The Secretary of State may, after consultation with the Council of the Isles of Scilly, by order made by statutory instrument provide that any provision of this Act specified in the order shall apply to the Isles, subject to such modifications as may be so specified, as if the Isles were a separate county or a district.

Subsection (1) above shall have effect without prejudice to the operation of section 265 of the M1Local Government Act 1972 (which relates to the application of that Act to the Isles of Scilly) or of any order made under that section.