Section 107(1) of the Local Government and Public Involvement in Health Act 2007 allows the Secretary of State to require the amendment of a draft Local Area Agreement, but does not specify the considerations that might affect such a decision.
The Government Office will be expected to resolve any difficulties earlier in the negotiation, reducing the likelihood that the draft LAA will need to be redrafted. This is emphasised in sections 4.17 to 4.18 of the draft statutory guidance: “Creating Strong, Safe and Prosperous Communities”, available on the CLG website at:
http://www.communities.gov.uk/publications/local government/statutoryguidance