Local spending reports: rights of principal councils and representatives of local persons

‘(1) After considering the information contained in a local spending report issued pursuant to section 4, a principal council may make recommendations to the Secretary of State as to—

(a) whether that council could decide how any part of the money specified in that report may be spent; and

(b) any consequential delegation of functions to the council.

(2) Where a principal council proposes to make recommendations pursuant to subsection (1), it must—

(a) refer the matter to any panels under section 3 for consideration; or

(b) establish such panels if they do not exist and refer the matter to them for consideration.

(3) A principal council and any panels acting pursuant to this section shall exercise their functions to promote the sustainability of local communities.

(4) Within three months of receiving recommendations made by a principal council under subsection (1), the Secretary of State shall either adopt or reject each of the recommendations, and in either case shall give reasons for his decision.

(5) At least once in each calendar year the Secretary of State shall publish a report providing details of all decisions taken pursuant to subsection (4) above.’.