Local Employment Act 1972

Development areas and intermediate areas

Designation of development areas and intermediate areas

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• (1) For the purposes of this Act the Secretary of State may by order specify any area of Great Britain as—

• (a) a development area ; or

• (b) an intermediate area.

• (2) The areas to be specified under this section as development areas shall be areas where, in the opinion of the Secretary of State, special measures are necessary for the purpose of encouraging the growth and proper distribution of industry; and, in exercising his power to specify areas as aforesaid, the Secretary of State shall have regard to all the circumstances actual and expected, including the state of employment and unemployment, population changes, migration and the objectives of regional policies.

• (3) The areas to be specified under this section as intermediate areas shall be areas where, in the opinion of the Secretary of State—

• (a) special measures are necessary for the purpose of encouraging the growth and proper distribution of industry; but

• (b) the economic problems are not so acute that the powers conferred by this Act in relation to development areas only (in addition to those conferred in relation to both development areas and intermediate areas) need to be available for that purpose to be achieved.

• (4) An order under this section may describe a development area or intermediate area by reference to employment exchange areas, that is to say, areas for which an employment exchange has been established for the purposes of the Employment and Training Act 1948; and any reference in such an order to a named employment exchange area shall be construed as a reference to that area as it exists on the date on which the order comes into force.

• (5) In this Act any reference to a development area shall have effect as if there were included in the development area any relevant locality outside that area as respects which the Secretary of State and the Treasury are satisfied that it ought to be treated as if it were so included by reason of the fact that—

• (a) its population will be, or is being, increased by migration from one or more specific places in the development area; and

• (b) the increase will be substantial in relation to the original population of the locality;

and the Secretary of State shall give notice in such manner as appears to him appropriate of the localities as respects which he and the Treasury are for the time being satisfied as aforesaid.

• (6) The localities relevant for the purposes of subsection (5) of this section are—

• (a) any area which has been designated under the New Towns Act 1965 or the New Towns (Scotland) Act 1968, or any enactment repealed by either of those Acts, as the site of a new town;

• (b) any locality which, in relation to the development area or to that area and any other place, is a receiving district within the meaning of the Town Development Act 1952 or falls to be treated as such a receiving district by virtue of an order under section 34 of the Housing Act 1961;

• (c) any burgh or county the council of which are, in relation to the development area or to that area and any other place, a receiving authority within the meaning of Part II of the Housing and Town Development (Scotland) Act 1957.

• (7) Where, by an order under this section, the Secretary of State specifies as an intermediate area an area which, immediately before the order was made, was a development area in which any locality fell to be included by virtue of subsection (5) of this section, that locality shall be treated for the purposes of this Act as included in the specified area.

Powers for provision of employment

Purpose for which powers exercisable and advisory committee

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• (1) The powers conferred by sections 3 to 6 of this Act shall be exercisable, with due regard to the proper diversification of industry, for the purpose of providing for the benefit of any area in relation to which the powers are exercisable employment appropriate (having regard to the circumstances of the area generally and of any particular description of persons therein) to the needs of the area.

• (2) In determining whether and in what manner, to exercise his powers under sections 3, 4 and 5 of this Act for the benefit of any area in relation to which the powers are exercisable, the Secretary of State shall have regard—

• (a) to the relation between the expenditure involved and the employment likely to be provided; and

• (b) to any consequential effect on employment in any other part of that area and in any other development area or intermediate area.

• (3) For the purposes of this Act there shall be an advisory committee appointed by the Secretary of State; and the Secretary of State may pay to the members of the committee such allowances as he may with the consent of the Minister for the Civil Service determine.

Building grants

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• (1) For the purpose mentioned in section 2(1) of this Act the Secretary of State may, with the consent of the Treasury and after consultation, if he sees fit, with the advisory committee, make grants to persons carrying on, or proposing to carry on, undertakings in any development area or intermediate area towards the cost of providing in the area buildings or extensions of buildings to be occupied by the undertakings.

• (2) The amount of any grant to be made towards the cost of providing a building or an extension of a building under this section shall be the appropriate proportion, as stated in the following provisions of this section, of the relevant expenditure ; and that expenditure shall be so much of the expenditure incurred in providing the building or extension as the Secretary of State may approve for the purposes of the grant:

Provided that the grant may be of an amount less than that proportion in any case where it appears to the Secretary of State that the employment likely to be provided as a result of the expenditure so incurred and any associated expenditure does not justify a grant equal to the appropriate proportion.

• (3) The appropriate proportion for this purpose is—

• (a) twenty-five per cent. of the relevant expenditure in the case of a building or extension in an intermediate area; and

• (b) thirty-five per cent. of the relevant expenditure in the case of a building or extension in a development area,

plus, in either case, a further ten per cent. of the relevant expenditure, where it appears to the Secretary of State that the application for the grant is made for the purpose of setting up an undertaking in the area in circumstances which justify the giving of special assistance under this section.

• (4) In this section, references to buildings include references to structures; and, for the purposes of this section, a building may be provided by the adaptation of an existing one, and a building or extension of a building by the purchase of a new one, that is to say, one not previously occupied.

• (5) Where a building or extension of a building constructed with a view to being let to another person includes special features at the request of that person, and he is required to pay a capital sum in consideration thereof, this section shall have effect as if that sum were expenditure incurred by him in providing the building or extension.

• (6) Where at any time a development area becomes an intermediate area, it shall be treated as if it were still a development area for the purpose of determining the amount of any grant to be made under this section on an application received by the Secretary of State before that time, or in respect of expenditure any part of which was incurred by the applicant under a contract entered into before that time; and where at any time an intermediate area becomes a development area, it shall be treated as if it were still an intermediate area for the purpose of determining the amount of a grant under this section in the following circumstances—

• (a) in the case of a grant in respect of the provision of a building or extension by purchase, if the contract to purchase was entered into before that time, or if before that time any work on providing the building or extension was done on the site with a view to occupation by the applicant for the grant or, if the applicant is a member of a group , by any other member of that group;

• (b) in the case of a grant made by virtue of subsection (5) of this section, if any work on including the special features in the building or extension was done before that time; and

• (c) in the case of any other grant, if any work on providing the building or extension was done on the site before that time by or on behalf of the applicant for the grant or, if the applicant is a member of a group, by or on behalf of any other member of that group.

• (7) For the purposes of subsection (6) of this section, a group consists of a body corporate together with all other bodies corporate which are its subsidiaries within the meaning of section 154 of the Companies Act 1948 ; and in that subsection references to development areas and intermediate areas include references to parts of development areas and intermediate areas.

• (8) In making a grant under this section the Secretary of State shall impose such conditions (which may include conditions for repayment in specified circumstances) as he thinks fit for securing that the building or extension will continue to serve the purpose mentioned in section 2(1) of this Act.

General power to make loans and grants and to acquire shares

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• (1) Where, in accordance with recommendations of the advisory committee, the Secretary of State is satisfied as respects any undertaking carried on, or proposed to be carried on, in a development area—

• (a) that it is expedient for the purpose mentioned in section 2(1) of this Act to exercise his powers under this section; and

• (b) that there are good prospects of the undertaking ultimately being able to be carried on successfully without further assistance under this section,

the Secretary of State may agree with the person carrying on, or proposing to carry on, the undertaking to give assistance under this section for the purposes of the undertaking.

• (2) Assistance under this section may be given—

• (a) where the person carrying on, or proposing to carry on, the undertaking is a company incorporated in the United Kingdom—

• (i) by making loans or grants ;

• (ii) by subscribing for or otherwise acquiring shares or stock in the company;

• (iii) by a combination of the methods mentioned in sub-paragraphs (i) and (ii) of this paragraph;

• (b) in any other case, by making loans or grants.

• (3) A grant may be made under this section in respect of expenditure incurred outside a development area in connection with the transference of any undertaking to a development area.

• (4) Assistance under this section shall be of such amounts and shall be given on such terms and conditions as may be recommended by the advisory committee and specified in the agreement made with the person to whom the assistance is given ; and those terms and conditions may include—

• (a) in the case of a grant, conditions for repayment in specified circumstances;

• (b) in the case of a loan to a company incorporated in the United Kingdom, terms providing for the indebtedness to the Secretary of State to be discharged by the issue of shares or stock in the company.

• (5) In recommending the terms and conditions on which assistance under this section should be given, the advisory committee shall act in accordance with general directions given to them by the Secretary of State with the consent of the Treasury.

Provision of premises and sites

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• (1) For the purpose mentioned in section 2(1) of this Act the Secretary of State shall have power, in order to provide or facilitate the provision of premises in any development area or intermediate area for occupation by undertakings carried on or to be carried on there or for otherwise meeting the requirements of such undertakings (including requirements arising from the needs of persons employed or to be employed therein)—

• (a) to acquire land by agreement or, if so authorised, compulsorily;

• (b) to erect buildings and carry out works on land belonging to the Secretary of State ;

• (c) by agreement with the persons interested in any other land, to erect buildings and carry out works on the land on such terms (including terms as to repayment of expenditure incurred by the Secretary of State) as may be specified in the agreement.

• (2) The Secretary of State shall not acquire under this section any buildings other than industrial buildings except for redevelopment or as part of a larger property which in the opinion of the Secretary of State would be incomplete without them.

Removal and resettlement of workers

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• (1) Subsection (2) of this section shall have effect for assisting the transfer of persons from employment in an undertaking, wherever carried on, to employment in an undertaking (in this section referred to as " the new undertaking ") which is being established in a development area or intermediate area by way of extension of or in connection with, or by way of transfer of the whole or part of, the first-mentioned undertaking or which, having been so established, is being extended in the development area or intermediate area in question.

• (2) If on an application in that behalf as respects any person the Secretary of State is satisfied that it is expedient for the purpose mentioned in section 2(1) of this Act to exercise his powers under this subsection, and that the exercise thereof will facilitate the establishment or extension of the new undertaking, he may for the purposes of section 5 of the Employment and Training Act 1948 (payments towards cost of removal and resettlement of workers and their dependants and towards their maintenance and welfare in the course of their removal pending their resettlement) treat—

• (a) the said person's becoming employed in the new undertaking as if it were the obtaining of employment; and

• (b) the said person's ceasing to be employed in the new undertaking as if it were the coming to an end of employment, notwithstanding that he ceases to be so employed in order that he may continue in employment elsewhere.

Powers for contributing to development of industry

Improvement of basic services

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• (1) Where it appears to the Minister in charge of any government department that adequate provision has not been made for the needs of any development area or intermediate area in respect of a basic service for which the department is responsible, and that it is expedient with a view to contributing to the development of industry in that area that the service should be improved, he may with the consent of the Treasury make grants or loans towards the cost of improving it to such persons and in such manner as appear to him appropriate.

• (2) In this section " basic service " means the provision of facilities for transport (whether by road, rail, water or air) or of power, lighting, heating, water, or sewerage, and sewage disposal facilities, or any other service or facility on which the development of the area in question, and in particular of industrial undertakings therein, depends.

• (3) The powers conferred by this section are in addition to any other powers of a Minister of the Crown to make grants or loans.

Derelict land

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• (1) Where in the case of any land in a development area or intermediate area—

• (a) it appears to the appropriate Minister that the land is derelict, neglected or unsightly ; and

• (b) it appears to the Secretary of State for Trade and Industry that it is expedient with a view to contributing to the development of industry in that area that steps should be taken for the purpose of enabling the land (in this section referred to as " the derelict land") to be brought into use or of improving its appearance,

the powers conferred by subsections (2) and (3) of this section shall be exercisable by the Secretary of State for Trade and Industry and the appropriate Minister respectively.

• (2) The Secretary of State for Trade and Industry may acquire by agreement or, if so authorised, compulsorily the derelict land and any other land the acquisition of which is reasonably required for the purpose mentioned in subsection (1)(b) of this section, and carry out on the derelict land and any other land such work as appears to him expedient for that purpose.

• (3) The appropriate Minister may with the consent of the Treasury make grants, in such manner as appears to him to be requisite for the purpose mentioned in subsection (1)(b) of this section, to the council of the county, county borough or county district in which the land in question is situated—

• (a) towards the cost of the exercise of any power of the council to acquire the derelict land or any other land;

• (b) towards the cost of the carrying out by the council for that purpose of any work on the derelict land or on any other land.

• (4) In this section—

• " the appropriate Minister " means, as respects land in England, in Scotland or in Wales, the Secretary of State for the time being having general responsibility in planning matters in relation to those countries respectively;

• " land " includes land covered with water.

• (5) In the application of subsection (3) of this section to Scotland for any reference to the council of the county, county borough or county district in which the land in question is situated there shall be substituted a reference to any local authority, as defined for the purposes of the Local Government (Scotland) Act 1947, within whose area the land in question is situated.

• (6) Where the Secretary of State for Trade and Industry is of opinion, with respect to any locality in Great Britain, that the economic situation in the locality is such that the exercise, in relation to land therein, of the powers conferred by the foregoing provisions of this section would be particularly appropriate with a view to contributing to the development of industry in the locality, he may by order specify it as a derelict land clearance area, and those provisions shall have effect in relation to land in a derelict land clearance area as they have effect in relation to land in a development area or intermediate area.

• (7) Section 1(4) of this Act shall apply, subject to the necessary modifications, to any order under subsection (6) of this section.

Grants for improvement work on derelict land begun before 5th March 1970

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