English Devolution and Community Empowerment Act 2026

Schedule 1A (1) (1) The Local Audit Office is to consist of— (a) the Chair (who is to be a non-executive member), (b) at least 5 other non-executive members, (c) the Controller of Local Audit (being an executive member by virtue of paragraph 4), and (d) any individuals who are executive members by virtue of paragraph 5. (2) The Secretary of State and the Office must, so far as practicable, exercise their powers so as to ensure that the number of non-executive members is at all times greater than the number of executive members. (2) (1) The non-executive members (including the Chair) are to be appointed by the Secretary of State. (2) An employee of the Office may not be appointed. (3) Appointment is to be for a fixed term not exceeding 5 years. (4) An individual may be appointed no more than twice. (5) Subject to the other provisions of this Schedule, an individual is to hold office as a non-executive member in accordance with the terms of the individual’s appointment. (6) A non-executive member may resign by giving written notice to the Secretary of State. (7) The Secretary of State may by written notice remove a non-executive member from office on the grounds that— (a) the member has without reasonable excuse failed to carry out the functions of the office, or (b) in the opinion of the Secretary of State, the member is otherwise unable, unfit or unwilling to carry out those functions. (8) A non-executive member who becomes an employee of the Office ceases to be a non-executive member. (3) (1) The Local Audit Office must make, or make provision for, such of the following payments (in such amounts and in such circumstances) as the Secretary of State may determine. (2) The payments are those of— (a) remuneration, pensions, allowances and gratuities in respect of an individual’s service as a non-executive member, and (b) compensation in respect of an individual’s ceasing to be a non-executive member. (3) The Secretary of State may determine that a payment within sub-paragraph (2)(b) is to be made only in a case where the Secretary of State considers there to be special circumstances. (4) (1) The Local Audit Office must employ an individual to act as its chief executive officer. (2) That individual— (a) is to have the title of the Controller of Local Audit, and (b) is by virtue of the individual’s employment an executive member of the Office. (3) The Office must consult the Secretary of State before appointing the Controller. (5) (1) The Local Audit Office may from time to time— (a) designate for the purposes of this paragraph roles in which individuals are or are to be employed by the Office; (b) revoke such a designation. (2) The Office must consult the Secretary of State before making or revoking a designation. (3) An individual employed by the Office in a designated role is by virtue of that employment an executive member of the Office. (6) (1) The Local Audit Office may employ staff and make other arrangements for its staffing. (2) That employment, or those arrangements, may be on whatever terms the Office considers appropriate (including terms as to remuneration, pensions or other financial matters). (3) The Secretary of State may from time to time— (a) designate for the purposes of sub-paragraph (4) roles in which individuals serve or are to serve as staff of the Office; (b) revoke such a designation. (4) The Office may not make a payment in respect of an individual’s service in a designated role except in accordance with an agreement whose terms, so far as they relate to such payments, have been approved by the Secretary of State. (7) (1) The Local Audit Office may appoint committees. (2) A committee of the Office may appoint sub-committees. (3) Members of a committee or sub-committee do not have to be members of the Office. (4) Members of a sub-committee do not have to be members of the appointing committee. (5) The Office may pay such remuneration and allowances as it may determine to any person who— (a) is a member of a committee or a sub-committee, but (b) is not a member of the Office or a member of its staff. (8) (1) The Local Audit Office may (subject to sub-paragraph (5)) delegate any of its functions to— (a) a committee or sub-committee, (b) a member of the Office, or (c) a member of the Office’s staff. (2) A committee may delegate any of its functions to— (a) a sub-committee appointed by it, (b) a member of the committee, or (c) a member of the Office’s staff. (3) A sub-committee may delegate any of its functions to— (a) a member of the sub-committee, or (b) a member of the Office’s staff. (4) A delegation under this paragraph— (a) may be limited in extent or made subject to conditions, and (b) does not prevent the delegator from exercising the function concerned. (5) The Office may not delegate its function of— (a) appointing the Controller of Local Audit, (b) making or revoking the designation of a role for the purposes of paragraph 5, or (c) adopting— (i) a statement of accounts under paragraph 13, (ii) a business plan or corporate strategy under paragraph 14, or (iii) an annual report under paragraph 15. (9) (1) The Local Audit Office may determine its own procedure (including quorum) and that of its committees and sub-committees. (2) The validity of any proceedings of the Office is not affected by any vacancy or defective appointment. (10) The Local Audit Office may do anything it thinks appropriate for the purposes of, or in connection with, its functions. (11) (1) The Local Audit Office is not to be regarded— (a) as the servant or agent of the Crown, or (b) as enjoying any status, immunity or privilege of the Crown. (2) The Office’s property is not to be regarded as property of, or property held on behalf of, the Crown. (3) Service as a member, or a member of staff, of the Office is not service in the civil service of the State. (12) (1) The application of the Local Audit Office’s seal must be authenticated by a signature of— (a) a member of the Office, or (b) another person authorised for that purpose by the Office. (2) A document purporting to be duly executed under the Office’s seal or signed on its behalf— (a) is to be received in evidence, and (b) is to be taken to be executed or signed in that way, unless the contrary is shown. (13) (1) The Local Audit Office must— (a) keep proper accounts and proper records in relation to them, and (b) prepare and adopt a statement of accounts in respect of each financial year. (2) The Office must send a copy of each statement of accounts to the Secretary of State and the Comptroller and Auditor General as soon as practicable after the end of the financial year to which the statement relates. (3) The Comptroller and Auditor General must— (a) examine, certify and report on each statement of accounts, and (b) send a copy of each report and certified statement to the Secretary of State. (4) The Secretary of State must lay before Parliament a copy of each such report and certified statement. (14) (1) The Local Audit Office must have— (a) a business plan, and (b) a corporate strategy. (2) The business plan is to relate to a single financial year and is to be published before the start of that year. (3) The corporate strategy is to relate to a period of between 3 and 5 years and must be published before the expiry of the previous strategy. (4) The Office may revise its business plan or corporate strategy, and must publish any revision. (15) (1) As soon as reasonably practicable after the end of each financial year, the Local Audit Office must prepare and adopt a report on the exercise of its functions during that financial year. (2) The Office must send the report to the Secretary of State. (3) The Secretary of State must lay the report before Parliament.

Part 2 — Transitional provision

Initial appointment of Controller of Local Audit

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• (1) For the purpose of constituting the Local Audit Office—

• (a) the Secretary of State must nominate an individual to be the first Controller of Local Audit;

• (b) the nominated individual is to become an executive member of the Office;

• (c) the Office must employ that individual to serve as its chief officer; and

• (d) the individual’s position as executive member is then to continue under paragraph 4(2)(b) of Schedule 1A to the Local Audit and Accountability Act 2014 (inserted by paragraph 1 of this Schedule).

• (2) The Secretary of State may direct the Office as to the terms on which the nominated individual is to be employed.

Initial business plans and corporate strategy

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• (1) The provision that may be made under section 108(9)(transitional or saving provision in relation to commencement) includes provision disapplying or modifying the duty of the Local Audit Office under paragraph 14(1)(a) and (2) (requirement for business plan) in relation to—

• (a) the financial year in which the Office is established, or

• (b) the following financial year.

• (2) The first corporate strategy of the Office must be published as soon as reasonably practicable after it is established.

Staff transfer schemes

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• (1) The Secretary of State may make one or more schemes under which individuals employed by—

• (a) the National Audit Office,

• (b) The Financial Reporting Council Limited (a company limited by guarantee with the registered number 02486368), or

• (c) Public Sector Audit Appointments Limited (a company limited by guarantee with the registered number 09178094),

become employees of the Local Audit Office.

• (2) A scheme under sub-paragraph (1) is referred to in this paragraph as a “staff transfer scheme”.

• (3) A staff transfer scheme may make—

• (a) provision applying or modifying, or dealing with the same subject-matter as, any provision of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);

• (b) supplementary, incidental or consequential provision.

• (4) A staff transfer scheme must allow each individual to whom it applies to choose not to become an employee of the Local Audit Office.

• (5) A scheme under sub-paragraph (1) may provide—

• (a) for the scheme to be modified by agreement after it comes into effect;

• (b) for any such modifications to have effect from the date when the original scheme comes into effect.

Property transfer schemes

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• (1) The Secretary of State may make one or more schemes for the transfer of property, rights and liabilities from Public Sector Audit Appointments Limited (a company limited by guarantee with the registered number 09178094) (“PSAA”) to the Local Audit Office.

• (2) A scheme under sub-paragraph (1) is referred to in this paragraph as a “property transfer scheme”.

• (3) The things that may be transferred under a transfer scheme include—

• (a) property, rights and liabilities that could not otherwise be transferred;

• (b) property acquired, and rights and liabilities arising, after the making of the scheme.

• (4) A transfer scheme may—

• (a) create rights, or impose liabilities, in relation to property or rights transferred;

• (b) make provision about the continuing effect of things done by PSAA in respect of anything transferred;

• (c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to PSAA in respect of anything transferred;

• (d) make provision for references to PSAA in an instrument or other document in respect of anything transferred to be treated as references to the Local Audit Office;

• (e) make provision for the shared ownership or use of property;

• (f) make other consequential, supplementary, incidental or transitional provision.

• (5) A transfer scheme may provide—

• (a) for modifications by agreement;

• (b) for modifications to have effect from the date when the original scheme came into effect.

• (6) In this paragraph, references to the transfer of property include the grant of a lease.

Part 3 — Application of other legislation

Public Records Act 1958 (c. 51)

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In Part 2 of the Table in paragraph 3 of Schedule 1 to the Public Records Act 1958 (establishments and organisations whose records are public records), at the appropriate place insert—

The Local Audit Office.

Parliamentary Commissioner Act 1967 (c. 13)

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In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation), at the appropriate place insert—

• The Local Audit Office.

House of Commons Disqualification Act 1975 (c. 24)

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In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies all members of which are disqualified), at the appropriate place insert—

• The Local Audit Office.

Freedom of Information Act 2000 (c. 36)

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In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public bodies), at the appropriate place insert—

• The Local Audit Office.

Equality Act 2010 (c. 15)

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In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to the public sector equality duty), under the heading “Regulators”, at the appropriate place insert—

• The Local Audit Office.

Schedule 35 — Local audit: registration bodies, registered providers and qualifications

In the Local Audit and Accountability Act 2014, after Schedule 1A (inserted by Schedule 34 to this Act) insert—

Schedule 1B (1) (1) An external registration body must comply with any written request by the Local Audit Office to be provided with information. (2) Such a request may relate to information as it exists in the future (for instance, information about a future occurrence once it has occurred or about a future period once it has elapsed). (3) The Office may make such a request only if the Office reasonably requires the information concerned in connection with the performance of its functions. (2) (1) If the Local Audit Office considers that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5), the Office may give the body a direction under this paragraph. (2) A direction under this paragraph is one directing the body to take steps that the Office considers will— (a) secure that the requirement in question is complied with, or (b) mitigate the effect, or prevent the recurrence, of the failure of compliance. (3) Such a step— (a) must be one that the body has the power to take; (b) may consist of not doing something. (4) A direction under this paragraph must— (a) explain the Office’s reasons for giving the direction, and (b) specify the time by which the direction must be complied with. (3) (1) If the Local Audit Office considers that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5), the Office may impose a financial penalty on the body. (2) A financial penalty is imposed by giving the body a written notice requiring the body to pay the Office a financial penalty of a sum specified in the notice. (3) Such a notice must— (a) explain the Office’s reasons for imposing the penalty, and (b) specify the time by which, and manner in which, the penalty must be paid. (4) An external registration body must, as soon as practicable after the end of a financial year, notify the Office of its total income in that year from fees charged under section 6A(5). (5) The amount of a penalty imposed on a body under this paragraph may not exceed 30% of the sum last notified by the body under sub-paragraph (4). (4) (1) Before giving a direction under paragraph 2 or imposing a penalty under paragraph 3, the Local Audit Office must— (a) give the body a notice of intent, and (b) consider any representations made by the body in response to (and in accordance with) that notice. (2) A notice of intent is a notice that— (a) states the Office’s intention to give the direction or impose the penalty, (b) sets out the intended terms of the direction or of the notice imposing the penalty, (c) explains the Office’s reasons for intending to give the direction or impose the penalty, and (d) specifies the time by which, and manner in which, representations may be made. (3) Where the Office has given a direction under paragraph 2 or imposed a penalty under paragraph 3, the Office may by written notice given to that body— (a) cancel the direction or penalty, or (b) vary the direction, or the notice imposing the penalty, in any way that does not make it more onerous. (4) The Office must publish— (a) a direction under paragraph 2, (b) a notice imposing a penalty under paragraph 3, and (c) any notice cancelling or varying such a direction or notice. (5) But it must do so only after the direction or penalty can no longer be cancelled or varied on appeal (ignoring any possibility of an appeal out of time). (6) If a penalty imposed under paragraph 3 is not paid in time— (a) the penalty (or the unpaid part of it) carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838; (b) the Office may recover the penalty (or the unpaid part of it), with the interest, as a debt. (5) (1) An external registration body may appeal to the High Court against a direction given to it under paragraph 2 or a penalty imposed on it under paragraph 3. (2) The grounds on which an appeal may be brought are— (a) that the failure of compliance on the grounds of which the direction was given or the penalty was imposed did not occur, or (b) that any of the following is unreasonable— (i) the decision to give the direction or impose the penalty; (ii) any of the terms of the direction; (iii) the amount of the penalty, or the time or manner of its payment. (3) If satisfied that any of those grounds is made out, the court must allow the appeal and do whichever of the following it considers appropriate— (a) cancel the direction or penalty, or (b) vary the direction or the notice imposing the penalty. (4) Otherwise, the court must dismiss the appeal. (5) The court may— (a) make an interim order suspending the effect of a direction or penalty appealed against under this paragraph; (b) if it allows an appeal under this paragraph against a penalty, make any order as to interest that it considers appropriate (including an order varying the effect of paragraph 4(6)(a)). (6) (1) This paragraph applies if the High Court is satisfied, on an application by the Local Audit Office, that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5). (2) The court may order the body to take steps that the court considers will secure that the requirement in question is complied with. (3) Such a step— (a) must be one that the body has the power to take; (b) may consist of not doing something. (4) This court may not make an order under this paragraph in respect of the requirement to comply with a direction under paragraph 2 unless it is satisfied that the failure of compliance on the ground of which the direction was given did in fact occur. (7) (1) If it appears to the Secretary of State or the Local Audit Office— (a) that any action proposed to be taken by an external registration body would be incompatible with assimilated obligations or any other international obligations of the United Kingdom, or (b) that any action which an external registration body has power to take is required for the purpose of implementing any such obligations, the Secretary of State or the Office may direct the body not to take or, as the case may be, to take the action in question. (2) A direction under this paragraph— (a) may include such supplementary or incidental requirements as the Secretary of State or the Office thinks necessary or expedient, and (b) may be varied or cancelled by written notice to the body concerned. (3) A direction under this paragraph is enforceable by injunction issued by the High Court on the application of the Secretary of State or the Office. (8) (1) No person within sub-paragraph (2) is to be liable in damages for anything done or omitted in the discharge or purported discharge of functions to which this sub-paragraph applies. (2) The persons within this subsection are— (a) an external registration body, (b) an officer or employee of such a body, and (c) a member of the governing body of such a body. (3) Sub-paragraph (1) applies to the functions of an external registration body so far as relating to, or to matters arising out of, any of the following— (a) rules and arrangements made for the purposes of Schedule 1C or any agreement under section 6B(5)(a), or (b) any guidance or recommendation within sub-paragraph (4). (4) Guidance or a recommendation is within this sub-paragraph if— (a) it is issued or made by the external registration body to all or any class of the persons who are or are seeking to become— (i) registered in the body’s local audit register, or (ii) listed in accordance with paragraph 6 of Schedule 1C (list of firm’s lead partners), and (b) it is relevant for the purposes of this Act, including any guidance or recommendation relating to entry in or removal from the register or list. (5) Sub-paragraph (1) does not apply— (a) if the act or omission is shown to have been in bad faith, or (b) so as to prevent an award of damages in respect of the act or omission on the ground that it was unlawful as a result of section 6(1) of the Human Rights Act 1998 (acts of public authorities incompatible with Convention rights). Schedule 1C (1) (1) The following paragraphs set out the requirements that have effect in relation to a local audit register as provided by section 6C(1). (2) In this Schedule as it applies in relation to a given register— - “provider” means an individual or firm entered in that register; - “the registration body” means the body keeping that register. (2) (1) The registration body must have in place— (a) criteria for being entered, and remaining, in the register, and (b) procedures for entry in, and removal from, the register. (2) The procedures must allow for appeals to be made to a person who will determine the appeal independently of the maker of the decision appealed against. (3) (1) The registration body must secure that each provider is bound by rules determined by the body. (2) Those rules are referred to in this Schedule as “registration rules”. (3) Any changes in the body’s registration rules after its designation must be approved by the Local Audit Office. (4) The body must have arrangements for taking account, in framing its registration rules, of the cost to providers of complying with those rules and any other controls to which they are subject. (4) (1) The criteria and procedures in place under paragraph 2 must be designed to secure that— (a) an individual— (i) may be entered in the register only if the individual meets the qualification requirement, and (ii) is to be removed from the register as soon as possible after ceasing to meet that requirement; (b) a firm— (i) may be entered in the register only if the firm meets the qualified control requirement, and (ii) is to be removed from the register before the end of the period of 3 months beginning with the day on which the firm ceases to meet that requirement. (2) See Part 1 of Schedule 1D for the requirements referred to in sub-paragraph (1). (5) (1) The registration rules must include rules designed to secure that— (a) audits under this Act are conducted properly and with integrity, and (b) providers are not appointed as local auditors in circumstances in which they have an interest likely to conflict with the proper conduct of the audit. (2) The criteria and procedures in place under paragraph 2 must be designed to secure that a firm— (a) may be entered in the register only if the firm has in place adequate arrangements within sub-paragraph (3), and (b) is to be removed from the register as soon as possible after ceasing to have such arrangements. (3) The arrangements within this sub-paragraph are arrangements to prevent a person to whom sub-paragraph (4) applies from being able to exert any influence over the way in which an audit under this Act is conducted in circumstances in which that influence would be likely to affect the independence or integrity of the audit. (4) This sub-paragraph applies to— (a) any person who is not a member of the firm, and (b) any individual who is a member of the firm but does not meet the qualification requirement for the purposes of paragraph 4(1)(a). (6) (1) The registration body must secure that the register includes, for each provider that is a firm, a list of the individuals who may act as the lead partner for an audit carried out by the firm. (2) The registration body must have arrangements designed to secure that an individual appears in the list only if the individual— (a) meets the qualification requirement (see paragraph 1 of Schedule 1D), (b) otherwise has the necessary competence to act as the lead partner for an audit, and (c) is bound by rules determined by the body (which are referred to in this Schedule as “lead partner rules”). (3) Any changes in the body’s lead partner rules after its designation must be approved by the Local Audit Office. (4) The registration body must have lead partner rules designed to secure that individuals acting as lead partners for audits under this Act maintain high standards of professional conduct. (7) (1) The registration body must have effective arrangements for the investigation of complaints against providers, so far as relating to their work in connection with audits under this Act. (2) The registration body must have effective arrangements for the investigation of complaints against itself, so far as relating to its functions as a registration body. (8) (1) The registration body must have in place registration rules or other arrangements designed to secure that providers take such steps as may reasonably be expected of them to secure that they are able to meet claims against them arising out of their work in connection with audits under this Act. (2) This may be achieved by professional indemnity insurance or other appropriate arrangements. (9) (1) The registration body must have in place— (a) arrangements for monitoring compliance with its registration rules and lead partner rules, (b) arrangements for the inspection of providers in connection with their work in connection with audits under this Act, (c) registration rules designed to secure that providers co-operate with the monitoring and inspections, and (d) lead partner rules designed to secure that individuals bound by the rules co-operate with the monitoring. (2) The arrangements relating to inspections must be designed to secure that each provider is inspected at least once every 6 years. (3) Those arrangements must include— (a) provision for the results of any inspections not carried out by the registration body to be reported to the registration body, and (b) in the case of an external registration body, provision for the results of any inspections not carried out by the Local Audit Office to be reported to the Office. (10) (1) The registration body must have in place— (a) arrangements for the investigation of suspected breaches by providers or lead partners, (b) registration rules and lead partner rules designed to secure that providers and lead partners co-operate with any investigations, (c) arrangements for the imposition of sanctions in respect of breaches that are established, and (d) registration rules and lead partner rules designed to secure that providers and lead partners are bound by any sanctions. (2) In sub-paragraph (1), “breaches” means breaches of requirements imposed by or under this Act (including by registration rules or lead partner rules). (3) The available sanctions must include financial penalties. (4) The arrangements and rules must allow for appeals to be made to a person who will determine the appeal independently of the maker of the decision appealed against. (5) The arrangements and rules must allow for the Local Audit Office to be able— (a) to determine that a particular case raises or appears to raise important issues affecting the public interest, and (b) to assume enforcement responsibility in a case in which it has made such a determination. (6) For the purposes of sub-paragraph (5), the Office assumes enforcement responsibility if it assumes responsibility for the final decision (subject to any appeal) as to— (a) whether the requirement or rule in question has been breached, and (b) if so, the sanction to be imposed. (11) (1) The registration rules must require a provider to comply with any written request for the provision of information made by the registration body or (if different) the Local Audit Office for the purposes of its functions. (2) The registration rules must require a provider to comply with any general directions published from time to time by the Local Audit Office regarding the publication of information about providers. (3) That information may, for instance, include information regarding— (a) a provider’s ownership and governance, (b) a provider’s internal controls with respect to the quality and independence of its audit work, (c) a provider’s turnover, and (d) the relevant authorities whose accounts a provider has audited under this Act. Schedule 1D (1) (1) This paragraph applies for the purposes of paragraph 4(1)(a) of Schedule 1C. (2) An individual meets the qualification requirement if the individual— (a) holds an appropriate qualification, or (b) falls within paragraph 4 or 5 of this Schedule. (2) (1) This paragraph applies for the purposes of paragraphs 4(1)(b) and 6(2)(a) of Schedule 1C. (2) A firm meets the qualified control requirement if— (a) a majority of the members of the firm are qualified persons, and (b) where the firm’s affairs are managed by a board of directors, committee or other management body— (i) a majority of that body are qualified persons, or (ii) if the body consists of two persons only, at least one of them is a qualified person. (3) The following provisions apply for the purposes of sub-paragraph (2). (4) An individual is a qualified person if the individual— (a) holds an appropriate qualification, or (b) falls within paragraph 4 or 5 of this Schedule. (5) A firm is a qualified person if the firm— (a) meets the criteria to become a registered local audit provider, or (b) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006. (6) A majority of the members of a firm means— (a) where under the firm’s constitution matters are decided upon by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters; (b) in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution. (7) A majority of the members of the management body of a firm means— (a) where matters are decided at meetings of the management body by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters at such meetings; (b) in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution. (8) Paragraphs 5 to 11 of Schedule 7 to the Companies Act 2006 (rights to be taken into account and attribution of rights) apply for the purposes of sub-paragraphs (6) and (7) as they apply for the purposes of section 1162 of that Act. (3) (1) The Secretary of State may by regulations provide for a qualification to be an appropriate qualification for the purposes of paragraphs 1 and 2 if— (a) it is a professional qualification in accountancy, (b) it is obtained from a body established in the United Kingdom (whether a body corporate or an unincorporated association), and (c) it meets, or the Secretary of State thinks that it meets, specified requirements. (2) The regulations may, in particular, provide for a qualification to be an appropriate qualification if it is recognised in accordance with the regulations. (3) Regulations under this paragraph that contain provision under sub-paragraph (2) may in particular— (a) provide for the making (by the Secretary or State or otherwise) of an order (a “recognition order”) recognising a qualification; (b) make provision about applications for a recognition order; (c) provide for the giving of directions or imposition of requirements in connection with such applications; (d) make provision about the circumstances in which the making of a recognition order may or must be refused; (e) make provision about the steps to be taken on making or refusing to make a recognition order; (f) provide for a recognition order to be revoked by a further order (a “revocation order”); (g) make provision about the circumstances in which a revocation order may or must be made; (h) make provision about the date on which a revocation order may or must take effect; (i) provide for a revocation order to contain transitional provision; (j) make provision about the steps to be taken by the person making a revocation order before or on making it. (4) The requirements that may be specified for a qualification to be an appropriate qualification or to be the subject of a recognition order include, in particular, requirements as to— (a) the persons to whom the qualification is open; (b) the course of instruction undertaken by persons to whom the qualification is awarded; (c) the professional experience of such persons; (d) the examinations passed by such persons; (e) the practical training undertaken by such persons; (f) the rules and arrangements of the body offering the qualification for ensuring or monitoring compliance with other specified requirements. (5) Regulations under this paragraph may in particular— (a) provide for exceptions to a specified requirement; (b) confer power to give or withhold recognition or approval for the purposes of a specified requirement. (6) In this paragraph, “specified” means specified in regulations under this paragraph. (4) (1) An individual falls within this paragraph if any of the following sub-paragraphs applies in respect of the individual. (2) This sub-paragraph applies where the individual holds an appropriate qualification for the purposes of Chapter 2 of Part 42 of the Companies Act 2006 (eligibility of individuals and firms to act as statutory auditors) (see section 1219 of that Act). (3) This sub-paragraph applies where, immediately before 16 December 2014, the individual was qualified for appointment as an auditor under section 3 of the Audit Commission Act 1998 by virtue of the individual’s membership of a body listed in subsection (7) of that section. (4) This sub-paragraph applies where— (a) before 16 December 2014, the individual began a course of study or practical training leading to a professional qualification in accountancy offered by a body listed in section 3(7) of the Audit Commission Act 1998, (b) the person would have been qualified for appointment as an auditor under section 3 of that Act by virtue of subsection (5)(b) of that section if that qualification had been obtained before that date, and (c) the person obtained that qualification within the period of 6 years beginning with that date. (5) (1) An individual falls within this paragraph if any of the following sub-paragraphs applies in respect of the individual. (2) This sub-paragraph applies where the individual— (a) is eligible to conduct audits of the accounts of bodies corporate incorporated or formed under the law of a third country in accordance with the law of that country, and (b) holds a professional qualification which covers all the subjects that— (i) are covered by an appropriate qualification, and (ii) are subjects of which knowledge is essential for the pursuit of the profession of local auditor. (3) This sub-paragraph applies where the individual is a specified state auditor who— (a) holds professional qualifications obtained in a specified state that are comparable to an appropriate qualification, and (b) has met a requirement to take an aptitude test or to complete an adaptation period, or to undertake both, imposed on the individual in accordance with Part 2 of the principal Recognition Regulations, if such a requirement is so imposed. (4) This sub-paragraph applies where the individual is an EEA auditor who, on or before 31 December 2020, was eligible for appointment as a local auditor by virtue of paragraph 6(1)(b) of Schedule 10 to the Companies Act 2006 as substituted by paragraph 28(3) of Schedule 5 to this Act. (5) This sub-paragraph applies where the individual has been authorised to act as a local auditor pursuant to the European Communities (Recognition of Professional Qualifications) Regulations 2007 (S.I. 2007/2781), and complies with the requirements of those Regulations that apply to a person acting as a local auditor. (6) In this paragraph— - “EEA auditor” has the meaning given by paragraph 20A(1) of Schedule 10 to the Companies Act 2006; - “the principal Recognition Regulations” means the Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023 (S.I. 2023/1286); - “specified state” means one of the states specified in Schedule 1 to the principal Recognition Regulations; - “specified state auditor” means an individual who is eligible to conduct audits of the accounts of bodies corporate that are incorporated or formed under the law of a specified state in accordance with the law of that state; - “third country” means a country or territory outside the United Kingdom. (6) In this Act, “recognised qualifying body” means a body that offers a qualification that is an appropriate qualification by virtue of regulations under paragraph 3(1) of Schedule 1C. (7) The Secretary of State may by regulations provide for the payment of fees by a body in respect of its— (a) making an application that would result in its becoming a recognised qualifying body, or (b) becoming such a body further to an application made by it, or (c) remaining such a body, having become so further to an application made by it. (8) (1) If it appears to the Secretary of State— (a) that any action proposed to be taken by a recognised qualifying body would be incompatible with assimilated obligations or any other international obligations of the United Kingdom, or (b) that any action which a recognised qualifying body has power to take is required for the purpose of implementing any such obligations, the Secretary of State may direct the body not to take or, as the case may be, to take the action in question. (2) A direction under this paragraph may include such supplementary or incidental requirements as the Secretary of State thinks necessary or expedient. (3) A direction under this paragraph is enforceable by injunction by the High Court on the application of the Secretary of State. (9) (1) The Secretary of State may by regulations— (a) provide for the Secretary of State’s functions under paragraph 7 or 8 to be exercisable, concurrently with the Secretary of State, by another person designated in the regulations; (b) make the designated person’s ability to exercise the functions subject to exceptions or reservations; (c) confer on the designated person such other functions supplementary or incidental to those under this paragraph as appear to the Secretary of State to be appropriate; (d) make provision about the application of the Freedom of Information Act 2000 to the designated person. (2) Regulations under this paragraph do not have the effect that— (a) the designated person is to be regarded as acting on behalf of the Crown, or (b) that its members, officers or employees are to be regarded as Crown servants. (3) Where regulations under this paragraph apply to the making of regulations under paragraph 7— (a) section 43(1) and (5) does not apply to regulations made by the designated person; (b) the designated person may not make regulations without the approval of the Secretary of State; (c) the Secretary of State may, after consultation with the body, by regulations vary or revoke any regulations made by the designated person; (d) any regulations made by the designated person must be published immediately after they are made; (e) a person is not to be taken to have contravened such regulations if the person shows that at the time of the alleged contravention the regulations had not been published; (f) the production of a printed copy of regulations purporting to be made by the designated person on which is endorsed a certificate signed by or on behalf of that person and stating— (i) that the regulations were made by the person, (ii) that the copy is a true copy of the regulations, and (iii) that on a specified date the regulations were published, is evidence of the facts stated in the certificate; (g) a certificate purporting to be signed as mentioned in paragraph (f) is to be deemed to have been duly signed unless the contrary is shown; (h) any person wishing in any legal proceedings to cite regulations made by the designated person may require that person to cause a copy of them to be endorsed with a certificate as mentioned in paragraph (f).

Schedule 36 — Local audit: minor and consequential amendments

Part 1 — Amendments of the Local Audit and Accountability Act 2014

1

The Local Audit and Accountability Act 2014 is amended as follows.

2

In the heading of Part 3, at the end insert “: health service bodies”.

3

• (1) Section 7 (appointment of local auditor) is amended as follows.

• (2) In subsection (1), for “relevant authority” substitute “health service body”.

• (3) In subsection (2)—

• (a) in the words before paragraph (a), for “relevant authority” substitute “health service body”;

• (b) in paragraph (b), for “authority” substitute “body”.

• (4) In subsection (3), for “relevant authority” substitute “health service body”.

• (5) For subsection (5) substitute—

(5) A relevant health service body may only appoint as its local auditor— (a) the Local Audit Office, or (b) a registered local audit provider. (5A) The body must not appoint a person whom it has reason to think will be unable to act because of section 32B (independence requirement).

• (6) In subsection (6), in the words before paragraph (a), for “relevant authority” substitute “health service body”.

• (7) In subsection (7), for “under subsection (6)(b) or (c)” substitute “in accordance with subsection (6)”.

• (8) For subsection (8) substitute—

(8) The Secretary of State may by regulations make provision about the appointment of a local auditor to audit the accounts of a health service body which is specified, or of a description specified, in the regulations. (9) Regulations under subsection (8) may, in particular— (a) make further provision about the operation of this Act or any provision made under it in relation to a health service body to which the regulations apply; (b) provide for any provision of or made under this Act not to apply, or to apply with modifications, in relation to a health service body to which the regulations apply.

4

• (1) Section 8 (procedure for appointment) is amended as follows.

• (2) In subsection (1), for “relevant authority” substitute “health service body”.

• (3) In subsection (2)—

• (a) in the words before paragraph (a), for “relevant authority” substitute “health service body”;

• (b) in paragraph (c), for “period” substitute “financial year or years”.

• (4) In subsection (3)(a), for “relevant authority” substitute “health service body”.

• (5) In subsection (4)—

• (a) in the words before paragraph (a), for “relevant authority” substitute “health service body”;

• (b) omit paragraph (a).

• (6) In subsection (5), for “relevant authority” substitute “health service body”.

• (7) In subsection (6), for the words from “Schedule 3” to the end substitute “regulations under section 7(8)”.

5

In section 9 (auditor panels)—

• (a) in subsection (1), for “relevant authority” substitute “health service body”;

• (b) omit subsection (2).

6

• (1) Section 10 (functions of auditor panels) is amended as follows.

• (2) In subsection (1)—

• (a) for “relevant authority’s” substitute “health service body’s”;

• (b) for “authority” substitute “body”.

• (3) Omit subsections (2) and (3).

• (4) In subsection (4)—

• (a) for “relevant authority’s” substitute “health service body’s”;

• (b) for “authority” substitute “body”.

• (5) In subsection (5)(a), for “relevant authority” substitute “health service body”.

• (6) In subsection (6)—

• (a) for “relevant authority’s” substitute “health service body’s”;

• (b) for “authority”, in both places it occurs, substitute “body”.

• (7) In subsection (7), for “authority” substitute “health service body”.

• (8) In subsection (8)—

• (a) in paragraph (b)—

• (i) for “relevant authority’s” substitute “health service body’s”;

• (ii) for “authority’s”, in the remaining place it occurs, substitute “body’s”;

• (b) in paragraph (c), for “relevant authority” substitute “health service body”.

• (9) In subsection (9), for “relevant authority” substitute “health service body”.

• (10) In subsection (10)—

• (a) in the words before paragraph (a), for “relevant authority” substitute “health service body”;

• (b) omit paragraph (a).

• (11) In subsection (11), for “relevant authority” substitute “health service body”.

• (12) In subsection (13), for “relevant authority” substitute “health service body”.

7

Omit section 11 (relationship of relevant authority other than health service body with auditor panel).

8

Omit section 12 (failure to appoint local auditor by relevant authority other than health service body).

9

• (1) Section 14 (limitation of local auditor’s liability) is amended as follows.

• (2) In subsection (1)—

• (a) for “relevant authority” substitute “health service body”;

• (b) for “authority”, in the remaining place it occurs, substitute “body”.

• (3) In subsection (6), for “relevant authority” substitute “health service body”.

• (4) After subsection (7) insert—

(8) Before entering into a liability limitation agreement, a health service body must consult and take into account the advice of its auditor panel.

10

Omit section 15 (further provision about limitation of liability).

11

• (1) Section 16 (resignation and removal of local auditor) is amended as follows.

• (2) In subsection (1), in paragraphs (a) and (b), for “relevant authority” substitute “health service body”.

• (3) In subsection (2)—

• (a) in paragraph (c), for “relevant authority” substitute “health service body”;

• (b) in paragraph (d)—

• (i) for “authority’s” substitute “body’s”;

• (ii) for “or of a recognised supervisory body” substitute “, the Local Audit Office or an external registration body”;

• (c) in paragraph (e), for “relevant authority” substitute “health service body”.

• (4) In subsection (3)—

• (a) in paragraph (d)—

• (i) for “relevant authority’s” substitute “health service body’s”;

• (ii) for “or of a recognised supervisory body” substitute “, the Local Audit Office or an external registration body”;

• (b) in paragraph (e), for “relevant authority” substitute “health service body”.

• (5) In subsection (4), leave out the words from “, in” to “body,”.

• (6) In subsection (5)—

• (a) in paragraphs (a) and (b), for “Secretary of State” substitute “Local Audit Office”;

• (b) in paragraph (a), for “relevant authority” substitute “health service body”.

• (7) In subsection (7)—

• (a) for “a recognised supervisory body” substitute “the Local Audit Office or an external registration body”;

• (b) for “body by a relevant authority” substitute “Office or body by a health service body”.

12

• (1) Section 17 (appointment of auditor other than by audited body) is amended as follows.

• (2) In subsection (1), for “relevant authority” substitute “health service body”.

• (3) In subsection (3)—

• (a) in paragraph (a)—

• (i) for “relevant authorities” substitute “health service bodies”;

• (ii) for “an authority” substitute “a body”;

• (b) in paragraph (c), for “relevant authorities” substitute “health service bodies”.

• (4) In subsection (6), for “relevant authority” substitute “health service body”.

• (5) In subsection (7), for “authority” substitute “health service body”.

• (6) In subsection (8)(a), for “relevant authority” substitute “health service body”.

• (7) In subsection (9), for “relevant authority” substitute “health service body”.

13

Omit Part 4 (eligibility and regulation of local auditors).

14

In section 23(3) (recovery of expenses in connection with obstruction offences), for the words from “from” to the end substitute “under section 32A, so far as they are not recovered by any other means.”

15

In section 26(3) (recovery of costs in connection with questioning by elector), for the words from “from” to the end substitute “under section 32A.”

16

In section 27(7) (recovery of costs in connection with objection by elector), for “from the relevant authority” substitute “under section 32A”.

17

In section 28(7) (recovery of costs in considering application for declaration of unlawfulness), for “from the relevant authority” substitute “under section 32A”.

18

In section 31(6) (recovery of costs in considering application for judicial review), for “from the relevant authority” substitute “under section 32A”.

19

In section 32(3) (consultation about proposed accounts and audit regulations)—

• (a) for paragraph (a) substitute—

(a) the Local Audit Office,

• (b) for paragraph (c) substitute—

(c) any external registration body.

20

After section 32 insert—

(32A) (1) Subsection (2) applies in relation to the audit under this Act of the accounts of a relevant authority other than a health service body. (2) If the Local Audit Office is satisfied that, by virtue of any provision of this Part, costs or expenses are recoverable by the local auditor under this section, the Office must pay the amount of those costs or expenses to the local auditor. (3) Before being so satisfied, the Office must invite representations from the relevant authority concerned. (4) Subsection (5) applies in relation to the audit under this Act of the accounts of a health service body. (5) If, by virtue of any provision of this Part, costs or expenses are recoverable by the local auditor under this section, the local auditor may recover the amount of those costs or expenses from the health service body as a debt.

21

After Part 5 insert—

(32B) (1) A person (“P”) may not act as a local auditor if any of subsections (2), (4), (5) or (6) applies in relation to P and the relevant authority whose accounts are to be audited. (2) This subsection applies if— (a) P is a member or officer of the relevant authority, (b) where the relevant authority is a corporation sole, P is the holder of that office, (c) P is a partner or employee of a person within paragraph (a) or (b), or (d) P is a partnership of which a person within paragraph (a) or (b) is a partner. (3) In relation to a relevant authority that is an integrated care board, subsection (2)(a) has effect as if “or officer” were omitted. (4) This subsection applies if— (a) the relevant authority is an NHS trust, and (b) P is a director of that NHS trust. (5) This subsection applies if P is— (a) a person elected or appointed— (i) as an entity connected with the relevant authority, (ii) to such an entity, or (iii) to an office of such an entity, (b) an employee of such an entity, (c) a partner or employee of a person within paragraph (a) or (b), or (d) a partnership of which a person within paragraph (a) or (b) is a partner. (6) This subsection applies if there exists a connection of a prescribed description between P and the relevant authority. (7) In subsection (6), “prescribed” means prescribed by regulations made by the Secretary of State. (8) A description of connection prescribed under subsection (6) may be direct or indirect (and so may involve, for instance, chains of connection leading from the relevant authority to P by way of one or more interposed persons). (32C) (1) Subsection (2) applies if, at any time during the term of office of a local auditor, the auditor becomes prohibited from acting by section 32B. (2) The auditor must immediately— (a) resign from office (with immediate effect), and (b) give notice in writing to the relevant authority concerned that the auditor has resigned by reason of lack of independence. (32D) (1) This section applies where a person appointed as a local auditor of the accounts of a relevant authority (“the first auditor”) was not an eligible person for any part of the period during which the audit was conducted. (2) The Local Audit Office may direct the relevant authority to retain an eligible person— (a) to conduct a second audit of the accounts in question, or (b) to review the first audit and to report (giving reasons) on whether a second audit of those accounts is needed. (3) If a report under subsection (2)(b) states that a second audit is needed, the relevant authority must take such steps as are necessary for the carrying out of that audit. (4) If the first auditor is or was on a local audit register kept by an external registration body— (a) the Local Audit Office must send to that body a copy of any direction under subsection (2), and (b) the relevant authority must send to that body a copy of any report under subsection (2)(b). (5) A direction under subsection (2) may specify when the authority must comply with— (a) the requirements of the direction, or (b) any requirement of subsection (3) or (4)(b). (6) A person appointed under this section to conduct a second audit of the accounts of a parish meeting, or to review and report on the first audit of such accounts, must be appointed by the parish meeting itself (and not by its chairman on behalf of the parish meeting). (7) Where a second audit is carried out under this section, any statutory or other provision applying in relation to the first audit applies also, so far as practicable, in relation to the second audit. (8) If the first auditor accepted appointment, or acted as the local auditor, with knowledge of not being an eligible person, the relevant authority may recover from the first auditor any costs incurred by it in complying with the requirements of this section. (9) For the purposes of this section, a person is “eligible” if the person— (a) is a registered local audit provider or the Local Audit Office, and (b) is not prohibited by section 32B from acting as the local auditor of the relevant authority concerned. (32E) (1) This section applies where a partnership constituted under the law of— (a) England and Wales, (b) Northern Ireland, or (c) any other country or territory in which a partnership is not a legal person, is appointed as a local auditor under section 6G or 7. (2) Unless a contrary intention appears, the appointment is an appointment of the partnership as such and not of the partners. (3) Where the partnership ceases, the appointment is to be treated as extending to— (a) any appropriate partnership which succeeds to the practice of that partnership, or (b) any other appropriate person who succeeds to that practice having previously carried it on in partnership. (4) For the purposes of subsection (3)— (a) a partnership is to be regarded as succeeding to the practice of another partnership only if the members of the successor partnership are substantially the same as those of the former partnership, and (b) a partnership or other person is to be regarded as succeeding to the practice of a partnership only if the partnership or person succeeds to the whole or substantially the whole of the business of the former partnership. (5) Where the partnership ceases and the appointment is not treated under subsection (3) as extending to any partnership or other person, the appointment may with the requisite consent be treated as extending to an appropriate partnership, or other appropriate person, that succeeds to— (a) the business of the former partnership, or (b) such part of it as is agreed by the appointing authority is to be treated as comprising the appointment. (6) The requisite consent is that of— (a) the Local Audit Office, where the relevant authority to which the appointment relates is not a health service body, or (b) where that authority is a health service body, the body. (7) For the purposes of this section, a partnership or other person is “appropriate” if the partnership or person— (a) is a registered local audit provider, and (b) is not prohibited by section 32B from acting as the local auditor of the relevant authority concerned. (32F) (1) A relevant authority must comply with any written request by the Local Audit Office to be provided with information. (2) Such a request may relate to information as it exists in the future (for instance, information about a future occurrence once it has occurred or about a future period once it has elapsed). (3) The Office may make such a request only if the Office reasonably requires the information concerned in connection with the performance of its functions. (32G) (1) This section applies to a person who, further to arrangements made for the purposes of paragraph 9 or 10 of Schedule 1C, carries out an inspection or investigation concerning the audit under this Act of the accounts of a relevant authority. (2) The person may require the relevant authority to make available for inspection— (a) the accounts concerned, and (b) the other documents relating to the authority that might reasonably be required by a local auditor for the purposes of auditing its accounts. (32H) The Local Audit Office must, at least once in every calendar year, publish a report containing a summary of the results of the inspections of registered local audit providers that have been carried out further to arrangements made for the purposes of paragraph 9 of Schedule 1C. (32I) (1) It is an offence for a person knowingly or recklessly to provide information that is false, misleading or deceptive in a material way— (a) for the purposes of, or in connection with, an application under the local audit provisions, or (b) in purported compliance with any requirement having effect under those provisions. (2) In subsection (1), “the local audit provisions” means— (a) Parts 2A to 5A of this Act (including any regulations under any of those Parts), (b) an agreement under section 6B(5), and (c) registration rules within the meaning of paragraph 3 of Schedule 1C. (3) A person who commits an offence under this section is liable— (a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both); (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both). (32J) (1) It is an offence for a person who is not a registered local audit provider to— (a) describe themselves as a registered local audit provider, or (b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are a registered local audit provider. (2) It is an offence for a person who is not an external registration body to— (a) describe themselves as an external registration body, or (b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are an external registration body. (3) It is an offence for a person who is not a recognised qualifying body to— (a) describe themselves as a recognised qualifying body, or (b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are a recognised qualifying body. (4) A person who commits an offence under this section is liable on summary conviction to imprisonment for a term not exceeding the maximum term for summary offences or a fine (or both). (5) In subsection (4), “the maximum term for summary offences” means— (a) if the offence is committed before the time when section 281(5) of the Criminal Justice Act 2003 comes into force, six months; (b) if the offence is committed after that time, 51 weeks.

22

In section 43(4) (orders and regulations subject to affirmative procedure)—

• (a) in paragraphs (d) and (e), for “smaller” substitute “category 2”;

• (b) after paragraph (f) insert—

(fa) regulations under section 7(8) (power to make provision about appointment arrangements for health service bodies),

• (c) after paragraph (h) insert—

(ha) regulations under section 33A(4) (power to apply enactments to certain audit committees),

• (d) after paragraph (i) insert—

(ia) regulations under section 43A(3) (power to amend definition of “connected entity”),

• (e) after paragraph (j) insert—

(ja) regulations under paragraph 9(1) of Schedule 1D (delegation of powers in respect of recognised qualifying bodies);

• (f) omit paragraph (k);

• (g) in paragraph (l), for “that Schedule” substitute “Schedule 4”;

• (h) omit paragraph (m) (but not the “and” at the end).

23

After section 43 insert—

(43A) (1) For the purposes of this Act, an entity (“E”) is connected with a relevant authority at any time if E is an entity other than the relevant authority and the relevant authority considers that, in accordance with proper practices in force at that time— (a) the financial transactions, reserves, assets and liabilities of E are to be consolidated into the relevant authority’s statement of accounts for the financial year in which that time falls, (b) the relevant authority’s share of the financial transactions, reserves, assets and liabilities of E is to be consolidated into the relevant authority’s statement of accounts for that financial year, or (c) the relevant authority’s share of the net assets or net liabilities of E, and of the profit or loss of E, are to be brought into the relevant authority’s statement of accounts for that financial year. (2) In subsection (1), “entity” means any entity, whether or not a legal person. (3) The Secretary of State may by regulations amend subsection (1) or (2). (4) In subsection (1) as it applies in relation to a health service body, the reference to the relevant authority’s statement of accounts is to be read as a reference to the body’s accounts.

24

• (1) Section 44 (interpretation) is amended as follows.

• (2) In subsection (1)—

• (a) at the appropriate places insert—

• “advisory notice” has the meaning given by paragraph 8(1) of Schedule 8;

• “external registration body” means a body designated under section 6A(2)(b);

• “firm” means any entity (whether or not a legal person) which is not an individual, including— a body corporate, a corporation sole, and a partnership or other unincorporated association, but does not include the Local Audit Office;

• “local audit register” has the meaning given by section 6A(4);

• “registered local audit provider” has the meaning given by section 6A(4);

• (b) for the definition of “recognised qualifying body” substitute—

• “recognised qualifying body” has the meaning given by paragraph 6 of Schedule 1D;

• (c) omit the definition of “recognised supervisory body”.

• (3) Omit subsection (3).

• (4) In subsection (4), for “paragraph 8 of Schedule 4” substitute “section 43A”.

25

Omit Schedule 3 (further provision about appointment of local auditors).

26

• (1) Schedule 4 (auditor panels) is amended as follows.

• (2) In paragraph 1—

• (a) in sub-paragraph (1)—

• (i) in the words before paragraph (a), for “relevant authority (“R”)” substitute “health service body (“H”)”;

• (ii) in paragraphs (a), (b) and (c), for “R” substitute “H”;

• (iii) in paragraph (b), for “relevant authorities” substitute “health service bodies”;

• (b) in sub-paragraph (2)—

• (i) in the words before paragraph (a), and in paragraph (a), for “R” substitute “H”;

• (ii) in paragraphs (a) and (b), for “R’s” substitute “H’s”;

• (c) in sub-paragraph (3)—