Local Democracy, Economic Development and Construction Act 2009

• Citation: 2009 c. 20
• Sections: 428

Section 1 Democratic arrangements of principal local authorities

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Section 2 Democratic arrangements of connected authorities

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Section 3 Monitoring boards, courts boards and youth offending teams

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Section 4 Lay justices

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Section 5 Provision of information

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Section 6 Guidance

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Section 7 Isles of Scilly

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Section 8 Orders

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Section 9 Interpretation

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Section 10 Electronic petitions

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Section 11 Petition schemes

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Section 12 Petitions to which a scheme must apply

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Section 13 Requirement to acknowledge

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Section 14 Requirement to take steps

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Section 15 Requirement to debate

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Section 16 Requirement to call officer to account

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Section 17 Review of steps

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Section 18 Supplementary scheme provision

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Section 19 Powers of appropriate national authority

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Section 20 Handling of petitions by other bodies

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Section 21 Orders

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Section 22 Interpretation

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Section 23 Duty of public authorities to secure involvement

(1) Where an authority to which this section applies considers it appropriate for representatives of interested persons (or of interested persons of a particular description) to be involved in the exercise of any of its relevant functions by being—

(a) provided with information about the exercise of the function,

(b) consulted about the exercise of the function, or

(c) involved in another way,

it must take such steps as it considers appropriate to secure that such representatives are involved in the exercise of the function in that way.

(2) This section applies to the following authorities—

(a) the Arts Council of England;

(b) the English Sports Council;

(c) the Environment Agency;

(d) the Health and Safety Executive;

(da) the Office for Nuclear Regulation;

(e) the Historic Buildings and Monuments Commission for England;

(f) the Homes and Communities Agency;

(g) the Museums, Libraries and Archives Council;

(h) Natural England;

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(j) the Common Council of the City of London in its capacity as a police authority;

(k) a chief officer of police for a police force in England;

(l) a local probation board for an area in England or a probation trust (other than a Welsh probation trust as defined by paragraph 13(6) of Schedule 1 to the Offender Management Act 2007 (c. 21));

(m) a youth offending team for an area in England;

(n) the Secretary of State.

(3) In this section, “ relevant functions ” means—

(a) in relation to an authority specified in subsection (2)(a) to (m), all the functions of the authority except in so far as those functions are not exercisable in or in relation to England;

(b) in relation to the Secretary of State, the Secretary of State's functions under—

(i) section 2 of the Employment and Training Act 1973 (c. 50) (arrangements with respect to obtaining etc employment or employees), and

(ii) sections 2 and 3 of the Offender Management Act 2007 (c. 21) (responsibility for ensuring the provision of probation services throughout England and Wales),

except in so far as those functions are not exercisable in relation to England.

(4) Subsection (1) does not require an authority to take a step—

(a) if the authority does not have the power to take the step apart from this section, or

(b) if the step would be incompatible with any duty imposed on the authority apart from this section.

(5) Subsection (1) does not apply in such cases as the Secretary of State may by order made by statutory instrument specify.

(6) A statutory instrument containing an order under subsection (5) is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

“ interested person ”, in relation to a relevant function, means a person who is likely to be affected by, or otherwise interested in, the exercise of the function;

“ representative ” means, in relation to interested persons or a description of interested person, a person who appears to an authority to which this section applies to be representative of the interested persons;

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(8) The Secretary of State's functions under this section by virtue of subsection (3)(b)(ii) are functions to which section 2(1)(c) of the Offender Management Act 2007 (c. 21) (functions to be performed through arrangements under section 3 of that Act) applies.

Section 24 Duty of public authorities to secure involvement: guidance

(1) The Secretary of State may give guidance to authorities to which section 23 applies (other than the Secretary of State) in relation to the discharge of their duties under that section.

(2) Guidance under this section—

(a) may be given generally or to one or more particular authorities;

(b) may be different for different authorities;

(c) must be published.

(3) Before giving guidance under this section the Secretary of State must consult the authority or authorities to which it is given.

(4) An authority to which section 23 applies must, in deciding how to fulfil its duties under that section, have regard to any guidance given to it under this section.

Section 25 Establishment and assistance of bodies representing tenants etc

(1) The Secretary of State may—

(a) establish a body with the functions specified in subsections (2) to (5);

(b) give financial or other assistance to any person for the purpose of establishing a body with those functions;

(c) give financial or other assistance to any body appearing to the Secretary of State to have those functions for the purpose of the carrying out by the body of any or all of those functions.

(2) The function in this subsection is that of representing, or facilitating the representation of, the views and interests of—

(a) tenants of social housing in England, or

(b) tenants of social housing and other residential property in England.

(3) The function in this subsection is that of conducting or commissioning research into issues affecting—

(a) tenants of social housing in England, or

(b) tenants of social housing and other residential property in England.

(4) The function in this subsection is that of promoting the representation by other bodies of—

(a) tenants of social housing in England or any part of England, or

(b) tenants of social housing and other residential property in England or any part of England.

(5) It is immaterial for the purposes of subsection (1)(a) to (c) that a body may also have other functions.

(6) Assistance under this section may be given in such form (including financial assistance by way of grant, loan or guarantee) as the Secretary of State considers appropriate.

(7) Assistance under this section may be given on such terms as the Secretary of State considers appropriate.

(8) The terms on which assistance under this section may be given include, in particular, provision as to the circumstances in which it must be repaid or otherwise made good to the Secretary of State and the manner in which that must be done.

(9) A person or body to whom assistance is given under this section must comply with any terms on which it is given.

(10) In this section—

“ social housing ” has the meaning given by section 68 of the Housing and Regeneration Act 2008 (c. 17);

“ tenant ”, in relation to social housing, has the meaning given by section 275 of that Act.

Section 26 Consultation of bodies representing tenants etc

(1) The Housing and Regeneration Act 2008 (c. 17) is amended as follows.

(2) After section 278 insert—

Power to nominate for consultation purposes

(278A)

(1) The Secretary of State may for the purposes of the following provisions of this Part nominate a body appearing to the Secretary of State to represent the interests of tenants of social housing in England—

(a) section 112(4);

(b) section 174(5);

(c) section 196(1);

(d) section 197(4);

(e) section 216.

(2) The Secretary of State must notify the regulator of any nomination (or withdrawal of any nomination) under this section.

(3) In each of sections 112(4) (consultation about criteria for registration of providers of social housing) and 174(5) (consultation about disposal of dwellings by registered providers of social housing)—

(a) after paragraph (b) (and before the “and” following that paragraph) insert—

(ba) any body for the time being nominated under section 278A,

(b) in paragraph (c), after “one or more” insert “ other ” .

(4) In section 196(1) (consultation about standards etc for registered providers of social housing)—

(a) after paragraph (b) insert—

(ba) any body for the time being nominated under section 278A,

(b) in paragraph (c), after “one or more” insert “ other ” .

(5) In section 197(4) (consultation about directions relating to standards)—

(a) after paragraph (d) insert—

(da) any body for the time being nominated under section 278A,

(b) in paragraph (e), after “one or more” insert “ other ” .

(6) In section 216 (consultation about guidance to registered providers of social housing)—

(a) after paragraph (a) insert—

(aa) any body for the time being nominated under section 278A,

(b) in paragraph (b), after “one or more” insert “ other ” .

Section 27 Local freedoms

(1) The Local Government Act 1972 (c. 70) is amended as follows.

(2) In section 248 (freemen and inhabitants of existing boroughs), after subsection (1) insert—

(1A) Where the son of a freeman of a city or town may claim to be admitted as a freeman of that place, the daughter of a freeman may likewise claim to be so admitted.

(1B) The son or daughter of a freeman of a city or town shall be admitted as a freeman whether born before or after the admission, as a freeman, of his or her freeman parent and wherever he or she was born.

(1C) In subsections (1A) and (1B) “ freeman ” excludes a freeman of the City of London.

Section 28 Power to amend law relating to local freedoms

(1) The Local Government Act 1972 (c. 70) is amended as follows.

(2) In section 248 (freemen and inhabitants of existing boroughs), after subsection (1C) insert—

(1D) Schedule 28A (amendment of laws relating to freedom of city or town) shall have effect.

(3) Before Schedule 29 insert—

Amendment of laws relating to freedoms of cities and towns

Introductory

(1)

(1) This Schedule makes provision for the laws relating to freedom of a city or town to be amended by, or pursuant to, a resolution of persons admitted to that freedom.

(2) The powers conferred by this Schedule are without prejudice to any other power to amend the law relating to freedom of a city or town.

(3) In this Schedule—

“ appropriate national authority ” means—

the Secretary of State, in relation to a city or town in England;

the Welsh Ministers, in relation to a city or town in Wales;

“ enactment ” includes in particular—

a royal charter or other instrument made under the royal prerogative;

any instrument made under an enactment.

Powers to amend law in respect of women and civil partners

(2)

(1) The purposes of this paragraph are—

(a) to provide for a woman to have the right to be admitted to freedom of a city or town in any or all circumstances where a man has that right;

(b) to enable a woman admitted to the freedom of a city or town (whether pursuant to this Schedule or otherwise) to use the title “freewoman”;

(c) to put a civil partner or surviving civil partner of a person admitted to freedom of a city or town in the same position as a spouse or surviving spouse of such a person.

(2) The appropriate national authority may by order amend an Act for any purpose of this paragraph, if the amendment is proposed by a qualifying resolution.

(3) A qualifying resolution may amend—

(a) any enactment other than an Act, or

(b) the law established by custom,

for any purpose of this paragraph.

(4) An amendment may not be made under this paragraph for the purpose specified in sub-paragraph (1)(a) if the effect of the amendment in any case or circumstances would be to deprive a man of the right to be admitted to freedom of a city or town.

(5) A provision of a public general Act may not be amended under this paragraph unless the provision relates only to—

(a) a particular city or town, or

(b) a specified group of cities or towns.

Power to amend royal charters

(3)

(1) Her Majesty may by Order in Council amend the law relating to rights of admission to freedom of a city or town where—

(a) the law is contained in a royal charter; and

(b) the amendment is proposed in a qualifying resolution.

(2) It is immaterial for the purposes of sub-paragraph (1) above whether the amendment is one which could be made under paragraph 2(3) above.

(3) An Order in Council under this paragraph is not a statutory instrument for the purposes of the Statutory Instruments Act 1946.

Powers to amend laws established by custom

(4)

(1) A qualifying resolution may amend the law relating to rights of admission to freedom of a city or town where the law is established by custom.

(2) The power in sub-paragraph (1) above does not include power to make an amendment which could be made under paragraph 2(3) above.

Consequential amendments

(5)

(1) The power to make an amendment under paragraph 2(2) above includes power (exercisable in the same way and subject to the same conditions) to make consequential amendments to—

(a) any enactment, or

(b) the law established by custom.

(2) The power to make an amendment under paragraph 2(3), 3 or 4 above includes power (exercisable in the same way and subject to the same conditions) to make consequential amendments to—

(a) any enactment other than an Act, or

(b) the law established by custom.

(3) Where an amendment is made under paragraph 2(3), 3 or 4 above, the appropriate national authority may by order make consequential amendments to any Act, if the consequential amendments are proposed by a qualifying resolution.

(6)

(1) Where by virtue of an amendment under paragraph 2, 3 or 4 above a person has the right of admission to freedom of city or town, the following amendments in particular are to be regarded as consequential for the purposes of this Schedule—

(a) an amendment for the purpose of putting that person in the same position as any other person admitted to that freedom;

(b) an amendment for the purpose of putting a person who by marriage, civil partnership, descent, employment or otherwise is or has been related to or associated with that person in the same position as a person correspondingly related to or associated with any other person admitted to that freedom;

(c) an amendment for the purpose of putting a person who is or has been related by marriage or civil partnership to a surviving spouse or civil partner or child of that person in the same position as a person correspondingly related to the surviving spouse or civil partner or child of any other person admitted to that freedom.

(2) In determining for the purposes of sub-paragraph (1) above whether one relationship corresponds with another, differences of gender are to be ignored.

Qualifying resolutions

(7)

(1) For the purposes of this Schedule, a “qualifying resolution” is a resolution—

(a) in relation to which the requirements of paragraph 8 below are complied with; and

(b) which is passed in accordance with paragraph 9 below.

(8)

(1) The requirements of this paragraph in relation to a resolution are as follows.

(2) The resolution must be proposed by three or more eligible persons.

(3) Voting on the resolution is to be by postal ballot.

(4) The proposers must make reasonable endeavours to secure that each eligible person is sent—

(a) a notice of the ballot, and

(b) a ballot paper.

(5) The notice must state—

(a) the resolution proposed,

(b) the purpose of the resolution, and

(c) the date by which ballot papers must be returned (the “voting date”).

(6) Any notice and ballot paper must be sent at least 28 days before the voting date.

(7) For the purposes of this paragraph, a notice or ballot paper is sent to a person on the day it is posted by first class post to the last known address of that person.

(9)

(1) A resolution is passed in accordance with this paragraph if—

(a) it is passed by a majority of the eligible persons voting on the resolution,

(b) the number of eligible persons voting on the resolution is at least 10% of the number of eligible persons to whom notice is sent under paragraph 8(4) above, and “ the resolution is notified to the relevant council within six weeks from the voting date. ”

(2) For the purposes of sub-paragraph (1)(c) above, the resolution is notified by delivery of the following documents to the relevant council—

(a) a copy of the resolution;

(b) a copy of the notice sent under paragraph 8(4) above;

(c) a statement in writing of the names of the eligible persons to whom the notice was sent;

(d) a statement in writing of the number of eligible persons who voted on the resolution and of the number who voted in favour of it;

(e) all ballot papers returned in accordance with the notice.

(3) The relevant council must keep the documents delivered under sub-paragraph (2) above, but need not keep those within paragraphs (b) to (e) of that sub-paragraph if it considers that it is no longer reasonably necessary to do so.

(10) In paragraphs 8 and 9 above—

“ eligible person ” means a person whose name is on the roll of persons admitted to the freedom of the city or town concerned kept under section 248(2) above;

“ relevant council ” means—

in relation to a city or town in England—

the district council in whose area the city or town is situated, or

if the city or town is not in the area of a district council, the county council in whose area it is situated;

in relation to a city or town in Wales, the principal council in whose area the city or town is situated.

Order-making powers: supplementary

(11)

(1) A statutory instrument containing an order under this Schedule which contains an amendment to a public general Act is subject to annulment—

(a) by either House of Parliament, in the case of an order made by the Secretary of State;

(b) by the National Assembly for Wales, in the case of an order made by the Welsh Ministers.

(4) In section 248—

(a) in subsection (1), after “this section”, in both places, insert “ and Schedule 28A ” ;

(b) in subsection (2), for “freemen” substitute “ persons admitted to the freedom ” ;

(c) in subsection (3)—

(i) for “as a freeman” substitute “ to the freedom ” ;

(ii) for “his”, in both places, substitute “ the person's ” ;

(iii) for “freemen” substitute “ persons admitted to the freedom ” ;

(d) in subsection (4), in paragraphs (a), (b) and (c), for “freeman” substitute “ person admitted to the freedom ” .

Section 29 Honorary titles

(1) Section 249 of the Local Government Act 1972 (c. 70) (honorary aldermen and freemen) is amended as follows.

(2) In the heading, for “Honorary aldermen and freemen” substitute “ Honorary titles ” .

(3) In subsection (1) (power of principal councils to confer title of honorary aldermen), after “honorary aldermen” insert “ or honorary alderwomen ” .

(4) In subsection (2)—

(a) after “honorary alderman” insert “ or honorary alderwoman ” ;

(b) after “as alderman” insert “ or alderwoman ” ;

(c) after “as an alderman” insert “ or alderwoman ” .

(5) In subsection (4), after “honorary alderman” insert “ or honorary alderwoman ” .

(6) After that subsection insert—

(4A) A principal council may spend such reasonable sum as they think fit for the purpose of presenting an address, or a casket containing an address, to a person on whom they have conferred the title of honorary alderman or honorary alderwoman.

(7) For subsections (5) to (9) (honorary freemen) there is substituted—

(5) Subject as follows, a relevant authority may admit to be honorary freemen or honorary freewomen of the place or area for which it is the authority—

(a) persons of distinction, and

(b) persons who have, in the opinion of the authority, rendered eminent services to that place or area.

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

(a) a principal council;

(b) a parish or community council;

(c) charter trustees in England constituted—

(i) under section 246 of the Local Government Act 1972,

(ii) by the Charter Trustees Regulations 1996 ( SI 1996/263), or

(iii) under Part 1 of the Local Government and Public Involvement in Health Act 2007.

(7) The power in subsection (5) above is exercisable by resolution of the relevant authority.

(8) A resolution under subsection (7) above must be passed—

(a) at a meeting of the relevant authority which is specially convened for the purpose and where notice of the object of the meeting has been given; and

(b) by not less than two-thirds of the members of the relevant authority (or, in the case of charter trustees, of the trustees) who vote on it.

(9) A relevant authority may spend such reasonable sum as it thinks fit for the purpose of presenting an address or a casket containing an address to a person on whom the authority has conferred the title of honorary freeman or honorary freewoman under subsection (5) above.

(10) The admission of a person as honorary freeman or honorary freewoman does not confer on that person any of the rights referred to in section 248(4) above.

Section 30 Politically restricted posts

(1) The Local Government and Housing Act 1989 (c. 42) is amended as follows.

(2) In section 2 (politically restricted posts), in subsection (2) omit—

(a) paragraphs (a) and (b), and

(b) in paragraph (c), the words “not falling within paragraph (a) or (b) above”.

(3) In section 3 (grant and supervision of exemptions from political restriction: Scotland and Wales), in subsection (3) omit—

(a) in paragraph (a), the word “and”,

(b) paragraph (b), and

(c) the words from “and it shall” to the end of the subsection.

(4) In section 3A (grant and supervision of exemptions from political restriction: England), in subsection (2) omit—

(a) in paragraph (a), the word “and”,

(b) paragraph (b), and

(c) the words from “and the relevant” to the end of the subsection.

Section 31 Scrutiny officers

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Section 32 Joint overview and scrutiny committees

(1) In the Local Government and Public Involvement in Health Act 2007 (c. 28), for section 123 (joint overview and scrutiny committees: local improvement targets) substitute—

Joint overview and scrutiny committees

(123)

(1) The Secretary of State may by regulations make provision under which any two or more local authorities in England may—

(a) appoint a joint committee (a “joint overview and scrutiny committee”), and

(b) arrange for the committee to exercise any functions in subsection (2).

(2) The functions in this subsection are functions of making reports or recommendations to—

(a) any of the local authorities appointing the committee (the “appointing authorities”), or

(b) if any of the appointing authorities is a non-unitary district council, the related county council,

about any matter which is not an excluded matter.

(3) In subsection (2) “ excluded matter ” means any matter with respect to which a crime and disorder committee could make a report or recommendations—

(a) by virtue of subsection (1)(b) of section 19 of the Police and Justice Act 2006 (local authority scrutiny crime and disorder matters), or

(b) by virtue of subsection (3)(a) of that section.

(4) In subsection (2) references to making reports or recommendations to a local authority include, in the case of a local authority operating executive arrangements under Part 2 of the Local Government Act 2000, making reports or recommendations to its executive.

(5) Regulations under this section may in particular—

(a) provide for arrangements to be made only in circumstances, or subject to conditions or limitations, specified in the regulations;

(b) in relation to joint overview and scrutiny committees, make provision applying, or corresponding to, any provision of—

(i) section 21(4) and (6) to (12) of the Local Government Act 2000,

(ii) sections 21A to 21D of that Act, or

(iii) section 246 of, and Schedule 17 to, the National Health Service Act 2006,

with or without modifications;

(c) make provision as to information which an associated authority of any appointing authority must provide, or may not disclose, to a joint overview and scrutiny committee (or, if the regulations make provision for the appointment of sub-committees of such a committee, to such a sub-committee).

(6) In subsection (5)(c) “ associated authority ”, in relation to any appointing authority, means—

(a) in the case of an appointing authority which is a non-unitary district council—

(i) the related county council, and

(ii) any person who is a partner authority in relation to the related county council;

(b) in the case of any other appointing authority, any person who is a partner authority in relation to the appointing authority.

(7) In subsection (6) “ partner authority ” has the same meaning as in Chapter 1 of this Part except that it does not include a police authority or a chief officer of police.

(8) Regulations under this section may not make provision of a kind mentioned in subsection (5)(c) with respect to information in respect of which provision may be made in exercise of the power conferred by section 20(5)(c) or (d) of the Police and Justice Act 2006 (guidance and regulations regarding crime and disorder matters).

(9) Any local authority and any joint overview and scrutiny committee must, in exercising or deciding whether to exercise any function conferred on it by or under this section, have regard to any guidance issued by the Secretary of State.

(10) In this section—

“ local authority ” has the same meaning as in Part 2 of the Local Government Act 2000;

“ non-unitary district council ” means a district council for a district in a county for which there is a county council (and the “ related county council ”, in relation to a non-unitary district council, means that county council).

(2) In section 21 of the Local Government Act 2000 (c. 22) (overview and scrutiny committees), in subsection (2A)(e), for the words from “(joint” to the end substitute “ (joint overview and scrutiny committees) appointed by two or more local authorities including the authority concerned ” .

Section 33 Powers of National Assembly for Wales

(1) Schedule 5 to the Government of Wales Act 2006 (c. 32) (Assembly measures) is amended as follows.

(2) In Part 1, after the heading “ Field 12: local government ”, after the entry relating to Matter 12.5 insert—

Matter 12.6

Arrangements by principal councils with respect to the discharge of their functions, including executive arrangements.

This matter does not include—

(a) direct elections to executives of principal councils, or

(b) the creation of a form of executive requiring direct elections.

For the purposes of this matter—

(a) “ executive arrangements ” has the same meaning as in Part 2 of the Local Government Act 2000;

(b) “ principal council ” means a county or county borough council;

(c) “ direct elections ” means elections by local government electors (within the meaning of section 270(1) of the Local Government Act 1972).

(3) In that Part, after the entry relating to Matter 12.6 (as inserted by subsection (2) above) insert—

Matter 12.7

Committees of principal councils with functions of—

(a) review or scrutiny, or

(b) making reports or recommendations.

This matter does not include committees under section 19 of the Police and Justice Act 2006 (crime and disorder committees).

For the purposes of this matter “ principal council ” means a county or county borough council.

Section 34 Mutual insurance

(1) Subject as follows, a qualifying authority may —

(a) become a member of a body corporate—

(i) all of whose objects fall within the objects specified in subsection (2), and

(ii) all of whose members are qualifying authorities, and

(b) do anything that is required by, or is conducive or incidental to, membership of any such body.

(2) The objects referred to in subsection (1)(a)(i) are—

(a) to provide insurance, in relation to risks of any description, to—

(i) qualifying authorities who are members of the body corporate, and

(ii) persons prescribed in regulations made by the appropriate national authority,

(b) to enter into arrangements under which such insurance is provided to—

(i) qualifying authorities who are members of the body corporate, and

(ii) persons prescribed in regulations made by the appropriate national authority, and

(c) to do anything that is required by, or is conducive or incidental to, the provision of any such insurance or entering into any such arrangements.

(3) The power of a qualifying authority under subsection (1)(b) includes in particular power—

(a) to pay premiums and make other payments to the body corporate;

(b) to agree to make any such payments;

(c) to assume financial obligations in relation to persons prescribed for the purposes of subsection (2)(a)(ii) or (b)(ii).

(4) The appropriate national authority may by regulations impose restrictions or conditions on the exercise of any power conferred on a qualifying authority by subsection (1).

(5) A qualifying authority must, in exercising the powers conferred by subsection (1), have regard to—

(a) any guidance issued by the appropriate national authority, and

(b) any guidance or document specified in regulations made by the appropriate national authority.

(6) The appropriate national authority may by regulations amend this Chapter for the purposes of changing the authorities which are for the time being qualifying authorities for the purposes of this section.

Section 35 Mutual insurance: supplementary

(1) This section applies for the purposes of section 34.

(2) A qualifying authority is—

(a) a county council in England;

(b) a district council in England;

(c) a London borough council;

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

(e) the Greater London Authority so far as it exercises its functions through the Mayor;

(f) the Council of the Isles of Scilly;

(g) a county council in Wales;

(h) a county borough council in Wales;

(i) a National Park authority;

(j) the Broads Authority;

(k) the Common Council of the City of London in its capacity as a police authority;

(l) a fire and rescue authority not falling within paragraphs (a) to (h);

(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(n) a waste disposal authority established under section 10 of the Local Government Act 1985 (c. 51);

(o) an Integrated Transport Authority;

(p) Transport for London;

(q) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(r) an economic prosperity board established under section 88 or a combined authority established under section 103.

(s) a combined county authority established under section 9 (1) of the Levelling-up and Regeneration Act 2023.

(3) The “ appropriate national authority ” means—

(a) the Secretary of State, in relation to England;

(b) the Welsh Ministers, in relation to Wales.

(4) Regulations under section 34 are to be made by statutory instrument.

(5) A statutory instrument containing regulations under subsection (2), (4) or (5)(b) of that section is subject to annulment in pursuance of a resolution of—

(a) either House of Parliament (in the case of regulations made by the Secretary of State);

(b) the National Assembly for Wales (in the case of regulations made by the Welsh Ministers).

(6) A statutory instrument containing regulations under subsection (6) of that section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of—

(a) each House of Parliament (in the case of regulations made by the Secretary of State);

(b) the National Assembly for Wales (in the case of regulations made by the Welsh Ministers).

Section 36 Overview

(1) This Chapter makes provision for the Auditor General for Wales to appoint a person to carry out audit functions in relation to a relevant entity in circumstances where it appears to the authority that the entity is or will be a qualifying ... Welsh local authority entity.

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

(3) In this Chapter, “ relevant entity ” means—

(a) a company,

(b) a limited liability partnership, or

(c) a registered society .

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

(5) In this Chapter, “ qualifying Welsh local authority entity ” means a relevant entity which—

(a) is connected with a local authority in Wales, and

(b) meets such other conditions as the Welsh Ministers may by regulations specify.

(6) In this Chapter, “ local authority ” means any body which—

(a) is a local authority for the purposes of section 21 of the Local Government Act 2003 (c. 26) (see subsection (6) of that section and section 23 of that Act), and

(b) is required to prepare statements of accounts by regulations made under ... section 39 of the Public Audit (Wales) Act 2004 (c. 23).

Section 37 Notification duties of local authorities

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

(2) Where it comes to the attention of a local authority in Wales that—

(a) a relevant entity which is connected with the authority meets the conditions referred to in section 36(5)(b),

(b) a relevant entity which is connected with the authority has ceased to meet those conditions, or

(c) a relevant entity which meets those conditions has ceased to be connected with the local authority,

the authority must notify the entity and the Auditor General for Wales accordingly.

(3) Notification under this section must be within the period of 21 days beginning with the day on which the matter comes to the attention of the local authority.

Section 38 Power to appoint auditor

(1) Subject to this Chapter, the Auditor General for Wales may appoint a person to carry out audit functions in accordance with this Chapter in relation to a relevant entity.

(2) An appointment under this section is to be for a financial year of the entity.

(3) An appointment under this section must be made—

(a) before the start of the financial year to which it relates, or

(b) in the case of an appointment for the first financial year of the entity, before whichever is the earlier of—

(i) the end of that financial year, and

(ii) the end of the period of three months beginning with the day on which the Auditor General for Wales receives notification in relation to the entity under section 37(2)(a) .

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

(5) The Auditor General for Wales may make an appointment under this section if (and only if) it appears to the Auditor General that—

(a) the entity will be a qualifying Welsh local authority entity at the start of the financial year for which the appointment is made, or

(b) in the case of an appointment for the first financial year of the entity, the entity is a qualifying Welsh local authority entity when the appointment is made.

(6) Before making an appointment under this section in relation to an entity the Auditor General for Wales must consult the entity.

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

(8) After making an appointment under this section in relation to an entity the Auditor General for Wales must notify the local authority with which the entity is connected.

Section 39 Power to appoint replacement auditor

(1) Where a person appointed by the Auditor General for Wales under this Chapter in relation to an entity for a financial year dies, is dismissed or is unable or unwilling to act, the Auditor General for Wales may (subject to this Chapter) appoint a replacement in relation to that entity for that financial year.

(2) Before making an appointment under this section the Auditor General for Wales must consult the entity.

(3) After making an appointment under this section the Auditor General for Wales must notify the local authority with which the entity is connected.

Section 40 Exclusions

(1) The Auditor General for Wales may not make an appointment under this Chapter in relation to an entity for a financial year if, by virtue of this section, the entity is exempt from audit for that year.

(2) A company is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that, for the purposes of Part 16 of the Companies Act 2006 (c. 46), the company is or will be exempt from audit under that Part for that year.

(3) A limited liability partnership is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that, for the purposes of Part 16 of the Companies Act 2006 (as that Part applies to limited liability partnerships), the partnership is or will be exempt from audit under that Part for that year.

(4) A registered society is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that —

(a) the society is a small society (within the meaning of Part 7 of the Co-operative and Community Benefit Societies Act 2014) for that year, or

(b) section 83 of that Act (duty to appoint auditors) does not apply to the society for that year because of a resolution under section 84 of that Act (power to disapply auditing requirements).

(5) Subsection (1) does not apply if the entity requests the Auditor General for Wales to make the appointment.

Section 41 Eligibility for appointment

(1) A person appointed under this Chapter may be—

(a) a member of staff of the Auditor General for Wales ;

(b) an individual who is not a member of staff of the Auditor General for Wales ;

(c) a firm.

(2) The following may not be appointed under this Chapter in relation to an entity—

(a) an individual or firm who for the purposes of section 1212 of the Companies Act 2006 (c. 46) is not eligible for appointment as a statutory auditor, or

(b) an individual or firm who by virtue of section 1214 of that Act (independence requirement) may not act as statutory auditor in relation to that entity.

(3) In this section “ firm ” means any entity, whether or not a legal person, which is not an individual, and includes a body corporate, a corporation sole and a partnership or other unincorporated association.

Section 42 Terms of appointment

(1) Subject to this Chapter, a person appointed under this Chapter holds office under this Chapter in accordance with the terms of their appointment.

(2) Subject to subsection (3), an appointment under this Chapter begins on the first day of the financial year for which the appointment is made.

(3) An appointment under this Chapter which—

(a) is for the first financial year of an entity, or

(b) is made under section 39 after the start of the financial year for which it is made,

begins on the day on which the appointment is made.

(4) An appointment under this Chapter, unless terminated earlier, ends when the person appointed has discharged their functions under this Chapter.

(5) A person appointed under this Chapter may not be dismissed by the Auditor General for Wales for divergence of opinion on accounting treatments or audit procedures.

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

(7) If it appears to the Auditor General for Wales that an entity in relation to which the Auditor General has appointed a person under this Chapter is not, or has ceased to be, a qualifying Welsh local authority entity, the Auditor General may terminate the appointment (but is not required to do so).

Section 43 Right of entity to appoint auditor to conduct statutory audit

(1) Where a person is appointed under this Chapter in relation to an entity for a financial year, the entity may, under and in accordance with the relevant statutory provision, appoint that person as auditor of the entity for the purposes of that provision for the financial year.

(2) An appointment pursuant to subsection (1) is to be—

(a) on the standard terms and conditions, or

(b) on the standard terms and conditions subject to such modifications as may be agreed between the entity and the person appointed.

(3) The Auditor General for Wales must notify the entity of its right under subsection (1).

(4) Notification under subsection (3) must be before the beginning of the financial year (except in the case of an appointment for the first financial year of the entity or which is made under section 39).

(5) Termination by the Auditor General for Wales of the appointment under this Chapter does not terminate an appointment made pursuant to subsection (1).

(6) In subsection (1) “the relevant statutory provision”—

(a) in relation to a company, means Part 16 of the Companies Act 2006 (c. 46);

(b) in relation to a limited liability partnership, means that Part of that Act as it applies to limited liability partnerships;

(c) in relation to a registered society , means—

(i) section 83 of the Co-operative and Community Benefit Societies Act 2014, or

(ii) in the case of a registered society to which regulation 3 of the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 (SI 2008/565) applies, that regulation.

(7) In subsection (2), “ standard terms and conditions ” means terms and conditions (including terms and conditions as to payment of fees) published for the purposes of that subsection by the Auditor General for Wales from time to time.

(8) Before publishing terms and conditions under subsection (7) the Auditor General for Wales must consult—

(a) such associations of local authorities, and such bodies of accountants, as the Auditor General for Wales considers appropriate, and

(b) the Welsh Ministers.

Section 44 Functions of auditor not appointed to conduct statutory audit

(1) This section applies to an entity in relation to which a person is appointed under this Chapter for a financial year if—

(a) the entity does not appoint that person pursuant to section 43(1), or

(b) the entity does so appoint that person but terminates the appointment before the discharge of the person's functions pursuant to the appointment.

(2) Where this section applies to an entity which is a company—

(a) the person appointed under this Chapter must make a report to the company on the annual accounts of the company for the financial year, and

(b) sections 495(2) to (4) and 496 to 501 of the Companies Act 2006 (c. 46) apply as if—

(i) that report were a report under section 495(1) of that Act, and

(ii) the person appointed under this Chapter were the company's auditor under Part 16 of that Act.

(3) Where this section applies to an entity which is a limited liability partnership—

(a) the person appointed under this Chapter must make a report to the partnership on the annual accounts of the partnership for the financial year, and

(b) sections 495(2) to (4) and 498 to 501 of the Companies Act 2006 apply as if—

(i) that report were a report under section 495(1) of that Act, and

(ii) the person appointed under this Chapter were the partnership's auditor under Part 16 of that Act.

(4) Where this section applies to an entity which is a registered society —

(a) the person appointed under this Chapter must audit the revenue account or accounts and balance sheet of the society for the financial year and make a report to the society on them,

(b) section 87(3) to (8) of the Co-operative and Community Benefit Societies Act 2014 apply in relation to that report as they apply to a report under section 87(2) of that Act,

(c) section 127(2) of that Act applies in relation to any contravention of section 87(6) of that Act (as applied by paragraph (b)), and

(d) in a case where the society has caused group accounts for that year to be prepared as specified in section 98 of that Act, the person appointed under this Chapter must make a report to the society on the group accounts, stating the matters referred to in subsection (7) of that section.

(5) The person appointed under this Chapter must send a copy of the report made under this section to—

(a) the local authority with which the entity is connected, and

(b) the Auditor General for Wales .

(6) In subsection (3) references to the Companies Act 2006 are to that Act as it applies in relation to limited liability partnerships.

Section 45 Public interest reports

(1) A person appointed under this Chapter in relation to an entity must make a report about any relevant matter—

(a) which comes to their attention in discharging their functions arising under or pursuant to the preceding provisions of this Chapter, and

(b) which they consider that it would be in the public interest to bring to the attention of the entity, the local authority with which it is connected or the public.

(2) In subsection (1) “ relevant matter ” means—

(a) a matter relating to the financial affairs of the entity for the financial year, or

(b) a matter relating to the corporate governance of the entity.

(3) A report under this section must be sent to the entity before the end of the period of 14 days starting with the day on which the report is made.

(4) A copy of a report under this section must be sent before the end of that period to—

(a) the local authority with which the entity is connected, and

(b) the Auditor General for Wales .

(5) The person appointed under this Chapter may—

(a) notify any person of the fact that the report has been made, and

(b) supply a copy of it or of any part of it to any person.

Section 46 Codes of practice

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

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

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

(4) A code of practice under section 10 of the Public Audit (Wales) Act 2013 must include provision prescribing the way in which persons appointed under this Chapter by the Auditor General for Wales are to carry out their functions under section 45.

(5) A person so appointed must, in the exercise of their functions under section 45, comply with such provision of such a code as is for the time being in force.

Section 47 Access to information

(1) A person appointed under this Chapter in relation to an entity (in this section referred to as an “ auditor ”) has a right of access at all reasonable times to every document relating to the entity which appears to the auditor necessary for the purpose of the exercise of their functions under section 45.

(2) The right conferred by subsection (1) includes power to inspect, copy or take away the document.

(3) An auditor may—

(a) require a person holding or accountable for any document referred to in subsection (1) to give to the auditor such information or explanation as the auditor thinks necessary for the purpose of the exercise of the auditor's functions under section 45, and

(b) if the auditor thinks it necessary, require the person to attend before the auditor in person to give the information or explanation or to produce the document.

(4) Without prejudice to subsection (3), an auditor may—

(a) require any officer or member of the entity to give to the auditor such information or explanation as the auditor thinks necessary for the purpose of the exercise of the auditor's functions under section 45, and

(b) if the auditor thinks it necessary, require the officer or member to attend before the auditor in person to give the information or explanation.

(5) In relation to any document kept in electronic form, the power in subsection (3)(b) to require a person to produce a document includes power to require it to be produced in a form in which it is legible and can be taken away.

(6) In connection with inspecting such a document, an auditor—

(a) may obtain access to, and inspect and check the operation of, any computer and associated apparatus or material which the auditor considers is or has been used in connection with the document;

(b) may require a person within subsection (7) to afford the auditor such reasonable assistance as the auditor may require for that purpose.

(7) The following persons are within this subsection—

(a) a person by whom or on whose behalf the computer is or has been used;

(b) a person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material.

(8) Without prejudice to subsections (1) to (7), the entity must provide the auditor with every facility and all information which the auditor may reasonably require for the purposes of the exercise of the auditor's functions under section 45.

(9) A person who without reasonable excuse obstructs the exercise of any power conferred by this section or fails to comply with any requirement of an auditor under this section is guilty of an offence.

(10) A person guilty of an offence under subsection (9) is liable on summary conviction—

(a) to a fine not exceeding level 3 on the standard scale, and

(b) to an additional fine not exceeding £20 for each day on which the offence continues after the person has been convicted of it.

(11) Any expenses incurred by an auditor in connection with proceedings for an offence under this section, so far as not recovered from any other source, are recoverable from the entity in relation to which the auditor is appointed.

(12) The powers under this section are in addition to any other powers which an auditor has in relation to the exercise of the auditor's functions under or pursuant to this Chapter.

Section 48 Consideration of report by entity

(1) Where a report is made under section 45 in relation to an entity, the report must be considered—

(a) in the case of a company, at a general meeting of the company (to be called by the directors under section 302 of the Companies Act 2006 (c. 46));

(b) in the case of a limited liability partnership, at a meeting of the members of the partnership;

(c) in the case of a registered society , at a meeting of the society in accordance with the rules of the society.

(2) The meeting must be held before the end of the period of one month starting with the day on which the report is sent to it.

(3) The notice of the meeting must include a copy of the report.

(4) At the meeting the entity must decide—

(a) whether the report requires it to take any action, and

(b) if so, what.

(5) The entity must notify the local authority with which it is connected of—

(a) its decision under subsection (4)(a), and

(b) any decision under subsection (4)(b).

(6) If under subsection (4)(a) the entity decides that the report does not require it to take any action, the notification under subsection (5)(a) must give reasons for that decision.

(7) The person who made the report may extend the period of one month mentioned in subsection (2) if satisfied that it is reasonable to do so to allow the entity to comply with its duties under this section.

(8) A period may be extended under subsection (7) more than once.

(9) This section does not affect any duties (so far as they relate to the subject-matter of a report) imposed by or under any other enactment.

Section 49 Consideration of report by local authority

(1) Where a report is made under section 45 in relation to an entity, the local authority with which the entity is connected must—

(a) consider the report and the entity's decision or decisions under section 48(4) at a relevant meeting, and

(b) decide whether the report and the decision or decisions require the authority to take any action, and if so what.

(2) A local authority must discharge its duty under subsection (1) before the end of the period of one month starting with the day on which the entity notifies the local authority under section 48(5).

(3) The person who made the report may extend the period of one month mentioned in subsection (2) if satisfied that it is reasonable to do so to allow the local authority to comply with its duty under subsection (1).

(4) A period may be extended under subsection (3) more than once.

(5) In subsection (1)(a) “ relevant meeting ” means—

(a) in the case of a local authority not operating executive arrangements, a meeting of the authority or of a committee of the authority;

(b) in the case of a local authority operating executive arrangements—

(i) a meeting of the executive, or

(ii) if the function referred to in that subsection is a responsibility of the authority, a meeting of the authority or of a committee of the authority.

(6) The notice given of the meeting to members of the authority or of the executive or committee of the authority (as the case may be) must include—

(a) a copy of the report, and

(b) a copy of the notification given by the entity under section 48(5).

(7) Subsections (8) and (9) apply in relation to a meeting of a local authority or of a committee of a local authority under this section.

(8) The following powers do not include power to exclude the report—

(a) the power under section 1(4)(b) of the Public Bodies (Admission to Meetings) Act 1960 (c. 67) to exclude items from the matter supplied under that section (supply of agenda etc to newspapers);

(b) the power under section 100BA(2) of the Local Government Act 1972 (c. 70) to—

(i) exclude documents from the documents published under section 100BA(1) of that Act, or

(ii) exclude items from the matter supplied under section 100BA(9) of that Act (public access to agenda and reports before meetings and supply of agenda etc to newspapers).

(9) Part 5A of the Local Government Act 1972 has effect in relation to the report as if section 100C(1B)(d) of that Act (public access to copies of reports for six years after meeting) were not limited to so much of the report as relates to an item during which the meeting was open to the public.

(10) In this section—

(a) “ executive ” and “ executive arrangements ” have the same meanings as in Part 2 of the Local Government Act 2000 (c. 22);

(b) references to a committee of a local authority include a sub-committee.

(11) This section does not affect any duties (so far as they relate to the subject-matter of a report under section 45) imposed by or under any other enactment.

Section 50 Fees

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

(1A) An entity in relation to which a person is appointed by the Auditor General for Wales under this Chapter must pay the Wales Audit Office, in accordance with a scheme for charging fees prepared under section 24 of the Public Audit (Wales) Act 2013, a fee in respect of the discharge by that person of any of the functions specified by subsection (2) in relation to the entity.

(2) Those functions are—

(a) functions under section 44(2) to (5);

(b) functions under sections 45 to 49.

(3) The entity must pay a fee under this section at such time, and otherwise in accordance with such requirements, as the Wales Audit Office may specify.

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

(4A) The amount of a fee payable under subsection (1A) is, subject as follows, to be such as may be specified in or determined under a scale or scales of fees prescribed by the Wales Audit Office for the purposes of this section.

But a fee charged under subsection (1A) may not exceed the full cost of exercising the function to which it relates.

(5) Before prescribing a scale of fees under subsection ... (4A) the Wales Audit Office must consult—

(a) such associations of local authorities, and

(b) such bodies of accountants,

as it considers appropriate.

(6) A scale of fees under this section is not to provide for the amount of a fee to be different depending on whether or not the person appointed under this Chapter is a member of staff of the Wales Audit Office .

(7) A scale of fees under this section and standard terms and conditions under section 43 are not to provide for fees of different amounts in respect of—

(a) the discharge of a function referred to in subsection (2)(a), and

(b) the discharge of an equivalent function pursuant to an appointment pursuant to section 43(1).

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

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) If it appears to the Wales Audit Office that the work involved in a particular case differed (or is likely to differ) substantially from that envisaged by the person prescribing the appropriate scale, the Wales Audit Office may charge a fee of an amount different from that referred to in subsection (4A) .