Local Government Finance Bill

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
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(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.