but the revised calculations show that the Secretary of State is to
make a payment to the authority—

(a) the Secretary of State must make that payment to the
authority, and

(b) 5the Secretary of State must make a payment to the
authority of an amount equal to the amount of the
payment shown by the relevant previous calculations as
falling to be made by the authority to the Secretary of State.

(9) A payment by a relevant authority to the Secretary of State under
10this paragraph—

(a) must be made on or before such day after the end of the
year in which the amending report was made, and in such
manner, as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court
15of competent jurisdiction.

(10) A payment by the Secretary of State to a relevant authority under
this paragraph must be made—

(a) at such time, or

(b) in instalments of such amounts and at such times,

20as the Secretary of State determines with the Treasury’s consent;
but any such time must fall after the end of the year in which the
amending report was made.

Relationship with other provisions

16 This Part is subject to Parts 9 (pooling of authorities) and 10
25(designation of areas and classes of hereditament).

Part 6 Levy accounts

Levy accounts

17 (1) The Secretary of State must, for each year, keep an account, to be
30called a “levy account”.

(2) The first levy account to be established after the coming into force
of this paragraph may have an opening balance of such amount as
the Secretary of State may determine.

(3) Each such account must be kept in accordance with the provisions
35of this Schedule that apply to a levy account.

(4) The Secretary of State—

(a) must keep each such account in such form as the Treasury
may direct, and

(b) must, at such time as the Treasury may direct, send copies
40of each such account to the Comptroller and Auditor
General.

(5) The Comptroller and Auditor General—

(a) must examine, certify and report on any account of which
copies are sent to the Comptroller and Auditor General
under sub-paragraph (4), and

(b) must arrange for copies of the account and of the
5Comptroller and Auditor General’s report on it to be laid
before each House of Parliament.

Credits and debits

18 (1) For each year the following are to be credited (as items of account)
to the levy account kept for the year—

(a) 10amounts received by the Secretary of State in the year
under paragraph 22 (levy payments), and

(b) amounts received by the Secretary of State in the year
under regulations under paragraph 26 (payments on
account).

(2) 15For each year the following are to be debited (as items of account)
to the levy account kept for the year—

(a) payments made by the Secretary of State in the year under
paragraph 25 (safety net payments),

(b) payments made by the Secretary of State in the year under
20regulations under paragraph 26, and

(c) payments made by the Secretary of State in the year under
paragraph 28 (distribution of remaining balance).

End of year calculations

19 (1) As soon as is reasonably practicable after the end of each year, the
25Secretary of State must calculate—

(a) the aggregate of the items of account credited to the levy
account kept for the year, and

(b) the aggregate of the items of account debited to the levy
account kept for the year.

(2) 30If the aggregate mentioned in sub-paragraph (1)(a) exceeds that
mentioned in sub-paragraph (1)(b), an amount equal to the excess
must be—

(a) debited (as an item of account) to the levy account kept for
the year, and

(b) 35credited (as an item of account) to the levy account kept for
the next year.

(3) If the aggregate mentioned in sub-paragraph (1)(b) exceeds that
mentioned in sub-paragraph (1)(a), an amount equal to the excess
must be—

(a) 40credited (as an item of account) to the levy account kept for
the year, and

(b) debited (as an item of account) to the levy account kept for
the next year.

Part 7 Levy payments, safety net payments and distribution of remaining
balance

Regulations about calculation of levy payments

20 (1) 5The Secretary of State may by regulations make provision for
calculating—

(a) whether a relevant authority is required to make a
payment under this Part of this Schedule (a “levy
payment”) to the Secretary of State for a year, and

(b) 10if so, the amount of the levy payment.

(2) The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) The regulations may, in particular, make provision for
calculations in relation to a relevant authority to be made—

(a) 15if the relevant authority is a billing authority, by reference
to the total paid to it in respect of the year under sections
43 and 45, subject to such adjustments as may be specified
in the regulations;

(b) if the relevant authority is a major precepting authority, by
20reference to the total paid to it for the year under
regulations under paragraph 8 (payments by billing
authorities to major precepting authorities), subject to such
adjustments as may be specified in the regulations;

(c) by reference to payments of a kind specified in the
25regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
regulations.

(4) The regulations may, in particular, make provision for
adjustments to an amount calculated under provision made under
30sub-paragraph (3) by reference to changes affecting the calculation
of such an amount for an earlier year but not taken into account in
that calculation.

Calculation of levy payments

21 (1) The Secretary of State must calculate in relation to each relevant
35authority—

(a) whether it is required to make a levy payment for a year,
and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) 40as soon as is reasonably practicable after the end of the
year, or

(b) if a direction is given to the authority under paragraph 40
(direction to make calculations or supply information) for
the purposes of this paragraph, as soon as is reasonably
45practicable after the time specified in the direction,

whichever is the later.

(3) The calculation must be made in accordance with regulations
under paragraph 20.

(4) As soon as is reasonably practicable after making a calculation in
relation to a relevant authority, the Secretary of State must notify
5that authority of—

(a) whether, in accordance with the calculation, it is required
to make a levy payment for the year, and

(b) if so, the amount of that payment in accordance with the
calculation.

10Levy payments following calculations

22 (1) If a calculation under paragraph 21 shows that a levy payment is
to be made to the Secretary of State by a relevant authority, the
authority must make that payment to the Secretary of State.

(2) The levy payment—

(a) 15must be made on or before such day and in such manner
as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court
of competent jurisdiction.

Regulations about calculation of safety net payments

23 (1) 20The Secretary of State may by regulations make provision for
calculating—

(a) whether the Secretary of State is required to make a
payment under this Part of this Schedule (a “safety net
payment”) to a relevant authority for a year, and

(b) 25if so, the amount of the payment.

(2) The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) The regulations may, in particular, make provision for
calculations in relation to a relevant authority to be made—

(a) 30if the relevant authority is a billing authority, by reference
to the total paid to it in respect of the year under sections
43 and 45, subject to such adjustments as may be specified
in the regulations;

(b) if the relevant authority is a major precepting authority, by
35reference to the total paid to it for the year under
regulations under paragraph 8 (payments by billing
authorities to major precepting authorities), subject to such
adjustments as may be specified in the regulations;

(c) by reference to payments of a kind specified in the
40regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
regulations.

(4) The regulations may, in particular, make provision for
adjustments to an amount calculated under provision made under
45sub-paragraph (3) by reference to changes affecting the calculation

of such an amount for an earlier year but not taken into account in
that calculation.

Calculation of safety net payments

24 (1) The Secretary of State must calculate in relation to each relevant
5authority—

(a) whether the Secretary of State is required to make a safety
net payment to the authority for the year, and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) 10as soon as is reasonably practicable after the end of the
year, or

(b) if a direction is given to the authority under paragraph 40
(direction to make calculations or supply information) for
the purposes of this paragraph, as soon as is reasonably
15practicable after the time specified in the direction,

whichever is the later.

(3) The calculation must be made in accordance with regulations
under paragraph 23.

(4) As soon as is reasonably practicable after making a calculation
20under this paragraph in relation to a relevant authority, the
Secretary of State must notify that authority of—

(a) whether, in accordance with the calculation, the Secretary
of State is required to make a safety net payment to the
authority for the year, and

(b) 25if so, the amount of that payment in accordance with the
calculation.

(5) This paragraph is subject to regulations under paragraph 26
(payments on account).

Safety net payments following calculations

25 (1) 30If a calculation under paragraph 24 shows that a safety net
payment is to be made by the Secretary of State to a relevant
authority, the Secretary of State must make that payment to the
authority.

(2) The safety net payment must be made in instalments of such
35amounts, and at such times, as the Secretary of State determines
with the Treasury’s consent.

(3) This paragraph is subject to regulations under paragraph 26
(payments on account).

Regulations about payments on account

26 (1) 40The Secretary of State may by regulations make provision—

(a) for a relevant authority to request the Secretary of State to
make a calculation before the end of a year (an “in-year
calculation”) of—

(i) whether the Secretary of State is likely to be
required to make a safety net payment under
paragraph 25 to the authority for the year, and

(ii) if so, the amount of the payment;

(b) 5about the time at which and the manner in which a request
must be made, and the information that must be provided
in connection with the request;

(c) about the circumstances in which the Secretary of State
may or must make an in-year calculation in response to a
10request;

(d) about the making of an in-year calculation, including for
the Secretary of State to make the calculation by reference
to estimates of any of the amounts mentioned in paragraph
23(3).

(2) 15The regulations may make provision—

(a) about the timing of an in-year calculation in response to a
request;

(b) about the notification of the results of an in-year
calculation to the relevant authority to whom it relates;

(c) 20for the making, as a result of the calculation, of a payment
(a “payment on account”) to the authority before the end of
the year to which the calculation relates.

(3) The regulations may, in particular—

(a) make provision in relation to an in-year calculation that is
25similar to that made by paragraph 24, or apply that
paragraph with modifications in relation to such a
calculation;

(b) make provision in relation to a payment on account that is
similar to that made by paragraph 25, or apply that
30paragraph with modifications in relation to such a
payment.

(4) The regulations may make provision—

(a) about the calculation under paragraph 24 to be made in
relation to a relevant authority for a year where a payment
35on account has been made to the authority for the year;

(b) for the making of a further payment by the Secretary of
State to the authority, or of a payment by the authority to
the Secretary of State, as a result of that calculation.

Calculation of remaining balance on levy account

27 (1) 40The Secretary of State must, in each year other than the first year
for which this paragraph has effect, calculate whether there is a
remaining balance on the levy account for the year.

(2) The calculation must be made as soon as is reasonably practicable
after—

(a) 45all of the calculations required by paragraph 21(1)
(calculations of levy payments) have been made for the
previous year, and

(b) all of the calculations required by paragraph 24(1)
(calculations of safety net payments) have been made for
the previous year.

(3) The calculation must be made as follows—

5Step 1

Calculate the aggregate of the amounts of all of the levy payments
calculated for the previous year under paragraph 21(1).

Step 2

Add any amount credited to the levy account for the year in
10accordance with paragraph 19(2) (credit from previous year) to the
amount found under step 1, or subtract any amount debited to
that account in accordance with paragraph 19(3) (debit from
previous year) from the amount found under step 1.

Step 3

15Subtract from the amount found under steps 1 and 2 the aggregate
of the amounts of all the safety net payments calculated for the
previous year under paragraph 24(1).

Step 4

(4) If the amount found under step 4 in sub-paragraph (3) is a positive
20amount, that is the remaining balance on the levy account for the
year.

Distribution of remaining balance

28 (1) The Secretary of State may determine that an amount equal to the
whole or part of the remaining balance on a levy account for a year
25is to be distributed among one or more relevant authorities (rather
than being treated in accordance with paragraph 19(2)).

(2) If the Secretary of State makes a determination under sub-
paragraph (1), the amount referred to in that sub-paragraph may
not be distributed unless—

(a) 30the basis (“the basis of distribution”) on which the
Secretary of State intends to make the distribution is
specified in a local government finance report, and

(b) the report is approved by resolution of the House of
Commons.

(3) 35Before making such a local government finance report, the
Secretary of State must notify such representatives of local
government as the Secretary of State thinks fit of the general
nature of the basis of distribution.

(4) If such a report is approved by resolution of the House of
40Commons, the Secretary of State must calculate what amount (if
any) falls to be paid to each relevant authority as its share of the
amount referred to in sub-paragraph (1).

(5) The calculations must be made—

(a) as soon as is reasonably practicable after the report is
approved, and

(b) in accordance with the basis of distribution specified in the
report.

(6) 5As soon as is reasonably practicable after making the calculations,
the Secretary of State must notify each relevant authority of—

(a) whether a payment is to be made by the Secretary of State
to the authority out of the amount referred to in sub-
paragraph (1), and

(b) 10if such a payment is to be made, the amount of the
payment.

(7) If the calculations show that a payment is to be made by the
Secretary of State to a relevant authority, the Secretary of State
must make that payment to the authority.

(8) 15A payment from the Secretary of State to a relevant authority
under this paragraph must be made—

(a) at such time, or

(b) in instalments of such amounts and at such times,

as the Secretary of State determines with the Treasury’s consent.

20Relationship with other provisions

29 This Part is subject to Parts 9 (pooling of authorities) and 10
(designation of areas and classes of hereditament).

Part 8 Transitional protection payments

25Regulations about deemed and actual rating income

30 (1) The Secretary of State may by regulations make provision for
calculating in accordance with the regulations—

(a) the total amount which would be payable to a billing
authority in England in respect of a year under sections 43
30and 45 if—

(i) regulations under section 57A (transitional relief
following compilation of local rating list) were not
in force for the year, and

(ii) the authority acted diligently, and

(b) 35the total amount which would be payable to a billing
authority in England in respect of a year under sections 43
and 45 if the authority acted diligently.

(2) The regulations may include provision for adjustments to be made
to an amount calculated under provision under sub-paragraph (1).

(3) 40The regulations may, in particular, make provision for
adjustments to that amount by reference to changes affecting the
calculation of such an amount for an earlier year but not taken into
account in that calculation.

(4) In this Part of this Schedule—

(a) a billing authority’s “deemed rating income” for a year
means the amount calculated for the authority and the year
under provision under sub-paragraph (1)(a) and (2), and

(b) 5a billing authority’s “actual rating income” for a year
means the amount calculated for the authority and the year
under provision under sub-paragraph (1)(b) and (2).

Regulations about transitional protection payments

31 (1) The Secretary of State may by regulations make provision for the
10making of a payment (a “transitional protection payment”) for a
year—

(a) by the Secretary of State to a billing authority in England,
or

(b) by a billing authority in England to the Secretary of State.

(2) 15The regulations must provide for the amount (if any) of a
transitional protection payment in relation to an authority for a
year to be calculated by reference to its deemed and actual rating
income for the year, so that—

(a) if its deemed rating income for a year exceeds its actual
20rating income for the year, the Secretary of State is to be
liable to make a transitional protection payment to the
authority for the year of an amount equal to the excess;

(b) if its actual rating income for a year exceeds its deemed
rating income for the year, the authority is to be liable to
25make a transitional protection payment to the Secretary of
State for the year of an amount equal to the excess;

(c) if its deemed rating income for a year is equal to its actual
rating income for the year, no transitional protection
payment is to be made to or by the authority for the year.

(3) 30The regulations may, in particular, make provision—

(a) about the making of calculations, and the supply of
information to the Secretary of State, by a billing authority
in connection with the determination of the transitional
protection payment (if any) to be made to or by the
35authority;

(b) about the assumptions and adjustments to be made, and
the information to be taken into account, in making such
calculations;

(c) about the consequences of non-compliance with provision
40under paragraph (a) or (b), including (in particular)—

(i) for the making by the Secretary of State of
calculations, or of assumptions as to the
information that would otherwise have been
supplied by the authority;

(ii) 45for the suspension of payments to the authority.

(4) The regulations may, in particular, make provision—

(a) for the making by a billing authority or the Secretary of
State of a payment on account of a transitional protection
payment;

(b) for the calculation, where a payment on account has been
made, of the amount of the final transitional protection
payment (if any) to be made to or by the authority;

(c) for the audit of calculations made, or information supplied
5to the Secretary of State, by a billing authority in
connection with the determination of the final transitional
protection payment (if any) to be made to or by the
authority;

(d) about the consequences where a calculation or information
10certified by the audit does not match that made or supplied
by the authority, including (in particular) about the use of
the certified calculation or information;

(e) about the making of financial adjustments where the final
transitional protection payment to be made to or by the
15authority for the year is different from a payment on
account made to or by the authority for the year.

(5) The regulations may in particular make provision about the time
and manner in which a payment under the regulations is to be
made (including for payment by instalments), and as to the
20consequences of non-payment.

Part 9 Pooling of authorities

Designation of pool of authorities

32 (1) The Secretary of State may, in accordance with this paragraph,
25designate two or more relevant authorities as a pool of authorities
for the purposes of the provisions of this Schedule applying to
such pools (as to which, see paragraphs 34 and 35).

(2) The Secretary of State may make a designation only if each
authority covered by the designation has agreed to it.

(3) 30The Secretary of State—

(a) may revoke a designation (in particular if any condition of
the designation is breached), and

(b) must do so if any authority covered by the designation
asks the Secretary of State to do so.

(4) 35Subject to sub-paragraph (5), a designation has effect—

(a) for the year beginning after it is made, and

(b) for each subsequent year, unless previously revoked.

(5) A designation or revocation has effect for a year only if it is made
before the Secretary of State gives the notification for the year
40required by paragraph 10(2) (notification of general basis of
calculation to be specified in local government finance report for
year).

(6) Before making or revoking a designation, the Secretary of State
must consult such of the persons that the Secretary of State thinks
45are likely to be affected by the designation or revocation as the
Secretary of State thinks fit.