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 6 — Economic prosperity boards and combined authorities
65

Combined authorities and their areas
100
Combined authorities and their areas
(1)
The Secretary of State may by order establish as a body corporate a combined
authority for an area that meets the following conditions.
(2)
Condition A is that the area consists of the whole of two or more local
5
government areas in England.
(3)
Condition B is that no part of the area is separated from the rest of it by one or
more local government areas that are not within the area.
(4)
Condition C is that there is no local government area that is surrounded by
local government areas that are within the area but that is not itself within the
10
area.
(5)
Condition D is that no part of the area forms part of—
(a)
the area of another combined authority,
(b)
the area of an EPB, or
(c)
an integrated transport area.
15
(6)
Condition E is that each local government area that forms part of the area was
included in a scheme prepared and published under section 106.
(7)
An order under this section must specify the name by which the combined
authority is to be known.
101
Constitution and functions: transport
20
(1)
The Secretary of State may by order make in relation to a combined authority
any provision that may be made in relation to an Integrated Transport
Authority (an “ITA”) under the following provisions of the Local Transport
Act 2008 (c. 26)—
(a)
section 84 (constitutional arrangements);
25
(b)
section 86 (delegation of functions of the Secretary of State);
(c)
section 87 (delegation of local authority functions);
(d)
section 88 (conferral of a power to direct).
(2)
Section 85 of that Act (provision about membership of an ITA) applies to—
(a)
an order under subsection (1)(a) of this section, and
30
(b)
the combined authority to whom that order applies,

as it applies to an order under section 84 of that Act and the ITA to whom that
order applies.
(3)
The following provisions of that Act apply in relation to a combined authority
on whom functions of a kind described in section 88 of that Act are conferred
35
as they apply in relation to an ITA on whom such functions are conferred—
(a)
section 88(10) (provisions about directions);
(b)
section 89(2) and (3) (power to remedy contravention of direction).
(4)
Section 97 of that Act (change of name of ITA) applies to a combined authority
as it applies to an ITA.
40
(5)
The Secretary of State may by order transfer functions of an ITA to a combined
authority.

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
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(6)
An order under subsection (5) may only be made in relation to functions
exercisable by the ITA in relation to an area that becomes, or becomes part of,
the combined authority’s area by virtue of an order under this Part.
(7)
The Secretary of State may by order provide for any function that is conferred
or imposed on a Passenger Transport Executive by any enactment (whenever
5
passed or made) to be exercisable by a combined authority or the executive
body of a combined authority in relation to the combined authority’s area.
(8)
An order under subsection (7) may make provision for any function that—
(a)
is conferred or imposed on an ITA by any enactment (whenever passed
or made), and
10
(b)
relates to the functions of a Passenger Transport Executive,

to be exercisable by a combined authority in relation to the combined
authority’s area.
102
Constitution and functions: economic development and regeneration
(1)
The Secretary of State may by order make in relation to a combined authority
15
any provision that may be made in relation to an EPB under section 88 (exercise
of local authority functions).
(2)
Subsection (5) of section 88 (duty to perform functions with a view to
promoting economic development and regeneration) applies to the exercise of
functions by a combined authority by virtue of subsection (1) of this section as
20
it applies to the exercise of functions by an EPB by virtue of that section.
(3)
The Secretary of State may by order make in relation to a combined authority
any provision that may be made in relation to an EPB under section 89
(funding).
(4)
An order under subsection (3) may make such provision only in relation to the
25
costs of a combined authority that are reasonably attributable to the exercise of
its functions relating to economic development and regeneration.
103
Changes to boundaries of a combined authority’s area
(1)
The Secretary of State may by order change the boundaries of a combined
authority’s area by—
30
(a)
adding a local government area to an existing area of a combined
authority, or
(b)
removing a local government area from an existing area of a combined
authority.
(2)
An order may be made under this section only if—
35
(a)
the area to be created by the order meets conditions A to D in section
100, and
(b)
each council to whom this subsection applies consents to the making of
the order.
(3)
Subsection (2) applies to—
40
(a)
a county council whose area, or part of whose area, is to be added to or
removed from the existing area of the combined authority;
(b)
a district council whose area is to be added to or removed from the
existing area of the combined authority.

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
67

(4)
Where by virtue of an order an area ceases to be part of the area of a combined
authority, the order—
(a)
must make provision for designating an authority to be a local
transport authority for the area for the purposes of section 108(4) of the
Transport Act 2000 (c. 38), and
5
(b)
may transfer functions to that authority from the combined authority
that was formerly the local transport authority.
(5)
Provision made by virtue of subsection (4) may designate different authorities
for different parts of the area.
(6)
The reference in subsection (4)(a) to an authority does not include an ITA.
10
(7)
Subsection (4) does not apply if the area becomes part of the integrated
transport area of an ITA by virtue of an order under section 78 or 90 of the Local
Transport Act 2008 (c. 26).
104
Dissolution of a combined authority’s area
(1)
The Secretary of State may by order—
15
(a)
dissolve a combined authority’s area, and
(b)
abolish the combined authority for that area.
(2)
An order may be made under this section only if a majority of the councils to
whom this subsection applies consent to the making of the order.
(3)
Subsection (2) applies to—
20
(a)
a county council whose area, or part of whose area, is within the
combined authority’s area;
(b)
a unitary district council whose area is within the combined authority’s
area.
(4)
The order—
25
(a)
must make provision for designating an authority to be a local
transport authority for the area that was previously the combined
authority’s area for the purposes of section 108(4) of the Transport Act
2000, and
(b)
may transfer functions to that authority from the combined authority
30
that was formerly the local transport authority.
(5)
Provision made by virtue of subsection (4) may designate different authorities
for different parts of the area.
(6)
The reference in subsection (4)(a) to an authority does not include an ITA.
(7)
Subsection (4) does not apply to a territory or part of a territory that becomes
35
the integrated transport area or part of the integrated transport area of an ITA
by virtue of an order under section 78 or 90 of the Local Transport Act 2008.
Requirements in connection with orders about combined authorities
105
Review by authorities: new combined authority
(1)
Any two or more of the authorities to whom this section applies may
40
undertake a review of—

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
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(a)
the effectiveness and efficiency of transport within the area covered by
the review (“the review area”), and
(b)
the effectiveness and efficiency of arrangements to promote economic
development and regeneration within the review area.
(2)
This section applies to—
5
(a)
a county council in England;
(b)
a district council in England;
(c)
an EPB;
(d)
an ITA.
(3)
Where the review is being undertaken by a county council, the review area
10
must include—
(a)
the areas of one or more district councils that are within the area of the
county council, or
(b)
if there are no such areas, the area of the county council.
(4)
Where the review is being undertaken by a district council, the review area
15
must include the area of the district council.
(5)
Where the review is being undertaken by an EPB, the review area must include
one or more local government areas within the EPB’s area.
(6)
Where the review is being undertaken by an ITA, the review area must include
one or more local government areas within the ITA’s integrated transport area.
20
(7)
The review area may also include the area of any county council or district
council in England that does not constitute or fall within the area of an
authority undertaking the review.
106
Preparation and publication of scheme: new combined authority
(1)
This section applies where two or more of the authorities that have undertaken
25
a review under section 105 conclude that the establishment of a combined
authority for an area would be likely to improve—
(a)
the exercise of statutory functions relating to transport in the area,
(b)
the effectiveness and efficiency of transport in the area,
(c)
the exercise of statutory functions relating to economic development
30
and regeneration in the area, and
(d)
economic conditions in the area.
(2)
The authorities may prepare and publish a scheme for the establishment of a
combined authority for the area (“the scheme area”).
(3)
Subject as follows, the scheme area—
35
(a)
must consist of or include the whole or any part of the review area,
(b)
may include one or more other local government areas, and
(c)
must meet conditions A to C in section 100.
(4)
The scheme area may not include a local government area unless each
appropriate authority for that area—
40
(a)
participates in the preparation of the scheme, or
(b)
consents to its inclusion in the scheme area.
(5)
For this purpose—

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
69

(a)
a county council is an appropriate authority for a local government area
that is or forms part of the area of that county council;
(b)
a district council is an appropriate authority for a local government
area that is the area of that district council.
107
Requirements in connection with establishment of combined authority
5
(1)
The Secretary of State may make an order establishing a combined authority
for an area only if, having regard to a scheme prepared and published under
section 106, the Secretary of State considers that to do so is likely to improve—
(a)
the exercise of statutory functions relating to transport in the area,
(b)
the effectiveness and efficiency of transport in the area,
10
(c)
the exercise of statutory functions relating to economic development
and regeneration in the area, and
(d)
economic conditions in the area.
(2)
Before making the order, the Secretary of State must consult—
(a)
each appropriate authority, and
15
(b)
such other persons (if any) as the Secretary of State considers
appropriate.
(3)
For the purposes of this section—
(a)
a county council is an appropriate authority if the area of the county
council, or part of that area, is within the area for which the combined
20
authority is to be established;
(b)
a district council is an appropriate authority if the area of the district
council is within the area for which the combined authority is to be
established;
(c)
an EPB is an appropriate authority if the EPB’s area, or part of its area,
25
is within the area for which the combined authority is to be established;
(d)
an ITA is an appropriate authority if the ITA’s integrated transport
area, or part of that area, is within the area for which the combined
authority is to be established.
(4)
In making the order, the Secretary of State must have regard to the need—
30
(a)
to reflect the identities and interests of local communities, and
(b)
to secure effective and convenient local government.
108
Review by authorities: existing combined authority
(1)
Any one or more of the authorities to whom this section applies may
undertake, in relation to an existing combined authority, a review of one or
35
more combined matters.
(2)
This section applies to—
(a)
a combined authority;
(b)
a county council whose area, or part of whose area, is within an area of
a combined authority or could be within a proposed area of a combined
40
authority;
(c)
a district council whose area is within an area of a combined authority
or could be within a proposed area of a combined authority.
(3)
For the purposes of this section a “combined matter” is—

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
70

(a)
a matter in relation to which an order may be made under any of
sections 101 to 104;
(b)
in relation to the combined authority or any executive body of the
combined authority, where that body exists at the time of the review, a
matter concerning the combined authority or the executive body that
5
the combined authority has power to determine.
(4)
The review must relate to one or more areas of a combined authority or
proposed areas of a combined authority.
(5)
In this section and section 109 a “proposed area of a combined authority”
means an area of a combined authority that may be created by an order under
10
section 103 (changes to boundaries of a combined authority’s area).
109
Preparation and publication of scheme: existing combined authority
(1)
This section applies where one or more of the authorities that have undertaken
a review under section 108 conclude that the exercise of the power to make an
order under any one or more of sections 101 to 104 would be likely to
15
improve—
(a)
the exercise of statutory functions relating to transport in an area of a
combined authority or a proposed area of a combined authority,
(b)
the effectiveness and efficiency of transport in such an area,
(c)
the exercise of statutory functions relating to economic development
20
and regeneration in such an area, or
(d)
economic conditions in such an area.
(2)
The authorities may prepare and publish a scheme relating to the exercise of
the power or powers in question.
(3)
The reference in subsection (1) to an area of a combined authority includes an
25
area that would cease to be an area of a combined authority if an order were
made in relation to that area under section 104 (dissolution of a combined
authority’s area).
110
Requirements in connection with changes to existing combined arrangements
(1)
The Secretary of State may make an order under any of sections 101 to 104 in
30
relation to an existing combined authority only if, having regard to a scheme
prepared and published under section 109, the Secretary of State considers that
the making of the order is likely to improve—
(a)
the exercise of statutory functions relating to transport in the area or
areas to which the order relates,
35
(b)
the effectiveness and efficiency of transport in that area or those areas,
(c)
the exercise of statutory functions relating to economic development
and regeneration in that area or those areas, or
(d)
economic conditions in that area or those areas.
(2)
Before making the order, the Secretary of State must consult—
40
(a)
such of the authorities mentioned in section 108(2) , and
(b)
such other persons (if any),

as the Secretary of State considers appropriate.
(3)
In making the order, the Secretary of State must have regard to the need—
(a)
to reflect the identities and interests of local communities, and
45

Local Democracy, Economic Development and Construction Bill [HL]
Part 6 — Economic prosperity boards and combined authorities
71

(b)
to secure effective and convenient local government.
Supplementary
111
Incidental etc provision
(1)
The Secretary of State may by order make incidental, consequential,
transitional or supplementary provision for the purposes of, or in consequence
5
of, an order under this Part or for giving full effect to such an order.
(2)
An order under this section may include provision amending, applying (with
or without modifications), disapplying, repealing or revoking any enactment,
whenever passed or made.
(3)
The provision that may be included by virtue of subsection (2) includes
10
provision applying, with modifications, or disapplying any enactment
amended by Schedule 6.
(4)
An order under this section may not include provision amending or
disapplying sections 15 to 17 of, and Schedule 1 to, the Local Government and
Housing Act 1989 (c. 42) (political balance on local authority committees etc).
15
112
Transfer of property, rights and liabilities
(1)
The Secretary of State may by order make provision for the transfer of
property, rights and liabilities for the purposes of, or in consequence of, an
order under this Part or for giving full effect to such an order.
(2)
Property, rights and liabilities may be transferred by—
20
(a)
the order,
(b)
a scheme made by the Secretary of State under the order, or
(c)
a scheme required to be made under the order by a person other than
the Secretary of State.
(3)
A transfer by virtue of this section may have effect—
25
(a)
whether or not the property, rights and liabilities would otherwise be
capable of being transferred;
(b)
without any instrument or formality being required.
(4)
The rights and liabilities which may be transferred by virtue of this section
include rights and liabilities in relation to a contract of employment.
30
(5)
The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246) apply to the transfer by virtue of this section (whether or not the
transfer is a relevant transfer for the purposes of those regulations).
(6)
An order under this section or a scheme made under it may define the
property, rights and liabilities to be transferred by specifying or describing
35
them.
(7)
Provision for the transfer of property, rights and liabilities made by virtue of
this section may include provision—
(a)
for the creation or imposition by the Secretary of State of new rights or
liabilities in respect of anything transferred;
40
(b)
for the shared ownership or use of any property or facilities;
(c)
for the management or custody of transferred property;