Local Government Act 1999
Part I — Best Value
Best value authorities
Best value authorities
1
- (1) For the purposes of this Part each of these is a best value authority—
- (a) an English local authority;
- (b) a National Park authority for a National Park in England;
- (c) the Broads Authority;
- (d) the Common Council of the City of London in its capacity as a police authority;
- (e) a fire and rescue authority in England constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies, and a metropolitan county fire and civil defence authority;
- (f) the London Fire Commissioner;
- (g) an authority established under section 10 of the Local Government Act 1985 (waste disposal authorities);
- (ga) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (h) an Integrated Transport Authority for an integrated transport area in England;
- (ha) an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009;
- (hb) a combined authority established under section 103 of that Act;
- (hc) a sub-national transport body established under section 102E of the Local Transport Act 2008;
- (hd) a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;
- (i) Transport for London;
- (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) In this section, “English local authority” means
- (a) a county council in England, a district council or a London borough council;
- (b) the Council of the Isles of Scilly;
- (c) the Common Council of the City of London in its capacity as a local authority;
- (d) the Greater London Authority so far as it exercises its functions through the Mayor.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power to extend or disapply
2
- (1) The Secretary of State may by order provide that any of the authorities and bodies mentioned in subsection (2) is a best value authority for the purposes of this Part.
- (2) The authorities and bodies are—
- (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (b) a levying body within the meaning of section 74(1) of the Local Government Finance Act 1988 in respect of which the county council or charging authority referred to in section 74(1)(b) of that Act was a council or authority for an area in England;
- (c) a body to which section 75 of that Act applies (special levies) and which as regards the financial year beginning in 1989 had power to levy a rate by reference to property in England.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) The Secretary of State may by order provide for the Greater London Authority to be a best value authority for the purposes of this Part in relation to—
- (a) specified functions of the Authority which it does not exercise through the Mayor;
- (b) specified functions which are not functions of the Authority but are functions of another best value authority;
and an order may provide for this Part to have effect in relation to those functions with specified modifications.
- (5) The Secretary of State may by order provide that a best value authority specified, or of a description specified, in the order is not to be subject, in relation to such functions as may be specified, to the duty in section 3.
- (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) No order shall be made under this section unless a draft has been laid before, and approved by resolution of, each House of Parliament.
Duties: general
The general duty
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- (1) A best value authority must make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.
- (2) For the purpose of deciding how to fulfil the duty arising under subsection (1) an authority must consult—
- (a) representatives of persons liable to pay any tax, precept or levy to or in respect of the authority,
- (b) representatives of persons liable to pay non-domestic rates in respect of any area within which the authority carries out functions,
- (c) representatives of persons who use or are likely to use services provided by the authority, and
- (d) representatives of persons appearing to the authority to have an interest in any area within which the authority carries out functions.
- (3) For the purposes of subsection (2) “representatives” in relation to a group of persons means persons who appear to the authority to be representative of that group.
- (4) In deciding—
- (a) how to fulfil the duty arising under subsection (1),
- (b) who to consult under subsection (2), or
- (c) the form, content and timing of consultations under that subsection,
an authority must have regard to any guidance issued by the Secretary of State.
Performance indicators and standards
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Best value reviews
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Best value performance plans
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Audit of best value performance plans : Welsh best value authorities
Audit
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Code of practice and fees
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Response to audit
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Best value inspections
Inspections
10
- (1) The Secretary of State may appoint a person to carry out an inspection of a specified best value authority's compliance with the requirements of this Part in relation to specified functions.
- (2) The Secretary of State may appoint assistant inspectors for the purposes of the inspection.
- (3) The appointment of an assistant inspector must be made on the recommendation of the inspector, unless the Secretary of State thinks that the urgency of the inspection makes it necessary to dispense with this requirement.
- (4) In carrying out an inspection, the inspector and any assistant inspector must—
- (a) have regard to any guidance issued by the Secretary of State generally in relation to inspections, and
- (b) comply with any directions issued by the Secretary of State in relation to that inspection.
Inspectors' powers and duties
11
- (1) An inspector has a right of access at all reasonable times—
- (a) to any premises of the best value authority concerned, and
- (b) to any document relating to the authority which appears to him to be necessary for the purposes of the inspection.
- (1A) The right conferred by subsection (1)(b) includes power to inspect, copy or take away the document.
- (2) An inspector—
- (a) may require a person holding or accountable for any such document to give him such information and explanation as he thinks necessary, and
- (b) may require that person to attend before him in person to give the information or explanation or to produce the document.
- (2A) In relation to a document kept in electronic form, the power in subsection (2)(b) to require a person to produce a document includes power to require it to be produced in a form in which it is legible and can be taken away.
- (2B) In connection with inspecting such a document, an inspector—
- (a) may obtain access to, and inspect and check the operation of, any computer and associated apparatus or material which he considers is or has been used in connection with the document;
- (b) may require a person within subsection (2C) to afford him such reasonable assistance as he may require for that purpose.
- (2C) A person is within this subsection if he is—
- (a) the person by whom or on whose behalf the computer is or has been used; or
- (b) a person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material.
- (3) A best value authority shall provide an inspector with every facility and all information which he may reasonably require for the purposes of the inspection.
- (4) An inspector shall—
- (a) give three clear days’ notice of any requirement under this section, and
- (b) ..., if so required, produce documents identifying himself.
- (5) A person who without reasonable excuse obstructs the exercise of any power conferred by this section or fails to comply with a requirement of an inspector under this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.
- (6) Any expenses incurred by an inspector in connection with proceedings for an offence under subsection (5) alleged to have been committed in relation to an inspection of a best value authority are, so far as not recovered from any other source, recoverable from the authority.
- (7) In this section “ inspector ” means—
- (a) an inspector or assistant inspector appointed under section 10(1) or (2).
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees
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An authority inspected under section 10 must pay the reasonable fees of the inspector for carrying out the inspection.
Reports
13
- (1) Where an inspector has carried out an inspection of an authority under section 10 the inspector shall issue a report.
- (2) A report—
- (a) shall mention any matter in respect of which the inspector believes as a result of the inspection that the authority is failing to comply with the requirements of this Part, and
- (b) may, if it mentions a matter under paragraph (a), recommend that the Secretary of State give a direction under section 15.
- (3) The inspector —
- (a) shall send a copy of a report to the authority concerned and to the Secretary of State , and
- (b) may publish a report and any information in respect of a report.
- (3A) The Secretary of State may publish a report and any information in respect of a report.
- (4) If a report recommends that the Secretary of State give a direction under section 15, the inspector shall as soon as reasonably practicable—
- (a) arrange for the recommendation to be published, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) If a report relates to any extent to the administration of housing benefit or council tax benefit and the inspector thinks fit to do so, the inspector shall as soon as reasonably practicable send a copy of the report to the Secretary of State.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inspections: housing benefit and council tax benefit
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- (1) The following shall be substituted for section 139A(1) and (2) of the Social Security Administration Act 1992 (reports on administration of housing benefit and council tax benefit)—
(1) The Secretary of State may authorise persons to consider and report to him on the administration by authorities of housing benefit and council tax benefit. (2) The Secretary of State may ask persons authorised under subsection (1) to consider in particular— (a) authorities’ performance in the prevention and detection of fraud relating to housing benefit and council tax benefit; (b) authorities’ compliance with the requirements of Part I of the Local Government Act 1999 (best value). (2A) A person may be authorised under subsection (1)— (a) on such terms and for such period as the Secretary of State thinks fit; (b) to act generally or in relation to a specified authority or authorities; (c) to report on administration generally or on specified matters.
- (2) In section 139C(1) of that Act (reports) for the words from “in particular” to the end there shall be substituted
in particular— (a) in the prevention and detection of fraud relating to benefit, or (b) for the purposes of complying with the requirements of Part I of the Local Government Act 1999 (best value).
Secretary of State’s powers
15
- (1) This section applies in relation to a best value authority if the Secretary of State is satisfied that it is failing to comply with the requirements of this Part.
- (2) Where this section applies in relation to an authority the Secretary of State may
- (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) in the case of any best value authority, direct it to carry out a review of its exercise of specified functions.
- (3) Where this section applies in relation to an authority the Secretary of State may direct a local inquiry to be held into the exercise by the authority of specified functions.
- (4) Subsections (2) to (5) of section 250 of the Local Government Act 1972 (inquiries) shall apply in relation to an inquiry which the Secretary of State directs to be held under this section as they apply in relation to an inquiry which a Minister causes to be held under that section.
- (5) Where this section applies in relation to an authority the Secretary of State may direct the authority to take any action which he considers necessary or expedient to secure its compliance with the requirements of this Part.
- (6) Where this section applies in relation to an authority the Secretary of State may direct—
- (a) that a specified function of the authority shall be exercised by the Secretary of State or a person nominated by him for a period specified in the direction or for so long as the Secretary of State considers appropriate, and
- (b) that the authority shall comply with any instructions of the Secretary of State or his nominee in relation to the exercise of that function and shall provide such assistance as the Secretary of State or his nominee may require for the purpose of exercising the function.
- (6A) So far as is appropriate in consequence of a direction given under subsection (6)(a), a reference (however expressed) in an enactment, instrument or other document to a best value authority is to be read as a reference to the person by whom the function is exercisable.
- (6B) Subsection (6C) applies if a direction given under subsection (6)(a) expires or is revoked without being replaced.
- (6C) So far as is appropriate in consequence of the expiry or revocation, a reference (however expressed) in an instrument or other document to the person by whom the function was exercisable is to be read as a reference to the best value authority to which the direction was given.
- (7) The Secretary of State may by regulations make provision which—
- (a) relates to an enactment which confers a function on him in respect of a function of a best value authority, and
- (b) he considers necessary or expedient for the purposes of cases in which he makes a direction under subsection (6)(a).
- (8) Regulations under subsection (7) may, in relation to the cases mentioned in subsection (7)(b)—
- (a) disapply or modify an enactment of the kind mentioned in subsection (7)(a);
- (b) have an effect similar to the effect of an enactment of that kind.
- (9) Subject to subsection (11), before giving a direction under this section the Secretary of State shall give the authority concerned an opportunity to make representations about—
- (a) the report (if any) as a result of which the direction is proposed, and
- (b) the direction proposed.
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) The Secretary of State may give a direction without complying with subsection (9) ... if he considers the direction sufficiently urgent.
- (12) Where the Secretary of State gives a direction without complying with subsection (9) ... he shall inform—
- (a) the authority concerned, and
- (b) such persons appearing to him to represent best value authorities as he considers appropriate,
of the direction and of the reason why it was given without complying with subsection (9) or (10).
- (13) A direction given under this section shall be enforceable by order of mandamus on the application of the Secretary of State.
Exercise of functions by best value authorities
Power to modify enactments and confer new powers
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- (1) If the Secretary of State thinks that an enactment prevents or obstructs compliance by best value authorities with the requirements of this Part he may by order make provision modifying or excluding the application of the enactment in relation to—
- (a) all best value authorities,
- (b) particular best value authorities, or
- (c) particular descriptions of best value authority.
- (2) The Secretary of State may by order make provision conferring on—
- (a) all best value authorities,
- (b) particular best value authorities, or
- (c) particular descriptions of best value authority,
which he considers necessary or expedient to permit or facilitate compliance with the requirements of this Part.
- (3) An order under this section may—
- (a) impose conditions on the exercise of any power conferred by the order (including conditions about consultation or approval);
- (b) amend an enactment;
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