Explanatory note

In recognition of the additional administrative responsibilities on local authorities in Scotland, arising from local government reorganisation, this Order modifies the application of compulsory competitive tendering (CCT) under Part I (competition) of the Local Government Act 1988 (“the Act”) to those authorities.

The Order amends the requirement on authorities to expose to competition certain activities set out at section 2(2) of the Act so that section 4 of the Act (works contracts) and section 6 of the Act (functional work) will not require to be complied with until the exemption end date (article 3 and Schedule 1). That date is a different date for particular authorities for particular activities (article 7 and Schedule 2). Obligations in respect of accounts under Part I of the Act remain and are modified principally to reflect the removal of the competition requirement.

Schedule 1 to the Order specifies modifications to Part I of the Act in respect of interpretation (paragraph 1), temporary disapplication of competition requirements (paragraph 2 to 4) and accounts (paragraphs 5 to 9).

Articles 4, 5 and 6 make transitional and savings provisions in respect of the introduction of the exemption.

Article 8 provides that at the reintroduction of competition, authorities are to be regarded as complying with their CCT obligations, if by the exemption end date they have already announced who will carry out the functional work following a competitive process, even though the contract will not fall to commence until 1 to 4 months thereafter.