Statutory Instrument 1997 No. 175

The Local Government Act 1988 (Competition) (England) Regulations 1997

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STATUTORY INSTRUMENTS

1997 No. 175
LOCAL GOVERNMENT, ENGLAND AND WALES
The Local Government Act 1988 (Competition) (England) Regulations 1997

	Made	28th January 1997
	Laid before Parliament	31st January 1997
	Coming into force	21st February 1997

The Secretary of State 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) Regulations 1997 and shall come into force on 21st February 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[

Amendments to the construction regulations
3 . - (1) With effect from 23rd February 1998, in regulation 2 of the construction regulations -

(a) the definition of "allowable period" is revoked;

(b) the following is substituted for the definition of "the cost" -

" "the cost" means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of -

(a) another defined activity; or

(b) work to which Part III of the Local Government, Planning and Land Act 1980[

(T - (A + B)) - (C + D + E + F + G + H) where

T = an amount equal to the cost to a defined authority of the specified work;

A = an amount equal to the cost of specified work which is being carried out by a person other than a defined authority in connection with work falling within any other defined activity or in connection with work to which Part III of the Local Government, Planning and Land Act 1980 applies where that work is being carried out by another person on behalf of a defined authority;

B = an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

C = an amount equal to 35% of (T-(A+ B)) or Ł300,000, whichever is greater;

D = for the period ending on 31st March 1999 or five years after work was awarded, whichever is shorter, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering;

E = an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

F = an amount equal to the cost of any specified work being carried out by a person other than a defined authority following a competitive tendering process where -

provided that -

(2) In regulation 3(a) of the construction regulations the word "substantial" is omitted.

(3) The following is inserted after regulation 3(c) of the construction regulations -

Amendments to the financial services regulations
4 . - (1) With effect from 21st August 1998, in regulation 2 of the financial services regulations -

(a) the definition of "the allowable period" is revoked;

(b) the following is substituted for the definition of "the cost" -

" "the cost" means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of -

(a) another defined activity; or

(b) work to which Part III of the Local Government, Planning and Land Act 1980[

(T - (A + B)) - (C + D + E + F + G + H) where

T = an amount equal to the total of the cost to a defined authority of the specified work and of determination work;

B = an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

(b) for all other defined authorities, an amount equal to 50% of (T-(A+ B)) or Ł300,000, whichever is greater;

F = an amount equal to the cost of any specified work being carried out by a person other than a defined authority following a competitive tendering process where -

(a) no defined authority submitted a bid to carry out that work; and

(b) that work had previously been carried out by the defined authority conducting that process or by its predecessor;

G = an amount equal to the cost of specified work carried out by a defined authority which is funded from a school's delegated budget provided under a scheme prepared in accordance with section 103 of the Education Act 1996[12]; and

H = until 31st July 1999, an amount equal to the cost of specified work which is being carried out by a defined authority in connection with functional work falling within the defined activity mentioned in section 2(2)(h) of the Act (housing management)[13] where that functional work is not subject to section 6 of the Act

provided that -

(2) In regulation 3(1)(a) of the financial services regulations the word "substantial" is omitted.

(3) The following is inserted after regulation 3(1)(c) of the financial services regulations -

(4) In regulation 3(1)(d) of the financial services regulations "1st October 1998" is substituted for "1st April 1998".

Amendments to the information technology regulations
5 . - (1) With effect from 21st August 1998, in regulation 2 of the information technology regulations -

(a) The following is substituted for the definition of "the cost" -

" "the cost" means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of -

(a) another defined activity; or

(b) work to which Part III of the Local Government, Planning and Land Act 1980[

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

(T - (A + B)) - (C + D + E + F + G + H + I) where

T = an amount equal to the cost to a defined authority of the specified work;

B = an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

C = an amount equal to 60% of (T-(A+ B)) or Ł300,000, whichever is greater;

D = for the period ending on 31st March 1999 or five years after work was awarded, whichever is the shorter, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering;

E = an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

(2) In regulation 3(1)(a) of the information technology regulations the word "substantial" is omitted.

(3) The following is inserted after regulation 3(1)(c) of the information technology regulations -

Amendments to the legal services regulations
6 . - (1) With effect from 23rd February 1998, in regulation 2 of the legal services regulations -

(a) the following is substituted for the definition of "the cost"

" "the cost" means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of -

(a) another defined activity; or

(b) work to which Part III of the Local Government, Planning and Land Act 1980[

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

(T - (A + B)) - (C + D + E + F + G + H) where

T = an amount equal to the cost to a defined authority of the specified work;

B = an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

C = an amount equal to 55% of (T-(A+ B)) or Ł300,000, whichever is greater;

E = an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

(2) In regulation 3(a) of the legal services regulations the word "substantial" is omitted.

(3) The following is inserted after regulation 3(c) of the legal services regulations -

Amendments to the personnel services regulations
7 . - (1) With effect from 21st May 1998, in regulation 2 of the personnel services regulations -

(a) the following is substituted for the definition of "the cost" -

" "the cost" means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of -

(a) another defined activity; or

(b) work to which Part III of the Local Government, Planning and Land Act 1980[

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

(T - (A + B)) - (C + D + E + F + G + H + I) where

T = an amount equal to the cost to a defined authority of the specified work;

B = an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

C = an amount equal to 60% of (T-(A+ B)) or Ł300,000, whichever is greater;

E = an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

(2) In regulation 3(1)(a) of the personnel services regulations the word "substantial" is omitted.

(3) The following is inserted after regulation 3(1)(c) of the personnel services regulations -

Amendment to the parking regulations
8 . Paragraphs (2) and (3) of regulation 2 of the parking regulations are hereby revoked.

Signed by authority of the Secretary of State for the Environment

Paul Beresford
Parliamentary Under Secretary of State, Department of the Environment

28th January 1997

EXPLANATORY NOTE

(This note is not part of the Regulations)

These regulations amend the previous regulations made under Part I of the Local Government Act 1988 in respect of the defined activities of construction and property services, financial services, information technology services, legal services, personnel services, and the management of vehicles.

In the case of all services except the management of vehicles new definitions are substituted for the purpose of calculating the specified proportion of specified work and new provisions are inserted providing for the application of section 6 of the Act from specified dates to local authorities which are subject to structural change taking effect from 1st April 1998.

In the case of the management of vehicles, a minor revocation is made to the original set of regulations which has the effect of removing an allowance previously given to defined authorities for work carried out in connection with certain other work which is also subject to the competitive tendering legislation.

Notes:

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

[2] S.I. 1994/3166, amended by S.I. 1995/2546. back

[3] S.I. 1995/2916. back

[4] S.I. 1995/2813. back

[5] S.I. 1994/3164, amended by S.I. 1995/2546. back

[6] S.I. 1995/2101. back

[7] S.I. 1994/3165, amended by S.I. 1995/1326, 2546 and 3108. back

[8] 1980 c.65. back

[9] 1996 c.56. back

[10] Section 2(2)(h) was inserted by S.I. 1994/1671. back

[11] 1980 c.65. back

[12] 1996 c.56. back

[13] Section 2(2)(h) was inserted by S.I. 1994/1671. back

[14] 1980 c.65. back

[15] 1996 c.56. back

[16] Section 2(2)(h) was inserted by S.I. 1994/1671. back

[17] 1980 c.65. back

[18] 1996 c.56. back

[19] Section 2 (2) (h) was inserted by S.I. 1994/1671. back

[20] 1980 c.65. back

[21] 1980 c.65. back

[22] 1996 c.56. back

[23] Section 2(2)(h) was inserted by S.I. 1994/1671. back

[24] 1996 c.56. back

ISBN 0 11 063687 2

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