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Local Government and Housing Act 1989 (c. 42) (c. 42)

(The document as of February, 2008)

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Local Government and Housing Act 1989 (c. 42)

1989 CHAPTER 42

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    Local Authority Members, Officers, Staff and Committees etc.

    1. Political restriction of officers and staff

      1. 1. Disqualification and political restriction of certain officers and staff.

      2. 2. Politically restricted posts.

      3. 3. Grant and supervision of exemptions from political restriction.

    2. Duties of particular officers

      1. 4. Designation and reports of head of paid service.

      2. 5. Designation and reports of monitoring officer.

      3. 6. Officer responsible for financial administration of certain authorities.

    3. Appointment and management etc. of staff

      1. 7. All staff to be appointed on merit.

      2. 8. Duty to adopt standing orders with respect to staff.

      3. 9. Assistants for political groups.

      4. 10. Limit on paid leave for local authority duties.

      5. 11. Confidentiality of staff records.

      6. 12. Conflict of interest in staff negotiations.

    4. Voting rights of members of certain committees

      1. 13. Voting rights of members of certain committees: England and Wales.

      2. 14. Voting rights of members of certain committees: Scotland.

    5. Political balance on committees etc.

      1. 15. Duty to allocate seats to political groups.

      2. 16. Duty to give effect to allocations.

      3. 17. Exceptions to and extensions of political balance requirements.

    6. Allowances

      1. 18. Schemes for basic, attendance and special responsibility allowances for local authority members.

    7. Members' interests

      1. 19. Members' interests.

    8. Duty to adopt certain procedural standing orders

      1. 20. Duty to adopt certain procedural standing orders.

    9. Interpretation of Part I

      1. 21. Interpretation of Part I.

  2. Part II

    Local Government Administration

    1. 22. Advisory Commissioners.

    2. 23. Advice and guidance by Commissions for Local Administration and Scottish Commissioner.

    3. 24. Expenses of Commissions for Local Administration.

    4. 25. Annual reports of Commissions: new provisions.

    5. 26. Implementation of recommendations of Commissioners for Local Administration in England and Wales.

    6. 27. Implementation of recommendations of Commissioner for Local Administration in Scotland.

    7. 28. Consideration of adverse reports: England and Wales.

    8. 29. Consideration of adverse reports: Scotland.

    9. 30. Declaration of acceptance of office of councillor etc.

    10. 31. National Code of Local Government Conduct.

    11. 32. Anonymity in reports on investigations.

  3. Part III

    Economic Development and Discretionary Expenditure by Local Authorities

    1. 33. Promotion of economic development.

    2. 34. Restrictions on promotion of economic development.

    3. 35. Guidance and consultation about promotion of economic development.

    4. 36. Amendments of existing power to incur discretionary expenditure.

    5. 37. Conditions of provision of financial assistance.

    6. 38. Information etc. on individuals' rights.

  4. Part IV

    Revenue Accounts and Capital Finance of Local Authorities

    1. Introductory

      1. 39. Application of Part IV.

      2. 40. Capital purposes.

    2. Charge of expenditure to revenue accounts

      1. 41. Expenditure to be charged to revenue account.

      2. 42. Expenditure excluded from section 41(1).

    3. Borrowing

      1. 43. Borrowing powers.

      2. 44. Borrowing limits etc.

      3. 45. The authority's own limits.

      4. 46. Register of loan instruments and certain existing loans.

      5. 47. Security for money borrowed etc.

    4. Credit arrangements

      1. 48. Credit arrangements.

      2. 49. Initial and subsequent cost of credit arrangements.

      3. 50. Limits on powers to enter into credit arrangements.

      4. 51. Variation of credit arrangements.

      5. 52. Transitional credit arrangements.

    5. Credit approvals

      1. 53. Basic credit approvals.

      2. 54. Supplementary credit approvals.

      3. 55. Criteria for issuing credit approvals.

      4. 56. Use of credit approvals by local authorities.

      5. 57. Effect of certain capital grants on credit approvals.

    6. Capital receipts

      1. 58. Capital receipts.

      2. 59. The reserved part of capital receipts.

      3. 60. The usable balance of capital receipts.

      4. 61. Capital receipts not wholly in money paid to the authority.

    7. Aggregate credit limit

      1. 62. Aggregate credit limit.

    8. Amounts set aside to meet credit liabilities

      1. 63. Duty to set certain amounts aside as provision to meet credit liabilities.

      2. 64. Use of amounts set aside to meet credit liabilities.

    9. Supplementary

      1. 65. Information.

      2. 66. Interpretation of Part IV.

  5. Part V

    Companies in which Local Authorities have interests

    1. 67. Application of, and orders under, Part V.

    2. 68. Companies controlled by local authorities and arm's length companies.

    3. 69. Companies subject to local authority influence.

    4. 70. Requirements for companies under control or subject to influence of local authorities.

    5. 71. Control of minority interests etc. in certain companies.

    6. 72. Trusts influenced by local authorities.

    7. 73. Authorities acting jointly and by committees.

  6. Part VI

    Housing Finance

    1. Housing accounts

      1. 74. Duty to keep Housing Revenue Account.

      2. 75. The keeping of the Housing Revenue Account.

      3. 76. Duty to prevent debit balance on Housing Revenue Account.

      4. 77. Power to keep Housing Repairs Account.

      5. 78. Directions to secure proper accounting.

    2. Housing subsidies

      1. 79. Housing Revenue Account subsidy.

      2. 80. Calculation of Housing Revenue Account subsidy.

      3. 81. Consequential adjustment of rent rebate subsidy.

      4. 82. Residual debt subsidy for year 1989–90.

      5. 83. Calculation of residual debt subsidy.

      6. 84. Adjustment of housing subsidy for year 1989-90.

    3. Supplementary

      1. 85. Power to obtain information.

      2. 86. Recoupment of subsidy in certain cases.

      3. 87. Determinations and directions.

      4. 88. Construction and application of Part VI.

  7. Part VII

    Renewal Areas

    1. 89. Declaration of renewal area.

    2. 90. Conditions for declaration of renewal area.

    3. 91. Steps to be taken after declaration of renewal area.

    4. 92. Duty to publish information.

    5. 93. General powers of local housing authority.

    6. 94. Power to apply for orders extinguishing right to use vehicles on highway.

    7. 95. Exclusion of land from, or termination of, renewal area.

    8. 96. Contributions by the Secretary of State.

    9. 97. Powers of entry and penalty for obstruction.

    10. 98. Part VIII of Housing Act 1985.

    11. 99. Directions and guidance.

    12. 100. Interpretation of Part VII.

  8. Part VIII

    Grants Towards Cost of Improvements and Repairs etc.

    1. Introductory

      1. 101. Grants for improvements and repairs.

      2. 102. Applications for grants.

    2. Preliminary conditions

      1. 103. The age of the property.

      2. 104. The interest of the applicant in the property.

      3. 105. Common parts grants: preliminary conditions.

      4. 106. Certificate as to future occupation, etc.

    3. Restrictions on grant aid

      1. 107. Certain dwellings and works excluded from grant aid.

      2. 108. Restriction on grants for works already begun.

      3. 109. Owner-occupiers and tenants.

      4. 110. Landlords.

      5. 111. Tenants' common parts applications.

    4. Approvals, notification and payment

      1. 112. Duty to approve applications to render certain dwellings fit for human habitation.

      2. 113. Duty to approve applications arising out of certain statutory notices.

      3. 114. Approval of applications to provide certain facilities for the disabled.

      4. 115. Discretionary approval of certain applications.

      5. 116. Approval and refusal of applications.

      6. 117. Payment of grants.

    5. Conditions of grants and repayments

      1. 118. Conditions as to completion of works.

      2. 119. Condition as to availability for letting.

      3. 120. Condition requiring repayment of grant in case of certain disposals where certificate of intended letting given.

      4. 121. Condition requiring repayment of grant in case of certain disposals where owner-occupation certificate given.

      5. 122. Conditions relating to HMO grant.

      6. 123. Condition requiring repayment of grant on certain disposals in case of landlord's common parts application.

      7. 124. Meaning of relevant disposal and exempt disposal for the purposes of sections 120 to 123.

      8. 125. Repayment of grant.

      9. 126. Renovation grants relating to two or more dwellings.

    6. Group repair schemes

      1. 127. Group repair schemes and persons eligible to participate.

      2. 128. Qualifying buildings and external works, etc.

      3. 129. Contributions by participants and limitations on works.

      4. 130. Payment of balance of costs in case of certain disposals.

    7. Minor works

      1. 131. Assistance for provision of minor works to dwellings.

    8. Supplementary provisions

      1. 132. Contributions by the Secretary of State.

      2. 133. Persons entitled to grants.

      3. 134. Cases in which grants may be re-calculated, withheld or repaid.

      4. 135. Power of local housing authority to carry out works which would attract grant.

      5. 136. Parsonages, charities etc.

      6. 137. Orders and regulations.

      7. 138. Interpretation of Part VIII.

  9. Part IX

    Miscellaneous and General

    1. Local Government Finance Act 1988, local finance (Scotland) and block grants

      1. 139. Local Government Finance Act 1988: amendments.

      2. 140. Scottish non-domestic rates: interim provisions.

      3. 141. Scottish non-domestic rate.

      4. 142. Powers to vary incidence of standard community charge: Scotland.

      5. 143. Reduced liability for personal community charges: Scotland.

      6. 144. Community charge grants: Scotland.

      7. 145. Amendment of Abolition of Domestic Rates Etc. (Scotland) Act 1987 and other enactments: Scotland.

      8. 146. Special grants.

      9. 147. Adjustment of block grant.

      10. 148. Rate support grant, 1985/86.

      11. 149. Statutory references to rating.

    2. Charges by certain authorities

      1. 150. Power to allow charges.

      2. 151. Power to amend provisions about charges.

      3. 152. Interpretation, consultation and commencement of ss. 150 and 151.

      4. 153. Charges: temporary traffic signs.

      5. 154. Charges: library services.

    3. Miscellaneous local government provisions

      1. 155. Emergency financial assistance to local authorities.

      2. 156. Contingency planning and co-ordination in respect of emergencies or disasters.

      3. 157. Commutation of, and interest on, periodic payments of grants etc.

      4. 158. Electronic transfer of documents.

      5. 159. Prevention of continuance or recurrence of default of local authority: Scotland.

      6. 160. Welsh language names for local authorities.

    4. Miscellaneous housing provisions

      1. 161. Housing authorities not required to keep a housing stock.

      2. 162. Determination of rents.

      3. 163. Exchanges between secure and assured tenants.

      4. 164. Exception to the right to buy in case of certain dwelling-houses for persons of pensionable age.

      5. 165. Unfit housing etc.

      6. 166. Amendments relating to defective housing.

      7. 167. Reports to tenants etc. on local housing authority functions.

      8. 168. Contributions towards costs of housing mobility arrangements.

      9. 169. Powers of local authorities and Secretary of State as respects services etc. for owners and occupiers of houses for work on them.

      10. 170. Powers of local authorities and Secretary of State as respects services, etc., for owners and occupiers of houses for work on them: Scotland.

      11. 171. Winding up of home purchase assistance scheme.

      12. 172. Transfer of new town housing stock.

      13. 173. Consent required for subsequent disposals.

      14. 174. Payment of disposal cost by instalments.

      15. 175. Repeal of the Town Development Act 1952.

      16. 176. Amendment of definition of occupation for purposes of purchase of house by secure tenant: Scotland.

      17. 177. Sale to secure tenants of houses provided for persons of pensionable age: Scotland.

      18. 178. Application of secure tenant's right to buy to cases where landlord is lessee: Scotland.

      19. 179. Amendment of powers of Scottish Homes to dispose of land.

      20. 180. Race relations: codes of practice in housing field.

      21. 181. Duty of landlord to inform secure tenant seeking to buy house about changes in law: Scotland.

    5. Other provisions

      1. 182. Power to monitor activities of registered housing associations.

      2. 183. Extension of powers of Housing Corporation and Housing for Wales to give financial assistance.

      3. 184. Extension of functions of Audit Commission.

      4. 185. Publication of reports of Controller of Audit: Scotland.

    1. Schedule 1

      Political Balance on Local Authority Committees etc.

    2. Schedule 2

      Local Government Act 1972, section 137, as amended.

    3. Schedule 3

      Provisions Supplementing Part IV.

      1. Part I

        Effect of Overspend in 1989-90 on Credit Approvals.

      2. Part II

        Non-Monetary Consideration received before April 1990.

      3. Part III

        Credit Ceiling.

      4. Part IV

        Minimum Revenue Provision.

    4. Schedule 4

      The Keeping of the Housing Revenue Account.

      1. Part I

        Credits to the Account.

      2. Part II

        Debits to the Account.

      3. Part III

        Special Cases.

      4. Part IV

        Supplementary Provisions.

    5. Schedule 5

      Local Government Finance Act 1988: Amendments.

    6. Schedule 6

      Amendment of Scottish Enactments.

    7. Schedule 7

      Compensation Provisions of Landlord and Tenant Act 1954, Part II.

    8. Schedule 8

      Welsh Language Names for Local Authorities.

    9. Schedule 9

      Amendments of Parts VI, IX, XI, XVII and XVIII of the Housing Act 1985.

      1. Part I

        Amendments of Part VI.

      2. Part II

        Amendments of Part IX.

      3. Part III

        Amendments of Part XI.

      4. Part IV

        Amendments of Part XVII.

      5. Part V

        Amendments of Part XVIII.

    10. Schedule 10

      Security of Tenure on Ending of Long Residential Tenancies.

    11. Schedule 11

      Minor and Consequential Amendments.

    12. Schedule 12

      Enactments Repealed.

      1. Part I

        Local Authority Finance.

      2. Part II

        Other Repeals.

An Act to make provision with respect to the members, officers and other staff and the procedure of local authorities; to amend Part III of the Local Government Act 1974 and Part II of the Local Government (Scotland) Act 1975 and to provide for a national code of local government conduct; to make further provision about the finances and expenditure of local authorities (including provision with respect to housing subsidies) and about companies in which local authorities have interests; to make provision for and in connection with renewal areas, grants towards the cost of improvement and repair of housing accommodation and the carrying out of works of maintenance, repair and improvement; to amend the Housing Act 1985 and Part III of the Local Government Finance Act 1982; to make amendments of and consequential upon Parts I, II and IV of the Housing Act 1988; to amend the Local Government Finance Act 1988 and the Abolition of Domestic Rates Etc. (Scotland) Act 1987 and certain enactments relating, as respects Scotland, to rating and valuation, and to provide for the making of grants; to make provision with respect to the imposition of charges by local authorities; to make further provision about certain existing grants and about financial assistance to and planning by local authorities in respect of emergencies; to amend sections 102 and 211 of the Local Government (Scotland) Act 1973; to amend the Local Land Charges Act 1975; to enable local authorities in Wales to be known solely by Welsh language names; to provide for the transfer of new town housing stock; to amend certain of the provisions of the Housing (Scotland) Act 1987 relating to a secure tenant's right to purchase his house; to amend section 47 of the Race Relations Act 1976; to confer certain powers on the Housing Corporation, Housing for Wales and Scottish Homes; to make provision about security of tenure for certain tenants under long tenancies; to provide for the making of grants and giving of guarantees in respect of certain activities carried on in relation to the construction industry; to provide for the repeal of certain enactments relating to improvement notices, town development and education support grants; to make, as respects Scotland, further provision in relation to the phasing of progression to registered rent for houses let by housing associations or Scottish Homes and in relation to the circumstances in which rent increases under assured tenancies may be secured; and for connected purposes.

[16th November 1989]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I Local Authority Members, Officers, Staff and Committees etc.

Political restriction of officers and staff

1 Disqualification and political restriction of certain officers and staff

(1) A person shall be disqualified from becoming (whether by election or otherwise) or remaining a member of a local authority if he holds a politically restricted post under that local authority or any other local authority in Great Britain.

(2) In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices) there shall be inserted at the appropriate place--

" Person holding a politically restricted post, within the meaning of Part I of the Local Government and Housing Act 1989, under a local authority, within the meaning of that Part. "

(3) In section 80 of the [1972 c. 70.] Local Government Act 1972 (disqualification for election and holding office as member of local authority)--

(a) in subsection (1)(a) (paid office holders and employees), the words "joint board, joint authority or" shall be omitted; and

(b) in subsection (6) (extension of meaning of "local authority"), after the word "includes" there shall be inserted "a joint board and".

(4) In section 31 of the [1973 c. 65.] Local Government (Scotland) Act 1973 (which makes corresponding provision for Scotland)--

(a) in subsection (1)(a)(ii), the words "or joint board" shall be omitted; and

(b) after subsection (1) there shall be inserted the following subsection--

" (1A) A person is disqualified for being a member of a joint board if he or a partner of his holds any paid office or employment (other than the office of chairman or vice-chairman of the board) or other place of profit in the gift or disposal of the board. "

(5) The terms of appointment or conditions of employment of every person holding a politically restricted post under a local authority (including persons appointed to such posts before the coming into force of this section) shall be deemed to incorporate such requirements for restricting his political activities as may be prescribed for the purposes of this subsection by regulations made by the Secretary of State.

(6) Regulations under subsection (5) above may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate and, without prejudice to section 190(1) below, may contain such exceptions for persons appointed in pursuance of section 9 below as he thinks fit.

(7) So far as it has effect in relation to disqualification for election, this section has effect with respect to any election occurring not less than two months after the coming into force of this section and, so far as it relates to becoming in any other way a member of a local authority, this section has effect with respect to any action which, apart from this section, would result in a person becoming a member of the authority not less than two months after the coming into force of this section.

(8) If, immediately before the expiry of the period of two months referred to in subsection (7) above, a person who is a member of a local authority holds a politically restricted post under that or any other local authority, nothing in this section shall apply to him until the expiry of the period for which he was elected or for which he otherwise became a member of the authority.

2 Politically restricted posts

(1) The following persons are to be regarded for the purposes of this Part as holding politically restricted posts under a local authority--

(a) the person designated under section 4 below as the head of the authority's paid service;

(b) the statutory chief officers;

(c) a non-statutory chief officer;

(d) a deputy chief officer;

(e) the monitoring officer designated under section 5 below;

(f) any person holding a post to which he was appointed in pursuance of section 9 below; and

(g) any person not falling within paragraphs (a) to (f) above whose post is for the time being specified by the authority in a list maintained in accordance with subsection (2) below and any directions under section 3 below or with section 100G(2) of the [1972 c. 70.] Local Government Act 1972 or section 50G(2) of the [1973 c. 65.] Local Government (Scotland) Act 1973 (list of officers to whom powers are delegated).

(2) It shall be the duty of every local authority to prepare and maintain a list of such of the following posts under the authority, namely--

(a) the full time posts the annual rate of remuneration in respect of which is or exceeds £19,500 or such higher amount as may be specified in or determined under regulations made by the Secretary of State;

(b) the part time posts the annual rate of remuneration in respect of which would be or exceed that amount if they were full time posts in respect of which remuneration were paid at the same rate as for the part time post; and

(c) posts not falling within paragraph (a) or (b) above the duties of which appear to the authority to fall within subsection (3) below,

as are not posts for the time being exempted under section 3 below, posts for the time being listed under section 100G(2) of the [1972 c. 70.] Local Government Act 1972 or section 50G(2) of the [1973 c. 65.] Local Government (Scotland) Act 1973 or posts of a description specified in regulations made by the Secretary of State for the purposes of this subsection.

(3) The duties of a post under a local authority fall within this subsection if they consist in or involve one or both of the following, that is to say--

(a) giving advice on a regular basis to the authority themselves, to any committee or sub-committee of the authority or to any joint committee on which the authority are represented;

(b) speaking on behalf of the authority on a regular basis to journalists or broadcasters.

(4) It shall be the duty of every local authority to deposit the first list prepared under subsection (2) above with their proper officer before the expiry of the period of two months beginning with the coming into force of this section; and it shall also be their duty, on subsequently making any modifications of that list, to deposit a revised list with that officer.

(5) It shall be the duty of every local authority in performing their duties under this section to have regard to such general advice as may be given by virtue of subsection (1)(b) of section 3 below by a person appointed under that subsection.

(6) In this section "the statutory chief officers" means--

(a) the chief education officer or director of education appointed under section 88 of the [1944 c. 31.] Education Act 1944 or section 78 of the [1980 c. 44.] Education (Scotland) Act 1980;

(b) the chief officer of a fire brigade maintained under the [1947 c. 41.] Fire Services Act 1947 and appointed under regulations made under section 18(1)(a) of that Act;

(c) the director of social services or director of social work appointed under section 6 of the [1970 c. 42.] Local Authority Social Services Act 1970 or section 3 of the [1968 c. 49.] Social Work (Scotland) Act 1968; and

(d) the officer having responsibility, for the purposes of section 151 of the Local Government Act 1972, section 73 of the [1985 c. 51.] Local Government Act 1985, section 112 of the [1988 c. 41.] Local Government Finance Act 1988 or section 6 below or for the purposes of section 95 of the [1973 c. 65.] Local Government (Scotland) Act 1973, for the administration of the authority's financial affairs.

(7) In this section "non-statutory chief officer" means, subject to the following provisions of this section--

(a) a person for whom the head of the authority's paid service is directly responsible;

(b) a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the head of the authority's paid service; and

(c) any person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the local authority themselves or any committee or sub-committee of the authority.

(8) In this section "deputy chief officer" means, subject to the following provisions of this section, a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to one or more of the statutory or non-statutory chief officers.

(9) A person whose duties are solely secretarial or clerical or are otherwise in the nature of support services shall not be regarded as a non-statutory chief officer or a deputy chief officer for the purposes of this Part.

(10) Nothing in this section shall have the effect of requiring any person to be regarded as holding a politically restricted post by reason of his holding--

(a) the post of head teacher or principal of a school, college or other educational institution or establishment which, in England and Wales, is maintained or assisted by a local education authority or, in Scotland, is under the management of or is assisted by an education authority; or

(b) any other post as a teacher or lecturer in any such school, college, institution or establishment,

or of requiring any such post to be included in any list prepared and maintained under this section.

(11) Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

3 Grant and supervision of exemptions from political restriction

(1) It shall be the duty of the Secretary of State to appoint a person--

(a) to carry out the functions in relation to political restriction which are conferred by subsections (2) to (7) below; and

(b) to give such general advice with respect to the determination of questions arising by virtue of section 2(3) above as that person considers appropriate after consulting such representatives of local government and such organisations appearing to him to represent employees in local government as he considers appropriate.

(2) A person appointed under subsection (1) above--

(a) shall consider any application for exemption from political restriction which is made to him, in respect of any post under a local authority, by the holder for the time being of that post; and

(b) may, on the application of any person or otherwise, give directions to a local authority requiring it to include a post in the list maintained by the authority under section 2(2) above.

(3) An application shall not be made by virtue of subsection (2)(a) above in respect of a post under a local authority except where--

(a) the authority have specified or are proposing to specify the post in the list maintained by the authority under subsection (2) of section 2 above; and

(b) in the case of a post falling within paragraph (a) or (b) of that subsection, the authority have certified whether or not, in their opinion, the duties of the post fall within subsection (3) of that section;

and it shall be the duty of a local authority to give a certificate for the purposes of paragraph (b) above in relation to any post if they are requested to do so by the holder of that post.

(4) If, on an application made by virtue of subsection (2)(a) above in respect of any post under a local authority, the person to whom the application is made is satisfied that the duties of the post do not fall within section 2(3) above, that person shall direct--

(a) that, for so long as the direction has effect in accordance with its terms, the post is not to be regarded as a politically restricted post; and

(b) that, accordingly, the post is not to be specified in the list maintained by that authority under section 2(2) above or, as the case may be, is to be removed from that list.

(5) A person appointed under subsection (1) above shall not give a direction under subsection (2)(b) above in respect of any post under a local authority except where he is satisfied that the post--

(a) is a post the duties of which fall within section 2(3) above; and

(b) is neither included in any list maintained by the authority in accordance with section 2(2) above, section 100G(2) of the [1972 c. 70.] Local Government Act 1972 or section 50G(2) of the [1973 c. 65.] Local Government (Scotland) Act 1973 nor of a description specified in any regulations under section 2(2) above.

(6) It shall be the duty of a local authority--

(a) to give a person appointed under subsection (1) above all such information as that person may reasonably require for the purpose of carrying out his functions under this section;

(b) to comply with any direction under this section with respect to the list maintained by the authority; and

(c) on being given a direction by virtue of subsection (2)(b) above, to notify the terms of the direction to the holder for the time being of the post to which the direction relates.

(7) It shall be the duty of a person appointed under subsection (1) above, in carrying out his functions under this section, to give priority, according to the time available before the election, to any application made by virtue of subsection (2)(a) above by a person who certifies that it is made for the purpose of enabling him to be a candidate in a forthcoming election.

(8) The Secretary of State may--

(a) appoint different persons under subsection (1) above for England and for Wales;

(b) provide for the appointment of such numbers of staff to assist any person appointed under that subsection, and to act on that person's behalf, as the Secretary of State may with the consent of the Treasury determine;

(c) pay to or in respect of a person appointed under that subsection and members of such a person's staff such remuneration and such other sums by way of, or towards, the payment of pensions, allowances and gratuities as the Secretary of State may so determine; and

(d) provide for a person appointed under that subsection and such a person's staff to hold office on such other terms as the Secretary of State may so determine.



Duties of particular officers

4 Designation and reports of head of paid service

(1) It shall be the duty of every relevant authority--

(a) to designate one of their officers as the head of their paid service; and

(b) to provide that officer with such staff, accommodation and other resources as are, in his opinion, sufficient to allow his duties under this section to be performed.

(2) It shall be the duty of the head of a relevant authority's paid service, where he considers it appropriate to do so in respect of any proposals of his with respect to any of the matters specified in subsection (3) below, to prepare a report to the authority setting out his proposals.

(3) Those matters are--

(a) the manner in which the discharge by the authority of their different functions is co-ordinated;

(b) the number and grades of staff required by the authority for the discharge of their functions;

(c) the organisation of the authority's staff; and

(d) the appointment and proper management of the authority's staff.

(4) It shall be the duty of the head of a relevant authority's paid service, as soon as practicable after he has prepared a report under this section, to arrange for a copy of it to be sent to each member of the authority.

(5) It shall be the duty of a relevant authority to consider any report under this section by the head of their paid service at a meeting held not more than three months after copies of the report are first sent to members of the authority; and nothing in section 101 of the [1972 c. 70.] Local Government Act 1972 or in section 56 of, or Schedule 10 or 20 to, the [1973 c. 65.] Local Government (Scotland) Act 1973 (delegation) shall apply to the duty imposed by virtue of this subsection.

(6) In this section "relevant authority"--

(a) in relation to England and Wales, means a local authority of any of the descriptions specified in paragraphs (a) to (e) of section 21(1) below; and

(b) in relation to Scotland, means a regional, islands or district council.

(7) This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

5 Designation and reports of monitoring officer

(1) It shall be the duty of every relevant authority--

(a) to designate one of their officers (to be known as "the monitoring officer") as the officer responsible for performing the duties imposed by this section; and

(b) to provide that officer with such staff, accommodation and other resources as are, in his opinion, sufficient to allow those duties to be performed;

and the officer so designated may be the head of the authority's paid service but shall not be their chief finance officer.

(2) It shall be the duty of a relevant authority's monitoring officer, if it at any time appears to him that any proposal, decision or omission by the authority, by any committee, sub-committee or officer of the authority or by any joint committee on which the authority are represented constitutes, has given rise to or is likely to or would give rise to--

(a) a contravention by the authority, by any committee, sub-committee or officer of the authority or by any such joint committee of any enactment or rule of law or of any code of practice made or approved by or under any enactment; or

(b) any such maladministration or injustice as is mentioned in Part III of the [1974 c. 7.] Local Government Act 1974 (Local Commissioners) or Part II of the [1975 c. 30.] Local Government (Scotland) Act 1975 (which makes corresponding provision for Scotland),

to prepare a report to the authority with respect to that proposal, decision or omission.

(3) It shall be the duty of a relevant authority's monitoring officer--

(a) in preparing a report under this section to consult so far as practicable with the head of the authority's paid service and with their chief finance officer; and

(b) as soon as practicable after such a report has been prepared by him or his deputy, to arrange for a copy of it to be sent to each member of the authority.

(4) The references in subsection (2) above, in relation to a relevant authority in England and Wales, to a committee or sub-committee of the authority and to a joint committee on which they are represented shall be taken to include references to any of the following, that is to say--

(a) any police committee the members of which include persons appointed by the authority;

(b) any local fisheries committee the members of which include persons so appointed;

(c) any National Parks Committee the members of which include persons so appointed; and

(d) any sub-committee appointed by a committee falling within paragraphs (a) to (c) above;

but in relation to any such committee or sub-committee the reference in subsection (3)(b) above to each member of the authority shall have effect as a reference to each member of the committee or, as the case may be, of the committee which appointed the sub-committee.

(5) It shall be the duty of a relevant authority and of any such committee as is mentioned in subsection (4) above--

(a) to consider any report under this section by a monitoring officer or his deputy at a meeting held not more than twenty-one days after copies of the report are first sent to members of the authority or committee; and

(b) without prejudice to any duty imposed by virtue of section 115 of the [1988 c. 41.] Local Government Finance Act 1988 (duties in respect of conduct involving contraventions of financial obligations) or otherwise, to ensure that no step is taken for giving effect to any proposal or decision to which such a report relates at any time while the implementation of the proposal or decision is suspended in consequence of the report;

and nothing in section 101 of the [1972 c. 70.] Local Government Act 1972 or in section 56 of, or Schedule 10 or 20 to, the [1973 c. 65.] Local Government (Scotland) Act 1973 (delegation) shall apply to the duty imposed by virtue of paragraph (a) above.

(6) For the purposes of paragraph (b) of subsection (5) above the implementation of a proposal or decision to which a report under this section relates shall be suspended in consequence of the report until the end of the first business day after the day on which consideration of that report under paragraph (a) of that subsection is concluded.

(7) The duties of a relevant authority's monitoring officer under this section shall be performed by him personally or, where he is unable to act owing to absence or illness, personally by such member of his staff as he has for the time being nominated as his deputy for the purposes of this section.

(8) In this section--

  • "business day", in relation to a relevant authority, means any day which is not a Saturday or Sunday, Christmas Day, Good Friday or any day which is a bank holiday under the [1971 c. 80.] Banking and Financial Dealings Act 1971 in the part of Great Britain where the area of the authority is situated;

  • "chief finance officer", in relation to a relevant authority, means the officer having responsibility, for the purposes of section 151 of the Local Government Act 1972, section 73 of the [1985 c. 51.] Local Government Act 1985, section 112 of the Local Government Finance Act 1988 or section 6 below or for the purposes of section 95 of the Local Government (Scotland) Act 1973, for the administration of the authority's financial affairs; and

  • "relevant authority"--

(a) in relation to England and Wales, means a local authority of any of the descriptions specified in paragraphs (a) to (j) of section 21(1) below; and

(b) in relation to Scotland, means a local authority.

(9) This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

6 Officer responsible for financial administration of certain authorities

(1) On and after the commencement day the Common Council shall--

(a) make arrangements for the proper administration of such of its financial affairs as relate to it in its capacity as a local authority, police authority or port health authority, and

(b) secure that one of its officers has responsibility for the administration of those affairs.

(2) Section 17 of the [1897 c. cxxxiii.] City of London Sewers Act 1897 (functions of the chamberlain of the City of London as regards financial affairs) shall cease to have effect on the commencement day.

(3) On and after the commencement day the person having responsibility for the administration of certain of the financial affairs of the Common Council under subsection (1) above shall--

(a) be a member of one or more of the bodies specified in subsection (5) below; or

(b) be the person who immediately before that day was the chamberlain of the City of London; or

(c) be a person who qualifies by virtue of section 113(2)(b) of the [1988 c. 41.] Local Government Finance Act 1988 (existing office holders) as a person who may be given responsibility for the financial affairs of an authority mentioned in section 111(2)(a) to (k) of that Act; or

(d) fulfil two or more of those conditions.

(4) On and after the commencement day the person having responsibility for the administration of the financial affairs of a new successor body under section 73 of the [1985 c. 51.] Local Government Act 1985 shall--

(a) be a member of one or more of the bodies specified in subsection (5) below; or

(b) be the person who immediately before that day had responsibility for the administration of the financial affairs of the body concerned under the said section 73; or

(c) be a person who qualifies by virtue of section 113(2)(b) of the Local Government Finance Act 1988 (existing office holders) as a person who may be given responsibility for the financial affairs of an authority mentioned in section 111(2)(a) to (k) of that Act; or

(d) fulfil two or more of those conditions.

(5) The bodies referred to in subsections (3)(a) and (4)(a) above are--

(a) the Institute of Chartered Accountants in England and Wales;

(b) the Institute of Chartered Accountants of Scotland;

(c) the Chartered Association of Certified Accountants;

(d) the Chartered Institute of Public Finance and Accountancy;

(e) the Institute of Chartered Accountants in Ireland;

(f) the Chartered Institute of Management Accountants;

(g) any other body of accountants established in the United Kingdom and for the time being approved by the Secretary of State for the purposes of this section.

(6) The Secretary of State may make regulations containing, as regards the Common Council and any new successor body to which section 73 of the [1985 c. 51.] Local Government Act 1985 applies, provisions equivalent to sections 114 to 116 of the [1988 c. 41.] Local Government Finance Act 1988 (reports etc.) subject to--

(a) modifications to confine the provisions to the Common Council in its capacity as a local authority, police authority or port health authority; and

(b) any other modifications the Secretary of State thinks fit;

and any such regulations may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(7) In this section--

  • "the commencement day" means the day on which this section comes into force;

  • "the Common Council" means the Common Council of the City of London;

  • "new successor body" means a body corporate established at any time by an order under section 67(3) of the Local Government Act 1985 (new body succeeding to residuary body's functions).

(8) This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.



Appointment and management etc. of staff

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7 All staff to be appointed on merit

(1) Every appointment of a person to a paid office or employment under--

(a) a local authority or parish or community council in England and Wales, or

(b) a local authority in Scotland,

shall be made on merit.

(2) Subsection (1) above applies to all appointments made by, or by any committee of, a local authority or parish or community council, whether made under section 112 of the [1972 c. 70.] Local Government Act 1972 or section 64 of the [1973 c. 65.] Local Government (Scotland) Act 1973 (appointment of staff) or otherwise, but has effect subject to--

(a) sections 9 and 12 of the [1944 c. 10.] Disabled Persons (Employment) Act 1944 (quotas and reserved employment);

(b) section 18 of the [1947 c. 41.] Fire Services Act 1947 (regulations as to appointment etc. of chief officers and fire brigades);

(c) section 7 of the [1975 c. 65.] Sex Discrimination Act 1975 (discrimination permitted in relation to employment where sex of employee is a genuine occupational qualification);

(d) section 5 of the [1976 c. 74.] Race Relations Act 1976 (discrimination permitted in relation to employment where being of a particular racial group is a genuine occupational qualification); and

(e) section 113 of the [1988 c. 41.] Local Government Finance Act 1988 and section 6 above (qualifications of officers responsible for administration of financial affairs of certain authorities).

(3) This section shall come into force at the expiry of the period of two months beginning on the day this Act is passed.

8 Duty to adopt standing orders with respect to staff

(1) The Secretary of State may by regulations require relevant authorities, subject to such variations as may be authorised by the regulations--

(a) to incorporate such provision as may be prescribed by the regulations in standing orders relating to their staff; and

(b) to make or refrain from making such other modifications of any such standing orders as may be so prescribed.

(2) For the purposes of this section standing orders relate to the staff of a relevant authority if they make provision for regulating--

(a) the appointment of persons to paid office or employment under the authority; or

(b) the dismissal of persons holding such office or employment and the taking of other disciplinary action against such persons.

(3) Without prejudice to the generality of subsection (1) above, regulations under this section may require a relevant authority's standing orders--

(a) so to restrict the manner of exercising the power to take steps for or towards the selection of candidates for interview, or for appointment, as to make it exercisable only by the authority themselves, by a committee or sub-committee of the authority or by particular officers of the authority;

(b) to restrict the power of the authority or any of their committees or sub-committees--

(i) to give directions to persons making appointments on their behalf as to the identity of the individuals to be appointed; or

(ii) otherwise to interfere with the making of appointments by such persons;

(c) to require the monitoring officer of the authority to prepare a report to the authority in respect of every proposed appointment of a person to a politically restricted post;

(d) to require every such report to state whether, in the opinion of the monitoring officer, the proposed appointment can be made--

(i) without any contravention of any provision made by or under this Part; and

(ii) without any matter being taken into account which could not properly be taken into account;

and, if in his opinion it cannot be so made, his reasons; and

(e) to prohibit the authority or any committee, sub-committee or other person acting on their behalf from dismissing or taking other disciplinary action against a person holding office or employment under the authority except in accordance with recommendations contained in a report made to the authority by an independent person of such a description as is prescribed by the regulations.

(4) Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate; and that provision may include--

(a) provision which, for the purposes of any such restriction as is mentioned in subsection (3) above, makes modifications of any enactment with respect to the delegation of a relevant authority's functions;

(b) provision which (with or without modifications) applies provisions of section 5 above in relation to any report prepared in consequence of regulations made by virtue of subsection (3)(c) above;

(c) provision specifying the consequences--

(i) in relation to any appointment or contract of employment;

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