Localism Act 2011

• (1) Schedule 3 to the Housing and Regeneration Act 2008 (powers, in relation to land of the Homes and Communities Agency, to extinguish public rights of way, and in relation to burial grounds and consecrated land) applies in relation to an MDC and its land as it applies in relation to the Homes and Communities Agency and its land.

• (2) In that Schedule as applied by subsection (1), references to the Homes and Communities Agency are to be read as references to the MDC concerned.

• (3) The power of the Secretary of State under Part 2 of that Schedule (extinguishment of public rights of way) as applied by subsection (1) is exercisable only with the consent of the Mayor.

• (4) Schedule 4 to that Act (powers in relation to, and for, statutory undertakers) applies in relation to an MDC and its land as it applies in relation to the Homes and Communities Agency and its land.

• (5) In that Schedule as applied by subsection (4)—

• (a) references to the Homes and Communities Agency are to be read as references to the MDC concerned, and

• (b) references to Part 1 of that Act are to be read as references to this Chapter.

Restrictions on disposal of land

209

• (1) An MDC may not dispose of land for less than the best consideration which can reasonably be obtained unless the Mayor consents.

• (2) Subsection (1) does not apply to a disposal by way of a short tenancy if the disposal consists of—

• (a) the grant of a term of not more than 7 years, or

• (b) the assignment of a term which, at the date of assignment, has not more than 7 years to run.

• (3) An MDC may not dispose of land which has been compulsorily acquired by it under this Chapter unless the Mayor consents.

• (4) Subject to subsections (1) to (3), an MDC may dispose of land held by it in any way it considers appropriate.

Power to enter and survey land

210

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other functions

Adoption of private streets

211

• (1) Where any street works have been executed on any land in a Mayoral development area which was then or has since become a private street (or part of a private street), the MDC for the area may serve a notice (an “adoption notice”) on the street works authority requiring the authority to declare the private street (or part) to be a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense.

• (2) Subsections (2) to (5) of section 157 of the Local Government, Planning and Land Act 1980 (appeal against corresponding notice served by an urban development corporation, and deemed adoption where no appeal or compliance) apply in relation to an adoption notice under subsection (1) of this section as they apply in relation to an adoption notice under subsection (1) of that section.

• (3) Section 157(6) of that Act (interpretation) applies for the purposes of this section.

Businesses, subsidiaries and other companies

212

• (1) An MDC may carry on any business.

• (1A) This section does not authorise an MDC to carry on a business for—

• (a) the supply of water, electricity or gas, or

• (b) the provision of sewerage services or heat networks.

• (2) An MDC may with the consent of the Mayor—

• (a) form, or

• (b) acquire interests in,

bodies corporate.

• (3) An MDC must ensure that no subsidiary of the MDC engages in an activity which the MDC would not be required or permitted to carry on.

• (4) An MDC must ensure that no subsidiary of the MDC—

• (a) borrows from a person other than the MDC, or

• (b) raises money by the issue of shares or stock to a person other than the MDC,

without the consent of the Mayor.

• (5) In subsection (1) “business” includes undertaking.

• (6) In this section “subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

• (7) In this section “heat networks” has the meaning given by section 216 of the Energy Act 2023.

Financial assistance

213

• (1) An MDC may, with the consent of the Mayor, give financial assistance to any person.

• (2) Financial assistance under this section may be given in any form.

• (3) Financial assistance under this section may, in particular, be given by way of—

• (a) grants,

• (b) loans,

• (c) guarantee or indemnity,

• (d) investment, or

• (e) incurring expenditure for the benefit of the person assisted.

• (4) Financial assistance under this section may be given on such terms and conditions as the MDC giving it considers appropriate (including provision for repayment, with or without interest).

Powers in relation to discretionary relief from non-domestic rates

214

• (1) Subsection (2) applies if the Mayor designates a Mayoral development area.

• (2) The Mayor may decide that the MDC for the area is to have—

• (a) in relation to qualifying hereditaments in the area, the function of making decisions (under section 47(3) and (6) of the 1988 Act) to the effect that section 47 of the 1988 Act applies as regards a hereditament, and

• (b) in relation to a hereditament as regards which that section applies as a result of a decision made by the MDC, the function of making the determinations mentioned in section 47(1)(a) of the Local Government Finance Act 1988 (determination of amount of discretionary relief).

• (3) The Mayor may at any time decide that a decision under subsection (2) should be revoked.

• (4) The Mayor may make a decision under subsection (2) or (3) only if—

• (a) the Mayor has consulted the persons specified by section 197(4) in relation to the area,

• (b) the Mayor has had regard to any comments made in response by the consultees, and

• (c) in the event that those comments include comments made by the London Assembly or an affected local authority that are comments that the Mayor does not accept, the Mayor has published a statement giving the reasons for the non-acceptance.

In paragraph (c) “affected local authority” means a person specified by section 197(4)(d), (e), (f) or (g) in relation to the area.

• (5) If the Mayor makes a decision under subsection (2) or (3), the Mayor must—

• (a) publicise the decision, and

• (b) notify the Secretary of State of the decision.

• (6) If the Secretary of State receives notification under subsection (5) of a decision, the Secretary of State must give effect to the decision—

• (a) when making the order under section 198(2) that establishes an MDC for the area, or

• (b) by exercising the power to amend that order (see section 14 of the Interpretation Act 1978).

• (7) Exercise by an MDC of functions mentioned in subsection (2) requires the Mayor's consent.

• (8) If an MDC has the functions mentioned in subsection (2) it has them in place of the authority that would otherwise have them.

• (9) For the purposes of subsection (2), a hereditament is a “qualifying hereditament” on a day if neither—

• (a) section 43(6) of the 1988 Act (charities and community amateur sports clubs), nor

• (b) section 47(5B) of the 1988 Act (certain organisations not established or conducted for profit),

applies on that day.

Dissolution

Reviews

215

It is the duty of the Mayor to review, from time to time, the continuing in existence of any existing MDCs.

Transfers of property, rights and liabilities

216

• (1) The Mayor may at any time make a scheme (a “transfer scheme”) transferring to a permitted recipient, upon such terms as the Mayor considers appropriate, any property, rights or liabilities which are for the time being vested in an MDC.

• (2) A transfer scheme may provide for a transfer to a person within paragraph (d), (e) or (f) of the definition of “permitted recipient” in subsection (4) only if the person consents.

• (3) The Mayor must publish a transfer scheme as soon after it is made as is reasonably practicable.

• (4) In this section—

• “company” means—a company within the meaning given by section 1(1) of the Companies Act 2006, or a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969;

• “functional body” has the meaning given by section 424(1) of the Greater London Authority Act 1999;

• “permitted recipient” means—the Greater London Authority,a functional body other than the MDC concerned,a company that is a subsidiary of the Greater London Authority,a London borough council,the Common Council of the City of London, orany other person;

• “subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

Dissolution: final steps

217

• (1) Subsection (2) applies if no property, no rights and no liabilities are vested in an MDC (“the MDC”).

• (2) The Mayor may request the Secretary of State to revoke the order under section 198(2) which established the MDC.

• (3) If the Secretary of State receives a request under subsection (2), the Secretary of State must make an order giving effect to the request.

• (4) Where the Secretary of State makes an order under subsection (3)—

• (a) the MDC is dissolved on the coming into force of the order, and

• (b) the Mayor must revoke the designation of the Mayoral development area for which the MDC was established.

• (5) Where the Mayor makes a revocation under subsection (4)(b), the Mayor must—

• (a) publicise the revocation, and

• (b) notify the Secretary of State of the revocation.

General

Transfer schemes: general provisions

218

• (1) In this section—

• “transfer scheme” means a scheme under section 197(2D), 200(1) or (4) or 216(1);

• “transferee”, in relation to a transfer scheme, means the person to whom property, rights or liabilities are transferred by the scheme;

• “transferor”, in relation to a transfer scheme, means the person from whom property, rights or liabilities are transferred by the scheme.

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

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

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

• (3) A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular—

• (a) make provision for certificates issued by the Secretary of State to be conclusive evidence that property has been transferred;

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

• (c) make provision about the continuing effect of things done (or having effect as if done) by or in relation to the transferor in respect of anything transferred;

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

• (e) make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee;

• (f) make provision for the shared ownership or use of property.

• (4) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) apply to a transfer under a transfer scheme where the transfer relates to rights or liabilities under a contract of employment (whether or not it is a relevant transfer for the purposes of those regulations).

• (5) A transfer scheme may provide—

• (a) for modification by agreement;

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

• (6) In this section “rights” and “liabilities” include rights, or (as the case may be) liabilities, in relation to a contract of employment.

Guidance by the Mayor

219

• (1) The Mayor may give guidance to an MDC as to the exercise of any of the MDC's functions.

• (2) Before giving guidance under this section, the Mayor must consult such persons as the Mayor considers appropriate.

• (3) The Mayor must publish any guidance given under this section as soon as reasonably practicable after giving it.

• (4) The Mayor may revoke guidance given under this section.

• (5) The Mayor must—

• (a) consult, before revoking guidance given under this section, such persons as the Mayor considers appropriate, and

• (b) publish the fact that guidance given under this section has been revoked as soon as reasonably practicable after the revocation of the guidance.

• (6) An MDC must, in exercising its functions, have regard to any guidance given to it under this section that is for the time being in force.

• (7) References in this section to giving guidance include references to giving guidance by varying existing guidance.

Directions by the Mayor

220

• (1) The Mayor may give an MDC general or specific directions as to the exercise of any of the MDC's functions.

• (2) The Mayor must publish any directions given under this Chapter by the Mayor as soon as reasonably practicable after giving them.

• (3) The Mayor—

• (a) may revoke any directions given under this Chapter by the Mayor, and

• (b) must publish the fact that directions given under this Chapter have been revoked as soon as reasonably practicable after the revocation.

• (4) An MDC must comply with any directions given by the Mayor under this Chapter that are in force in relation to the MDC.

• (5) Subsections (2) and (3)(b) do not apply to directions given under paragraph 8(1) of Schedule 21.

• (6) References in this Chapter to the Mayor giving directions include references to the Mayor giving directions by varying existing directions.

Consents

221

• (1) A relevant consent may be given—

• (a) unconditionally or subject to conditions, and

• (b) generally or specifically.

• (2) The Mayor may vary or revoke a relevant consent except in the case of anything already done, or agreed to be done, on the authority of it.

• (3) A variation or revocation under subsection (2) does not have effect until the Mayor has served notice of it on the person to whom the relevant consent was given.

• (4) In this section “relevant consent” means a consent of the Mayor required under this Chapter.

Consequential and other amendments

222

Schedule 22 (Mayoral development corporations: consequential and other amendments) has effect.

CHAPTER 3 — Greater London Authority governance

Delegation of functions by Ministers to the Mayor

223

• (1) The Greater London Authority Act 1999 is amended as follows.

• (2) After section 39 insert—

(39A) (1) A Minister of the Crown may, to such extent and subject to such conditions as that Minister thinks fit, delegate to the Mayor any of that Minister's eligible functions. (2) A function is eligible for the purposes of subsection (1) above if— (a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and (b) the Secretary of State considers that it can appropriately be exercised by the Mayor. (3) No delegation under subsection (1) above, and no variation of a delegation under subsection (1) above, may be made without the agreement of the Mayor. (4) Before making or varying a delegation under subsection (1) above, a Minister of the Crown must consult— (a) each London borough council, (b) the Common Council, and (c) the Assembly. (5) A delegation under subsection (1) above may be revoked at any time by any Minister of the Crown. (6) Section 38 above does not apply in relation to functions delegated under subsection (1) above.

• (3) In section 409 (schemes for the transfer of property, rights and liabilities)—

• (a) after subsection (1) (Ministers may make schemes transferring property etc of the Crown) insert—

(1A) A Minister of the Crown may make a scheme for the transfer from the Authority to the Crown of such property, rights or liabilities as the Minister of the Crown may consider appropriate in consequence of the revocation of a delegation under section 39A(1) above of a function of any Minister of the Crown.

, and

• (b) in subsections (6) and (7) (provision that may be included in scheme under subsection (1) or (2)) after “subsection (1)” insert “ , (1A) ”.

Authority may be required to carry on commercial activities through a taxable body

224

• (1) The Greater London Authority Act 1999 is amended as follows.

• (2) After section 34 insert—

(34A) (1) The Authority may carry on specified activities for a commercial purpose only if it does so— (a) through a company that is a subsidiary of the Authority, or (b) in pursuance of an authorisation under section 38(1), through— (i) a body that is specified in section 38(2) and is within the charge to corporation tax, or (ii) a company that is a subsidiary of a body specified in section 38(2). (2) Subsection (3) applies if— (a) the Authority carries on a specified activity for a commercial purpose otherwise than as permitted by subsection (1), and (b) the activity is actually carried on by a body (whether the Authority or another) that, disregarding this section, is in respect of the carrying-on of the activity exempt from corporation tax and income tax. (3) The body mentioned in subsection (2)(b) is to be treated in respect of the carrying-on of the activity as not being a local authority for the purposes of— (a) section 984 of the Corporation Tax Act 2010 (exemption of local authorities from corporation tax), (b) section 838 of the Income Tax Act 2007 (exemption of local authorities from income tax), and (c) section 271 of the Taxation of Chargeable Gains Act 1992 (exemption of local authorities from capital gains tax). (4) In this section— - “company” means— 1. a company within the meaning given by section 1(1) of the Companies Act 2006, or 2. a society registered or deemed to be registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969, and - “specified activity” means an activity specified in an order made by the Secretary of State with the consent of the Treasury.

• (3) In section 420(8) (orders subject to annulment) after the entry for section 25 insert— “ section 34A; ”.

The London Environment Strategy

225

• (1) Before section 352 of the Greater London Authority Act 1999 insert—

(351A) (1) The Mayor shall prepare and publish a document to be known as the “London Environment Strategy” (“the Strategy”). (2) The Strategy must contain a general assessment by the Mayor of the environment in Greater London, so far as relevant to the functions of the Authority or of the Mayor. (3) The Strategy must contain provisions dealing with the Mayor's policies and proposals in relation to each of the following matters in relation to Greater London— (a) biodiversity; (b) municipal waste management; (c) climate change mitigation and energy; (d) adaptation to climate change; (e) air quality; and (f) ambient noise. (4) The provisions of the Strategy dealing with a matter specified in a paragraph of subsection (2) must also contain anything required to be included in them by any other provision of this Act. (5) The Strategy may also include provisions dealing with the Mayor's policies and proposals in relation to any other matter relating to the environment in Greater London. (6) In preparing or revising the provisions of the Strategy dealing with a matter mentioned in subsection (3), the Mayor's duty under section 42(1)(e) applies as if it were a duty to consult any person or body whom the Mayor considers it appropriate to consult in relation to those provisions (and section 42(2) applies accordingly). (7) Where the Strategy is revised, the Mayor must publish it as revised. (8) In this Act references to the London Environment Strategy include, unless the context otherwise requires, a reference to the Strategy as revised. (351B) (1) The Secretary of State may give to the Mayor guidance— (a) about the content of the London Environment Strategy; (b) in relation to the preparation or revision of that Strategy. (2) The guidance that may be given under subsection (1)(a) includes guidance as to matters which the Secretary of State considers the Mayor should, or should not, consider dealing with by formulating policies and proposals under section 351A(5). (3) The guidance that may be given under subsection (1)(b) includes— (a) guidance specifying or describing the bodies or persons whom the Secretary of State considers the Mayor should consult in preparing or revising the London Environment Strategy or, as the case may be, the provisions dealing with a matter specified in the guidance; (b) guidance as to the evidence of environmental change or its consequences, or the predictions of environmental change or its consequences, to which the Secretary of State considers the Mayor should have regard in preparing or revising that Strategy or, as the case may be, the provisions dealing with a matter specified in the guidance. (4) In preparing or revising the London Environment Strategy the Mayor must have regard to any relevant guidance given under this section. (351C) (1) Where the Secretary of State considers that any of the conditions specified in subsection (2) is satisfied in relation to any provisions of the London Environment Strategy, the Secretary of State may give the Mayor a direction as to the content of those provisions. (2) The conditions are— (a) that the provisions are inconsistent with any policies announced by Her Majesty's government with respect to the matters to which they relate and the inconsistency would have a detrimental effect on achieving any of the objectives of those policies; (b) that the provisions or their implementation are likely to be detrimental to any area outside Greater London; (c) that the provisions are inconsistent with any EU obligation of the United Kingdom. (3) A direction under this section may require the Mayor to make specified revisions of the London Environmental Strategy. (4) The power of the Secretary of State to give a direction under this section may only be exercised after consultation with the Mayor. (5) Where the Secretary of State gives a direction under this section, the Mayor must comply with the direction.

• (2) Schedule 23 (which contains minor and consequential amendments to the Greater London Authority Act 1999 relating to the London Environment Strategy) has effect.

Abolition of Mayor's duty to prepare state of the environment reports

226

Section 351 of the Greater London Authority Act 1999 (which provides for four-yearly reports by the Mayor on the environment in Greater London) ceases to have effect.

Mayoral strategies: general duties

227

• (1) Section 41 of the Greater London Authority Act 1999 (general duties of the Mayor in relation to his strategies) is amended as follows.

• (2) In subsection (5)(a), for “and with such international obligations” substitute “ , with the EU obligations of the United Kingdom and with such other international obligations of the United Kingdom ”.

• (3) After subsection (9) insert—

(9A) In exercising any function the Mayor must have regard to any strategy mentioned in subsection (1) which is relevant to the exercise of that function.

• (4) Subsection (10) ceases to have effect.

Simplification of the consultation process for the Mayor's strategies

228

• (1) Section 42A of the Greater London Authority Act 1999 (which requires the Mayor to follow a two stage process in preparing or revising a strategy to which section 42 applies) ceases to have effect.

• (2) In section 335 of that Act (public participation in preparation of the spatial development strategy)—

• (a) subsections (1) to (1B) cease to have effect,

• (b) in subsection (2), for the words from the beginning to “finally” substitute “ Before ”, and

• (c) in subsection (3), after paragraph (a) insert—

(aa) the Assembly and the functional bodies;

.

London Assembly's power to reject draft strategies

229

Before section 43 of the Greater London Authority Act 1999 (publicity and availability of strategies) insert—

(42B) (1) This section applies where the Mayor has prepared, and is ready to publish, a draft of any of the strategies to which section 41 applies (including a revised version of the strategy). (2) But this section does not apply to a revised version of a strategy containing only revisions which— (a) are specified in a direction as to the contents of the strategy which is given to the Mayor under this Act (or which the Mayor considers are necessary in consequence of any revisions so specified); or (b) are not so specified but the Mayor considers to be necessary to comply with such a direction. (3) Before publishing the strategy (or, in the case of the housing strategy, before submitting the draft to the Secretary of State) the Mayor must lay a copy of the draft before the Assembly in accordance with the standing orders of the Authority. (4) The Mayor must not publish the strategy (or, in the case of the housing strategy, submit the draft to the Secretary of State) if, within the period of 21 days beginning with the day on which the copy is laid before the Assembly, the Assembly resolves to reject the draft. (5) A motion for the Assembly to reject a draft strategy— (a) must be considered at a meeting of the Assembly throughout which members of the public are entitled to be present; and (b) is not carried unless it is agreed to by at least two thirds of the Assembly members voting.

Sharing of administrative etc services by London authorities

230

• (1) Section 401A of the Greater London Authority Act 1999 (sharing of administrative etc services by the Greater London Authority and functional bodies) is amended as follows.

• (2) In subsection (1) (definition of “constituent body”)—

• (a) for “constituent body” substitute “ relevant London authority ”, and

• (b) at the end of paragraph (b) insert

, (c) the London Pensions Fund Authority, (d) the London Transport Users' Committee, (e) the Commissioner of Police of the Metropolis, and (f) such person or body falling within subsection (1A) as the Secretary of State may specify by order.

• (3) After that subsection insert—

(1A) A person or body falls within this subsection if the person or body exercises functions of a public nature in relation only to— (a) Greater London, (b) a part of Greater London, or (c) a part of England including Greater London or a part of Greater London.

• (4) In subsection (2) (power of constituent bodies to enter into arrangements for provision of administrative etc services) for “constituent bodies” substitute “ relevant London authorities ”.

• (5) In subsection (3) (arrangements may include discharge of functions by one constituent body on behalf of another)—

• (a) for “constituent bodies” substitute “ relevant London authorities ”, and

• (b) for “constituent body” substitute “ relevant London authority ”.

• (6) In subsection (4) (power of constituent bodies to form joint committees) for “constituent bodies” substitute “ relevant London authorities ”.

• (7) In subsection (5) (joint committee to be treated as separate from constituent bodies for purposes of section)—

• (a) for “constituent body” substitute “ relevant London authority ”, and

• (b) for “constituent bodies” substitute “ relevant London authorities ”.

• (8) After subsection (6) insert—

(6A) The Secretary of State must consult a person or body before making an order under subsection (1)(f) specifying that person or body.

• (9) In section 420(8) of that Act (orders subject to annulment) after the entry for section 395 insert “ section 401A(1)(f); ”.

Transport for London: access to meetings and documents etc

231

• (1) Part 5A of the Local Government Act 1972 (access to meetings and documents) is amended as follows.

• (2) Amend section 100J (application of Part 5A to bodies other than principal councils) in accordance with subsections (3) to (6).

• (3) In subsection (1) (list of authorities treated as principal councils for the purposes of the Part) after paragraph (bd) insert—

(be) Transport for London;

.

• (4) In subsection (3) (reference in section 100A(6)(a) to council's offices includes other premises at which meeting to be held) after “(bd),” insert “ (be), ”.

• (5) After subsection (3) insert—

(3YA) In its application by virtue of subsection (1)(be) above in relation to Transport for London, section 100E(3) has effect as if for paragraph (bb) there were substituted— (bb) a committee of Transport for London (with “committee”, in relation to Transport for London, here having the same meaning as in Schedule 10 to the Greater London Authority Act 1999); or

.

• (6) After subsection (4A) insert—

(4AA) In its application by virtue of subsection (1)(be) above in relation to Transport for London, section 100G shall have effect— (a) with the substitution for subsection (1)(a) and (b) of— (a) the name of every member of the council for the time being; and (b) the name of every member of each committee or sub-committee of the council for the time being. (b) with the insertion in subsection (2)(b) after “exercisable” of “, but not an officer by whom such a power is exercisable at least partly as a result of sub-delegation by any officer”.

• (7) In section 100K(1) (interpretation of Part 5A) in the definition of “committee or sub-committee of a principal council” for “section 100J(3ZA)(b)” substitute “ section 100J(3YA), (3ZA)(b) ”.

PART 9 — Compensation for compulsory acquisition

Taking account of planning permission when assessing compensation

232

• (1) The Land Compensation Act 1961 is amended as follows.

• (2) For sections 14 to 16 (assumptions as to planning permission) substitute—

(14) (1) This section is about assessing the value of land in accordance with rule (2) in section 5 for the purpose of assessing compensation in respect of a compulsory acquisition of an interest in land. (2) In consequence of that rule, account may be taken— (a) of planning permission, whether for development on the relevant land or other land, if it is in force at the relevant valuation date, and (b) of the prospect, on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, of planning permission being granted on or after that date for development, on the relevant land or other land, other than— (i) development for which planning permission is in force at the relevant valuation date, and (ii) appropriate alternative development. (3) In addition, it may be assumed— (a) that planning permission is in force at the relevant valuation date for any development that is appropriate alternative development to which subsection (4)(b)(i) applies, and (b) that, in the case of any development that is appropriate alternative development to which subsection (4)(b)(ii) applies and subsection (4)(b)(i) does not apply, it is certain at the relevant valuation date that planning permission for that development will be granted at the later time at which at that date it could reasonably have been expected to be granted. (4) For the purposes of this section, development is “appropriate alternative development” if— (a) it is development, on the relevant land alone or on the relevant land together with other land, other than development for which planning permission is in force at the relevant valuation date, and (b) on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, planning permission for the development could at that date reasonably have been expected to be granted on an application decided— (i) on that date, or (ii) at a time after that date. (5) The assumptions referred to in subsections (2)(b) and (4)(b) are— (a) that the scheme of development underlying the acquisition had been cancelled on the launch date, (b) that no action has been taken (including acquisition of any land, and any development or works) by the acquiring authority wholly or mainly for the purposes of the scheme, (c) that there is no prospect of the same scheme, or any other project to meet the same or substantially the same need, being carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers, and (d) if the scheme was for use of the relevant land for or in connection with the construction of a highway (“the scheme highway”), that no highway will be constructed to meet the same or substantially the same need as the scheme highway would have been constructed to meet. (6) In subsection (5)(a) “the launch date” means whichever of the following dates applies— (a) if the acquisition is authorised by a compulsory purchase order, the date of first publication of the notice required under section 11 of the Acquisition of Land Act 1981 or (as the case may be) paragraph 2 of Schedule 1 to that Act, (b) if the acquisition is authorised by any other order— (i) the date of first publication, or (ii) the date of service, of the first notice that, in connection with the acquisition, is published or served in accordance with any provision of or made under any Act, or (c) if the acquisition is authorised by a special enactment other than an order, the date of first publication of the first notice that, in connection with the acquisition, is published in accordance with any Standing Order of either House of Parliament relating to private bills; and in paragraph (a) “compulsory purchase order” has the same meaning as in the Acquisition of Land Act 1981. (7) In subsection (5)(d) references to the construction of a highway include its alteration or improvement. (8) If there is a dispute as to what is to be taken to be the scheme mentioned in subsection (5) (“the underlying scheme”) then, for the purposes of this section, the underlying scheme is to be identified by the Upper Tribunal as a question of fact, subject as follows— (a) the underlying scheme is to be taken to be the scheme provided for by the Act, or other instrument, which authorises the compulsory acquisition unless it is shown (by either party) that the underlying scheme is a scheme larger than, but incorporating, the scheme provided for by that instrument, and (b) except by agreement or in special circumstances, the Upper Tribunal may permit the acquiring authority to advance evidence of such a larger scheme only if that larger scheme is one identified in the following read together— (i) the instrument which authorises the compulsory acquisition, and (ii) any documents published with it. (9) For the purposes of the references to planning permission in subsections (2)(a) and (b)(i) and (4)(a) and section 15(1)(b), it is immaterial whether any planning permission was granted— (a) unconditionally or subject to conditions, or (b) on an ordinary application, on an outline application or by virtue of a development order, or is planning permission that, in accordance with any direction or provision given or made by or under any enactment, is deemed to have been granted. (15) (1) In a case where— (a) the relevant interest is to be acquired for purposes which involve the carrying out of proposals of the acquiring authority for development of the relevant land or part of it, and (b) planning permission for that development is not in force at the relevant valuation date, it is to be assumed for the purposes of section 14(2)(a) and (b)(i) and (4)(a) that planning permission is in force at the relevant valuation date for the development of the relevant land or that part of it, as the case may be, in accordance with the proposals of the acquiring authority. (2) For the purposes of subsection (1)(b), no account is to be taken of any planning permission so granted as not to enure (while the permission remains in force) for the benefit of the land and of all persons for the time being interested in the land.

• (3) For sections 17 and 18 (certification of appropriate alternative development and appeals against certificates) substitute—

(17) (1) Where an interest in land is proposed to be acquired by an authority possessing compulsory purchase powers, either of the parties directly concerned may (subject to subsection (2)) apply to the local planning authority for a certificate containing whichever of the following statements is the applicable statement— (a) that in the local planning authority's opinion there is development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition; (b) that in the local planning authority's opinion there is no development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition. (2) If— (a) the acquiring authority have served a notice to treat in respect of the interest or an agreement has been made for the sale of the interest to that authority, and (b) a reference has been made to the Upper Tribunal to determine the amount of the compensation payable in respect of the interest, no application for a certificate under this section may be made after the making of that reference by either of the parties directly concerned except with the consent in writing of the other party directly concerned or the permission of the Upper Tribunal. (3) An application for a certificate under this section— (a) must contain whichever of the following statements is the applicable statement— (i) that in the applicant's opinion there is development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition concerned; (ii) that in the applicant's opinion there is no development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition concerned; (b) must, if it contains a statement under paragraph (a)(i), specify— (i) each description of development that in the applicant's opinion is, for the purposes of section 14, appropriate alternative development in relation to the acquisition, and (ii) the applicant's reasons for holding that opinion; and (c) must be accompanied by a statement specifying the date on which a copy of the application has been or will be served on the other party directly concerned. (4) Where an application is made to the local planning authority for a certificate under this section in respect of an interest in land, the local planning authority must not, without the agreement of the other party directly concerned, issue a certificate to the applicant before the end of 22 days beginning with the date specified in the statement under subsection (3)(c). (5) If a certificate under this section contains a statement under subsection (1)(a) it must also— (a) identify every description of development (whether specified in the application or not) that in the local planning authority's opinion is, for the purposes of section 14, appropriate alternative development in relation to the acquisition concerned, and (b) give a general indication— (i) of any conditions to which planning permission for the development could reasonably have been expected to be subject, (ii) of when the permission could reasonably have been expected to be granted if it is one that could reasonably have been expected to be granted only at a time after the relevant valuation date, and (iii) of any pre-condition for granting the permission (for example, entry into an obligation) that could reasonably have been expected to have to be met. (6) If a certificate under this section contains a statement under subsection (1)(a)— (a) then, for the purposes of section 14, development is appropriate alternative development in relation to the acquisition concerned if, and only if, it is of a description identified in accordance with subsection (5)(a) in the certificate, and (b) the matters indicated in accordance with subsection (5)(b) in the certificate are to be taken to apply in relation to the planning permission that under section 14(3) may be assumed to be in force for that development. (7) If a certificate under this section contains a statement under subsection (1)(b) then, for the purposes of section 14, there is no development that is appropriate alternative development in relation to the acquisition concerned. (8) References in subsections (5) to (7) to a certificate under this section include references to the certificate as varied and to any certificate issued in place of the certificate. (9) On issuing to one of the parties directly concerned a certificate under this section in respect of an interest in land, the local planning authority must serve a copy of the certificate on the other of those parties. (10) In assessing any compensation payable to any person in respect of any compulsory acquisition, there must be taken into account any expenses reasonably incurred by the person in connection with the issue of a certificate under this section (including expenses incurred in connection with an appeal under section 18 where any of the issues are determined in the person's favour). (11) For the purposes of this section and sections 18 to 20, the Broads Authority is the sole district planning authority for the Broads; and here “the Broads” has the same meaning as in the Norfolk and Suffolk Broads Act 1988. (18) (1) Where the local planning authority have issued a certificate under section 17 in respect of an interest in land— (a) the person for the time being entitled to that interest, or (b) any authority possessing compulsory purchase powers by whom that interest is proposed to be, or is, acquired, may appeal to the Upper Tribunal against that certificate. (2) On any appeal under this section against a certificate, the Upper Tribunal— (a) must consider the matters to which the certificate relates as if the application for a certificate under section 17 had been made to the Upper Tribunal in the first place, and (b) must— (i) confirm the certificate, or (ii) vary it, or (iii) cancel it and issue a different certificate in its place, as the Upper Tribunal may consider appropriate. (3) Where an application is made for a certificate under section 17, and at the expiry of the time prescribed by a development order for the issue of the certificate (or, if an extended period is at any time agreed upon in writing by the parties and the local planning authority, at the end of that period) no certificate has been issued by the local planning authority in accordance with that section, the preceding provisions of this section apply as if the local planning authority has issued such a certificate containing a statement under section 17(1)(b).

• (4) In section 20 (power to prescribe matters relevant to Part 3) omit—

• (a) in the opening words—

• (i) the words “and appeals under section eighteen of this Act”, and

• (ii) the word “respectively”,

• (b) paragraph (b) (manner of and time for giving notice of appeal), and

• (c) paragraph (d) (which refers to provisions of section 17 not re-enacted in the section 17 substituted by this Act).

• (5) Omit section 21 (proceedings for challenging validity of decision on appeal under section 18).

• (6) In section 22 (interpretation of Part 3)—

• (a) in subsection (1) (meaning of “the parties directly concerned”) for “authority by whom it is proposed to be acquired” substitute “ acquiring authority ”, and

• (b) in subsection (2) (interpretation of sections 17 and 18) for “and eighteen” substitute “ to nineteen ”.

• (7) In each of paragraph 11 of Schedule 27 to the Local Government, Planning and Land Act 1980 and paragraph 8 of Schedule 9 to the Housing Act 1988 (modifications of section 17(2) of the 1961 Act)—

• (a) for “authority proposing to acquire it” substitute “ acquiring authority ”,

• (b) for “in respect thereof,” substitute “ in respect of the interest ”, and

• (c) for “sale thereof” substitute “ sale of the interest ”.

• (8) The amendments made in the Land Compensation Act 1961 by this section apply to the Crown to the extent set out in section 33 of that Act (Act applies in relation to acquisition by government department, including any Minister of the Crown, that is an authority possessing compulsory purchase powers as it applies to other authorities possessing those powers).

PART 10 — General

Tax

233

Schedule 24 (provision about tax in connection with certain transfers and transfer schemes) has effect.

Pre-commencement consultation

234

• (1) Subsections (2) and (3) apply for the purpose of determining whether there has been compliance with—

• (a) a requirement for consultation imposed by this Act,

• (b) a requirement for consultation which applies in relation to things done under an Act amended by this Act, or

• (c) a requirement (whether or not imposed by this Act) to do something in connection with a consultation under a requirement within paragraph (a) or (b).

• (2) The fact that a provision of this Act was not in force when consultation took place or anything was done in connection with a consultation is to be disregarded in determining whether there has been compliance with the requirement.

• (3) The fact that consultation was carried out by a body from whom functions are transferred by this Act, or anything was done by such a body in connection with a consultation, is to be disregarded in determining whether there has been compliance with the requirement by a body to whom those functions are transferred.

• (4) Subsection (3) is without prejudice to any other provision of this Act that applies to the transfer.

• (5) References in this section to a requirement imposed by this Act include a requirement imposed by another Act as a result of its amendment by this Act.

Orders and regulations

235

• (1) Any power of a Minister of the Crown or the Welsh Ministers to make an order or regulations under this Act is exercisable by statutory instrument.

• (2) Any power of a Minister of the Crown or the Welsh Ministers to make an order or regulations under this Act (other than a power under section 240) includes—

• (a) power to make different provision for different cases, circumstances or areas, and

• (b) power to make incidental, supplementary, consequential, transitional or transitory provision or savings.

• (3) The power under subsection (2)(a) includes, in particular, power to make different provision for different authorities or descriptions of authority (including descriptions framed by reference to authorities in particular areas).

• (4) Provision or savings made under subsection (2)(b) may take the form of amendments, or revocations, of provisions of an instrument made under legislation.

• (5) The generality of the power under subsection (2)(a) is not to be taken to be prejudiced by any specific provision of this Act authorising differential provision.

• (6) A Minister of the Crown may not make an order or regulations to which subsection (7) applies unless a draft of the statutory instrument containing the order or regulations (whether alone or with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.

• (7) This subsection applies to—

• (a) an order under section 5(2) that—

• (i) amends any Act or provision of an Act, and

• (ii) is not made (in reliance on section 7(4)) in accordance with sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 as applied by section 7(3);

• (b) an order under section 5(3), other than one that is made only for the purpose mentioned in section 7(5)(b);

• (c) an order under section 5(4), other than one that is made only for that purpose or for imposing conditions on the doing of things for a commercial purpose;

• (d) an order under section 8(2);

• (e) an order under section 52;

• (f) regulations under section 81(2)(d), (6)(e) or (10) or 83(11);

• (g) an order under section 87(4) or 96(7);

• (h) regulations under section 101;

• (i) an order under section 106(2) or 107(6);

• (j) regulations under section 117;

• (ja) regulations under section 197;

• (k) an order or regulations under section 236 which amend or repeal a provision of an Act otherwise than in consequence of provision made by or under section 232;

• (l) an order or regulations under section 236 which, in consequence of provision made by section 232, amend or repeal a provision of an Act other than a local or private Act.

• (8) A statutory instrument that—

• (a) contains an order or regulations made by a Minister of the Crown under this Act,

• (b) is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, each House of Parliament, and

• (c) is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, the House of Commons,

is subject to annulment in pursuance of a resolution of either House of Parliament.

• (9) Subsection (8) does not apply to—

• (a) an order under section 5(1) (but see section 7),

• (b) an order under section 5(2) which (in reliance on section 7(4)) is made in accordance with sections 15 to 19 of the Legislative and Regulatory Reform Act 2006 as applied by section 7(3),

• (c) an order under section 15 (but see section 19),

• (d) an order or regulations under Schedule 24, or

• (e) an order under section 240.

• (10) A statutory instrument that contains an order or regulations made by the Treasury under Schedule 24 is subject to annulment in pursuance of a resolution of the House of Commons.

• (11) The Welsh Ministers may not make—

• (a) an order or regulations under section 236 which amend or repeal a provision of legislation,

• (b) an order under section 62,

• (c) an order under section 87(4) or 96(7),

• (d) regulations under section 101, or

• (e) an order under section 106(4) or 107(6),

unless a draft of the statutory instrument containing the order or regulations (whether alone or with other provisions) has been laid before, and approved by a resolution of, the National Assembly for Wales.

• (12) A statutory instrument that—

• (a) contains an order or regulations made by the Welsh Ministers under this Act, and

• (b) is not subject to any requirement that a draft of the instrument be laid before, and approved by a resolution of, the National Assembly for Wales,

is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

• (13) Subsection (12) does not apply to an order under section 240.

• (14) If a draft of a statutory instrument containing an order under section 52 or regulations under section 197 would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument.

• (15) In this section—

• “legislation” means—an Act, ora Measure or Act of the National Assembly for Wales;

• “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.

Power to make further consequential amendments

236

• (1) The appropriate authority may by order or regulations make such provision amending, repealing or revoking legislation as the appropriate authority considers appropriate in consequence of any provision made by or under this Act.

• (2) In subsection (1) “appropriate authority”—

• (a) in relation to sections 9, 10, 25, 38 to 43, 45, 46, 68, 69, 87 to 108, 148, 149 and 162(3)(b) and (c), and Parts 2, 6, 7, 9, 10 and 22 of Schedule 25 and section 237 so far as relating to those Parts, means—

• (i) the Secretary of State in relation to England, and

• (ii) the Welsh Ministers in relation to Wales,

• (b) in relation to Part 3 and section 80, and Part 14 of Schedule 25 and section 237 so far as relating to that Part, means the Welsh Ministers, and

• (c) in relation to any other provision made by or under this Act means the Secretary of State.

• (3) In subsection (1) “legislation”, in relation to any provision made by or under this Act, means—

• (a) this Act or any Act passed before, or in the same Session as, this Act, or

• (b) any instrument made under this or any other Act before the coming into force of the provision.

• (4) In subsection (3) “Act” (except in the phrase “this Act”) includes an Act or Measure of the National Assembly for Wales.

Repeals and revocations

237

Schedule 25 (repeals and revocations) has effect.

Financial provisions

238

There is to be paid out of money provided by Parliament—

• (a) any expenditure incurred by a Minister of the Crown under this Act, and

• (b) any increase attributable to this Act in the sums payable under any other Act out of money so provided.

Extent

239

• (1) This Act extends to England and Wales only, subject as follows.

• (2) The following provisions extend also to Scotland—

• (a) Part 2,

• (b) section 128(1) and (3) to (6),

• (c) section 233 and Schedule 24, and

• (d) sections 235, 236 and 238, this section and sections 240 and 241.

• (3) Section 129 extends also to Scotland, but only so far as required for the purpose mentioned in section 240(4) of the Planning Act 2008 (construction of certain cross-border pipelines).

• (4) Part 2, sections 233, 235, 236 and 238, this section and sections 240 and 241, and Schedule 24, extend also to Northern Ireland.

• (5) Any amendment, repeal or revocation made by this Act has the same extent as the provision to which it relates, subject to subsection (6).

• (6) Any amendment or repeal made by this Act in the Transport Act 1968, and the repeal of section 121(1) of the Local Government, Planning and Land Act 1980, extend to England and Wales only.

Commencement

240

• (1) The following provisions come into force at the end of 2 months beginning with the day on which this Act is passed—

• (a) section 25,

• (b) Chapter 8 of Part 1 so far as relating to England,

• (c) section 44,

• (d) section 45,

• (e) section 47,

• (f) section 71,

• (g) section 80,

• (h) sections 111 to 113,

• (i) section 143,

• (j) section 177,

• (k) section 183 and Schedule 18,

• (l) Chapter 2 of Part 8, except section 197(3)(e) and (f) and (5), and

• (m) Parts 6, 8, 14, 17 and 29 of Schedule 25, and section 237 so far as relating to those Parts.

• (2) Subject to subsections (1) and (3) to (6), provisions of this Act come into force on such day as the Secretary of State may by order appoint.

• (3) The following provisions so far as relating to Wales come into force on such day as the Welsh Ministers may by order appoint—

• (a) Chapter 8 of Part 1,

• (b) section 46,

• (c) section 68,

• (d) section 69,

• (e) Chapter 3 of Part 5 except so far as it is brought into force by subsection (5)(f) and (g),

• (f) sections 148, 149 and 162(3)(b) and (c), and

• (g) Parts 7, 9, 10 and 22 of Schedule 25, and section 237 so far as relating to those Parts.

• (4) The following provisions come into force on such day as the Welsh Ministers may by order appoint—

• (a) section 9(1) so far as it inserts—

• (i) new sections 5A and 5B so far as relating to fire and rescue authorities in Wales,

• (ii) new sections 5C and 5D so far as relating to power of the Welsh Ministers to make orders, and

• (iii) new sections 5F to 5L,

• (b) section 9(2) so far as relating to fire and rescue authorities in Wales,

• (c) section 9(3), (6) and (7)(a) and (c),

• (d) section 9(7)(b) so far as it inserts new section 62(1A)(a) and (d),

• (e) section 9(7)(b) so far as it inserts new section 62(1A)(b) so far as relating to power of the Welsh Ministers to make orders,

• (f) section 10(1) to (3) and (5) so far as relating to fire and rescue authorities in Wales,

• (g) section 10(4),

• (h) Part 3,

• (j) the following so far as relating to fire and rescue authorities in Wales—

• (i) in Part 2 of Schedule 25, the entries for sections 5 and 19 of the Fire and Rescue Services Act 2004, and

• (ii) section 237 so far as relating to those entries, and

• (k) in Part 2 of Schedule 25, the entry for section 62(3) of the Fire and Rescue Services Act 2004, and section 237 so far as relating to that entry.

• (5) The following provisions come into force on the day on which this Act is passed—

• (a) section 23,

• (b) paragraphs 57 and 58 of Schedule 4, and section 26 so far as relating to those paragraphs,

• (c) section 37,

• (d) Chapter 2 of Part 5 so far as it confers power on the Secretary of State to make regulations,

• (e) section 86,

• (f) Chapter 3 of Part 5 so far as it confers power on the Secretary of State, or the Welsh Ministers, to make regulations or orders,

• (g) sections 103 and 104,

• (h) section 109(1)(b) and (2) to (6), paragraphs 1, 13(1), 18 and 19 of Schedule 8 and section 109(7) so far as relating to those provisions of that Schedule,

• (i) section 110,

• (j) sections 116 and 121 and Schedules 9 to 12 so far as those sections or Schedules confer power on the Secretary of State to make regulations or publish documents setting standards,

• (k) sections 117 to 120,

• (l) the provisions inserted by section 122 so far as they require or authorise the making of provision in a development order,

• (m) section 144,

• (n) sections 168 to 175,

• (o) section 233 and Schedule 24 so far as they confer power on the Treasury to make regulations or orders,

• (p) sections 234, 235, 236, 238, 239, this section and section 241, and

• (q) Part 15 of Schedule 25, and section 237 so far as relating to that Part.

• (6) Section 114 comes into force on the day after the day on which this Act is passed.

• (7) An order under subsection (2), (3) or (4) may—

• (a) appoint different days for different purposes;

• (b) make such transitory or transitional provision, or savings, as the person making the order considers appropriate.

• (8) The appropriate authority may by order make such transitory or transitional provision, or savings, as the appropriate authority considers appropriate in connection with the coming into force of any provision of this Act mentioned in subsection (1), (5) or (6).

• (9) In subsection (8) “appropriate authority”—

• (a) in relation to sections 25 and 45, and Part 6 of Schedule 25 and section 237 so far as relating to that Part, means—

• (i) the Secretary of State in relation to England, and

• (ii) the Welsh Ministers in relation to Wales,

• (b) in relation to sections 80 and 104, and Chapter 3 of Part 5 so far as it confers power on the Welsh Ministers to make regulations or orders, means the Welsh Ministers, and

• (c) in relation to any other provision mentioned in subsection (1), (5) or (6) means the Secretary of State.

Short title

241

This Act may be cited as the Localism Act 2011.

SCHEDULE 1

Local Government Act 1972 (c. 70)

1

In section 137(9)(a) (“local authority” means a parish council which is not an eligible parish council for the purposes of Part 1 of the Local Government Act 2000) for “Part 1 of the Local Government Act 2000” substitute “ Chapter 1 of Part 1 of the Localism Act 2011 (general power of competence) ”.

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2

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3

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4

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SCHEDULE 2

PART 1 — New Part 1A of the Local Government Act 2000

1

After Part 1 of the Local Government Act 2000 insert—