"(1) A local authority to whom this section applies shall, on being authorised by the Secretary of State, have power to acquire compulsorily any land in their area... (a) if the authority think that the acquisition will facilitate the carrying out of development, re-development or improvement on or in relation to the land, or (b) which is required for a purpose wich is necessary to achieve in the interests of the proper planning of the area in which the land is situated. (1A) but a local authority must not exercise the power under paragraph (a) of subsection (1) unless they think that the development, re-development or improvement is likely to contribute to the achievement of any one or more of the following objects—— (a) the promotion or improvement of the economic well-being of their area; (b) the promotion of improvement of the social well-being of their area; (b) (?) the promotion or improvement of the environmental well-being of their area..."
"(1) The council of any county, county borough, district or London borough may acquire by agreement any land which they require for any purpose for which a local authority may be authorised to acquire land under section 226. (2) The provisions of Part 1 of theCompulsory Purchase Act 1965 (so far as applicable), other than section 4 to 8, section 10 and section 31, shall apply in relation to the acquisition of land under this section."
"I write to make this objection to Sefton MBC Audit of Accounts 2004/2005, specifically those items of accounts of the Housing Market Renewal Initiative (HMRI) relating to expenditure on the voluntary acquisitions programme 2004/2005, on the grounds that certain acquisitions were not properly authorised in law by the Council and may therefore be unlawful."
"Resolved: That, subject to the approval of the Cabinet: (i) The acquisition by agreement of residential property across the south Sefton HMRI area for strategic purposes, linked to market renewal activity, be approved; (ii) The appropriate officers be authorised to enter into negotiationwith the owners of dwellings identified for acquisition with a view to facilitating acquisition by agreement."
"It is a basic principle of public law that a [local authority] can only properly act in law under the statutory provisions governing a particular activity. In this case, therefore, for proper authorisation in law, such a programme of voluntary acquisition under the HMRI scheme for redevelopment, it is necessary in law to call down those discretionary powers and that statutory function contained in the appropriate primary legislation, and to express that function and those powers clearly and precisely in an appropriately formulated resolution. In this case a proper resolution authorising such acquisitions would specify the powers and functions under S227/TCPA 1990."
"Work carried out: In the course of my investigation into the matters raised in your objection I have considered the information set out in your letters, examined relevant Committee, Cabinet and Council reports. As part of our routine audit processes, we have reviewed the expenditure on HMRI transactions, as set out in the Council's statement of accounts for 2004/2005 and supporting records, and tested, on a sample basis, that expenditure was eligible for HMRI funding. We have also satisfied ourselves that the Council's legal department have been closely involved in ensuring the legality of these transactions, including securing specialist legal advice where necessary. We have also discussed your concerns with the Council's legal director and our in-house legal advice team."
"In my view there is no legal requirement for a council to include in its reports and minutes specific reference to the statutory power and function in respect of the matters set out in that report or matter."
"Your response implies there is no requirement to relate actions of a [local authority] to its specified statutory functions and purposes, that a [local authority] can do anything so long as there is something somewhere that indicates such action is possible. Another way of putting it is how does the [Audit Commission] know whether the funding and expenditure is lawful if resolutions do not refer to the precise statutory provision which permits and authorises such expenditure on and for a specific statutory function. How are accounts justified in practice without such reference back to statutory powers. Is it all just an unallocated slush fund and spend what you like."