Section 4: Agreement for exercise by Ministeror strategic highways company of certain functions of local highway authority as respects highway affected by construction, etc. of trunk road.

The Ministeror a strategic highways company, whichever is the highway authority for a trunk road ("the trunk road authority") and a local highway authority may enter into an agreement for providing, in relation to a highway specified in the agreement, being a highway that crosses or enters the route of that trunk road or is or will be otherwise affected by the construction or improvement of that trunk road, that any functions specified in the agreement, being functions of improvement exercisable as respects that highway by the local highway authority, shall be exercisable by the trunk road authority on such terms and subject to such conditions (if any) as may be so specified.

Where under an agreement made under this section any function of a local highway authority is exercisable by the trunk road authority, then, for the purpose of exercising that function the trunk road authority shall have the same powers under this Act (including highway land acquisition powers) as the local highway authority have for that purpose, and in exercising that function and those powers the trunk road authority shall have the like rights and be subject to the like liabilities as that authority.

Where for purposes connected with any function exercisable ... under an agreement made under this section the trunk road authority proposes to construct a new highway, every council (other than the council of a non-metropolitan district) in whose area the proposed highway is situated shall be a party to the agreement and the agreement shall provide for a local highway authority specified in the agreement to become the highway authority for the highway on its completion.

An agreement under this section made between the trunk road authorityand any other highway authority may provide for the payment of contributions—

and may also provide for the determination by arbitration of disputes as to the payment of such contributions.

Any local highway authority who are a party to an agreement made under this section may contribute towards any expenses incurred by thetrunk road authority in executing any works to which the agreement relates.