Local Government Finance Bill (HC Bill 265)

(3) This paragraph does not prevent—

(a) the local government finance report for the year, or an
amending report under paragraph 13 in relation to that
report, from also making provision in relation to the
5individual authorities in the pool,

(b) the Secretary of State from making calculations based on
the local government finance report, or any such
amending report, in relation to each of those authorities, or

(c) the Secretary of State from notifying the results of the
10calculations to each of those authorities.

(4) But paragraphs 12 and 15 (payments following reports) do not
apply in relation to such calculations.

Effect of designation in relation to Part 7

35 (1) Regulations under paragraph 20, 23 or 26 (levy payments, safety
15net payments and safety net payments on account) may provide
for a pool of authorities to be treated as a relevant authority for the
purposes of the regulations.

(2) Such regulations may, in particular, make provision—

(a) that is similar to provision which may be made under the
20paragraph in question apart from sub-paragraph (1)
above, or

(b) that applies such provision with modifications.

(3) Where regulations under paragraph 20 apply to a pool of
authorities for a year, paragraphs 21 and 22 (calculation and
25making of levy payments) apply in relation to the authorities and
the year as if references in them to a relevant authority were to the
pool.

(4) Where regulations under paragraph 23 apply to a pool of
authorities for a year, paragraphs 24 and 25 (calculation and
30making of safety net payments) apply in relation to the authorities
and the year as if references in them to a relevant authority were
to the pool.

(5) Where a designation of a pool of authorities has effect for a year,
paragraph 28 (distribution of remaining balance) applies in
35relation to the pool as if—

(a) the authorities in the pool were not relevant authorities,
but

(b) the pool were itself a relevant authority.

(6) A determination under paragraph 28(1) may treat a pool of
40authorities as a single relevant authority for the purposes of that
paragraph.

(7) This paragraph does not prevent—

(a) regulations under paragraph 20, 23 or 26, or a local
government finance report containing provision under
45paragraph 28, from also making provision in relation to the
individual authorities in a pool,

(b) the Secretary of State from making calculations—

(i) under paragraph 21 or 24 based on such
regulations, or

(ii) under paragraph 28(4) based on such a local
government finance report,

5in relation to each of those authorities, or

(c) the Secretary of State from notifying the results of the
calculations to each of those authorities.

(8) But paragraphs 22, 25 and 28(7) (payments following calculations)
do not apply in relation to such calculations.

10Further provisions about effect of designation

36 (1) A requirement under Part 5 or 7 of this Schedule in its application
by virtue of paragraph 34 or 35 to notify a pool of authorities of
any matter is a requirement to notify each authority in the pool of
that matter.

(2) 15Where by virtue of either of those paragraphs a pool of authorities
is required to make a payment to the Secretary of State, each
authority in the pool is jointly and severally liable to make that
payment.

(3) Where by virtue of either of those paragraphs the Secretary of
20State is required to make a payment to a pool of authorities, the
payment is to be made to the lead authority appointed in
accordance with conditions under paragraph 33(1).

Part 10 Designation of areas and classes of hereditament

25Designation of areas

37 (1) The Secretary of State may by regulations—

(a) designate one or more areas in England (a “designated
area”);

(b) provide for the calculation in accordance with the
30regulations, for each year for which the designation has
effect and in relation to each billing authority all or part of
whose area falls within a designated area, of the amount
mentioned in sub-paragraph (2);

(c) provide for the calculation of a proportion of that amount
35in accordance with the regulations;

(d) provide for that amount or that proportion to be
disregarded for the purposes of calculations under any of
the following provisions in its application to the authority
for that year—

(i) 40paragraph 6 (payments in respect of the central
share);

(ii) regulations under paragraph 7 (administrative
arrangements for payments in respect of the central
share);

(iii) regulations under paragraph 8 (payments by
billing authorities to major precepting authorities);

(iv) regulations under paragraph 9 (administrative
arrangements for payments by billing authorities
5to major precepting authorities);

(v) paragraph 11 (calculations following local
government finance report);

(vi) paragraph 14 (calculations following amending
report);

(vii) 10paragraph 21 (calculations of levy payments);

(viii) paragraph 24 (calculations of safety net payments);

(ix) regulations under paragraph 26 (calculation of
payments on account);

(x) paragraph 28 (calculations relating to distribution
15of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b)
is the total amount which, if the authority acted diligently, would
be payable to it for the year under section 43 or 45 in respect of the
hereditaments within the designated area.

(3) 20The regulations may provide for that amount, or any proportion
calculated under sub-paragraph (1)(c), to be adjusted in
accordance with the regulations (and references in this paragraph
to that amount or proportion include the amount or proportion as
adjusted in accordance with such provision).

(4) 25The regulations may, in particular, provide for adjustments to that
amount or that proportion by reference to changes affecting a
calculation under regulations under this paragraph for an earlier
year but not taken into account in that calculation.

(5) The regulations must—

(a) 30specify the date on which the designation takes effect,
which must be the first day of a year, or

(b) provide that the designation is to take effect on the first day
of the first year after specified conditions have been met.

(6) Conditions under sub-paragraph (5)(b) may require compliance
35with specifications or requirements contained in a document of a
specified kind.

(7) If the regulations make provision under sub-paragraph (5)(b),
they must provide that they will cease to have effect at the end of
a specified period unless the conditions are met by the end of that
40period.

(8) The regulations may specify the years for which the designation
has effect.

(9) If the regulations contain provision under sub-paragraph (8)—

(a) amendments within sub-paragraph (10) may not be made
45to the regulations unless (in the case of amendments
within paragraph (a), (b) or (c) of that sub-paragraph) the
amendments are expressed to come into force after the end
of that period, and

(b) the regulations may not be revoked unless the revocation
is expressed to come into force after the end of that period.

(10) The amendments mentioned in sub-paragraph (9)(a) are those
which have the effect of—

(a) 5altering the boundaries of a designated area,

(b) where provision made under paragraph (d) of sub-
paragraph (1) has the effect that the amount referred to in
that paragraph is to be disregarded, providing for a
proportion of that amount to be disregarded,

(c) 10where provision made under that paragraph has the effect
that a proportion is to be disregarded, reducing that
proportion, or

(d) reducing the period for which the designation has effect.

(11) Regulations under this paragraph must specify each area
15designated by the regulations by means of a plan or map (whether
or not each area is specified by any other means).

(12) An area may be designated by regulations under this paragraph
by reference to such factors as the Secretary of State thinks fit.

(13) The consent of the Treasury is required to regulations under this
20paragraph.

(14) In this paragraph “specified” means specified in the regulations.

Designation of classes of hereditament

38 (1) The Secretary of State may by regulations—

(a) designate one or more classes of hereditaments in England
25(a “designated class”);

(b) provide for the calculation in accordance with the
regulations, for each year for which the designation has
effect and in relation to each billing authority whose area
includes hereditaments within the designated class, of the
30amount mentioned in sub-paragraph (2);

(c) provide for the calculation of a proportion of that amount
in accordance with the regulations;

(d) provide for that amount or that proportion to be
disregarded for the purposes of calculations under any of
35the following provisions in its application to the authority
for that year—

(i) paragraph 6 (payments in respect of the central
share);

(ii) regulations under paragraph 7 (administrative
40arrangements for payments in respect of the central
share);

(iii) regulations under paragraph 8 (payments by
billing authorities to major precepting authorities);

(iv) regulations under paragraph 9 (administrative
45arrangements for payments by billing authorities
to major precepting authorities);

(v) paragraph 11 (calculations following local
government finance report);

(vi) paragraph 14 (calculations following amending
report);

(vii) paragraph 21 (calculations of levy payments);

(viii) paragraph 24 (calculations of safety net payments);

(ix) 5regulations under paragraph 26 (calculation of
payments on account);

(x) paragraph 28 (calculations relating to distribution
of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b)
10is the total amount which, if the authority acted diligently, would
be payable to it for the year under section 43 or 45 in respect of the
hereditaments within the designated class.

(3) The regulations may provide for that amount, or any proportion
calculated under sub-paragraph (1)(c), to be adjusted in
15accordance with the regulations (and references in this paragraph
to that amount or proportion include the amount or proportion as
adjusted in accordance with such provision).

(4) The regulations may, in particular, provide for adjustments to that
amount or that proportion by reference to changes affecting a
20calculation under regulations under this paragraph for an earlier
year but not taken into account in that calculation.

(5) The regulations may include provision imposing duties or
conferring powers on valuation officers (whether as regards
determinations, certificates or otherwise) for the purpose of the
25calculation referred to in sub-paragraph (1)(c).

(6) The regulations—

(a) must specify the date on which the designation takes effect
(which must be at the beginning of a year), and

(b) may specify the years for which the designation has effect.

(7) 30A class may be designated by regulations under this paragraph by
reference to such factors as the Secretary of State thinks fit.

(8) Before making regulations under this paragraph the Secretary of
State must consult such persons as the Secretary of State thinks fit.

(9) The fact that this paragraph was not in force when consultation in
35relation to proposed regulations under it took place is to be
disregarded in determining whether there has been compliance
with sub-paragraph (8).

(10) The consent of the Treasury is required to regulations under this
paragraph.

40Payments to relevant authorities

39 (1) Regulations under paragraph 37 or 38 may make provision for a
billing authority to make a payment for a year to a relevant
authority of an amount equal to the whole or part of the amount
or proportion that, in relation to the billing authority and the year,
45is to be disregarded for the purposes of the calculations mentioned
in paragraph 37(1)(d) or 38(1)(d) (as the case may be)

(2) Sub-paragraph (3) applies where the regulations include
provision for payments to be made in accordance with sub-
paragraph (1) to two or more relevant authorities.

(3) The regulations may include provision for imposing duties or
5conferring powers on valuation officers (whether as regards
determinations, certificates or otherwise) for the purpose of
arriving at the amounts of those payments.

(4) The regulations may make provision about the administration of
payments to relevant authorities under the regulations.

(5) 10The regulations may, in particular, make provision in relation to
payments to relevant authorities of the same kind as the provision
that may be made under sub-paragraph (2) of paragraph 9 in
relation to payments to major precepting authorities to which that
sub-paragraph applies.

15Part 11 Supplementary

Calculations and supply of information by relevant authorities

40 (1) The Secretary of State may, for the purposes of any provision of or
made under this Schedule, direct a relevant authority to make
20calculations, or to supply information to the Secretary of State, in
accordance with the direction.

(2) The direction may require the calculations to be made, or the
information to be supplied, before such time as is specified in the
direction.

(3) 25The direction may require the calculations or information to be
audited in accordance with the direction.

(4) If a relevant authority does not comply with a direction under this
paragraph, the Secretary of State may make the calculations that
the Secretary of State thinks would have been made, or make
30assumptions as to the information that would have been supplied,
by the authority if it had complied with the direction.

(5) If the Secretary of State proceeds under sub-paragraph (4), the
Secretary of State must notify the authority—

(a) of that fact, and

(b) 35of the calculations or assumptions that the Secretary of
State has made.

(6) If any calculation or information certified by an audit in
accordance with a direction under this paragraph does not match
that made or supplied by the authority in question, the Secretary
40of State may use the certified calculation or information.

(7) If the Secretary of State proceeds under sub-paragraph (6), the
Secretary of State must notify the authority of that fact.

(8) For the purposes of any provision made by or under Part 5 or 7 of
this Schedule that applies to pools of authorities, this paragraph

has effect as if references to a relevant authority included a
reference to such a pool.

(9) Where sub-paragraph (5) or (7) applies to a pool of authorities by
virtue of sub-paragraph (8), the Secretary of State must notify each
5relevant authority in the pool of the matters in question.

Interpretation of Schedule

41 In this Schedule—

• “actual rating income”, in relation to a billing authority, has
  the meaning given by paragraph 30(4)(b);

• 10“basis of calculation” has the meaning given by paragraph
  10(1);

• “the central share” has the meaning given by paragraph 4;

• “deemed rating income”, in relation to a billing authority, has
  the meaning given by paragraph 30(4)(a);

• 15“local government finance report” has the meaning given by
  paragraph 5(1);

• “the local share” has the meaning given by paragraph 4;

• “levy account” has the meaning given by paragraph 17(1);

• “levy payment” has the meaning given by paragraph 20(1);

• 20“main non-domestic rating account” has the meaning given
  by paragraph 1(1);

• a “pool of authorities” means two or more relevant
  authorities designated as a pool of authorities under
  paragraph 32;

• 25“relevant authority” means—

  (a)

  a billing authority in England, or

  (b)

  a major precepting authority in England;

• “safety net payment” has the meaning given by paragraph
  23(1);

• 30“year” means a chargeable financial year.”

Section 2

SCHEDULE 2 Amendment of provisions about revenue support grant

1 Chapter 2 of Part 5 of the LGFA 1988 (revenue support grant: England) is
amended as follows.

2 (1) 35Section 78 (revenue support grant) is amended as follows.

(2) For subsection (1) (duty to pay grant) substitute—

“(1) The Secretary of State may pay a grant (to be called revenue support
grant) in accordance with this Chapter for a chargeable financial
year—

(a) 40to receiving authorities,

(b) to specified bodies, or

(c) to both.”

(3) In subsection (2) (duty to make determination about revenue support grant
for each chargeable financial year), after “year” insert “for which revenue
support grant is to be paid”.

(4) In subsection (3) (content of determination)—

(a) 5after paragraph (a) insert—

“(aa) whether the Secretary of State proposes to pay grant
to receiving authorities,”,

(b) at the beginning of paragraph (b) insert “if so,”,

(c) after paragraph (b) (and before the “and” at the end of that
10paragraph) insert—

“(ba) whether the Secretary of State proposes to pay grant
to specified bodies,”, and

(d) at the beginning of paragraph (c) insert “if so,”.

3 (1) Section 78A (local government finance reports) is amended as follows.

(2) 15For the heading substitute “Requirement to specify determination in local
government finance report”.

(3) In subsection (1) (duty to specify determination under section 78 in local
government finance report), for the words from “a report” to “report)”
substitute “the local government finance report for the year (as to which, see
20paragraph 5 of Schedule 7B)”.

(4) In subsection (2) (requirement for report to specify basis of distribution of
grant to receiving authorities), for “A local government finance report”
substitute “If the determination provides for grant to be paid to receiving
authorities, the report”.

(5) 25In subsection (3), for “the report” substitute “a report to which subsection (2)
applies”.

(6) Omit subsections (4) and (5) (duty to lay report before House of Commons
and to send copies to receiving authorities).

4 (1) Section 79 (effect of report’s approval) is amended as follows.

(2) 30In subsection (3) (duty to pay amounts specified in determination to
receiving authorities and specified bodies)—

(a) for “The Secretary of State” substitute “If the determination provides
for grant to be paid to receiving authorities, the Secretary of State”,
and

(b) 35after “section 78(3)(b) above, and” insert “, if the determination
provides for grant to be paid to specified bodies, the Secretary of
State”.

(3) In subsection (4) (amount to be paid to receiving authorities), for “The
amount” substitute “Any amount”.

(4) 40In subsection (5) (amount to be paid to particular specified body), for “The
amount” substitute “Any amount”.

5 (1) Section 82 (calculation of sums payable to receiving authorities by way of
revenue support grant) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies if—

(a) in accordance with sections 78 and 78A above a
determination as regards revenue support grant has been
5made for a financial year and specified in a report which has
been laid before the House of Commons,

(b) the determination provides for grant to be paid to receiving
authorities, and

(c) the report is approved by resolution of the House of
10Commons.”

(3) In subsection (1) (requirement to calculate sums payable), for the words
from “a local government finance report” to “House of Commons” substitute
“the report has been approved”.

6 In section 84A(1) (power of Secretary of State to make amending reports
15after local government finance report made), after “local government
finance report” insert “that contains a determination under section 78
above”.

Section 5

SCHEDULE 3 Local retention of non-domestic rates: further amendments

20Part 1 Amendments to Schedule 8 to the LGFA 1988 etc

LGFA 1988

1 In section 60 of the LGFA 1988 (non-domestic rating: pooling), for “Secretary
of State” substitute “Welsh Ministers”.

2 25Schedule 8 to the LGFA 1988 (non-domestic rating: pooling) is amended as
follows.

3 (1) Paragraph 1 (non-domestic rating accounts) is amended as follows.

(2) In sub-paragraph (1), for “Secretary of State” substitute “Welsh Ministers”.

(3) In sub-paragraph (2)—

(a) 30for “Secretary of State” substitute “Welsh Ministers”, and

(b) in paragraph (b), for “Comptroller and Auditor General” substitute
“Auditor General for Wales”.

(4) Omit sub-paragraph (3).

(5) In sub-paragraph (4), for “Assembly” substitute “National Assembly for
35Wales”.

4 (1) Paragraph 2 (credits and debits to non-domestic rating accounts) is
amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a), for “Secretary of State” substitute “Welsh
Ministers”, and

(b) in each of paragraphs (b) and (c), for “him” substitute “them”.

(3) In sub-paragraph (2)—

(a) 5in paragraph (a), for “Secretary of State” substitute “Welsh
Ministers”, and

(b) in paragraph (b), for “him” substitute “them”.

5 In paragraph 3(1) (end of year calculations), for “Secretary of State”
substitute “Welsh Ministers”.

6 10Before paragraph 4 (and after the heading to Part 2 of Schedule 8 but before
the heading to that paragraph) insert—

“Interpretation

3A Any reference in this Part of this Schedule to a billing authority is
a reference to a billing authority in Wales.”

7 (1) 15Paragraph 4 (rules as to calculation of billing authority’s non-domestic
rating contribution) is amended as follows.

(2) In sub-paragraph (1), for “Secretary of State” substitute “Welsh Ministers”.

(3) Omit sub-paragraphs (3), (4B) and (4D).

(4) In sub-paragraph (5)—

(a) 20for “Secretary of State” substitute “Welsh Ministers”,

(b) for “he thinks” in both places substitute “they think”, and

(c) for “sub-paragraphs (2) and (3)” substitute “sub-paragraph (2)”.

(5) Omit sub-paragraph (5A).

8 (1) Paragraph 5 (calculation and payment of billing authority’s non-domestic
25rating contribution) is amended as follows.

(2) In sub-paragraph (2), for “Secretary of State” in both places substitute
“Welsh Ministers”.

(3) In sub-paragraph (3)—

(a) for “Secretary of State believes” substitute “Welsh Ministers believe”,

(b) 30for “he may” substitute “they may”,

(c) for “his” substitute “their”,

(d) for “he makes” substitute “they make”,

(e) for “he shall” substitute “they shall”, and

(f) for “he has” substitute “they have”.

(4) 35In sub-paragraph (4), for “Secretary of State” in both places substitute
“Welsh Ministers”.

(5) In sub-paragraph (5), for “Secretary of State” substitute “Welsh Ministers”.

(6) In sub-paragraph (6)—

(a) in paragraph (b), for “Secretary of State” substitute “Welsh
40Ministers”,