Consultation on disposals of land for less than market price
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Consultation on disposals of land for less than market price
The Scottish Executive wishes to invite you to participate in a public consultation on the disposal of local authority land for less than market price.
Under existing legislation (Section 74, Local Government (Scotland) Act 1973), where a local authority proposes to dispose of land for less than the best that can be reasonably obtained, then consent must first be given by Scottish Ministers.
Section 11 of the Local Government in Scotland Act 2003 amends the existing consent regime, by providing that local authorities can decide on their own proposals subject to the application of regulations and guidance issued by Scottish Ministers.
We are inviting written responses to the regulations and guidance by 24 March 2005. Please send your response to:
John McLoughlin
The Scottish Executive
Performance & Improvement Division
Victoria Quay
Edinburgh
EH6 6QQ
Email john.mcloughlin@scotland.gov.uk
or telephone John McLoughlin on 0131 2440817 or Melanie Legg on 0131 2447056
We would be grateful if you could clearly indicate in your response which parts of the consultation paper you are responding to (the regulations or the guidance) as this will aid our analysis of the responses received.
The Scottish Executive now has an email alert system for consultations (SEconsult). This system allows stakeholder individuals and organisations to register and receive a weekly email containing details of all new SE consultations (including web links). SEconsult complements, but in no way replaces SE distribution lists, and is designed to allow stakeholders to keep up to date with all SE consultations activity, and therefore be alerted at the earliest opportunity to those of most interest. We would encourage you to register.
We will make all responses available to the public in the Scottish Executive Library by June 2005 and on the Scottish Executive website, unless confidentiality is requested. All responses not marked confidential will be checked for any potentially defamatory material before being logged in the library or placed on the website.
LOCAL GOVERNMENT IN SCOTLAND ACT 2003 - SECTION 11
- SUPPORTING GUIDANCE AND REGULATIONS FOR DISPOSALS OF LAND AT A DISCOUNT
The Draft Guidance
Statutory Guidance issued under s74 of the Local Government (Scotland ) Act 1973, as amended by s11 of the Local Government in Scotland Act 2003: Consultation draft
The duty to appoint and instruct a suitably qualified valuer when determining the value of land that is disposed for less than full value; and the factors to be taken into account by that valuer in assessing the best consideration that can reasonably be obtained for land that is disposed for less than full value.
1. Introduction
1.1 This statutory guidance is issued by Scottish Ministers under s74 of the Local Government (Scotland ) Act 1973, as amended by s11 of the Local Government in Scotland Act 2003. It is the duty of a local authority to have regard to this guidance when considering whether or not to dispose of land and property for less than full value.
1.2 Guidance and regulations issued under s74 (as amended) is relevant to local authorities as defined by the Local Government (Scotland) Act 1973, i.e. councils constituted under section 2 of the Local Government etc (Scotland) Act 1994.
2. A Suitably Qualified Valuer
2.1 When determining the value of land that is disposed for less than full value, local authorities should appoint and instruct a valuer who is a corporate member of the Royal Institution of Chartered Surveyors, or a corporate member of the Institute of Rating Revenues and Valuation. The valuer should be suitably experienced in the valuation of the type of property concerned and with a reasonable knowledge of the locality concerned.
3. Factors to be taken into account when assessing best consideration
3.1 When assessing best consideration, the valuation of the land should be made according to the Compulsory Purchase Code 1.
Footnote
1 Current compulsory purchase legislation is commonly referred to as the Compulsory Purchase Code. The core of this legislation is the Land Compensation (Scotland ) Act 1963, (as amended) and added to by the Land Compensation (Scotland) Act 1973 (as amended). However it also would include the residue of the Lands Clauses (Consolidation) (Scotland) 1845, the Railway Clauses (Consolidation)(Scotland ) Act 1845, the 1991 Planning and Compensation Act, relevant sections of Housing Acts plus sundry subsequent regulations on Home Loss Payments etc., and also case-law.
LOCAL GOVERNMENT IN SCOTLAND ACT 2003 - SECTION 11
- SUPPORTING GUIDANCE AND REGULATIONS FOR DISPOSALS OF LAND AT A DISCOUNT
The Draft Regulations
SCOTTISH STATUTORY INSTRUMENTS
2005 No.
LOCAL GOVERNMENT
The Disposal of Land by Local Authorities (Scotland) Regulations 2005
Made | 2005 |
Laid before the Scottish Parliament | 2005 |
Coming into force | 2005 |
The Scottish Ministers 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 in that behalf, and after consultation with such associations of local authorities and such other persons as they think fit as required by section 74(2H) of that Act, hereby make the following Regulations:
Citation commencement and interpretation
1. (1) These Regulations may be cited as the Disposal of Land by Local Authorities (Scotland) Regulations 2005 and shall come into force on [ ] 2005.
(2) In these Regulations-
"the Act" means the Local Government (Scotland) Act 1973;
"a community body", in relation to a local authority, is a body or other grouping, whether or not formally constituted, established for purposes which consist of or include that of promoting or improving the interests of any communities (howsoever described) resident or otherwise present in the area of the local authority; and
"other public body" means-
(a) a public authority or body;
(b) a body which, not being a public body, has functions of a public nature or engages in activities of that nature;
(c) a person or office-holder who has such functions or engages in such activities.
Threshold amount and marginal amount
2. The threshold amount for the purposes of section 74(2A)(a)( 2) of the Act is £10,000.
3. The marginal amount for the purposes of section 74(2A)(b) of the Act is £10,000.
Circumstances and procedure for disposal of land
4. (1) This regulation applies where a local authority is proposing to dispose of land at less than the best consideration that can be reasonably be obtained.
(2) The local authority shall make that proposal publicly known by-
(a) placing a notice of the proposal in a newspaper circulating in the locality in which that land is situated inviting comments on or objections to the proposal within the period of 28 days beginning with the day on which the newspaper is published;
(b) fixing that notice to at least one prominent place on or beside that land advising of that proposal and inviting comments on or objections to the proposal within the period of 28 days beginning with the day on which the notice is fixed; and
(c) giving notice to any persons whom the local authority considers may have an interest in that land of that proposal and inviting comments on or objections to the proposal within the period of 28 days beginning with the day on which the person is informed of the proposal.
and each such notice shall include a description of the land, an indication of the consideration likely to be obtained, the person to whom the property is to be disposed and the purposes for which the land is to be used.
(3) The local authority shall appraise and compare the costs and other disbenefits and the benefits of the proposal.
(4) The local authority shall before deciding in favour of the proposal satisfy itself that so deciding would be reasonable and in so deciding must have regard to one or more of the factors set out in paragraphs (5) to (7).
(5) That the person to whom it is proposed the disposal is made performs functions of a charitable or public nature and that person intends to use the land in order to perform those functions.
(6) That the person to whom it is proposed the disposal is made is a community body or other public body and that community body or other public body intends to use the land to promote or improve the well being of the local authority area and persons within that area or either of those.
(7) That the person to whom it is proposed the disposal is made intends to use the land in a manner that promotes economic development or regeneration within the local authority area.
Disposal after an open market competition
5. (1)Where an open market competition is to be held for the land the local authority may only dispose of that land for a price less than the best that could reasonably be obtained by virtue of that open market competition where that local authority has informed prospective purchasers in the particulars of sale of the possibility that it will consider a price less than the best that can reasonably be obtained.
(2) Paragraphs (3) to (7) of regulation 4 shall apply to disposals under paragraph (1).
EXPLANATORY NOTE
(This note is not part of the Order)
These regulations make provision as to the circumstances in which and the procedure by which local authorities may dispose of land for a consideration less than the best that can reasonably be obtained.
Regulations 2 and 3 fix the threshold amount and the marginal amount for the purposes of section 74(2A) of the Local Government (Scotland) Act 1973.
Regulation 4 makes provision for the circumstances in which and the procedure by which local authorities may dispose of land for a consideration less than the best that can reasonably be obtained.
Regulation 5 makes provision for the circumstances in which there can be a disposal of land for a consideration less than the best that can reasonably be obtained after an open market competition has been held for that land.
Footnotes to the Draft Regulations
( 1) 1973 c.65, subsections (2B) 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).
( 2) Subsection (2A) was inserted by section 11(1)(b) of the 2003 Act.