Localism Bill (HL Bill 90)

(c) “improve”, in relation to buildings, includes refurbish, equip and fit
out;

(d) “provide” includes provide by way of acquisition, construction,
conversion, improvement or repair (and “provision” is to be read in the
5same way).

194 Acquisition of land

(1) An MDC may by agreement acquire land in its area or elsewhere.

(2) An MDC may acquire land in its area, or elsewhere in Greater London,
compulsorily if the Secretary of State authorises it to do so.

(3) 10An MDC must obtain the consent of the Mayor of London before submitting a
compulsory purchase order authorising an acquisition under subsection (2) to
the Secretary of State for confirmation.

(4) The power under subsection (2) includes power to acquire new rights over
land.

(5) 15Subsection (6) applies where—

(a) land forming part of a common, open space or allotment is being
acquired under subsection (2), or

(b) new rights are being acquired under subsection (2) over land forming
part of a common, open space or allotment.

(6) 20The power under subsection (2) includes power to acquire land compulsorily
for giving in exchange for that land or those new rights.

(7) Part 1 of Schedule 2 to the Housing and Regeneration Act 2008 (compulsory
acquisition of land by the Homes and Communities Agency) applies in relation
to the acquisition of land under subsection (2) as it applies in relation to the
25acquisition of land under section 9 of that Act.

(8) In that Part of that Schedule as applied by subsection (7)—

(a) references to section 9 of that Act are to be read as references to
subsection (2),

(b) references to the Homes and Communities Agency are to be read as
30references to the MDC concerned, and

(c) references to Part 1 of that Act are to be read as references to this
Chapter.

(9) The provisions of Part 1 of the Compulsory Purchase Act 1965 (other than
section 31) apply, so far as applicable, to the acquisition by an MDC of land by
35agreement.

(10) In subsection (5)—

• “allotment” means any allotment set out as a fuel allotment, or a field
  garden allotment, under an Inclosure Act;

• “common” has the meaning given by section 19(4) of the Acquisition of
  40Land Act 1981;

• “open space” means any land which is—

  (a)

  laid out as a public garden,

  (b)

  used for the purposes of public recreation, or

  (c)

  a disused burial ground.

195 Powers in relation to acquired land

(1) Schedule 3 to the Housing and Regeneration Act 2008 (powers, in relation to
land of the Homes and Communities Agency, to override easements etc, to
extinguish public rights of way, and in relation to burial grounds and
5consecrated land) applies in relation to an MDC and its land as it applies in
relation to the Homes and Communities Agency and its land.

(2) In that Schedule as applied by subsection (1), references to the Homes and
Communities Agency are to be read as references to the MDC concerned.

(3) The power of the Secretary of State under Part 2 of that Schedule
10(extinguishment of public rights of way) as applied by subsection (1) is
exercisable only with the consent of the Mayor.

(4) Schedule 4 to that Act (powers in relation to, and for, statutory undertakers)
applies in relation to an MDC and its land as it applies in relation to the Homes
and Communities Agency and its land.

(5) 15In that Schedule as applied by subsection (4)—

(a) references to the Homes and Communities Agency are to be read as
references to the MDC concerned, and

(b) references to Part 1 of that Act are to be read as references to this
Chapter.

196 20Restrictions on disposal of land

(1) An MDC may not dispose of land for less than the best consideration which can
reasonably be obtained unless the Mayor consents.

(2) Subsection (1) does not apply to a disposal by way of a short tenancy if the
disposal consists of—

(a) 25the grant of a term of not more than 7 years, or

(b) the assignment of a term which, at the date of assignment, has not more
than 7 years to run.

(3) An MDC may not dispose of land which has been compulsorily acquired by it
under this Chapter unless the Mayor consents.

(4) 30Subject to subsections (1) to (3), an MDC may dispose of land held by it in any
way it considers appropriate.

197 Power to enter and survey land

(1) Sections 17 and 18 of the Housing and Regeneration Act 2008 (power to enter
and survey land) apply in relation to an MDC as they apply in relation to the
35Homes and Communities Agency.

(2) In those sections as applied by subsection (1), references to that Agency are to
be read as references to the MDC concerned.

Other functions

198 Adoption of private streets

(1) Where any street works have been executed on any land in a Mayoral
development area which was then or has since become a private street (or part
5of a private street), the MDC for the area may serve a notice (an “adoption
notice”) on the street works authority requiring the authority to declare the
private street (or part) to be a highway which for the purposes of the Highways
Act 1980 is a highway maintainable at the public expense.

(2) Subsections (2) to (5) of section 157 of the Local Government, Planning and
10Land Act 1980 (appeal against corresponding notice served by an urban
development corporation, and deemed adoption where no appeal or
compliance) apply in relation to an adoption notice under subsection (1) of this
section as they apply in relation to an adoption notice under subsection (1) of
that section.

(3) 15Section 157(6) of that Act (interpretation) applies for the purposes of this
section.

199 Businesses, subsidiaries and other companies

(1) An MDC may carry on any business.

(2) An MDC may with the consent of the Mayor—

(a) 20form, or

(b) acquire interests in,

bodies corporate.

(3) An MDC must ensure that no subsidiary of the MDC engages in an activity
which the MDC would not be required or permitted to carry on.

(4) 25An MDC must ensure that no subsidiary of the MDC—

(a) borrows from a person other than the MDC, or

(b) raises money by the issue of shares or stock to a person other than the
MDC,

without the consent of the Mayor.

(5) 30In subsection (1) “business” includes undertaking.

(6) In this section “subsidiary” has the meaning given by section 1159 of the
Companies Act 2006.

200 Financial assistance

(1) An MDC may, with the consent of the Mayor, give financial assistance to any
35person.

(2) Financial assistance under this section may be given in any form.

(3) Financial assistance under this section may, in particular, be given by way of—

(a) grants,

(b) loans,

(c) 40guarantee or indemnity,

(d) investment, or

(e) incurring expenditure for the benefit of the person assisted.

(4) Financial assistance under this section may be given on such terms and
conditions as the MDC giving it considers appropriate (including provision for
repayment, with or without interest).

201 5Powers in relation to discretionary relief from non-domestic rates

(1) Subsection (2) applies if the Mayor designates a Mayoral development area.

(2) The Mayor may decide that the MDC for the area is to have—

(a) in relation to qualifying hereditaments in the area, the function of
making decisions (under section 47(3) and (6) of the 1988 Act) to the
10effect that section 47 of the 1988 Act applies as regards a hereditament,
and

(b) in relation to a hereditament as regards which that section applies as a
result of a decision made by the MDC, the function of making the
determinations mentioned in section 47(1)(a) of the Local Government
15Finance Act 1988 (determination of amount of discretionary relief).

(3) The Mayor may at any time decide that a decision under subsection (2) should
be revoked.

(4) The Mayor may make a decision under subsection (2) or (3) only if—

(a) the Mayor has consulted the persons specified by section 184(4) in
20relation to the area,

(b) the Mayor has had regard to any comments made in response by the
consultees, and

(c) in the event that those comments include comments made by the
London Assembly that the Mayor does not accept, the Mayor has
25published a statement giving the reasons for the non-acceptance.

(5) If the Mayor makes a decision under subsection (2) or (3), the Mayor must—

(a) publicise the decision, and

(b) notify the Secretary of State of the decision.

(6) If the Secretary of State receives notification under subsection (5) of a decision,
30the Secretary of State must give effect to the decision—

(a) when making the order under section 185(2) that establishes an MDC
for the area, or

(b) by exercising the power to amend that order (see section 14 of the
Interpretation Act 1978).

(7) 35Exercise by an MDC of functions mentioned in subsection (2) requires the
Mayor’s consent.

(8) If an MDC has the functions mentioned in subsection (2) it has them in place of
the authority that would otherwise have them.

(9) For the purposes of subsection (2), a hereditament is a “qualifying
40hereditament” on a day if neither—

(a) section 43(6) of the 1988 Act (charities and community amateur sports
clubs), nor

(b) section 47(5B) of the 1988 Act (certain organisations not established or
conducted for profit),

45applies on that day.

Dissolution

202 Reviews

It is the duty of the Mayor to review, from time to time, the continuing in
existence of any existing MDCs.

203 5Transfers of property, rights and liabilities

(1) The Mayor may at any time make a scheme (a “transfer scheme”) transferring
to a permitted recipient, upon such terms as the Mayor considers appropriate,
any property, rights or liabilities which are for the time being vested in an
MDC.

(2) 10A transfer scheme may provide for a transfer to a person within paragraph (d),
(e) or (f) of the definition of “permitted recipient” in subsection (4) only if the
person consents.

(3) The Mayor must publish a transfer scheme as soon after it is made as is
reasonably practicable.

(4) 15In this section—

• “company” means—

  (a)

  a company within the meaning given by section 1(1) of the
  Companies Act 2006, or

  (b)

  a society registered or deemed to be registered under the Co-
  20operative and Community Benefit Societies and Credit Unions
  Act 1965 or the Industrial and Provident Societies Act (Northern
  Ireland) 1969;

• “functional body” has the meaning given by section 424(1) of the Greater
  London Authority Act 1999;

• 25“permitted recipient” means—

  (a)

  the Greater London Authority,

  (b)

  a functional body other than the MDC concerned,

  (c)

  a company that is a subsidiary of the Greater London Authority,

  (d)

  a London borough council,

  (e)

  30the Common Council of the City of London, or

  (f)

  any other person;

• “subsidiary” has the meaning given by section 1159 of the Companies Act
  2006.

204 Dissolution: final steps

(1) 35Subsection (2) applies if no property, no rights and no liabilities are vested in
an MDC (“the MDC”).

(2) The Mayor may request the Secretary of State to revoke the order under section
185(2) which established the MDC.

(3) If the Secretary of State receives a request under subsection (2), the Secretary of
40State must make an order giving effect to the request.

(4) Where the Secretary of State makes an order under subsection (3)—

(a) the MDC is dissolved on the coming into force of the order, and

(b) the Mayor must revoke the designation of the Mayoral development
area for which the MDC was established.

(5) Where the Mayor makes a revocation under subsection (4)(b), the Mayor
must—

(a) 5publicise the revocation, and

(b) notify the Secretary of State of the revocation.

General

205 Transfer schemes: general provisions

(1) In this section—

• 10“transfer scheme” means a scheme under section 187(1) or (4) or 203(1);

• “transferee”, in relation to a transfer scheme, means the person to whom
  property, rights or liabilities are transferred by the scheme;

• “transferor”, in relation to a transfer scheme, means the person from
  whom property, rights or liabilities are transferred by the scheme.

(2) 15The things that may be transferred under a transfer scheme include—

(a) property, rights or liabilities that could not otherwise be transferred;

(b) property acquired, and rights and liabilities arising, after the making of
the scheme.

(3) A transfer scheme may make consequential, supplementary, incidental or
20transitional provision and may in particular—

(a) make provision for certificates issued by the Secretary of State to be
conclusive evidence that property has been transferred;

(b) create rights, or impose liabilities, in relation to property or rights
transferred;

(c) 25make provision about the continuing effect of things done (or having
effect as if done) by or in relation to the transferor in respect of anything
transferred;

(d) make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of or in relation
30to the transferor in respect of anything transferred;

(e) make provision for references to the transferor in an instrument or
other document in respect of anything transferred to be treated as
references to the transferee;

(f) make provision for the shared ownership or use of property.

(4) 35The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246S.I. 2006/246) apply to a transfer under a transfer scheme where the transfer
relates to rights or liabilities under a contract of employment (whether or not it
is a relevant transfer for the purposes of those regulations).

(5) A transfer scheme may provide—

(a) 40for modification by agreement;

(b) for modifications to have effect from the date when the original scheme
came into effect.

(6) In this section “rights” and “liabilities” include rights, or (as the case may be)
liabilities, in relation to a contract of employment.

206 Guidance by the Mayor

(1) The Mayor may give guidance to an MDC as to the exercise of any of the
MDC’s functions.

(2) Before giving guidance under this section, the Mayor must consult such
5persons as the Mayor considers appropriate.

(3) The Mayor must publish any guidance given under this section as soon as
reasonably practicable after giving it.

(4) The Mayor may revoke guidance given under this section.

(5) The Mayor must—

(a) 10consult, before revoking guidance given under this section, such
persons as the Mayor considers appropriate, and

(b) publish the fact that guidance given under this section has been
revoked as soon as reasonably practicable after the revocation of the
guidance.

(6) 15An MDC must, in exercising its functions, have regard to any guidance given
to it under this section that is for the time being in force.

(7) References in this section to giving guidance include references to giving
guidance by varying existing guidance.

207 Directions by the Mayor

(1) 20The Mayor may give an MDC general or specific directions as to the exercise of
any of the MDC’s functions.

(2) The Mayor must publish any directions given under this Chapter by the Mayor
as soon as reasonably practicable after giving them.

(3) The Mayor—

(a) 25may revoke any directions given under this Chapter by the Mayor, and

(b) must publish the fact that directions given under this Chapter have
been revoked as soon as reasonably practicable after the revocation.

(4) An MDC must comply with any directions given by the Mayor under this
Chapter that are in force in relation to the MDC.

(5) 30Subsections (2) and (3)(b) do not apply to directions given under paragraph
8(1) of Schedule 21.

(6) References in this Chapter to the Mayor giving directions include references to
the Mayor giving directions by varying existing directions.

208 Consents

(1) 35A relevant consent may be given—

(a) unconditionally or subject to conditions, and

(b) generally or specifically.

(2) The Mayor may vary or revoke a relevant consent except in the case of
anything already done, or agreed to be done, on the authority of it.

(3) A variation or revocation under subsection (2) does not have effect until the
Mayor has served notice of it on the person to whom the relevant consent was
given.

(4) In this section “relevant consent” means a consent of the Mayor required under
5this Chapter.

209 Consequential and other amendments

Schedule 22 (Mayoral development corporations: consequential and other
amendments) has effect.

CHAPTER 3 Greater London Authority governance

210 10Delegation of functions by Ministers to the Mayor

(1) The Greater London Authority Act 1999 is amended as follows.

(2) After section 39 insert—

“Delegation to Mayor of Ministers’ functions

39A Delegation by Ministers

(1) 15A Minister of the Crown may, to such extent and subject to such
conditions as that Minister thinks fit, delegate to the Mayor any of that
Minister’s eligible functions.

(2) A function is eligible for the purposes of subsection (1) above if—

(a) it does not consist of a power to make regulations or other
20instruments of a legislative character or a power to fix fees or
charges, and

(b) the Secretary of State considers that it can appropriately be
exercised by the Mayor.

(3) No delegation under subsection (1) above, and no variation of a
25delegation under subsection (1) above, may be made without the
agreement of the Mayor.

(4) A delegation under subsection (1) above may be revoked at any time by
any Minister of the Crown.

(5) Section 38 above does not apply in relation to functions delegated
30under subsection (1) above.”

(3) In section 409 (schemes for the transfer of property, rights and liabilities)—

(a) after subsection (1) (Ministers may make schemes transferring property
etc of the Crown) insert—

“(1A) A Minister of the Crown may make a scheme for the transfer
35from the Authority to the Crown of such property, rights or
liabilities as the Minister of the Crown may consider
appropriate in consequence of the revocation of a delegation
under section 39A(1) above of a function of any Minister of the
Crown.”, and

(b) in subsections (6) and (7) (provision that may be included in scheme
under subsection (1) or (2)) after “subsection (1)” insert “, (1A)”.

211 Authority may be required to carry on commercial activities through a taxable
body

(1) 5The Greater London Authority Act 1999 is amended as follows.

(2) After section 34 insert—

“34A Restriction on exercise of certain powers except through a taxable
body

(1) The Authority may carry on specified activities for a commercial
10purpose only if it does so—

(a) through a company that is a subsidiary of the Authority, or

(b) in pursuance of an authorisation under section 38(1), through—

(i) a body that is specified in section 38(2) and is within the
charge to corporation tax, or

(ii) 15a company that is a subsidiary of a body specified in
section 38(2).

(2) Subsection (3) applies if—

(a) the Authority carries on a specified activity for a commercial
purpose otherwise than as permitted by subsection (1), and

(b) 20the activity is actually carried on by a body (whether the
Authority or another) that, disregarding this section, is in
respect of the carrying-on of the activity exempt from
corporation tax and income tax.

(3) The body mentioned in subsection (2)(b) is to be treated in respect of the
25carrying-on of the activity as not being a local authority for the
purposes of—

(a) section 984 of the Corporation Tax Act 2010 (exemption of local
authorities from corporation tax),

(b) section 838 of the Income Tax Act 2007 (exemption of local
30authorities from income tax), and

(c) section 271 of the Taxation of Chargeable Gains Act 1992
(exemption of local authorities from capital gains tax).

(4) In this section—

• “company” means—

  (a)

  35a company within the meaning given by section 1(1) of
  the Companies Act 2006, or

  (b)

  a society registered or deemed to be registered under the
  Co-operative and Community Benefit Societies and
  Credit Unions Act 1965 or the Industrial and Provident
  40Societies Act (Northern Ireland) 1969, and

• “specified activity” means an activity specified in an order made
  by the Secretary of State with the consent of the Treasury.”

(3) In section 420(8) (orders subject to annulment) after the entry for section 25
insert—

• 45“section 34A;”.

212 The London Environment Strategy

(1) Before section 352 of the Greater London Authority Act 1999 insert—

“The Mayor’s Environment Strategy for London

351A The London Environment Strategy

(1) 5The Mayor shall prepare and publish a document to be known as the
“London Environment Strategy” (“the Strategy”).

(2) The Strategy must contain a general assessment by the Mayor of the
environment in Greater London, so far as relevant to the functions of
the Authority or of the Mayor.

(3) 10The Strategy must contain provisions dealing with the Mayor’s policies
and proposals in relation to each of the following matters in relation to
Greater London—

(a) biodiversity;

(b) municipal waste management;

(c) 15climate change mitigation and energy;

(d) adaptation to climate change;

(e) air quality; and

(f) ambient noise.

(4) The provisions of the Strategy dealing with a matter specified in a
20paragraph of subsection (2) must also contain anything required to be
included in them by any other provision of this Act.

(5) The Strategy may also include provisions dealing with the Mayor’s
policies and proposals in relation to any other matter relating to the
environment in Greater London.

(6) 25In preparing or revising the provisions of the Strategy dealing with a
matter mentioned in subsection (3), the Mayor’s duty under section
42(1)(e) applies as if it were a duty to consult any person or body whom
the Mayor considers it appropriate to consult in relation to those
provisions (and section 42(2) applies accordingly).

(7) 30Where the Strategy is revised, the Mayor must publish it as revised.

(8) In this Act references to the London Environment Strategy include,
unless the context otherwise requires, a reference to the Strategy as
revised.

351B Guidance

(1) 35The Secretary of State may give to the Mayor guidance—

(a) about the content of the London Environment Strategy;

(b) in relation to the preparation or revision of that Strategy.

(2) The guidance that may be given under subsection (1)(a) includes
guidance as to matters which the Secretary of State considers the Mayor
40should, or should not, consider dealing with by formulating policies
and proposals under section 351A(5).

(3) The guidance that may be given under subsection (1)(b) includes—

(a) guidance specifying or describing the bodies or persons whom
the Secretary of State considers the Mayor should consult in
45preparing or revising the London Environment Strategy or, as
the case may be, the provisions dealing with a matter specified
in the guidance;

(b) guidance as to the evidence of environmental change or its
consequences, or the predictions of environmental change or its
50consequences, to which the Secretary of State considers the
Mayor should have regard in preparing or revising that
Strategy or, as the case may be, the provisions dealing with a
matter specified in the guidance.