Session 2012 - 13
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Local Government Finance Bill


Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

15

 

Part 5

Principal payments in connection with local retention of non-

domestic rates

Determination of payments

10    (1)  

The local government finance report for a year must specify the

5

basis (“the basis of calculation”) on which the Secretary of State

intends to—

(a)   

calculate which relevant authorities are to make payments

under this Part of this Schedule to the Secretary of State for

the year,

10

(b)   

calculate which relevant authorities are to receive

payments under this Part of this Schedule from the

Secretary of State for the year, and

(c)   

calculate the amount of each payment within paragraph

(a) or (b).

15

      (2)  

Before making the local government finance report for a year, 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 calculation.

Calculations following local government finance report

20

11    (1)  

This paragraph applies if a local government finance report for a

year is approved by resolution of the House of Commons.

      (2)  

As soon as is reasonably practicable after the report has been

approved, the Secretary of State must—

(a)   

calculate which relevant authorities are to make payments

25

under this Part of this Schedule to the Secretary of State for

the year,

(b)   

calculate which relevant authorities are to receive

payments under this Part of this Schedule from the

Secretary of State for the year, and

30

(c)   

calculate the amount of each payment within paragraph

(a) or (b).

      (3)  

Subject as follows, the Secretary of State may, at any time before

the end of the year following the year to which the report relates,

make one further set of calculations of the kind described in sub-

35

paragraph (2).

      (4)  

The power to make a further set of calculations under sub-

paragraph (3) is not exercisable after the approval by the House of

Commons of any amending report made under paragraph 13 in

relation to the local government finance report.

40

      (5)  

Calculations under this paragraph must be made in accordance

with the basis of calculation specified in the report.

      (6)  

As soon as is reasonably practicable after making calculations

under sub-paragraph (2) or (3), the Secretary of State must notify

each relevant authority of—

45

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

16

 

(a)   

whether any payments are to be made by the authority to

the Secretary of State in accordance with the calculations,

(b)   

whether any payments are to be made to the authority by

the Secretary of State in accordance with the calculations,

and

5

(c)   

if any payments are to be made by or to the authority, the

amount of each payment.

Payments following local government finance report

12    (1)  

Where calculations under paragraph 11(2) show that a relevant

authority is to make a payment to the Secretary of State, the

10

authority must make that payment to the Secretary of State.

      (2)  

Where calculations under paragraph 11(2) show that the Secretary

of State is to make a payment to a relevant authority, the Secretary

of State must make that payment to the authority.

      (3)  

The following provisions apply if calculations (“the revised

15

calculations”) are made under paragraph 11(3) for a year.

      (4)  

In this paragraph “the original calculations” means the

calculations for the year under paragraph 11(2).

      (5)  

Sub-paragraph (6) applies where—

(a)   

a payment the revised calculations show as falling to be

20

made by a relevant authority to the Secretary of State

exceeds that shown as falling to be made by the original

calculations, or

(b)   

a payment the revised calculations show as falling to be

made by the Secretary of State to a relevant authority is less

25

than that shown as falling to be made by the original

calculations.

      (6)  

The authority must make a payment to the Secretary of State of an

amount equal to the difference.

      (7)  

Where the original calculations did not show that a relevant

30

authority was to make a payment to the Secretary of State, but the

revised calculations show that the authority is to make a payment

to the Secretary of State—

(a)   

the authority must make that payment to the Secretary of

State, and

35

(b)   

the authority must make a payment to the Secretary of

State of an amount equal to the amount of the payment

shown by the original calculations as falling to be made by

the Secretary of State to the authority.

      (8)  

Sub-paragraph (9) applies where—

40

(a)   

a payment the revised calculations show as falling to be

made by a relevant authority to the Secretary of State is less

than that shown as falling to be made by the original

calculations, or

(b)   

a payment the revised calculations show as falling to be

45

made by the Secretary of State to a relevant authority

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

17

 

exceeds that shown as falling to be made by the original

calculations.

      (9)  

The Secretary of State must make a payment to the authority of an

amount equal to the difference.

     (10)  

Where the original calculations did not show that the Secretary of

5

State was to make a payment to a relevant authority, 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

10

(b)   

the Secretary of State must make a payment to the

authority of an amount equal to the amount of the

payment shown by the original calculations as falling to be

made by the authority to the Secretary of State.

     (11)  

A payment by a relevant authority to the Secretary of State under

15

sub-paragraph (1)—

(a)   

must be made on or before such day in the year to which

the local government finance report relates, 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

20

of competent jurisdiction.

     (12)  

A payment by the Secretary of State to a relevant authority under

sub-paragraph (2) must be made—

(a)   

in instalments of such amounts, and

(b)   

at such times in the year to which the local government

25

finance report relates,

           

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

     (13)  

A payment by a relevant authority to the Secretary of State under

sub-paragraph (6) or (7)—

(a)   

must be made on or before such day after the end of the

30

year to which the local government finance report relates,

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.

35

     (14)  

A payment by the Secretary of State to a relevant authority under

sub-paragraph (9) or (10) 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;

40

but any such time must fall after the end of the year to which the

local government finance report relates.

Amending reports

13    (1)  

After a local government finance report has been made, the

Secretary of State may, at any time before the end of the year

45

following the year to which the report relates, make in relation to

the report one or more amending reports under this paragraph.

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

18

 

      (2)  

An amending report under this paragraph must contain

amendments to the basis of calculation specified in the local

government finance report.

      (3)  

Before making the report, the Secretary of State must notify such

representatives of local government as the Secretary of State

5

thinks fit of the general nature of the amendments the Secretary of

State proposes to make.

      (4)  

The Secretary of State must lay, or make arrangements for laying,

the report before the House of Commons.

      (5)  

As soon as is reasonably practicable after the report is laid before

10

the House of Commons, the Secretary of State must send a copy of

the report to each relevant authority.

      (6)  

Where an amending report under this paragraph has been

approved by resolution of the House of Commons, the Secretary

of State may not make a subsequent amending report under this

15

paragraph in relation to the same local government finance report.

Calculations following amending report

14    (1)  

This paragraph applies if an amending report for a year made

under paragraph 13 is approved by resolution of the House of

Commons.

20

      (2)  

As soon as is reasonably practicable after the amending report has

been approved, the Secretary of State must—

(a)   

calculate which relevant authorities are to make payments

under this Part of this Schedule to the Secretary of State for

the year,

25

(b)   

calculate which relevant authorities are to receive

payments under this Part of this Schedule from the

Secretary of State for the year, and

(c)   

calculate the amount of each payment within paragraph

(a) or (b).

30

      (3)  

Subject as follows, the Secretary of State may make one further set

of calculations of the kind described in sub-paragraph (2).

      (4)  

The power to make a further set of calculations under sub-

paragraph (3) is not exercisable after whichever is the later of—

(a)   

the end of the year following the year to which the

35

amending report relates, and

(b)   

the end of the period of 3 months beginning with the day

on which the amending report is approved by resolution of

the House of Commons.

      (5)  

Calculations under this paragraph must be made in accordance

40

with the basis of calculation specified in the local government

finance report as amended by the amending report.

      (6)  

As soon as is reasonably practicable after making calculations

under sub-paragraph (2) or (3), the Secretary of State must notify

each relevant authority of—

45

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

19

 

(a)   

whether any payments are to be made by the authority to

the Secretary of State in accordance with the calculations,

(b)   

whether any payments are to be made to the authority by

the Secretary of State in accordance with the calculations,

and

5

(c)   

if any payments are to be made by or to the authority, the

amount of each payment.

Payments following amending report

15    (1)  

This paragraph applies if calculations (“the revised calculations”)

are made under paragraph 14(2) or (3) for a year.

10

      (2)  

In this paragraph “the relevant previous calculations” means the

last calculations of the kind referred to in paragraph 11(2) or (3) or

14(2) made for the year.

      (3)  

Sub-paragraph (4) applies where—

(a)   

a payment shown by the revised calculations as falling to

15

be made by a relevant authority to the Secretary of State

exceeds that shown as falling to be made by the relevant

previous calculations, or

(b)   

a payment shown by the revised calculations as falling to

be made by the Secretary of State to a relevant authority is

20

less than that shown as falling to be made by the relevant

previous calculations.

      (4)  

The authority must make a payment to the Secretary of State of an

amount equal to the difference.

      (5)  

Where the relevant previous calculations did not show that a

25

relevant authority was to make a payment to the Secretary of State,

but the revised calculations show that the authority is to make a

payment to the Secretary of State—

(a)   

the authority must make that payment to the Secretary of

State, and

30

(b)   

the authority must make a payment to the Secretary of

State of an amount equal to the amount of the payment

shown by the relevant previous calculations as falling to be

made by the Secretary of State to the authority.

      (6)  

Sub-paragraph (7) applies where—

35

(a)   

a payment shown by the revised calculations as falling to

be made by a relevant authority to the Secretary of State is

less than that shown as falling to be made by the relevant

previous calculations, or

(b)   

a payment shown by the revised calculations as falling to

40

be made by the Secretary of State to a relevant authority

exceeds that shown as falling to be made by the relevant

previous calculations.

      (7)  

The Secretary of State must make a payment to the authority of an

amount equal to the difference.

45

      (8)  

Where the relevant previous calculations did not show that the

Secretary of State was to make a payment to a relevant authority,

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

20

 

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)   

the Secretary of State must make a payment to the

5

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

this paragraph—

10

(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

of competent jurisdiction.

15

     (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,

           

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

20

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

(designation of areas and classes of hereditament).

25

Part 6

Levy accounts

Levy accounts

17    (1)  

The Secretary of State must, for each year, keep an account, to be

called a “levy account”.

30

      (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

of this Schedule that apply to a levy account.

35

      (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

of each such account to the Comptroller and Auditor

40

General.

      (5)  

The Comptroller and Auditor General—

 
 

Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

21

 

(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

Comptroller and Auditor General’s report on it to be laid

5

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)   

amounts received by the Secretary of State in the year

10

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)  

For each year the following are to be debited (as items of account)

15

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

regulations under paragraph 26, and

20

(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

Secretary of State must calculate—

25

(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)  

If the aggregate mentioned in sub-paragraph (1)(a) exceeds that

30

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)   

credited (as an item of account) to the levy account kept for

35

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)   

credited (as an item of account) to the levy account kept for

40

the year, and

(b)   

debited (as an item of account) to the levy account kept for

the next year.

 
 

 
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Revised 10 May 2012