VI. IMPLEMENTATION OF THE REFORMS
39. As we have stated earlier, the Government still
has a considerable amount of work to carry out on the detailed
implementation of its proposals and further consultations and
establishment of working groups are planned for several areas.
The Government's present intention is that there will be draft
legislation by autumn 2001, with the new system fully operational
by October 2002.
The financial effects will therefore principally impact on the
next financial cycle, and may be expected to be reflected in the
2002 Spending Review.
40. The Government intends that the LSC should initially
set up in shadow form and £500,000 has been set aside to
cover expenses in setting it up.
Lord Bach was not able to give us a comprehensive assessment of
the financial implications of the establishment of LSC. We
would like an updated assessment to accompany the Government response
to this Report.
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