Session 2012 - 13
Internet Publications
Other Bills before Parliament

Local Government Finance Bill


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

29

 

(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

to the Secretary of State, by a billing authority in

5

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

certified by the audit does not match that made or supplied

10

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

authority for the year is different from a payment on

15

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

consequences of non-payment.

20

Part 9

Pooling of authorities

Designation of pool of authorities

32    (1)  

The Secretary of State may, in accordance with this paragraph,

designate two or more relevant authorities as a pool of authorities

25

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)  

The Secretary of State—

30

(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)  

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

35

(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

required by paragraph 10(2) (notification of general basis of

40

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

are likely to be affected by the designation or revocation as the

45

Secretary of State thinks fit.

 
 

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

30

 

      (7)  

After making or revoking a designation, the Secretary of State

must notify—

(a)   

the authorities covered by the designation, and

(b)   

the persons consulted under sub-paragraph (6).

      (8)  

A notification under sub-paragraph (7) must be given before or at

5

the same time as the Secretary of State gives the notification

required by paragraph 10(2) for the year to which the designation

or revocation relates.

Designations subject to conditions

33    (1)  

A designation under paragraph 32 must be made subject to

10

conditions—

(a)   

requiring the authorities to which it relates to appoint a

lead authority to exercise the functions specified in the

conditions, and

(b)   

requiring the authorities, if the designation is revoked, to

15

take the steps specified in the conditions before the

revocation takes effect.

      (2)  

A designation under paragraph 32 may be made subject to such

other conditions as the Secretary of State thinks fit.

      (3)  

The Secretary of State may vary a designation by—

20

(a)   

adding a condition,

(b)   

modifying a condition, or

(c)   

removing a condition (other than one mentioned in sub-

paragraph (1)).

      (4)  

Before varying a designation under sub-paragraph (3), the

25

Secretary of State must consult such persons likely to be affected

by the variation as the Secretary of State thinks fit.

      (5)  

After varying a designation under sub-paragraph (3), the

Secretary of State must notify—

(a)   

the authorities covered by the designation, and

30

(b)   

the persons consulted under sub-paragraph (4).

Effect of designation in relation to Part 5

34    (1)  

Where a designation of a pool of authorities has effect for a year,

Part 5 of this Schedule (principal payments in connection with

local retention of non-domestic rates) applies in relation to the

35

pool as if—

(a)   

the authorities in the pool were not relevant authorities,

but

(b)   

the pool were itself a relevant authority.

      (2)  

Sub-paragraph (1) does not apply in relation to paragraph 13(5)

40

(duty to send copy of amending report to each relevant authority).

      (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

 
 

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

31

 

report, from also making provision in relation to the

individual 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

5

(c)   

the Secretary of State from notifying the results of the

calculations 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

10

35    (1)  

Regulations under paragraph 20, 23 or 26 (levy payments, safety

net 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—

15

(a)   

that is similar to provision which may be made under the

paragraph 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

20

authorities for a year, paragraphs 21 and 22 (calculation and

making 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

25

authorities for a year, paragraphs 24 and 25 (calculation and

making 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,

30

paragraph 28 (distribution of remaining balance) applies in

relation to the pool as if—

(a)   

the authorities in the pool were not relevant authorities,

but

(b)   

the pool were itself a relevant authority.

35

      (6)  

A determination under paragraph 28(1) may treat a pool of

authorities 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

40

government finance report containing provision under

paragraph 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

45

regulations, or

 
 

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

32

 

(ii)   

under paragraph 28(4) based on such a local

government finance report,

   

in relation to each of those authorities, or

(c)   

the Secretary of State from notifying the results of the

calculations to each of those authorities.

5

      (8)  

But paragraphs 22, 25 and 28(7) (payments following calculations)

do not apply in relation to such calculations.

Further 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

10

any matter is a requirement to notify each authority in the pool of

that matter.

      (2)  

Where 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

15

payment.

      (3)  

Where by virtue of either of those paragraphs the Secretary of

State 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).

20

Part 10

Designation of areas and classes of hereditament

Designation of areas

37    (1)  

The Secretary of State may by regulations—

(a)   

designate one or more areas in England (a “designated

25

area”);

(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 all or part of

whose area falls within a designated area, of the amount

30

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

35

the 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

40

arrangements for payments in respect of the central

share);

(iii)   

regulations under paragraph 8 (payments by

billing authorities to major precepting authorities);

 
 

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

33

 

(iv)   

regulations under paragraph 9 (administrative

arrangements for payments by billing authorities

to major precepting authorities);

(v)   

paragraph 11 (calculations following local

government finance report);

5

(vi)   

paragraph 14 (calculations following amending

report);

(vii)   

paragraph 21 (calculations of levy payments);

(viii)   

paragraph 24 (calculations of safety net payments);

(ix)   

regulations under paragraph 26 (calculations of

10

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)

is the total amount which, if the authority acted diligently, would

15

be payable to it for the year under section 43 or 45 in respect of the

hereditaments within the designated area.

      (3)  

The 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

20

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

calculation under regulations under this paragraph for an earlier

25

year but not taken into account in that calculation.

      (5)  

The regulations must—

(a)   

specify 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

30

of the first year after specified conditions have been met.

      (6)  

Conditions under sub-paragraph (5)(b) may require compliance

with specifications or requirements contained in a document of a

specified kind.

      (7)  

If the regulations make provision under sub-paragraph (5)(b),

35

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

period.

      (8)  

The regulations may specify the years for which the designation

has effect.

40

      (9)  

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

(a)   

amendments within sub-paragraph (10) may not be made

to 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

45

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.

 
 

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

34

 

     (10)  

The amendments mentioned in sub-paragraph (9)(a) are those

which have the effect of—

(a)   

altering 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

5

that paragraph is to be disregarded, providing for a

proportion of that amount to be disregarded,

(c)   

where provision made under that paragraph has the effect

that a proportion is to be disregarded, reducing that

proportion, or

10

(d)   

reducing the period for which the designation has effect.

     (11)  

Regulations under this paragraph must specify each area

designated 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

15

by reference to such factors as the Secretary of State thinks fit.

     (13)  

The consent of the Treasury is required to regulations under this

paragraph.

     (14)  

In this paragraph “specified” means specified in the regulations.

Designation of classes of hereditament

20

38    (1)  

The Secretary of State may by regulations—

(a)   

designate one or more classes of hereditaments in England

(a “designated class”);

(b)   

provide for the calculation in accordance with the

regulations, for each year for which the designation has

25

effect and in relation to each billing authority whose area

includes hereditaments within the designated class, of the

amount mentioned in sub-paragraph (2);

(c)   

provide for the calculation of a proportion of that amount

in accordance with the regulations;

30

(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)   

paragraph 6 (payments in respect of the central

35

share);

(ii)   

regulations under paragraph 7 (administrative

arrangements for payments in respect of the central

share);

(iii)   

regulations under paragraph 8 (payments by

40

billing authorities to major precepting authorities);

(iv)   

regulations under paragraph 9 (administrative

arrangements for payments by billing authorities

to major precepting authorities);

(v)   

paragraph 11 (calculations following local

45

government finance report);

(vi)   

paragraph 14 (calculations following amending

report);

 
 

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

35

 

(vii)   

paragraph 21 (calculations of levy payments);

(viii)   

paragraph 24 (calculations of safety net payments);

(ix)   

regulations under paragraph 26 (calculations of

payments on account);

(x)   

paragraph 28 (calculations relating to distribution

5

of 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 class.

10

      (3)  

The 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).

15

      (4)  

The 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 may include provision imposing duties or

20

conferring powers on valuation officers (whether as regards

determinations, certificates or otherwise) for the purpose of the

calculation referred to in sub-paragraph (1)(c).

      (6)  

The regulations—

(a)   

must specify the date on which the designation takes effect

25

(which must be at the beginning of a year), and

(b)   

may specify the years for which the designation has effect.

      (7)  

A 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

30

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

relation to proposed regulations under it took place is to be

disregarded in determining whether there has been compliance

with sub-paragraph (8).

35

     (10)  

The consent of the Treasury is required to regulations under this

paragraph.

Payments 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

40

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,

is to be disregarded for the purposes of the calculations mentioned

in paragraph 37(1)(d) or 38(1)(d) (as the case may be).

 
 

 
previous section contents continue
 

© Parliamentary copyright
Revised 10 May 2012