Section 42B(8)

Where the percentage of activities intended to be carried out other than for the purposes of the contracting authorities’ public functions, calculated in accordance with paragraphs (2) to (7), does not satisfy the requirement in paragraph 3(2)(b) of Schedule 2 to the PA 2023, the percentage of activities may be calculated by taking, over the relevant period, any of the following that does satisfy that requirement— costs incurred in respect of the horizontal arrangement’s activities for purposes other than the authorities’ public functions as a percentage of its total costs; time spent in respect of the horizontal arrangement’s activities for purposes other than the authorities’ public functions as a percentage of its total time; the value of goods, services or works supplied in respect of the horizontal arrangement’s activities for purposes other than the authorities’ public functions as a percentage of the total value of goods, services or works supplied in respect of the activities.

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Source: legislation.gov.uk · retrieved 2026-09-04