Source: http://smartleges.com/en/law-library/the-local-government-structural-changes-transfer-of-functions-property-rights-and-liabilities-regulations-2008-2008-no-2176/2016862
Timestamp: 2017-04-23 11:56:23
Document Index: 486558898

Matched Legal Cases: ['ART 1', 'ART 2', 'ART 3', 'ART 4', 'ART 1', 'ART 2', 'ART 3', 'ART 4', 'ART 5', 'art 3', 'art 4', 'art 5', 'art 2']

THE LOCAL GOVERNMENT (STRUCTURAL CHANGES) (TRANSFER OF FUNCTIONS, PROPERTY, RIGHTS AND LIABILITIES) REGULATIONS 2008UK Statutory InstrumentsVersion as made2008 No. 2176
PART 1. GENERALPART 2. TRANSFER OF FUNCTIONSPART 3. TRANSFER OF PROPERTY, RIGHTS AND LIABILITIESPART 4. MATTERS SUPPLEMENTARY TO TRANSFER OF PROPERTY, RIGHTS AND LIABILITIES	Version as made
PART 1GENERAL1.—(1) These Regulations may be cited as the Local Government (Structural Changes) (Transfer of Functions, Property, Rights and Liabilities) Regulations 2008 and shall come into force on 8th September 2008.
(b) do not affect any transfer of property, rights or liabilities for which provision is contained in an agreement under section 16 of the Local Government and Public Involvement in Health Act 2007 (agreements about incidental matters).
“agreement”, except in regulations 14, 15 and 17(1) (b) , means an agreement under section 16 of the Act;
“caretaker council” has the meaning given by regulation 13(1) ;
“default award”, means the arbitrator’s award in the arbitration of a disputed matter under section 16(3) of the Act (agreements about incidental matters) (6 ) ;
“nominated council” has the meaning given by regulation 10(1) ;
“section 7 order” means an order under section 7 of the Act (implementation of proposals by order) ;
“single tier council” means the county or district council which, on the reorganisation date, becomes the principal authority for an area for which there is a single tier of local government(7 ) ; and
(a) in relation to a predecessor council whose entire area becomes part of the area of a sole single tier council on the reorganisation date, means that council;
(b) in relation to a predecessor council whose area becomes the area of more than one single tier council on the reorganisation date, means those councils,
(b) during which a provision of these Regulations requires or authorises steps to be taken by a successor council,
(b) such other information relating to the predecessor council’s property, rights or liabilities as may be specified (whether generally or by reference to a particular class or description) ,
do not need to be provided by the end of the relevant period.
“the preliminary period” means the period beginning on the date on which the section 7 order relevant to the predecessor council comes into force and ending on the reorganisation date;
(a) to which a predecessor council is a party; and
(b) which, in that council’s opinion, is unlikely to have been determined or settled before the reorganisation date;
(a) as regards details referred to in paragraph (2) (a) and (b) , means—
(i) where the relevant action or proceeding arises, or the relevant contract is entered into, before the date on which the preliminary period begins, the period beginning on that date and ending six months before the reorganisation date;
(ii) where the relevant action or proceeding arises, or the relevant contract is entered into on or after the date on which the preliminary period begins, the period beginning on the date on which the action or proceeding arises or the contract is entered into and ending on whichever is the earlier of the reorganisation date and the date that falls four months after that on which the action or proceeding arose or the contract was entered into;
(b) as regards information referred to in paragraph (2) (c) , means—
(i) where the request is made at least six weeks before the reorganisation date, the period of six weeks beginning with the date of the making of the request; and
(ii) where the request is made within six weeks of the reorganisation date, the period beginning with the date of the making of the request and ending on the day before the reorganisation date.
PART 2TRANSFER OF FUNCTIONS4. If a section 7 order provides for—
(b) the establishment of a single tier of local government for an area which consists of the entirety of the areas of both or all of the predecessor councils,
the functions of the predecessor councils shall on the reorganisation date become functions of the single tier council.
Transfer of functions to more than one single tier council
(b) the establishment, for the area of at least one of those councils, of more than one area for which there is a single tier of local government,
the functions of the predecessor councils shall on the reorganisation date become functions of both or, as the case may be, all of the successor councils, and exercisable by each of them independently of the other or others, but this is subject to paragraph (2).
PART 3TRANSFER OF PROPERTY, RIGHTS AND LIABILITIES6.—(1) In this Part —
“associated property”, in relation to any land of a predecessor council, means —
(a) property in or on the land which is used or intended to be used by the council exclusively for the discharge of functions on the land;
(b) property which is so used or intended to be so used and which is kept elsewhere when not in use;
(c) investments or cash which relate exclusively to the land; and
(d) records which relate exclusively to the land;
“contract” includes any enforceable undertaking;
“financial reserves”, in relation to a predecessor council and any successor council, means—
(a) the total of such amounts of a description contained in section 41(3) (b) of the Local Government and Housing Act 1989(10 ) (expenditure to be charged to revenue account) as have at any time been charged to a revenue account of the predecessor council, to the extent that those amounts have not been applied before the reorganisation date; and
(b) the total of the amount of the predecessor council’s capital receipts, as defined for the purposes of Chapter 1 of the Local Government Act 2003(11 ) (capital finance etc and accounts) , as have not been applied before the reorganisation date—
(i) to meet expenditure incurred for capital purposes; or
(ii) as provision to meet credit liabilities; and
“investment” does not include any land held as an investment.
(2) Regulations 9 to 13 do not apply where regulation 7 applies.
Transfers where only one successor council
all property, rights and liabilities of the predecessor councils shall on the reorganisation date vest in, and transfer to, the successor council.
Transfers where more than one successor council
(4) Regulation 13 shall apply with respect to so much of a predecessor council’s property, rights or liabilities as is a disputed matter within the meaning of section 16(3) of the Act only until the matter is the subject of a default award.
Property held exclusively for charitable purposes
“charitable purposes” and “charity” have the same meanings as in the Charities Act 2006(12 ) ;
“charity trustees”, “company”, “the court” and “trusts” have the same meanings as in the Charities Act 1993(13 ) ;
“proper officer” has the same meaning as in the Local Government Act 1972(14 ) ; and
“relevant charity” means a charity other than a charity which is incorporated by charter or a company.
Property consisting of financial reserves
(4) In this regulation “the successor councils concerned” means those councils that are the successor councils to the predecessor council to which the financial reserves relate.
Agreements in relation to property, etc: supplementary provision
(b) any rights or liabilities exclusively in respect of any such property,
and, for these purposes, “relevant collection” means —
(4) In paragraph (1) (a) “relevant shares” means shares held in a company which is under the control of a local authority within the meaning of section 68 of the Local Government and Housing Act 1989 Act(15 ) (but with the omission from subsection (1) of that section of the words “unless the Secretary of State otherwise directs”) ; and “share” has the same meaning as in the Companies Act 1985(16 ).
Vesting of property, etc to which agreements relate
(b) any associated property in relation to the land does not vest in that council by virtue of that paragraph,
the associated property shall, on the reorganisation date, vest in the successor council in which the land is vested, notwithstanding any agreement to the contrary.
Transfers to caretaker councils
(b) on the date that falls three months before the reorganisation date, there is no agreement between them as to the transfer of particular property, rights or liabilities of the predecessor council (“residual matters”) ,
the Secretary of State shall nominate such one or more of the successor councils, as the Secretary of State thinks fit, as the council or councils to which, subject to paragraphs (2) and (3) , residual matters shall transfer on the reorganisation date (a “caretaker council”).
PART 4MATTERS SUPPLEMENTARY TO TRANSFER OF PROPERTY, RIGHTS AND LIABILITIES14.—(1) A successor council (including any caretaker council) , in which any surplus land is vested on the reorganisation date (“the custodian council”) —
“relevant expenditure” means a sum equal to the amount by which the total of expenditure properly incurred by the custodian council in connection with the management or disposal of surplus land exceeds the total of monies (other than the disposal receipt) received by that council in respect of the land;
“the successor councils concerned”, in relation to any land, means those councils that are the successor councils to the predecessor council in which the land was vested before the reorganisation date; and
“surplus land” means any land that has been identified by the successor councils concerned as surplus to their requirements.
Caretaker and nominated councils: recovery of expenditure and distribution of surpluses
(ii) where the council is a caretaker council, received by that council with respect to investments vested in it by virtue of regulation 13(4).
(ii) any function which is exercisable, on and after the reorganisation date, by such other body,
that other body shall be entitled during normal office hours, through any person authorised in that behalf, to inspect those records and to take, or be supplied with, copies of those records or of any part of them.
PART 5DISPUTES17.—(1) Any question as to the interpretation or application of any provision of these Regulations may be determined—
(b) property vested in, or rights or liabilities transferred to, a caretaker council under regulation 13(4) ,
the property, rights or liabilities shall continue in the possession of that council pending the determination of the question.
(b) the provision of these Regulations which would have applied to the property, rights or liabilities if the vesting or transfer had been effected by that provision shall apply to the property, rights or liabilities.
Parmjit DhandaParliamentary Under Secretary of StateDepartment for Communities and Local Government14th August 2008
EXPLANATORY NOTE(This note is not part of the Regulations) Orders under section 7 of the Local Government and Public Involvement in Health Act 2007 (“the 2007 Act”) give effect to proposals for changes to the structure of local government. In particular, they provide for there to be a single tier of local government for the areas to which they relate. There is a single tier of local government for an area if there is a county council and no district councils or if there is a district council and no county council.
The first orders to be made under section 7 of the 2007 Act provide for the establishment of single tiers of local government in Bedfordshire, Cheshire, Cornwall, County Durham, Northumberland, Shropshire and Wiltshire on 1st April 2009 (S.I.s 2008/907 , 634 , 491 , 493 , 494 , 492 and 490 , respectively). In Cornwall, County Durham, Northumberland, Shropshire and Wiltshire, the existing county council continues after 31st March 2009 as the single tier council for the county. In Bedfordshire, the county council is wound up and dissolved. Bedford Borough Council continues as the single tier council for the borough of Bedford and a new Central Bedfordshire Council (a district council) becomes the single tier council for the rest of the county. In Cheshire, the county council is superseded by two new district councils, Cheshire East, and Cheshire West and Chester, which become single tier councils for their respective areas.
These Regulations, which are of general application, supplement those orders and any orders that may be made in the future under section 7 of the 2007 Act.
Section 14(3) of the 2007 Act provides for regulations under section 14 to have effect subject to any provision included in an order under section 7 or 10. Additionally, regulation 1(2) provides for these Regulations to have effect subject to any provision included in—
(d) regulations under section 7 of the Superannuation Act 1972 (relevant to pension schemes of local government employees).
Regulation 1(2) also provides that these Regulations do not affect transfers of property, rights or liabilities made by agreement under section 16 of the Local Government and Public Involvement in Health Act 2007 (agreements between councils about incidental matters).
Regulation 2 contains definitions, including that of “the reorganisation date” which, in relation to a predecessor council and an order under section 7 of the 2007 Act, means the date specified in the order as that on which the council is to be wound up and dissolved.
Regulation 3 contains provisions relevant to the supply of information by a local authority which is to be wound up and dissolved (a “predecessor council”) to the appropriate single tier council (a “successor council”).
Regulations 4 and 5 make provision for the transfer of functions from a predecessor council. (In this context, “functions” means the powers and duties exercisable by a predecessor council immediately before the reorganisation date.) Where the predecessor council is succeeded by only one successor council, all of its functions transfer to that council on the reorganisation date. Where there is more than one successor council for a predecessor council’s area, most of the predecessor council’s functions transfer on the reorganisation date to the successor councils and become exercisable by each of them independently of the other or others. A function of a predecessor council that relates to a particular part of its area, for example, a function conferred by a local Act, will transfer to the successor council whose area consists of or includes that part.
In Part 3 of the Regulations, regulation 6(1) contains definitions relevant to that Part and regulation 6(2) makes clear that regulations 9 to 13 do not apply to transfers of property, rights and liabilities under regulation 7.
Regulation 7 makes provision for the transfer of property, rights and liabilities where a predecessor council is to be succeeded by only one successor council.
Regulation 8 makes provision for the transfer of property, rights and liabilities where a predecessor council is succeeded by more than one successor council.
Paragraph (1) of regulation 8 provides that property of a predecessor council that is held exclusively for charitable purposes is to transfer in accordance with regulation 9, and that property in the form of a predecessor council’s financial reserves (defined in regulation 6) is to transfer in accordance with regulation 10. Other property, rights and liabilities of a predecessor council are to transfer to a “caretaker” council in accordance with regulation 13 unless—
(b) other regulations under section 14 of the Act provide for their transfer.
Where regulation 13 applies with respect to some of a predecessor council’s property, rights or liabilities that is a disputed matter within the meaning of section 16(3) of the 2007 Act, it does so only until the matter is the subject of a default award.
Regulations 11 and 12 contain provisions relevant to agreements under section 16 of the 2007 Act.
Regulation 13 deals with the situation where there is more than one successor council in relation to a predecessor council and, by the date that falls three months before the reorganisation date, the successor councils have not been able to reach agreement under section 16 of the 2007 Act as to which of them should take particular property, rights or liabilities of the predecessor council (“residual matters”). The Secretary of State is required to nominate one or more of the successor councils as a “caretaker” council, with the consequence that, if agreement under section 16 has not been reached by the reorganisation date, residual matters will transfer on that date to the caretaker council. Where the Secretary of State nominates more than one of the successor councils as the caretaker councils, he is required to indicate the particular residual matters, or the classes or descriptions of residual matters, that are to transfer to a particular caretaker council. Each caretaker council is required to hold the particular residual matters, or residual matters of the specified classes or descriptions, on trust for itself and the other successor council(s) concerned until a decision has been made as to which of the successor councils should take them.
In Part 4 of the Regulations, regulation 14 requires a council to which land has been transferred and which has been identified by the successor councils concerned as surplus to their requirements to dispose of it. The net proceeds or net deficits are to be shared among or borne by the successor councils concerned.
Regulation 15 provides for the “caretaker” council to recover part of its expenditure from the other successor council(s) concerned or, as the circumstances require, to distribute part of any surplus attributable to its management of the property, rights and liabilities for which it is the “caretaker”.
Regulation 16 deals with access to records.
In Part 5, regulation 17 provides for the resolution of disputes as to the interpretation or application of provisions of the Regulations.
(1) 2007 c.28 . In accordance with subsection (2) of section 14, subsection (1) of that section is to be read with section 15.
(2) See also section 14(3) , which provides that regulations under section 14 have effect subject to any provision included in an order under section 7 or 10.
(3) See also section 98(3) and (4) and the definition of “reorganisation order” in section 102(2).
(4) 1997 c.29 . Part 2 is repealed, with savings; see S.I. 2008/337 .
(5) 1972 c.11 . There are amendments of which none is relevant to these Regulations.
(6) As to “disputed matter”, see section 16(5) of the Local Government and Public Involvement in Health Act 2007.
(7) As to “a single tier of local government”, see section 1(2) of the Local Government and Public Involvement in Health Act 2007.
(8) See, for example, the definition in article 2 of S.I. 2008/634 and article 14 of S.I. 2008/907 .
(9) See, for example, article 6(1) of S.I. 2008/490 and 2008/491 .
(10) 1989 c.42 .
(11) 2003 c.26 . As to “capital receipts” see section 9(1) of that Act.
(12) 2006 c.50 . See sections 1 and 2.
(13) 1993 c.10 , to which there are amendments not relevant to these Regulations. For the definitions of “charity trustees”, “company”, “the court” and “trusts” see section 97.
(14) 1972 c. 70 ; for “proper officer”, see section 270(3) of the Act.
(15) 1989 c.42 .
(16) 1985 c.6 , to which there are amendments not relevant to these Regulations.
(17) See section 16(5) of the Act.