Local Democracy, Economic Development and Construction Bill [HL]

House of Commons

Session 2008 - 09
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Local Democracy, Economic Development and Construction Bill [HL]

Local Democracy, Economic Development and Construction Bill [HL]
Part 1 — Democracy and involvement
Chapter 5 — Local freedoms and honorary titles
22

“eligible person” means a person whose name is on the roll of
persons admitted to the freedom of the city or town
concerned kept under section 248(2) above;
“relevant council” means—
(a)
in relation to a city or town in England—
5
(i)
the district council in whose area the city or
town is situated, or
(ii)
if the city or town is not in the area of a district
council, the county council in whose area it is
situated;
10
(b)
in relation to a city or town in Wales, the principal
council in whose area the city or town is situated.
Order-making powers: supplementary
11    (1)
A statutory instrument containing an order under this Schedule
which contains an amendment to a public general Act is subject to
15
annulment—
(a)
by either House of Parliament, in the case of an order made
by the Secretary of State;
(b)
by the National Assembly for Wales, in the case of an order
made by the Welsh Ministers.”
20
(4)
In section 248—
(a)
in subsection (1), after “this section”, in both places, insert “and
Schedule 28A”;
(b)
in subsection (2), for “freemen” substitute “persons admitted to the
freedom”;
25
(c)
in subsection (3)—
(i)
for “as a freeman” substitute “to the freedom”;
(ii)
for “his”, in both places, substitute “the person’s”;
(iii)
for “freemen” substitute “persons admitted to the freedom”;
(d)
in subsection (4), in paragraphs (a), (b) and (c), for “freeman” substitute
30
“person admitted to the freedom”.
28
Honorary titles
(1)
Section 249 of the Local Government Act 1972 (c. 70) (honorary aldermen and
freemen) is amended as follows.
(2)
In the heading, for “Honorary aldermen and freemen” substitute “Honorary
35
titles”.
(3)
In subsection (1) (power of principal councils to confer title of honorary
aldermen), after “honorary aldermen” insert “or honorary alderwomen”.
(4)
In subsection (2)—
(a)
after “honorary alderman” insert “or honorary alderwoman”;
40
(b)
after “as alderman” insert “or alderwoman”;
(c)
after “as an alderman” insert “or alderwoman”.
(5)
In subsection (4), after “honorary alderman” insert “or honorary alderwoman”.

Local Democracy, Economic Development and Construction Bill [HL]
Part 1 — Democracy and involvement
Chapter 6 — Membership of local authorities
23

(6)
After that subsection insert—
“(4A)
A principal council may spend such reasonable sum as they think fit for
the purpose of presenting an address, or a casket containing an address,
to a person on whom they have conferred the title of honorary
alderman or honorary alderwoman.”
5
(7)
For subsections (5) to (9) (honorary freemen) there is substituted—
“(5)
Subject as follows, a relevant authority may admit to be honorary
freemen or honorary freewomen of the place or area for which it is the
authority—
(a)
persons of distinction, and
10
(b)
persons who have, in the opinion of the authority, rendered
eminent services to that place or area.
(6)
In this section “relevant authority” means—
(a)
a principal council;
(b)
a parish or community council;
15
(c)
charter trustees in England constituted—
(i)
under section 246 of the Local Government Act 1972,
(ii)
by the Charter Trustees Regulations 1996 (SI 1996/263),
or
(iii)
under Part 1 of the Local Government and Public
20
Involvement in Health Act 2007.
(7)
The power in subsection (5) above is exercisable by resolution of the
relevant authority.
(8)
A resolution under subsection (7) above must be passed—
(a)
at a meeting of the relevant authority which is specially
25
convened for the purpose and where notice of the object of the
meeting has been given; and
(b)
by not less than two-thirds of the members of the relevant
authority (or, in the case of charter trustees, of the trustees) who
vote on it.
30
(9)
A relevant authority may spend such reasonable sum as it thinks fit for
the purpose of presenting an address or a casket containing an address
to a person on whom the authority has conferred the title of honorary
freeman or honorary freewoman under subsection (5) above.
(10)
The admission of a person as honorary freeman or honorary
35
freewoman does not confer on that person any of the rights referred to
in section 284(4) above.”
Chapter 6
Membership of local authorities
29
Politically restricted posts
40
(1)
The Local Government and Housing Act 1989 (c. 42) is amended as follows.
(2)
In section 2 (politically restricted posts), in subsection (2) omit—
(a)
paragraphs (a) and (b), and

Local Democracy, Economic Development and Construction Bill [HL]
Part 2 — Local authorities: governance and audit
Chapter 1 — Governance
24

(b)
in paragraph (c), the words “not falling within paragraph (a) or (b)
above”.
(3)
In section 3 (grant and supervision of exemptions from political restriction:
Scotland and Wales), in subsection (3) omit—
(a)
in paragraph (a), the word “and”,
5
(b)
paragraph (b), and
(c)
the words from “and it shall” to the end of the subsection.
(4)
In section 3A (grant and supervision of exemptions from political restriction:
England), in subsection (2) omit—
(a)
in paragraph (a), the word “and”,
10
(b)
paragraph (b), and
(c)
the words from “and the relevant” to the end of the subsection.
Part 2
Local authorities: governance and audit
Chapter 1
15
Governance
30
Scrutiny officers
In the Local Government Act 2000 (c. 22), after section 21 insert—
“21ZA
Scrutiny officers
(1)
Subject as follows, a local authority in England must designate one of
20
their officers to discharge the functions in subsection (2).
(2)
Those functions are—
(a)
to promote the role of the authority’s overview and scrutiny
committee or committees;
(b)
to provide support to the authority’s overview and scrutiny
25
committee or committees and the members of that committee or
those committees;
(c)
to provide support and guidance to—
(i)
members of the authority,
(ii)
members of the executive of the authority, and
30
(iii)
officers of the authority,

in relation to the functions of the authority’s overview and
scrutiny committee or committees.
(3)
An officer designated by a local authority under this section is to be
known as the authority’s “scrutiny officer”.
35
(4)
A local authority may not designate any of the following under this
section—
(a)
the head of the authority’s paid service designated under
section 4 of the Local Government and Housing Act 1989;
(b)
the authority’s monitoring officer designated under section 5 of
40
that Act;

Local Democracy, Economic Development and Construction Bill [HL]
Part 2 — Local authorities: governance and audit
Chapter 1 — Governance
25

(c)
the authority’s chief finance officer, within the meaning of that
section.
(5)
The duty in subsection (1) does not apply to a district council for an area
for which there is a county council.
(6)
In this section, references to an overview and scrutiny committee
5
include any sub-committee of that committee.”
31
Joint overview and scrutiny committees
(1)
In the Local Government and Public Involvement in Health Act 2007 (c. 28), for
section 123 (joint overview and scrutiny committees: local improvement
targets) substitute—
10
“123
Joint overview and scrutiny committees
(1)
The Secretary of State may by regulations make provision under which
any two or more local authorities in England may—
(a)
appoint a joint committee (a “joint overview and scrutiny
committee”), and
15
(b)
arrange for the committee to exercise any functions in
subsection (2).
(2)
The functions in this subsection are functions of making reports or
recommendations to—
(a)
any of the local authorities appointing the committee (the
20
“appointing authorities”), or
(b)
if any of the appointing authorities is a non-unitary district
council, the related county council,

about any matter which is not an excluded matter.
(3)
In subsection (2) “excluded matter” means any matter with respect to
25
which a crime and disorder committee could make a report or
recommendations—
(a)
by virtue of subsection (1)(b) of section 19 of the Police and
Justice Act 2006 (local authority scrutiny crime and disorder
matters), or
30
(b)
by virtue of subsection (3)(a) of that section.
(4)
In subsection (2) references to making reports or recommendations to a
local authority include, in the case of a local authority operating
executive arrangements under Part 2 of the Local Government Act
2000, making reports or recommendations to its executive.
35
(5)
Regulations under this section may in particular—
(a)
provide for arrangements to be made only in circumstances, or
subject to conditions or limitations, specified in the regulations;
(b)
in relation to joint overview and scrutiny committees, make
provision applying, or corresponding to, any provision of—
40
(i)
section 21(4) and (6) to (12) of the Local Government Act
2000,
(ii)
sections 21A to 21D of that Act, or
(iii)
section 246 of, and Schedule 17 to, the National Health
Service Act 2006,
45

Local Democracy, Economic Development and Construction Bill [HL]
Part 2 — Local authorities: governance and audit
Chapter 1 — Governance
26


with or without modifications;
(c)
make provision as to information which an associated authority
of any appointing authority must provide, or may not disclose,
to a joint overview and scrutiny committee (or, if the
regulations make provision for the appointment of sub-
5
committees of such a committee, to such a sub-committee).
(6)
In subsection (5)(c) “associated authority”, in relation to any appointing
authority, means—
(a)
in the case of an appointing authority which is a non-unitary
district council—
10
(i)
the related county council, and
(ii)
any person who is a partner authority in relation to the
related county council;
(b)
in the case of any other appointing authority, any person who is
a partner authority in relation to the appointing authority.
15
(7)
In subsection (6) “partner authority” has the same meaning as in
Chapter 1 of this Part except that it does not include a police authority
or a chief officer of police.
(8)
Regulations under this section may not make provision of a kind
mentioned in subsection (5)(c) with respect to information in respect of
20
which provision may be made in exercise of the power conferred by
section 20(5)(c) or (d) of the Police and Justice Act 2006 (guidance and
regulations regarding crime and disorder matters).
(9)
Any local authority and any joint overview and scrutiny committee
must, in exercising or deciding whether to exercise any function
25
conferred on it by or under this section, have regard to any guidance
issued by the Secretary of State.
(10)
In this section—
“local authority” has the same meaning as in Part 2 of the Local
Government Act 2000;
30
“non-unitary district council” means a district council for a district
in a county for which there is a county council (and the “related
county council”, in relation to a non-unitary district council,
means that county council).”
(2)
In section 21 of the Local Government Act 2000 (c. 22) (overview and scrutiny
35
committees), in subsection (2A)(e), for the words from “(joint” to the end
substitute “(joint overview and scrutiny committees) appointed by two or
more local authorities including the authority concerned”.
32
Powers of National Assembly for Wales
(1)
Schedule 5 to the Government of Wales Act 2006 (c. 32) (Assembly measures)
40
is amended as follows.
(2)
In Part 1, after the heading “Field 12: local government”, after the entry relating
to Matter 12.5 insert—

“Matter 12.6

Arrangements by principal councils with respect to the discharge of
45
their functions, including executive arrangements.

Local Democracy, Economic Development and Construction Bill [HL]
Part 2 — Local authorities: governance and audit
Chapter 2 — Audit of entities connected with local authorities
27


This matter does not include—
(a)
direct elections to executives of principal councils, or
(b)
the creation of a form of executive requiring direct elections.

For the purposes of this matter—
(a)
“executive arrangements” has the same meaning as in Part 2
5
of the Local Government Act 2000;
(b)
“principal council” means a county or county borough
council;
(c)
“direct elections” means elections by local government
electors (within the meaning of section 270(1) of the Local
10
Government Act 1972).”
(3)
In that Part, after the entry relating to Matter 12.6 (as inserted by subsection (2)
above) insert—

“Matter 12.7

Committees of principal councils with functions of—
15
(a)
review or scrutiny, or
(b)
making reports or recommendations.

This matter does not include committees under section 19 of the
Police and Justice Act 2006 (crime and disorder committees).

For the purposes of this matter “principal council” means a county or
20
county borough council.”
Chapter 2
Audit of entities connected with local authorities
Preliminary
33
Overview
25
(1)
This Chapter makes provision for an audit authority to appoint a person to
carry out audit functions in relation to a relevant entity in circumstances where
it appears to the authority that the entity is or will be a qualifying English or
Welsh local authority entity.
(2)
For the purposes of this Chapter, each of the following is an “audit
30
authority”—
(a)
the Audit Commission;
(b)
the Auditor General for Wales.
(3)
In this Chapter, “relevant entity” means—
(a)
a company,
35
(b)
a limited liability partnership, or
(c)
an industrial and provident society.
(4)
In this Chapter, “qualifying English local authority entity” means a relevant
entity which—
(a)
is connected with a local authority in England, and
40

Local Democracy, Economic Development and Construction Bill [HL]
Part 2 — Local authorities: governance and audit
Chapter 2 — Audit of entities connected with local authorities
28

(b)
meets such other conditions as the Secretary of State may by
regulations specify.
(5)
In this Chapter, “qualifying Welsh local authority entity” means a relevant
entity which—
(a)
is connected with a local authority in Wales, and
5
(b)
meets such other conditions as the Welsh Ministers may by regulations
specify.
(6)
In this Chapter, “local authority” means any body which—
(a)
is a local authority for the purposes of section 21 of the Local
Government Act 2003 (c. 26) (see subsection (6) of that section and
10
section 23 of that Act), and
(b)
is required to prepare statements of accounts by regulations made
under section 27 of the Audit Commission Act 1998 (c. 18) or section 39
of the Public Audit (Wales) Act 2004 (c. 23).
34
Notification duties of local authorities
15
(1)
Where it comes to the attention of a local authority in England that—
(a)
a relevant entity which is connected with the authority meets the
conditions referred to in section 33(4)(b),
(b)
a relevant entity which is connected with the authority has ceased to
meet those conditions, or
20
(c)
a relevant entity which meets those conditions has ceased to be
connected with the local authority,

the authority must notify the entity and the Audit Commission accordingly.
(2)
Where it comes to the attention of a local authority in Wales that—
(a)
a relevant entity which is connected with the authority meets the
25
conditions referred to in section 33(5)(b),
(b)
a relevant entity which is connected with the authority has ceased to
meet those conditions, or
(c)
a relevant entity which meets those conditions has ceased to be
connected with the local authority,
30

the authority must notify the entity and the Auditor General for Wales
accordingly.
(3)
Notification under this section must be within the period of 21 days beginning
with the day on which the matter comes to the attention of the local authority.
Power to appoint auditor
35
35
Power to appoint auditor
(1)
Subject to this Chapter, an audit authority may appoint a person to carry out
audit functions in accordance with this Chapter in relation to a relevant entity.
(2)
An appointment under this section is to be for a financial year of the entity.
(3)
An appointment under this section must be made—
40
(a)
before the start of the financial year to which it relates, or
(b)
in the case of an appointment for the first financial year of the entity,
before whichever is the earlier of—