The Local Government (Structural and Boundary Changes) (Control of Disposals etc.) (Amendment) Order 2026
Updated the statutory reference date for calculating the cumulative value of local authority contract and land disposals from 2006 to 2025.
The Local Government (Structural and Boundary Changes) (Control of Disposals etc.) (Amendment) Order 2026 amends the Local Government and Public Involvement in Health Act 2007 to update the baseline date used for calculating the value of land disposals and contracts by local authorities facing dissolution.
The Order requires these authorities to account for transactions made after 31 March 2025, rather than 31 December 2006, when determining if a contract exceeds the threshold requiring written consent from a specified person or the Secretary of State.
The Order applies to local authorities in England that are subject to structural or boundary change orders.
Arguments For
The Order updates the reference date for calculating the cumulative value of local authority disposals to reflect a more contemporary period (31 March 2025 instead of 31 December 2006).
The explanatory note indicates that the Secretary of State utilizes powers under the 2007 Act to ensure oversight of property disposals and contractual dealings by local authorities scheduled for dissolution.
The document notes that no significant impact on the private, voluntary, or public sector is foreseen, justifying the absence of a full impact assessment.
Arguments Against
Local authorities undergoing restructuring may face administrative burdens if recent disposals now fall within the updated cumulative calculation period, potentially triggering the need for Secretary of State consent for smaller subsequent transactions.
Legal observers might question the necessity of an overnight commencement and whether the transition period for affected authorities is sufficient to adjust their procurement and disposal schedules.
Stakeholders in the local government sector might argue that updating the date to 2025 significantly alters the financial thresholds for oversight in a way that had not been anticipated during long-term planning.
Citation, commencement and extent
- -(1) This Order may be cited as the Local Government (Structural and Boundary Changes) (Control of Disposals etc.) (Amendment) Order 2026.
(2) This Order comes into force on the day after the day on which it is made.
(3) This Order extends to England and Wales.
This section establishes the official name of the Order and its geographic jurisdiction over England and Wales.
It mandates that the legal changes take effect one day after the government signs the Order into law.
Amendment of the Local Government and Public Involvement in Health Act 2007
- In the Local Government and Public Involvement in Health Act 2007, in section 27(1) and (3) (consideration to be taken into account for purposes of direction), for '31 December 2006' substitute '31 March 2025'.
This provision modifies the primary legislation by changing a specific date used to calculate the financial value of local government transactions.
By replacing 31 December 2006 with 31 March 2025, it changes which historical contracts and land sales a local authority must include when calculating whether a new disposal requires government approval.
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