Local Government and Public Involvement in Health Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Local Government and Public Involvement in Health Bill

Local Government and Public Involvement in Health Bill
Part 1 — Structural and boundary change in England
Chapter 1 — Structural and boundary change
13

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Certain county councils to be billing authorities
(1)
Where an order under this Chapter transfers the functions of district councils
in relation to any area to a council for a county consisting of that area, the
county council—
(a)
shall, for any financial year beginning at the same time as or after that
5
transfer, be a billing authority for the purposes of Part 1 of the Local
Government Finance Act 1992 (c. 14) in relation to the area;
(b)
shall not, for any such year, be a major precepting authority for those
purposes.
(2)
This section does not limit any power to make provision by order under this
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Chapter or any power to make incidental, consequential, transitional or
supplementary provision in connection with the provisions of any such order.
(3)
In this section “financial year” means 12 months beginning with 1 April.
Supplementary
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Correction of orders
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(1)
Where—
(a)
an order under any provision of this Chapter has been made by the
Secretary of State, and
(b)
the Secretary of State is satisfied that there is a mistake in the order
which cannot be rectified by a subsequent order made under that
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provision by virtue of section 14 of the Interpretation Act 1978 (c. 30)
(power to amend),

the Secretary of State may rectify the mistake by order under this section.
(2)
For the purposes of this section, a “mistake” in an order includes a provision
contained in or omitted from the order in reliance on inaccurate or incomplete
25
information supplied by any public body.
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Pre-commencement invitations etc
If before the commencement of this Chapter—
(a)
an invitation in accordance with section 2 was given,
(b)
guidance was given by the Secretary of State for the purposes of section
30
3,
(c)
a proposal was made in response to such an invitation, or
(d)
consultation was carried out by the Secretary of State for the purposes
of section 4,
it is immaterial that the invitation or guidance was given, the proposal made,
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or the consultation carried out, before rather than after that commencement.
22
Consequential amendments
Schedule 1 (amendments consequential on this Chapter) has effect.
23
Definitions for purposes of Chapter 1
(1)
In this Chapter—
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Local Government and Public Involvement in Health Bill
Part 1 — Structural and boundary change in England
Chapter 2 — Control of disposals etc
14

“the Boundary Committee” means the Boundary Committee for England;
“local authority” means a county council in England, a district council in
England or a London borough council;
“local government area” means a county in England, a district in England
or a London borough;
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“principal authority” has the meaning given by section 1;
“public body” includes—
(a)
a local authority;
(b)
a police authority;
(c)
a residuary body established under section 17;
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(d)
a joint board, or joint committee, on which a local authority is
represented;
(e)
a levying body within the meaning of section 74(1) of the Local
Government Finance Act 1988 (c. 41);
“single-tier” has the meaning given by subsection (2);
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“staff” includes officers and employees;
“two-tier” has the meaning given by subsection (2);
“Type A”, “Type B”, “Type C” and “combined”, in relation to a proposal,
have the meanings given by section 2.
(2)
For the purposes of this Chapter an area is—
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(a)
“single-tier” if there is a single tier of local government for it (within the
meaning of section 1) or it is a London borough; and
(b)
“two-tier” if it is—
(i)
a district for which there is a district council and in relation to
which a county council has the functions of a county council; or
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(ii)
a county for which there is a county council and in which there
are districts all of which have district councils.
(3)
Any reference in this Chapter to a proposal “in response to” an invitation or
direction under section 2 is to a Type A, Type B, Type C or combined proposal
which—
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(a)
is in response to such an invitation or direction; and
(b)
is in accordance with the invitation or direction and section 3(4).
(4)
Any reference in this Chapter, however framed, to a body affected by an order
includes a body—
(a)
whose area or functions are affected by the order;
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(b)
which is to cease to exist in pursuance of the order; or
(c)
which is established by or in consequence of the order.
Chapter 2
Control of disposals etc
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Authorities dissolved by orders: control of disposals, contracts and reserves
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(1)
The Secretary of State may direct that, with effect from a date specified in the
direction, a relevant authority may not without the written consent of a person
or persons so specified—
(a)
dispose of any land if the consideration for the disposal exceeds
£100,000;
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Local Government and Public Involvement in Health Bill
Part 1 — Structural and boundary change in England
Chapter 2 — Control of disposals etc
15

(b)
enter into any capital contract—
(i)
under which the consideration payable by the relevant
authority exceeds £1,000,000; or
(ii)
which includes a term allowing the consideration payable by
the relevant authority to be varied;
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(c)
enter into any non-capital contract under which the consideration
payable by the relevant authority exceeds £100,000, where—
(i)
the period of the contract extends beyond a date specified in the
direction; or
(ii)
under the terms of the contract, that period may be extended
10
beyond that date; or
(d)
include an amount of financial reserves in a calculation under section
32(3) or 43(3) of the Local Government Finance Act 1992 (c. 14).
(2)
In this Chapter “relevant authority” means a local authority—
(a)
which by virtue of an order under section 7 or 10 is to be dissolved; and
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(b)
which is specified, or of a description specified, in the direction.
(3)
In this section—
“capital contract” means a contract as regards which the consideration
payable by the relevant authority would be capital expenditure for the
purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (c. 26)
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(capital finance);
“non-capital contract” means a contract which is not a capital contract.
(4)
A person specified in the direction as a person whose consent is required may
be the Secretary of State or such authority or other person as he thinks
appropriate; and the direction may specify different persons—
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(a)
in relation to different matters for which consent is required;
(b)
in relation to different relevant authorities or descriptions of relevant
authority.
25
Directions: further provision about reserves
(1)
A direction under section 24—
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(a)
may provide that the consent of the person or persons specified in the
direction is not required for the inclusion, in a calculation under section
32(3) or 43(3) of the Local Government Finance Act 1992, of financial
reserves of a description specified in the direction;
(b)
may, in relation to any authority or description of authority, provide
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that that consent is not required for the inclusion in such a calculation
of an amount of financial reserves not exceeding an amount specified
in or determined under the direction.
(2)
If a direction contains provision by virtue of subsection (1), the reference in
section 24(1)(d) to an amount of financial reserves is to be read as a reference
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to an amount of financial reserves other than an amount permitted by the
direction.
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Directions: supplementary
(1)
In this section “direction” means a direction under section 24.
(2)
A consent for the purposes of a direction may be given—
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Local Government and Public Involvement in Health Bill
Part 1 — Structural and boundary change in England
Chapter 2 — Control of disposals etc
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(a)
in respect of a particular disposal or contract, or in respect of disposals
or contracts of any description;
(b)
unconditionally or subject to conditions.
(3)
The following enactments have effect subject to any direction—
(a)
section 123 of the Local Government Act 1972 (c. 70) (power to dispose
5
of land);
(b)
any other enactment relating to the disposal of land by local authorities.
(4)
The consent required by a direction is in addition to any consent required by
the enactments mentioned in subsection (3)(a) and (b).
(5)
Where the consideration or any of the consideration under a contract is not in
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money, the limits specified in a direction by virtue of section 24(1)(a) to (c)
apply to the value of the consideration.
(6)
Where—
(a)
a question arises in relation to a direction as to the value of any
consideration, and
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(b)
the relevant authority concerned and the person or persons specified
under section 24(1) fail to reach agreement,

the value is to be determined by the Secretary of State.
(7)
A direction may be varied or revoked by a subsequent direction.
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Consideration to be taken into account for purposes of direction
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(1)
In determining whether the limit specified in a direction by virtue of section
24(1)(a) is exceeded in the case of a disposal of land by a relevant authority, the
consideration with respect to any other disposal of land made after 31
December 2006 by the relevant authority is to be taken into account.
(2)
In determining whether a limit specified in a direction by virtue of section
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24(1)(b) or (c) is exceeded in the case of a contract entered into by a relevant
authority (“the contract in question”), the consideration payable by the
relevant authority under any other relevant contract shall be taken into
account.
(3)
For the purposes of subsection (2) a “relevant contract” means a contract which
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is either or both—
(a)
a contract entered into after 31 December 2006 by the relevant authority
and the person with whom the contract in question is entered into;
(b)
a contract entered into after that date by the relevant authority which
relates to the same or a similar description of matter as that to which the
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contract in question relates.
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Contraventions of direction
(1)
A disposal made in contravention of a direction under section 24 is void.
(2)
A contract entered into by an authority (“the old authority”) in contravention
of a direction under section 24 is not enforceable against a successor.
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(3)
In subsection (2) a “successor” means a local authority (other than the old
authority)—
(a)
which is established by an order under section 7 or 10; and

Local Government and Public Involvement in Health Bill
Part 2 — Elections
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(b)
whose area consists of or includes the whole or part of the area of the
old authority.
(4)
A contract which apart from this subsection would be a certified contract for
the purposes of the Local Government (Contracts) Act 1997 (c. 65) is not a
certified contract for those purposes if it is entered into in contravention of a
5
direction under section 24.
(5)
If an authority includes financial reserves in a calculation under section 32(3)
of the Local Government Finance Act 1992 (c. 14) in contravention of a
direction under section 24, the authority is to be treated for the purposes of
section 30(8) of that Act as not having made the calculations required by
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Chapter 3 of Part 1 of that Act.
(6)
If an authority includes financial reserves in a calculation under section 43(3)
of that Act in contravention of a direction under section 24, the authority is to
be treated for the purposes of section 40(7) of that Act as not having made the
calculations required by Chapter 4 of Part 1 of that Act.
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Power to amend
(1)
The Secretary of State may by order—
(a)
substitute another sum for any sum for the time being specified in
section 24(1);
(b)
substitute another date for the date for the time being specified in
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section 27(1) and (3).
(2)
An order under this section may include transitional or saving provision.
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Definitions for purposes of Chapter 2
(1)
In this Chapter—
“local authority” means a county council in England, a district council in
25
England or a London borough council;
“relevant authority” has the meaning given by section 24(2).
(2)
References in this Chapter to disposing of land include references to—
(a)
granting or disposing of any interest in land;
(b)
entering into a contract to dispose of land or grant or dispose of any
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such interest;
(c)
granting an option to acquire any land or any such interest.
Part 2
Elections
Change to whole-council elections in England
35
31
Eligible councils
(1)
“Eligible council” means a district council which is subject to a scheme for
partial-council elections.
(2)
A district council is subject to a scheme for partial-council elections if, under
the scheme for the ordinary elections of its councillors, one-half or one-third
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Local Government and Public Involvement in Health Bill
Part 2 — Elections
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(or, in either case, as nearly as may be) of the councillors are elected in each
year in which the elections are held.
(3)
This section applies for the purposes of this Part.
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Changing scheme for ordinary elections
(1)
This section applies if an eligible council resolves, during a permitted
5
resolution period, that the council is to be subject to the scheme for whole-
council elections.
(2)
The council ceases to be subject to the scheme for partial-council elections.
(3)
The council becomes subject to the scheme for whole-council elections.
(4)
The council must not pass the resolution unless it has taken reasonable steps to
10
consult on the change to whole-council elections.
(5)
It is for the council to decide which persons it is appropriate to consult.
(6)
No resolution of the council may reverse the effect of this section.
(7)
In this section “permitted resolution period”, in relation to an eligible council,
means a period specified in the second column of the following table in relation
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to that type of council.

Type of eligible council
Permitted resolution periods

Metropolitan district
(1)  The period ending with 31 December 2007.

(2)  The period in 2011, or in any fourth year

afterwards, which—

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(a)
starts with 1 October, and

(b)
ends with 31 December.

Non-metropolitan district
(1)  The period ending with 31 December 2010.

(2)  The period in 2014, or in any fourth year

afterwards, which—

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(a)
starts with 1 October, and

(b)
ends with 31 December.

(8)
The Secretary of State may by order provide that a permitted resolution period
is to end later than the last day of that period specified in the table.
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Scheme for whole-council elections
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(1)
The scheme for whole-council elections is as follows.
(2)
Ordinary elections of the councillors of the council are to be held in—
(a)
the election year which follows the end of the resolution period, and
(b)
every election year afterwards.
(3)
All councillors are to be elected in each year in which ordinary elections are
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held.
(4)
On the fourth day after ordinary elections are held—
(a)
the councillors elected in those elections are to come into office, and

Local Government and Public Involvement in Health Bill
Part 2 — Elections
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(b)
the sitting councillors are to retire.
(5)
In this section—
“election year” means—
(a)
in relation to a metropolitan district council: 2008 and every
fourth year afterwards;
5
(b)
in relation to a non-metropolitan district council: 2011 and
every fourth year afterwards;
“resolution period” means the permitted resolution period in which the
council passes a resolution for the purposes of section 32;
“sitting councillors” means the councillors who hold office at the time
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ordinary elections are held (including, in the case of ordinary elections
held in accordance with subsection (2)(a), all councillors elected in any
previous partial-council elections).
(6)
If the council passes a resolution for the purposes of section 32 in a permitted
resolution period which has been extended by an order under section 32(8),
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subsection (2)(a) has effect as if it referred to the election year in which that
period ends.
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Publicising change of scheme for ordinary elections
(1)
A council must comply with this section as soon as practicable after passing a
resolution for the purposes of section 32.
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(2)
The council must produce an explanatory document.
(3)
The council must make the explanatory document—
(a)
available for public inspection at the council’s principal office at all
reasonable times, and
(b)
available to the public by such other means as the council thinks
25
appropriate.
(4)
The council must publicise these matters—
(a)
that the council has become subject to the scheme for whole-council
elections;
(b)
when elections will first take place in accordance with the scheme for
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whole-council elections;
(c)
how the explanatory document is available in accordance with
subsection (3);
(d)
the address of the council’s principal office.
(5)
It is for the council to decide how those matters are to be publicised.
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(6)
An explanatory document is a document which sets out details of the scheme
for whole-council elections as it applies to the council.
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Notice to Electoral Commission
(1)
A council must comply with this section as soon as practicable after passing a
resolution for the purposes of section 32.
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(2)
The council must give the Electoral Commission notice that it has passed the
resolution.