(1)The Secretary of State may make an order establishing an EPB for an area only if, having regard to a scheme prepared and published under section 98, the Secretary of State considers that to do so is likely to improve—
(a)the exercise of statutory functions relating to economic development and regeneration in the area, and
(b)economic conditions in the area.
(2)Before making the order, the Secretary of State must consult—
(a)each appropriate authority, and
(b)such other persons (if any) as the Secretary of State considers appropriate.
(3)For the purposes of this section—
(a)a county council is an appropriate authority if the area of the county council, or part of that area, is within the area for which the EPB is to be established;
(b)a district council is an appropriate authority if the area of the district council is within the area for which the EPB is to be established.
(4)In making the order, the Secretary of State must have regard to the need—
(a)to reflect the identities and interests of local communities, and
(b)to secure effective and convenient local government.