Section 28 Contraventions of directionI1

England and Wales

(1)

A disposal made in contravention of a direction under section 24 is void.

(2)

A contract entered into by an authority (“the old authority”) in contravention of a direction under section 24 is not enforceable against a successor.

(3)

In subsection (2) a “successor” means a local authority (other than the old authority)—

(a)

which is established by an order under section 7 or 10; and

(b)

whose area consists of or includes the whole or part of the area of the old authority.

(4)

A contract which apart from this subsection would be a certified contract for the purposes of the Local Government (Contracts) Act 1997 (c. 65) is not a certified contract for those purposes if it is entered into in contravention of a direction under section 24.

(5)

If an authority includes financial reserves in a calculation under section F131A(3) of the Local Government Finance Act 1992 (c. 14) in contravention of a direction under section 24, the authority is to be treated for the purposes of section 30(8) of that Act as not having made the calculations required by Chapter 3 of Part 1 of that Act.

(6)

If an authority includes financial reserves in a calculation under section F242A(3) of that Act in contravention of a direction under section 24, the authority is to be treated for the purposes of section 40(7) of that Act as not having made the calculations required by Chapter 4 of Part 1 of that Act.

Annotations

Textual amendments

F1: Word in s. 28(5) substituted (3.12.2011) by Localism Act 2011 (c. 20), s. 240(2), Sch. 7 para. 51(2); S.I. 2011/2896, art. 2(i)
F2: Word in s. 28(6) substituted (3.12.2011) by Localism Act 2011 (c. 20), s. 240(2), Sch. 7 para. 51(3); S.I. 2011/2896, art. 2(i)

Commencement

I1: S. 28 in force at 1.11.2007 for E. by S.I. 2007/3136, art. 2(a)