Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether his Department is able to intervene in a shadow authority.

During the transition period, new unitary authorities differ from local authorities in having only a narrowly defined set of responsibilities and functions allocated to them through the relevant Structural Change Order for their area. These functions are focussed solely on preparation for reorganisation, rather than service delivery for residents. New unitary authorities in the transition period are therefore bound by their legal obligations under the Structural Change Order, rather than the more general Best Value Duty applied to local authorities.

In the event that new unitary authorities encounter difficulties in meeting their legal responsibilities during the transition period, the Department will engage locally to consider what support may be appropriate. As a backstop, statutory provision exists for the appointment of an arbitrator where relevant authorities cannot reach agreement before vesting day, including in relation to the disaggregation of property, income, rights, liabilities and expenses, as well as financial reserves.