The power under subsection (1) is subject to a duty to secure that, taking one financial year with another, the income from charges under that subsection does not exceed the costs of provision.

The duty under subsection (3) shall apply separately in relation to each kind of service.

In carrying out functions under this section, a best value authority shall have regard to such guidance as the appropriate person may issue.

In subsection (1), “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

The power under subsection (1) includes power to disapply for a particular period.

Power conferred by an order under this section shall only be exercisable through a company within the meaning of Part 5 of the Local Government and Housing Act 1989 (c. 42) (companies in which local authorities have interests).

A best value authority on which power is conferred by an order under this section shall be treated as a local authority for the purposes of Part 5 of the Local Government and Housing Act 1989 if it would not otherwise be such an authority, but only in relation to a body corporate through which it exercises, or proposes to exercise, the power conferred by the order.

In its application by virtue of subsection (5), section 70(1) of the Local Government and Housing Act 1989 (c. 42) (power to make provision about what a company under the control, or subject to the influence of, a local authority does) shall only apply in relation to the doing for a commercial purpose of the thing to which the order under this section relates.

In this section—

• “best value authority” does not include—

  1. a

     a police authority established under section 3 of the Police Act 1996 (c. 16),

  2. b

     the Common Council of the City of London in its capacity as a police authority,

  3. c

     the Metropolitan Police Authority, or

  4. d

     the London Development Agency;

• “ordinary functions”, in relation to a best value authority, means functions of the authority which are not functions under this section.

In exercising such a power as is mentioned in subsection (1), a best value authority shall have regard to such guidance as the appropriate person may issue.

In subsection (1)(b), “company” has the same meaning as in Part 5 of the Local Government and Housing Act 1989.

The Secretary of State may by order amend, repeal, revoke or disapply an enactment (whenever passed or made), other than section 93, which makes in relation to a best value authority provision for, or in connection with, power to charge for the provision of a discretionary service.

The power under subsection (1) or (2) to amend or disapply an enactment includes power to amend or disapply an enactment for a particular period.

An order under subsection (1)(b) may not be used to authorise a best value authority to do in relation to a person anything which it is required to do in relation to him under its ordinary functions.

The National Assembly for Wales may submit proposals to the Secretary of State that the power under subsection (1) or (2) should be exercised in relation to Wales in accordance with those proposals.

Subject to subsection (10), no order shall be made under this section unless a draft of the statutory instrument containing the order has been laid before, and approved by resolution of, each House of Parliament.

In this section—

• “discretionary service”, in relation to a best value authority, means a service which the authority is authorised, but not required, to provide;

• “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30));

• “ordinary functions”, in relation to a best value authority, means functions of the authority which are not functions under section 95.

Where a document relating to proposals is laid before Parliament under subsection (2), no draft of an order under section 97 to give effect to the proposals (with or without modification) shall be laid before Parliament until after the expiry of the period of sixty days beginning with the day on which the document was laid.

In preparing a draft order under section 97 the Secretary of State shall consider any representations made during the period mentioned in subsection (3).

Nothing in this section applies to an order under section 97 which is made only for the purpose mentioned in section 97(10).

The Audit Commission must from time to time produce a report on its findings in relation to the performance of English local authorities in exercising their functions.

A report under subsection (1) must (in particular) categorise each English local authority to which the report relates according to how the authority has performed in exercising its functions.

Where the Secretary of State receives a report produced under subsection (1), he may by order make provision categorising the English local authorities to which the report relates in accordance with their categorisation in the report.

In making an order under subsection (4), the Secretary of State may depart from the categorisation in the report only for the purpose of correcting any clerical or typographical error in the report notified to him by the Audit Commission.

In this section—

• “the Audit Commission” means the Audit Commission for Local Authorities and the National Health Service in England and Wales;

• “English local authority” means—

  1. a

     a county council in England,

  2. b

     a district council,

  3. c

     a London borough council,

  4. d

     the Common Council of the City of London in its capacity as a local authority, F2...

  5. e

     the Council of the Isles of Scilly.

  6. f

     F1a metropolitan fire and civil defence authority,

  7. g

     F1the London Fire and Emergency Planning Authority, or

  8. h

     F1a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.

The powers mentioned in subsection (2) may (in particular) be exercised for making provision in relation to a description of authority framed by reference to English local authorities that from time to time are, by reason of an order under section 99(4), of a particular category.

Schedule 3 (which amends certain of the provisions conferring, or governing the exercise of, those powers and does so for purposes of their exercise in relation to authorities, whether or not English local authorities, to which they apply) has effect.

The Secretary of State may by order amend subsection (2) for the purpose of adding a reference to a power to make provision by order or regulations that is exercisable in relation to all or any English local authorities (whether or not also exercisable in relation to any other person or body).

The Secretary of State may, for the purpose mentioned in subsection (6), by order make provision amending the enactments conferring, or governing the exercise of, a power added by an order under subsection (4) to those mentioned in subsection (2).

An order under subsection (4) or (5) shall not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

In this section “English local authority” has the meaning given by section 99(7).

In subsection (1), references to existing staff, in relation to a contract for the provision of services, are to staff who before the contract is carried out are engaged in the provision of any of the services.

Where the provision of any services under a contract with a best value authority (in Scotland, a relevant authority) for their provision is to cease in circumstances where they are to be provided instead by members of the authority’s staff, the authority shall comply with directions given to it by the appropriate person for the purpose of requiring it to offer employment to staff who, before the services cease to be provided under the contract, are engaged in the provision of any of the services.

The duties under Part 1 of the Local Government Act 1999 (c. 27) (best value) of a best value authority have effect subject to subsections (1) and (3).

The duties under sections 1 and 2 of the Local Government in Scotland Act 2003 (asp 1) (best value) of a relevant authority have effect subject to subsections (1) and (3).

In this section—

• “appropriate person”, in relation to Scotland, means the Scottish Ministers; and

• “relevant authority” means—

  1. a

     a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),

  2. b

     the Strathclyde Passenger Transport Authority, or

  3. c

     any other body to which Part 1 of the Local Government in Scotland Act 2003 (asp 1) (best value and accountability) applies.

In subsection (5)(a)(ii), “intervening contract” means a contract with the authority for the provision, at times after they are provided under the contract with the first contractor and before they are to be provided under a contract with the subsequent contractor, of the services to be provided under the contract with the subsequent contractor.

Any expression used in this section, and in the TUPE regulations, has in this section the meaning that it has in the TUPE regulations.

In this section—

• “appropriate person”, in relation to Scotland, means the Scottish Ministers;

• “local authority”—

  1. a

     in relation to England and Wales, means a local authority for the purposes of section 1(1)(a) of the Local Government Act 1999 (c. 27) (local authorities in England and Wales that are best value authorities), and

  2. b

     in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);

• “the TUPE regulations” means the F6Transfer of Undertakings (Protection of Employment) Regulations 2006, or any regulations replacing those regulations, as from time to time amended.

Where the National Assembly for Wales makes an order under section 104, the Secretary of State may by order make in relation to elections in England such consequential provision, including provision excluding or modifying the application of any enactment, as he thinks fit.

Subsection (5) may be satisfied by consultation before, as well as by consultation after, the commencement of this section.

In subsection (1)—

• “local government area” has the same meaning as in the Representation of the People Act 1983 (c. 2);

• “ordinary election” is to be read in accordance with section 2(7) of the Greater London Authority Act 1999 (c. 29).

In subsection (4) “enactment” includes an enactment comprised in secondary legislation within the meaning of the Interpretation Act 1978 (c. 30).

Where the Secretary of State makes an order under section 103, the National Assembly for Wales may by order make in relation to elections in Wales such consequential provision, including provision excluding or modifying the application of any enactment, as it thinks fit.

Subsection (4) may be satisfied by consultation before, as well as by consultation after, the commencement of this section.

In subsection (1), “local government area” has the same meaning as in the Representation of the People Act 1983 (c. 2).

In subsection (3) “enactment” includes an enactment comprised in secondary legislation within the meaning of the Interpretation Act 1978 (c. 30).

There shall be a body corporate to be known as the Valuation Tribunal Service (referred to in this section, section 106 and Schedules 4 and 5 as “the Service”).

The Service shall provide the Secretary of State with such information, advice and assistance as he may require.

The Service may do anything which it considers is calculated to facilitate, or is conducive or incidental to, the carrying-out of its functions.

The Service shall carry out its functions with respect to valuation tribunals in the manner which it considers best calculated to secure their efficient and independent operation.

The Service shall, in relation to its functions with respect to valuation tribunals, consult the tribunals concerned about the carrying-out of its functions.

Schedule 4 (which makes further provision about the Service) has effect.

On the day appointed by a transfer scheme for the coming into force of the scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.

Schedule 5 (which makes further provision in relation to transfer schemes) has effect.

The Audit Commission Act 1998 (c. 18) is amended as follows.

In section 11(4) (body subject to audit must consider section 8 report or section 11(3) recommendation within four months of its being sent), for “four months” there is substituted “ one month ”.

In section 11(6) (auditor’s power to extend time limit), for “four months” there is substituted “ one month ”.

In section 11A(8) (Mayor and Assembly must consider section 8 report or section 11(3) recommendation within four months of its being sent to the Greater London Authority), for “four months” substitute “ one month ”.

In section 11A(9) (auditor’s power to extend time limit), for “four months” there is substituted “ one month ”.

After section 41 of the Audit Commission Act 1998 there is inserted—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In paragraph 8(2) of Schedule 1 to that Act (categories of function in respect of which Commission must over time balance income and expenditure), after paragraph (c) there is inserted—

After paragraph 8 of that Schedule there is inserted—

In Schedule 1 to the Audit Commission Act 1998 (c. 18) (which makes provision about the Commission’s financial affairs), in paragraph 11(5) (which defines “financial year” for the purposes of the Schedule as the 12 months ending with 31st October in any year) for “31st October” there is substituted “ 31st March ”.

Subsection (1) shall apply in relation to financial years of the Commission beginning after the one in which this section comes into force.

In relation to the financial year of the Commission in which this section comes into force, Schedule 1 to the Audit Commission Act 1998 shall have effect as if the period referred to in paragraph 11(5) were a period beginning with the 1st November on which the year began and ending with the 31st March 17 months later.

In this section, “the Commission” means the Audit Commission for Local Authorities and the National Health Service in England and Wales.

In Chapter 1 of Part 3 of the Local Government Act 2000 (conduct of local government members), after section 54 there is inserted—

In Chapter 5 of that Part (conduct in local government: supplementary), after section 82 there is inserted—

In section 5 of the Local Government and Housing Act 1989 (c. 42) (designation etc. of monitoring officers), after subsection (7) there is inserted—

In paragraph 4(1) of Schedule 7 to the Political Parties, Elections and Referendums Act 2000 (c. 41) (matters that are not donations), after paragraph (a) there is inserted—

In paragraph 4 of that Schedule, after sub-paragraph (3) there is inserted—

Subsections (1) and (2) shall be deemed to have come into force on 16th February 2001.

The Electoral Commission shall remove from the register kept by it under section 69 of the Political Parties, Elections and Referendums Act 2000 (c. 41) any entry that they would not have been required to make had subsections (1) and (2) actually been in force throughout the period beginning with 16th February 2001 and ending with the passing of this Act.

In conducting a poll under this section, a local authority must have regard to any guidance issued by the appropriate person on facilitating participation in a poll under this section by such of those polled as are disabled people.

This section is without prejudice to any powers of a local authority exercisable otherwise than by virtue of this section.

The appropriate person may by order amend or repeal an enactment relating to a local authority if he considers it appropriate to do so in the light of generally accepted accounting practice as it applies to local government.

It does not matter for the purposes of subsection (1) whether the enactment itself relates to the accounts of a local authority.

No order under this section shall be made by the Secretary of State unless a draft of the statutory instrument containing the order has been laid before, and approved by a resolution of, each House of Parliament.

In this section—

• “enactment” includes an enactment contained in this Act or any Act passed after this Act;

• “local authority” means—

  1. a

     a body which is a local authority for the purposes of Part 1, or

  2. b

     a parish council, a community council or charter trustees.

In section 137 of the Local Government Act 1972 (c. 70) (which enables local authorities to incur expenditure for certain purposes not otherwise authorised), in subsection (4)(a) (which makes provision in connection with the calculation of the maximum amount of such expenditure in any financial year), for “subsection (4AA) below” there is substituted “ Schedule 12B to this Act ”.

After Schedule 12A to that Act there is inserted—

Section 15 of the Local Government (Miscellaneous Provisions) Act 1982 (c. 30) (regulation of tattooing, ear-piercing and electrolysis businesses) is amended as follows.

In subsection (1) (requirement for person carrying on business to be registered), for paragraph (b) (ear-piercing) there is substituted—

(and in the side-note for “ear-piercing” there is substituted “ semi-permanent skin-colouring, cosmetic piercing ”).

In subsection (5) (local authority may not require particulars about individuals whose ears have been pierced etc.), for “or whose ears he has pierced” there is substituted “ , whose bodies he has pierced or on whom he has carried out semi-permanent skin-colouring ”.

After subsection (8) there is inserted—

Schedule 6 (which makes provision about transition) has effect.