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Local Government Act 2003 (c. 26)

(The document as of February, 2008)

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(7) In this section--

  • "the Audit Commission" means the Audit Commission for Local Authorities and the National Health Service in England and Wales;

  • "English local authority" means--

    (a)

    a county council in England,

    (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, or

    (e)

    the Council of the Isles of Scilly.

100 Exercise of powers by reference to authorities' performance categories

(1) The powers mentioned in subsection (2) may (in particular) be exercised for making provision in relation to a description of authority framed by reference to English local authorities that from time to time are, by reason of an order under section 99(4), of a particular category.

(2) Those powers are the powers--

(a) to make orders under section 70 of the Local Government and Housing Act 1989 (c. 42);

(b) to make orders under sections 4 to 6, 16 and 19 of the Local Government Act 1999 (c. 27);

(c) to make orders under sections 3, 5 and 6 of the Local Government Act 2000 (c. 22);

(d) to make orders under section 1 of the Regulatory Reform Act 2001 (c. 6);

(e) to make orders under sections 95 to 97 of this Act;

(f) to make regulations under section 119 of this Act.

(3) Schedule 3 (which amends certain of the provisions conferring, or governing the exercise of, those powers and does so for purposes of their exercise in relation to authorities, whether or not English local authorities, to which they apply) has effect.

(4) The Secretary of State may by order amend subsection (2) for the purpose of adding a reference to a power to make provision by order or regulations that is exercisable in relation to all or any English local authorities (whether or not also exercisable in relation to any other person or body).

(5) The Secretary of State may, for the purpose mentioned in subsection (6), by order make provision amending the enactments conferring, or governing the exercise of, a power added by an order under subsection (4) to those mentioned in subsection (2).

(6) That purpose is enabling the power, so far as exercisable in relation to English local authorities, to be exercised--

(a) in relation to--

(i) all the English local authorities in relation to which it is exercisable,

(ii) particular English local authorities, or

(iii) particular descriptions of English local authority;

(b) differently in relation to different English local authorities or descriptions of English local authority.

(7) An order under subsection (4) or (5) shall not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

(8) In this section "English local authority" has the meaning given by section 99(7).



Contracting-out

101 Staff transfer matters: general

(1) In exercising a power to contract with a person for the provision of services, a best value authority (in Scotland, a relevant authority) must--

(a) deal with matters affecting--

(i) who will be the employer of existing staff if a contract is entered into and carried out, or

(ii) what will be the terms and conditions of employment of existing staff, or the arrangements for their pensions, if their employer changes as a result of a contract being entered into and carried out,

in accordance with directions given to it by the appropriate person;

(b) have regard to guidance issued to it by the appropriate person on matters relating to the employment or pensions of existing staff.

(2) In subsection (1), references to existing staff, in relation to a contract for the provision of services, are to staff who before the contract is carried out are engaged in the provision of any of the services.

(3) Where the provision of any services under a contract with a best value authority (in Scotland, a relevant authority) for their provision is to cease in circumstances where they are to be provided instead by members of the authority's staff, the authority shall comply with directions given to it by the appropriate person for the purpose of requiring it to offer employment to staff who, before the services cease to be provided under the contract, are engaged in the provision of any of the services.

(4) The duties under Part 1 of the Local Government Act 1999 (c. 27) (best value) of a best value authority have effect subject to subsections (1) and (3).

(5) The duties under sections 1 and 2 of the Local Government in Scotland Act 2003 (asp 1) (best value) of a relevant authority have effect subject to subsections (1) and (3).

(6) Directions given, or guidance issued, for the purposes of subsection (1) or (3)--

(a) may be addressed to--

(i) all best value authorities (or, as the case may be, relevant authorities), or

(ii) authorities of a particular description;

(b) may be different for different cases or authorities.

(7) For the purposes of this section, the Secretary of State is the "appropriate person" in relation to a best value authority in Wales that is--

(a) a police authority established under section 3 of the Police Act 1996 (c. 16), or

(b) a fire authority constituted by a combination scheme.

(8) In this section--

  • "appropriate person", in relation to Scotland, means the Scottish Ministers; and

  • "relevant authority" means--

    (a)

    a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),

    (b)

    the Strathclyde Passenger Transport Authority, or

    (c)

    any other body to which Part 1 of the Local Government in Scotland Act 2003 (asp 1) (best value and accountability) applies.

102 Staff transfer matters: pensions

(1) The appropriate person shall exercise his power to give directions under section 101(1) so as to secure that where a local authority is contracting with a person ("the contractor") for the provision of services that are to be provided under a contract instead of by employees of the authority, it does so on terms--

(a) that require the contractor, in the event of there being any transferring employees, to secure pension protection for each of them, and

(b) that, so far as relating to the securing of pension protection for a transferring employee, are enforceable by the employee.

(2) For the purposes of subsection (1)--

(a) "transferring employee" means an employee of the authority whose contract of employment becomes, by virtue of the application of the TUPE regulations in relation to what is done for the purposes of carrying out the contract between the authority and the contractor, a contract of employment with someone other than the authority, and

(b) "pension protection" is secured for a transferring employee if after that change in his employer he has, as an employee of his new employer, rights to acquire pension benefits and those rights--

(i) are the same as, or

(ii) under the directions count as being broadly comparable to or better than,

those that he had as an employee of the authority.

(3) The appropriate person shall exercise his power to give directions under section 101(1) so as to secure that where--

(a) a local authority has contracted with a person ("the first contractor") for the provision of services,

(b) the application of the TUPE regulations in relation to what was done for the purposes of carrying out the contract between the authority and the first contractor resulted in employees of the authority ("the original employees") becoming employees of someone other than the authority, and

(c) the authority is contracting with a person ("the subsequent contractor") for the provision of any of the services,

the authority contracts with the subsequent contractor on terms satisfying the requirements of subsection (4).

(4) Those requirements are that the terms--

(a) require the subsequent contractor, in the event of there being any transferring original employees, to secure pension protection for each of them, and

(b) so far as relating to the securing of pension protection for an original employee, are enforceable by the employee.

(5) For the purposes of subsection (4)--

(a) "transferring original employee" means an original employee--

(i) whose contract of employment becomes, by virtue of the application of the TUPE regulations in relation to what is done for the purposes of carrying out the contract between the authority and the subsequent contractor, a contract of employment with someone other than his existing employer, and

(ii) whose contract of employment on each occasion when an intervening contract was carried out became, by virtue of the application of the TUPE regulations in relation to what was done for the purposes of carrying out the intervening contract, a contract of employment with someone other than his existing employer;

(b) "pension protection" is secured for a transferring original employee if after the change in his employer mentioned in paragraph (a)(i) he has, as an employee of his new employer, rights to acquire pension benefits and those rights--

(i) are the same as, or

(ii) under the directions count as being broadly comparable to or better than,

those that he had before that change.

(6) In subsection (5)(a)(ii), "intervening contract" means a contract with the authority for the provision, at times after they are provided under the contract with the first contractor and before they are to be provided under a contract with the subsequent contractor, of the services to be provided under the contract with the subsequent contractor.

(7) Any expression used in this section, and in the TUPE regulations, has in this section the meaning that it has in the TUPE regulations.

(8) In this section--

  • "appropriate person", in relation to Scotland, means the Scottish Ministers;

  • "local authority"--

    (a)

    in relation to England and Wales, means a local authority for the purposes of section 1(1)(a) of the Local Government Act 1999 (c. 27) (local authorities in England and Wales that are best value authorities), and

    (b)

    in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);

  • "the TUPE regulations" means the Transfer of Undertakings (Protection of Employment) Regulations 1981 (S.I. 1981/1794), or any regulations replacing those regulations, as from time to time amended.



2004 local government elections

103 Power to change date of elections in England

(1) The Secretary of State may by order provide that in 2004--

(a) the ordinary day of election of councillors for--

(i) all local government areas in England, or

(ii) all local government areas in England, except parishes, and

(b) the day on which the poll is to be held at the second ordinary election under the Greater London Authority Act 1999 (c. 29),

shall be changed so as to be the same as the date of the poll at the European Parliamentary general election.

(2) Where the Secretary of State makes an order under subsection (1), he may by order--

(a) make provision modifying, in relation to elections in England in 2004--

(i) section 89(1) or (2) of the Local Government Act 1972 (c. 70) (holding of elections to fill casual vacancies in the office of councillor for a principal area), or

(ii) rules made for the purposes of section 89(6) of that Act (which provides for casual vacancies in the office of parish councillor to be filled in accordance with rules under section 36 of the Representation of the People Act 1983 (c. 2));

(b) make provision disapplying section 16(1) of the Representation of the People Act 1985 (c. 50) (which postpones for 3 weeks the poll at an election of parish councillors where the date of the poll at a European Parliamentary general election and the ordinary day of election for councillors in England and Wales are the same) in relation to elections in England in 2004;

(c) make such provision as he thinks fit for the purpose of enabling the annual meeting in 2004 of an authority to which subsection (3) applies to be held after the date of the poll at the European Parliamentary general election.

(3) This subsection applies to--

(a) any of the following for which 2004 is not a year of ordinary elections of councillors to the council--

(i) a county council in England,

(ii) a district council, and

(iii) a parish council;

(b) an authority established by Part 4 of the Local Government Act 1985 (c. 51) (joint authorities);

(c) a police authority established under section 3 of the Police Act 1996 (c. 16);

(d) the Metropolitan Police Authority.

(4) Where the National Assembly for Wales makes an order under section 104, the Secretary of State may by order make in relation to elections in England such consequential provision, including provision excluding or modifying the application of any enactment, as he thinks fit.

(5) Before making an order under this section, the Secretary of State must consult--

(a) the Electoral Commission, and

(b) such other persons or bodies as he considers appropriate.

(6) Subsection (5) may be satisfied by consultation before, as well as by consultation after, the commencement of this section.

(7) In subsection (1)--

  • "local government area" has the same meaning as in the Representation of the People Act 1983 (c. 2);

  • "ordinary election" is to be read in accordance with section 2(7) of the Greater London Authority Act 1999 (c. 29).

(8) In subsection (4) "enactment" includes an enactment comprised in secondary legislation within the meaning of the Interpretation Act 1978 (c. 30).

104 Power to change date of elections in Wales

(1) The National Assembly for Wales may by order provide that in 2004 the ordinary day of election of councillors for--

(a) all local government areas in Wales, or

(b) all local government areas in Wales, except communities, or

(c) all communities,

shall be changed so as to be the same as the date of the poll at the European Parliamentary general election.

(2) Where the Assembly makes an order under subsection (1), it may by order--

(a) make provision modifying, in relation to elections in Wales in 2004--

(i) section 89(1) or (2) of the Local Government Act 1972 (c. 70) (holding of elections to fill casual vacancies in the office of councillor for a principal area), or

(ii) rules made for the purposes of section 89(6) of that Act (which provides for casual vacancies in the office of community councillor to be filled in accordance with rules under section 36 of the Representation of the People Act 1983);

(b) make provision disapplying section 16(1) of the Representation of the People Act 1985 (c. 50) (which postpones for 3 weeks the poll at an election of community councillors where the date of the poll at a European Parliamentary general election and the ordinary day of election for councillors in England and Wales are the same) in relation to elections in Wales in 2004.

(3) Where the Secretary of State makes an order under section 103, the National Assembly for Wales may by order make in relation to elections in Wales such consequential provision, including provision excluding or modifying the application of any enactment, as it thinks fit.

(4) Before making an order under this section, the National Assembly for Wales must consult--

(a) the Electoral Commission, and

(b) such other persons or bodies as it considers appropriate.

(5) Subsection (4) may be satisfied by consultation before, as well as by consultation after, the commencement of this section.

(6) In subsection (1), "local government area" has the same meaning as in the Representation of the People Act 1983 (c. 2).

(7) In subsection (3) "enactment" includes an enactment comprised in secondary legislation within the meaning of the Interpretation Act 1978 (c. 30).



Valuation Tribunal Service

105 The Valuation Tribunal Service

(1) There shall be a body corporate to be known as the Valuation Tribunal Service (referred to in this section, section 106 and Schedules 4 and 5 as "the Service").

(2) The Service shall have the following functions in relation to valuation tribunals in England--

(a) providing, or arranging for the provision of, the services required for the operation of tribunals, in particular--

(i) accommodation,

(ii) staff (including clerks to tribunals),

(iii) information technology,

(iv) equipment, and

(v) training for members and staff of (including clerks to) tribunals;

(b) giving general advice about procedure in relation to proceedings before tribunals.

(3) The Service shall provide the Secretary of State with such information, advice and assistance as he may require.

(4) The Service may do anything which it considers is calculated to facilitate, or is conducive or incidental to, the carrying-out of its functions.

(5) The Service shall carry out its functions with respect to valuation tribunals in the manner which it considers best calculated to secure their efficient and independent operation.

(6) The Service shall, in relation to its functions with respect to valuation tribunals, consult the tribunals concerned about the carrying-out of its functions.

(7) The Secretary of State may--

(a) after consultation with the Service, give directions to it for the purpose of securing the effective carrying-out of its functions, and

(b) issue guidance to the Service about the carrying-out of its functions.

(8) The Service shall, in carrying out its functions--

(a) comply with any directions under subsection (7)(a), and

(b) have regard to any guidance under subsection (7)(b).

(9) Schedule 4 (which makes further provision about the Service) has effect.

106 Transfer to Service of property, rights and liabilities

(1) The Secretary of State may make one or more schemes for the transfer to the Service of--

(a) such of his property, rights and liabilities, or

(b) such of the property, rights and liabilities of a valuation tribunal in England,

as appear to him to be appropriate to be transferred for the performance of the Service's functions.

(2) On the day appointed by a transfer scheme for the coming into force of the scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.

(3) Schedule 5 (which makes further provision in relation to transfer schemes) has effect.



Audit Commission

107 Auditors' public interest reports: time allowed for consideration

(1) The Audit Commission Act 1998 (c. 18) is amended as follows.

(2) In section 11(4) (body subject to audit must consider section 8 report or section 11(3) recommendation within four months of its being sent), for "four months" there is substituted "one month".

(3) In section 11(6) (auditor's power to extend time limit), for "four months" there is substituted "one month".

(4) In section 11A(8) (Mayor and Assembly must consider section 8 report or section 11(3) recommendation within four months of its being sent to the Greater London Authority), for "four months" substitute "one month".

(5) In section 11A(9) (auditor's power to extend time limit), for "four months" there is substituted "one month".

108 Auditors' public interest reports: publicity

After section 13 of the Audit Commission Act 1998 (c. 18) there is inserted--

" 13A Additional publicity for non-immediate reports

(1) This section applies where under section 10(1) an auditor has sent a report that is not an immediate report to a body or its chairman, except where the body is a health service body.

(2) The auditor may--

(a) notify any person he thinks fit of the fact that he has made the report,

(b) publish the report in any way he thinks fit, and

(c) supply a copy of the report, or of any part of it, to any person he thinks fit.

(3) From the time when the report is sent under section 10(1), but subject to subsection (4)--

(a) the auditor shall ensure that any member of the public may--

(i) inspect the report at all reasonable times without payment, and

(ii) make a copy of the report or of any part of it;

(b) any member of the public may require the auditor to supply him with a copy of the report, or of any part of it, on payment of a reasonable sum.

(4) From the end of the period of one year beginning with the day when the report is sent under section 10(1), the obligations of the auditor under subsection (3)--

(a) cease to be his obligations, but

(b) become obligations of the Commission instead. "

109 Registered social landlords

(1) After section 41 of the Audit Commission Act 1998 there is inserted--

" 41A Inspections of registered social landlords

(1) The Commission may carry out an inspection of--

(a) the quality of services provided by a registered social landlord;

(b) a registered social landlord's arrangements for securing continuous improvement in the efficiency, effectiveness and economy with which it provides services.

(2) Where the Commission has carried out an inspection under subsection (1) it shall issue a report.

(3) A report under subsection (2) shall mention any matter that, as a result of the inspection, the Commission considers should be drawn specifically to the attention of the Relevant Authority.

(4) The Commission--

(a) shall send a copy of a report under subsection (2) to the registered social landlord concerned and to the Relevant Authority;

(b) may publish a report under subsection (2) and any information in respect of a report.

(5) Section 11 of the Local Government Act 1999 (best value inspections under section 10: inspectors' powers and duties, and offences) shall apply for the purposes of an inspection of a registered social landlord under subsection (1) of this section as it applies for the purposes of an inspection of a best value authority under section 10 of that Act.

(6) The Commission shall, when drawing up any programme of inspections under subsection (1), consult the Relevant Authority.

41B Fees for inspections under section 41A

(1) The appropriate person may by order make provision of any of the following kinds in relation to the charging of fees by the Commission in respect of inspections under section 41A(1)--

(a) provision authorising the Commission to prescribe a scale or scales of fees in respect of inspections;

(b) provision governing the prescribing of scales;

(c) provision requiring a registered social landlord inspected under section 41A(1) to pay to the Commission any fee applicable to the inspection in accordance with a scale prescribed under provision of the kind mentioned in paragraph (a);

(d) such incidental, consequential or supplementary provision as the appropriate person thinks necessary or expedient.

(2) In subsection (1) "the appropriate person" means--

(a) in relation to registered social landlords for which the Housing Corporation is the Relevant Authority, the Secretary of State, and

(b) in relation to registered social landlords for which the National Assembly for Wales is the Relevant Authority, the Assembly.

(3) The Secretary of State shall, before making an order under subsection (1), consult--

(a) the Commission and the Housing Corporation, and

(b) persons appearing to the Secretary of State to represent registered social landlords affected by his proposals.

(4) The National Assembly for Wales shall, before making an order under subsection (1), consult--

(a) the Commission, and

(b) persons appearing to the Assembly to represent registered social landlords affected by its proposals.

(5) The Commission shall, before prescribing a scale of fees that it is authorised to prescribe by an order under subsection (1) made by the Secretary of State, consult--

(a) the Secretary of State and the Housing Corporation, and

(b) persons appearing to the Commission to represent registered social landlords affected by its proposals.

(6) The Commission shall, before prescribing a scale of fees that it is authorised to prescribe by an order under subsection (1) made by the National Assembly for Wales, consult--

(a) the Assembly, and

(b) persons appearing to the Commission to represent registered social landlords affected by its proposals. "

(2) In section 52(1) of that Act (orders and regulations to be made by statutory instrument), after "the Secretary of State" there is inserted "or the National Assembly for Wales".

(3) In paragraph 8(2) of Schedule 1 to that Act (categories of function in respect of which Commission must over time balance income and expenditure), after paragraph (c) there is inserted--

" (ca) its functions under section 41A relating to such landlords; " .

(4) After paragraph 8 of that Schedule there is inserted--

" 8A Each of--

(a) the Secretary of State, and

(b) the National Assembly for Wales,

may make grants to the Commission in respect of expenditure incurred or to be incurred by the Commission in connection with the carrying-out of its functions under section 41A. "

110 Financial year

(1) In Schedule 1 to the Audit Commission Act 1998 (c. 18) (which makes provision about the Commission's financial affairs), in paragraph 11(5) (which defines "financial year" for the purposes of the Schedule as the 12 months ending with 31st October in any year) for "31st October" there is substituted "31st March".

(2) Subsection (1) shall apply in relation to financial years of the Commission beginning after the one in which this section comes into force.

(3) In relation to the financial year of the Commission in which this section comes into force, Schedule 1 to the Audit Commission Act 1998 shall have effect as if the period referred to in paragraph 11(5) were a period beginning with the 1st November on which the year began and ending with the 31st March 17 months later.

(4) In this section, "the Commission" means the Audit Commission for Local Authorities and the National Health Service in England and Wales.

111 Delegation

After paragraph 11 of Schedule 1 to the Audit Commission Act 1998, there is inserted--

" Delegation

11A The Commission may delegate any of its functions to--

(a) a committee or sub-committee established by the Commission (including a committee or sub-committee including persons who are not members of the Commission), or

(b) an officer or servant of the Commission. "



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