(1)A disposal made in contravention of a direction under section 24 is void.
(2)A contract entered into by an authority (“the old authority”) in contravention of a direction under section 24 is not enforceable against a successor.
(3)In subsection (2) a “successor” means a local authority (other than the old authority)—
(a)which is established by an order under section 7 or 10; and
(b)whose area consists of or includes the whole or part of the area of the old authority.
(4)A contract which apart from this subsection would be a certified contract for the purposes of the Local Government (Contracts) Act 1997 (c. 65) is not a certified contract for those purposes if it is entered into in contravention of a direction under section 24.
(5)If an authority includes financial reserves in a calculation under section [F131A(3)] of the Local Government Finance Act 1992 (c. 14) in contravention of a direction under section 24, the authority is to be treated for the purposes of section 30(8) of that Act as not having made the calculations required by Chapter 3 of Part 1 of that Act.
(6)If an authority includes financial reserves in a calculation under section [F242A(3)] of that Act in contravention of a direction under section 24, the authority is to be treated for the purposes of section 40(7) of that Act as not having made the calculations required by Chapter 4 of Part 1 of that Act.
Textual Amendments
F1Word in s. 28(5) substituted (3.12.2011) by Localism Act 2011 (c. 20), s. 240(2), Sch. 7 para. 51(2); S.I. 2011/2896, art. 2(i)
F2Word in s. 28(6) substituted (3.12.2011) by Localism Act 2011 (c. 20), s. 240(2), Sch. 7 para. 51(3); S.I. 2011/2896, art. 2(i)
Commencement Information
I1S. 28 in force at 1.11.2007 for E. by S.I. 2007/3136, art. 2(a)