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Statutory Instruments

2003 No. 2938 (C. 107)

LOCAL GOVERNMENT (SCOTLAND, ENGLAND AND WALES)

The Local Government Act 2003 (Commencement No. 1 and Transitional Provisions and Savings) Order 2003

Made

13th November 2003

The First Secretary of State, in exercise of the powers conferred by section 128(3), (6)(a), (8) and (9) of the Local Government Act 2003(1), hereby makes the following Order—

Citation and interpretation

1.—(1) This Order may be cited as the Local Government Act 2003 (Commencement No. 1 and Transitional Provisions and Savings) Order 2003.

(2) In this Order—

“the 1989 Act” means the Local Government and Housing Act 1989(2);

“the 1999 Act” means the Greater London Authority Act 1999(3); and

“the Act” means the Local Government Act 2003.

Provisions coming into force on 18th November 2003

2.  Subject to article 8 and the Schedule, the following provisions of the Act shall come into force on 18th November 2003—

(a)sections 70(4) to (6), 83, 92(1), 99, 100(1), (2) and (4) to (8), 106 to 108, 109(3) and (4), 111, 112 and 115, paragraphs 7(2)(a), 7(3) and 18(1) of Schedule 4, Schedule 5 and paragraphs 1, 31, 36 to 39, 65, 68, 69 and 80 of Schedule 7;

(b)section 101, so far as relating to England and so far as relating to a best value authority in Wales mentioned in subsection (7) of that section;

(c)section 105(9), so far as it relates to the paragraphs of Schedule 4 specified in sub-paragraph (a);

(d)section 109(1) for the purpose of the application of section 41A of the Audit Commission Act 1998(4) to registered social landlords for which the Housing Corporation is the Relevant Authority for the purposes of Part 1 of the Housing Act 1996(5);

(e)section 125 so far as it—

(i)enables an order to be made; and

(ii)applies to the Isles of Scilly the provisions of Parts 1 and 2 of the Act coming into force by virtue of article 3;

(f)section 127(1) so far as it relates to the paragraphs of Schedule 7 to the Act specified in sub-paragraph (a);

(g)section 127(2) so far as it relates to the provisions of Schedule 8 to the Act specified in sub-paragraph (h); and

(h)in Schedule 8—

(i)the repeals relating to the Social Security Administration Act 1992(6);

(ii)the repeals of paragraph 7(3) and (4) of Schedule 1 to the Social Security Administration (Fraud) Act 1997(7);

(iii)the repeal of section 22(2) of the Local Government Act 1999(8);

(iv)the repeal of section 52(7) of the 1999 Act;

(v)the repeals relating to the Child Support, Pensions and Social Security Act 2000(9); and

(vi)the revocations in Part 2, except for the revocation relating to the National Assembly for Wales (Transfer of Functions) Order 1999(10).

Provisions coming into force on 18th November 2003 so far as relating to England

3.  Subject to article 8 and the Schedule, the following provisions of the Act shall come into force, so far as relating to England, on 18th November 2003—

(a)sections 3(5) to (7) and (10), 4(1) to (3) and (5), 7(2)(b) and (3)(c), 8(3), 9(3), 10, 11, 14, 15, 16(2), 18, 19(3), 20, 21(1), (5) and (6), 23, 25, 26, 36, 41 to 57, 59, 60, 67(1) and (3) to (5), 70(1) to (3), 71, 89, 90(1), 100(3), 117, 119, 126 and 127(3) and (4), Schedule 3 and paragraphs 8, 19, 23, 26(1) and (2), 30, 33(3) and (5), 59, 61, 62 and 66(1) and (3) to (6) of Schedule 7;

(b)section 19(1) so far as it relates to sections 9(3), 10, 11, 15, 16(2) and 18 of the Act;

(c)section 19(2) so far as it relates to the power to make regulations in paragraph 4(2) of Schedule 1 to the Act;

(d)section 21(2)(b) so far as it enables regulations to be made;

(e)section 127(1) so far as it relates to the paragraphs of Schedule 7 to the Act specified in sub-paragraphs (a) and (h);

(f)section 127(2) so far as it relates to the provisions of Schedule 8 to the Act specified in sub-paragraph (i);

(g)in Schedule 1, paragraph 4(2) so far as it enables regulations to be made;

(h)in Schedule 7, paragraph 29 so far as it relates to sections 45 and 53 of the 1989 Act ceasing to have effect; and

(i)in Schedule 8—

(i)the repeals relating to the Housing Act 1985(11);

(ii)the repeal of section 33 of the Local Government Act 1988(12);

(iii)in the 1989 Act, the repeals of sections 45 and 53, the repeals relating to section 80(3) and paragraph 37(2) of Schedule 5 and the repeal of paragraph 97 of Schedule 11;

(iv)the repeal of section 88(6)(a) of the Environmental Protection Act 1990(13);

(v)the repeal relating to section 11(3) of the Local Government Finance Act 1992(14);

(vi)the repeal of paragraph 8(5) of Schedule 8 to the Environment Act 1995(15); and

(vii)the repeal of section 108(2) of the 1999 Act.

Provisions coming into force on 1st January 2004

4.  Subject to article 8 and the Schedule, the following provisions of the Act shall come into force on 1st January 2004—

(a)section 125 so far as it applies to the Isles of Scilly the provisions of Part 1 of the Act coming into force by virtue of article 5;

(b)section 127(1) so far as it relates to the paragraphs of Schedule 7 to the Act specified in sub-paragraph (d);

(c)section 127(2) so far as it relates to the provisions of Schedule 8 to the Act specified in sub-paragraph (e);

(d)in Schedule 7—

(i)paragraphs 75 to 77; and

(ii)paragraph 71 so far as it relates to sections 113 and 115(2) of the 1999 Act ceasing to have effect; and

(e)in Schedule 8, the repeal of sections 113 and 115(2), and the repeals relating to sections 122(3)(b) and (6)(b) and 124(4)(b), of the 1999 Act.

Provisions coming into force on 1st January 2004 so far as relating to England

5.  Subject to article 8 and the Schedule, section 3 of the Act, to the extent not brought into force by article 3, shall come into force, so far as relating to England, on 1st January 2004.

Provisions coming into force on 1st April 2004

6.  Subject to article 8 and the Schedule, the following provisions of the Act shall come into force on 1st April 2004—

(a)sections 105, 109(1) and 125 and Schedule 4 to the extent not brought into force by articles 2 and 4;

(b)section 127(1) so far as it relates to the paragraphs of Schedule 7 to the Act specified in sub-paragraph (d);

(c)section 127(2) so far as it relates to the provisions of Schedule 8 to the Act specified in sub-paragraph (e);

(d)in Schedule 7—

(i)paragraphs 27, 33(2) and (4), 70, 72 to 74 and 78; and

(ii)paragraph 71 to the extent not brought into force by article 4; and

(e)in Schedule 8—

(i)the repeals of item 5 in Part 1 and item 4 in Part 2 of Schedule 4 to the 1989 Act; and

(ii)the repeals of sections 111, 112, 114, 115(1) and (3) and 116 to 118, and the repeals relating to section 119(1) and (3)(b), of the 1999 Act.

Provisions coming into force on 1st April 2004 so far as relating to England

7.  Subject to article 8 and the Schedule, the following provisions of the Act shall come into force, so far as relating to England, on 1st April 2004—

(a)sections 1, 2, 5, 6, 12, 13, 16(1), 17, 22, 27 to 29, 37, 64, 67(2), 90(2) and (3), 102, 118, 120, Schedule 6 and paragraphs 2, 3, 4, 6, 18, 32, 51(3), 63 and 64 of Schedule 7;

(b)sections 4, 7 to 9, 19 and 21, Schedule 1 and paragraph 29 of Schedule 7 to the extent not brought into force by article 3;

(c)section 127(1) to the extent that it relates to the paragraphs of Schedule 7 to the Act specified in sub-paragraphs (a) and (b);

(d)section 127(2) to the extent that it relates to the provisions of Schedule 8 to the Act specified in sub-paragraph (e); and

(e)in Schedule 8—

(i)the repeal of section 137(4AA) of the Local Government Act 1972(16);

(ii)the repeal relating to the Stock Transfer Act 1982(17);

(iii)in the 1989 Act, the repeals of sections 39 to 44, 46 to 52, 54 to 66 and 80(2), the repeal relating to section 155(4) and the repeals of Schedule 3, paragraph 60 of Schedule 5 and paragraphs 6, 7 and 59 of Schedule 11;

(iv)the repeals of sections 32(11), 43(8) and 50(6) of and paragraph 90 of Schedule 13 to the Local Government Finance Act 1992;

(v)the repeal of section 30 of the Police and Magistrates' Courts Act 1994(18);

(vi)the repeal of section 73 of and paragraph 31(2) of Schedule 10 to the Environment Act 1995;

(vii)the repeal relating to the Police Act 1996(19);

(viii)the repeal of the Local Government Finance (Supplementary Credit Approvals) Act 1997(20);

(ix)the repeal relating to the Access to Justice Act 1999(21); and

(x)the repeals relating to the Criminal Justice and Police Act 2001(22).

Transitional provisions and savings

8.  The Schedule to this Order shall have effect for the purposes of making transitional provisions and savings, which the Secretary of State considers necessary or expedient, in relation to the provisions to which it refers.

Signed by authority of the First Secretary of State

Nick Raynsford

Minister of State,

Office of the Deputy Prime Minister

13th November 2003

Article 8

SCHEDULETRANSITIONAL PROVISIONS AND SAVINGS

Capital finance—Local Government and Housing Act 1989

1.  Sections 39 (application of Part 4) and 66 (interpretation of Part 4) of the 1989 Act shall continue to have effect on and after 1st April 2004, as if those sections had not ceased to have effect or been repealed by virtue of the Act, for the purposes of the transitional provisions and savings in paragraphs 2 to 11 below.

2.  Sections 40 to 42 of the 1989 Act (capital purposes and charge of expenditure to revenue account) shall continue to have effect in relation to expenditure incurred by a local authority before 1st April 2004 as if those sections had not ceased to have effect or been repealed by virtue of the Act.

3.  Any direction made under section 40(6) of the 1989 Act (capital purposes)—

(a)in respect of expenditure which may be treated by the authority concerned as expenditure for capital purposes; and

(b)in which the period specified under section 40(6)(d) ends on or after 1st April 2004,

shall continue to have effect on and after 1st April 2004 as if it were a direction made under section 16(2)(b) of the Act (“capital expenditure”), and accordingly the expenditure referred to in the direction may be treated by the authority concerned as capital expenditure for the purposes of Chapter 1 of Part 1 of the Act.

4.  Section 45 of the 1989 Act (the authority’s own limits) shall continue to have effect on and after 18th November 2003 in relation to limits for the financial year beginning on 1st April 2003 as if section 45 had not ceased to have effect or been repealed by virtue of the Act.

5.  Section 53 of the 1989 Act (basic credit approvals) shall continue to have effect on and after 18th November 2003—

(a)in relation to any basic credit approval issued for the financial year beginning on 1st April 2003; and

(b)for the purposes of section 54(4) of the 1989 Act (supplementary credit approvals),

as if section 53 had not ceased to have effect or been repealed by virtue of the Act.

6.  Sections 54 to 57 of the 1989 Act (credit approvals) shall continue to have effect until but not including 1st October 2004, as if they had not ceased to have effect or been repealed by virtue of the Act, for the purposes of any basic credit approval or supplementary credit approval issued before that date for a financial year, or period, beginning before 1st April 2004.

7.  Sections 58, 59 and 61 of the 1989 Act (capital receipts) shall continue to have effect until but not including 1st October 2004, as if they had not ceased to have effect or been repealed by virtue of the Act, for the purposes of section 60 of the 1989 Act (the usable balance of capital receipts).

8.  Section 60 of the 1989 Act shall continue to have effect until but not including 1st October 2004, as if it had not ceased to have effect or been repealed by virtue of the Act, for the purposes of any determination made under that section in respect of the usable part of the authority’s capital receipts that are to be applied before 1st April 2004.

9.  Part 4 of Schedule 3 to the 1989 Act (minimum revenue provision) shall continue to have effect until but not including 1st October 2004, as if it had not ceased to have effect or been repealed by virtue of the Act, for the purposes of section 63(1) of the 1989 Act (duty to set certain amounts aside as provision to meet credit liabilities).

10.  Subsections (1) and (5) of section 63 of the 1989 Act shall continue to have effect until but not including 1st October 2004, as if they had not ceased to have effect or been repealed by virtue of the Act, for the purposes of any determination under that section made before that date in relation to the financial year beginning on 1st April 2003.

11.  Section 65 of the 1989 Act (information) shall continue to have effect on and after 1st April 2004, as if it had not ceased to have effect or been repealed by virtue of the Act, for the purposes of any information required by the Secretary of State for any purpose specified in paragraph (a), (b) or (c) of subsection (1) insofar as it relates to any financial year beginning before 1st April 2004.

Capital finance—Greater London Authority Act 1999

12.  Section 113 of the 1999 Act (aggregate credit approval for Authority and functional bodies) shall continue to have effect on and after 18th November 2003—

(a)in relation to any aggregate credit approval issued for the financial year beginning on 1st April 2003; and

(b)for the purposes of section 114(4) of the 1999 Act (additional credit approval),

as if section 113 had not ceased to have effect or been repealed by virtue of the Act.

13.  Sections 114, 115(1)(b) and (3) and 116 to 118 of the 1999 Act (credit approvals) shall continue to have effect until but not including 1st October 2004, as if they had not ceased to have effect or been repealed by virtue of the Act, for the purposes of any aggregate credit approval or additional credit approval issued before that date for a financial year, or period, beginning before 1st April 2004.

14.  The definitions of “additional credit approval”, “aggregate credit approval”, “category”, “notice” and “use” in section 126 of the 1999 Act (interpretation of Chapter 4) shall continue to have effect as if—

(a)the sections of the 1999 Act mentioned in those definitions had not ceased to have effect or been repealed by virtue of the Act; and

(b)paragraph 78 of Schedule 7 to the Act had not been commenced,

for the purposes of the transitional provisions and savings in paragraphs 12 and 13 above.

Capital finance—Part 1 of the Act

15.  Any determination made under section 3(1) or (2) of the Act (duty to determine affordable borrowing limit) shall not apply in relation to how much money the authority can afford to borrow in the financial year beginning on 1st April 2003.

16.  Any regulations made or directions given under section 4 of the Act (imposition of borrowing limits) shall not apply in relation to the financial year beginning on 1st April 2003.

17.  Any credit arrangement—

(a)within the meaning of section 48 of the 1989 Act (credit arrangements);

(b)in existence immediately before 1st April 2004; and

(c)which, if it had been entered into on 1st April 2004, would be a credit arrangement within the meaning of section 7 of the Act (“credit arrangements”),

shall be treated as if it were a credit arrangement for the purposes of Chapter 1 of Part 1 of the Act (capital finance etc).

18.  The usable part of any capital receipt—

(a)within the meaning of section 60(2) of the 1989 Act (the usable balance of capital receipts); and

(b)which is not applied by the local authority in any financial year beginning before 1st April 2004,

shall be treated as if it were a capital receipt within the meaning of section 9 of the Act (“capital receipt”) for the purposes of Chapter 1 of Part 1 of the Act.

19.  The Secretary of State may only request information under section 14 of the Act (information) for the purposes of any financial year beginning on or after 1st April 2004.

Financial administration

20.  Sections 25 (budget calculations: report on robustness of estimates etc) and 26 (minimum reserves) of the Act shall not apply in relation to calculations for the purposes of the financial year beginning on 1st April 2003.

21.  Section 27 of the Act (budget calculations: report on inadequacy of controlled reserve) shall not apply in relation to calculations for the purposes of any financial year beginning before 1st April 2005.

Local retention of rates

22.  Paragraph 5(6) and (6A) of Schedule 8 to the Local Government Finance Act 1988(23) shall continue to have effect for any financial year beginning on or before 1st April 2004 as if the amendments for which section 70 of the Act provides had not been made.

Major precepting authorities: combined fire authorities

23.  Section 6 of the Fire Services Act 1947(24) and section 39(1) of the Local Government Finance Act 1992(25), shall continue to have effect for any financial year beginning on or before 1st April 2003 as if the amendments for which section 83 of and paragraph 1 of Schedule 7 to the Act provide and the revocations in Part 2 of Schedule 8 (except for the revocation relating to the National Assembly for Wales (Transfer of Functions) Order 1999(26)) to the Act had not been made.

Housing revenue account

24.  Any direction made under item 9 in part 1 of Schedule 4 to the 1989 Act, which has effect for any financial year beginning on or after 1st April 2004 shall continue to have effect, and shall have effect as if it were made under item 9 as substituted by paragraph 33(3) of Schedule 7 to the Act.

25.  Where, in any financial year beginning on or after 1st April 2004, additional rent rebates are granted in respect of a financial year beginning on or before 1st April 2003, the application of paragraph 33(4) of Schedule 7 to the Act and Schedule 8 to the Act, so far as relating to item 4 in Part 2 of Schedule 4 to the 1989 Act shall have effect so that such rent rebates are debited in the year in which they are paid to a revenue account of the authority other than its housing revenue account.

26.  Sections 79(2), 80(1) to (4) and 80A(4) of and items 5 and 9 of part 1 and item 4 of part 2 of Schedule 4 to the 1989 Act(27), section 24(3) of the Housing Act 1985(28), sections 140B, 140C, 140D and 140G of the Social Security Administration Act 1992(29) and paragraph 7(3) and (4) of Schedule 1 to the Social Security Administration (Fraud) Act 1997(30) shall continue to have effect for any financial year beginning on or before 1st April 2003 as if—

(a)the amendments for which sections 89, 90(1) to (3), 92(1) of and paragraphs 31, 33(2) to (5), 36 to 39 of Schedule 7 to the Act provide; and

(b)the repeals in Schedule 8 to the Act relating to the Social Security Administration Act 1992, the Social Security Administration (Fraud) Act 1997, section 80(2) and (3) of and item 5 in part 1 and item 4 in part 2 of Schedule 4 to the 1989 Act,

had not been made.

Explanatory Note

(This note is not part of the Order)

This Order brings into force certain provisions in the Local Government Act 2003 (“the Act”), for purposes specified, and subject to transitional and saving provisions specified in the Schedule.

The provisions in article 2 are brought into force on 18th November 2003, so far as relating to England and Wales, with the exception of section 83(2), paragraph 1 of Schedule 7 and of those relating to the Social Security Administration Act 1992, which also extend to Scotland.

Article 2 of this Order brings into force—

The provisions listed in article 3 are brought into force on 18th November 2003, so far as relating to England only.

Article 3 of this Order brings into force—

The provisions listed in article 4 are brought into force on 1st January 2004. Article 4 of this Order brings into force section 125 (in part), which applies certain provisions in Parts 1 and 2 to the Isles of Scilly, and specified amendments in Schedule 7 and consequential repeals in Schedule 8, which relate to aggregate capital approvals for and the capital spending plan of the Greater London Authority.

The provisions listed in article 5 are brought into force on 1st January 2004, so far as relating to England only. Article 5 of this Order brings into force parts of section 3 which relate to the determination of the affordable borrowing limit for a local authority.

The provisions listed in article 6 are brought into force on 1st April 2004.

Article 6 of this Order brings into force—

The provisions listed in article 7 are brought into force on 1st April 2004, so far as relating to England only.

Article 7 of this Order brings into force—

Part 1, to the extent that it is not commenced by articles 3 and 5;

Article 8 and the Schedule make transitional provisions and savings for specified provisions relating to capital finance, financial administration, rate relief for community amateur sports clubs, local retention of rates, combined fire authorities and HRA. The new capital finance and financial administration provisions apply in relation to financial years beginning on and after 1st April 2004.

(4)

1998 c. 18. Section 41A is inserted by section 109(1) of the Local Government Act 2003.

(10)

S.I. 1999/672.

(12)

1988 c. 9.

(16)

1972 c. 70. Section 137(4AA) is inserted by section 36 of the 1989 Act.

(23)

1988 c. 41. Sub-paragraph (6A) is inserted by section 104 of and paragraph 6(11) of Schedule 10 to the Local Government Finance Act 1992 (c. 14).

(27)

Section 80A is inserted by section 222 of and paragraph 5 of Schedule 18 to the Housing Act 1996 (c. 52).

(29)

1992 c. 5. Sections 140B, 140C, 140D and 140G are inserted by section 121 of and paragraph 4 of Schedule 12 to the Housing Act 1996 (c. 52).