Local Government and Public Involvement in Health Act 2007

Local Government and Public Involvement in Health Act 2007

2007 CHAPTER 28

Commentary on Sections

Part 1: Structural and Boundary Change in England

Supplementary

Chapter 2: Control of Disposals Etc

Section 24: Authorities dissolved by orders: control of disposals, contracts and reserves

94. This section provides that the Secretary of State may make a direction requiring relevant authorities to obtain consent, with effect from a date specified by the Secretary of State, from the person(s) specified in the direction before they can:

• dispose of land if the consideration for it exceeds £100,000;

• enter into a capital contract where the authority concerned would be required to pay consideration of more that £1,000,000 or where the contract includes a term allowing the consideration to be varied;

• enter into any non-capital contract where the consideration exceeds £100,000 and the contract extends beyond a date specified in the direction, or under the terms of the contract, the period of the contract may be extended beyond that date;

• include an amount of reserves in the calculation of its budget requirement for council tax purposes.

95. Subsection (2) defines a “relevant authority” as one which is to be dissolved by order made under section 7 or 10 and which is specified or falls within a description of authority specified in the direction.

96. Subsection (3) defines “capital contract” and “non-capital contract”. A capital contract means a contract in relation to which the consideration payable by the authority would be capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003.

97. Subsection (4) provides that the person(s) whose consent is required as specified in the direction, may be the Secretary of State or such authority or other person as he thinks appropriate. He may identify a different person for different matters that require consent or in relation to different authorities or types of authorities.