Regulation 2 Interpretation

In these Regulations—

• “the allowable period” means the period commencing on the date when section 6 of the Act first applies to the defined authority in question in respect of specified work and ending on the date the work falling within paragraph 13(1)(e) of Schedule 1 to the Act is completed;

• “the Act” means the Local Government Act 1988;

• “the cost” means the estimated total annual cost including overheads;

• “the specified proportion” means an amount equal to the product of the following formula—

  $$\mathrm{T}-\left(\mathrm{A}+\mathrm{B}+\mathrm{C}+\mathrm{D}+\mathrm{E}+\mathrm{F}+\mathrm{G}\right)$$

  where

  T

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

A

• an amount equal to 65% of T or £300,000,, whichever is greater;

B

• 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 by a defined authority following voluntary competitive tendering;

C

• , an amount equal to the cost of specified work carried out by a defined authority on behalf of a school with a delegated budget provided under a scheme prepared in accordance with section 33 of the Education Reform Act 1988^f1;

D

• until 1st April 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)^f2 where that functional work is not subject to section 6 of the Act;

E

• an amount equal to the cost of specified work carried out by a defined authority in connection with functional work falling within any defined activity where that functional work is being carried out by a defined authority in accordance with the provisions of the Act;

F

• an amount equal to the cost of specified work carried out by a defined authority in connection with functional work to which Part III of the Local Government,, Planning and Land Act 1980^f3 applies where that functional work is being carried out by a defined authority in accordance with the provisions of that Act; and

G

• for the allowable period,, an amount equal to the cost of work falling within paragraph 13(1)(e) of Schedule 1 to the Act where that work has been started by a defined authority before the commencement of the allowable period;

• “the finance defined activity” means the defined activity mentioned in section 2(2)(l) of the Act (financial services)^f4;

• “specified work” means work of any description falling within the finance defined activity other than work carried out by a bidding authority to which section 4 of the Act (works contracts: restrictions) applies; and “determination work” means work in connection with the determination of payments in pursuance of any functions conferred on an authority by or under the Social Security Contributions and Benefits Act 1992^f5 or the Social Security Administration Act 1992^f6;

• “voluntary competitive tendering” means the awarding of work before 1st April 1994 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.