Session 2012 - 13
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Local Government Finance Bill


Local Government Finance Bill
Schedule 3 — Local retention of non-domestic rates: further amendments
Part 1 — Amendments to Schedule 8 to the LGFA 1988 etc

43

 

      (4)  

In sub-paragraphs (3) and (4), for “Secretary of State” substitute “Welsh

Ministers”.

      (5)  

In sub-paragraph (5), for “House of Commons” substitute “Assembly”.

      (6)  

In sub-paragraph (6)—

(a)   

for “Secretary of State decides” substitute “Welsh Ministers decide”,

5

(b)   

for “he” in both places substitute “they”, and

(c)   

for “him” substitute “them”.

      (7)  

In sub-paragraph (7)—

(a)   

for “Secretary of State informs” substitute “Welsh Ministers inform”,

(b)   

for “his” substitute “their”, and

10

(c)   

for “he” substitute “they”.

      (8)  

In sub-paragraph (8)—

(a)   

for “Secretary of State” substitute “Welsh Ministers”, and

(b)   

for “he calculates” substitute “they calculate”.

15    (1)  

Paragraph 12 (payment of sums to receiving authorities out of distributable

15

amount) is amended as follows.

      (2)  

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

      (3)  

In sub-paragraph (2)—

(a)   

for “Secretary of State determines” substitute “Welsh Ministers

determine”, and

20

(b)   

omit “with the Treasury’s consent”.

      (4)  

In sub-paragraph (3), for “Secretary of State” substitute “Welsh Ministers”.

      (5)  

In sub-paragraph (4)—

(a)   

for “Secretary of State determines” substitute “Welsh Ministers

determine”, and

25

(b)   

omit “with the Treasury’s consent”.

      (6)  

In sub-paragraphs (5) and (6), for “Secretary of State” substitute “Welsh

Ministers”.

16    (1)  

Paragraph 13 (making of amending report in relation to local government

finance report) is amended as follows.

30

      (2)  

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

      (3)  

In sub-paragraph (3)—

(a)   

for “Secretary of State” substitute “Welsh Ministers”,

(b)   

for “him” substitute “them”, and

(c)   

for “he proposes” substitute “they propose”.

35

      (4)  

In sub-paragraph (4), for “House of Commons” substitute “Assembly”.

      (5)  

In sub-paragraphs (5) and (6)—

(a)   

for “House of Commons” substitute “Assembly”, and

(b)   

for “Secretary of State” substitute “Welsh Ministers”.

17    (1)  

Paragraph 14 (calculation of sums payable to receiving authorities following

40

amending report) is amended as follows.

 
 

Local Government Finance Bill
Schedule 3 — Local retention of non-domestic rates: further amendments
Part 1 — Amendments to Schedule 8 to the LGFA 1988 etc

44

 

      (2)  

In sub-paragraph (1)—

(a)   

for “House of Commons” substitute “Assembly”, and

(b)   

for “Secretary of State” substitute “Welsh Ministers”.

      (3)  

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

      (4)  

In sub-paragraph (3)(b), for “House of Commons” substitute “Assembly”.

5

18    (1)  

Paragraph 15 (payments following amending report) is amended as follows.

      (2)  

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

      (3)  

In sub-paragraph (3)—

(a)   

for “Secretary of State determines” substitute “Welsh Ministers

determine”, and

10

(b)   

omit “with the Treasury’s consent”.

      (4)  

In sub-paragraphs (4) and (5), for “Secretary of State” substitute “Welsh

Ministers”.

Non-Domestic Rating Act 1992 (c. 46)

19         

The Non-Domestic Rating Act 1992 is amended as follows.

15

20    (1)  

Section 4 (which modifies Schedule 8 to the LGFA 1988, and which applies

with modifications for the financial year beginning in 1995 and subsequent

financial years by virtue of section 3 of the Non-Domestic Rating Act 1994)

is amended as follows.

      (2)  

In the sub-paragraph (3A) set out in subsection (1)(b)—

20

(a)   

for “Secretary of State” substitute “Welsh Ministers”, and

(b)   

in paragraph (b), for “he considers” substitute “they consider”.

      (3)  

In the sub-paragraph (3B) set out in subsection (1)(b)—

(a)   

for “Secretary of State” substitute “Welsh Ministers”, and

(b)   

for “he thinks” substitute “they think”.

25

21         

In section 5 (which modifies Schedule 8 to the LGFA 1988, and which applies

to the financial year beginning in 1995 and subsequent financial years by

virtue of section 3 of the Non-Domestic Rating Act 1994), in the paragraph

(d) set out in subsection (1)(b), for “him” in both places substitute “them”.

Consequential revocation and repeal

30

22         

In consequence of the amendments made by this Part of this Schedule—

(a)   

in Schedule 1 to the National Assembly for Wales (Transfer of

Functions) Order 1999 (SI 1999/672), in the entry for the Local

Government Finance Act 1988 omit the words from “The functions

of the Comptroller and Auditor General” to “before the Assembly.”,

35

and

(b)   

in Schedule 7 to the Local Government Act 2003 omit paragraph

26(3).

 
 

Local Government Finance Bill
Schedule 3 — Local retention of non-domestic rates: further amendments
Part 2 — Other amendments

45

 

Part 2

Other amendments

LGFA 1988

23         

The LGFA 1988 is amended as follows.

24    (1)  

Section 90 (payments to and from collection funds) is amended as follows.

5

      (2)  

In subsection (1), for paragraph (d) (and the “and” at the end of that

paragraph) substitute—

“(d)   

sums received by the authority under any of the following

provisions of Schedule 7B (local retention of non-domestic

rates) that are of a kind specified by the Secretary of State as

10

falling to be paid into a billing authority’s collection fund—

(i)   

paragraph 12(2) (payments by Secretary of State

following local government finance report);

(ii)   

paragraph 12(9) or (10) (payments by Secretary of

State following revised calculation);

15

(iii)   

paragraph 15(7) or (8) (payments by Secretary of State

following amending report),

(da)   

sums received by the authority—

(i)   

under provision made by regulations under

paragraph 7 of Schedule 7B (regulations about

20

administration of payments in respect of the central

share),

(ii)   

under provision made by regulations under

paragraph 9 of that Schedule (administration of

payments by billing authorities to major precepting

25

authorities) by virtue of sub-paragraph (2)(e) of that

paragraph (reconciliation payments),

(iii)   

under provision made by regulations under

paragraph 31 of that Schedule (transitional protection

payments), or

30

(iv)   

under provision made by regulations under

paragraph 37 or 38 of that Schedule (designation of

areas or classes of hereditament) by virtue of

paragraph 39 of that Schedule (payments by billing

authorities to relevant authorities), and”.

35

      (3)  

In subsection (2), for paragraph (c) substitute—

“(c)   

payments to be made by the authority under any of the

following provisions of Schedule 7B that are of a kind

specified by the Secretary of State as falling to be met from a

billing authority’s collection fund—

40

(i)   

paragraph 12(1) (payments to Secretary of State

following local government finance report);

(ii)   

paragraph 12(6) or (7) (payments to Secretary of State

following revised calculation);

(iii)   

paragraph 15(4) or (5) (payments to Secretary of State

45

following amending report),

(ca)   

payments made by the authority—

 
 

Local Government Finance Bill
Schedule 3 — Local retention of non-domestic rates: further amendments
Part 2 — Other amendments

46

 

(i)   

under paragraph 6, or under provision made by

regulations under paragraph 7, of Schedule 7B

(payments in respect of the central share),

(ii)   

under provision made by regulations under

paragraph 8 of that Schedule (payments by billing

5

authorities to major precepting authorities),

(iii)   

under provision made by regulations under

paragraph 9 of that Schedule (administration of

payments by billing authorities to major precepting

authorities) by virtue of sub-paragraph (2)(e) of that

10

paragraph (reconciliation payments),

(iv)   

under provision made by regulations under

paragraph 31 of that Schedule (transitional protection

payments), or

(v)   

under provision made by regulations under

15

paragraph 37 or 38 of that Schedule (designation of

areas or classes of hereditament) by virtue of

paragraph 39 of that Schedule (payments by billing

authorities to relevant authorities),”.

25    (1)  

Section 97 (principal transfers between funds) is amended as follows.

20

      (2)  

After subsection (2) insert—

“(2A)   

The Secretary of State may by regulations make provision requiring

a billing authority to transfer from its collection fund to its general

fund such amounts as may be specified in or determined in

accordance with the regulations by reference to—

25

(a)   

sums received by the authority in respect of non-domestic

rates under this Act, and

(b)   

sums received by the authority under Schedule 7B (local

retention of non-domestic rates) and required to be paid into

its collection fund by virtue of provision made by or under

30

section 90(1)(d) or (da).”

      (3)  

Omit subsection (4A).

26    (1)  

Section 99 (regulations about funds) is amended as follows.

      (2)  

In subsection (1)(b), for “, (3) or (4A)” substitute “or (3)”.

      (3)  

Omit subsections (3A) and (3B).

35

27         

In section 140(2) (separate administration of Parts 3 and 4 in England and

Wales)—

(a)   

at the end of paragraph (a) insert “, and”, and

(b)   

omit paragraphs (c) and (e).

28    (1)  

Section 141 (payments to and from authorities) is amended as follows.

40

      (2)  

In subsection (5)(c), after “such as” insert “paragraph 2 of Schedule 7B or”.

      (3)  

In subsection (7), before “paragraph 5(10) and 14 of Schedule 8 below” insert

“regulations made under paragraph 7 of Schedule 7B below, paragraphs

12(2), (9) and (10), 15(7) and (8) and 25(1) of that Schedule, regulations made

under paragraph 26 of that Schedule, paragraph 28(7) of that Schedule,

45

regulations made under paragraph 31 of that Schedule,”.

 
 

Local Government Finance Bill
Schedule 4 — Amendments relating to council tax reduction schemes
Part 1 — Schedule to be inserted into LGFA 1992

47

 

      (4)  

In subsection (8), before “paragraph 5 of Schedule 8 below” insert

“paragraph 6 of Schedule 7B below, regulations made under paragraph 7 of

that Schedule, paragraphs 12(1), (6) and (7), 15(4) and (5) and 22(1) of that

Schedule, regulations made under paragraph 26 of that Schedule,

regulations made under paragraph 31 of that Schedule,”.

5

29         

In section 144(2) (definition of “billing authority” etc) at the end insert “; but,

in the case of references to a billing authority in Part 2 of Schedule 8, this is

subject to paragraph 3A of that Schedule.”

LGFA 1992

30         

In Schedule 13 to the LGFA 1992 (minor and consequential amendments)

10

omit paragraph 78(2).

Audit Commission Act 1998 (c. 18)

31         

In section 28(1) of the Audit Commission Act 1998 (certification of claims,

returns etc), for paragraph (c) (and the “or” at the end of that paragraph)

substitute—

15

“(c)   

for certifying calculations made or information supplied

under regulations under Schedule 7B to the Local

Government Finance Act 1988 or a direction under

paragraph 40 of that Schedule by the body to the Secretary of

State or a major precepting authority within the meaning of

20

that Act; or”.

Local Government Act 2003 (c. 26)

32         

The Local Government Act 2003 is amended as follows.

33         

In section 70 (local retention of rates) omit subsections (4) to (6).

34         

In Schedule 7 (minor and consequential amendments) omit paragraph 22(a).

25

Schedule 4

Section 8

 

Amendments relating to council tax reduction schemes

Part 1

Schedule to be inserted into LGFA 1992

1          

After Schedule 1 to the LGFA 1992 insert—

30

“Schedule 1A

Section 13A

 

Council tax reduction schemes

Interpretation

1          

In this Schedule—

(a)   

“scheme” means council tax reduction scheme, and

35

 
 

Local Government Finance Bill
Schedule 4 — Amendments relating to council tax reduction schemes
Part 1 — Schedule to be inserted into LGFA 1992

48

 

(b)   

in relation to a scheme, “the authority” means the billing

authority which made the scheme or is under a duty to

make it.

Matters to be included in schemes

2     (1)  

A scheme must state the classes of person who are to be entitled to

5

a reduction under the scheme.

      (2)  

The classes may be determined by reference to, in particular—

(a)   

the income of any person liable to pay council tax to the

authority in respect of a dwelling;

(b)   

the capital of any such person;

10

(c)   

the income and capital of any other person who is a

resident of the dwelling;

(d)   

the number of dependants of any person within paragraph

(a) or (c);

(e)   

whether the person has made an application for the

15

reduction.

      (3)  

A scheme must set out the reduction to which persons in each class

are to be entitled; and different reductions may be set out for

different classes.

      (4)  

A reduction may be—

20

(a)   

a discount calculated as a percentage of the amount which

would be payable apart from the scheme,

(b)   

a discount of an amount set out in the scheme or to be

calculated in accordance with the scheme,

(c)   

expressed as an amount of council tax to be paid (lower

25

than the amount which would be payable apart from the

scheme) which is set out in the scheme or is to be calculated

in accordance with it, or

(d)   

the whole amount of council tax (so that the amount

payable is nil).

30

      (5)  

A scheme must state the procedure by which a person may apply

for a reduction under the scheme.

      (6)  

A scheme must state the procedure by which a person can make

an appeal under section 16 against any decision of the authority

which affects—

35

(a)   

the person’s entitlement to a reduction under the scheme,

or

(b)   

the amount of any reduction to which the person is

entitled.

      (7)  

A scheme must state the procedure by which a person can apply

40

to the authority for a reduction under section 13A(1)(b).

      (8)  

The Secretary of State may by regulations prescribe other

requirements for schemes.

      (9)  

Regulations under sub-paragraph (8) may in particular—

(a)   

require other matters to be included in a scheme;

45

 
 

Local Government Finance Bill
Schedule 4 — Amendments relating to council tax reduction schemes
Part 1 — Schedule to be inserted into LGFA 1992

49

 

(b)   

prescribe classes of person which must or must not be

included in a scheme;

(c)   

prescribe reductions, including minimum or maximum

reductions, which must be applicable to persons in

prescribed classes;

5

(d)   

prescribe requirements which must be met by the

procedure mentioned in sub-paragraph (5).

Preparation of a scheme

3     (1)  

Before making a scheme, the authority must (in the following

order)—

10

(a)   

consult any major precepting authority which has power

to issue a precept to it,

(b)   

publish a draft scheme in such manner as it thinks fit, and

(c)   

consult such other persons as it considers are likely to have

an interest in the operation of the scheme.

15

      (2)  

The fact that this paragraph was not in force when consultation

under sub-paragraph (1)(a) took place is to be disregarded in

determining whether there has been compliance with that sub-

paragraph.

      (3)  

Having made a scheme, the authority must publish it in such

20

manner as the authority thinks fit.

      (4)  

The Secretary of State may make regulations about the procedure

for preparing a scheme.

      (5)  

Regulations under sub-paragraph (4) may in particular—

(a)   

require the authority to produce documents of a particular

25

description in connection with the preparation of a

scheme;

(b)   

include requirements as to the form and content of

documents produced in connection with the preparation

of a scheme;

30

(c)   

include requirements (in addition to sub-paragraphs (1)(b)

and (3)) about the manner in which such documents must

be published;

(d)   

require the authority to make copies of such documents

available for inspection by members of the public, or to

35

supply copies of such documents to them;

(e)   

include provision about the making of reasonable charges

for the supply of copies of such documents to members of

the public.

Default scheme

40

4     (1)  

The Secretary of State must by regulations prescribe a scheme

(“the default scheme”) for the purposes of this paragraph.

      (2)  

The first financial year to which the default scheme relates must be

the year beginning with 1 April 2013.

      (3)  

The default scheme must comply with the requirements of—

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