Local Government Act 1985

56 (1) Subject to the following provisions of this paragraph— E+W

(a) any agreement made between the Secretary of State or the Minister of Transport and a metropolitan county council under subsection (1) or (5) of section 6 of the Highways Act 1980, and

(b) any arrangements made by a metropolitan county council with a district council under subsection (6) of that section,

shall, if subsisting immediately before the abolition date, cease to have effect on that date; and where any such agreement ceases to have effect under this sub-paragraph anything done before the abolition date by or in relation to the metropolitan county council in respect of the agreement shall have effect as if done by or in relation to the Secretary of State.

(2) Subject to sub-paragraph (4) below, the Secretary of State may by order provide that any such agreement specified in the order shall have effect as from the abolition date as an agreement between the Secretary of State and a metropolitan district council or non-metropolitan county council specified in the order (a “successor council”) or as two or more separate agreements, each being between the Secretary of State and a successor council.

(3) An order under this paragraph in respect of an agreement may—

(a) provide that anything done by or in relation to the metropolitan county council in respect of the agreement shall have effect as if done by or in relation to any successor council or councils;

(b) modify or exclude any term of the agreement in relation to any successor council or councils;

(c) make provision in respect of any arrangements made by the metropolitan county council under section 6(6) of the said Act of 1980 in relation to the agreement;

(d) include such other incidental, consequential, transitional or supplementary provision as appear to the Secretary of State to be necessary or expedient.

(4) All rights of a metropolitan county council arising from or in connection with any such agreement as is mentioned in sub-paragraph (1) above to receive payments from the Secretary of State and all liabilities of such a council arising as aforesaid to make payments to him (being rights and liabilities attributable to anything done or omitted under or in respect of any such agreement before the abolition date) shall be transferred on that date to the appropriate residuary body; and accordingly as from that date any such agreement shall have effect as respects such rights and liabilities as an agreement between the Secretary of State and the appropriate residuary body.