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

S.I. 1997/197 · Made 31 January 1997

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

LOCAL GOVERNMENT, SCOTLAND

Made 31st January 1997

Laid before Parliament 3rd February 1997

Coming into force 3rd March 1997

The Secretary of State, in exercise of the powers conferred on him by sections 6(3) and 15(6) and (7) of the Local Government Act 1988f1 and of all other powers enabling him in that behalf, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1988 c. 9; section 6(3) was amended by paragraph 12 of Schedule 1 to the Local Government Act 1992 (c. 19).

Contents

  1. 1Citation, commencement and application
  2. 2Interpretation
  3. 3Application of section 6 – management of vehicles
  4. 4Application of section 6 – housing management
  5. 5Application of section 6 – security work
  6. 6Application of section 6 – professional services
  7. 7Joint fire boards – special provisions
  8. 8Provision as to dates for the purposes of section 6
  9. Signature
  10. Schedule 1: SPECIFIED PROPORTION—LEGAL SERVICES
  11. 1Paragraph 1
  12. 2Paragraph 2
  13. Schedule 2: SPECIFIED PROPORTION—CONSTRUCTION AND PROPERTY SERVICES
  14. 1Paragraph 1
  15. 2Paragraph 2
  16. Schedule 3: SPECIFIED PROPORTION—FINANCIAL SERVICES
  17. 1Paragraph 1
  18. 2Paragraph 2
  19. 3Paragraph 3
  20. Schedule 4: SPECIFIED PROPORTION—INFORMATION TECHNOLOGY SERVICES
  21. 1Paragraph 1
  22. 2Paragraph 2
  23. Schedule 5: SPECIFIED PROPORTION—PERSONNEL SERVICES
  24. 1Paragraph 1
  25. 2Paragraph 2
  26. Schedule 6APPLICATION OF SECTION 6 – MANAGEMENT OF VEHICLES
  27. Explanatory note

1Citation, commencement and application

(1)

These Regulations may be cited as the Local Government Act 1988 (Competition) (Scotland) Regulations 1997 and shall come into force on 3rd March1997.

(2)

These Regulations apply to councils constituted under section 2 of the Local Government etc. (Scotland) Act 1994f1 and to joint boards and joint committees within the meaning of the Local Government (Scotland) Act 1973f2, but do not apply to–

(a)

joint boards constituted by an amalgamation scheme order made under section 21B of the Police (Scotland) Act 1967 (reorganisation of police areas)f3; or

(b)

the Dumfries and Galloway Council or the Fife Council in respect of their functions as a police authority under the said Act of 1967.

2Interpretation

In these Regulations, unless the context otherwise requires–

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

  • “the 1980 Act” means the Local Government, Planning and Land Act 1980f1;

  • “construction and property services” means the defined activity mentioned in section 2(2)(k) of the Actf2;

  • “the cost”, in relation to a defined activity, means the estimated total annual cost including overheads, provided that these overheads are not treated by a defined authority as forming part of the cost of–

    1. (a)

      another defined activity; or

    2. (b)

      work to which Part III of the 1980 Act applies;

  • “defined authority” means an authority to whom and to which extent these Regulations apply;

  • “financial services” means the defined activity mentioned in section 2(2)(l) of the Actf3;

  • “housing management” means the defined activity mentioned in section 2(2)(h) of the Actf4;

  • “information technology services” means the defined activity mentioned in section 2(2)(m) of the Actf5;

  • “legal services” means the defined activity mentioned in section 2(2)(j) of the Actf6;

  • “management of vehicles” means the defined activity mentioned in section 2(2)(gg) of the Actf7;

  • “personnel services” means the defined activity mentioned in section 2(2)(n) of the Actf8;

  • “professional services” means the defined activities of–

    1. (a)

      legal services;

    2. (b)

      construction and property services;

    3. (c)

      financial services;

    4. (d)

      information technology services; and

    5. (e)

      personnel services;

  • “security work” means the defined activity mentioned in section 2(2)(i) of the Actf9;

  • “the specified proportion” means for professional services an amount calculated–

    1. (a)

      in respect of legal services in accordance with Schedule 1 to these Regulations;

    2. (b)

      in respect of construction and property services in accordance (subject to regulation 7 below) with Schedule 2 to these Regulations;

    3. (c)

      in respect of financial services in accordance (subject to regulation 7 below) with Schedule 3 to these Regulations;

    4. (d)

      in respect of information technology services in accordance with Schedule 4 to these Regulations; and

    5. (e)

      in respect of personnel services in accordance (subject to regulation 7 below) with Schedule 5 to these Regulations;

  • “specified work” means work of any description falling within the activity concerned, other than work carried out by a bidding authority to which section 4 of the Act (works contracts; restrictions)f10 applies;

  • “voluntary competitive tendering” means the award of work before 2nd 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.

3Application of section 6 – management of vehicles

Subject to regulation 8 below, section 6 of the Act shall apply to functional work of any description falling within management of vehicles if it is proposed to be carried out by a defined authority specified in column 1 of Schedule 6 to these Regulations on or after the date specified in column 2 of that Schedule opposite that authority.

4Application of section 6 – housing management

(1)

Subject to regulation 8 below, section 6 of the Act shall apply to the specified proportion of any specified work falling within housing management if it is proposed to be carried out by a defined authority on or after 1st April 1999.

(2)

Subject to regulation 8 below, where a defined authority proposes to carry out any specified work falling within housing management in the financial year beginning on 1st April 1998, section 6 of the Act shall apply in that financial year to the specified proportion of that work.

(3)

In paragraph (1) above, the specified proportion is an amount equal to 95% of the cost to the defined authority of the work.

(4)

In paragraph (2) above, the specified proportion is an amount equal to 30% of the product of the following formula:–

T-(A+B)

where–

T

  • an amount equal to the cost to the defined authority of the work;

    • A

  • 5% of T; and

    • B

  • for the period ending on 1st April 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.

    • 5Application of section 6 – security work

    Section 6 of the Act shall apply to functional work of any description falling within security work if it is proposed to be carried out by a defined authority on or after 1st July 1998.

    6Application of section 6 – professional services

    (1)

    Section 6 of the Act shall apply to the specified proportion of any specified work falling within a professional service if it is proposed to be carried out by a defined authority on or after 1st October 1999.

    (2)

    Where a defined authority proposes to carry out any specified work falling within a professional service in the period from 1st October 1998 to 31st March 1999 (inclusive), section 6 of the Act shall apply in that period to one third of the cumulative total of the specified proportions of work falling within the professional services.

    (3)

    Where a defined authority proposes to carry out any specified work falling within a professional service in the period from 1st April 1999 to 30th September 1999 (inclusive), section 6 of the Act shall apply in that period to two-thirds of the cumulative total of the specified proportions of work falling within the professional services.

    (4)

    This regulation is subject to regulation 8 below.

    7Joint fire boards – special provisions

    (1)

    In respect of defined authorities to which this regulation applies–

    (a)

    paragraph 1(b) of Schedule 2 shall have effect as if, in paragraph (b) of component C, “£450,000” were substituted for “£300,000”;

    (b)

    paragraph 1(b) of Schedule 3 shall have effect as if, in paragraph (a) of component C, “65%” were substituted for “50%”; and

    (c)

    paragraph 1(b) of Schedule 5 shall have effect as if–

    (i)

    in paragraph (a) of component C, “85%” were substituted for “60%”; and

    (ii)

    in paragraph (b) of that component, “£400,000” were substituted for “£300,000”.

    (2)

    This regulation applies to joint boards constituted by an administration scheme order made under section 147 of the Local Government (Scotland) Act 1973 (fire services)f1.

    8Provision as to dates for the purposes of section 6

    (1)

    For the purposes of section 6 of the Act, a defined authority in respect of particular work shall, provided that they comply with the requirement specified in paragraph (2) below, be taken as having fulfilled their obligations under Part I of the Act as to the date after which an authority cannot carry out that work without complying with the six conditions if, by the date specified in these Regulations for that purpose, the authority have announced their decision as to who should carry out the work.

    (2)

    The requirement referred to in paragraph (1) above is that the period between making the announcement of the relevant decision and the beginning of the period during which that work is to be carried out shall not be more than 3 months.

    (3)

    This regulation shall apply only–

    (a)

    in respect of management of vehicles, housing management and professional services; and

    (b)

    to the first occasion when those services require to be let in terms of these Regulations in accordance with Part I of the Act.

    Signature

    George Kynoch

    Parliamentary Under Secretary of State, Scottish Office

    St Andrew’s House,

    Edinburgh

    31st January 1997

    1

    The specified proportion in respect of legal services means the greater of–

    (a)

    £0; or

    (b)

    an amount equal to the product of the following formula–

    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–

    1. (a)

      work falling within any other defined activity; or

    2. (b)

      work to which Part III of the 1980 Act 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 whichever is the greater of–

    1. (a)

      55% of (T − (A + B));

    2. (b)

      £300,000;

    • D

  • for the period ending on 1st April 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;

    • 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–

    1. (a)

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

    2. (b)

      that work had previously been carried out by the defined authority conducting that process or by a predecessor of that authority;

    • G

  • an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s devolved budget allocated under a local authority’s devolved school management scheme; and

    • H

  • 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 housing management where that functional work is not subject to section 6 of the Act.

    • 2

    Where an amount is counted towards any such cost or amount as is specified in component A, B, D, E, F, G or H in paragraph 1(b) above–

    (a)

    that amount may not be counted towards any other cost or amount in any such component; and

    (b)

    that amount may not be counted towards any cost or amount in any component in paragraph 1(b) of Schedule 2, 3, 4 or 5 to these Regulations.

    1

    The specified proportion in respect of construction and property services means the greater of–

    (a)

    £0; or

    (b)

    an amount equal to the product of the following formula–

    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–

    1. (a)

      work falling within any other defined activity; or

    2. (b)

      work to which Part III of the 1980 Act 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 whichever is the greater of–

    1. (a)

      35% of (T − (A + B));

    2. (b)

      £300,000;

    • D

  • for the period ending on 1st April 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;

    • 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–

    1. (a)

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

    2. (b)

      that work had previously been carried out by the defined authority conducting that process or by a predecessor of that authority;

    • G

  • an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s devolved budget allocated under a local authority’s devolved school management scheme; and

    • H

  • 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 housing management where that functional work is not subject to section 6 of the Act.

    • 2

    Where an amount is counted towards any such cost or amount as is specified in component A, B, D, E, F, G or H in paragraph 1(b) above–

    (a)

    that amount may not be counted towards any other cost or amount in any such component; and

    (b)

    that amount may not be counted towards any cost or amount in any component in paragraph 1(b) of Schedule 1, 3, 4 or 5 to these Regulations.

    1

    The specified proportion in respect of financial services means the greater of–

    (a)

    £0; or

    (b)

    an amount equal to the product of the following formula–

    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 and of determination 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–

    1. (a)

      work falling within any other defined activity; or

    2. (b)

      work to which Part III of the 1980 Act 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 whichever is the greater of–

    1. (a)

      50% of (T − (A + B));

    2. (b)

      £300,000;

    • D

  • for the period ending on 1st April 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;

    • 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–

    1. (a)

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

    2. (b)

      that work had previously been carried out by the defined authority conducting that process or by a predecessor of that authority;

    • G

  • an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s devolved budget allocated under a local authority’s devolved school management scheme; and

    • H

  • 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 housing management where that functional work is not subject to section 6 of the Act.

    • 2

    Where an amount is counted towards any such cost or amount as is specified in component A, B, D, E, F, G or H in paragraph 1(b) above–

    (a)

    that amount may not be counted towards any other cost or amount in any such component; and

    (b)

    that amount may not be counted towards any cost or amount in any component in paragraph 1(b) of Schedule 1, 2, 4 or 5 to these Regulations.

    3

    In paragraph 1 above, “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 1992f1 or the Social Security Administration Act 1992f2.

    1

    The specified proportion in respect of information technology services means the greater of–

    (a)

    £0; or

    (b)

    an amount equal to the product of the following formula–

    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;

    • 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–

    1. (a)

      work falling within any other defined activity; or

    2. (b)

      work to which Part III of the 1980 Act 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 whichever is the greater of–

    1. (a)

      60% of (T − (A + B));

    2. (b)

      £300,000;

    • D

  • for the period ending on 1st April 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;

    • 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–

    1. (a)

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

    2. (b)

      that work had previously been carried out by the defined authority conducting that process or by a predecessor of that authority;

    • G

  • an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s devolved budget allocated under a local authority’s devolved school management scheme;

    • H

  • 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 housing management where that functional work is not subject to section 6 of the Act; and

    • I

  • an amount equal to the cost of specified work which is being carried out by a defined authority at the request of any person (other than a local authority) carrying out work on the authority’s behalf, for the purpose of facilitating such work.

    • 2

    Where an amount is counted towards any such cost or amount as is specified in component A, B, D, E, F, G, H or I in paragraph 1(b) above–

    (a)

    that amount may not be counted towards any other cost or amount in any such component; and

    (b)

    that amount may not be counted towards any cost or amount in any component in paragraph 1(b) of Schedule 1, 2, 3 or 5 to these Regulations.

    1

    The specified proportion in respect of personnel services means the greater of–

    (a)

    £0; or

    (b)

    an amount equal to the product of the following formula–

    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–

    1. (a)

      work falling within any other defined activity; or

    2. (b)

      work to which Part III of the 1980 Act 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 whichever is the greater of–

    1. (a)

      60% of (T − (A + B));

    2. (b)

      £300,000;

    • D

  • for the period ending on 1st April 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;

    • 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–

    1. (a)

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

    2. (b)

      that work had previously been carried out by the defined authority conducting that process or by a predecessor of that authority;

    • G

  • an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s devolved budget allocated under a local authority’s devolved school management scheme; and

    • H

  • 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 housing management where that functional work is not subject to section 6 of the Act.

    • 2

    Where an amount is counted towards any such cost or amount as is specified in component A, B, D, E, F, G, or H in paragraph 1(b) above–

    (a)

    that amount may not be counted towards any other cost or amount in any such component; and

    (b)

    that amount may not be counted towards any cost or amount in any component in paragraph 1(b) of Schedule 1, 2, 3 or 4 to these Regulations.

    Schedule 6APPLICATION OF SECTION 6 – MANAGEMENT OF VEHICLES

    Column 1Column 2
    Defined authorityRelevant date
    Aberdeen City Council1st January 1998
    Aberdeenshire Council1st September 1997
    Angus Council1st July 1997
    Argyll and Bute Council1st July 1997
    East Ayrshire Council1st November 1997
    North Ayrshire Council1st January 1998
    South Ayrshire Council1st January 1998
    Clackmannanshire Council1st March 1998
    Dumfries and Galloway Council1st November 1997
    East Dunbartonshire Council1st July 1997
    West Dunbartonshire Council1st November 1997
    Dundee City Council1st September 1997
    City of Edinburgh Council1st May 1998
    Falkirk Council1st March 1998
    Fife Council1st November 1997
    Glasgow City Council1st November 1997
    Highland Council1st January 1998
    Inverclyde Council1st November 1997
    North Lanarkshire Council1st October 1997
    South Lanarkshire Council1st October 1997
    East Lothian Council1st May 1998
    Midlothian Council1st May 1998
    West Lothian Council1st May 1998
    Moray Council1st May 1998
    Orkney Islands Council1st July 1997
    Perth and Kinross Council1st January 1998
    East Renfrewshire Council1st March 1998
    Renfrewshire Council1st May 1998
    Scottish Borders Council1st January 1998
    Shetland Islands Council1st July 1997
    Stirling Council1st July 1998
    Western Isles Council1st July 1997
    A Joint Board1st July 1998
    A Joint Committee1st July 1998

    Explanatory note

    (This note is not part of the Regulations)

    These Regulations make provision as to the introduction in Scotland of compulsory competitive tendering under the Local Government Act 1988 in respect of management of vehicles, housing management, security work, and the following professional services:– legal, construction and property, financial, information technology and personnel.

    The dates for introduction are set down and formulae are provided for the calculation of the specified proportion of work which must be exposed to competition. The Regulations apply to all local authorities, joint boards and joint committees in Scotland, other than joint police boards and individual local authorities whilst acting as police authorities.