ukpga/1994/39 — Local Government etc. (Scotland) Act 1994

Local Government etc. (Scotland) Act 1994 1994 c. 39 An Act to make provision with respect to local government and the functions of local authorities; to make amendments in relation to local government finance, local authority accounts and the records of local authorities; to establish a Strathclyde Passenger Transport Authority for the purposes of the Transport Act 1968; to provide for the establishment of new water and sewerage authorities; to provide for the establishment of a council to represent the interests of customers and potential customers of those new authorities; to provide for the vesting in those new authorities of the property, rights and liabilities of the Central Scotland Water Development Board and of such property, rights and liabilities of regional and islands councils as those councils have as water authorities, as providers of sewerage and in relation to dealing with the contents of sewers; to provide for the dissolution of that Board; to cancel certain obligations to contribute towards expenses which have been incurred by local authorities in making provision for sewerage or disposal of sewage in rural localities; to create an office of Principal Reporter and transfer to him the functions of reporters to children’s hearings; to establish a body to facilitate the performance by the Principal Reporter of his functions; to amend the Social Work (Scotland) Act 1968 in relation to children’s hearings; to amend the procedure for making byelaws under section 121 of the Civic Government (Scotland) Act 1982; to transfer to local authorities responsibility for fixing and reviewing polling districts and polling places in Parliamentary elections; to amend section 21 of the Self-Governing Schools etc. (Scotland) Act 1989; to amend the law relating to roads and the placing of traffic signs on roads; to make amendments in relation to valuation and rating; to abolish the Scottish Valuation Advisory Council; to empower the Strathclyde Passenger Transport Authority to guarantee certain obligations; to empower local authorities to make grants to ethnic minorities; to confer on local authorities the function of promoting economic development; to provide for the establishment of area tourist boards; to make amendments in relation to lieutenancies; all as respects Scotland; and for connected purposes. [3rd November 1994] Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— Part I Local Government Reorganisation Chapter 1 Local Government Areas, Authorities and Elections Local government areas in Scotland. 1 1 Scotland shall, in accordance with the provisions of this Part of this Act, have local government areas for the administration of local government on and after 1st April 1996. 2 Scotland shall be divided into the local government areas named in column 1 of Part I of Schedule 1 to this Act, and those areas shall comprise the areas described in column 2 of Part I. 3 On 1st April 1996— a all local government areas existing immediately before that date which are regions or districts; and b all regional and district councils, shall cease to exist. 4 Part II of Schedule 1 (provisions as to boundaries) shall have effect. Constitution of councils. 2 1 For every local government area there shall be a council consisting of a convener and councillors. 2 Subject to any provision of this Act and of the Environment Act 1995 , the council for each local government area shall on and after 1st April 1996 have all the functions exercised immediately before that date in relation to their area by any existing regional, islands or district council. 3 The council for each local government area shall be a body corporate by the name “ The Council ” with the addition of the name of the particular area, and shall have a common seal. Orkney, Shetland and Western Isles. 3 1 The islands councils of Orkney, Shetland and the Western Isles shall continue to exist as bodies corporate but, on and after 1st April 1996— a they shall be known as “ Orkney Islands Council ”, “ Shetland Islands Council ” and “ Western Isles Council ”; and b their areas shall be known as “ Orkney Islands ”, “ Shetland Islands ” and “ Western Isles ”, respectively. 2 The islands councils consisting of the councillors elected for the islands areas of Orkney, Shetland and the Western Isles at the ordinary election held in 1994 shall continue as councils until the second ordinary election of councillors for the new councils held under section 5 of this Act. Convener and depute convener. 4 1 The council of each local government area shall elect a convener from among the councillors. 2 A council may elect a member of the council to be depute convener. 3 Subject to the provisions of this section and of Schedule 2 to this Act, the standing orders of a council may make provision for— a the duration of the term of office (which may not extend beyond the day on which the poll is held at the next ordinary election of the council); and b the procedure for early removal from office, of the convener and depute convener. 4 The election of the convener shall be the first business transacted at the first meeting of the council held after an ordinary election of councillors and at that meeting, until the convener is elected, the returning officer or, failing him, such councillor as may be selected by the meeting shall preside. 5 A person holding the office of convener or depute convener shall be eligible for re-election but shall cease to hold office upon ceasing to be a councillor. 6 On a casual vacancy occurring in the office of convener, an election to fill the vacancy shall be held as soon as practicable by the council at a meeting of the council the notice of which specifies the filling of the vacancy as an item of business, and the depute convener or, failing him, a councillor selected by the meeting shall preside. 7 The convener of each of the councils of the cities of Aberdeen, Dundee, Edinburgh and Glasgow shall, with effect from 1st April 1996, be known by the title of “ Lord Provost ”, and the convener of each other council shall be known by such title as that council may decide: Provided that no such other council may, without the consent of the Secretary of State, decide that their convener shall be known by the title of “ Lord Provost ”. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elections and term of office of councillors. 5 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1C After the ordinary election of councillors in 2017 the next ordinary election shall take place in 2022, and ordinary elections shall take place every fifth year after that. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Councillors shall retire on the day on which the poll is held at the ordinary election next following the date on which they were elected. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date of elections. 6 For subsection (1) of section 43 of the Representation of the People Act 1983 (day of ordinary local elections in Scotland) substitute— 1 In every year in which ordinary elections of councillors for local government areas in Scotland are held, the day of election is— a the first Thursday in May; or b such other day as may be fixed by the Secretary of State by order made by statutory instrument not later than 1st February in the year preceding the year or, in the case of an order affecting more than one year, the first year in which the order is to take effect. 1A An order made under subsection (1)(b) above shall be subject to annulment in pursuance of a resolution of either House of Parliament. . Establishment of new local authorities and supplementary provisions. 7 1 Schedule 2 to this Act shall have effect with respect to the establishment of the new local authorities, the suspension of elections of existing authorities and related matters. 2 This Part of this Act shall have effect, in relation to such establishment, subject to the provisions of that Schedule. 3 Schedule 2 shall not apply in relation to the councils of Orkney Islands, Shetland Islands and Western Isles. Chapter 2 Staff Transfer of employees. 8 1 Subject to the provisions of this section, the Secretary of State may by order make provision with respect to— a the transfer of employees from an existing local authority to a new authority with effect from 1st April 1996; and b any matters arising out of or related to such transfer. 2 An order under this section may, without prejudice to the generality of subsection (1)(a) above— a make provision as to the new authority to which groups of employees, or particular employees, are to be transferred; b prescribe a general rule or rules by which the transfer of employees, or of specified groups of employees, can be determined. 3 Each regional and district council shall, in accordance with the provisions of an order made under this section, prepare a scheme in relation to the transfer under or by virtue of this Act of their employees. 4 No scheme under subsection (3) above shall be made without the consent of the new authority or authorities, or of the new water and sewerage authority or authorities (within the meaning of Part II of this Act), to whom the employees concerned are to be transferred or, failing such consent, without the consent of the Secretary of State. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. 7 In this section— “ existing local authority ” includes a joint committee and a joint board but does not, subject to any other provision of this Act, include an islands authority; ... “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles), a residuary body and a joint board; and ... Effect of section 8 on contracts of employment. 9 1 This section applies to any person transferred from an existing local authority to a new authority under or by virtue of an order under section 8 of this Act. 2 The contract of employment between such a person (the “employee”) and his present employer shall not be terminated by the abolition of that employer but shall have effect from 1st April 1996 (the “transfer date”) as if originally made between the employee and such new authority (his “new employer”) as may be specified in relation to him in an order made under section 8 of this Act. 3 Without prejudice to subsection (2) above— a all the present employer’s rights, powers, duties and liabilities under or in connection with a contract to which that subsection applies shall by virtue of this section be transferred on the transfer date to the new employer; and b anything done before the transfer date by or in relation to the present employer in respect of that contract or the employee shall be deemed after that date to have been done by or in relation to the new employer. 4 Subsections (2) and (3) above are without prejudice to any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his terms and conditions of employment, but no such right shall arise by reason only of the change of employer effected by section 8 of this Act. 5 In this section— “ existing local authority ” includes a joint committee and a joint board but does not, subject to any other provision of this Act, include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles), a residuary body and a joint board. Continuity of employment. 10 1 This section applies to a person who at any time after the passing of this Act ceases to be employed by an existing local authority (his “former employer”) if— a the termination of his employment is attributable, directly or indirectly, to any provision made by or under this Act; b he is subsequently employed by another person (his “new employer”); and c by virtue of section 138 of the Employment Rights Act 1996 (renewal or re-engagement) that subsequent employment precludes his receiving any redundancy payment under Part XI of that Act. 2 Where this section applies to a person, Chapter I of Part XIV of the Employment Rights Act 1996 (computation of a period of employment for the purposes of that Act) shall have effect in relation to that person as if it included the following provisions, that is to say— a the period of employment of that person with his former employer shall count as a period of employment with his new employer; and b the change of employer shall not break the continuity of the period of employment. 3 Where this section applies to a person, the period of his employment with his former employer shall count as a period of employment with his new employer for the purposes of any provision of his contract of employment with his new employer which depends on his length of service with that employer. 4 In this section “ existing local authority ” includes a joint committee and a joint board but does not, subject to any other provision of this Act, include an islands authority. Remuneration of employees of local authorities. 11 1 For the purposes of this section the Secretary of State may, after consulting such associations of local authorities as appear to him to be appropriate— a designate such existing body as he considers appropriate; or b by order made by statutory instrument establish a new body, (in this section referred to, in either case, as “ the advisory body ”) to consider any increase made or proposed to be made by an authority in the remuneration of any of their employees. 2 An order under subsection (1)(b) above— a may make provision as to the constitution and membership of the body established; (b) may include provision as to the employment of staff and the remuneration and superannuation of the members and staff of the body; and c shall be subject to annulment in pursuance of a resolution of either House of Parliament. 3 For the purpose of enabling them to carry out their functions under this section, the advisory body shall consult and seek information from authorities and, if requested to do so by the advisory body, the Secretary of State may give a direction to any such authority requiring them to furnish to the advisory body such information as may be specified in the direction relating to the remuneration and other terms and conditions of employment of such employees of the authority as may be so specified. 4 If it appears to the advisory body that an authority have fixed or propose to fix for any employee or class of employee of theirs a rate of remuneration which, having regard to any recommended levels of remuneration formulated on a national basis by representatives of local authorities and employees of local authorities, is greater than that which the advisory body consider appropriate for that employee or class of employees, they shall notify the authority concerned and recommend to them the rate of remuneration which should be paid to the employee or class of employees concerned. 5 If it appears to the advisory body that an authority to whom they have made a recommendation under subsection (4) above are not complying with that recommendation, then, after giving notice in writing to the authority concerned of their intention to do so, they may refer the matter to the Secretary of State; and on such a reference the Secretary of State, after consultation with such associations of local authorities and of employees of local authorities as he considers appropriate in relation to the employee or class of employees concerned, may give a direction to that authority requiring them, with effect from such date as may be specified in the direction (not being earlier than the date on which notice was given to them by the advisory body), to pay such employee or class of employees of theirs as was the subject of the recommendation and as may be so specified remuneration at the rate recommended by the advisory body under subsection (4) above and specified in the direction. 6 An authority to whom a direction is given under subsection (3) or subsection (5) above shall comply with the direction. 7 If at any time in the period of three months beginning on 1st April 1996 it appears to the advisory body that the remuneration paid at any time before that date to any employee or class of employees of an existing local authority was such that, if that authority had not ceased to exist, the advisory body would have made a recommendation to the authority under subsection (4) above or, having made such a recommendation before that date, would have referred the matter to the Secretary of State under subsection (5) above, they shall notify the Secretary of State and report to him the rate of remuneration which in their opinion should have been paid to the employee or class of employees concerned immediately before 1st April 1996 or such earlier date as may be specified in the report, being the date on which the employee or employees ceased to be employed by the local authority concerned. 8 On receiving a report under subsection (7) above the Secretary of State may, after such consultation as is specified in subsection (5) above, by order made by statutory instrument provide that, for the purposes of the provisions of this Act, or of any regulations made under section 24 of the Superannuation Act 1972 (compensation for loss of office etc.), relating to transfer of officers and compensation for loss of office, the employee or class of employees to whom the report relates and who are specified in the order shall be deemed to have been receiving, immediately before 1st April 1996 or such earlier date as may be specified in the report, remuneration at the rate stated in the report and specified in the order. 9 An order made under subsection (8) above shall be subject to annulment in pursuance of a resolution of either House of Parliament. 10 In this section— “ authority ” means an existing local authority and a new authority; “ existing local authority ” includes a joint committee and a joint board but does not include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands and Western Isles) and a joint board. 11 The Secretary of State may not give a direction under subsection (5) above nor make an order under subsection (8) above after 31st March 1997. Staff commission. 12 1 The Secretary of State shall, after such consultation, whether before or after the passing of this Act, as he thinks fit, by order establish a staff commission for the purpose of carrying out such functions in relation to the staff and staffing of authorities as he may consider appropriate. 2 Without prejudice to the generality of subsection (1) above, an order under this section may confer on the staff commission the functions of— a considering and keeping under review the arrangements for the recruitment of staff by new authorities and for the transfer in consequence of this Act or of any instrument made under it of staff employed by existing local authorities which cease to exist by virtue of Chapter 1 of this Part of this Act; b considering such staffing problems arising out of, in consequence of or in connection with any provision of or instrument made under this Act as may be referred to them by the Secretary of State or by any authority; c advising the Secretary of State as to the steps necessary to safeguard the interests of such staff; and d advising authorities, either by the commission or by persons nominated by them. 3 An order under this section may make provision as to the constitution and membership of the commission, the appointment and removal from office by the Secretary of State of the chairman and members of the commission, the employment of staff and the remuneration and superannuation of the members and staff of the commission. 4 The Secretary of State may give directions— a to the staff commission as to— i the carrying out by them of their functions; and ii their procedure; b to any authority with respect to the furnishing by them of information requested by the commission; and c to any authority with respect to— i the implementation by them of any advice given by, or by persons nominated by, the commission; and ii the payment by them of any expenses incurred by the commission in doing anything requested by them. 5 Any expenses incurred by the staff commission and not recovered by them from an authority shall be paid by the Secretary of State out of money provided by Parliament. 6 The Secretary of State may by order provide for the winding up of the commission and the disposal of their assets. 7 An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. 8 In this section— “ authority ” means an existing local authority and a new authority; “ existing local authority ” includes a joint committee and a joint board but does not, except as may be provided by any other provision of this Act, include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles), a residuary body and a joint board. Compensation for loss of office or diminution of emoluments. 13 1 This section applies to any person who at any time after the passing of this Act is in the service of— a an existing local authority; b a new authority; or c a residuary body, and who suffers loss of employment or diminution of emoluments which is attributable to any provision made by, under or by virtue of this Act. 2 Where the Secretary of State makes provision by regulations under section 24 of the Superannuation Act 1972 (compensation for loss of office etc.) in relation to compensation in respect of any such loss or diminution as is referred to in subsection (1) above, such compensation shall be paid only in accordance with those regulations; and accordingly none of the bodies mentioned in subsection (1) above shall pay any such compensation under any other statutory provision, by virtue of any provision in a contract, or otherwise. 3 Subsection (2) above shall not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by him on or before 9th December 1993. 4 Regulations under the said section 24 shall not provide compensation for a person to whom this section applies in respect of any such loss or diminution as is mentioned in subsection (1) above so far as attributable to the termination (without prejudice to the provision of compensation where the said loss or diminution is attributable otherwise than to such termination) on or before 1st April 1996 of a contract made after 9th December 1993 which provides for the employment of that person for a fixed term extending beyond 1st April 1996. 5 For the purpose of determining under section 138 or 141 of the Employment Rights Act 1996 (renewal of contract or re-engagement) — a whether the provisions of a new contract offered to a person employed by any such body as is mentioned in subsection (1) above differ from the corresponding provisions of his previous contract; and b whether employment under the new contract is suitable in relation to that person, there shall be treated as forming part of the remuneration payable under the new contract any compensation to which that person is or, if he accepted the offer, would be entitled in accordance with this section. 6 Except as provided in subsection (5) above nothing in this section shall be construed as affecting any entitlement to a redundancy payment under Part XI of the Employment Rights Act 1996 or to any payment by virtue of any provision of the Superannuation Act 1972 other than the said section 24. 7 In this section— “ existing local authority ” includes a joint committee and a joint board but does not, except as may be provided by any other provision of this Act, include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles) and a joint board. Employment by new authorities. 14 1 If a new authority enter into a contract of employment with a person who has received or is entitled to receive a redundancy payment under Part XI of the Employment Rights Act 1996 — a by reason of his dismissal at any time— i after the passing of this Act by a regional or district council; or ii after the passing of this Act and before 1st April 1996 by a joint committee or a joint board; or b by reason of his having been employed, immediately before 1st April 1996, by such a council, committee or board under a contract of employment which would have continued but for the abolition of such councils, committees or boards on that date and who is not transferred to a new authority by virtue of an order under section 8 of this Act, the authority shall, if the Secretary of State so directs, pay to him, or to such person as he may direct, an amount equal to the redundancy payment. 2 The Secretary of State shall not give a direction under subsection (1) above in respect of the employment of any person by a new authority if the authority satisfy him— a that they could not reasonably have made that person an offer of employment on the terms and conditions of the contract first mentioned in that subsection which, if accepted by him, would have precluded his entitlement to the redundancy payment; or b that the authority made such an offer but that the person concerned acted reasonably in refusing it; or c that he could reasonably have refused such an offer if it had been made by the authority. 3 In any case in which an amount is payable by a new authority under subsection (1) above there shall also be payable by them to the Secretary of State or to such person as he may direct an amount equal to any compensation under the regulations referred to in section 13(2) of this Act which has been paid or is payable to the person concerned before the time when he enters into the contract. 4 In this section “ new authority ” means any of the authorities constituted under section 2 of this Act and a joint board. Chapter 3 Property Transfer of property. 15 1 Subject to subsection (5) below, the Secretary of State may by order provide that any property vested in one or more existing local authorities immediately before 1st April 1996 shall on that date be transferred to and vest in such new authority or authorities as may be specified in or determined under the order. 2 An order under this section may include provision for the transfer of all rights, liabilities and obligations of an existing local authority on 1st April 1996 to such new authority or authorities as may be specified in or determined under the order. 3 An order under this section may make different provision in relation to— a different items or categories of property; b different, or different categories of, rights, liabilities or obligations; and c different authorities. 4 The power to transfer property conferred by this section includes power to transfer property which is held by an existing local authority as part of the common good, but such property may not be transferred to a residuary body and, in administering such property, any authority to which it is transferred shall— a except in the case of the councils for Aberdeen, Dundee, Edinburgh and Glasgow, have regard to the interests of the inhabitants of the area to which the common good related prior to 16th May 1975; and b in the case of the councils for Aberdeen, Dundee, Edinburgh and Glasgow, have regard to the interests of all the inhabitants of their areas. 5 This section does not apply to any property which is transferred under or by virtue of section 16, 17 or 91 of this Act. 6 Orders under this section shall be made by statutory instrument, and a statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament. 7 For the purposes of this section— “ existing local authority ” includes a joint committee and a joint board but does not, subject to any other provision of this Act, include an islands authority; “ new authority ” means any of the authorities constituted under section 2 of this Act, and includes a joint board and a residuary body; and “ property ” includes any records held by, or in the custody of, an existing local authority. Property held on trust. 16 1 All property held on trust immediately before 1st April 1996 by— a an existing local authority; or b a councillor and the proper officer or a specified officer of such an authority, shall on that day be transferred to and vest (subject to the same trust) in the appropriate new authority. 2 The authority in whom property is vested by virtue of subsection (1) above shall nominate a sufficient number of their councillors to act as trustees of that property and in so doing shall have regard to the terms of the trust deed; and where the property is held immediately before 1st April 1996 by the persons mentioned in subsection (1)(b) above, the authority shall nominate the proper officer as one of the trustees. 3 All property held on trust immediately before 1st April 1996 by a specified officer of an existing local authority shall on that date be transferred to and vest (subject to the same trust) in the proper officer of the appropriate new authority. 4 Where, immediately before 1st April 1996, property is held on trust by the holder of an office, whether as a councillor, the proper officer or a specified officer, connected with an existing local authority or authorities and any other person, the appropriate new authority or authorities shall, on the application of the trustees, nominate a sufficient number of their councillors to act in place of such holder and in so doing shall have regard to the terms of the trust deed and, where the terms of the trust deed so require, the said authority or authorities shall nominate their proper officer or the proper officer of one of them as one of the trustees. 5 Where the area of the existing local authority in which, or in any councillor or officer of which, any trust property is vested falls entirely within the area of a new authority, that new authority is the appropriate new authority for the purposes of this section. 6 Where the area of the existing local authority in which, or in any councillor or officer of which, any trust property is vested falls within the area of two or more new authorities, those authorities may agree in writing as to which of them is or are the appropriate new authority or authorities for the purposes of this section; and such agreement shall be conclusive as to the vesting of the property in one or more of those new authorities. 7 Where the authorities mentioned in subsection (6) above cannot reach agreement as to the vesting of any trust property any of them may refer the matter to the Secretary of State, who may give a direction as to which is the appropriate authority or, as the case may be, which are the appropriate authorities; and a direction by the Secretary of State under this subsection shall be conclusive as to the vesting of the trust property in the new authority or authorities concerned. 8 An agreement under subsection (6) above and a direction under subsection (7) above may relate to trust property generally, or to particular items, types or classes of such property, or to trust property situated in a particular part of an authority’s area. 9 In this section— “ existing local authority ” includes a joint committee and a joint board but does not include an islands authority; and “ new authority ” includes any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles) and a joint board. 10 This section shall not apply to property which is subject to section 17 of this Act. Educational endowments. 17 1 Where, immediately before 1st April 1996, educational endowments are to any extent vested in an existing local authority, the Secretary of State may by order make schemes providing for such endowments, on that date, to be transferred to and vest to the same extent in such new authority or authorities as may be specified in or determined under the scheme. 2 A scheme made under this section may provide for educational endowments, to the extent that they are vested by virtue of his office in the holder of an office connected with an existing local authority or in a person nominated by such an authority, to be transferred to and vest in a person holding an office in, or nominated by, such new authority or authorities as may be specified in or determined under the scheme. 3 A scheme under this section may provide for powers with respect to an educational endowment which are vested in an existing local authority or, by virtue of his office, in the holder of an office connected with such an authority or in a person nominated by such an authority, to be transferred to and vest in such new authority or authorities or, as the case may be, in a person holding office connected with, or nominated by, such an authority, as may be specified in or determined under the scheme. 4 A scheme under this section may provide for any rights to be paid money out of an educational endowment which are vested in an existing local authority to be transferred to and vest in such new authority or authorities as may be specified in or determined under the scheme. 5 The Secretary of State may require any existing local authority to provide him, in such form as he may specify, with their proposals for the transfer, in accordance with the provisions of this section, of any such educational endowments, powers or rights as are mentioned in subsections (1), (2), (3) or (4) above. 6 Subject to subsection (7) below, a scheme under this section may make such provision in relation to an educational endowment as the Secretary of State considers appropriate and, without prejudice to the generality of the foregoing, may include provision for— a amending or revoking the governing instrument of an endowment; b grouping, amalgamating, combining or dividing any endowments; c the purposes to which, and the conditions under which, any such endowments may be applied; d incorporating or establishing new governing bodies, or dissolving, combining or uniting any governing bodies; e the powers of the governing body of any endowment. 7 In exercising his powers under subsection (6) above, the Secretary of State shall make no more changes with respect to any endowment than appear to him to be necessary or expedient in consequence of the alteration of local government areas effected by this Part of this Act. 8 Schemes under this section may make different provision in relation to different endowments or categories of endowment, different provision in respect of different items or categories of property, rights, liabilities and obligations, and different provision in respect of different authorities. 9 Subject to the provisions of the governing instrument of an educational endowment (including such an instrument made or amended by a scheme under this section), where, as the result of the election of a new authority occurring after 1st April 1996, it is necessary for a person to be nominated by the authority or by a committee thereof to be vested (to any extent) with the endowment, in terms of subsection (2) above, or to be vested with any power, in terms of subsection (3) above, that person shall be so nominated at the first meeting of the authority or committee held after it has been elected or appointed; and in such a case the person who (to the said extent) was last vested with the endowment or, as the case may be, who was last vested with the power, before the meeting shall continue therein until the date of the meeting. 10 Section 19 of this Act applies in relation to educational endowments as it applies in relation to the property referred to in that section. 11 An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. 12 Expressions used in this section and in Part VI of the Education (Scotland) Act 1980 have the same meaning in this section as in that Part. 13 Nothing in this section shall affect any other power to reorganise any educational endowment or otherwise to alter the provisions of any trust. 14 In this section— “ authority ” includes an existing local authority and a new authority; “ existing local authority ” includes a joint committee and a joint board but does not include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands or Western Isles) and a joint board. Residuary bodies. 18 1 The Secretary of State may by order establish one or more bodies, to be known as “ residuary bodies ”, for the purpose of— a taking over and exercising such functions with respect to such property, rights and liabilities as may be transferred under section 15 of this Act; and b exercising such other functions, including, without prejudice to the generality of the foregoing, any functions which may be conferred on a property commission under section 19 of this Act, as he may so prescribe. 2 An order under this section may apply to a residuary body, with such modifications as may be specified, any enactment which applies to a local authority in Scotland. 3 The Secretary of State may give directions to a residuary body as to— a the carrying out by them of any of their functions; and b the exercise by them of any of the powers conferred on them by or under this section. 4 The Secretary of State may require a residuary body to make payments of such amounts, and at such times, as he may specify to a local authority or a joint board. 5 The Secretary of State may require any local authority in the area in which a residuary body operates to meet such proportion of their expenses as he may determine. 6 Any expenses incurred by a residuary body shall, in so far as they are not otherwise met, be paid by the Secretary of State out of money provided by Parliament. 7 The Secretary of State may direct a residuary body to prepare, within such time as he may specify in the direction, a scheme for their winding up and for the disposal of their property, rights and liabilities. 8 Subject to subsection (9) below, where a residuary body have prepared a scheme such as is mentioned in subsection (7) above, the Secretary of State may by order give effect to that scheme, subject to any modifications he considers appropriate, and any such order may— a include provision for the disposal, whether by transfer or otherwise, of the body’s property; and b contain such supplementary and transitional provision as the Secretary of State thinks necessary or expedient. 9 Where a residuary body is wound up in accordance with an order under subsection (8) above sections 8, 9, 10 and 13 of this Act shall apply, with any necessary modifications, to the staff of the residuary body as they apply to the staff of an existing local authority. 10 Schedule 3 to this Act has effect in relation to residuary bodies. 11 An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. Property commission. 19 1 Subject to subsection (2) below and after such consultation, whether before or after the passing of this Act, as he considers appropriate, the Secretary of State may by order establish a property commission for the purpose of— a advising authorities on matters relating to property to be transferred from existing local authorities to new authorities; b advising the Secretary of State on the general principles on which such property should be transferred; and c carrying out such other functions in relation to the transfer of property as may be specified in the order, and for the purposes of this section “ property ” includes property held on trust to which section 16 of this Act applies. 2 An order under this section may make provision as to the constitution and membership of the commission, the appointment and removal from office by the Secretary of State of the chairman and members of the commission, the employment of staff and the remuneration and superannuation of the members and staff of the commission. 3 The Secretary of State may give directions— a to the commission as to the carrying out by them of their functions; b as to the area or areas in which the commission are to carry out their functions; c as to the procedure to be followed by the commission; d for the supplying of information to the commission by any authority; and e to any authority— i as to the implementation of advice given to them by the commission; and ii as to the payment by them of any expenses incurred by the commission in doing anything requested of them by that authority. 4 The Secretary of State may by order provide for the winding up of the commission and the disposal of their assets. 5 Any expenses incurred by the property commission and not recovered by them from an authority shall be paid by the Secretary of State out of money provided by Parliament. 6 An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. 7 In this section— “ authority ” includes an existing local authority and a new authority; “ existing local authority ” includes a joint committee and a joint board but does not include an islands authority; and “ new authority ” means any of the authorities constituted under section 2 of this Act (other than Orkney Islands, Shetland Islands and Western Isles) and a joint board. Chapter 4 General Joint committees and joint boards. 20 After section 62 of the 1973 Act (standing orders, etc.) there shall be inserted— Incorporation of joint committees. 62A 1 Where— a arrangements are made (whether under this Act or any other enactment) for two or more local authorities (in this Part of this Act referred to as “ the relevant authorities ”) to discharge any of their functions, or any functions in any area, jointly; b the relevant authorities have— i appointed, or propose to appoint, a joint committee to discharge those functions; and ii advertised their proposals in accordance with subsection (2) below; and c application is made, in writing, to the Secretary of State by the relevant authorities for the incorporation of that joint committee (or proposed joint committee) as a joint board to carry out those functions, the Secretary of State may by order establish a joint board in accordance with this section to discharge those functions. 2 Before applying to the Secretary of State under subsection (1)(c) above, the relevant authorities shall place in at least one daily newspaper circulating in their areas an advertisement— a giving brief details of what they propose to do; b giving an address to which representations about the proposal may be sent; and c fixing a date, being not less than 8 weeks after the date on which the advertisement appears, within which representations may be made, and they shall include with their application evidence that an advertisement has been placed. 3 Where any representations are timeously made in response to an advertisement placed in accordance with subsection (2) above, the relevant authorities shall consider them and shall include with their application a statement that they have done so. 4 An order under subsection (1) above shall delegate to the joint board such of the functions of the relevant authorities as may be specified in the order and may include provision with respect to— a the constitution and proceedings of the joint board; b matters relating to the membership of the joint board; c the transfer to the joint board of any property, rights and liabilities of the relevant authorities; d the transfer to the joint board of any staff of the relevant authorities; e the supply of services or facilities by the relevant authorities to the joint board, and may, without prejudice to the generality of paragraphs (a) to (e) above, apply (with or without modifications) any of the provisions of Part V of this Act to a joint board as those provisions apply to a joint committee. 5 A joint board established under this section shall be a body corporate and shall have a common seal. 6 An order under subsection (1) above shall be in terms agreed by the relevant authorities. 7 An instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament. Power of Secretary of State to establish joint boards. 62B 1 Where the Secretary of State considers— a that any functions, or any functions in any area, of the relevant authorities should be discharged jointly by those authorities; and b that arrangements, or satisfactory arrangements, for the joint discharge of those functions— i have not been made by the relevant authorities; or ii have ceased to be in operation, he may, after consulting the relevant authorities, by order establish a joint board in accordance with this section. 2 Subsections (4) and (5) of section 62A of this Act shall apply to a joint board established under this section as they apply to a joint board established under that section with the substitution of a reference to subsection (1) of this section for the reference to subsection (1) of that section. 3 No order shall be made under subsection (1) above unless a draft of the instrument containing the order has been laid before, and approved by resolution of, each House of Parliament. Further provisions relating to joint boards. 62C 1 Where a joint board has been established by order under section 62A or 62B of this Act, the Secretary of State may by order provide— a for excluding any functions, or any functions in any area, from those specified in the order establishing that joint board; and b for the dissolution of the joint board. 2 An order shall not be made under subsection (1) above unless the Secretary of State has consulted the relevant authorities. 3 An instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament. 4 The power to make an order under this section or section 62A or 62B of this Act shall include power to make such transitional, incidental, supplemental or consequential provision as the Secretary of State thinks necessary or expedient. 5 An order under this section or section 62A or 62B of this Act may, for the purpose of making such provision as is mentioned in subsection (4) above— a apply with or without modifications; b extend, exclude or amend; or c repeal or revoke with or without savings, any enactment or any instrument made under any enactment. . Application of section 211 of the 1973 Act to joint boards. 21 In section 211 of the 1973 Act (provisions for default of local authority), after subsection (4) insert— 5 The provisions of this section shall apply to a joint board as they apply to a local authority. . Community councils. 22 1 Subject to subsection (2) below, schemes for the establishment of community councils made and approved under section 52 of the 1973 Act, including any such schemes as amended by virtue of section 53 of that Act, which are effective immediately before 1st April 1996 shall continue to have effect in respect of the area, or part of an area, to which they apply on and after that date. 2 Without prejudice to their duty under section 53 of the 1973 Act, on and after 1st April 1996, a local authority may revoke a scheme (or an amended scheme) such as is mentioned in subsection (1) above in so far as it relates to their area and make a new scheme in accordance with this section. 3 Where a local authority propose to make a new scheme such as is mentioned in subsection (2) above— a they shall give public notice of their intention to revoke the existing scheme and make a new scheme for the establishment of community councils, and any such notice shall invite the public, within a period of not less than eight weeks from the date of the notice, to make suggestions as to the areas and composition of the community councils; b after considering suggestions made under paragraph (a) above, the local authority shall prepare and give public notice of a draft scheme which shall contain— i a map showing the boundaries of the proposed areas of community councils and their populations, and the boundaries of any area for which the local authority consider a community council to be unnecessary; ii where a local authority consider that a community council is unnecessary for any area, a statement of their reasons for arriving at that conclusion; iii provisions relating to qualifications of electors, elections or other voting arrangements, composition, meetings, financing and accounts of community councils; iv provisions concerning the procedures to be adopted by which the community councils on the one hand and the local and public authorities with responsibilities in the areas of the community councils on the other will keep each other informed on matters of mutual interest; and v such other information as, in the opinion of the local authority, will help the public to make a reasonable appraisal of the scheme; c the notice mentioned in paragraph (b) above shall invite the public, within a period of not less than eight weeks from the date of the notice, to make representations to the local authority as respects the draft scheme; d after considering any representations made under paragraph (c) above, the local authority may, after giving public notice of the amendments to the proposals and a further invitation to make representations, amend the draft scheme to take account of those representations and adopt it; e the local authority shall give public notice of the scheme in its adopted form together with public notice of such a scheme as it applies to each proposed area, by exhibition in that area, and any such notice shall contain an invitation to electors in the area concerned to apply in writing to the authority for the establishment of a community council in accordance with the scheme. Duty to prepare decentralisation schemes. 23 1 Every council shall have a duty to prepare a draft decentralisation scheme for their area in accordance with this section. 2 A draft decentralisation scheme shall contain a council’s proposals for the administration of their functions within the whole area of the council and shall specify the date or dates by which such a draft scheme shall be implemented and, without prejudice to the generality of the foregoing, may include provision as to— a arrangements for the holding of meetings of the council (or any committee or sub-committee of the council) at particular places within the area of the council; b the establishment of committees for particular areas and the delegation to those committees (under section 56 of the 1973 Act) of specified functions of the council; c the location of offices of the council within the council’s area, the staffing of such offices and the delegation to members of staff (under the said section 56) of specified functions; d the provision of facilities at particular places within the area of the council where advice may be obtained on services provided by the council. 3 Every council shall, before 1st April 1997, give public notice of the fact that they have prepared a draft decentralisation scheme and of the places within their area where copies of the draft scheme may be inspected, and any such notice shall invite the public, within a period of not less than eight weeks from the date of the notice, to make to the council representations as regards the draft scheme. 4 Every council shall, during the period mentioned in subsection (3) above, consult the community councils within their area about the draft scheme. 5 After considering any representations made under subsection (3) or (4) above, the council may amend the draft scheme (whether to take account of those representations or otherwise) and shall adopt the scheme. 6 After the scheme has been adopted, the council shall— a send a copy of the scheme in its adopted form to the Secretary of State; and b give public notice of such scheme. 7 Where a scheme has been adopted, it shall be the duty of the council concerned to implement the scheme by the date or dates specified in the scheme. 8 A council may amend a scheme adopted under this section or revoke and replace such a scheme but the amended scheme or, as the case may be, new scheme shall be adopted in accordance with the provisions of this section, subject to such modifications as are necessary. 9 The Secretary of State may, after consulting such associations of local authorities and such other persons as appear to him to be appropriate, issue guidance with respect to the form and content of decentralisation schemes. 10 A council shall take account of any guidance issued under subsection (9) above. Chapter 5 Finance Transitional provisions Transitional provisions: finance. 24 After section 94 of the 1992 Act insert— Transitional provisions. 94A 1 The Secretary of State may, after consulting such associations of local authorities as appear to him to be appropriate, specify in a report, as regards the financial year 1996-97 and any local authority, the amount which in his opinion should be used as the basis of comparison for the purposes of paragraph 1(1) of Schedule 7 to this Act. 2 A report under this section— a shall contain such explanation as the Secretary of State considers desirable of the calculation by him of the amount mentioned in subsection (1) above; and b shall be laid before the House of Commons. 3 A report under this section may relate to two or more authorities and may be amended by a subsequent report under this section. 4 If a report under this section is approved by resolution of the House of Commons, paragraph 1(1) of Schedule 7 to this Act shall have effect, as regards the financial year 1996-97 and any authority to which the report relates, as if the amount mentioned in subsection (1) above were the basis of comparison there referred to. 5 This section shall not apply in relation to Orkney Islands, Shetland Islands and Western Isles. . Financing of new authorities prior to 1st April 1996. 25 1 The Secretary of State may with the consent of the Treasury make grants of such amounts, and subject to such conditions, to local authorities as he considers appropriate. 2 A local authority may with the consent of the Secretary of State (who shall in turn seek the consent of the Treasury) borrow by way of temporary loan or overdraft from a bank or otherwise any sums which they may temporarily require for the purpose of defraying expenses (including the payment of sums due by them to meet the expenses of other authorities) pending the receipt of revenues receivable by them after 1st April 1996. 3 Grants made under this section shall be made out of money provided by Parliament. 4 In this section “ local authority ” means any of the local authorities the members of which are to be elected, in accordance with section 5 of this Act, on 6th April 1995. Valuation and rating Valuation lists. 26 1 Subject to the provisions of this section, the local assessor for each new local authority area shall compile for the council for that area, from the existing valuation lists, a valuation list as at 1st April 1996. 2 The provisions of section 84 of the 1992 Act (compilation and maintenance of valuation lists) shall apply, with any necessary modifications, to a valuation list compiled under subsection (1) above as they apply to a valuation list compiled under that section. 3 As soon as reasonably practicable after compiling a valuation list under subsection (1) above, the local assessor shall send a copy of the list to the council for whose area the list was compiled; and the council shall, as soon as reasonably practicable, deposit it at their principal office. 4 Subsection (1) above does not apply to the local assessors for the councils of the Borders, Dumfries and Galloway, Fife, Highland, Orkney Islands, Shetland Islands or Western Isles. 5 In this section— “ existing valuation lists ” means the lists maintained under the said section 84 of the 1992 Act on the day on which this section comes into force in relation to the area of any regional council whose area includes any part of the area of the new authority; and “ valuation list ” has the same meaning as in the 1992 Act. 6 A local assessor shall compile a list under this section by extrapolating from the existing valuation lists and, accordingly, except to the extent that valuation may be required to be carried out under any provision of the 1992 Act, shall not carry out any valuation of property for the purposes of a list compiled under this section. Valuation areas and authorities and appointment of assessors etc. 27 1 Each local authority area shall be a valuation area, and the council of each area shall be the valuation authority for that area; and on and after 1st April 1996 the valuation authorities constituted under this section shall have and exercise in relation to valuation the powers exercisable by valuation authorities immediately prior to that date. 2 Every valuation authority shall, in accordance with the provisions of this section, appoint an assessor and such number of depute assessors as the authority may consider necessary for the purposes of the Valuation Acts; and any assessor or depute assessor appointed under the 1973 Act by a regional or islands council and holding office immediately before 1st April 1996 shall cease to hold office on that date. 3 The Secretary of State shall by order prescribe the qualifications required to be possessed by any person appointed to the office of assessor or depute assessor and, except as otherwise provided in such an order, a person shall not be appointed as assessor or depute assessor unless he possesses the qualifications so prescribed. 4 A depute assessor appointed under this section shall have and may exercise all the functions of an assessor so appointed. 5 An assessor or depute assessor appointed under this section shall hold office on such reasonable terms and conditions, including conditions as to remuneration, as the authority appointing him think fit. 6 An assessor or depute assessor appointed under this section shall hold office during the pleasure of the valuation authority but shall not be removed from office (or required to r