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Part A: Management Statement

1. Definitions

1.1 In this Management Statement:

URA/the Agency means the Urban Regeneration Agency
CNT/the Commission means the Commission for the New Towns
EP means English Partnerships, the merged organisation comprising URA and CNT
the Office/ODPM/the Department means the Office of the Deputy Prime Minister
C&AG/NAO mean the Comptroller & Auditor General and the National Audit Office respectively
the 1981 Act means the New Towns Act 1981 as amended by the New Towns and Urban Development Corporations Act 1985, the New Towns (Amendment) Act 1994 and by various Statutory Instruments
the 1993 Act means the Leasehold Reform, Housing and Urban Development Act 1993, as amended by the Regional Development Agencies Act 1998
He shall be taken as synonymous with he or she.

2. Introduction

2.1 This Management Statement and its associated Financial Memorandum have been drawn up by the Office of the Deputy Prime Minister (ODPM) in consultation with English Partnerships (EP) whose principal offices are at 110 Buckingham Palace Road, London SW1W 9SA.

2.2 Subject to the legislation noted below, the Management Statement sets out the broad framework within which English Partnerships will operate, in particular:

the rules and guidelines relevant to the exercise of EP’s functions, duties and powers;
the conditions under which any public funds are paid to EP;
how EP is to be held to account for its performance.

However, the Management Statement does not in itself convey any legal powers or responsibilities.

2.3 The associated Financial Memorandum sets out in greater detail certain aspects of the financial provisions which EP is required to observe.

2.4 This Management Statement will be reviewed at regular intervals by the ODPM, particularly in the context of any future review of EP’s role and remit.

2.5 English Partnerships, or the ODPM, may propose amendments to this document at any time. Any such proposals by EP will be considered in the light of evolving policy and operational needs, as well as its track record. The guiding principle will be that the extent of flexibility and freedom given to EP will reflect both the quality of its internal controls and its operational needs. The ODPM will determine what changes, if any, are to be incorporated in the document. Legislative provisions will take precedence over any part of the document. Significant variations to the document shall be cleared with the Treasury or Cabinet Office as appropriate. (The definition of “significant” will be determined by ODPM in consultation with the Treasury/Cabinet Office.)

2.6 The Management Statement and Financial Memorandum will be agreed by both the ODPM and English Partnerships.

2.7 Any question regarding the interpretation of the document shall be resolved by ODPM after consultation with EP and, as necessary, with the Treasury and/or the Cabinet Office.

2.8 Copies of this document and any subsequent substantive amendments will be placed in the Libraries of both Houses of Parliament. Copies will also be made available on English Partnerships’ website.

Founding legislation: status

2.9 English Partnerships is a national organisation, founded on the twin statutory bases of the Urban Regeneration Agency (URA) and the Commission for the New Towns (CNT). The Urban Regeneration Agency was set up under section 158 of the Leasehold Reform, Housing and Urban Development Act 1993; the Commission for the New Towns operates under Part II of the New Towns Act 1981. Full details of the statutory basis of each body are set out in Annex A and B to this Statement. Neither the URA nor the CNT carry out their functions on behalf of the Crown.

Classification

2.10 For administrative purposes, both the URA and the CNT are classified as executive non-departmental public bodies (NDPBs). For national accounts purposes, both the URA and CNT are classified to the central government sector. References to English Partnerships, the Urban Regeneration Agency and the Commission for the New Towns include all their subsidiaries and joint ventures that are classified to the public sector for national accounts purposes. If such a subsidiary or joint venture is created, the arrangements between it and EP shall be set out in the normal corporate constitutional documents, such as the Memorandum and Articles of Association. Any additional understandings reached between the company and EP must also be set out in writing (See also Section 4 of the Financial Memorandum.)

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3. Aims, Objectives and Targets

Overall aims and core objectives

3.1. The present remit for English Partnerships was set out on 24 July 2002, when the Deputy Prime Minister announced the conclusion of stage two of the Review of English Partnerships, and further amplified in the document “Sustainable communities: building for the future” which was published by ODPM in February 2003.

3.2 EP is one of the key delivery agents for implementing various programmes described in the document and is expected to achieve this by working closely with other key bodies, particularly the regional development agencies, the Housing Corporation, local authorities and regional housing boards.

3.3 Its principal aims are to:

search out and deliver even more land for housing and sustainable urban development;
help regenerate those places most badly affected by abandonment and decay;
help ensure the effective co-ordination in the delivery of plans for key worker and affordable housing within the wider context of “living communities";
develop its important role as an agency for best practice regeneration and development of brownfield land.

3.4 It will focus on a number of existing and newer initiatives and programmes, including:

The Coalfields and Millennium Communities programmes
Supporting the work of the urban regeneration companies and regional housing boards
Land Stabilisation Programme
The 42 strategic sites and projects identified in July 2002
Creating a new brownfield strategy and creating a register of surplus public sector land
Working with the Housing Market Renewal Pathfinders
Helping to deliver growth in the four designated areas and the wider South East.

3.5 In general, EP’s activity will be characterised by:

the early and active involvement of local communities
the innovative use of its own sites
continuing close and productive relationships with the private sector
adding value through joint ventures
promoting best practice and the development of skills in all it does
high standards of sustainability, design and construction
the way it complements the programmes of RDAs, local authorities, the Housing Corporation and others.

Objectives and key targets

3.6 The Office of the Deputy Prime Minister determines the framework within which English Partnerships’ objectives and targets are set. These shall be agreed through the corporate and business planning process (see Section 5 below), and must be consistent with the ODPM’s Public Service Agreements (PSA).

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4. Responsibilities and Accountability

The Deputy Prime Minister (First Secretary of State)

4.1 The Deputy Prime Minister is accountable to Parliament for the activities and performance of English Partnerships. His responsibilities include:

approving the terms and conditions of Board members;
approving the policy and performance framework within which English Partnerships will operate;
providing information about English Partnerships to Parliament as required;
approving the amount of grant-in-aid and other funds to be paid to English Partnerships, and seeking Parliamentary approval;
carrying out responsibilities specified in the founding legislation including appointments to the Board, approval of terms and conditions of staff, and laying the annual report and accounts before Parliament.

The Accounting Officer of the Office of the Deputy Prime Minister

4.2 The Permanent Secretary, as the Office of the Deputy Prime Minister’s principal Accounting Officer, is responsible for the overall organisation, management and staffing of the ODPM, and for ensuring that there is a high standard of financial management in ODPM as a whole. In addition, he:

designates the chief executive of EP as its Accounting Officer;
is responsible for ensuring that the financial and other management controls applied by the Office to English Partnerships are appropriate and sufficient to safeguard public funds and for ensuring that English Partnerships’ compliance with those controls is effectively monitored. (“Public funds” include not only any funds granted to English Partnerships by Parliament but also any other funds generated by approved activities or falling within the stewardship of English Partnerships);
must be satisfied that the internal controls applied by English Partnerships conform to the requirements of regularity, propriety and good financial management; and that an adequate flow of information is supplied by EP to the ODPM on matters of performance, budgeting, control and risk management, including early sight of EP’s Statement on Internal Control;
is accountable to Parliament for the issue of the grant-in-aid, and for ensuring that the grant-in-aid is within the ambit and the amount of the Request for Resources, and that Parliamentary authority has been sought and given;
may withdraw the accounting officer designation from the chief executive if he believes that the incumbent is no longer suitable for the role.

4.3 The responsibilities of a departmental Accounting Officer are set out in more detail in the annex to Chapter 4 of Government Accounting.

The sponsoring team in the Office of the Deputy Prime Minister

4.4 Within the Office of the Deputy Prime Minister, Regeneration Sponsorship Division provides the sponsoring team for English Partnerships. The team is the primary source of advice to the Deputy Prime Minister on the discharge of his responsibilities in respect of English Partnerships, and the primary point of contact for English Partnerships in dealing with the Office of the Deputy Prime Minister.

4.5 The main functions of the sponsoring team are:

to advise the Deputy Prime Minister on an appropriate budget for English Partnerships within the Office of the Deputy Prime Minister’s overall public expenditure provision, and on appropriate performance targets for English Partnerships;
to advise the Deputy Prime Minister, at a strategic level, on how well English Partnerships is achieving its current objectives and whether it is delivering value for money;
to ensure that effective processes, including risk assessment, are used to produce plans and to set objectives and targets;
to monitor and review English Partnerships’ performance against targets and against its total financial provision; and to act on any significant problems in EP, whether financial or otherwise, in a timely fashion;
to communicate and advise on relevant Government policy to English Partnerships, ensure EP are aware of opportunities to further the implementation of government policies in accordance with its overall aim and objectives, and advise on the interpretation of that policy; and to issue specific guidance to English Partnerships as necessary.

The Chairman of English Partnerships

4.6 The Chairman is appointed by the Deputy Prime Minister normally for a three year period. The appointment is made in line with the Code of Practice issued by the Commissioner for Public Appointments.

4.7 The Chairman is responsible to the Deputy Prime Minister for ensuring that English Partnerships’ policies are consistent with his and that English Partnerships’ affairs are conducted with probity.

4.8 The Chairman has a particular responsibility for providing effective strategic leadership on the following matters:

formulating the Board’s strategy for discharging its statutory duties;
encouraging high standards of propriety and promoting the efficient and effective use of staff and other resources throughout English Partnerships;
ensuring that the Board, in reaching decisions, takes proper account of guidance provided by the Deputy Prime Minister or the Office;
representing the views of the Board to the general public; and
providing an assessment of performance of individual Board members when they are being considered for re-appointment to the Board.

4.9 The Chairman shall ensure that all members of the Board, when taking up office, are fully briefed on the terms of their appointment and on their duties, rights and responsibilities and receive appropriate induction training; and, when Board vacancies arise, shall advise the Deputy Prime Minister of the needs of English Partnerships with a view to ensuring a proper balance of professional and financial expertise.

4.10 The Chairman shall ensure that a Code of Practice for Board Members is in place based on the model “Guidance on Codes of Practice for Board Members of Public Bodies” produced by the Cabinet Office. The Code shall commit the Chairman and other Board Members to “The Seven Principles of Public Life”, and shall include a requirement for a comprehensive and publicly available register of Board Members’ interests.

4.11 Communications between the Board and the Deputy Prime Minister shall normally be through the Chairman.

The English Partnerships’ Board

4.12 The Board members are appointed in a similar manner to the Chairman.

4.13 Board members have corporate responsibility for ensuring that English Partnerships fulfils the overall aim and objectives set out in the legislation and the priorities determined by the Deputy Prime Minister, and that it complies with any statutory or administrative requirements for the use of public funds. Other important responsibilities of Board members are:

ensuring that high standards of corporate governance are observed at all times;
establishing the overall strategic direction of English Partnerships within the policy and resources framework agreed with ODPM;
ensuring that the Board operates within the limits of its statutory authority and any delegated authority agreed with its sponsor department, and in accordance with any other conditions relating to the use of public funds;
ensuring that, in reaching decisions, the Board takes into account guidance issued by the sponsor department;
ensuring that ODPM are made aware of any changes which might impact on the strategic direction or attainability of targets;
appointing, with the Deputy Prime Minister’s approval, English Partnerships’ Chief Executive;

4.14 Individual Board members must also be aware of their wider responsibility as members - namely, to:

comply at all times with the Code of Practice that is adopted by English Partnerships and with the rules relating to the use of public funds and to conflicts of interest;
act in good faith and in the best interests of English Partnerships;
not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations; and
comply with the Board’s rules on the acceptance of gifts and hospitality and of business appointments.

The Chief Executive's role as Accounting Officer

4.15 The Chief Executive of EP is normally designated as the organisation’s Accounting Officer by the Accounting Officer of the ODPM.

4.16 As EP’s Accounting Officer the Chief Executive is personally responsible for safeguarding the public funds for which he has charge; for ensuring propriety and regularity in the handling of those public funds; and for the day-to-day operations and management of English Partnerships. He shall act in accordance with the terms of this document and with the instructions and guidance in Government Accounting (particularly chapter 8 thereof) and other instructions and guidance issued from time to time by the Office of the Deputy Prime Minister, the Treasury and the Cabinet Office - in particular, the Treasury documents “The Responsibilities of an NDPB Accounting Officer” and “Regularity and Propriety”, both of which the Chief Executive will receive on appointment. The Financial Memorandum refers to other key guidance.

4.17 As Accounting Officer of English Partnerships, the Chief Executive shall, in particular:

establish, in agreement with the ODPM, EP’s corporate and business plans, and within that framework inform the ODPM of EP’s progress in helping to achieve Ministerial policy objectives and in demonstrating how resources are being used to achieve those objectives;
advise the Board on EP’s performance compared with its aims and objectives;
advise the Board on the discharge of its responsibilities as set out in this document, in the founding legislation and in any other relevant instructions and guidance that may be issued from time to time;
ensure that all public funding made available to English Partnerships and any approved income or other receipts is used for the purpose intended by Parliament, and that such moneys, together with English Partnerships’ assets, equipment and staff, are used economically, efficiently and effectively;
ensure that timely monitoring information and accurate forecasts are provided to the Office of the Deputy Prime Minister; that corrective action is taken to avoid overspends; and that the ODPM is notified promptly if overspends, or underspends, are likely; and that any significant problems, whether financial or otherwise, and whether detected by internal audit or by other means, are notified to the department in a timely fashion;
ensure that financial considerations are taken fully into account by the Board at all stages in reaching and executing its decisions, and that standard financial appraisal techniques are followed as far as this is practical;
ensure that a system of risk management is maintained to inform decisions on financial and operational planning and to assist in achieving objectives and targets;
ensure that adequate internal management and financial controls are maintained by English Partnerships, including effective measures against fraud and theft;
maintain a comprehensive system of internal delegated authorities which are notified to all staff, together with a system for regularly reviewing compliance with these delegations;
ensure that appropriate personnel management policies are maintained;
sign the accounts and be responsible for ensuring that proper records are kept relating to the accounts and that the accounts are properly prepared and presented in accordance with any directions issued by the Office of the Deputy Prime Minister;
sign a Statement of Accounting Officer’s responsibilities for inclusion in the annual report and accounts;
sign a Statement on Internal Control regarding EP’s system of internal control for inclusion in the annual report and accounts;
take action as set out in paragraphs 14-18 of the NDPB Accounting Officer Memorandum if the Board, or its Chairman, is contemplating a course of action involving a transaction which the Chief Executive considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration or efficiency or effectiveness;
give evidence, normally with the Accounting Officer of the ODPM, when summoned before the Committee of Public Accounts on the use and stewardship of public funds by EP;
ensure that effective procedures for handling complaints about EP are established and made widely known within the organisation.

The Chief Executive's role as Consolidation Officer

4.18 For the purposes of Whole of Government Accounts the Chief Executive will normally be designated as EP’s Consolidation Officer by the Treasury.

4.19 As English Partnership’s Consolidation Officer the Chief Executive shall be personally responsible for preparing the consolidation information that sets out its financial results and position, arranging for its audit, and for sending the information and the audit report to the Principal Consolidation Officer nominated by the Treasury.

4.20 As Consolidation Officer the Chief Executive shall comply with the requirements of the Consolidation Officer Memorandum and shall, in particular:

ensure that English Partnerships has in place and maintains sets of accounting records that will provide the necessary information for the consolidation process;
prepare the consolidation information (including the relevant accounting and disclosure requirements and all relevant consolidation adjustments) in accordance with the consolidation instructions and directions [“Dear Consolidation Officer” (DCO) and “Dear Consolidation Manager” (DCM) letters] issued by the Treasury on the form, manner and timetable for delivery of such information.

Delegation of duties

4.21 The Chief Executive may delegate the day-to-day administration of his Accounting Officer and Consolidation Officer responsibilities to other employees in English Partnerships. However, he shall not assign absolutely to any other person any of the responsibilities set out in this document. In particular, he may not delegate the duty of signing the annual accounts; this must remain the personal responsibility of the Accounting Officer.

The Chief Executive's role as Principal Officer for Ombudsman cases

4.22 The Chief Executive is the Principal Officer for handling cases involving the Parliamentary Commissioner for Administration. As Principal Officer he shall inform the Permanent Secretary of the ODPM of any complaints about English Partnerships accepted by the Ombudsman for investigation, and about EP’s proposed response to any subsequent recommendations from the Parliamentary Ombudsman.

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5. Planning, Budgeting and Control

The corporate plan

5.1 Consistent with the timetable for public spending reviews, English Partnerships shall normally submit to the Office of the Deputy Prime Minister each year a draft corporate plan covering the three years ahead. EP must agree with the Office of the Deputy Prime Minister the issues to be addressed in the plan and the timetable for its preparation.

5.2 The plan shall reflect English Partnerships’ statutory duties and, within those duties, the priorities set from time to time by the Deputy Prime Minister. In particular, the plan shall demonstrate how English Partnerships contributes to the achievement of the Office of the Deputy Prime Minister’s Public Service Agreement targets.

5.3 The corporate plan shall set out:

English Partnerships’ key objectives and associated key performance targets for the three forward years, and its strategy for achieving those objectives;
a review of English Partnerships’ performance in the preceding financial year together with comparable outturns for the previous 2 years, and an estimate of performance in the current year;
alternative scenarios to take account of factors which may significantly affect the execution of the plan but which cannot be accurately forecast;
other matters as agreed between the Office of the Deputy Prime Minister and English Partnerships.

5.4 The main elements of the plan - including the key performance targets – shall be agreed between the Office of the Deputy Prime Minister and English Partnerships in the light of the ODPM’s decisions on policy and resources taken in the context of the Government’s wider public expenditure plans and decisions.

5.5 In reaching annual decisions on EP’s rolling corporate plan and in monitoring progress, ODPM will normally aim to give EP greater planning certainty by observing the principles set out by HM Treasury paragraph concerning three year planning and end year flexibility (EYF). These principles are summarised in the Financial Memorandum. However, the availability of EYF is subject to the overriding needs of the ODPM.

The business / delivery plan

5.6 The first year of the corporate plan, amplified as necessary, shall form the business or delivery plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead, and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the ODPM.

Publication of plans

5.7 Subject to any commercial considerations, a summary of the corporate and business plans shall be published and be made available on EP’s website.

Performance against key targets

5.8 English Partnerships shall operate management information and accounting systems which enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in its agreed corporate and business plans.

5.9 EP’s performance in helping to deliver Ministers’ policies, including the achievement of key objectives, shall be reported to the Office of the Deputy Prime Minister on a regular basis. Performance will be formally reviewed regularly by ODPM officials. The Deputy Prime Minister and other Ministers will meet the Board from time to time to discuss English Partnerships’ performance, its current and future activities and any policy developments relevant to those activities.

5.10 English Partnerships shall take the initiative in informing ODPM of changes in external conditions which make the achievement of objectives more or less difficult, or which may require a change to the budget or objectives set out in the corporate or business plans.

5.11 English Partnerships’ performance against key targets shall be reported in its annual report and accounts (see Section 6).

Budgeting procedures

5.12 English Partnerships’ budgeting procedures are set out in the Financial Memorandum.

Internal audit

5.13 English Partnerships shall establish and maintain arrangements for internal audit in accordance with the Treasury's Government Internal Audit Standards. EP shall consult the ODPM to ensure that the latter is satisfied with the competence and qualifications of the Head of Internal Audit (or the nearest equivalent post) and the requirements for approving the appointment in accordance with Government Internal Audit Standards (GIAS)

5.14 EP shall set up an audit committee as a committee of its Board in accordance with the Cabinet Office's Guidance on Codes of Practice for Public Bodies and the Treasury's Audit Committee guidance.

5.15 EP shall arrange for periodic quality reviews of its internal audit in accordance with the GIAS. The ODPM shall consider whether it can rely on these reviews to provide assurance on the quality of internal audit. However, the ODPM reserves a right of access to carry out independent reviews of internal audit in EP.

5.16 The ODPM’s Internal Audit Service will also have a right of access to all documents prepared by EP’s internal auditor, including where the service is contracted out. The audit strategy, periodic audit plans and annual audit report, including EP’s Head of Internal Audit’s opinion on risk management, control and governance shall be forwarded as soon as possible to the sponsoring team who shall consult the Head of Internal Audit as appropriate. The sponsoring team also has the right to call for selected individual audit reports.

5.17 In addition, EP shall forward to the ODPM an annual report on fraud and theft suffered by EP; notify any unusual or major incidents as soon as possible; and notify any changes to internal audit’s terms of reference or the audit committee’s terms of reference.

Departmental access to English Partnerships

5.18 In addition to the right of access referred to in paragraph 5.16 above, the ODPM shall have a right of access to all EP’s records and personnel for purposes such as sponsorship audits, operational investigations and other purposes that it may from time to time require.

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6. External Accountability

The annual report and accounts

6.1 After the end of each financial year English Partnerships shall publish an annual report of its activities, together with its audited annual accounts (separately for the URA and CNT).

6.2 The report and accounts shall comply with the Treasury document “Executive Non-Departmental Public Bodies: Annual Reports and Accounts Guidance”. The report should also conform to the recommendations of the Cabinet Office's guidance on annual reports: “Next Steps Agencies, Trading Funds and Non-Departmental Public Bodies - Guidance on Annual Reports” which was issued in January 2003. The accounts must be prepared in accordance with the relevant statutes and the specific Accounts Direction issued by the Office of the Deputy Prime Minister.

6.3 The report and accounts shall outline English Partnerships’ main activities and performance during the previous financial year and set out its forward plans in summary form.

6.4 More specifically, the Annual Report should include:

a statement by the Chairman
a report by the Chief Executive
a detailed report on the organisation's activities, including those any corporate bodies under EP’s control
a Financial Summary
the specification of performance targets and the extent to which these have been met
Open Government information - to include, for example, the number of requests received for information
details of individual sponsorship amounts of more than £5,000.

6.5 A draft of the report must be submitted to the sponsor team in ODPM in sufficient time before the proposed publication date to allow the team to comment on it.

6.6 The report and accounts will be laid before Parliament by the ODPM normally before the start of the summer recess. Neither the report and accounts nor information taken from them must be made public before then. The report and accounts must subsequently be made available on EP’s website.

External audit

6.7 English Partnerships’ accounts are audited by auditors appointed by the Deputy Prime Minister. The ODPM will follow the guidance given in DAO(GEN)13/99 when appointing auditors for English Partnerships. Although the final decision rests with the Deputy Prime Minister, he will consult English Partnerships during the appointment process. English Partnerships shall submit the audited accounts to ODPM. The accounts shall be open to the inspection of the Comptroller and Auditor General (C&AG).

6.8 This arrangement is subject to change as a consequence of orders made under the Government Resources and Accounts Act 2000. From 2004-05, the external audit will be undertaken by the NAO.

6.9 Where appropriate, the Office of the Deputy Prime Minister will commission from the auditor additional reports providing assurance about English Partnerships’ financial systems. English Partnerships shall facilitate the provision of such reports.

Value for Money examinations

6.10 The C&AG may carry out examinations into the economy, efficiency and effectiveness with which English Partnerships has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under the National Audit Act 1983. English Partnerships shall provide, in conditions to grants and contracts, for the C&AG to have access to documents held by grant recipients and contractors as may be required for such examinations; and shall use its best endeavours to secure access for the C&AG to any other documents required by him which are held by other bodies.

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7. Staff Management

General

7.1 Within the arrangements approved by ODPM, English Partnerships shall have responsibility for the recruitment, retention and motivation of its staff. To this end English Partnerships shall ensure that:

its rules for the recruitment and management of staff provide for appointment and advance on merit on the basis of equal opportunities for all applicants and staff, regardless of race, colour, ethnic or national origin, age, religion, gender, marital status, disability or sexual orientation. (EP is subject to the requirements of the Race Relations (Amendment) Act 2000);
the level and structure of its staffing, including gradings and numbers of staff, is appropriate to its functions and the requirements of efficiency, effectiveness and economy;
the performance of staff at all levels is satisfactorily appraised and its performance measurement systems are reviewed from time to time;
its staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve English Partnerships’ objectives;
proper consultation with staff takes place on key issues affecting them;
adequate grievance and disciplinary procedures are in place;
a code of conduct for staff is in place based on the Cabinet Office documentModel Code for Staff of Executive Non-Departmental Public Bodies.

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8. Reviewing the role of English Partnerships

8.1 Like all other NDPBs, EP will be subject to a review periodically in accordance with the business needs of both the ODPM and EP itself.

8.2 The last review was concluded in July 2002. The next anticipated review is expected to take place no later than the financial year 2007-2008.

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Annex A

Statutory Authority and Purpose

The Urban Regeneration Agency (URA)

1. The Urban Regeneration Agency (“the Agency”) was established under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993.

2. The object of the URA is to secure the regeneration of land in England:

a) which is vacant or unused;

b) which is situated in an urban area and which is under-used or ineffectively used;

c) which is contaminated, derelict, neglected or unsightly; or

d) which is likely to become derelict, neglected or unsightly by reason of actual or apprehended collapse of the surface as the result of the carrying out of mining (other than coal mining) which has ceased to be carried out.

3. The URA also has the object of securing the development of land in England which it determines to be suitable for development:

a) having regard to guidance given it by the Secretary of State;

b) acting in accordance with directions given by the Secretary of State;

c) with the consent of the Secretary of State,

4. The URA achieves its objects by:

a) bringing land and buildings into effective use;

b) developing, or encouraging the development of, existing and new industry and commerce;

c) creating an attractive and safe environment;

d) facilitating the provision of housing and providing, or facilitating the provision of, social and recreational facilities.

5. In respect of these objects, the URA has general powers to:

a) acquire, hold, manage, reclaim, improve and dispose of land, plant, machinery, equipment and other property;

b) carry out the development or redevelopment of land, including the conversion or demolition of existing buildings;

c) carry out building and other operations;

d) provide means of access, services or other facilities for land;

e) seek to ensure the provision of water, electricity, gas, sewerage and other services;

f) carry on any business or undertaking for the purposes of its objects;

g) with the consent of the Secretary of State, form, or acquire interests in, bodies corporate;

h) act with other persons, whether in partnership or otherwise;

i) give financial assistance to other persons;

j) act as agent for other persons;

k) provide advisory or other services and facilities; and

l) generally do anything necessary or expedient for the purposes of its objects or for purposes incidental to those purposes.

6. The Act prohibits the URA from:

a) providing housing, otherwise than by acquiring existing housing accommodation and making it available on a temporary basis for purposes incidental to its purposes;

b) acquiring an interest in a body corporate which at the time of the acquisition is carrying on a trade or business, if the effect of the acquisition would be to make the body corporate a subsidiary of the URA;

c) except with the consent of the Secretary of State, disposing of any land otherwise than for the best consideration which can reasonably be obtained.

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Annex B

Statutory Authority and Purpose

The Commission for the New Towns (CNT)

1. The Commission for the New Towns (CNT) operates under the New Towns Act 1981.

2. Its statutory purposes are:

a) to take over and, with a view to its eventual disposal, to hold, manage and turn to account the property of New Town and Urban Development Corporations and Housing Action Trusts transferred to it; and

b) as soon as it considers it expedient to do so, to dispose of the property so transferred and any other property held by it.

3. In doing so, CNT has to have due regard to the following considerations:

a) until disposal, the maintenance and enhancement of the value of the land held and the return obtained from it, and

b) the convenience and welfare of persons residing, working or carrying on business there.

4. The CNT has powers in relation to the former new town and urban development areas. These include the power:

a) to acquire, hold, manage and turn to account land or any interest in or rights over such land;

b) to make contributions towards the cost of providing:

(i) roads;
(ii) water supplies;
(iii) gas or electricity services;
(iv) sewerage or sewage disposal services

5. In the former new town areas it also has the power:

a) to make contributions towards the cost of providing amenities for the town;

b) to promote or assist by any means, and in particular by making advances towards the cost of purchasing land, or of erecting, extending, improving or adapting buildings or works, the setting up or extension of businesses in the town.

6. The Act prohibits the CNT from disposing of property by way of gift or for a consideration which is less than the best reasonably obtainable, except under the general or special authority of the Secretary of State.

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Issued by ODPM on 16 March 2004.

Last updated: 10 July 2008

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