Explanatory note

With effect from 1st April 1996, local government in Scotland is reorganised with new single-tier authorities replacing existing regional and district councils. This Order makes provision as to certain accounting and financial matters relative to this reorganisation.

Articles 3 to 5 make provision as to the completion of the accounts and certain reports of existing authorities after the date of their abolition. Article 6 deals with completion of outstanding duties relative to non-domestic rating contributions for 1995-96.

Articles 8 to 19 deal with the allocation of the rights, liabilities and obligations of authorities which are being abolished and article 7 allows certain of those provisions to be varied by agreement between the relevant new authorities. Specific provision is made as to common good funds (article 8), urban programme and European Structural Fund grants (articles 9 and 10), the transfer of rights, liabilities and obligations to the Scottish Children’s Reporter Administration and the Principal Reporter (article 11), bank accounts (article 12), property charges, taxes and rates, community charges, and related benefit finance and subsidy matters (articles 13 to 15), housing revenue accounts (article 16), and certain compensation payments to former employees (article 17). Provision is made regarding transfer of residual rights, liabilities and obligations—to joint boards (article 18) and to local authorities generally (article 19).

Articles 20 and 21 make provision as to financial arrangements where an existing local authority has more than one successor local authority. The successor authority made responsible under the Order for closing the existing authority’s accounts and dealing with residual rights, liabilities and obligations is entitled to recover appropriate sums from the other successor authorities.

Article 22 provides that nothing in the Order has effect for determining the new authorities on which the Secretary of State may serve notices or give directions under certain competitive tendering provisions.