The Local Government Changes For England (Property Transfer and Transitional Payments) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision of general application for the purposes or in consequence of orders made under section 17 of the Local Government Act 1992 (“section 17 order”) which give effect to structural or boundary changes recommended by the Local Government Commission for England in respect of local authorities.

Part II of the Regulations makes provision for the transfer of the property, rights and liabilities of local authorities which are subject to such changes.

Regulation 5 requires affected authorities to use their best endeavours to make agreements for the purposes of the vesting of property, rights and liabilities under regulations 6 or 8. Authorities are also required to use their best endeavours to agree on the identification of land which is surplus to requirements (“surplus land”).

Regulations 6 and 7 make comprehensive provision for the vesting of the property, rights and liabilities of a local authority which is abolished by a section 17 order.

Regulation 8 makes provision for the vesting, in accordance with any agreement made under regulation 5, of the property, rights or liabilities of a local authority which is subject to a structural or boundary change but which is not abolished by a section 17 order. The regulation gives the authorities concerned in such a case an opportunity, in the six months following the making of the change, to make further agreements for the vesting or retention of property, rights or liabilities which were not identified in an agreement under regulation 5. If they cannot agree, the matter may be referred to arbitration under regulation 19.

Regulations 5 to 8 do not apply to property held subject to charitable trusts. Regulation 9 makes provision for the vesting of such property and rights or liabilities in respect of it.

Regulation 10 makes provision for the disposal of surplus land by the authority in whom it is vested (“the custodian authority”) and for the distribution of sale proceeds. It also makes provision for the recovery by the custodian authority of its expenditure in respect of the management of the land or its disposal.

Part III of the Regulations contains provision for the making of calculations at specified times after the making of a change in accordance with the formulae set out in the Schedule to the Regulations. The purpose of the calculation is to determine the payments to be made between the affected authorities taking account of financial reserves, provisions and capital receipts and transferred property, rights and liabilities.

Regulation 19 makes provision for disputes arising under the Regulations to be referred to a person appointed by agreement between the parties or, failing agreement, by the Secretary of State. Regulation 20 contains additional provision in respect of disputes relating to the calculation of transitional payments.