Section 17(5) of the Local Government Act 1988 (the “1988 Act”) contains a list of matters (non-commercial matters) by reference to which public authorities may not exercise the functions listed in section 17(4) of that Act, which include functions in relation to proposed public supply or works contracts with the authority.

This Order provides for certain matters specified in the Order to cease to be non-commercial matters for the purposes of section 17 of the 1988 Act. The matters concerned relate to the terms and conditions of employment etc. of a contractor’s workforce and the conduct of contractors or their workers in industrial disputes. But, under the Order, those matters cease to be non-commercial matters only so far as necessary or expedient to permit or facilitate compliance with the best value requirements of Part I of the Local Government Act 1999; or where there is a transfer of staff to which the Transfer of Undertakings (Protection of Employment) Regulations 1981 may apply.

This Order applies to all best value authorities in England and police and fire authorities in Wales.