” have the same meanings as in M42[F87the Trade Union and Labour Relations (Consolidation) Act 1992]

and a person shall be treated for the purposes of this section as in local authority employment if he holds any paid office or employment under a local authority or any such paid office or employment under any other person as, by virtue of section 80(1)(a) of the M43Local Government Act 1972 or section 31(1)(a) of the M44Local Government (Scotland) Act 1973, disqualifies him for membership of any authority.

(3)This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

Textual Amendments

F86Definition of 'member' in s. 12(2) substituted (16.10.1992) by Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52), ss. 300(2), 302, Sch. 2 para. 39(2)

Modifications etc. (not altering text)

C37S. 12 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 12 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 13(8) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 12 applied (with modifications) by 1995 c. x, ss. 1(3), 44, Sch. Pt. I

Marginal Citations

Voting rights of members of certain committeesE+W+S

13 Voting rights of members of certain committees: England and Wales.E+W+S

(1)Subject to the following provisions of this section, a person who—

(a)is a member of a committee appointed under a power to which this section applies by a relevant authority and is not a member of that authority;

(b)is a member of a joint committee appointed under such a power by two or more relevant authorities and is not a member of any of those authorities; or

(c)is a member of a sub-committee appointed under such a power by such acommittee as is mentioned in paragraph (a) or (b) above and is not a member of the relevant authority, or one of the relevant authorities, which appointed that committee,

shall for all purposes be treated as a non-voting member of that committee, joint committee or, as the case may be, sub-committee.

(2)The powers to which this section applies are—

(a)the powers conferred on any relevant authority by subsection (1) of section 102 of the M45Local Government Act 1972 (ordinary committees, joint committees and sub-committees);

F88[(b)the powers exercisable by any relevant authority in accordance with any arrangements approved under paragraph 1 of Part II of Schedule 1 to the M46Education Act 1944, by virtue of any order under paragraph 3 of that Part of that Schedule or by virtue of paragraph 10 of that Part of that Schedule (education committees, joint education committees and education sub-committees);]

F89(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Nothing in subsection (1) above shall require a person to be treated as a non-voting member of a committee or sub-committee falling within subsection (4) below; but, except—

(a)in the case of a sub-committee appointed by a committee falling within paragraph (e) of that subsection; and

(b)in such cases as may be prescribed by regulations made by the Secretary of State,

a person who is a member of a sub-committee falling within that subsection shall for all purposes be treated as a non-voting member of that sub-committee unless he is a member of the committee which appointed the sub-committee.

(4)A committee or sub-committee falls within this subsection if it is—

[F90(a)a committee appointed for the purposes of section 2 or 3(4) of the M47Police Act 1964 (constitution of a committee of a relevant authority as a police authority);]

(b)a local fisheries committee for any sea fisheries district;

(c)a committee established in accordance with any regulations made by virtue of section 7 of the M48Superannuation Act 1972 (regulations making provision for the superannuation of persons employed in local government service etc.);

F91(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)a committee appointed under section 102(4) of the Local Government Act 1972 (appointment of advisory committees by local authorities);

(f)a committee constituted in accordance with [F92Part I of Schedule 33 to the Education Act 1996 (constitution of appeal committees for admission appeals etc.)];

(g)a committee established exclusively for the purpose of discharging such functions of a relevant authority as may be prescribed by regulations made by the Secretary of State;

(h)a sub-committee appointed by a committee falling within any of [F93paragraphs (b) to (g)] above or such a sub-committee as is so prescribed.

[F94(5)Nothing in this section shall prevent the appointment of a person who is not a member of a local education authority as a voting member of—

(a)any committee or sub-committee appointed by the local authority wholly or partly for the purpose of discharging any functions with respect to education conferred on them in their capacity as a local education authority,

(b)any joint committee appointed by two or more local authorities wholly or partly for the purpose of discharging any functions with respect to education conferred on them in their capacity as local education authorities, or

(c)any sub-committee appointed by any such committee or joint committee wholly or partly for the purpose of discharging any of that committee’s functions with respect to education,

where that appointment is required [F95either] by directions given by the Secretary of State under section 499 of the Education Act 1996 (power of Secretary of State to direct appointment of members of committees) [F96or pursuant to regulations under subsection (6) of that section].]

[F97(5A)Nothing in this section shall prevent the appointment of a council manager of a local authority, or one other officer of that local authority in his place, as a voting member of a joint committee, or a sub-committee of such a committee, where—

(a)that local authority have a mayor and council manager executive F98; and

(b)the joint committee or the sub-committee has been appointed for the purpose of discharging functions which, as respects that local authority, are the responsibility of that executive.]

[F99(6)The Secretary of State may, if it appears to him appropriate to do so inconsequence of the preceding provisions of this section, withdraw any approval given before the coming into force of this section in relation to any arrangements for the purposes of paragraph 1 of Part II of Schedule 1 to the said Act of 1944].

(7)Where a person is treated by virtue of this section as a non-voting member of any committee, joint committee or sub-committee, he shall not be entitled to vote at any meeting of the committee, joint committee or sub-committee on any question which falls to be decided at that meeting; and the reference insubsection (5) above to a voting member, in relation to any [F100committee, joint committee or sub-committee appointed for the purpose mentioned in that subsection], is a reference to a person who is entitled to vote at any meeting of that committee orsub-committee on any question which falls to be decided at that meeting.

(8)In subsection (3) of section 102 of the M49Local Government Act 1972, the words from “but at least” onwards (which require at least two-thirds of certain committees to be members of the appointing authority or authorities) shall be omitted.

(9)In this section—

[F101“council manager”, “executive” and “mayor and council manager executive” have the same meaning as in Part II of the Local Government Act 2000 (arrangements with respect to executives etc.); and]

  • F102. . .

  • relevant authority” means a local authority of any of the descriptions specified in [F103paragraphs (a) to (f) or (h) to [F104(jb)]] of section 21(1) below or any parish or community council;

and references in this section to voting include references to making use of a casting vote.

Textual Amendments

F89S. 13(2)(c) repealed (E.W.) (1.4.2005 for E., 1.4.2006 for W.) by Children Act 2004 (c. 31), Sch. 5 Pt. 4; S.I. 2005/394, art. 2(2)(g); S.I. 2006/885, art. 2(h)

F90S. 13(4)(a) repealed (1.4.1995 (E.W.) otherwiseprosp.) by 1994 c. 29, s. 93, Sch. 9 Pt. I; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F91S. 13(4)(d) repealed (1.4.1997) by 1995 c. 25, s. 120(3), Sch. 24 (with ss. 7(6), 115, 117); S.I. 1996/2560, art. 2, Sch.

F92Words in s. 13(4)(f) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 96(1)(2) (with ss. 1(4), 561, 562, Sch. 39 paras. 30, 39)

F93Words in s. 13(4)(h) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, ss. 43, 94(1), Sch. 4 para. 36(a); S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F95Word in s. 13(5) inserted (1.9.1999) by 1998 c. 31, s. 140(1), Sch. 30, para. 22(a) (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch. 1

F96Words in s. 13(5) inserted (1.9.1999) by 1998 c. 31, s. 140(1), Sch. 30, para. 22(b) (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch. 1

F97S. 13(5A) inserted (E.) (18.5.2001) and (W.) (1.4.2002) by S.I. 2001/1517, art. 6(1)(a); S.I. 2002/803, art. 6(1)(a)

F98See regulations 11 and 12 of the Local Authorities (Arrangements for the Discharge of Functions) (England) Regulations 2000 (S.I. 2000/2851) and the Local Authorities (Executive Arrangements) (Discharge of Functions) (Wales) Regulations 2001 (S.I. 2001/2287 (W.175)).

F100Words in s. 13(7) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 96(1)(4) (with ss. 1(4), 561, 562, Sch. 39 paras. 30, 39)

F101S. 13(9): definition inserted (E.) (18.5.2001) and (W.) (1.4.2002) by S.I. 2001/1517, art. 6(1)(b); S.I. 2002/803, art. 6(1)(b)

F102S. 13(9): the definition of “foundation governors" and the “and" immediately following it repealed (1.11.1996) by 1996 c. 56, ss. 582(1)(2), 583(2), Sch. 37 Pt. I para. 96(1)(5), Sch. 38 Pt. I (with ss. 1(4), 561, 562, Sch. 39 paras. 5, 6, 8, 30, 39)

F103S. 13(9): words in the definition of "relevant authority" substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, ss. 43, 94(1), Sch. 4 para. 36(a); S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

Modifications etc. (not altering text)

C43S. 13 applied (E.W.) (12.11.2009 for specified purposes) by Marine and Coastal Access Act 2009 (c. 23), ss. 151(7)(b), 324(1)(c)(d) (with ss. 172(3), 185)

Marginal Citations

14 Voting rights of members of certain committees: Scotland.E+W+S

(1)Subject to the following provisions of this section, a person who—

(a)is a member of a committee appointed under subsection (1) of section 57of the M50Local Government (Scotland) Act 1973 by a relevant authority and is not a member of that authority;

(b)is a member of a joint committee appointed under that subsection by two or more relevant authorities and is not a member of any of those authorities; or

(c)is a member of a sub-committee appointed under that subsection by such a committee as is mentioned in paragraph (a) or (b) above and is not a member of the relevant authority, or one of the relevant authorities, which appointed that committee,

shall for all purposes be treated as a non-voting member of that committee, joint committee or, as the case may be, sub-committee.

[F105(2)Subject to the following provisions of this section, a person who—

(a)is a member of an education committee appointed under section 124 of the Local Government (Scotland) Act 1973 by an education authority and is not amember of that authority;

(b)is a member of a joint committee appointed under paragraph 7 of Schedule 10 to that Act by two or more education authorities and is not a member of any of these authorities; or

(c)is a member of a sub-committee appointed under paragraph 8 of thatSchedule by an education committee or such a joint committee and is not a member of the education committee or, as the case may be, one of the education authorities which appointed the joint committee,

shall for all purposes be treated as a non-voting member of that committee, joint committee or, as the case may be, sub-committee.]

[F105(3)Subject to the following provisions of this section, a person who—

(a)is a member of a social work committee appointed under section 2 of the M51Social Work (Scotland) Act 1968 by a local authority for the purposes of that Act and is not a member of that authority;

(b)is a member of a joint committee appointed under paragraph 6 of Schedule 20 to the Local Government (Scotland) Act 1973 by two or more such authorities and is not a member of any of those authorities; or

(c)is a member of a sub-committee appointed under paragraph 7 of that Schedule by a social work committee or such a joint committee and is not a member of the social work committee or, as the case may be, one of the local authorities which appointed the joint committee,]

shall for all purposes be treated as a non-voting member of that committee, joint committee or, as the case may be, sub-committee.

(4)Nothing in [F106subsection (1)] above shall require a person to be treated as a non-voting member of a committee or sub-committee falling within subsection (5) below; but, except—

(a)in the case of a sub-committee appointed by a committee falling within paragraph (b) of that subsection; and

(b)in such cases as may be prescribed by regulations made by the Secretary of State,

a person who is a member of a sub-committee falling within that subsection shall for all purposes be treated as a non-voting member of that sub-committee unless he is a member of the committee which appointed the sub-committee.

(5)A committee or sub-committee falls within this subsection if it is—

(a)a committee established in accordance with any regulations made by virtue of section 7 of the M52Superannuation Act 1972 (regulations making provision for the superannuation of persons employed in local government service etc.);

(b)a committee appointed under section 57(4) of the M53Local Government (Scotland) Act 1973 (appointment of advisory committees by local authorities);

(c)a committee constituted in accordance with Schedule A1 to the M54Education (Scotland) Act 1980 (appeal committees for hearing placing and other appeals);

[F107(d)a Children’s Panel Advisory Committee formed under paragraph 3, or a joint advisory committee formed under paragraph 8, of Schedule 1 to the Children (Scotland) Act 1995;]

(e)a committee established exclusively for the purpose of discharging such functions of a relevant authority as may be prescribed by regulations made by the Secretary of State;

(f)a sub-committee appointed by a committee falling within any of paragraphs (a) to (e) above or such a sub-committee as is so prescribed.

[F108(6)Nothing in this section shall prevent the appointment as a voting member of—

(a)a committee such as is mentioned in subsection (1) of section 124 of the M55Local Government (Scotland) Act 1973 (committees appointed by education authority); or

(b)a joint committee of two or more authorities whose purposes include either of those mentioned in paragraphs (a) and (b) of that subsection; or

(c)any sub-committee of such a committee or joint committee,

of a person such as is mentioned in subsection (4) of the said section 124.]

(7)Where a person is treated by virtue of this section as a non-voting member of any committee, joint committee or sub-committee, he shall not be entitled to vote at any meeting of the committee, joint committee or sub-committee on any question which falls to be decided at that meeting; and the reference in subsection (6) above to a voting member, in relation to any such committee, joint committee or sub-committee as is mentioned in that subsection, is a reference to a person who is entitled to vote at any meeting of that committee, joint committee or sub-committee on any question which falls to be decided at that meeting.

(8)In the Local Government (Scotland) Act 1973—

(a)in section 57(3), the words from “but at least” onwards (which require at least two-thirds of certain committees to be members of the appointing authority or authorities);

[F109(aa)section 124(5);]

(b)in section 161(6), the words from “but at least” onwards (which make corresponding provision in relation to a social work committee);

(c)in Schedule 10, paragraph 11 (which requires at least half of a joint education committee to be members of the appointing authorities);

(d)in Schedule 20, paragraph 10 (which requires at least two-thirds of a joint social work committee to be members of the appointing authorities),

shall be omitted.

(9)In this section “relevant authority” means a [F110council constituted under section 2 of the Local Government etc. (Scotland) Act 1994]; and references in this section to voting include references to making use of a casting vote.

Textual Amendments

F106Words in s. 14(4) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(7)(b) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

F107S. 14(5)(d) substituted (1.4.1997) by 1995 c. 36, s. 105(4), Sch. 4 para. 49(1)(2) (with s. 103(1)); S.I. 1996/3201, art. 3(7)

F108S. 14(6) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(7)(d) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

F109S. 14(8)(aa) inserted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(7)(e) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

F110Words in s. 14(9) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(7)(f) (with s. 128(8)); S.I. 1996/323, art. 4(1)(c)

Marginal Citations

Political balance on committees etc.E+W+S

15 Duty to allocate seats to political groups.E+W+S

(1)It shall be the duty of a relevant authority having power from time to time to make appointments to a body to which this section applies to review the representation of different political groups on that body—

(a)where the members of the authority are divided into different political groups at the time when this section comes into force, as soon as practicable after that time;

(b)where the authority hold annual meetings in pursuance of paragraph 1 of Part I of Schedule 12 to the M56Local Government Act 1972 (annual meeting of principal councils) and the members of the authority are divided into different political groups at the time of any such meeting, at or as soon as practicable after the meeting;

(c)where, at the time of the meeting required by paragraph 1 of Schedule 7 to the M57Local Government (Scotland) Act 1973 to be held in an election year within twenty-one days of the election, the members of the authority are divided into different political groups, at or as soon as practicable after the meeting;

(d)as soon as practicable after any such division as is mentioned in paragraphs (a) to (c) above occurs; and

(e)at such other times as may be prescribed by regulations made by the Secretary of State.

(2)Except in such cases as may be prescribed by regulations made by the Secretary of State, it shall be the duty of every committee of a relevant authority which is a committee having power from time to time to make appointments to a body to which this section applies to review the representation of different political groups on that body—

(a)where the members of the authority are divided into different political groups at the time when this section comes into force, as soon as practicable after that time; and

(b)as soon as practicable after any occasion on which the members of the committee are changed in consequence of a determination under this section.

(3)Where at any time the representation of different political groups on a body to which this section applies falls to be reviewed under this section by any relevant authority or committee of a relevant authority, it shall be the duty of that authority or committee, as soon as practicable after the review, to determine the allocation to the different political groups into which the members of the authority are divided of all the seats which fall to be filled by appointments made from time to time by that authority or committee.

(4)Subject to subsection (6) below, it shall be the duty of a relevant authority or committee of a relevant authority—

(a)in performing their duty under subsection (3) above; and

(b)in exercising their power, at times not mentioned in subsection (3) above, to determine the allocation to different political groups of seats on a body to which this section applies,

to make only such determinations as give effect, so far as reasonably practicable, to the principles specified in subsection (5) below.

(5)The principles mentioned in subsection (4) above, in relation to the seats on any body which fall to be filled by appointments made by any relevant authority or committee of a relevant authority, are—

(a)that not all the seats on the body are allocated to the same political group;

(b)that the majority of the seats on the body is allocated to a particular political group if the number of persons belonging to that group is a majority of the authority’s membership;

(c)subject to paragraphs (a) and (b) above, that the number of seats on the ordinary committees of a relevant authority which are allocated to each political group bears the same proportion to the total of all the seats on the ordinary committees of that authority as is borne by the number of members of that group to the membership of the authority; and

(d)subject to paragraphs (a) to (c) above, that the number of the seats on the body which are allocated to each political group bears the same proportion to the number of all the seats on that body as is borne by the number of members of that group to the membership of the authority.

(6)Where any relevant authority or committee of a relevant authority are required, in determining the allocation to different political groups of seats on a body to which this section applies, to give effect to the principles specified in subsection (5) above—

(a)any seats which, in accordance—

(i)with provision made by virtue of subsection (5) of section 13 above; or

(ii)with subsection (6) of section 14 above,

are to be or may be filled by the appointment of persons who are not members of the authority shall be taken into account for the purpose of determining how many seats constitute a majority of the seats on a body mentioned in either of those subsections; but

(b)that authority or committee shall, in making that determination, disregard for all other purposes any seats which, in accordance with any such provision, the said subsection (6) or otherwise, are to be or may be so filled;

and for the purposes of this subsection a seat on an advisory committee of a relevant authority or on a sub-committee appointed by such an advisory committee shall not be treated as one which may be so filled unless the authority have determined that it must be so filled.

(7)Schedule 1 to this Act shall have effect for determining the bodies towhich this section applies and for the construction of this section andsections 16 and 17 below.

Modifications etc. (not altering text)

C45Ss. 15-17 applied (with modifications) by S.I. 1990/1553, regs. 21, 22

C46Ss. 15, 16 modified by S.I. 1990/1553, reg. 16(1)(2)

C47S. 15 excluded (3.4.1995) by 1994 c. 19, ss. 30(11), 31(9) (with ss. 54(7), 55(7), Sch. 17 paras. 22(1), 23(2)); S.I. 1995/852, art. 5

S. 15 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 57(1) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

S. 15 extended (E.W.) (26.11.2000 for E. and 28.7.2001 for W.) by 2000 c. 22 ss. 21(11)(b), 108(4); S.I. 2000/2849, art. 2(a)

S. 15 excluded (E.W.) (19.12.2000 for E. and police authorities in Wales otherwise 28.7.2001) by 2000 c. 22, ss. 53(10), 108(4); S.I. 2000/3335, art. 2

S. 15 applied (E.) (2.4.2001) by S.I. 2001/1299, reg. 6(10)(b)

S. 15 excluded (W.) (28.7.2001) by S.I. 2001/2283, reg. 12

S. 15 applied (W.) (28.7.2001) by S.I. 2001/2284, reg. 5(1)(b)

C48S. 15 applied in part (with modifications) (E.W.) (7.7.2005) by The North Northamptonshire Joint Committee Order 2005 (S.I. 2005/1552), arts. 1(2), 5(3)

C51S. 15(2)(3)(5) modified by S.I. 1990/1553, reg. 23 (as added by S.I. 1991/1398, reg. 8)

Marginal Citations

16 Duty to give effect to allocations.E+W+S

(1)Where any relevant authority or any committee of a relevant authority have determined the allocation to different political groups of the seats on a body to which section 15 above applies, it shall be the duty of that authority or committee so to exercise their power to make appointments to that body as to give effect—

(a)as soon as practicable after the determination; and

(b)if a vacancy subsequently occurs on that body, as soon as practicable after the occurrence of the vacancy,

to such wishes about who is to be appointed to the seats on that body which are allocated to a particular political group as are expressed by that group.

(2)Where—

(a)any person has been appointed, otherwise than for a fixed term, to a body to which section 15 above applies; and

(b)that appointment was made, in pursuance of subsection (1) above, in accordance with the wishes of a political group,

then, so long as that person’s seat continues to be allocated to that group, the authority or committee which made the appointment shall act in accordance with the wishes of that group in determining whether and when to terminate the appointment.

(3)The proceedings of a body to which section 15 above applies shall not be invalidated by any defect by virtue of this section or that section in the appointment of any person to that body.

(4)This section applies in relation to an allocation of seats to different political groups whether or not that allocation is made in pursuance of any duty under section 15 above.

Modifications etc. (not altering text)

C52Ss. 15-17 applied (with modifications) by S.I. 1990/1553, regs. 21, 22

C53Ss. 15, 16 modified by S.I. 1990/1553, reg. 16(1)(2)

C54S. 16 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 57(1) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

C55S. 16 applied (with modifications) (E.W.) (7.7.2005) by The North Northamptonshire Joint Committee Order 2005 (S.I. 2005/1552), arts. 1(2), 5(3)

17 Exceptions to and extensions of political balance requirements.E+W+S

(1)Subject to subsection (2) below, sections 15 and 16 above shall not apply in relation to appointments by a relevant authority or committee of a relevant authority to any body in so far as different provision is made by arrangements approved by the authority or committee—

(a)in such manner as may be prescribed by regulations made by the Secretary of State; and

(b)without any member of the authority or committee voting against them.

(2)Arrangements approved under subsection (1) above in relation to any body shall not affect any duty imposed by virtue of section 15(1)(c), (d) or (e) or (2) above on a relevant authority or committee to review the representation of different political groups on that body; and, accordingly, such arrangements shall cease to have effect when any such duty arises.

(3)The Secretary of State may, for the purpose of securing what appears to him to be the appropriate representation of different political groups on any sub-committee falling within subsection (4) below, by regulations make such provision as he thinks fit.

(4)The sub-committees that fall within this subsection are those to which appointments may be made by bodies to which section 15 above applies but which are not themselves such bodies.

(5)Without prejudice to the generality of subsection (3) above, regulations under that subsection may contain provision applying, with or without modifications, any provision made by or under section 15 or 16 above, subsections (1) and (2) above or Schedule 1 to this Act.

Modifications etc. (not altering text)

C56Ss. 15-17 applied (with modifications) by S.I. 1990/1553, regs. 21, 22

C57S. 17 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 57(1) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

AllowancesE+W+S

18 Schemes for basic, attendance and special responsibility allowances forlocal authority members.E+W+S

(1)[F111Subject to subsection (1A),] the Secretary of State may by regulations authorise or require any such relevant authority as may be specified or described in the regulations to make a scheme providing for the payment of—

(a)a basic allowance for every member of the authority who is a councillor;

(b)an attendance allowance in relation to the carrying out by any such member of such duties as may be specified in or determined under the regulations; and

(c)a special responsibility allowance for any such member who has such special responsibilities in relation to the authority as may be so specified or determined.

[F112(1A)In relation to a district council, county council, county borough council or London borough council, subsection (1) above shall have effect with the omission of paragraph (b).]

(2)Regulations under this section may also authorise or require a scheme made by a relevant authority under the regulations to include provision for the payment to appointed members of allowances in respect of such losses of earnings and expenses as—

(a)are necessarily sustained or incurred in the carrying out, in connection with their membership of the authority or any committee or sub-committee of the authority, of duties specified in or determined under the regulations; and

(b)are not of a description in respect of which provision is made for an allowance under any of sections 174 to 176 of the Local Government Act 1972 or sections 46 to 48 of the Local Government (Scotland) Act 1973.

[F113(2A)Regulations under this section may authorise or require a scheme made by a district council, county council, county borough council or London borough council to include provision for the payment to members of the council of allowances in respect of such expenses of arranging for the care of children or dependants as are necessarily incurred in the carrying out of their duties as members.]

(3)Without prejudice to the generality of the powers conferred by subsections (1) [F114to (2A)] above, regulations under this section may contain such provision as the Secretary of State considers appropriate for requiring a scheme made by a relevant authority under the regulations—

(a)to make it a condition of any payment by way of allowance that, in the financial year to which the payment would relate, the aggregate amount which the authority has paid out or is already liable to pay out under the scheme does not exceed such maximum amount as may be specified in or determined under the regulations;

(b)to make provision for different maximum amounts to be applicable, for the purposes of any such condition, in relation to different allowances or in relation to different members or members of different groups;

(c)to make provision in relation to claims which cannot be paid by virtue of any such condition and provision for the payment to members of the authority who are councillors of an amount by way of supplement to the basic allowance where, in any financial year, the aggregate paid out or owing under the scheme is less than an amount specified in or determined under the regulations;

(d)to provide that the amount authorised by virtue of subsection (2) above to be paid by way of allowance in any case shall not exceed such amount as may be so specified or determined;

(e)to contain such provision as may be so specified or determined with respect to the general administration of the scheme, with respect to the manner in which, time within which and forms on which claims for any allowance are to be made and with respect to the information to be provided in support of any such claim;

(f)to contain such provision as may be so specified or determined for avoiding the duplication of payments or of allowances, for determining the bodies by which payments of allowances are to be made and for the apportionment of payments between different bodies.

[F115(3A)Regulations under this section may make provision for or in connection with—

(a)enabling district councils, county councils, county borough councils or London borough councils to determine which members of the council are to be entitled to pensions, allowances or gratuities,

(b)treating the basic allowance or the special responsibility allowance as amounts in respect of which such pensions, allowances or gratuities are payable.

F115(3B)Regulations under this section may make provision for or in connection with requiring a district council, county council, county borough council or London borough council to establish and maintain a panel which is to have such functions as may be specified in the regulations in relation to allowances, or pensions, allowances or gratuities, payable to members of the council.

F115(3C)Regulations under this section may make provision for or in connection with enabling a panel established by a body specified in the regulations to exercise such functions as may be specified in the regulations in relation to allowances, or pensions, allowances or gratuities, payable to members of such district councils, county councils or London borough councils in England as may be specified in the regulations.

F115(3D)Regulations under this section may make provision for or in connection with the establishment by the National Assembly for Wales on a permanent or temporary basis of a panel which is to have such functions as may be specified in the regulations in relation to allowances, or pensions, allowances or gratuities, payable to members of county councils and county borough councils in Wales.

F115(3E)Regulations under subsection (3B) above may include provision—

(a)with respect to the number of persons who may or must be appointed to the panel of a council,

(b)with respect to the persons who may or must be appointed to the panel of a council,

(c)for or in connection with the appointment by councils of joint panels.

F115(3F)Regulations under subsection (3C) may include provision—

(a)with respect to the number of persons who may or must be appointed to a panel mentioned in that subsection,

(b)with respect to the persons who may or must be appointed to such a panel.

F115(3G)Regulations under subsection (3B), (3C) or (3D) may include provision—

(a)for or in connection with enabling a panel mentioned in that subsection to make recommendations to a council on the level of allowances payable to members of the council,

(b)for or in connection with enabling such a panel to make recommendations to a council as to which members of the council are to be entitled to pensions, allowances or gratuities,

(c)which permits different recommendations to be made in relation to different councils or descriptions of council.]

(4)Regulations under this section may—

(a)prohibit the payment, otherwise than in accordance with sections 174 to176 of the Local Government Act 1972 or sections 46 to 48 of the Local Government (Scotland) Act 1973 or in such other cases as may be specified in the regulations, of any allowance to a member of a relevant authority who is a councillor or to any appointed member of a relevant authority;

(b)impose requirements on a relevant authority with respect to the publication, in the minutes of that authority or otherwise, of the details of amounts paid in pursuance of a scheme made under the regulations;

[F116(ba)make provision with respect to the amendment, revocation or replacement of a scheme made by a relevant authority under the regulations; and]

(c)contain such incidental provision and such supplemental, consequential and transitional provision in connection with the other provisions of the regulations as the Secretary of State considers appropriate.

(5)In this section “relevant authority” means—

(a)a local authority of any of the descriptions specified in any of the paragraphs of section 21(1) below, other than [F117paragraphs (d), (g) and (j)], or insection 21(2) below;

(b)any body on which a body which is a relevant authority by virtue of paragraph (a) above is represented and which is designated as a relevant authority for the purposes of this section by regulations made by the Secretary of State; or

(c)any appeal committee so designated which is constituted in accordance with [F118paragraph 2 or 3 of Schedule 33 to the Education Act 1996];

and references in this section to an appointed member, in relation to a relevant authority, are references to any person who is a member of the authority without being a councillor or who is a member of one or more of theauthority’s committees or sub-committees without being a member of the authority.

[F119(5A)In making or operating any scheme authorised or required by regulations under this section, a district council, county council, county borough council or London borough council shall have regard to any guidance for the time being issued by the Secretary of State.]

(6)In this section any reference to a councillor includes a reference to a member of the authority concerned who, in accordance with regulations under this section, is to be treated as if he were a councillor.

Textual Amendments

F111Words in s. 18(1) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 99(3)(4), 108(4)

F112S. 18(1A) inserted (E.W.) (28.7.2001) by 2000 c. 22, ss. 99(3)(4), 108(4)

F113S. 18(2A) inserted (E.W.) (19.2.2001 for E.and 28.7.2001 for W.) by 2000 c. 22, ss. 99(3)(5), 108(4); S.I. 2001/415, art. 2(b)

F114S. 18(3): words “to 2A" substituted for “and (2)" (E.W.) (19.2.2001 for E. and 28.7.2001 for W.) by 2000 c. 22, ss. 99(3)(6), 108(4); S.I. 2001/415, art. 2(b)

F115S. 18(3A)-(3G) inserted (E.W.) (19.2.2001 for E. and 28.7.2001 for W.) by 2000 c. 22, ss. 99(3)(7), 108(4); S.I. 2001/415, art. 2(b)

F116S. 18: subsection (4)(ba) substituted for the word “and" in subsection (4)(b) (E.W.) (19.2.2001 for E. and 28.7.2001 for W.) by 2000 c. 22, ss. 99(3)(8), 108(4); S.I. 2001/415, art. 2(b)

F117Words in s. 18(5)(a) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 37; S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F118Words in s. 18(5)(c) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 97 (with ss. 1(4), 561, 562, Sch. 39 paras. 30, 39)

F119S. 18(5A) inserted (E.W.) (19.2.2001 for E. and 28.7.2001 for W.) by 2000 c. 22, ss. 99(3)(9), 108(4); S.I. 2001/415, art. 2(b)

Modifications etc. (not altering text)

C58S. 18 applied (with modifications) (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 18 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 11(1) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 18 modified (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 11(2) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

C60S. 18(1)(b) applied (with modifications) (8.1.1996) by 1995 c. x, ss. 1(3), 44, Sch. Pt. I

Members’ interestsE+W+S

19 Members’ interests.E+W+S

[F120(1)The Secretary of State may by regulations require each member of a local authority—

(a)to give a general notice to the proper officer of the authority setting out such information about the member’s direct and indirect pecuniary interests as may be prescribed by the regulations, or stating that he has no such interests; and

(b)from time to time to give to that officer such further notices as may be so prescribed for the purpose of enabling that officer to keep the information provided under the regulations up to date.

(2)Any member of a local authority who—

(a)without reasonable excuse fails to comply with the requirements of any regulations under this section; or

(b)in giving a notice in compliance with any such requirement, provides information which he knows to be false or misleading in a material particular or recklessly provides information which is false or misleading in a material particular,

shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 4 on the standard scale.

(3)Proceedings for an offence under subsection (2) above shall not be instituted in England and Wales except by or with the consent of the Director of Public Prosecutions.

(4)Neither section 96 of the M58Local Government Act 1972 (general notice of pecuniary interests) nor section 40 of the M59Local Government (Scotland) Act 1973 (corresponding provision for Scotland) shall apply in relation to any notice given in pursuance of any regulations under this section; but such regulations may provide—

(a)that the giving of a notice in pursuance of any such regulations shall be deemed to be sufficient disclosure for the purposes of section 94 of the said Act of 1972 (disability of members of authorities for voting on account of interest in contracts etc.) or for the purposes of section 38 of the said Act of 1973; and

(b)that the proper officer of a local authority is to maintain such records of the information contained in notices given to him as may be prescribed by the regulations and is to keep those records open to inspection by members of the public.

(5)A local authority shall not be entitled (whether by means of making it acondition of any appointment or by any other means whatever) to impose any obligations on their members to disclose any interests other than those that they are required to disclose by virtue of section 94 of the Local Government Act 1972, section 38 of the Local Government (Scotland) Act 1973 or any regulations under this section.

(6)Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(7)References in this section to the indirect pecuniary interests of a member of a local authority shall include references to any such interests as, by virtue of any connection between that member or his spouse [F121or civil partner] and any other person, would fall to be disclosed—

(a)in the case of a local authority in England and Wales, under section 94 of the Local Government Act 1972; or

(b)in the case of a local authority in Scotland, under section 38 of the Local Government (Scotland) Act 1973,

if the authority were proposing to enter into a contract with that other person.]

Textual Amendments

Modifications etc. (not altering text)

C65S. 19 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 19 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 10(2) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 19 applied (with modifications) (8.5.2000) by 1999 c. 29, s. 154(4), Sch. 10 para. 13(12) (with Sch. 12 para. 9(1)); S.I. 2000/801, art. 2(2)(b), Sch. Pt. 2

S. 19 excluded (E.) (27.11.2001,temp. until 27.11.2002) by S.I. 2001/3577, art. 3(1)(b)

S. 19 excluded (E.) (27.11.2001,temp. until 27.7.2002) by S.I. 2001/3376, art. 3(1)(c)

C68S. 19 disapplied by SI 2001/2289 art. 4 (as inserted (W.) (1.9.2004) by The Conduct of Members (Model Code of Conduct) (Wales) (Amendment) (No. 2) Order 2004 (S.I. 2004/1510), arts. 1(1), 3)

Commencement Information

I1S.19 wholly in force: s. 19 not in force at Royal Assent, see s. 195(2); s. 19 in force for certain purposes at 16.1.1990 by S.I. 1989/2445, art. 4 and in force at 8.5.1992 so far as not already in force by S.I. 1992/760, art. 2

Marginal Citations

Duty to adopt certain procedural standing ordersE+W+S

20 Duty to adopt certain procedural standing orders.E+W+S

(1)The Secretary of State may by regulations require relevant authorities, subject to such variations as may be authorised by the regulations—

(a)to incorporate such provision as may be prescribed by the regulations in standing orders for regulating their proceedings and business; and

(b)to make or refrain from making such other modifications of any such standing orders as may be so prescribed.

(2)Without prejudice to the generality of subsection (1) above, regulations under this section may require such standing orders as are mentioned in that subsection to contain provision which, notwithstanding any enactment or the decision of any relevant authority or committee or sub-committee of a relevant authority, authorises persons who are members of such an authority, committee or sub-committee—

(a)to requisition meetings of the authority or of any of their committees or sub-committees;

(b)to require a decision of a committee or sub-committee of the authority to be referred to and reviewed by the authority themselves or by a committee of the authority;

(c)to require that a vote with respect to a matter falling to be decided by the authority or by any of their committees or sub-committees is to be taken in a particular manner.

(3)Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(4)In this section “relevant authority”—

(a)in relation to England and Wales, means a local authority of any of the descriptions specified in paragraphs (a) to [F122(jb)] of section 21(1) below or any parish or community council; and

(b)in relation to Scotland, means a local authority.

Textual Amendments

Modifications etc. (not altering text)

C69S. 20 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

S. 20 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 12(3) (with ss. 7(6), 115, 117, Sch. 8 para. 7)

Interpretation of Part IE+W+S

21 Interpretation of Part I.E+W+S

(1)Any reference in this Part to a local authority is, in relation to England and Wales, a reference to a body of one of the following descriptions—

(a)a county council;

[F123(aa)a county borough council;]

(b)a district council;

(c)a London borough council;

(d)the Common Council of the City of London in its capacity as a local authority, police authority or port health authority;

(e)the Council of the Isles of Scilly;

[F124(f)a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;]

[F125(g)a police authority established under [F126section 3 of the Police Act 1996][F127or the Metropolitan Police Authority];]

[F128(ga)an authority established for an area in England by an order under section 207 of the Local Government and Public Involvement in Health Act 2007 (joint waste authorities);]

(h)an authority established under section 10 of the M60Local Government Act 1985 (waste disposal authorities);

(i)a joint authority established by Part IV of that Act [F129(fire and rescue services and transport)] [F130or the London Fire and Emergency Planning Authority];

(j)any body established pursuant to an order under section 67 of that Act (successors to residuary bodies);

[F131(ja)an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009;

(jb)a combined authority established under section 103 of that Act]

(k)the Broads Authority;

(l)any joint board the constituent members of which consist of any of the bodies specified above; [F132. . .]

F133(m). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[F134and

F134(n)a joint planning board constituted for an area in Wales outside a National Park by an order under section 2(1B) of the M61Town and Country Planning Act 1990.]

(2)Any reference in this Part to a local authority is, in relation toScotland, a reference to a [F135council constituted under section 2 of the Local Government etc. (Scotland) Act 1994] or a joint board within the meaning of section 235(1) of the M62Local Government (Scotland) Act 1973.

(3)In this Part—

contravention” includes a failure to comply;

[F136“council manager”, “executive”, “executive arrangements” and “mayor and council manager executive” have the same meaning as in Part II of the Local Government Act 2000;]

  • modifications” includes additions, alterations and omissions;

  • proper officer”—

    (G)

    in relation to a local authority in England and Wales, has the same meaning as in the Local Government Act 1972; and

    (G)

    in relation to a local authority in Scotland, has the same meaning as in the Local Government (Scotland) Act 1973; and

  • M63subordinate legislation” has the same meaning as in the Interpretation Act 1978.

(4)References in this Part to an officer of a local authority or to a paid office under a local authority do not include references to, or to the office of, the chairman or vice-chairman of the authority (whether referred to as such, as mayor, Lord Mayor, deputy mayor, as Lord Provost or otherwise [F137or a member of any executive of the authority (other than a council manager)]).

Textual Amendments

F123S. 21(1)(aa) inserted (7.1.1997) by S.I. 1996/3071, art. 2, Sch. para. 3(3)

F124S. 21(1)(f) substituted (E.W.) (1.10.2004 except in relation to W., 10.11.2004 for W.) by Fire and Rescue Services Act 2004 (c. 21), s. 61, Sch. 1 para. 71(2); S.I. 2004/2304, art. 2; S.I. 2004/2917, art. 2

F125S. 21(1)(g) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 38; S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch. (subject to art. 5)

F126Words in s. 21(1)(g) substituted (22.8.1996) by 1996 c. 16, ss. 103(1), 104(1), Sch. 7 Pt. I para. 1(1)(2)(zd)

F127Words in s. 21(1)(g) substituted (1.4.2002) by 2001 c. 16, s. 128(1), Sch. 6 Pt. II para. 50; S.I. 2002/344, art. 3 (with transitional provisions in art. 4)

F130Words in s. 21(1)(i) inserted (3.7.2000) by 1999 c. 29, s. 328(8), Sch. 29 para. 55 (with Sch. 12 para. 9(1)); S.I. 2000/1094, art. 4(a)(h)

F132Word in s. 21(1)(l) omitted (E.W.) (23.11.1995) by virtue of 1995 c. 25, s. 78, Sch. 10 para. 31(1) (with ss. 7(6), 115, 117, Sch. 8 para. 7); S.I. 1995/2950, art. 2(1) and repealed (prosp.) by 1995 c. 25, ss. 120, 125(3), Sch. 24 (with ss. 7(6), 115, 117)

F133S. 21(1)(m) repealed (1.4.1997) by 1995 c. 25, s. 120(1), Sch. 24 (with ss. 7(6), 115, 117); S.I. 1996/2560, art. 2, Sch.

F134S. 21(1)(n) and the preceding “and" added (E.W.) (23.11.1995) by 1995 c. 25, s. 78, Sch. 10 para. 31(1) (with ss. 7(6), 115, 117, Sch. 8 para. 7); S.I. 1995/2950, art. 2(1)

F135Words in s. 21(2) substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(8); S.I. 1996/323, art. 4(1)(c)

F136S. 21(3): definition inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 25(a); S.I. 2002/808, arts. 1(2), 24(a)

F137Words in s. 21(4) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 25(b); S.I. 2002/808, arts. 1(2), 24(b)

Modifications etc. (not altering text)

C70S. 21 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. entry 11

Marginal Citations

Part IIE+W+S Local Government Administration

22 Advisory Commissioners.E+W+S

(1)Section 23 of the M64Local Government Act 1974 (constitution and functions of Commissions for Local Administration) shall have effect with the amendments specified in subsections (2) to (4) below.

(2)In subsection (1), at the end, there shall be added the words “ but each of the Commissions may include persons appointed to act as advisers, not exceeding the number appointed to conduct investigations." ”

(3)In subsection (3), after the words “Parliamentary Commissioner” there shall be inserted the words “ or an advisory member" ”.

(4)In subsections (4), (5) and (6) the word “Local” shall be omitted.

(5)In Schedule 4 to the said Act, in paragraph 3 (remuneration), at the end there shall be inserted the following sub-paragraph–

(3)Sub-paragraphs (1) and (2) above apply in relation to Commissioners who are advisory members of the Commission as they apply in relation to Local Commissioners.

Marginal Citations

23 Advice and guidance by Commissions for Local Administration and ScottishCommissioner.E+W+S

(1)In section 23 of the Local Government Act 1974 (appointment and functions of Commissions for Local Administration) there shall be inserted, after subsection (12), the following subsections—

(12A)Each of the Commissions may, after consultation with the representative persons and authorities concerned, provide to the authorities or any of the authorities to which this Part of this Act applies such advice and guidance about good administrative practice as appears to the Commission to be appropriate and may arrange for it to be published for the information of the public.

(12B)The representative persons and authorities concerned are—

(a)for the purposes of subsection (12) above, such persons appearing to the Commission to represent authorities in England or, as the case may be,authorities in Wales to which this Part of this Act applies, and in the case of such authorities as are not so represented, those authorities; and

(b)for the purposes of subsection (12A) above, such of those persons and authorities as the Commission think appropriate.

[F138(2)In section 21 of the M65Local Government (Scotland) Act 1975 (appointment and functions of Commissioner for Local Administration in Scotland) there shall be inserted, after subsection (4), the following subsection—

(4A)The Commissioner may, after consultation with such associations of local authorities as appear to him to be appropriate, provide to the authorities to which this Part of this Act applies such advice and guidance about good administrative practice as appears to him to be appropriate and may arrange for it to be published for the information of the public.]

24 Expenses of Commissions for Local Administration.E+W+S

F139(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)Anything done before the passing of this Act which corresponds to a thing authorised or required to be done by any provision of the paragraphs 6(2) and (3), 7 and 8 substituted by subsection (1) above and done for the purposes ofsections 78 and 79 of the M66Local Government Finance Act 1988 shall be treated as validly done under that provision and those sections shall have effect accordingly.

(3)The foregoing provisions shall have effect for the financial years beginning on or after 1st April 1990.

25 Annual reports of Commissions: new provisions.E+W+S

(1)The representative body for England and the representative body for Wales designated under section 24 of the M67Local Government Act 1974 are hereby dissolved and accordingly that section shall cease to have effect.

(2)After section 23 of that Act there shall be inserted the following section—

23A Annual reports for representatives etc.

(1)For the financial year ending in 1990 and for each subsequent financial year, each of the Commissions shall prepare a general report on the discharge of their functions and shall submit it—

(a)to such persons as appear to the Commission to represent authorities in England or, as the case may be, authorities in Wales to which this Part of this Act applies, and

(b)in the case of such authorities as are not so represented, to those authorities.

(2)The report shall be submitted as soon as may be after the Commission have received the reports for the year from Local Commissioners under section 23(11) above, and each Commission shall submit copies of those reports, together with their own report.

(3)Each Commission shall arrange for the publication of the report submitted by them under subsection (1) above and of the reports of which copies are submitted by them under subsection (2) above.

(4)Before arranging for the publication of a report under subsection (3) above the Commission concerned shall give a reasonable opportunity for the representative persons and authorities to whom the report was submitted to comment on it.

(5)Without prejudice to the generality of subsection (4) above, comments made by the representative persons and authorities by virtue of that subsection may relate to particular classes of authorities to which this Part of this Act applies.

(6)Where the Commission for Local Administration in Wales consist of only one Local Commissioner, section 23(11) above and subsection (2) above shall have effect with the necessary modifications.

Marginal Citations

26 Implementation of recommendations of Commissioners for Local Administration in England and Wales.E+W+S

(1)In section 31 of the Local Government Act 1974 (action to be taken in relation to adverse reports), the following subsections shall be substituted for subsections (1) to (2A)—

(1)This section applies where a Local Commissioner reports that injustice has been caused to a person aggrieved in consequence of maladministration.

(2)The report shall be laid before the authority concerned and it shall be the duty of that authority to consider the report and, within the period of three months beginning with the date on which they received the report, or such longer period as the Local Commissioner may agree in writing, to notify the Local Commissioner of the action which the authority have taken or propose to take.

(2A)If the Local Commissioner—

(a)does not receive the notification required by subsection (2) above within the period allowed by or under that subsection, or

(b)is not satisfied with the action which the authority concerned have taken or propose to take, or

(c)does not within a period of three months beginning with the end of the period so allowed, or such longer period as the Local Commissioner may agree in writing, receive confirmation from the authority concerned that they have taken action, as proposed, to the satisfaction of the Local Commissioner,

he shall make a further report setting out those facts and making recommendations.

(2B)Those recommendations are such recommendations as the Local Commissioner thinks fit to make with respect to action which, in his opinion, the authority concerned should take to remedy the injustice to the person aggrieved and to prevent similar injustice being caused in the future.

(2C)Section 30 above, with any necessary modifications, and subsection (2)above shall apply to a report under subsection (2A) above as they apply to a report under that section.

(2D)If the Local Commissioner—

(a)does not receive the notification required by subsection (2) above as applied by subsection (2C) above within the period allowed by or under that subsection or is satisfied before the period allowed by that subsection has expired that the authority concerned have decided to take no action, or

(b)is not satisfied with the action which the authority concerned have taken or propose to take, or

(c)does not within a period of three months beginning with the end of the period allowed by or under subsection (2) above as applied by subsection (2C) above, or such longer period as the Local Commissioner may agree in writing, receive confirmation from the authority concerned that they have taken action,as proposed, to the satisfaction of the Local Commissioner,

he may, by notice to the authority, require them to arrange for a statement to be published in accordance with subsections (2E) and (2F) below.

(2E)The statement referred to in subsection (2D) above is a statement, in such form as the authority concerned and the Local Commissioner may agree,consisting of—

(a)details of any action recommended by the Local Commissioner in his furtherreport which the authority have not taken;

(b)such supporting material as the Local Commissioner may require; and

(c)if the authority so require, a statement of the reasons for their having taken no action on, or not the action recommended in, the report.

(2F)The requirements for the publication of the statement are that—

(a)publication shall be in any two editions within a fortnight of a newspaper circulating in the area of the authority agreed with the Local Commissioneror, in default of agreement, nominated by him; and

(b)publication in the first such edition shall be arranged for the earliest practicable date.

(2G)If the authority concerned—

(a)fail to arrange for the publication of the statement in accordance with subsections (2E) and (2F) above, or

(b)are unable, within the period of one month beginning with the date on which they received the notice under subsection (2D) above, or such longer period as the Local Commissioner may agree in writing, to agree with the Local Commissioner the form of the statement to be published,

the Local Commissioner shall arrange for such a statement as is mentioned in subsection (2E) above to be published in any two editions within a fortnight of a newspaper circulating within the authority’s area.

(2H)The authority concerned shall reimburse the Commission on demand any reasonable expenses incurred by the Local Commissioner in performing his duty under subsection (2G) above.

(2)This section shall not have effect in relation to a report made before the coming into force of this section.

[F14027 Implementation of recommendations of Commissioner for Local Administrationin Scotland.E+W+S

(1)In section 29 of the M68Local Government (Scotland) Act 1975 (action to be taken in relation to adverse reports), the following subsections shall be substituted for subsections (1) to (2A)—

(1)This section applies where the Commissioner reports that injustice has been caused to a person aggrieved in consequence of maladministration.

[F141(2)The report shall be laid before the authority concerned and it shall be the duty of that authority to consider the report and, within the period of three months beginning with the date on which they received the report, or such longer period as the Commissioner may agree in writing, to notify the Commissioner of the action which the authority have taken or propose to take.]]

(2A)If the Commissioner—

(a)does not receive the notification required by subsection (2) above within the period allowed by or under that subsection, or

(b)is not satisfied with the action which the authority concerned have take nor propose to take, or

(c)does not within a period of three months beginning with the end of the period so allowed, or such longer period as the Commissioner may agree in writing, receive confirmation from the authority concerned that they have taken action, as proposed, to the satisfaction of the Commissioner,

he shall make a further report setting out those facts and making recommendations.

(2B)Those recommendations are such recommendations as the Commissioner thinks fit to make with respect to the action which, in his opinion, the authority concerned should take to remedy the injustice to the person aggrieved and to prevent similar injustice being caused in the future.

(2C)Section 28 of this Act, with any necessary modifications, and subsection (2) above shall apply to a report under subsection (2A) above as they apply to a report under that section.

(2D)If the Commissioner—

(a)does not receive the notification required by subsection (2) above as applied by subsection (2C) above within the period allowed by or under that subsection or is satisfied before the period allowed by that subsection has expired that the authority concerned have decided to take no action; or

(b)is not satisfied with the action which the authority concerned have taken or propose to take; or

(c)does not within a period of three months beginning with the end of the period allowed by or under subsection (2) above as applied by subsection (2C) above, or such longer period as the Commissioner may agree in writing, receive confirmation from the authority concerned that they have taken action, as proposed, to the satisfaction of the Commissioner,

he may, by notice to the authority, require them to arrange for astatement to be published in accordance with subsections (2E) and (2F) below.

(2E)The statement referred to in subsection (2D) above is a statement, in such form as the authority concerned and the Commissioner may agree, consisting of—

(a)details of any action recommended by the Commissioner in his further report which the authority have not taken;

(b)such supporting material as the Commissioner may require; and

(c)if the authority so require, a statement of the reasons for their having taken no action on, or not the action recommended in, the report.

(2F)The requirements for the publication of the statement are that—

(a)publication shall be in any two editions within a fortnight of a newspaper circulating in the area of the authority agreed with the Commissioner or, indefault of agreement, nominated by him; and

(b)publication in the first such edition shall be arranged for the earliest practicable date.

(2G)If the authority concerned—

(a)fail to arrange for the publication of the statement in accordance withsubsections (2E) and (2F) above, or

(b)are unable, within the period of one month beginning with the date on which they received the notice under subsection (2D) above, or such longer period as the Commissioner may agree in writing, to agree with the Commissioner the form of the statement to be published,

the Commissioner shall arrange for such a statement as is mentioned insubsection (2E) above to be published in any two editions within a fortnight of a newspaper circulating within the authority’s area.

(2H)The authority concerned shall reimburse the Commissioner on demand any reasonable expenses incurred by the Commissioner in performing his duty under subsection (2G) above.

(2)In section 32 of the M69Local Government (Scotland) Act 1975 (interpretation of provisions about investigations by the Commissioner) the following subsection shall be inserted after subsection (2)—

(2A)Except in the case of a joint board or joint committee, references in this Part of this Act to the authority concerned are, in relation to action taken by or on behalf of an authority to whom this Part of this Act applies (whether by virtue of subsection (1) or (2) of section 23 of this Act), references to that authority.

(3)This section shall not have effect in relation to a report made before the coming into force of this section.

Textual Amendments

F141S. 27(2) repealed (S.) (21.5.1997) by 1997 c. 35, ss. 10, 11(2), Sch.

Marginal Citations

28 Consideration of adverse reports: England and Wales.E+W+S

(1)The following section shall be inserted after section 31 of the M70Local Government Act 1974—

31A Consideration of adverse reports.

(1)Subject to subsection (3) below, any power of an authority to have their functions discharged by any person or body of persons acting for the authority shall, as respects the consideration of a further report of the Local Commissioner under section 31(2A) above, be subject to the restriction that, if it is proposed that the authority should take no action on, or not the action recommended in, the report, consideration of the report shall be referred to the authority.

(2)Consideration of a further report of the Local Commissioner under section 31(2A) above by any such committee of a local authority as is referred to in an enactment specified in section 101(9) of the Local Government Act 1972 or by any appeal committee constituted in accordance with paragraph 1 of Schedule 2 to the Education Act 1980 shall be subject to a corresponding restriction.

(3)The restriction imposed by subsections (1) and (2) above does not apply where the report recommends action to be taken by—

(a)a joint committee established under the said section 101, or

(b)any committee referred to in an enactment specified in paragraph (c), (d) or (h) of the said section 101(9).

(4)If an authority considering a further report of the Local Commissioner under section 31(2A) above take into consideration a report by a person or body with an interest in the Local Commissioner’s report, they shall not conclude their consideration of the Local Commissioner’s report without also having taken into consideration a report by a person or body with no interest in the Local Commissioner’s report.

(5)No member of an authority to which this Part of this Act applies or of a committee mentioned in subsection (2) or (3) above shall vote on any question with respect to a report or further report under this Part of this Act in which he is named and criticised by a Local Commissioner.

(6)Section 25(4) and (5) above do not apply to this section.

(2)This section shall not have effect in relation to a report made before the coming into force of section 26 above.

Marginal Citations

M701974c. 7.

[F14229 Consideration of adverse reports: Scotland.E+W+S

(1)The following section shall be inserted after section 29 of the M71Local Government (Scotland) Act 1975—

29A Consideration of adverse reports.

(1)Subject to subsection (3) below, any power of an authority to have their functions discharged by any person or body of persons acting for the authority shall, as respects the consideration of a further report of the Commissioner under section 29(2A) of this Act, be subject to the restriction that, if it is proposed to take no action on, or not the action recommended in, there port, consideration of the report shall be referred to the authority.

(2)Consideration of a further report of the Commissioner under section 29(2A)of this Act by—

(a)any such committee as is mentioned in section 23(2) of this Act; or

(b)an education committee appointed under section 124 of the Act of 1973;

shall be subject to a corresponding restriction.

(3)The restriction imposed by subsections (1) and (2) above does not apply where the report recommends action to be taken by a joint committee—

(a)established under section 56 of the Act of 1973 or under paragraph 7 of Schedule 10 or paragraph 6 of Schedule 20 to that Act (local authority, education and social work joint committees); or

(b)referred to in paragraph (a), (b), or (e) of section 23(2) of this Act (fire, police and local government and teachers’ superannuation joint committees).

(4)If an authority considering a further report of the Commissioner under section 29(2A) of this Act take into consideration a report by a person or body with an interest in the Commissioner’s report, they shall not conclude their consideration of the Commissioner’s report without also having taken into consideration a report by a person or body with no interest in the Commissioner’s report.

(5)No member of an authority to which this Part of this Act applies or of a committee mentioned in subsection (2) or (3) above shall vote on any question with respect to a report or further report under this Part of this Act in which he is named and criticised by the Commissioner.

(2)This section shall not have effect in relation to a report made before the coming into force of section 27 above.]

Textual Amendments

Marginal Citations

M711975c. 30.

30 Declaration of acceptance of office of councillor etc.E+W+S

(1)Before section 34 of the M72Local Government (Scotland) Act 1973 there shall be inserted the following section—

Acceptance of OfficeE+W+S

33A Declaration of acceptance of office of councillor.

(1)A person elected to office as a councillor of a local authority shall not, unless—

(a)he has made a declaration of acceptance of office in a form prescribed by an order made by the Secretary of State; and

(b)the declaration has within two months from the day of the election been delivered to the proper officer of the local authority,

act in the office except for the purpose of taking such a declaration.

(2)If such a declaration is not made and delivered to the proper officer within the appointed time, the office of the person elected shall at the expiration of that time become vacant.

(3)The declaration shall be made before either—

(a)two members of the local authority to which the declarant is elected; or

(b)the proper officer of the local authority; or

(c)the sheriff; or

(d)a justice of the peace.

(4)Any person before whom a declaration is authorised to be made under this section may take the declaration.

(2)In section 83 of the M73Local Government Act 1972 (declaration of acceptance of office) in subsection (1) and subsection (4), for the words “rules under section 42 above” there shall be substituted the words “ an order made by the Secretary of State ”.

Marginal Citations

31 National Code of Local Government Conduct.E+W+S

[F143(1)The Secretary of State, for the guidance of members of local authorities, may issue a code of recommended practice as regards the conduct of members of such authorities to be known as the National Code of Local Government Conduct.

(2)The Secretary of State may revise or withdraw a code issued under this section.

(3)The Secretary of State, before issuing, revising or withdrawing a code, shall consult—

(a)as respects England and Wales, such representatives of local government,and

(b)as respects Scotland, such associations of local authorities,

as appear to him to be appropriate.

(4)A code shall not be issued unless a draft of it has been laid before and approved by a resolution of each House of Parliament.

(5)Where the Secretary of State proposes to revise a code, he shall lay a draft of the proposed alterations before each House of Parliament and—

(a)he shall not make the revision until after the expiration of the period of 40 days beginning with the day on which the draft is laid (or, if copiesare laid before each House of Parliament on different days, with the later of those days); and

(b)if within that period either House resolves that the alterations be withdrawn, he shall not proceed with the proposed alterations (but without prejudice to the laying of a further draft).

(6)In reckoning any period of 40 days for the purposes of subsection (5) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

[F144(6A)Subsections (4) to (6) above do not apply to a code which applies only to Scotland and such a code shall not be issued unless a draft of it has been laid before and approved by a resolution of the Scottish Parliament.

F144(6B)Where the Scottish Ministers propose to revise such a code as is mentioned in subsection (6A), they shall lay a draft of the proposed alterations before the Scottish Parliament and–

(a)they shall not make the revision until after the expiration of the period of 40 days beginning with the day on which the draft is laid; and

(b)if within that period the Parliament resolves that the alterations be withdrawn, they shall not proceed with the proposed alterations (but without prejudice to the laying of a further draft).

F144(6C)In reckoning any period of 40 days for the purposes of subsection (6B) above no account shall be taken of any time during which the Parliament is dissolved or is in recess for more than 4 days.]

(7)The form of declaration of acceptance of office under section 83 of the M74Local Government Act 1972 or section 33A of the M75Local Government (Scotland) Act 1973 may include an undertaking by the declarant to be guided by the National Code of Local Government Conduct in the performance of his functions.

(8)In this section—

  • local authority” means—

(a)as respects England and Wales, a county council [F145a county borough council,], a district council, a London borough council, a parish council, a community council, the Common Council of the City of London or the Council of the Isles of Scilly;

(b)as respects Scotland, a [F146council constituted under section 2 of the Local Government etc. (Scotland) Act 1994] or a joint board or joint committee within the meaning of section 235(1) of the Local Government (Scotland) Act 1973; and

member”, in relation to a local authority, includes any person who, whether or not a member of the authority, is a member of a committee or sub-committee of the authority or of any joint committee of theirs.]

Textual Amendments

F144S. 31(6A)-(6C) inserted (1.7.1999) by S.I. 1999/1820, arts. 1(2), 4, Sch. para. 97 (with art. 5); S.I. 1998/3178, art. 3

F145S. 31(8): words in para. (a) of the definition of “local authority" inserted (7.1.1997) by S.I. 1996/3071, art. 2, Sch. para. 3(4)

F146S. 31(8): words in para. (b) of the definition of “local authority” substituted (S.) (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 161(1)(9); S.I. 1996/323, art. 4(1)(c)

Modifications etc. (not altering text)

C71S. 31 applied (S.) (temp. 6.4.1995 to 1.4.1996) by S.I. 1995/789, art. 2, Sch. para. 11

S. 31 applied (temp. from 4.5.1995 to 31.3.1996) by S.I. 1995/1042, art. 4(1)

S. 31 extended (E.W.) (19.9.1995) by 1995 c. 25, ss. 63(5), 125(2), Sch. 7 para. 9 (with ss. 7(6), 115, 117, Sch. 8 para. 7)

S. 31 excluded (E.) (27.11.2001,temp. until 27.7.2002) by S.I. 2001/3576, art. 3(1)(c)

C74S. 31 disapplied by SI 2001/2289 art. 4 (as inserted (W.) (1.9.2004) by The Conduct of Members (Model Code of Conduct) (Wales) (Amendment) (No. 2) Order 2004 (S.I. 2004/1510), arts. 1(1), 3)

Marginal Citations

32 Anonymity in reports on investigations.E+W+S

(1)In section 30 of the M76 Local Government Act 1974 (reports on investigations by Local Commissioners)—

(a)in subsection (3) (report only to identify a person if the Local Commissioner thinks it necessary), after the words “shall not” there shall be inserted the words “, except where subsection (3A) below applies,”; and

(b)the following subsection shall be inserted after subsection (3)—

(3A)Where the Local Commissioner is of the opinion—

(a)that action constituting maladministration was taken which involved amember of the authority concerned, and

(b)that the member’s conduct constituted a breach of the National Code of Local Government Conduct,

then, unless the Local Commissioner is satisfied that it would be unjust to do so, the report shall name the member and give particulars of the breach.

F147(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IIIE+W+S Economic Development and Discretionary Expenditure by Local Authorities

F14833. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F14934. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F149S. 34 repealed (18.10.2000 for E. and 9.4.2001 for W.) by 2000 c. 22, s. 107, Sch. 5 para. 27, Sch. 6; S.I. 2000/2836, art. 2(b)(iv); S.I. 2001/1471, art. 2

F15035. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

F150S. 35 repealed (18.10.2000 for E. and 9.4.2001) by 2000 c. 22, s. 107, Sch. 6; S.I. 2000/2836, art. 2(b)(iv); S.I. 2001/1471, art. 2

36 Amendments of existing power to incur discretionary expenditure.E+W+S

(1)Section 137 of the M77Local Government Act 1972 (power of local authorities to incur expenditure for certain purposes not otherwise authorised) shall be amended in accordance with subsections (2) to (8) below and, accordingly, after the coming into force of this section, shall have effect as set out in Schedule 2 to this Act.

(2)In subsection (1), after the words “in the interests of” there shall be inserted “ and will bring direct benefit to ”; after the words “incur any expenditure” there shall be inserted “ (a) ” and at the end there shall be added the words nor

(b)unless the direct benefit accruing to their area or any part of it or to all or some of the inhabitants of their area will be commensurate with the expenditure to be incurred.

(3)After subsection (1) there shall be inserted the following subsection—

(1A)In any case where—

(a)by virtue of paragraph (a) of subsection (1) above, a local authority are prohibited from incurring expenditure for a particular purpose, and

(b)the power or duty of the authority to incur expenditure for that purposeis in any respect limited or conditional (whether by being restricted to a particular group of persons or in any other way),

the prohibition in that paragraph shall extend to all expenditure to which that power or duty would apply if it were not subject to any limitationor condition.

(4)Subsections (2A) and (2B) (which relate to the giving of financial assistance to persons carrying on commercial or industrial undertakings) shall cease to have effect and, in subsection (2C), paragraph (a) (which relates to publicity on the promotion of the economic development of the authority’s area) shall also cease to have effect.

(5)In subsection (3) (contributions permitted to charitable and public service funds etc.),—

(a)for the words “as aforesaid” there shall be substituted “ to the following provisions of this section ”;

(b)in paragraph (b) after the words “public service” there shall beinserted “ (whether to the public at large or to any section of it) ”; and

(c)at the end of paragraph (c) there shall be added “ or by such a person or body as is referred to in section 83(3)(c) of the Local Government (Scotland) Act 1973 ”.

(6)In subsection (4) (expenditure not to exceed the product of a 2p rate) for the words following “not exceed” there shall be substituted the amount produced by multiplying—

(a)such sum as is for the time being appropriate to the authority under subsection (4AA) below, by

(b)the relevant population of the authority’s area;and subsection (8) (which relates to the computation of a 2p rate) shall cease to have effect.

(7)After subsection (4) there shall be inserted the following subsections—

(4AA)For the purposes of subsection (4)(a) above, except in so far as the Secretary of State by order specifies a different sum in relation to an authority of a particular description,—

(a)the sum appropriate to a county council or the council of a non-metropolitan district is £2.50;

(b)the sum appropriate to a metropolitan district council, a London borough council or the Common Council is £5.00; and

(c)the sum appropriate to a parish or community council is £3.50.

(4AB)For the purposes of subsection (4)(b) above the relevant population of a local authority’s area shall be determined in accordance with regulations made by the Secretary of State; and a statutory instrument containing such regulations shall be subject to annulment in pursuance of a resolution of theHouse of Commons.

(8)In subsection (4B) (amounts deductible in determining expenditure under the section) for paragraph (a) there shall be substituted the following paragraph—

(a)the amount of any expenditure which forms part of the authority’s gross expenditure for that year under this section and in respect of which any grant has been or is to be paid under any enactment by a Minister of the Crown, within the meaning of the Ministers of the Crown Act 1975 (whether or not the grant covers the whole of the expenditure).

(9)In section 83(3) of the M78Local Government (Scotland)Act 1973 (contributions permitted to charitable and public service funds etc.), at the end of paragraph (c) there shall be added “ or by such a person or body as is referred to in section 137(3)(c) of the Local Government Act 1972 ”.

Marginal Citations

37 Conditions of provision of financial assistance.E+W

After section 137 of the M79Local Government Act 1972 there shall be inserted the following section—

137A Financial assistance to be conditional on provision of information.

(1)If in any financial year a local authority provides financial assistance—

(a)to a voluntary organisation, as defined in subsection (2D) of section 137above, or

(b)to a body or fund falling within subsection (3) of that section,

and the total amount so provided to that organisation, body or fund in that year equals or exceeds the relevant minimum, then, as a condition of the assistance, the authority shall require the organisation, body or fund, within the period of twelve months beginning on the date when the assistance is provided, to furnish to the authority a statement in writing of the use to which that amount has been put.

(2)In this section “financial assistance” means assistance by way of grant or loan or by entering into a guarantee to secure any money borrowed and, in relation to any financial assistance,—

(a)any reference to the amount of the assistance is a reference to the amount of money granted or lent by the local authority or borrowed in reliance on the local authority’s guarantee; and

(b)any reference to the date when the assistance is provided is a referenceto the date on which the grant or loan is made or, as the case may be, on which the guarantee is entered into.

(3)The relevant minimum referred to in subsection (1) above is £2,000 or such higher sum as the Secretary of State may by order specify.

(4)It shall be a sufficient compliance with a requirement imposed by virtue of subsection (1) above that there is furnished to the local authority concerned an annual report or accounts which contain the information required to be in the statement.

(5)A statement (or any report or accounts) provided to a local authority in pursuance of such a requirement shall be deposited with the proper officer of the authority.

(6)In this section “local authority” includes the Common Council.

Marginal Citations

38 Information etc. on individuals’ rights.E+W

(1)Section 142 of the M80Local Government Act 1972 (provision of information, etc.) shall be amended as follows.

(2)There shall be inserted after subsection (2)—

(2A)A local authority may assist voluntary organisations to provide for individuals—

(a)information and advice concerning those individuals’ rights and obligations; and

(b)assistance, either by the making or receiving of communications or by providing representation to or before any person or body, in asserting those rights or fulfilling those obligations.

Marginal Citations

F151 Part IVE+W Revenue Accounts and Capital Finance of Local Authorities

Textual Amendments

F151Pt. IV repealed (18.11.2003 for E. for the repeal of ss. 45, 53, 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1st April 2004, and 1.4.2004 for E. in so far as not already in force) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 7 para. 29; S.I. 2003/2938, arts. 3(h), 7(b) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I (with Sch. 2 para. 2)

Modifications etc. (not altering text)

C75Pt. IV savings for effects of 2003 c. 26, Sch. 7 para. 29 Sch. 8 (1.4.2004) by The Local Authorities (Capital Finance) (Consequential, Transitional and Saving Provisions) Order 2004 (S.I. 2004/533), arts. 1, 9(7)

IntroductoryE+W

F15139 Application of Part IV.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications etc. (not altering text)

C76S. 39 savings for effects of 2003 c. 26, Sch. 7 para. 29 Sch. 8 (1.4.2004) by The Local Authorities (Capital Finance) (Consequential, Transitional and Saving Provisions) Order 2004 (S.I. 2004/533), arts. 1, 3

F15140 Capital purposes.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charge of expenditure to revenue accountsE+W

F15141Expenditure to be charged to revenue account.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15142Expenditure excluded from section 41(1).E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BorrowingE+W

F15143Borrowing powers.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15144Borrowing limits etc.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15145The authority’s own limits.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15146Register of loan instruments and certain existing loans.E+W

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F15147Security for money borrowed etc.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit arrangementsE+W

F15148Credit arrangements. E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications etc. (not altering text)

F15149Initial and subsequent cost of credit arrangements.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications etc. (not altering text)

C78S. 49 savings for effects of 2003 c. 26, Sch. 7 para. 29 Sch. 8 (1.4.2004) by The Local Authorities (Capital Finance) (Consequential, Transitional and Saving Provisions) Order 2004 (S.I. 2004/533), arts. 1, 3

F15150Limits on powers to enter into credit arrangements.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15151Variation of credit arrangements.E+W

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F15152Transitional credit arrangements.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications etc. (not altering text)

C79S. 52 savings for effects of 2003 c. 26, Sch. 7 para. 29 Sch. 8 (1.4.2004) by The Local Authorities (Capital Finance) (Consequential, Transitional and Saving Provisions) Order 2004 (S.I. 2004/533), arts. 1, 3

Credit approvalsE+W

F15153Basic credit approvals.E+W

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F15154Supplementary credit approvals.E+W

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F15155Criteria for issuing credit approvals.E+W

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F15156Use of credit approvals by local authorities.E+W

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F15157Effect of certain capital grants on credit approvals.E+W

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Capital receiptsE+W

F15158Capital receipts.E+W

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F15159The reserved part of capital receipts. E+W

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F15160The usable balance of capital receipts.E+W

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F15161Capital receipts not wholly in money paid to the authority. E+W

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Aggregate credit limitE+W

F15162Aggregate credit limit.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amounts set aside to meet credit liabilitiesE+W

F15163Duty to set certain amounts aside as provision to meet credit liabilities.E+W

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F15164Use of amounts set aside to meet credit liabilities.E+W

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SupplementaryE+W

F15165Information.E+W

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F15166Interpretation of Part IV.E+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications etc. (not altering text)

C80S. 66 savings for effects of 2003 c. 26, Sch. 7 para. 29 Sch. 8 (1.4.2004) by The Local Authorities (Capital Finance) (Consequential, Transitional and Saving Provisions) Order 2004 (S.I. 2004/533), arts. 1, 3

Part VE+W Companies in which Local Authorities have interests

Modifications etc. (not altering text)

C81Pt. V (ss. 67-73): power conferred to make provisions about matters of the kind dealt with in this part (1.9.1997) by 1997 c. 50, s. 44(1), Sch. 4 para. (j)(iii); S.I. 1997/1930, art. 2(1)(2)(m)

C82Pt. 5 modified (18.11.2003) by Local Government Act 2003 (c. 26), s. 95(5)(6), 128(2)(d)

67 Application of, and orders under, Part V.E+W

(1)Any reference in this Part to a company is a reference to a body corporate of one of the following descriptions—

(a)a company limited by shares;

(b)a company limited by guarantee and not having a share capital;

(c)a company limited by guarantee and having a share capital;

(d)an unlimited company; and

(e)a society registered or deemed to be registered under the M81Industrial and Provident Societies Act 1965 or under the M82Industrial and Provident Societies Act (Northern Ireland) 1969.

(2)Expressions used in paragraphs (a) to (d) of subsection (1) above have the same meaning as in [F152the Companies Acts (see section 1174 of, and Schedule 8 to, the Companies Act 2006)].

(3)Any reference in this Part to a local authority is a reference to a body of one of the following descriptions—

(a)a county council;

[F153(aa)a county borough council;]

(b)a district council;

[F154(bb)the Greater London Authority;

F154(bc)a functional body, within the meaning of the Greater London Authority Act 1999;]

(c)a London borough council;

(d)the Common Council of the City of London in its capacity as a local authority, police authority or port health authority;

(e)the Council of the Isles of Scilly;

(f)a parish council;

(g)a community council;

[F155(ga)the Greater London Magistrates’ Courts Authority;.]

[F156(h)a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;]

[F157(i)a police authority established under [F158section 3 of the Police Act 1996]. . . ;]

(j)an authority established under section 10 of the M83Local Government Act 1985 (waste disposal authorities);

(k)a joint authority established by Part IV of that Act ([F159police,] fire services, civil defence and transport);

(l)any body established pursuant to an order under section 67 of that Act (successors to residuary bodies);

(m)the Broads Authority;

[F160(ma)a National Park authority;]

(n)any joint board the constituent members of which consist of any of the bodies specified above;

F161(o). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F162(oo)a joint planning board constituted for an area in Wales outside a National Park by an order under section 2(1B) of the M84Town and Country Planning Act 1990; and]

(p)a Passenger Transport Executive.

(4)Any power to make an order under this Part shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and under any such power different provision maybe made for different cases and different descriptions of cases (including different provision for different areas).

[F163(5)The power under subsection (4) above to make differential provision includes, in particular, power to make different provision for different local authorities or descriptions of local authority.]

Textual Amendments

F153S. 67(3)(aa) inserted (7.1.1997) by S.I. 1996/3071, art. 2, Sch. 3(6)

F154S. 67(3)(bb)(bc) inserted (8.5.2000 for specified purposes otherwise 3.7.2000) by 1999 c. 29, s. 393(1)(2) (with Sch. 12 para. 9(1)); S.I. 2000/3434, arts. 3, 4

F155S. 67(3)(ga) inserted (1.4.2001) by 1999 c. 22, s. 83(3), Sch. 12 paras. 4, 6 (with s. 107, Sch. 14 para. 7(2)); S.I. 2001/916, art. 2(a)(i) (with savings in Sch. 2 para. 2)

F156S. 67(3)(h) substituted (1.10.2004 except in relation to W., 10.11.2004 for W.) by Fire and Rescue Services Act 2004 (c. 21), s. 61, Sch. 1 para. 71(3); S.I. 2004/2304, art. 2; S.I. 2004/2917, art. 2

F157S. 67(3)(i) substituted (1.10.1994 for specified purposes otherwise 1.4.1995) by 1994 c. 29, s. 43, Sch. 4 Pt. I para. 39; S.I. 1994/2025, art. 6; S.I. 1994/3262, art. 4, Sch.

F158Words in s. 67(3)(i) substituted (22.8.1996) by 1996 c. 16, ss. 103(1), 104(1), Sch. 7 Pt. I para. 1(1)(2)(zd)

F159Word in s. 67(3)(k) repealed (1.4.1995 (E.W.) otherwise (prosp.)) by 1994 c. 29, s. 93, Sch. 9 Pt. I; S.I. 1994/3262, art. 4, Sch.

F160S. 67(3)(ma) inserted (19.9.1995) by 1995 c. 25, ss. 65(7), 125(2), Sch. 8 para. 10 (with ss. 7(6), 115, 117, Sch. 8 para. 7)

F161S. 67(3)(o) repealed (1.4.1997) by 1995 c. 25, s. 120(3), Sch. 24 (with ss. 7(6), 115, 117); S.I. 1996/2560, art. 2, Sch.

F162S. 67(3)(oo) inserted (23.11.1995) by 1995 c. 25, s. 78, Sch. 10 para. 31(3) (with ss. 7(6), 115, 117, Sch. 8 para. 7); S.I. 1995/2950, art. 2(1)

F163S. 67(5) inserted (18.11.2003 for E. and 27.11.2003 for W.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 3 para. 2; S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Commencement Information

I2S. 67 wholly in force at 7.10.1993; s. 67 not in force at Royal Assent see s. 195(2); s. 67 in force for certain purposes at 16.1.1990 by S.I. 1989/2445, art. 4; s. 67 in force so far as not already in force at 7.10.1993 by S.I. 1993/2140, art. 3

Marginal Citations

M821969 c.24. (N.I.)

68 Companies controlled by local authorities and arm’s length companies.E+W

(1)For the purposes of this Part, unless the Secretary of State otherwise directs, a company is for the time being under the control of a local authority if—

[F164(a)the company is at that time a subsidiary (as defined in section 1159 of the Companies Act 2006) of the local authority; or]

(b)paragraph (a) above does not apply but the local authority have at that time power to control a majority of the votes at a general meeting of the company as mentioned in subsection (3) below; or

(c)paragraph (a) above does not apply but the local authority have at that time power to appoint or remove a majority of the board of directors of the company; or

(d)the company is under the control of another company which, by virtue of this subsection, is itself under the control of the local authority;

and, for the purposes of paragraph (d) above, any question whether one company is under the control of another shall be determined by applying the preceding provisions of this subsection, substituting a reference to the other company for any reference to the local authority.

(2)A direction under subsection (1) above—

(a)may be limited in time and may be made conditional upon such matters as appear to the Secretary of State to be appropriate; and

(b)may be made with respect to a particular company or a description of companies specified in the direction.

(3)The reference in subsection (1)(b) above to a power to control a majority of votes at a general meeting of the company is a reference to a power which is exercisable—

(a)in the case of a company limited by shares, through the holding of equity share capital in any one or more of the following ways, namely, by the local authority, by nominees of the local authority and by persons whose shareholding is under the control of the local authority; or

(b)in the case of any company, through the holding of votes at a general meeting of the company in any one or more of the following ways, namely, by the local authority, by a group of members of the company the composition of which is controlled by the local authority and by persons who have contractually bound themselves to vote in accordance with the instructions ofthe local authority; or

(c)partly in one of those ways and partly in the other.

(4)[F165Paragraph 3 of Schedule 6 to the Companies Act 2006 (right to appoint or remove a majority of a company's board of directors) and the following paragraphs of that Schedule as they have effect in relation to paragraph 3] apply for the purposes of subsection (1)(c) above with the substitution for the word “right”, wherever it occurs, of the word “power”.

(5)For the purposes of subsection (3)(a) above, a person’s shareholding is under the control of a local authority if—

(a)his right to hold the shares arose because of some action which the authority took, or refrained from taking, in order to enable him to have the right; and

(b)the local authority, alone or jointly with one or more other persons can require him to transfer his shareholding (or any part of it) to another person.

(6)Notwithstanding that, by virtue of the preceding provisions of this section, a company is for the time being under the control of a local authority, the company is for the purposes of this Part an “arm’s length company”, in relation to any financial year if, at a time before the beginning of that year, the authority resolved that the company should be an arm’s length company and, at all times from the passing of that resolution up to the end of the financial year in question, the following conditions have applied while the company has been under the control of the local authority,—

(a)that each of the directors of the company was appointed for a fixed term of at least two years;

(b)that, subject to subsection (7) below, no director of the company has been removed by resolution under [F166section 168 of the Companies Act 2006];

(c)that not more than one-fifth of the directors of the company have been members or officers of the authority;

(d)that the company has not occupied (as tenant or otherwise) any land in which the authority have an interest otherwise than for the best consideration reasonably obtainable;

(e)that the company has entered into an agreement with the authority that the company will use its best endeavours to produce a specified positive return on its assets;

(f)that, except for the purpose of enabling the company to acquire fixed assets or to provide it with working capital, the authority have not lent money to the company or guaranteed any sum borrowed by it or subscribed for any securities in the company;

(g)that the authority have not made any grant to the company except in pursuance of an agreement or undertaking entered into before the financial year (within the meaning of [F167the Companies Act 2006]) of the company in which the grant was made; and

(h)that the authority have not made any grant to the company the amount of which is in any way related to the financial results of the company in any period.

(7)If the Secretary of State so directs, the removal of a director shall be disregarded for the purposes of subsection (6)(b) above; but the Secretary of State shall not give such a direction if it appears to him that the director was removed with a view to influencing the management of the company for other than commercial reasons.

Textual Amendments

Modifications etc. (not altering text)

C83S. 68 applied (with modifications) (11.3.1996) by S.I. 1996/330, reg. 9(1)

C84S. 68(1) applied (29.4.1996) by 1992 c. 19, s. 1A(5) (as inserted (29.4.1996) by 1996 c. 10, s. 5(2)) (which amendment fell (11.9.1998) by reason of the repeal of 1996 c. 10, s. 5(2) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5)

S. 68(1) applied (11.9.1998) by 1998 c. 18, ss. 45(5), 55(2)

C85S. 68(1) applied (with modifications) (14.3.1995) by S.I. 1995/402, reg. 3(2)

Commencement Information

I3S. 68 wholly in force at 7.10.1993; s. 68 not in force at Royal Assent see s. 195(2); s. 68 in force for certain purposes at 16.1.1990 by S.I. 1989/2445, art. 4; s. 68 in force so far as not already in force at 7.10.1993 by S.I. 1993/2410, art. 3

69 Companies subject to local authority influence.E+W

(1)For the purposes of this Part, unless the Secretary of State otherwise directs, a company which is not at the time under the control of a local authority is for the time being subject to the influence of a local authority if it is not a banking or insurance company or a member of a banking or insurance group and at that time there is such a business relationship between the company and the authority as is referred to in subsection (3) below and either—

(a)at least 20 per cent. of the total voting rights of all the members having the right to vote at a general meeting of the company are held by persons who are associated with the authority as mentioned in subsection (5) below; or

(b)at least 20 per cent. of the directors of the company are persons who are so associated; or

(c)at least 20 per cent. of the total voting rights at a meeting of the directors of the company are held by persons who are so associated.

(2)A direction under subsection (1) above—

(a)may be limited in time and may be made conditional upon such matters as appear to the Secretary of State to be appropriate; and

(b)may be made with respect to a particular company or a description of companies specified in the direction.

(3)For the purposes of this section there is a business relationship between a company and a local authority at any time if the condition in any one or more of the following paragraphs is fulfilled—

(a)within a period of twelve months which includes that time the aggregate of the payments to the company by the authority or by another company which is under the control of the authority represents more than one-half of thecompany’s turnover, as shown in its profit and loss account for the most recent financial year for which the company’s auditors have made a report on the accounts or, if there is no such account, as estimated by the authority for the period of twelve months preceding the date of the estimate or for such part of that period as follows the formation of the company;

(b)more than one-half of the company’s turnover referred to in paragraph (a) above is derived from the exploitation of assets of any description in which the local authority or a company under the control of the authority has an interest (disregarding an interest in land which is in reversion on a lease granted for more than 7 years);

(c)the aggregate of—

(i)grants made either by the authority and being expenditure for capital purposes or by a company under the control of the authority, and

(ii)the nominal value of shares or stock in the company which is owned by the authority or by a company under the control of the authority,

exceeds one-half of the net assets of the company;

(d)the aggregate of—

(i)grants falling within paragraph (c)(i) above,

(ii)loans or other advances made or guaranteed by the authority or by a company under the control of the authority, and

(iii)the nominal value referred to in paragraph (c)(ii) above,

exceeds one-half of the fixed and current assets of the company;

(e)the company at that time occupies land by virtue of an interest which it obtained from the local authority or a company under the control of the authority and which it so obtained at less than the best consideration reasonably obtainable; and

(f)the company intends at that time to enter into (or complete) a transaction and, when that is done, there will then be a business relationship between the company and the authority by virtue of any of paragraphs (a) to (e) above.

(4)In subsection (3) above—

(a)the reference in paragraph (c) to the net assets of the company shall beconstrued in accordance with [F168section 677(2) and (3) of the Companies Act 2006]; and

[F169(b)fixed assets” means assets of a company that are intended for use on a continuing basis in the company's activities, and “current assets” means assets not intended for such use;]

and in either case, the reference is a reference to those assets as shown in the most recent balance sheet of the company on which, at the time in question, the auditors have made a report or, if there is no such balance sheet, as estimated by the local authority for the time in question.

(5)For the purposes of this section, a person is at any time associated with a local authority if—

(a)he is at that time a member of the authority;

(b)he is at that time an officer of the authority;

(c)he is at that time both an employee and either a director, manager, secretary or other similar officer of a company which is under the control of the authority; or

(d)at any time within the preceding four years he has been associated with the authority by virtue of paragraph (a) above.

(6)If and to the extent that the Secretary of State by order so provides, a person is at any time associated with a local authority if—

(a)at that time he is, or is employed by or by a subsidiary of, a person who for the time being has a contractual relationship with the authority to provide—

(i)advice with regard to the authority’s interest in any company (whether existing or proposed to be formed), or

(ii)advice with regard to the management of an undertaking or the development of land by a company (whether existing or proposed to be formed) with which it is proposed that the authority should enter into any lease, licence or other contract or to which it is proposed that the authority should make any grant or loan, or

(iii)services which facilitate the exercise of the authority’s rights in any company (whether by acting as the authority’s representative at a meeting of the company or as a director appointed by the authority or otherwise);

(b)at any time within the preceding four years, he has been associated with the authority by virtue of paragraph (b) or paragraph (c) of subsection (5)above;

(c)he is at that time the spouse [F170or civil partner] of, or carries on business in partnership with, a person who is associated with the authority by virtue of subsection (5)(a) above; or

(d)he holds a relevant office in a political association or other body which, in the nomination paper of a person who is an elected member of the authority, formed part of that person’s description.

(7)For the purposes of subsection (6)(d) above, an office in a political association or body is relevant to a local authority in the following circumstances—

(a)if the association or body is active only in the area of the local authority, any office in it is relevant; and

(b)in any other case, an office is relevant only if it is in a branch or other part of the association or body which is active in the area of the local authority.

(8)In relation to a company which is an industrial and provident society, any reference in this section to the directors of the company is a reference to the members of the committee of management.

(9)Subject to subsections (4) and (8) and section 67 above, expressions used in this section have the same meaning as in [F171the Companies Acts (as defined in section 2 of the Companies Act 2006)].

Textual Amendments

Modifications etc. (not altering text)

C87S. 69 applied (with modifications) (11.3.1996) by S.I. 1996/330, reg. 9(2)

Commencement Information

I4S. 69 wholly in force at 7.10.1993; s. 69 not in force at Royal Assent see s. 195(2); s. 69 in force for certain purposes at 16.1.1990 by S.I.1989/2445, art. 4; s. 69 in force so far as not already in force at 7.10.1993 by S.I. 1993/2410, art. 3

70 Requirements for companies under control or subject to influence of localauthorities.E+W

(1)In relation to companies under the control of local authorities and companies subject to the influence of local authorities, the Secretary of State may by order make provision regulating, forbidding or requiring the taking of certain actions or courses of action; and an order under this subsection may—

(a)make provision in relation to those companies which are arm’s length companies different from that applicable to companies which are not; and

(b)make provision in relation to companies under the control of local authorities different from that applicable in relation to companies under the influence of local authorities.

(2)It shall be the duty of every local authority to ensure, so far as practicable, that any company under its control complies with [F172any provisions made by order under subsection (1) above which are for the time being applicable to it]; and if a local authority fails to perform that duty in relation to any company, any payment made by the authority to that company and any other expenditure incurred bythe authority in contravention of any such provisions shall be deemed for the purposes of [F173the Audit Commission Act 1998] [F174 and Part 2 of the Public Audit (Wales) Act 2004] to be expenditure which is unlawful.

(3)In order to secure compliance, in relation to companies subject to the influence of [F175a local authority], with provisions made by virtue of subsection (1) above, an order under that subsection may prescribe requirements to be complied with by [F176the] local authority in relation to conditions to be included in such leases, licences, contracts, gifts, grants or loans as may be so prescribed which are made with or to a company subject to the influence of the local authority.

(4)It shall be the duty of a local authority to comply with any requirements for the time being applicable to it under subsection (3) above; and if a local authority fails to perform that duty, any expenditure which is incurred by the local authority under the lease, licence, contract, gift, grant or loan in question shall be deemed for the purposes of [F177the Audit Commission Act 1998] [F178and Part 2 of the Public Audit (Wales) Act 2004] to be expenditure which is unlawful.

(5)Without prejudice to the generality of the power conferred by subsection (1) above, an order under that subsection may make provision requiring acompany or local authority to obtain the consent of the Secretary of State, or of the Audit Commission for Local Authorities [F179and the National Health Service in England] [F180or of the Auditor General for Wales,] before taking any particular action or course of action.

[F181(6)An order under subsection (1) may be made in relation to—

(a)all local authorities,

(b)particular local authorities, or

(c)particular descriptions of local authority.]

Textual Amendments

F172Words in s. 70(2) substituted (18.11.2003 for E. and 27.11.2003 for W.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 7 para. 30(2); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F173Words in s. 70(2) substituted (11.9.1998) by 1998 c. 18, ss. 54(1), 55(2), Sch. 3 para. 18(3)(a)

F175Words in s. 70(3) substituted (18.11.2003 for E. and 27.11.2003 for W.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 7 para. 30(3)(a); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F176Word in s. 70(3) substituted (18.11.2003 for E. and 27.11.2003 for W.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 7 para. 30(3)(b); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F177Words in s. 70(4) substituted (11.9.1998) by 1998 c. 18, ss. 54(1), 55(2), Sch. para. 18(3)(b)

F181S. 70(6) inserted (18.11.2003 for E. and 27.11.2003 for W.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 3 para. 3; S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Commencement Information

I5S. 70 wholly in force at 7.10.1993; s. 70 not in force at Royal Assent see s. 195(2); s. 70 in force for certain purposes at 16.1.1990 by S.I.1989/2445, art. 4; s. 70 in force so far as not already in force at 7.10.1993 by S.I.1993/2410, art. 3

71 Control of minority interests etc. in certain companies.E+W

(1)In relation to a local authority, subsection (2) below applies to any company other than—

(a)a company which is or, if the action referred to in that subsection is taken, will be under the control of the local authority; and

(b)a company of a description specified for the purposes of this section by an order made by the Secretary of State;

and in this section an “authorised company” means a company falling within paragraph (b) above.

(2)Except with the approval of the Secretary of State, in relation to acompany to which this subsection applies, a local authority may not—

(a)subscribe for, or acquire, whether in their own name or in the name of a nominee, any shares or share warrants in the company;

(b)become or remain a member of the company if it is limited by guarantee;

(c)exercise any power, however arising, to nominate any person to become a member of the company;

(d)exercise any power to appoint directors of the company;

(e)permit any officer of the authority, in the course of his employment, to make any such nomination or appointment as is referred to in paragraph (c) or paragraph (d) above; or

(f)permit an officer of the authority, in the course of his employment, to become or remain a member or director of the company.

(3)Any approval of the Secretary of State under subsection (2) above may be general or relate to any specific matter or company.

(4)A local authority may not take any action, or refrain from exercising any right, which would have the result that a person who is disqualified from membership of the authority (otherwise than by being employed by that or any other local authority or by a company which is under the control of a local authority) becomes a member or director of an authorised company or is authorised, in accordance with [F182section 323 of the Companies Act 2006], to act as the authority’s representative at a general meeting of an authorised company (or at meetings of an authorised company which include a general meeting).

(5)In any case where,—

(a)in accordance with [F183section 323 of the Companies Act 2006], a local authority have authorised a member or officer of the authority to act as mentioned in subsection (4) above, or

(b)a member or officer of a local authority has become a member or director of an authorised company as mentioned in subsection (7) below,

the authority shall make arrangements (whether by standing orders or otherwise) for enabling members of the authority, in the course of proceedings of the authority (or of any committee or sub-committee thereof), [F184or, where a local authority is operating executive arrangements under Part II of the Local Government Act 2000, for enabling members of the executive, in the course of proceedings of the executive (or of any committee of the executive),] to put to the member or officer concerned questions about the activities of the company.

(6)Nothing in subsection (5) above shall require the member or officer referred to in that subsection to disclose any information about the company which has been communicated to him in confidence.

(7)Any member or officer of a local authority who has become a member or director of an authorised company by virtue of—

(a)a nomination made by the authority, or

(b)election at a meeting of the company at which voting rights were exercisable (whether or not exercised) by the authority or by a person bound to vote in accordance with the instructions of the authority, or

(c)an appointment made by the directors of another company, the majority of whom became directors of that company by virtue of a nomination made by the authority or election at a meeting of the company at which voting rights were exercisable as mentioned in paragraph (b) above,

shall make a declaration to the authority, in such form as they may require, of any remuneration or re-imbursement of expenses which he receives from the company as a member or director or in respect of anything done on behalf of the company.

(8)Subject to section 67 above, expressions used in this section have the same meaning as in [F185the Companies Acts (as defined in section 2 of the Companies Act 2006)].

Textual Amendments

F184Words in s. 71(5) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 26(1); S.I. 2002/808, arts. 1(2), 25(1)

Commencement Information

I6S. 71 partly in force; s. 71 not in force at Royal Assent see s. 195(2); s. 71 in force for specified purposes at 16.1.1990 by S.I. 1989/2445, art. 4; s. 71(1)(5) in force for specified purposes and s. 71(4)(6)(8) fully in force at 1.4.1995 by S.I. 1995/841, art. 2 (with transitional provisions in art. 3)

72 Trusts influenced by local authorities.E+W

(1)The Secretary of State may by order made by statutory instrument adapt theprovisions of section 69 above so as to make them applicable to trusts which are not charitable; and, subject to subsection (2) below, this Part shall apply in relation to trusts which are subject to local authority influence by virtue of that section as so adapted as it applies in relation to companies which are subject to local authority influence.

(2)In the exercise of the power conferred by section 70 above, as applied in relation to trusts by subsection (1) above, the Secretary of State may make different provision for trusts as compared with companies.

Commencement Information

I7S. 72 wholly in force at 7.10.1993; s. 72 not in force at Royal Assent see s. 195(2); s. 72 in force for certain purposes at 16.1.1990 by S.I. 1989/2445, art. 4; s. 72 in force so far as not already in force at 7.10.1993 by S.I. 1993/2410, art. 3

73 Authorities acting jointly and by committees.E+W

(1)In any case where—

(a)apart from this section a company would not be under the control of anyone local authority, but

(b)if the actions, powers and interests of two or more local authorities were treated as those of one authority alone, the company would be under the control of that one authority,

the company shall be treated for the purposes of this Part as under the control of each of the two or more local authorities mentioned in paragraph (b) above.

(2)In any case where, apart from this section, a company would not be treated as being subject to the influence of any one local authority, it shall be treated as being subject to the influence of each of a number of local authorities (in this section referred to as a “group”) if the conditions in subsection (3) below are fulfilled with respect to the company and the group of authorities.

(3)The conditions referred to in subsection (2) above are—

(a)that at least one of the conditions in paragraphs (a) to (e) of subsection (3) of section 69 above would be fulfilled—

(i)if any reference therein to the company being under the control of a local authority were a reference to its being under the control of any one of the authorities in the group or of any two or more of them taken together; and

(ii)if any other reference therein to the local authority were a reference to any two or more of the authorities in the group taken together; and

(b)that at least one of the conditions in paragraphs (a) to (c) of subsection(1) of section 69 above would be fulfilled if any reference therein to the local authority were a reference to those local authorities who are taken into account under sub-paragraph (i) or sub-paragraph (ii) of paragraph (a) above taken together; and

(c)that if the condition (or one of the conditions) which would be fulfilled as mentioned in paragraph (b) above is that in subsection (1)(a) of section 69 above, then, so far as concerns each local authority in the group, at least one person who, in terms of subsection (5) of that section, is associated with that authority has the right to vote at a general meeting of the company; and

(d)that, if paragraph (c) above does not apply, then, so far as concerns each local authority in the group, a person who, in terms of section 69(5) above, is associated with the authority is a director of the company.

(4)For the purposes of this Part, anything done, and any power exercisable,by a committee or sub-committee of a local authority, or by any of the authority’s officers [F186or, where a local authority is operating executive arrangements under Part II of the Local Government Act 2000, by the authority’s executive, any committee of the executive, or any member of the executive], shall be treated as done or, as the case may be,exercisable by the authority.

(5)For the purposes of this Part, anything done, and any power exercisable,by a joint committee of two or more local authorities or by a sub-committee of such a joint committee shall be treated as done or, as the case may be, exercisable by each of the local authorities concerned.

Textual Amendments

F186Words in s. 73(4) inserted (E.) (11.7.2001) and (W.) (1.4.2002) by S.I. 2001/2237, arts. 1(2), 26(2); S.I. 2002/808, arts. 1(2), 25(2)

Part VIE+W Housing Finance

Modifications etc. (not altering text)

C88Pt. VI (ss. 74-86) applied (1.4.1997) by 1992 c. 5, s. 140G (as inserted (1.4.1997) by 1996 c. 52, s. 121, Sch. 12 paras. 4; S.I. 1997/618, art. 2 (subject to transitional provisions in Sch.))

Housing accountsE+W

74 Duty to keep Housing Revenue Account.E+W

(1)A local housing authority shall keep, in accordance with proper practices, an account, called the “Housing Revenue Account”, of sums falling to be credited or debited in respect of—

(a)houses and other buildings which have been provided under Part II of the M85Housing Act 1985 (provision of housing);

(b)land which has been acquired or appropriated for the purposes of thatPart;

(c)houses purchased under section 192 of that Act (purchase of house foundon appeal against repair notice to be unfit and beyond repair at reasonable cost);

(d)dwellings in respect of which a local authority have received assistance under section 1 or section 4(2A) of the M86Housing (RuralWorkers) Act 1926;

(e)any property which—

(i)with the consent of the Secretary of State given under section 417(1) of the Housing Act 1985,

(ii)with the consent of a Minister given under section 50(1)(e) of the M87Housing (Financial Provisions) Act 1958, or

(iii)by virtue of section 50(2) of that Act (houses vesting in local authority on default of another person),

was brought within the corresponding account kept under Part XIII of the Housing Act 1985 for years beginning before 1st April 1990; and

(f)such land, houses or other buildings not within the preceding paragraphsas the Secretary of State may direct.

(2)References in subsection (1) above and the other provisions of this Part to provisions of the Housing Act 1985 include, where the context so admits, references to the corresponding provisions of earlier enactments; and the reference in paragraph (b) of that subsection to land acquired for the purposes of Part II of that Act includes—

(a)land which a local authority were deemed to have acquired under Part V of the M88Housing Act 1957 by virtue of section 57(6) of that Act (land acquired for re-development in pursuance of re-development plan) before the repeal of that section on 25th August 1969; and

(b)any structures on such land which were made available to a local authority under section 1 of the M89Housing (Temporary Accommodation) Act 1944 (prefabs).

(3)Paragraphs (a) to (e) of subsection (1) above shall not apply to—

(a)land, houses or other buildings disposed of by the authority;

(b)land acquired by the authority for the purpose of disposing of houses provided, or to be provided, on the land, or of disposing of the land to a person who intends to provide housing accommodation on it [F187or facilities which serve a beneficial purpose in connection with the requirements of persons for whom housing accommodation is provided];

(c)houses provided by the authority on land so acquired; or

(d)such land, houses or other buildings as the Secretary of State may direct;

and paragraph (a) of that subsection shall not apply to houses and other buildings provided on or before 6th February 1919.

(4)A local housing authority not possessing property to which subsection (1)above applies shall nevertheless keep a Housing Revenue Account unless the Secretary of State consents to their not doing so and they comply with such conditions (if any) as may be specified in the consent.

(5)In this Part—

(a)references to the houses or other property of an authority within the authority’s Housing Revenue Account are references to the houses, dwellings or other property to which subsection (1) above for the time being applies;and

(b)references (however expressed) to a disposal are references to a conveyance of the freehold, or a grant or assignment of a lease (other than a shared ownership lease) which is a long tenancy within the meaning given by section 115 of the M90Housing Act 1985.

(6)Sections 417 to 420 of, and Schedule 14 to, the Housing Act 1985 (which are superseded by this section, sections 75 to 78 below and Schedule 4 to this Act) shall cease to have effect.

Textual Amendments

F187Words in s. 74(3)(b) inserted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 para. 24(2)

Marginal Citations

75 The keeping of the Housing Revenue Account.E+W

Schedule 4 to this Act shall have effect with respect to the keeping of a local housing authority’s Housing Revenue Account, as follows—

  • Part I - Credits to the account.

  • Part II - Debits to the account.

  • Part III - Special cases.

  • Part IV - Supplementary provisions.

76 Duty to prevent debit balance on Housing Revenue Account.E+W

(1)This section applies where for any year (“the relevant year”) a local housing authority who are required to keep a Housing Revenue Account possess any houses or other property within the account.

(2)The authority shall, during the months of January and February immediately preceding the relevant year, formulate proposals which satisfy the requirements of subsection (3) below and relate to—

(a)the income of the authority for the year from rents and other charges in respect of houses and other property within their Housing Revenue Account;

(b)the expenditure of the authority for the year in respect of the repair,maintenance, supervision and management of such property; and

(c)such other matters connected with the exercise of the authority’s functions in relation to such property as the Secretary of State may direct.

(3)Proposals formulated by the authority under subsection (2) above satisfy the requirements of this subsection at any time if, on the assumption that thefollowing will prove correct, namely—

(a)the best assumptions that they are able to make at that time as to all matters which may affect the amounts falling to be credited or debited to their Housing Revenue Account for the relevant year; and

(b)the best estimates that they are able to make at that time of the amounts which, on those assumptions, will fall to be so credited or debited,

implementation of the proposals will secure that the account for that year does not show a debit balance.

(4)No assumptions shall be made under subsection (3) above as to the exerciseby the Secretary of State of any power except on the basis of information published by him or on his behalf or supplied by him to the authority.

(5)Subject to subsections (6) and (7) below, the authority shall implement the proposals formulated by them under subsection (2) above.

(6)The authority shall from time to time determine whether the proposals formulated under subsection (2) above satisfy the requirements of subsection(3) above; and—

(a)termine that question in the affirmative, they may make such revisions of the proposals as they think fit, so long as the proposals (as so revised) continue to satisfy those requirements;

(b)if they determine that question in the negative, they shall make such revisions of the proposals as are reasonably practicable towards securing that the proposals (as so revised) satisfy those requirements.

(7)Where the proposals formulated under subsection (2) above are revised under subsection (6) above, subsections (3) to (6) above shall apply inrelation to the proposals as so revised as they applied in relation to the proposals as originally formulated.

(8)The authority shall, within one month of formulating their proposals under subsection (2) above, or of revising those proposals under subsection (6)above, prepare a statement setting out—

(a)those proposals as so formulated or so revised;

(b)the estimates made by them under subsection (3)(b) above on the basis of which those proposals were so formulated or so revised; and

(c)such other particulars relating to those proposals and estimates as the Secretary of State may direct;

and a direction under paragraph (c) above may specify the manner in which the particulars are to be set out in the statement.

(9)The authority shall, until the end of the year next following the relevant year, keep copies of the statement which is for the time being the latest statement prepared by them under subsection (8) above available for inspection by the public without charge at all reasonable hours at one or more of their offices; and any person shall be entitled to take copies of, or extracts from,that statement when so made available.

Modifications etc. (not altering text)

C90S. 76 modified (28.11.1994) by S.I. 1994/2825, reg. 39

77 Power to keep Housing Repairs Account.E+W

(1)A local housing authority who are required to keep a Housing RevenueAccount may also keep, in accordance with proper practices, an account called the “Housing Repairs Account”.

(2)An authority who keep a Housing Repairs Account shall carry to the credit of the account for any year—

(a)sums transferred for the year from their Housing Revenue Account; and

(b)sums receivable by the authority for the year in connection with the repair or maintenance of houses or other property within their Housing Revenue Account (either from their tenants or from the sale of scrapped or salvaged materials).

(3)The authority shall carry to the debit of the account for any year—

(a)all expenditure incurred by them for the year in connection with therepair or maintenance of houses or other property within their Housing Revenue Account;

(b)such expenditure incurred by them for the year in connection with the improvement or replacement of houses or other property within their Housing Revenue Account as may from time to time be determined by the Secretary of State; and

(c)sums transferred for the year to the Housing Revenue Account in accordance with subsection (5) below.

(4)The authority shall secure that sufficient credits are carried to the account to secure that no debit balance is shown in the account for any year.

(5)The authority may carry some or all of any credit balance in the account for any year to the credit of their Housing Revenue Account.

(6)So much of any credit balance shown in an authority’s Housing Repairs Account at the end of the year beginning 1st April 1989 as is not carried tothe credit of their Housing Revenue Account for that year shall be carried forward and credited to some other revenue account of theirs for the year beginning 1st April 1990.

78 Directions to secure proper accounting.E+W

The Secretary of State may give directions as to the accounting practices (whether actual or prospective) which are to be followed by a local housing authority in the keeping of their Housing Revenue Account or Housing RepairsAccount.

[F18878A Directions as to treatment of service charges, &c.E+W

(1)The Secretary of State may give directions as to what items or amounts are to be regarded as referable to property within a local housing authority’s Housing Revenue Account where one or more parts of a building have been disposed of but the common parts remain property within that account.

(2)Any such direction also has effect for the purposes of any Housing Repairs Account kept by the authority.

(3)Directions under this section may give the authority a discretion as to whether items or amounts are accounted for in the Housing Revenue Account or any Housing Repairs Account or in another revenue account.

(4)In this section “common parts” includes the structure and exterior of the building and common facilities provided, whether in the building or elsewhere, for persons who include the occupiers of one or more parts of the building.]

Textual Amendments

F188S. 78A inserted (1.10.1996 with effect as mentioned in Sch. 18 para. 4(2) of the amending Act) by 1996 c. 52, s. 222, Sch. 18 para. 4(1); S.I. 1996/2402, art. 3 (subject to transitional provisions in Sch.)

[F18978B Directions as to accounting for work subject to competitive tendering.E+W

(1)This section applies where work is carried out by a local housing authority which has successfully bid for the work on a competitive basis.

(2)The Secretary of State may give directions—

(a)to secure that the amount debited to the Housing Revenue Account or any Housing Repairs Account of the authority in respect of the work reflects the amount of the authority’s successful bid for the work rather than expenditure actually incurred;

(b)allowing an authority to credit to its Housing Revenue Account any surpluses reasonably attributable to work undertaken on or in connection with property within that account.

(3)Directions under subsection (2)(a) may make provision for determining the amount to be treated as the amount of the authority’s successful bid.

References in this Part to expenditure shall be construed as references to the amount falling to be debited in accordance with the directions.

(4)Directions under subsection (2)(b) may make provision as to the ascertainment of the surpluses referred to and the circumstances in which a surplus is or is not to be taken to be attributable to property within an authority’s Housing Revenue Account.]

Textual Amendments

F189S. 78B inserted (1.10.1996 with effect as mentioned in Sch. 18 para. 4(2) of the amending Act) by 1996 c. 52, s. 222, Sch. 18 para. 4(1); S.I. 1996/2402, art. 3 (subject to transitional provisions in Sch.)

Housing subsidiesE+W

79 Housing Revenue Account subsidy.E+W

(1)Housing Revenue Account subsidy shall be payable for each year to local housing authorities.

(2)[F190Housing Revenue Account subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records,certificates, audit or otherwise as he may, with the agreement of theTreasury, determine.]

[F190Housing Revenue Account subsidy shall be paid by the appropriate person—

(a)in such instalments, at such times and in such manner, and

(b)subject to such conditions as to claims, records, certificates, supply of Housing Revenue Account business plans, audit or otherwise,

as the appropriate person may determine.]

(3)Sections 421 to 427A of the M91Housing Act 1985 (which are superseded, in their application to local housing authorities, by this section and sections 80 and 86 below) shall cease to apply in relation to such authorities.

Textual Amendments

F190S. 79(2) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(1), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Marginal Citations

80 Calculation of Housing Revenue Account subsidy.E+W

(1)[F191The amount of Housing Revenue Account subsidy (if any) payable to a local housing authority for a year shall be calculated in such manner as the appropriate person may from time to time determine.

(1A)A determination under subsection (1) above may (in particular)—

(a)provide for all or part of the amount to be calculated in accordance with a formula or formulae;

(b)provide for the amount, or part of the amount, to be calculated by reference to—

(i)whether any Housing Revenue Account business plan that the authority are required to prepare by any time has been supplied to the appropriate person or has been supplied to the appropriate person by that time;

(ii)the appropriate person’s assessment of any Housing Revenue Account business plan prepared by the authority and supplied to the appropriate person;

(iii)whether conditions are met that relate to, or to the authority’s conduct of, the authority’s finances or any aspect of those finances;

(iv)an assessment of the state of, or of the authority’s conduct of, the authority’s finances or any aspect of those finances;

(v)whether conditions are met that relate to housing provided by the authority, to housing functions of the authority or to the authority’s performance in exercising such functions;

(vi)an assessment of, or of the state of, housing provided by the authority;

(vii)an assessment of the authority’s performance in exercising functions in relation to housing provided by the authority or in otherwise exercising housing functions;

(viii)whether, as respects housing provided by the authority, management functions exercisable in relation to that housing have been entrusted to a company;

(ix)whether, where such functions have been entrusted to a company, conditions are met that relate to the performance of the company in exercising the functions;

(x)an assessment, where such functions have been entrusted to a company, of the performance of the company in exercising those functions;

(xi)assumptions as to any matter;

(c)have the effect that the amount, or part of the amount, is nil or a negative amount;

(d)make different provision for different parts of the amount.]

F192(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In determining a formula for the purposes of this section for any year, [F193the appropriate person may (in particular)] include variables framed (in whatever way he considers appropriate) by reference to—

(a)any amounts which fall to be or were credited or debited to the authority’s Housing Revenue Account for that year or any previous year;

(b)any amounts which, on such assumptions as the [F194appropriate person] may determine (whether or not borne out or likely to be borne out by events), would fall to be or would have been so credited or debited; and

(c)such other matters relating to the authority, or to (or to tenants of) houses and other property which are or have been within the account, as he thinks fit;

F195...

(4)Without prejudice to the generality of subsection (3) above, a formula may require it to be assumed that the amount for any year of the rental income or housing expenditure of each authority (or each authority in England or in Wales) is to be determined—

(a)by taking the amount which the [F196appropriate person] considers (having regard, amongst other things, to past and expected movements in incomes, costs and prices) should be or should have been the aggregate amount for that year of the rental incomes or, as the case may be, the housing expenditure of all of the authorities (or all of the authorities in England or Wales) taken together; and

(b)by apportioning that amount between them in such manner as the [F196appropriate person] considers appropriate (which may involve, if he thinks fit, inferring the aggregate values of the houses and other property within their respective Housing Revenue Accounts from the average values of any of the houses and other property which they have disposed of);

and in this subsection “rental income” means income falling within item 1 of Part I of Schedule 4 to this Act and “housing expenditure” means expenditure falling within item 1 of Part II of that Schedule or falling to be debited to the authorities’ Housing Repairs Accounts.

[F197(5)Nothing in subsections (1A) to (4) above is to be taken as limiting the appropriate person’s discretion under subsection (1) above.

(6)The appropriate person may make a determination under subsection (1) above, or a calculation under such a determination, on the basis of information received by him on or before such date as he thinks fit.]

Textual Amendments

F191S. 80(1)(1A) substituted for s. 80(1) (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(2), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F192S. 80(2) repealed (27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004, and 1.4.2004 for E.) by Local Government Act 2003 (c. 26), ss. 90(2), 128(6), Sch. 8 Pt. 1; S.I. 2003/2938, art. 7(a)(e)(iii) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F193Words in s. 80(3) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(3)(a), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F194Words in s. 80(3)(b) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(4), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F195Words in s. 80(3) repealed (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(3)(b), 128(6), Sch. 8 Pt. 1; S.I. 2003/2938, art. 3(a)(i)(iii) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F196Words in s. 80(4) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(4), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F197S. 80(5)(6) inserted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(5), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Modifications etc. (not altering text)

C91S. 80: power to restrict conferred (1.12.1998) by 1998 c. 38, s. 22(5), Sch. 3 Pt. II para. 8 (with ss. 139(2), 143(2)); S.I. 1998/2789, art. 2

[F19880BAgreements to exclude certain authorities or propertyE+W

(1)Subsection (2) applies if an agreement is in force between the appropriate person and a local housing authority for sections 79 to 80A not to apply in relation to—

(a)the authority; or

(b)specified property, or specified descriptions of property, of the authority.

(2)Sections 79 to 80A do not apply in relation to the authority or (as the case may be) property for each year provided for in the agreement.

(3)Such an agreement may, in particular, contain terms and conditions about—

(a)the period of years for which sections 79 to 80A are not to apply (whether a fixed or indefinite period);

(b)payments to the authority by the appropriate person or by the authority to the appropriate person;

(c)the levels of rent for specified property or specified descriptions of property (in the case of an agreement of the kind mentioned in subsection (1)(b));

(d)the provision of information;

(e)the variation or termination of the agreement (whether on the occurrence of particular events, at the discretion of the appropriate person or otherwise).

(4)The appropriate person may give directions about supplementary, incidental, consequential or transitional matters relating to the variation or termination of an agreement of the kind mentioned in subsection (1).

(5)Such directions may not override any provision made on the subject by the agreement unless the directions are given with the consent of the local housing authority concerned.

(6)The provision made by the directions or the agreement may, in particular, include transitional provision about the terms and conditions on which the authority or (as the case may be) property is to become subject to sections 79 to 80A after the termination of the agreement.

(7)This section does not restrict the circumstances in which Housing Revenue Account subsidy is otherwise not payable to a local housing authority, or in respect of particular property, by virtue of this Part.

(8)In this section—

  • property” means land, houses, dwellings, buildings or property of a kind falling within paragraphs (a) to (f) of section 74(1) (property within the Housing Revenue Account); and includes future property;

  • specified”, in relation to an agreement, means specified in the agreement.]

Textual Amendments

[F19980ZANegative amounts of subsidy payable to appropriate personE+W

(1)If calculation in accordance with a determination under section 80(1) above of the amount of Housing Revenue Account subsidy payable to a local housing authority for a year produces a negative amount—

(a)the authority shall for that year debit the equivalent positive amount to their Housing Revenue Account, and

(b)pay that equivalent amount to the appropriate person.

(2)Amounts payable to the appropriate person under subsection (1)(b) above shall be paid to him in such instalments, at such times and in such manner as he may determine.

(3)A payment in respect of an amount payable under subsection (1)(b) above shall be accompanied by such information as the appropriate person may require.

(4)The appropriate person may charge a local housing authority interest, at such rates and for such periods as he may determine, on any sum payable to him under subsection (1)(b) above that is not paid by such time as may be determined under subsection (2) above for its payment.

(5)The appropriate person may charge a local housing authority an amount equal to any additional costs incurred by him as a result of any sum payable to him under subsection (1)(b) above not being paid by such time as may be determined under subsection (2) above for its payment.]

Textual Amendments

F199S. 80ZA inserted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 90(1), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

[F20080A Final decision on amount of Housing Revenue Account subsidy.E+W

(1)The Secretary of State shall, as soon as he thinks fit after the end of the year, make a final decision as to the amount (if any) of Housing Revenue Account subsidy payable to a local housing authority for that year and notify the authority in writing of his decision.

[F201(1A)Notification in writing of a decision under this section is to be taken as given to a local housing authority where notice of the decision is sent using electronic communications to such address as may for the time being be notified by that authority to the Secretary of State for that purpose.

F201(1B)Notification in writing of a decision under this section is also to be treated as given to a local housing authority where—

(a)the Secretary of State and that authority have agreed that notifications of decisions under this section required to be given in writing to that authority may instead be accessed by that authority on a web site;

(b)the decision is a decision to which that agreement applies;

(c)the Secretary of State has published the decision on a web site;

(d)that authority is notified, in a manner for the time being agreed for the purpose between it and the Secretary of State, of—

(i)the publication of the decision on a web site;

(ii)the address of that web site; and

(iii)the place on that web site where the notice may be accessed, and how it may be accessed.

F201(1C)A local housing authority which is no longer willing to accept electronic communications for the notification of decisions under this section, may withdraw a notification of an address given to the Secretary of State for the purposes of subsection (1A) above, and such a withdrawal shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to withdraw the notification of the address given.

F201(1D)A local housing authority which has entered into an agreement with the Secretary of State under paragraph (a) of subsection (1B) above may revoke the agreement, and such a revocation shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to revoke the agreement.]

(2)Once notified to the authority the decision is conclusive as to the amount (if any) payable by way of subsidy and shall not be questioned in any legal proceedings.

(3)Where the amount of Housing Revenue Account subsidy paid to an authority is less than the amount finally decided, the authority is entitled to be paid the balance.

(4)Where Housing Revenue Account subsidy has been paid to an authority in excess of the amount finally decided, the Secretary of State may recover the excess, with interest from such time and at such rates as he thinks fit.

[F202(4A)Without prejudice to other methods of recovery, a sum recoverable under subsection (4) above may—

(a)be recovered by withholding or reducing subsidy, and

(b)if the sum is referable to housing benefit in respect of houses or other property within the authority’s Housing Revenue Account, be recovered by withholding or reducing rent rebate subsidy under Part 8 of the Social Security Administration Act 1992.]

(5)Nothing in this section affects any power of the Secretary of State to vary a determination as to the amount of subsidy before the final decision is made.]

Textual Amendments

F200S. 80A inserted (1.10.1996 with effect as mentioned in Sch. 18 para. 5(2) of the amending Act) by 1996 c. 52, s. 222, Sch. 18 para. 5(1); S.I. 1996/2402, art. 3

F201S. 80A(1A)-(1D) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 2 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F202S. 80A(4A) substituted for words (18.11.2003) by Local Government Act 2003 (c. 26), s. 128(3)(e), Sch. 7 para. 31; S.I. 2003/2938, art. 2(a) (with art. 8, Sch.)

Modifications etc. (not altering text)

C92S. 80A extended (W.) (1.4.2001) by S.I. 2001/605, art. 2(1), Sch.

F20381. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Textual Amendments

82 Residual debt subsidy for year 1989–90.E+W

(1)Where, in the case of any local housing authorities to whom no housing subsidy is payable for the year beginning 1st April 1989, houses or other property within their respective Housing Revenue Accounts—

(a)are disposed of in that year, or

(b)are in that year the subject of such other transactions as the Secretary of State may determine,

residual debt subsidy shall be payable for that year to those authorities in respect of costs relating to the houses or other property.

(2)Residual debt subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

(3)Payment of residual debt subsidy shall be subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.

(4)Residual debt subsidy paid to a local housing authority shall be credited to the authority’s Housing Revenue Account and, accordingly, for the year beginning 1st April 1989 the reference to housing subsidy in item 3 in Part I of Schedule 14 to the M92Housing Act 1985 shall be taken to include a reference to residual debt subsidy.

Marginal Citations

83 Calculation of residual debt subsidy.E+W

(1)The amount of the residual debt subsidy (if any) payable to a local housing authority shall be calculated—

(a)in accordance with such formulae as the Secretary of State may from time to time determine; and

(b)by reference to such houses or other property as the Secretary of State may for the time being determine.

(2)A determination of the Secretary of State under this section may relateto disposals or other transactions which occur before the making of the determination.

84 Adjustment of housing subsidy for year 1989-90.E+W

(1)In any case where, apart from this subsection and subsection (2) below, the amount of housing subsidy payable to a local housing authority for the year beginning 1st April 1989 would be reduced or extinguished as a result of the transfer from the authority to a housing action trust of housing, land orother property as mentioned in section 74 of the M93Housing Act 1988, the Secretary of State, in the exercise of his power under section 423(2) of the Housing Act 1985, may adjust the authority’s base amount forthat year to take account of the effect of that transfer.

(2)If, in accordance with subsection (1) above, the Secretary of State can make an adjustment of a local housing authority’s base amount for the year beginning 1st April 1989 to take account of a transfer of housing, land orother property to a housing action trust, he may, instead of or as well as making such an adjustment, take account of the effect of the transfer in the making or varying of any determination for that year under section 424 (housing costs differential) or in the making of any determination undersection 425 (local contribution differential) of the Housing Act 1985.

(3)Subsections (1) and (2) above shall be deemed to have been in force so as to be applicable for the year beginning 1st April 1989.

Marginal Citations

SupplementaryE+W

85 Power to obtain information.E+W

(1)A local housing authority, and any officer or employee of a local housingauthority concerned with their housing functions, shall supply the Secretary of State with such information as he may specify, either generally or in any particular case, for the purpose of enabling the Secretary of State to exercise his functions under section 80 or 83 above.

(2)A local housing authority shall supply the Secretary of State with such certificates supporting the information required by him as he may specify.

(3)If a local housing authority, or any officer or employee of a local housing authority concerned with their housing functions, fails to comply with subsection (1) or (2) above before the end of such period as the Secretary of State may specify, he may exercise his functions under section 80 or 83 above on the basis of such assumptions and estimates as he sees fit.

86 Recoupment of subsidy in certain cases.E+W

(1)Where Housing Revenue Account subsidy or residual debt subsidy has been paid to a local housing authority and it appears to the Secretary of State that the case falls within rules published by him, he may recover from the authority [F204any or F205. . . other authority which subsequently exercises the functions of a local housing authority for any part of the same area] the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates ashe may so determine.

(2)Without prejudice to other methods of recovery, a sum recoverable underthis section may be recovered by withholding or reducing subsidy.

Textual Amendments

F204Words in s. 86(1) inserted (28.11.1994) by S.I. 1994/2825, reg. 10

F205Words in s. 86(1) omitted (1.4.1996) by virtue of S.I. 1996/619, art. 10

87 Determinations and directions.E+W

(1)A determination made or direction given by the Secretary of State under this Part—

(a)may make different provision for different cases or descriptions of cases, including different provision for different areas, for different local housing authorities or for different descriptions of local housing authorities;

(b)may be made before, during or after the end of the year to which it relates; and

(c)may be varied or revoked by a subsequent determination or direction.

(2)Before making a determination or giving a direction under this Part relating to all local housing authorities or any description of such authorities, the Secretary of State shall consult such representatives of local government and relevant professional bodies as appear to him to be appropriate; and, before making a determination or giving a direction relating to a particular local housing authority, he shall consult that authority.

(3)As soon as practicable after making a determination under this Part, the Secretary of State shall send a copy of the determination to the local housing authority or authorities to which it relates.

[F206(4)References in this section to sending to a local housing authority a copy of a determination under this Part include references to using electronic communications for sending a copy of a determination to such address as may for the time being be notified to the Secretary of State by that authority for that purpose.

F207(5)For the purposes of this section a copy of a determination under this Part is also to be treated as sent to a local housing authority where—

(a)the Secretary of State and that authority have agreed to the authority instead having access to determinations on a web site;

(b)the determination is a determination to which that agreement applies;

(c)the Secretary of State has published the determination on a web site;

(d)that authority is notified, in a manner for the time being agreed for the purpose between that authority and the Secretary of State, of—

(i)the publication of the determination on a web site;

(ii)the address of that web site; and

(iii)the place on that web site where the determination may be accessed, and how it may be accessed.

F208(6)A local housing authority which is no longer willing to accept electronic communications for the sending of copies of determinations under this Part, may withdraw a notification of an address given to the Secretary of State for the purposes of subsection (4) above and such a withdrawal shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to withdraw the notification of the address given.

F209(7)A local housing authority which has entered into an agreement with the Secretary of State under paragraph (a) of subsection (5) above may revoke the agreement and such a revocation shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to revoke the agreement.]

Textual Amendments

F206S. 87(4)-(7) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 3 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F207S. 87(4)-(7) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 3 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F208S. 87(4)-(7) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 3 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F209S. 87(4)-(7) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 3 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

Modifications etc. (not altering text)

C93S. 87 extended (W.) (1.4.2001) by S.I. 2001/605, art. 2(1), Sch.

[F21087AOrders amending Part 6E+W

(1)The appropriate person may by order—

(a)amend, repeal or re-enact provisions of sections 74 to 76 and 78 of, and Schedule 4 to, this Act;

(b)provide for any such provisions—

(i)not to apply, whether at all or in cases specified by the order or to authorities so specified;

(ii)to apply, whether generally or in cases so specified or to authorities so specified, subject to modifications so specified.

(2)An order under this section may (in particular)—

(a)add items to, or remove items from, Part 1 or 2 of Schedule 4 to this Act, or vary items of those Parts;

(b)confer discretions, or expand, curtail or repeal discretions conferred, on the appropriate person or any other person;

(c)be made before, during or after the end of any year to which it relates.

(3)In subsection (2)(b) above “discretion” includes power to make a determination or give a direction.

(4)An order under this section may—

(a)contain such incidental, consequential, transitional or supplementary provisions (including provisions amending or repealing enactments), and such savings, as the appropriate person considers appropriate;

(b)make different provision for different cases or authorities.

(5)The power to make an order under this section is exercisable by statutory instrument.

(6)The Secretary of State shall not make an order under this section unless a draft of the order has been laid before, and approved by resolution of, each House of Parliament.]

Textual Amendments

88 Construction and application of Part VI.E+W

(1)In this Part—

(a)expressions which are used in Part XIII of the M94Housing Act 1985 (general financial provisions) have the same meaning as in that Part;

[F211(aa)the appropriate person” means—

(i)in relation to England, the Secretary of State, and

(ii)in relation to Wales,] [F212Welsh Ministers];

(b)references to a local housing authority’s Housing Revenue Account or Housing Repairs Account include, where the context so admits, references to the corresponding account kept by them under that Part;

(c)references to a revenue account of a local housing authority other than their Housing Revenue Account do not include references to a Housing Repairs Account; [F213 and]

(d)references to proper practices shall be construed in accordance with [F214section 21 of the Local Government Act 2003] [F215; and

F216(e)“electronic communication” means a communication transmitted (whether from one person to another, from one device to another or from a person to a device or vice versa)—

F217(i)by means of [F218an electronic communications network]; or

(ii)by other means but while in an electronic form;

F219(f)“address”, in relation to electronic communications, includes any number or address used for the purposes of such communications.]

(2)Sections 82 to 84 above and, so far as relating to those sections or residual debt subsidy, this section and sections 85 to 87 above, have effect for the year beginning on 1st April 1989.

(3)Subject to subsection (2) above, this Part has effect for years beginning on or after 1st April 1990.

(4)If, before the passing of this Act, any statement was made by or on behalf of the Secretary of State—

(a)that, if this Part were then in force, he would make, under section 83above, such a determination as is set out in the statement, and

(b)that, when this Act is passed, he is to be regarded as having made under that section the determination set out in the statement,

the determination set out in the statement shall have effect as if it had been validly made under section 83 above at the time of the statement.

(5)Any consultation undertaken—

(a)before the passing of this Act, and

(b)before the making of such a statement as is referred to in subsection (4) above, and

(c)in connection with a determination proposed to be set out in the statement,

shall be as effective, in relation to that determination, as if this Part had been in force at the time the consultation was undertaken.

(6)Any consultation undertaken before the passing of this Act in connection with a determination proposed to be made under this Part shall be as effective, in relation to that determination, as if this Part had been in force at the time the consultation was undertaken.

Textual Amendments

F211S. 88(1)(aa) inserted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(6), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F212Words in s. 88(1)(aa)(ii) substituted (22.9.2008) by Housing and Regeneration Act 2008 (c. 17), ss. 313(2), 325(2)(a)

F213Word in s. 88(1)(c) deleted (E.) (10.12.2000) by virtue of S.I. 2000/3056, art. 4(a)

F214Words in s. 88(1)(d) substituted (27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004, and 1.4.2004 for E.) by Local Government Act 2003 (c. 26), s. 128(6), Sch. 7 para. 32; S.I. 2003/2938, art. 7(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F215Word in s. 88(1)(c) deleted (E.) (10.12.2000) by virtue of S.I. 2000/3056, art. 4(a)

F216S. 88(1)(e)(f) and the preceding "and" inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 4(b) and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F218Words in s. 88(1)(e)(i) substituted (25.7.2003 for specified purposes, 29.12.2003 in so far as not already in force) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 100 (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)

F219S. 88(1)(e)(f) and the preceding "and" inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 4(b) and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

Marginal Citations

Part VIIE+W Renewal Areas

Modifications etc. (not altering text)

C94Pt. VII (ss. 89-100) amended (24.9.1996) by 1996 c. 52, ss. 221, 232(2)

89 Declaration of renewal area.E+W

(1)Where a local housing authority, upon consideration of [F220a report containing particulars of the matters] mentioned in subsection (3) below and of any other matters which the authority consider relevant, are satisfied—

(a)that the living conditions in an area within their district consisting primarily of housing accommodation are unsatisfactory, and

(b)that those conditions can most effectively be dealt with by declaring the area to be a renewal area,

then, subject to the following provisions of this Part, they may cause the area to be defined on a map and by resolution declare it to be a renewal area [F221for the period specified in the declaration] .

(2)F222. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F223(3)The matters referred to in subsection (1) above are—

(a)the living conditions in the area concerned;

(b)the ways in which those conditions may be improved (whether by the declaration of a renewal area or otherwise);

(c)the powers available to the authority (including powers available apart from this Act) if the area is declared to be a renewal area;

(d)the authority’s detailed proposals for the exercise of those powers during the period that the area will be a renewal area (if so declared);

(e)the cost of those proposals;

(f)the financial resources available, or likely to be available, to the authority (from whatever source) for implementing those proposals; and

(g)the representations (if any) made to the authority in relation to those proposals,

and the report shall contain a recommendation, with reasons, as to whether a renewal area should be declared and, if so, the period for which the area should be a renewal area.

(4)Subject to section 95 below, an area which is declared to be a renewal area shall be such an area—

(a)until the end of the period specified in the declaration, or

(b)if at any time during that period the local housing authority by resolution extend the period for which the area is to be a renewal area, until the end of the period specified in the resolution (unless further extended under this paragraph).

(5)In considering whether—

(a)to declare an area to be a renewal area, or

(b)to extend the period for which an area is to be a renewal area,

a local housing authority shall have regard to such guidance as may from time to time be given by the Secretary of State.

(6)Before exercising their power—

(a)to declare an area to be a renewal area, or

(b)to extend (or further extend) the period for which an area is to be a renewal area,

a local housing authority shall take the steps required by subsection (7) below.

(7)Those steps are such as appear to the authority best designed to secure—

(a)that the detailed proposals referred to in subsection (3)(d) above or, where the authority are considering the extension of the period for which an area is to be a renewal area, such of those proposals as remain to be implemented, are brought to the attention of persons residing or owning property in the area; and

(b)that those persons are informed of the name and address of the person to whom should be addressed inquiries and representations concerning those proposals.

(8)A resolution under subsection (1) or (4)(b) above has effect from the day on which it is passed and is a local land charge.]

90 Conditions for declaration of renewal area.E+W

F224. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F22591 Renewal area: steps to be taken after declaration or extensionE+W

(1)As soon as may be after—

(a)declaring an area to be a renewal area; or

(b)extending (or further extending) the period for which an area is to be a renewal area,

a local housing authority shall take the steps required by subsection (2) below.

(2)Those steps are such as appear to the authority best designed to secure—

(a)that the resolution to which the declaration, or extension (or further extension) of the period, relates is brought to the attention of persons residing or owning property in the area; and

(b)that those persons are informed of the name and address of the person to whom should be addressed inquiries and representations concerning action to be taken with respect to the renewal area.]

92 Duty to publish information.E+W

(1)Where a local housing authority have declared an area to be a renewal area, they shall from time to time publish, in such manner as appears to them best designed to secure that the information is brought to the attention of persons residing or owning property in the area, information with respect to—

(a)the action they propose to take in relation to the area,

(b)the action they have taken in relation to the area, and

(c)the assistance available for the carrying out of works in the area,

being such information as appears to them best designed to further the purpose for which the area was declared a renewal area.

(2)F226. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93 General powers of local housing authority.E+W

(1)Where a local housing authority have declared an area to be a renewal area, the authority may exercise the powers conferred by this section.

(2)For the purpose of securing or assisting in securing all or any of the objectives mentioned in subsection (3) below, the authority may acquire by agreement, or be authorised by the Secretary of State to acquire compulsorily, any land in the area on which there are premises consisting of or including housing accommodation or which forms part of the curtilage of any such premises; and the authority may provide housing accommodation on land acquired under this subsection.

(3)The objectives referred to in subsection (2) above are—

(a)the improvement or repair of the premises, either by the authority or by a person to whom they propose to dispose of the premises;

(b)the proper and effective management and use of the housing accommodation, either by the authority or by a person to whom they propose to dispose of the premises comprising the accommodation; and

(c)the well-being of the persons for the time being residing in the area.

(4)For the purpose of effecting or assisting the improvement of the amenities in the area, the authority may acquire by agreement, or be authorised by the Secretary of State to acquire compulsorily, any land in the area (including land which the authority propose to dispose of to another person who intends to effect or assist the improvement of those amenities).

(5)The authority may—

(a)carry out works (including works of demolition) on land owned by the authority in the area (whether or not that land was acquired under subsection(2) or subsection (4) above); F227...

F227(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F227....

(6)The authority may enter into an agreement with a housing association or other person under which, in accordance with the terms of the agreement, F228... the authority’s functions under subsection (5) above are to be exercisable by that association or other person.

(7)If after—

(a)the authority have entered into a contract for the acquisition of land under subsection (2) or subsection (4) above, or

(b)a compulsory purchase order authorising the acquisition of land under either of those subsections has been confirmed,

the renewal area concerned ceases to be such an area or the land is excluded from the area, the provisions of the subsection in question shall continue to apply as if the land continued to be in a renewal area.

(8)The powers conferred by this section are without prejudice to any power which a local housing authority may have under or by virtue of any other enactment.

94 Power to apply for orders extinguishing right to use vehicles on highway.E+W

(1)A local housing authority who have declared a renewal area may exercise the powers of a local planning authority under [F229sections 249 and 250 of the Town and Country Planning Act 1990] (extinguishment of right to use vehicles on certain highways) with respect to a highway in that area notwithstanding that they are not the local planning authority, but subject to the following provisions.

(2)The local housing authority shall not make an application under [F230subsection (2) or subsection (6) of section 249] (application to Secretary of State to make or revoke order extinguishing right to use vehicles) except with the consent of the local planning authority.

(3)If the local housing authority are not also the highway authority, any such application made by them shall in the first place be sent to the highway authority who shall transmit it to the Secretary of State.

(4)Where an order under [F231subsection (2) of section 249] (order extinguishing right to use vehicles) has been made on an application made by a local housing authority by virtue of this section, any compensation under [F231subsection (1) of section 250] (compensation for loss of access to highway) is payable by them instead of by the local planning authority.

Textual Amendments

F229Words substituted by Planning (Consequential Provisions) Act1990 (c. 11, SIF 123: 1, 2), s. 4, Sch. 2 para. 84(a)

F230Words substituted by Planning (Consequential Provisions) Act1990 (c. 11, SIF 123: 1, 2), s. 4, Sch. 2 para. 84(b)

F231Words substituted by Planning (Consequential Provisions) Act1990 (c. 11, SIF 123: 1, 2), s. 4, Sch. 2 para. 84(c)

95 Exclusion of land from, or termination of, renewal area.E+W

(1)Subject to subsection (2) below, a local housing authority may by resolution—

(a)exclude land from a renewal area; or

(b)declare that an area shall cease to be a renewal area;

and as soon as may be after passing such a resolution the authority shall take the steps required by [F232subsection (5)