The Local Government Act 1988 (Competition) (England) (No. 2) Regulations 1997 No. 2732


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Statutory Instruments

1997 No. 2732

LOCAL GOVERNMENT, ENGLAND AND WALES

The Local Government Act 1988 (Competition) (England) (No. 2) Regulations 1997

Made

17th November 1997

Laid before Parliament

21st November 1997

Coming into force

12th December 1997

The Secretary of State for the Environment, in exercise of the powers conferred on him by sections 6(3) and 15(6) of the Local Government Act 1988(1), and of all other powers enabling him in that behalf, hereby makes the following Regulations-

Citation, commencement and application

1.-(1) These Regulations may be cited as the Local Government Act 1988 (Competition) (England) (No. 2) Regulations 1997 and shall come into force on 12th December 1997.

(2) These Regulations apply to defined authorities in England only.

Interpretation

2. In these Regulations-

"the construction regulations" means the Local Government Act 1988 (Competition) (Construction and Property Services) (England) Regulations 1994(2);

"the financial services regulations" means the Local Government Act 1988 (Competition) (Financial Services) (England) Regulations 1995(3);

"the housing management regulations" means the Local Government Act 1988 (Competition) (Housing Management) (England) Regulations 1994(4);

"the information technology regulations" means the Local Government Act 1988 (Competition) (Information Technology) (England) Regulations 1995(5);

"the legal services regulations" means the Local Government Act 1988 (Competition) (Legal Services) (England) Regulations 1994(6);

"the personnel services regulations" means the Local Government Act 1988 (Competition) (Personnel Services) (England) Regulations 1995(7).

Amendments to the construction regulations

3.-(1) The construction regulations are amended in accordance with paragraphs (2) to (4) below.

(2) With effect from 1st October 1998 in regulation 2 (interpretation)-

(a)substitute the following for the definition of "allowable period"-

(b)substitute the following for the definition of "the cost"(8)-

(c)substitute the following for the definition of "the specified proportion"-

(d)after the definition of "specified work" insert-

""structural change" means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;(11); "and

(e)substitute the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work.".

(3) With effect from 1st October 1998-

(a)after "2." insert "-(1)"; and

(b)at the end of new paragraph (1) insert-

"(2) The description for the purposes of-

(a)the definition of "allowable period"; and

(b)assigning a value to J in the formula set out in the definition of "the specified proportion",

is a local authority which is subject to, or created by, a structural change taking effect on 1st April 1996, 1st April 1997 or 1st April 1998.".

(4) With effect from 31st March 1998, in regulation 3 (application of section 6)(12)-

(a)in paragraph (a), omit the words from "or boundary" to "("a structural change")";

(b)in paragraph (b), for "1st April 1998" substitute "1st October 1998"; and

(c)in paragraph (c), for "1st April 1999" substitute "1st October 1999".

Amendments to the financial services regulations

4.-(1) The financial services regulations are amended in accordance with paragraphs (2) and (3) below.

(2) With effect from 1st January 1999, in regulation 2 (interpretation)-

(a)substitute the following for the definition of "the cost"(13)-

(b)substitute the following for the definition of "the specified proportion"-

(c)after the definition of "specified work" insert-

""structural change" means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;(16); "and

(d)substitute the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work".

(3) With effect from 30th September 1998, in regulation 3 (application of section 6), in paragraph (1)-

(a)in sub-paragraph (a), omit the words from "or boundary" to "("a structural change")";

(b)in sub-paragraph (b), for "1st October 1988" substitute "1st April 1999";

(c)in sub-paragraph (c), for "1st October 1999" substitute "1st January 2000"; and

(d)in sub-paragraph (d)(17), for "1st October 1998" substitute "1st April 1999".

Amendments to the housing management regulations

5. Regulation 2 (interpretation) of the housing management regulations is amended, with effect from 1st October 1998-

(a)by the insertion, after the definition of "the Act", of the following definition-

(b)in the definition of "the specified proportion", by the substitution-

(i)for the definition of "T", of the following-

(ii)for the definition of "B", of the following-

(c)by the substitution of the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work.".

Amendments to the information technology regulations

6.-(1) The information technology regulations are amended in accordance with paragraphs (2) and (3) below.

(2) With effect from 1st April 1999, in regulation 2 (interpretation)-

(a)substitute the following for the definition of "the cost"(18)-

(b)substitute the following for the definition of "the specified proportion"-

(c)after the definition of "specified work" insert-

""structural change" means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;"; and

(d)substitute the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work.".

(3) With effect from 31st March 1998, in regulation 3 (application of section 6)-

(a)in paragraph (1)(a), omit the words from "or boundary" to "("a structural change")";

(b)in paragraph (1)(b), for "1st October 1999" substitute "1st April 2000"; and

(c)in paragraph (1)(d), for "1st April 1999" substitute "1st April 2000".

Amendment of the legal services regulations

7.-(1) The legal services regulations are amended in accordance with paragraphs (2) and (3) below.

(2) With effect from 1st October 1998, in regulation 2 (interpretation)-

(a)substitute the following for the definition of "the cost"(21)-

(b)substitute the following for the definition of "the specified proportion"-

(c)after the definition of "specified work" insert-

""structural change" means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;"; and

(d)substitute the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work".

(3) With effect from 31st March 1998, in regulation 3(1) (application of section 6)-

(a)in paragraph (a), omit the words from "or boundary" to "("a structural change")";

(b)in paragraph (b), for "1st April 1998" substitute "1st October 1998";

(c)in paragraph (c), for "1st April 1999" substitute "1st October 1999".

Amendment of the personnel services regulations

8.-(1) The personnel services regulations are amended in accordance with paragraphs (2) and (3) below.

(2) With effect from 1st January 1999, in regulation 2 (interpretation)-

(a)substitute the following for the definition of "the cost"(24)-

(b)substitute the following for the definition of "the specified proportion"-

(c)after the definition of "specified work" insert-

""structural change" means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;(27); "and

(d)substitute the following for the definition of "voluntary competitive tendering"-

""voluntary competitive tendering" means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work".

(3) With effect from 31st March 1998, in regulation 3 (application of section 6), in paragraph (1)-

(a)in sub-paragraph (a), omit the words from "or boundary" to "("a structural change")";

(b)in sub-paragraph (b), for "1st October 1998" substitute "1st January 1999";

(c)in sub-paragraph (c), for "1st October 1999" substitute "1st January 2000"; and

(d)in sub-paragraph (d), for "1st April 1998" substitute "1st January 1999".

Revocation of Regulations

9.-(1) Subject to paragraph (2), the Local Government Act 1988 (Competition) (England) Regulations 1997(28), are hereby revoked.

(2) Nothing in paragraph (1) affects the amendments made by regulations 3(2) and (3), 4(2) to (4), 5(2) and (3), 6(2) and (3) and 7(2) and (3), or the revocation made by regulation 8, of those Regulations.

(3) In the Local Government Act 1988 (Competition) (Financial Services) (England) Regulations 1995(29), in regulation 2 (interpretation), the definition of "the allowable period" is hereby revoked with effect from 1st January 1999.

Signed by authority of the Secretary of State for the Environment

Hilary Armstrong

Minister of State,

Department of the Environment, Transport and the Regions

17th November 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend regulations made under Part I (competition) of the Local Government Act 1988 ("the 1988 Act") in respect of the defined activities of construction and property services, financial services, housing management, information technology services, legal services and personnel management services, carried out by the majority of defined authorities in England.

In the case of all services, a credit in respect of voluntary competitive tendering is allowed by means of a new definition for the purposes of the relevant formula (the definition of "D" except in the case of housing management, where the relevant element in the formula is "B"). For work awarded after 12th December 1997 (the date on which these Regulations come into force), the credit is of an amount equal to 125% of the cost of the work.

In the case of all services, the cost of specified work for the purposes of the relevant formula is re-defined to provide for such work and its overheads to be treated as forming part of the cost of one activity only.

In the case of all services except housing management, a percentage credit is allowed for work carried out by a defined authority which is funded from a school's delegated budget (the definition of "G" in the relevant formula).

In regulation 3, other changes are made to the regulations relating to construction and property services which-

(a)reduce from 65% to 55% the amount of work that is subject to competition;

(b)raise the de minimis threshold from £300,000 to £450,000;

(c)restore the credit for work in progress for authorities which have been subject to, or created by, local government reorganisations that took effect on 1st April 1996 and 1st April 1997 or are due to take effect on 1st April 1998. The credit will run for a period of two years beginning with the date on which the authority first became subject to section 6 (functional work: restrictions) of the 1988 Act; and

(d)change some of the dates from which section 6 of the 1988 Act is to apply ("the implementation date"). Current implementation dates of 1st April 1998 and 1st April 1999 are put back to 1st October 1998 and 1st October 1999 respectively.

In regulation 4 other changes are made to the regulations relating to financial services which-

(a)require all authorities to expose 40% of financial services work to competition; and

(b)change some of the implementation dates. Current implementation dates of 1st October 1998 and 1st October 1999 are put back to 1st April 1999 and 1st January 2000 respectively.

In regulation 6 a change is made to the regulations relating to information technology which puts back, for authorities which are not subject to reorganisation and for those which were reorganised with effect from 1st April 1996, current implementation dates of 1st April 1999 and 1st October 1999, respectively, to 1st April 2000.

In regulation 7 a change is made to the regulations relating to legal services which puts back current implementation dates of 1st April 1998 and 1st April 1999 to 1st October 1998 and 1st October 1999 respectively.

In regulation 8 changes are made to the regulations relating to personnel services which-

(a)allow a 60% credit ("J") for employee training work funded by grants for education support and training paid to a school's governing body under a delegated budget scheme or by a matching contribution paid to the governing body by the authority;

(b)put back current implementation dates of 1st April 1998, 1st October 1998 and 1st October 1999 to 1st January 1999, 1st January 1999 and 1st January 2000 respectively.

Regulation 9(1) revokes the Local Government Act 1988 (Competition) (England) Regulations 1997. The revocation does not affect amendments (which took effect on 21st February 1997) made by those Regulations to regulations under Part I of the 1988 Act relating to construction and property services, financial services, information technology services, legal services, personnel management services and services relating to the supervision of parking, management of vehicles and security work, nor does it affect the revocation of paragraphs (2) and (3) of regulation 3 of the Local Government Act 1988 (Defined Activities) (Competition) (Supervision of Parking, Management of Vehicles and Security Work) (England) Regulations 1994 (S.I. 1994/3165).

Regulation 9(3) revokes the definition of "the allowable period" in regulation 2 of the Local Government Act 1988 (Competition) (Financial Services) (England) Regulations 1995 with effect from 1st January 1999. (That provision would have been revoked with effect from 21st August 1998 had the revoking provision (regulation 4(1)(a) of the Local Government Act 1988 (Competition) (England) Regulations 1997) not itself been revoked (by regulation 9(1)), on the coming into force of these Regulations.)

(1)

1988 c. 9. Section 6 is amended by paragraph 12 of Schedule 1 to the Local Government Act 1992 (c. 19).

(2)

S.I. 1994/3166, amended by S.I. 1995/2546 and 1997/175.

(3)

S.I. 1995/2916, amended by S.I. 1997/175.

(4)

S.I. 1994/2297, amended by S.I. 1997/176.

(5)

S.I. 1995/2813, amended by S.I. 1997/175.

(6)

S.I. 1994/3164, amended by S.I. 1995/2546 and 1997/175.

(7)

S.I. 1995/2101, amended by S.I. 1997/175.

(8)

The definition of "the cost" was substituted by S.I. 1997/175, regulation 3(1)(b).

(10)

The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671. Paragraph 12 of Schedule 1 to that Act was added by S.I. 1994/2888.

(12)

Regulation 3 was amended by S.I. 1997/175.

(13)

The definition of "the cost" was substituted by S.I. 1997/175, regulation 4(1)(b).

(15)

The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671.

(17)

Regulation 3(1)(d) was amended by S.I. 1997/175, regulation 4(4).

(18)

The definition of "the cost" was substituted by S.I. 1997/175, regulation 5(1)(a).

(20)

The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671.

(21)

The definition of "the cost" was substituted by S.I. 1997/175, regulation 6(1)(a).

(23)

The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671.

(24)

The definition of "the cost" was substituted by S.I. 1997/175, regulation 7(1)(a).

(26)

The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671. Paragraph 15 of Schedule 1 to that Act was added by S.I. 1995/1915.

(28)

S.I. 1997/175.

(29)

S.I. 1995/2916. A relevant amendment is made (prospectively) by regulation 4(1)(a) of S.I. 1997/175.


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