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Statutory Instruments

1994 No. 2297

LOCAL GOVERNMENT, ENGLAND AND WALES

The Local Government Act 1988 (Competition) (Housing Management) (England) Regulations 1994

Made

30th August 1994

Laid before Parliament

13th September 1994

Coming into force

4th October 1994

The Secretary of State, in exercise of the powers conferred on him by sections 6(3) and 15(6) and (7) of the Local Government Act 1988(1), and of all other powers enabling him in that behalf, hereby makes the following Regulations:

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Local Government Act 1988 (Competition) (Housing Management) (England) Regulations 1994 and shall come into force on 4th October 1994.

(2) These Regulations apply to district councils in England, London borough councils, the Common Council of the City of London in its capacity as local authority and the Council of the Isles of Scilly.

Interpretation

2.  In these Regulations—

“the Act” means the Local Government Act 1988;

“the permitted period” means a period of five years beginning on the date on which work was awarded;

“the specified proportion” means an amount equal to the product of the following formula—

where—

T

=

the total annual cost (including overheads) to an authority to which these Regulations apply of the specified work,

A

=

an amount, expressed as a sum of money, produced by calculating the percentage of T shown in the Table in Part I of the Schedule to these Regulations against the appropriate Band for the financial year in question, and the authorities are divided into Bands in accordance with Part II of the Schedule,

B

=

for the permitted period, an amount equal to the total annual cost (including overheads) of specified work which is being carried out by an authority to which these Regulations apply following voluntary competitive tendering;

“specified work” means work of any description falling within the defined activity mentioned in section 2(2)(h) of the Act (housing management) other than work carried out under a works contract in relation to which the authority in question were the bidding authority;

“voluntary competitive tendering” means the awarding of work, before 1st September 1994, following a competitive process in the course of which at least three persons who are not authorities to which these Regulations apply were invited to tender for that work.

Application of section 6

3.  Section 6 of the Act shall apply to the specified proportion of any specified work if it is proposed to be carried out on or after 1st April 1996 by an authority to which these Regulations apply.

David Curry

Minister of State,

Department of the Environment

30th August 1994

Regulation 2

SCHEDULE

PART ITABLE OF BANDS

Financial year beginning 1st April 1996Financial year beginning 1st April 1997Financial year beginning 1st April 1998 and all subsequent financial years
Band I authorities5%5%5%
Band II authorities100%5%5%
Band III authorities40%5%5%
Band IV authorities100%40%5%
Band V authorities60%30%5%

PART IIBANDING OF LOCAL AUTHORITIES TO WHICH THESE REGULATIONS APPLY

1.  A Band I authority is any authority to which these Regulations apply which is not a Band II, III, IV or V authority.

2.  The Common Council of the City of London and the councils of the following areas are Band II authorities:

3.  The councils of the following areas are Band III authorities:

4.  The councils of the following areas are Band IV authorities:

5.  The councils of the following areas are Band V authorities:

Explanatory Note

(This note is not part of the Regulations)

Section 6(3) of the Local Government Act 1988 enables the Secretarty of State to require that an authority mentioned in section 1(1) of the Act (a defined authority) may only carry out functional work falling within an activity listed in section 2(2) of the Act (a defined activity) after subjecting the work to competition.

These Regulations require the defined authorities mentioned in article 1(2) to subject work falling within the activity of housing management to competition. The authorities are placed in one of five bands, and the proportion of work which has to be subjected to competition in any financial year is dependent upon the band in which the authority falls and for a limited period the amount of work, if any, which the authority has voluntarily subjected to competition.

(1)

1988 c. 9. Section 6 is amended by paragraph 12 of Schedule 1 to the Local Government Act 1992 (c. 19).