Legalize / United Kingdom / Public General Act

Local Democracy, Economic Development and Construction Act 2009

Type Public General Act

Publication 2009-11-12

Last updated 2026-03-10

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2A) Subsections (2B) to (2D) apply where the Local Government Boundary Commission make a recommendation to the Secretary of State under section 8(6A) or (6E) in consequence of a recommendation under section 8(2). (2B) Where under subsection (1)(a) the Secretary of State implements the recommendation under section 8(2) without modification, the Secretary of State must by order implement the recommendation under section 8(6A) or (6E). (2C) Where pursuant to subsection (1)(a) the Secretary of State proposes to implement the recommendation under section 8(2) with modification, the Secretary of State must request the Local Government Boundary Commission to recommend whether a modification is needed to their recommendation under section 8(6A) or (6E). (2D) Where under section (1)(a) the Secretary of State implements a recommendation under section 8(2) with modification— (a) if the Local Government Boundary Commission have recommended under subsection (2C) that a modification is needed to their recommendation under section 8(6A) or (6E), the Secretary of State must by order implement the recommendation under section 8(6A) or (6E) with that modification; (b) if the Local Government Boundary Commission have recommended under subsection (2C) that no modification is needed to the recommendation under section 8(6A) or (6E), the Secretary of State must by order implement that recommendation.

(5) In section 11 (implementation orders: provision that may be included)—

(a) in subsection (3), at the end insert—

(i) electoral matters within the meaning of section 12.

;

(b) in subsection (4), omit paragraph (d).

(6) In section 12 (provision relating to membership etc of authorities), in subsection (1)—

(a) for “section 11(4)” substitute “ section 11(3) ”;

(b) at the end insert—

(l) the ordinary year of election for a parish council.

Repeal of redundant provisions

66

The following provisions (which relate to the Local Government Commission for England) are repealed—

(a) in the Local Government Act 1992 (c. 19), section 12 and Schedule 2;

(b) in the Political Parties, Elections and Referendums Act 2000 (c. 41), section 18.

General

Consequential and supplementary provision

67

(1) Schedule 4 (which contains amendments consequential on, and supplementary to, this Part) is part of this Part.

(2) The Secretary of State may by order make such other provision as the Secretary of State considers appropriate in consequence of any provision made by this Part.

(3) The power conferred in subsection (2) includes power to amend, repeal or revoke provision contained in an enactment passed or made before the day on which this Act is passed.

(4) A order under subsection (2) is to be made by statutory instrument.

(5) A statutory instrument containing an order under subsection (2) which includes provision—

(a) amending or repealing provision contained in an Act, or

(b) amending or revoking provision contained in an instrument of which a draft was required to be laid before and approved by a resolution of each House of Parliament,

may not be made unless a draft of the instrument has been laid before, and approved by a resolution of each House of Parliament.

(6) A statutory instrument containing any other order under subsection (2) is subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation

68

In this Part—

“the Electoral Commission's Boundary Committee” has the meaning given by section 60(4);

“electoral arrangements” has the meaning given in section 56(4) and (6);

“principal council” has the meaning given in section 56(3).

Part 4 — Local authority economic assessments

Local authority economic assessments

69

(1) A principal local authority in England must prepare an assessment of the economic conditions of its area.

(2) A principal local authority may revise the assessment, or any part or aspect of it, at any time.

(3) In this Part “principal local authority” means—

(a) a county council;

(b) a district council, other than a non-unitary district council;

(d) the Common Council of the City of London in its capacity as a local authority;

(e) the Council of the Isles of Scilly.

(4) In discharging its functions under this section, a principal local authority must consult such persons as it considers appropriate.

(5) Where a principal local authority is a county council for an area for which there is a district council, the following duties also apply in relation to the discharge by the county council of its functions under this section—

(a) the county council must consult and seek the participation of the district council;

(b) the county council must have regard to any material produced by the district council in the discharge of the district council's functions under section 13 of the Planning and Compulsory Purchase Act 2004 (c. 5);

(6) A principal local authority must have regard to any guidance given by the Secretary of State—

(a) as to what an assessment under this section should contain and how it should be prepared;

(b) as to when to prepare an assessment under subsection (1);

(7) Before giving guidance under subsection (6) the Secretary of State must consult—

(a) such representatives of local government as the Secretary of State considers appropriate, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(8) In subsection (3), “non-unitary district council” means a district council for an area that is part of the area of a county council.

Part 5 — Regional strategy

Regional strategy

70

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If to any extent a policy set out in a regional strategy under this Part conflicts with any other statement or information in the strategy, the conflict is to be resolved in favour of the policy.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authorities relevant to this Part

Leaders’ Boards

71

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Responsible regional authorities

72

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Sustainable development

73

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Revisions of regional strategy

Review and revision by responsible regional authorities

74

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Community involvement

75

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Examination in public

76

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Matters to be taken into account in revision

77

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Approval of revision by Secretary of State

78

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Reserve powers of Secretary of State

79

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Revision: supplementary

80

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Implementation of strategy

Implementation

81

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Effect of strategy

Regional strategy as part of the development plan

82

(1) In section 38 of the Planning and Compulsory Purchase Act 2004 (c. 5) (development plan), in subsection (3)(a), for “regional spatial strategy” substitute “ regional strategy ”.

(2) For the purposes of that section, a regional strategy under this Part is to be regarded as consisting solely of the regional spatial strategy under section 1 of the Planning and Compulsory Purchase Act 2004 that subsisted for the region concerned immediately before 1 April 2010.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duties of regional development agencies

83

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Supplementary

Guidance and directions

84

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Consequential provision

85

(1) Schedule 5 (which contains amendments consequential on this Part) is part of this Part.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General

Regulations

86

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Interpretation

87

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Part 6 — Economic prosperity boards and combined authorities

EPBs and their areas

88

(1) The Secretary of State may by order establish as a body corporate an economic prosperity board (an “EPB”) for an area that meets the following conditions.

(2) Condition A is that the area consists of the whole of two or more local government areas in England.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Condition D is that no part of the area forms part of—

(a) the area of another EPB, ...

(b) the area of a combined authority , or

(6) Condition E is that each local government area that forms part of the area was included in a scheme prepared and published under section 98.

(7) In this Part “local government area” means the area of—

(a) a county council, or

(b) a district council.

(8) An order under this section must specify the name by which the EPB is to be known.

Constitution and functions of EPBs

Constitution

89

(1) The Secretary of State may by order make provision in relation to an EPB about—

(a) the membership of the EPB;

(b) the voting powers of members of the EPB;

(2) The provision that may be made about membership includes provision about—

(a) the number and appointment of members of the EPB;

(b) the remuneration of, and pensions or allowances payable to or in respect of, any member of the EPB.

(3) The provision that may be made about voting powers includes provision for different weight to be given to the vote of different descriptions of member.

(4) The provision that may be made about executive arrangements includes provision about—

(a) the appointment of an executive;

(b) the functions of the EPB that are the responsibility of an executive;

(c) the functions of the EPB that are the responsibility of an executive and that may be discharged by a committee of the EPB or by a body other than the EPB;

(d) arrangements relating to the review and scrutiny of the discharge of functions;

(e) access to information on the proceedings of an executive of the EPB;

(f) the disapplication of section 15 of the Local Government and Housing Act 1989 (c. 42) (duty to allocate seats to political groups) in relation to an executive of the EPB or a committee of such an executive;

(g) the keeping of a record of any arrangements relating to the EPB and falling within paragraphs (a) to (f).

(5) An order under this section may not provide for the budget of an EPB to be agreed otherwise than by the EPB.

Constitution: membership and voting

90

(1) An order under section 89 that includes provision about the number and appointment of members of an EPB must provide—

(a) for a majority of the members of the EPB to be appointed by the EPB's constituent councils,

(b) for those members to be appointed from among the elected members of the constituent councils, and

(c) for each constituent council that is a representative council to appoint at least one of its elected members as a member of the EPB.

(2) For the purposes of this section—

(a) a county council is a constituent council of an EPB if the area of the county council, or part of that area, is within the EPB's area;

(b) a district council is a constituent council of an EPB if the area of the district council is within the EPB's area.

(3) For the purposes of this section, the following are representative councils in relation to an EPB—

(a) if the EPB's area coincides with or includes the whole of the area of a county council, the county council;

(b) if the EPB's area includes part of the area of a county council—

(i) the county council, or

(ii) each district council for an area within that part,

as determined by or in accordance with the order;

(4) In this Part “unitary district council” means a district council whose area is not part of the area of a county council.

(5) If an order under section 89 provides for members of an EPB to be appointed otherwise than from among the elected members of its constituent councils, the order must provide for those members to be non-voting members.

(6) The voting members of an EPB may resolve that provision made in accordance with subsection (5) is not to apply in the case of the EPB.

Exercise of local authority functions

91

(1) The Secretary of State may by order provide for a function of a local authority that is exercisable in relation to an area all or part of which is within an EPB's area to be exercisable by the EPB in relation to the EPB's area.

(2) The Secretary of State may make an order under this section only if the Secretary of State considers that the function can appropriately be exercised by the EPB.

(3) An order under this section may make provision for the function to be exercisable by the EPB either generally or subject to such conditions or limitations as may be specified in the order.

(4) An order under this section may make provision—

(a) for the function to be exercisable by the EPB instead of by the local authority, ...

(b) for the function to be exercisable by the EPB concurrently with the local authority.

(d) for the function to be exercisable by the EPB jointly with the local authority but also continue to be exercisable by the local authority alone.

(5) An EPB must perform the functions that are exercisable by the EPB by virtue of this section with a view to promoting the economic development and regeneration of its area.

(6) In this section “local authority” means—

(a) a county council, or

(b) a district council.

Funding

92

(1) The Secretary of State may by order make provision—

(a) for the costs of an EPB to be met by its constituent councils, and

(b) about the basis on which the amount payable by each constituent council is to be determined.

(2) For the purposes of this section—

(a) a county council is a constituent council of an EPB if the area of the county council, or part of that area, is within the EPB's area;

(b) a district council is a constituent council of an EPB if the area of the district council is within the EPB's area.

Accounts

93

(1) Each EPB must keep a fund to be known as the general fund.

(2) All receipts of the EPB must be carried to that fund.

(3) All liabilities falling to be discharged by the EPB must be discharged out of that fund.

(4) Accounts must be kept of—

(a) receipts carried to the general fund, and

(b) payments made out of the general fund.

Change of name

94

(1) An EPB may change its name by a resolution in accordance with this section.

(2) The resolution must be considered at a meeting of the EPB that is specially convened for the purpose.

(3) Particulars of the resolution must have been included in the notice of the meeting.

(4) The resolution must be passed at the meeting by not less than two-thirds of the members of the EPB who vote on it.

(5) An EPB that changes its name under this section must—

(a) send notice of the change to the Secretary of State, and

(b) publish the notice in such manner as the Secretary of State may direct.

(6) A change of name under this section does not affect the rights or obligations of the EPB or any other person, or render defective any legal proceedings.

(7) Any legal proceedings may be commenced or continued as if there had been no change of name.

Changes to and dissolution of an EPB's area

Changes to boundaries of an EPB’s area

95

(1) The Secretary of State may by order change the boundaries of an EPB's area by—

(a) adding a local government area to an existing area of an EPB, or

(b) removing a local government area from an existing area of an EPB.

(2) An order may be made under this section only if—

(a) the area to be created by the order meets conditions A and D in section 88, and

(b) each council to whom this section applies consents to the making of the order.

(3) This section applies to—

(a) a county council whose area, or part of whose area, is to be added to or removed from the existing area of the EPB;

(b) a district council whose area is to be added to or removed from the existing area of the EPB.

Dissolution of an EPB’s area

96

(1) The Secretary of State may by order—

(a) dissolve an EPB's area, and

(b) abolish the EPB for the area.

(2) An order may be made under this section only if a majority of the councils to whom this section applies consent to the making of the order.

(3) This section applies to—

(a) a county council whose area, or part of whose area, is within the EPB's area;

(b) a unitary district council whose area is within the EPB's area.

Requirements in connection with orders about EPBs

Review by authorities: new EPB

97

(1) Any two or more of the authorities to whom this section applies may undertake a review of the effectiveness and efficiency of arrangements to promote economic development and regeneration within the area covered by the review (“the review area”).

(2) This section applies to—

(a) a county council in England;

(b) a district council in England.

(3) Where the review is being undertaken by a county council, the review area must include—

(a) the areas of one or more district councils that are within the area of the county council, or

(b) if there are no such areas, the area of the county council.

(4) Where the review is being undertaken by a district council, the review area must include the area of the district council.

(5) The review area may also include the area of any county council or district council in England not undertaking the review.

Preparation and publication of scheme: new EPB

98

(1) This section applies where two or more of the authorities that have undertaken a review under section 97 conclude that the establishment of an EPB for an area would be likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area, and

(b) economic conditions in the area.

(2) The authorities may prepare and publish a scheme for the establishment of an EPB for the area (“the scheme area”).

(3) Subject as follows, the scheme area—

(a) must consist of or include the whole or any part of the review area,

(b) may include one or more other local government areas, and

(4) The scheme area may not include a local government area unless each appropriate authority for that area—

(a) participates in the preparation of the scheme, or

(b) consents to its inclusion in the scheme area.

(5) For this purpose—

(a) a county council is an appropriate authority for a local government area that is or forms part of the area of that county council;

(b) a district council is an appropriate authority for a local government area that is the area of that district council.

Requirements in connection with establishment of EPB

99

(1) The Secretary of State may make an order establishing an EPB for an area only if, having regard to a scheme prepared and published under section 98, the Secretary of State considers that to do so is likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area, and

(b) economic conditions in the area.

(2) Before making the order, the Secretary of State must consult—

(a) each appropriate authority, and

(b) such other persons (if any) as the Secretary of State considers appropriate.

(3) For the purposes of this section—

(a) a county council is an appropriate authority if the area of the county council, or part of that area, is within the area for which the EPB is to be established;

(b) a district council is an appropriate authority if the area of the district council is within the area for which the EPB is to be established.

(3A) Subsection (3B) applies where the Secretary of State is considering whether to make an order establishing an EPB for an area and—

(a) part of the area is separated from the rest of it by one or more local government areas that are not within the area, or

(b) a local government area that is not within the area is surrounded by local government areas that are within the area.

(3B) In deciding whether to make the order, the Secretary of State must have regard to the likely effect of the creation of the proposed EPB on economic development or regeneration in each local government area that is next to any part of the proposed EPB area.

(4) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

Review by authorities: existing EPB

100

(1) Any one or more of the authorities to whom this section applies may undertake, in relation to an existing EPB, a review of—

(a) a matter in relation to which an order may be made under section 95 or 96;

(b) a matter concerning the EPB that the EPB has power to determine.

(2) This section applies to—

(a) an EPB;

(b) a county council whose area, or part of whose area, is within an area of an EPB or could be within a proposed area of an EPB;

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The review must relate to one or more areas of an EPB or proposed areas of an EPB.

(5) In this section and section 101 a “proposed area of an EPB” means an area of an EPB that may be created by an order under section 95 (changes to boundaries of an EPB's area).

Preparation and publication of scheme: existing EPB

101

(1) This section applies where one or more of the authorities that have undertaken a review under section 100 conclude that the exercise of the power to make an order under section 95 or 96 would be likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in an area of an EPB or a proposed area of an EPB, or

(b) economic conditions in such an area.

(2) The authorities may prepare and publish a scheme relating to the power ... in question.

(3) The reference in subsection (1) to an area of an EPB includes an area that would cease to be an area of an EPB if an order were made in relation to that area under section 96 (dissolution of an EPB's area).

Requirements in connection with changes to existing EPB arrangements

102

(1) The Secretary of State may make an order under any of sections 89, 91, 92, 95 and 96 in relation to an existing EPB only if, having regard to a scheme prepared and published under section 101 or to an application made under section 101A, the Secretary of State considers that the making of the order is likely to improve—

(a) the exercise of statutory functions relating to economic development and regeneration in the area or areas to which the order relates, or

(b) economic conditions in that area or those areas.

(2) Before making the order, the Secretary of State must consult—

(a) such of the authorities mentioned in section 100(2) or section 101A(2), and

(b) such other persons (if any),

as the Secretary of State considers appropriate.

(2A) Subsection (2B) applies where the Secretary of State is considering whether to make an order under section 95 and—

(a) part of the area to be created is separated from the rest of it by one or more local government areas that are not within the area, or

(b) a local government area that is not within the area to be created is surrounded by local government areas that are within the area.

(2B) In deciding whether to make the order under section 95, the Secretary of State must have regard to the likely effect of the proposed change to the EPB's area on economic development or regeneration in each local government area that is next to any part of the area to be created by the order.

(3) In making the order, the Secretary of State must have regard to the need—

(a) to reflect the identities and interests of local communities, and

(b) to secure effective and convenient local government.

Combined authorities and their areas

103

(1) The Secretary of State may by order establish as a body corporate a combined authority for an area that meets the following conditions.

(2) Condition A is that the area consists of the whole of two or more local government areas in England.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Condition D is that no part of the area forms part of—

(a) the area of another combined authority,

(aa) the area of a combined county authority,

(b) the area of an EPB, or

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) An order under this section must specify the name by which the combined authority is to be known.

Constitution and functions: transport

104

(1) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an Integrated Transport Authority (an “ITA”) under the following provisions of the Local Transport Act 2008 (c. 26)—

(a) section 84 (constitutional arrangements);

(b) section 86 (delegation of functions of the Secretary of State);

(d) section 88 (conferral of a power to direct).

(2) Section 85(1) to (3) of that Act (provision about membership of an ITA) applies to—

(a) an order under subsection (1)(a) of this section, and

(b) the combined authority to whom that order applies,

as it applies to an order under section 84 of that Act and the ITA to whom that order applies.

(2A) But—

(a) section 84 of that Act, in its application to a combined authority by virtue of subsection (1)(a), is subject to—

(i) sections 104A and 104B and regulations under section 104C (combined authority membership), and

(ii) sections 104D (4) and 106(3CA) and (3F) (procedure for combined authority consents), and

(b) section 85(1) of that Act, in its application to a combined authority by virtue of subsection (2), is subject to subsections (2AA) and (2B).

(2AA) Section 85(1)(a) has effect as if it required an order which includes provision about the number and appointment of members of a combined authority to provide for the authority’s members, other than—

(a) the mayor (in the case of a mayoral combined authority),

(b) the authority’s non-constituent members (see section 104A), and

to be appointed by the authority’s constituent councils.

(2B) If the area of the combined authority includes the area of the whole of a county that comprises the areas of one or more district councils, the representative councils for the purposes of section 85(1)(c) of that Act (as applied to a combined authority) are either the county council or the council for each of the districts (as determined by or in accordance with the order).

(2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2D) An order under subsection (1)(c) may include provision for a function exercisable by a local authority in relation to an area all or part of which is comprised in the combined authority's area to be exercisable by the combined authority in relation to the combined authority's area.

(3) The following provisions of that Act apply in relation to a combined authority on whom functions of a kind described in section 88 of that Act are conferred as they apply in relation to an ITA on whom such functions are conferred—

(a) section 88(10) (provisions about directions);

(b) section 89(2) and (3) (power to remedy contravention of direction).

(4) Section 97 of that Act (change of name of ITA) applies to a combined authority as it applies to an ITA.

(5) The Secretary of State may by order transfer functions of an ITA to a combined authority.

(6) An order under subsection (5) may only be made in relation to functions exercisable by the ITA in relation to an area that becomes, or becomes part of, the combined authority's area by virtue of an order under this Part.

(7) The Secretary of State may by order provide for any function that is conferred or imposed on a Passenger Transport Executive by any enactment (whenever passed or made) to be exercisable by a combined authority or the executive body of a combined authority in relation to the combined authority's area.

(8) An order under subsection (7) may make provision for any function that—

(a) is conferred or imposed on an ITA by any enactment (whenever passed or made), and

(b) relates to the functions of a Passenger Transport Executive,

to be exercisable by a combined authority in relation to the combined authority's area.

(9) Schedule 5A makes provision for combined authorities to have overview and scrutiny committees and audit committees; and provision made in an order under subsection (1) is subject to that Schedule.

(10) Except as provided for by section 107ZA (7), an order under this section may be made in relation to a combined authority only with the consent of—

(a) the constituent councils, and

(b) in the case of an order in relation to an existing combined authority, the combined authority.

(11) In this section “constituent council” means—

(a) a county council the whole or any part of whose area is within the area or proposed area of the combined authority, or

(b) a district council whose area is within the area or proposed area of the combined authority.

(11A) If the only provision made under this section in an order under this Part is provision as a result of an order under section 106 (changes to boundaries of combined authority’s area)—

(a) subsection (10) does not apply to the order under this Part, and

(b) subsections (3A) to (3H) of section 106 apply in relation to the order as if it contained the provision made by the order under section 106.

(11B) If the only provision made under this section in an order under this Part is provision as a result of an order to which section 107DA (procedure for direct conferral of general functions on mayor) applies—

(a) subsection (10) does not apply to the order under this Part, and

(b) the order may be made only with the consent of the mayor for the combined authority.

(12) Subsection (10) is subject to section 106A.

Constitution and functions: economic development and regeneration

105

(1) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an EPB under section 91 (exercise of local authority functions).

(2) Section 91(5) does not apply in relation to functions exercisable by a combined authority by virtue of subsection (1).

(3) The Secretary of State may by order make in relation to a combined authority any provision that may be made in relation to an EPB under section 92 (funding).

(3ZA) But section 92, in its application to a combined authority by virtue of subsection (3), is subject to regulations under section 104C (1) (combined authority membership).

(3A) An order under this section may be made in relation to a combined authority only with the consent of—

(a) the constituent councils (as defined by section 104(11)), and

(b) in the case of an order in relation to an existing combined authority, the combined authority.

(3B) Subsection (3A) is subject to section 106A.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Changes to boundaries of a combined authority’s area

106

(1) The Secretary of State may by order change the boundaries of a combined authority's area by—

(a) adding a local government area to an existing area of a combined authority, or

(b) removing a local government area from an existing area of a combined authority.

(2) An order may be made under this section only if—

(a) the area to be created by the order meets conditions A and D in section 103, ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3A) An order under this section adding or removing a local government area to or from an existing area of a mayoral combined authority may be made only if—

(a) the relevant council in relation to the local government area consents, and

(b) the mayor for the area of the combined authority consents.

(3AA) An order under this section adding or removing a local government area to or from an existing area of a combined authority which is not a mayoral combined authority may be made only if—

(a) the relevant council in relation to the local government area consents, and

(b) the combined authority consents.

(3B) For the purposes of subsections (3A)(a) and (3AA)(a) , the “relevant council” in relation to a local government area is—

(a) if the local government area is the area of a county council, the county council;

(b) if the local government area is the area of a district council whose area does not form part of the area of a county council, the district council;

(c) if the local government area is the area of a district council whose area forms part of the area of a county council, the district council or the county council.

(3C) If there are two relevant councils in relation to a local government area by virtue of subsection (3B)(c), the condition in subsection (3A)(a) or (3AA)(a) for the relevant council to consent is met if—

(a) in the case of an order under subsection (1)(a), either or both of the relevant councils consent;

(b) in the case of an order under subsection (1)(b), both of the relevant councils consent.

(3CA) The question of whether to consent under subsection (3AA)(b) to an order under this section is to be decided at a meeting of the combined authority by a simple majority of the voting members of the authority who are present at the meeting.

(3CB) Subsection (3CA) applies instead of—

(a) any provision of an order under section 104(1) made before the coming into force of that subsection which is about the procedure applying to a decision on a question of the kind mentioned in that subsection, and

(b) any provision made by a combined authority about its constitution under such an order about such procedure.

(3D) Where an order under subsection (1)(b) is made as a result of the duty in section 105B(5) or 107B(4)—

(a) subsection (2) does not apply, and

(b) neither subsection (3A) nor subsection (3AA) applies.

(3E) Subsection (3F) applies if a combined authority has made provision about its constitution under an order under section 104(1).

(3F) A decision about any change to that provision as a result of an order under this section is to be decided at a meeting of the combined authority by a simple majority of the voting members of the authority who are present at the meeting.

(3G) Subsection (3F) applies instead of—

(a) any provision of an order under section 104(1) made before the coming into force of that subsection which is about the procedure applying to a decision on a question of the kind mentioned in that subsection, and

(b) any provision made by a combined authority about its constitution under such an order about such procedure.

(3H) A reference in this section to a voting member—

(a) includes a substitute member who may act in place of a voting member;

(b) does not include a non-constituent member.

(4) Where by virtue of an order an area ceases to be part of the area of a combined authority, the order—

(a) must make provision for designating an authority to be a local transport authority for the area for the purposes of section 108(4) of the Transport Act 2000 (c. 38), and

(b) may transfer functions to that authority from the combined authority that was formerly the local transport authority.

(5) Provision made by virtue of subsection (4) may designate different authorities for different parts of the area.

(6) The reference in subsection (4)(a) to an authority does not include an ITA or a combined county authority.

(7) Subsection (4) does not apply if the area becomes part of

(a) the integrated transport area of an ITA by virtue of an order under section 78 or 90 of the Local Transport Act 2008 (c. 26)

, or

(b) the area of a combined county authority by virtue of regulations under section 9 (1) or 25 (1) of the Levelling-up and Regeneration Act 2023.

Dissolution of a combined authority’s area

107

(1) The Secretary of State may by order—

(a) dissolve a combined authority's area, and

(b) abolish the combined authority for that area.

(2) An order may be made under this section only if—

(a) a majority of the councils to whom this subsection applies consent to the making of the order, and

(b) in the case of an order made in respect of a mayoral combined authority, the mayor for the area of the authority also consents to the making of the order.

(3) Subsection (2) applies to—

(a) a county council whose area, or part of whose area, is within the combined authority's area;

(b) a unitary district council whose area is within the combined authority's area.

(4) The order—

(a) must make provision for designating an authority to be a local transport authority for the area that was previously the combined authority's area for the purposes of section 108(4) of the Transport Act 2000 (c. 38), and

(b) may transfer functions to that authority from the combined authority that was formerly the local transport authority.

(4A) The order—

(a) may transfer functions from the combined authority to any other public authority;

(b) may provide for any function of the combined authority to no longer be exercisable in relation to the combined authority's area.

(5) Provision made by virtue of subsection (4) may designate different authorities for different parts of the area.

(6) The reference in subsection (4)(a) to an authority does not include an ITA or a combined county authority.

(7) Subsection (4) does not apply to a territory or part of a territory that becomes

(a) the integrated transport area or part of the integrated transport area of an ITA by virtue of an order under section 78 or 90 of the Local Transport Act 2008, or

(b) the area or part of the area of a combined county authority by virtue of regulations under section 9(1) or 25(1) of the Levelling-up and Regeneration Act 2023.

Requirements in connection with orders about combined authorities

Review by authorities: new combined authority

108

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparation and publication of scheme: new combined authority

109

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirements in connection with establishment of combined authority

110

(1) The Secretary of State may make an order establishing a combined authority for an area only if—

(a) the Secretary of State considers that to do so is likely to improve the economic, social and environmental well-being of some or all of the people who live or work in the area,

(aa) the Secretary of State considers that to do so is appropriate having regard to the need—

(i) to secure effective and convenient local government, and

(ii) to reflect the identities and interests of local communities,

(ab) where a proposal for the establishment of the combined authority has been submitted under section 109A, the Secretary of State considers that its establishment will achieve the purposes specified under subsection (7) of that section,

(b) the constituent councils consent, and

(1A) If a proposal for the establishment of the combined authority has been submitted under section 109A, the Secretary of State must have regard to the proposal in making the order.

(2) The Secretary of State must carry out a public consultation unless—

(a) a proposal has been prepared under section 109A,

(b) a public consultation has been carried out in connection with the proposal and the Secretary of State has been provided with a summary of the consultation responses, and

(3) In this section “constituent council” means—

(a) a county council the whole or any part of whose area is within the area for which the combined authority is to be established, or

(b) a district council whose area is within the area for which the combined authority is to be established.

(3A) Subsection (3B) applies where the Secretary of State is considering whether to make an order establishing a combined authority for an area and—

(a) part of the area is separated from the rest of it by one or more local government areas that are not within the area, or

(b) a local government area that is not within the area is surrounded by local government areas that are within the area.

(3B) In deciding whether to make the order, the Secretary of State must have regard to the likely effect of the creation of the proposed combined authority on the exercise of functions equivalent to those of the proposed combined authority's functions in each local government area that is next to any part of the proposed combined authority area.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Review by authorities: existing combined authority

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparation and publication of scheme: existing combined authority

112

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirements in connection with changes to existing combined arrangements

113

(1) The Secretary of State may make an order under section 104, 105, 105A, 106, 107, 107A, 107D or 107F in relation to an existing combined authority only if—

(a) the Secretary of State considers that to do so is likely to improve the economic, social and environmental well-being of some or all of the people who live or work in the area,

(aa) the Secretary of State considers that to do so is appropriate having regard to the need—

(i) to secure effective and convenient local government, and

(ii) to reflect the identities and interests of local communities,

(ab) where a proposal for the making of the order has been submitted under section 112A, the Secretary of State considers that making the order will achieve the purposes specified under subsection (9) of that section, and

(b) any consultation required by subsection (2) has been carried out.

(1A) If a proposal for the making of the order has been submitted under section 112A, the Secretary of State must have regard to the proposal in making the order.

(2) The Secretary of State must carry out a public consultation unless—

(a) a proposal has been prepared under section 112A,

(b) a public consultation has been carried out in connection with the proposal and the Secretary of State has been provided with a summary of the consultation responses, and

(2A) Subsection (2B) applies where the Secretary of State is considering whether to make an order under section 106 and—

(a) part of the area to be created is separated from the rest of it by one or more local government areas that are not within the area, or

(b) a local government area that is not within the area to be created is surrounded by local government areas that are within the area.

(2B) In deciding whether to make the order under section 106, the Secretary of State must have regard to the likely effect of the change to the combined authority's area on the exercise of functions equivalent to those of the combined authority's functions in each local government area that is next to any part of the area to be created by the order.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) This section does not apply to an order under section 106(1)(b) that is made as a result of the duty in section 105B(5) or 107B(4).

Supplementary

Incidental etc provision

114

(1) The Secretary of State may by order make incidental, consequential, transitional or supplementary provision for the purposes of, or in consequence of, an order under this Part or for giving full effect to such an order.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The provision that may be included in an order under this section by virtue of section 117(5) includes provision applying, with modifications, or disapplying any enactment amended by Schedule 6.

(4) An order under this section may not include provision amending or disapplying sections 15 to 17 of, and Schedule 1 to, the Local Government and Housing Act 1989 (c. 42) (political balance on local authority committees etc).

Transfer of property, rights and liabilities

115

(1) The Secretary of State may by order make provision for the transfer of property, rights and liabilities (including criminal liabilities) for the purposes of, or in consequence of, an order under this Part or for giving full effect to such an order.

(2) Property, rights and liabilities may be transferred by—

(a) the order,

(b) a scheme made by the Secretary of State under the order, or

(3) A transfer by virtue of this section may have effect—

(a) whether or not the property, rights and liabilities would otherwise be capable of being transferred;

(b) without any instrument or formality being required.

(4) The rights and liabilities which may be transferred by virtue of this section include rights and liabilities in relation to a contract of employment.

(5) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) apply to the transfer by virtue of this section (whether or not the transfer is a relevant transfer for the purposes of those regulations).

(6) An order under this section or a scheme made under it may define the property, rights and liabilities to be transferred by specifying or describing them.

(7) Provision for the transfer of property, rights and liabilities made by virtue of this section may include provision—

(a) for the creation or imposition by the Secretary of State of new rights or liabilities in respect of anything transferred;

(b) for the shared ownership or use of any property or facilities;

(d) for bodies to make agreements with respect to any property, income, rights, liabilities and expenses of, and any financial relations between, the parties to the agreement.

(8) Provision for the transfer of property, rights and liabilities made by virtue of this section may include provision—

(a) for the continuing effect of things done by the transferor in relation to anything transferred;

(b) for the continuation of things (including legal proceedings) in the process of being done, by or on behalf of or in relation to the transferor in relation to anything transferred;

(c) for references to the transferor in any agreement (whether written or not), instrument or other document in relation to anything transferred to be treated (so far as necessary for the purposes of or in consequence of the transfer) as references to the transferee.

Consequential amendments

116

(1) The Secretary of State may by order make such provision as the Secretary of State considers appropriate in consequence of any provision made by this Part.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The power conferred in subsection (1) includes power to amend, repeal or revoke provision contained in an enactment passed or made before the day on which this Act is passed.

Orders

117

(1) Orders and regulations under this Part must be made by statutory instrument.

(1A) An order or regulations under this Part may make different provision for different authorities or descriptions of authority or otherwise for different purposes.

(2) An order to which subsection (2A) applies may not be made unless a draft of the statutory instrument containing the order (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

(2A) This subsection applies to an order under this Part other than—

(a) an order under section 113C(1) that is made only for the purpose mentioned in section 113C(5)(b),

(b) an order under section 113C(2) that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose, or

(c) an order under section 116 that amends or revokes provision contained in an instrument subject to annulment by resolution of either House of Parliament.

(3) A statutory instrument that—

(a) contains an order under this Part, and

(b) is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament,

is subject to annulment by resolution of either House of Parliament.

(3A) A statutory instrument that contains (whether alone or with any other provisions) regulations under section 104C(1), 104C(4), or 107K (1) may not be made unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.

(3B) A statutory instrument that—

(a) contains regulations under section 109A (8) or 112A (10), and

(b) is not by virtue of subsection (3A) subject to a requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament,

is subject to annulment by resolution of either House of Parliament.

(4) If a draft of an order under this Part or of regulations under section 104C (1) or (4) would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.

(5) An order under any provision of this Part, other than an order under section 116 or an order mentioned in subsection (2A)(a) or (b), may include provision amending, applying (with or without modifications), disapplying, repealing or revoking any enactment whenever passed or made.

Guidance

118

(1) The Secretary of State may give guidance about anything that could be done by an authority to whom this section applies under or by virtue of this Part.

(2) An authority to whom this section applies must have regard to any guidance given under this section in exercising any function conferred or imposed by or by virtue of this Part.

(3) Any guidance under this section must be given in writing and may be varied or revoked by further guidance in writing.

(4) Any such guidance may make different provision for different cases and different provision for different areas.

(5) This section applies to—

(a) a county council;

(b) a district council;

(d) an ITA;

(e) a combined authority.

(f) a combined county authority.

Amendments relating to EPBs and combined authorities

119

Schedule 6 (amendments relating to EPBs and combined authorities) is part of this Part.

Interpretation

120

In this Part—

“associate member” has the meaning given by section 104B(1);

“combined authority” means an authority established under section 103(1);

“combined county authority” means a combined county authority established under section 9 (1) of the Levelling-up and Regeneration Act 2023;

“deputy mayor” has the meaning given by section 107C(7);

“general functions” has the meaning given by section 107D(2);

“EPB” has the meaning given by section 88(1);

“fire and rescue authority” means a fire and rescue authority under the Fire and Rescue Services Act 2004;

“ITA” has the meaning given by section 104(1);

“local government area” has the meaning given by section 88(7);

“mayor”, in relation to the area of a combined authority, means the mayor for the area of the authority by virtue of an order under section 107A(1);

“mayoral combined authority” has the meaning given by section 107A(8);

“nominating body” means a body designated under section 104A(1);

“non-constituent member” has the meaning given by section 104A(3);

“PCC functions” has the meaning given by section 107F(3);

“unitary district council” has the meaning given by section 90(4).

Part 7 — Multi-area agreements

Basic concepts

Multi-area agreements

121

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Local authorities

122

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Partner authorities

123

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparation and approval of multi-area agreements

Proposal for multi-area agreement

124

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Direction to prepare and submit draft multi-area agreement

125

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparation of draft multi-area agreement

126

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval of draft multi-area agreement

127

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Submission of existing multi-area agreement

128

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval of existing multi-area agreement

129

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of multi-area agreements

Duty to have regard to improvement targets

130

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Revision of multi-area agreements

Responsible authorities

131

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Revision proposals

132

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparation of revision proposal

133

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval of revision proposal

134

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information about multi-area agreements

Duty to publish information about multi-area agreement

135

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary and general

Consultation on guidance

136

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

137

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 8 — Construction contracts

Application of construction contracts legislation

138

(1) The Housing Grants, Construction and Regeneration Act 1996 (c. 53) is amended as follows.

(2) In section 106 (provisions not applicable to contract with residential occupiers), in subsection (1), omit paragraph (b) and the preceding “or”.

(3) After that section insert—

(106A) (1) The Secretary of State may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations (not being operations in Wales) which is specified in the order. (2) The Welsh Ministers may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations in Wales which is specified in the order. (3) The Scottish Ministers may by order provide that any or all of the provisions of this Part, so far as extending to Scotland, shall not apply to any description of construction contract which is specified in the order. (4) An order under this section shall not be made unless a draft of it has been laid before and approved by resolution of— (a) in the case of an order under subsection (1), each House of Parliament; (b) in the case of an order under subsection (2), the National Assembly for Wales; (c) in the case of an order under subsection (3), the Scottish Parliament.

(4) In section 146 (orders etc)—

(a) in subsection (2), for “Secretary of State” substitute “ the authority making them ”;

(b) in subsection (3)(a), after “106(4)” insert “ , 106A ”.

Requirement for construction contracts to be in writing

139

(1) In the Housing Grants, Construction and Regeneration Act 1996, section 107 (provisions applicable only to contracts in writing) is repealed.

(2) In section 108 of that Act (right to refer disputes to adjudication)—

(a) in subsection (2), after “The contract shall” insert “ include provision in writing so as to ”;

(b) in subsections (3) and (4), after “provide” insert “ in writing ”.

Adjudicator’s power to make corrections

140

In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), in section 108 (right to refer disputes to adjudication), after subsection (3) insert—

(3A) The contract shall include provision in writing permitting the adjudicator to correct his decision so as to remove a clerical or typographical error arising by accident or omission.

Adjudication costs

141

In the Housing Grants, Construction and Regeneration Act 1996, after section 108 insert—

(108A) (1) This section applies in relation to any contractual provision made between the parties to a construction contract which concerns the allocation as between those parties of costs relating to the adjudication of a dispute arising under the construction contract. (2) The contractual provision referred to in subsection (1) is ineffective unless— (a) it is made in writing, is contained in the construction contract and confers power on the adjudicator to allocate his fees and expenses as between the parties, or (b) it is made in writing after the giving of notice of intention to refer the dispute to adjudication.

Determination of payments due

142

(1) In the Housing Grants, Construction and Regeneration Act 1996, section 110 (dates for payment) is amended as follows.

(2) After subsection (1) insert—

(1A) The requirement in subsection (1)(a) to provide an adequate mechanism for determining what payments become due under the contract, or when, is not satisfied where a construction contract makes payment conditional on— (a) the performance of obligations under another contract, or (b) a decision by any person as to whether obligations under another contract have been performed. (1B) In subsection (1A)(a) and (b) the references to obligations do not include obligations to make payments (but see section 113). (1C) Subsection (1A) does not apply where— (a) the construction contract is an agreement between the parties for the carrying out of construction operations by another person, whether under sub-contract or otherwise, and (b) the obligations referred to in that subsection are obligations on that other person to carry out those operations.

(3) After subsection (1C) (as inserted by subsection (2) above) insert—

(1D) The requirement in subsection (1)(a) to provide an adequate mechanism for determining when payments become due under the contract is not satisfied where a construction contract provides for the date on which a payment becomes due to be determined by reference to the giving to the person to whom the payment is due of a notice which relates to what payments are due under the contract.

Notices relating to payment

143

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), in section 109 (entitlement to stage payments), in subsection (4), for “under the contract” substitute “ provided for by the contract ”.

(2) In section 110 of that Act (dates for payment), omit the following—

(a) subsection (2), and

(b) in subsection (3), “or (2)”.

(3) After section 110 of that Act insert—

(110A) (1) A construction contract shall, in relation to every payment provided for by the contract— (a) require the payer or a specified person to give a notice complying with subsection (2) to the payee not later than five days after the payment due date, or (b) require the payee to give a notice complying with subsection (3) to the payer or a specified person not later than five days after the payment due date. (2) A notice complies with this subsection if it specifies— (a) in a case where the notice is given by the payer— (i) the sum that the payer considers to be or to have been due at the payment due date in respect of the payment, and (ii) the basis on which that sum is calculated; (b) in a case where the notice is given by a specified person— (i) the sum that the payer or the specified person considers to be or to have been due at the payment due date in respect of the payment, and (ii) the basis on which that sum is calculated. (3) A notice complies with this subsection if it specifies— (a) the sum that the payee considers to be or to have been due at the payment due date in respect of the payment, and (b) the basis on which that sum is calculated. (4) For the purposes of this section, it is immaterial that the sum referred to in subsection (2)(a) or (b) or (3)(a) may be zero. (5) If or to the extent that a contract does not comply with subsection (1), the relevant provisions of the Scheme for Construction Contracts apply. (6) In this and the following sections, in relation to any payment provided for by a construction contract— - “payee” means the person to whom the payment is due; - “payer” means the person from whom the payment is due; - “payment due date” means the date provided for by the contract as the date on which the payment is due; - “specified person” means a person specified in or determined in accordance with the provisions of the contract. (110B) (1) This section applies in a case where, in relation to any payment provided for by a construction contract— (a) the contract requires the payer or a specified person to give the payee a notice complying with section 110A(2) not later than five days after the payment due date, but (b) notice is not given as so required. (2) Subject to subsection (4), the payee may give to the payer a notice complying with section 110A(3) at any time after the date on which the notice referred to in subsection (1)(a) was required by the contract to be given. (3) Where pursuant to subsection (2) the payee gives a notice complying with section 110A(3), the final date for payment of the sum specified in the notice shall for all purposes be regarded as postponed by the same number of days as the number of days after the date referred to in subsection (2) that the notice was given. (4) If— (a) the contract permits or requires the payee, before the date on which the notice referred to in subsection (1)(a) is required by the contract to be given, to notify the payer or a specified person of— (i) the sum that the payee considers will become due on the payment due date in respect of the payment, and (ii) the basis on which that sum is calculated, and (b) the payee gives such notification in accordance with the contract, that notification is to be regarded as a notice complying with section 110A(3) given pursuant to subsection (2) (and the payee may not give another such notice pursuant to that subsection).

Requirement to pay notified sum

144

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), for section 111 (notice of intention to withhold payment) substitute—

(111) (1) Subject as follows, where a payment is provided for by a construction contract, the payer must pay the notified sum (to the extent not already paid) on or before the final date for payment. (2) For the purposes of this section, the “notified sum” in relation to any payment provided for by a construction contract means— (a) in a case where a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice; (b) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice; (c) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with section 110B(2), the amount specified in that notice. (3) The payer or a specified person may in accordance with this section give to the payee a notice of the payer's intention to pay less than the notified sum. (4) A notice under subsection (3) must specify— (a) the sum that the payer considers to be due on the date the notice is served, and (b) the basis on which that sum is calculated. It is immaterial for the purposes of this subsection that the sum referred to in paragraph (a) or (b) may be zero. (5) A notice under subsection (3)— (a) must be given not later than the prescribed period before the final date for payment, and (b) in a case referred to in subsection (2)(b) or (c), may not be given before the notice by reference to which the notified sum is determined. (6) Where a notice is given under subsection (3), subsection (1) applies only in respect of the sum specified pursuant to subsection (4)(a). (7) In subsection (5), “prescribed period” means— (a) such period as the parties may agree, or (b) in the absence of such agreement, the period provided by the Scheme for Construction Contracts. (8) Subsection (9) applies where in respect of a payment— (a) a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract (and no notice under subsection (3) is given), or (b) a notice under subsection (3) is given in accordance with this section, but on the matter being referred to adjudication the adjudicator decides that more than the sum specified in the notice should be paid. (9) In a case where this subsection applies, the decision of the adjudicator referred to in subsection (8) shall be construed as requiring payment of the additional amount not later than— (a) seven days from the date of the decision, or (b) the date which apart from the notice would have been the final date for payment, whichever is the later. (10) Subsection (1) does not apply in relation to a payment provided for by a construction contract where— (a) the contract provides that, if the payee becomes insolvent the payer need not pay any sum due in respect of the payment, and (b) the payee has become insolvent after the prescribed period referred to in subsection (5)(a). (11) Subsections (2) to (5) of section 113 apply for the purposes of subsection (10) of this section as they apply for the purposes of that section.

(2) In section 112 of that Act (right to suspend performance for non-payment)—

(a) in subsection (1), for the words from “Where” to “given” substitute “ Where the requirement in section 111(1) applies in relation to any sum but is not complied with, ”;

(b) in subsection (3), for “the amount due” substitute “ the sum referred to in subsection (1) ”.

Suspension of performance for non-payment

145

(1) In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section 112 (right to suspend performance for non-payment) is amended as follows.

(2) In subsection (1), after “performance of” insert “ any or all of ”.

(3) After subsection (3) insert—

(3A) Where the right conferred by this section is exercised, the party in default shall be liable to pay to the party exercising the right a reasonable amount in respect of costs and expenses reasonably incurred by that party as a result of the exercise of the right.

(4) In subsection (4), after “pursuance of” insert “ , or in consequence of the exercise of, ”.

Part 9 — Final

Repeals

146

(1) Schedule 7 contains repeals.

(2) The repeal by this Act of sections 17, 19 and 26 of the Local Government Act 1992 (c. 19) does not affect the continuing effect of orders and regulations made under those sections.

(3) For the purposes of this Act—

(a) the repeals in Part 1 of Schedule 7 are part of Chapter 6 of Part 1 (politically restricted posts);

(b) the repeal in Part 2 of Schedule 7 is part of Chapter 3 of Part 2 (audit of entities connected with local authorities);

(d) the repeals in Part 4 of Schedule 7 are part of Part 5 (regional strategy);

(e) the repeals in Part 5 of Schedule 7 are part of Part 8 (construction contracts).

Extent

147

(1) Parts 1 to 7 extend to England and Wales only, except that—

(a) an amendment or repeal effected by any of those Parts has the same extent as the provision amended or repealed, and

(b) sections 67(2) to (6), ... 114, 116 and 117 (powers to make consequential provision etc) extend also to Scotland and Northern Ireland.

Paragraph (a) does not apply to Chapter 6 of Part 1 (which accordingly extends to England and Wales only).

(2) Part 8 extends to England and Wales and Scotland.

(3) This Part extends to England and Wales, Scotland and Northern Ireland.

Commencement: general

148

(1) In Part 1 (democracy and involvement)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Chapter 3 comes into force on a day appointed by the Secretary of State;

(d) Chapters 5 and 6 come into force at the end of the period of two months beginning with the day on which this Act is passed.

(2) In Part 2 (local authorities: governance and audit)—

(a) in Chapter 1—

(i) section 31 comes into force on a day appointed by the Secretary of State;

(ii) sections 32 and 33 come into force at the end of the period of two months beginning with the day on which this Act is passed;

(b) Chapters 2 and 3 come into force—

(i) in relation to England, on a day appointed by the Secretary of State;

(ii) in relation to Wales, on a day appointed by the Welsh Ministers.

(3) In Part 3 (local government boundary and electoral change)—

(a) sections 62, 64 and 68 and Schedule 3 come into force on the day on which this Act is passed;

(b) the remaining provisions come into force on a day appointed by the Secretary of State.

(4) Part 4 (local authority economic assessment) comes into force on a day appointed by the Secretary of State.

(5) Part 5 (regional strategy) comes into force on a day appointed by the Secretary of State.

(6) Part 6 (economic prosperity boards and combined authorities) comes into force on a day appointed by the Secretary of State.

(7) Part 7 (multi-area agreements) comes into force at the end of the period of two months beginning with the day on which this Act is passed.

(8) Part 8 (construction contracts) comes into force as specified in section 149.

(9) This Part comes into force on the day on which this Act is passed.

(10) Any power to appoint a day under this section—

(a) includes power to appoint different days for different purposes;

(b) includes power to make transitional provision or savings;

Commencement: construction contracts

149

(1) Part 8 comes into force, so far as extending to England and Wales—

(a) on a day appointed by the Welsh Ministers, in relation to construction contracts which relate to the carrying out of construction operations in Wales;

(b) on a day appointed by the Secretary of State, in relation to other construction contracts.

(2) Part 8 comes into force, so far as extending to Scotland, on a day appointed by the Scottish Ministers.

(3) The amendments made by Part 8, so far as extending to England and Wales, do not apply—

(a) in relation to construction contracts which relate to the carrying out of construction operations in Wales and are entered into before the day appointed under subsection (1)(a), or

(b) in relation to other construction contracts which are entered into before the day appointed under subsection (1)(b).

(4) The amendments made by Part 8, so far as extending to Scotland, do not apply in relation to construction contracts which are entered into before the day appointed under subsection (2).

(5) In this section “construction contracts” and “construction operations” have the same meanings as in Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53).

(6) Any power to appoint a day under this section—

(a) includes power to appoint different days for different purposes;

(b) includes power to make transitional provision or savings;

Short title

150

This Act may be cited as the Local Democracy, Economic Development and Construction Act 2009.

Schedule 1

Members

1

(1) The Local Government Boundary Commission for England (“the Commission”) is to consist of—

(a) the chair of the Commission, and

(b) at least four and no more than eleven other members (“ordinary members”).

(2) The ordinary members are to be appointed by Her Majesty on the recommendation of the Secretary of State.

(3) The following may not be appointed as an ordinary member—

(a) a member of a registered party;

(b) a person who is, or has at any time with the last ten years been, an officer or employee of a registered party or of any accounting unit of such a party;

(c) a person who holds, or has at any time within the last ten years held, a relevant elective office (within the meaning of Schedule 7 to the Political Parties, Elections and Referendums Act 2000 (c. 41) (“the 2000 Act”));

(d) a person who has at any time within the last ten years been named—

(i) as a donor in the register of donations reported under Chapter 3 or 5 of Part 4 of the 2000 Act, or

(ii) as a participant in the register of recordable transactions reported under Part 4A of that Act.

(4) A person may not be appointed as an ordinary member for a period of more than five years at any one time.

(5) Subject to the provisions of this paragraph, an ordinary member holds office—

(a) for the term for which the ordinary member is appointed, and

(b) otherwise in accordance with the terms of their appointment.

(6) An ordinary member ceases to hold office if—

(a) the ordinary member consents to being nominated as a candidate at a relevant election (within the meaning of Part 2 of the 2000 Act) or to being included in a registered party's list of candidates at such an election,

(b) the ordinary member takes up any office or employment in or with—

(i) a registered party or any accounting unit of such a party,

(ii) a recognised third party (within the meaning of Part 6 of the 2000 Act), or

(iii) a permitted participant (within the meaning of Part 7 of that Act),

(c) the ordinary member is named as a donor in the register of donations reported under Chapter 3 or 5 of Part 4 of the 2000 Act or in any statement of donations included in a return delivered to the Electoral Commission under section 98 or 122 of that Act,

(d) the ordinary member is named as a participant in the register of recordable transactions reported under Part 4A of that Act, or

(e) the ordinary member becomes a member of a registered party.

(7) An ordinary member may, on the member's request, be relieved of office by Her Majesty.

(8) An ordinary member may, on the recommendation of the Secretary of State, be removed from office by Her Majesty on any of the following grounds—

(a) failure to discharge the functions of membership for a continuous period of at least three months;

(b) failure to comply with the terms of appointment;

(d) being an undischarged bankrupt or having their estate sequestrated in Scotland and not being discharged;

(e) making an arrangement or composition contract with, or granting a trust deed for, their creditors;

(f) otherwise being unfit to hold office or unable to carry out the functions of membership.

(9) No-one may serve as an ordinary member for more than ten years (continuously or otherwise).

(10) Service as an ordinary member is not service in the civil service of the State.

Chair

2

(1) The chair of the Commission is to be appointed by Her Majesty on an Address from the House of Commons.

(2) A motion for such an Address may be made only if—

(a) the Speaker of the House of Commons agrees that the motion may be made, and

(b) the person whose appointment is proposed in the motion has been selected in accordance with a procedure put in place and overseen by the Speaker's Committee (see section 2 of the 2000 Act).

(3) Such an Address must specify the period, not exceeding five years, for which the proposed chair is to be appointed.

(4) A person may not be appointed as chair under sub-paragraph (1) if by virtue of paragraph 1(3)(a) to (d) that person may not be appointed as an ordinary member.

(5) Subject to the provisions of this paragraph, the chair holds office—

(a) for the period of their appointment (which is to be that specified under sub-paragraph (3)), and

(b) otherwise in accordance with the terms of their appointment.

(6) The chair ceases to hold office on the occurrence of such an event as is mentioned in any of paragraphs (a) to (e) of paragraph 1(6).

(7) The chair may, on the chair's request, be relieved of office as chair by Her Majesty.

(8) The chair may be removed from office by Her Majesty on an Address from the House of Commons.

(9) No motion may be made for such an Address unless the Speaker's Committee have presented a report to the House of Commons stating that the Speaker's Committee are satisfied that one or more of the following grounds is made out in relation to the chair—

(a) failure to discharge the functions of their office for a continuous period of at least three months;

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