The Scottish Government

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Scottish Statutory Instruments

2007 No.

LOCAL GOVERNMENT

The Disposal of Land by Local Authorities (Scotland) Regulations 2007

Made 2007

Laid before the Scottish Parliament 2007

Coming into force 2007

The Scottish Ministers make the following Regulations in exercise of the powers conferred by section 74(2B), (2C) and (2D) of the Local Government (Scotland) Act 1973( [1]) and all other powers enabling them to do so.

In accordance with section 74(2H) of that Act, they have consulted with such associations of local authorities and such other persons as they have thought fit:

Citation, commencement and interpretation

1. (1) These Regulations may be cited as the Disposal of Land by Local Authorities (Scotland) Regulations 2007 and shall come into force on [ ] 2007.

(2) In these Regulations, "the Act" means the Local Government (Scotland) Act 1973.

Threshold amount and marginal amount

2. (1) The threshold amount for the purposes of section 74(2A)(a) of the Act is £10,000.

(2) The marginal amount for the purposes of section 74(2A)(b) of the Act is £10,000.

(3) Where a disposal is as described in section 74(2A) of the Act, the provisions in regulation 4 do not apply to the disposal.

Disposals of land at a substantial undervalue

3. (1) Except with the consent of the Scottish Ministers, a local authority shall not dispose of land for a consideration less than the best that can reasonably be obtained, where the difference between the best consideration that can reasonably be obtained, and the proposed consideration for the disposal, amounts to XXXXX pounds or greater.

(2) Where the difference provided for in paragraph (1) applies, the provisions in regulation 4 do not apply to the disposal.

Circumstances and procedure applying when local authorities dispose of land

4. (1) This regulation applies where-

(a) a local authority is proposing to dispose of land for a consideration less than the best that can reasonably be obtained;

(b) the disposal is not as described in section 74(2A) of the Act; and

(c) the circumstances provided for in regulation 3 do not apply.

(2) The local authority must appraise and compare the costs and other disbenefits and the benefits of the proposal.

(3) The local authority must, before deciding in favour of the proposal, satisfy itself that so deciding would be reasonable, and in so satisfying itself shall have regard to the factor stated in paragraph (4).

(4) That factor is whether the local authority considers that the purpose for which the land is to be disposed is likely to contribute to the achievement of any one or more of the objects set out in paragraph (5), in respect of the whole or any part of its area, or in respect of all or any persons resident or present in its area.

(5) Those objects are-

(a) the promotion or improvement of economic development or regeneration;

(b) the promotion or improvement of social well-being;

(c) the promotion or improvement of environmental well-being; or

(d) the promotion or improvement of outcomes which another person or body that has functions of a public nature (or that engages in activities of that nature) is pursuing, where that person or body has a partnership agreement with the local authority, and where those outcomes have been accepted by the local authority to be in the public interest.

(6) The local authority must consider-

(a) the benefits and disbenefits of publicising the proposal;

(b) if the proposal should be publicised, the form, methods and timing of the publicity; and

(c) any further requirements that should be undertaken as part of the publicity.

A member of the Scottish Executive

St Andrew's House,

Edinburgh 2007

([1]) 1973 c.65, subsections (2A) to (2D) were inserted by the Local Government in Scotland Act 2003 asp 1 (hereinafter referred to as "the 2003 Act"), section 11(1)(b).

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision in relation to the circumstances in which, and procedures by which, local authorities may dispose of land, for a consideration less than the best that can reasonably be obtained.

Under section 74 of the Local Government (Scotland) Act 1973 ("the 1973 Act") in its original form, a local authority required the consent of the Scottish Ministers (formerly of the Secretary of State) to dispose of land for consideration less than the best that can reasonably be obtained. By section 74(2A), such disposals are permitted (without consent, or the conditions and procedures in these regulations applying) where either the best consideration that can reasonably be obtained is less than the threshold amount, or the difference between that consideration and the proposed consideration is less than the marginal amount. Regulation 2 sets these threshold and marginal amounts at £10,000 in each case.

Regulation 3 provides that a local authority requires the consent of the Scottish Ministers to a land disposal for a consideration less than the best that can reasonably be obtained, where the difference between the best consideration that can reasonably be obtained and the proposed consideration amounts to XXXXX pounds or greater.

Regulation 4 makes provision for the circumstances in which, and procedure by which, local authorities may dispose of land for a consideration less than the best that can reasonably be obtained. This applies where the consent of the Scottish Ministers to the disposal is not required, and where the disposal is not one where the marginal or threshold amounts provided for in regulation 2 operate. This regulation sets out the matters on which a local authority requires to satisfy itself in relation to a proposal to dispose of land, including whether deciding in favour of the proposal would be reasonable. Paragraphs (4) and (5) also set out a factor which the local authority must have regard to, in deciding whether such a decision would be reasonable. Paragraph (6) provides that the local authority shall consider whether and how any proposal should be publicised.

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