Local Government Finance Bill

Session 2012 - 13
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Other Bills before Parliament

Local Government Finance Bill

Local Government Finance Bill
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(15)
A determination may be made for the purposes of the section inserted by
subsection (2) for a financial year beginning with or after 1 April 2013 (and it
does not matter whether the period mentioned in subsection (8) of that section
begins before this section comes into force).
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Mortgagee in possession to be liable for council tax
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(1)
In section 6(2) of the LGFA 1992 (persons liable to pay council tax) omit the “or”
at the end of paragraph (e) and after that paragraph insert—
“(ea)
in the case of a dwelling situated in the area of a billing
authority in England, the person is a mortgagee in possession of
the owner’s interest in the dwelling; or”.
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(2)
This section has effect in relation to liability to pay council tax for the financial
year beginning with 1 April 2013 and subsequent years.
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Provision of information about council tax
(1)
In Schedule 2 to the LGFA 1992, paragraph 2 (collection of council tax) is
amended as follows.
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(2)
After sub-paragraph (4)(i) (but before the word “and” following that
paragraph) insert—
“(ia)
that the authority must publish prescribed information in the
prescribed manner;”.
(3)
In sub-paragraph (4)(j), after “when it serves a notice” insert “or on the request
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of the person”.
General
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Interpretation

In this Act—
“financial year” means a period of 12 months beginning with 1 April;
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“the LGFA 1988” means the Local Government Finance Act 1988;
“the LGFA 1992” means the Local Government Finance Act 1992.
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Power to make transitional, consequential etc provision
(1)
The Secretary of State may by order made by statutory instrument make such
transitory or transitional provision, or savings, as the Secretary of State
30
considers appropriate in connection with the coming into force of any
provision of this Act.
(2)
The Secretary of State may by order made by statutory instrument make such
consequential provision (including provision amending, repealing or revoking
any legislation passed or made before, or in the same Session as, this Act) as the
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Secretary of State considers appropriate in connection with any provision of
this Act.
(3)
A statutory instrument containing an order under subsection (2) that amends
or repeals an Act may not be made unless a draft of the instrument has been
laid before, and approved by a resolution of, each House of Parliament.
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(4)
Any other statutory instrument containing an order under subsection (2) is
subject to annulment in pursuance of a resolution of either House of
Parliament.
(5)
The powers under subsections (1) and (2) include power to make different
provision for different cases or descriptions of case, including different
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provision for different areas or different authorities.
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Financial provisions
There is to be paid out of money provided by Parliament—
(a)
any expenditure incurred by the Secretary of State in consequence of
this Act, and
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(b)
any increase attributable to this Act in the sums payable under any
other Act out of money so provided.
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Extent and short title
(1)
This Act extends to England and Wales only.
(2)
This Act may be cited as the Local Government Finance Act 2012.
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Local Government Finance Bill
Schedule 1 — Local retention of non-domestic rates

Schedules
Schedule 1
Section 1

Local retention of non-domestic rates

After Schedule 7A to the LGFA 1988 insert—
“Schedule 7B
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Section 59A

Local retention of non-domestic rates
Part 1
Main non-domestic rating accounts
Main non-domestic rating accounts
1     (1)
The Secretary of State must, for each year, keep an account, to be
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called a “main non-domestic rating account”.
      (2)
Each such account must be kept in accordance with the provisions
of this Schedule that apply to a main non-domestic rating account.
      (3)
The Secretary of State—
(a)
must keep each such account in such form as the Treasury
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may direct, and
(b)
must, at such time as the Treasury may direct, send copies
of each such account to the Comptroller and Auditor
General.
      (4)
The Comptroller and Auditor General—
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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 (3), and
(b)
must arrange for copies of the account and of the
Comptroller and Auditor General’s report on it to be laid
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before each House of Parliament.
Credits and debits
2     (1)
For each year the following are to be credited (as items of account)
to the main non-domestic rating account kept for the year—
(a)
amounts received by the Secretary of State in the year
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under section 54 (central rating: liability),
(b)
amounts received by the Secretary of State in the year
under section 59 (contributions in aid),

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Schedule 1 — Local retention of non-domestic rates
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(c)
amounts received by the Secretary of State in the year
under paragraph 6 (payments in respect of the central
share) and amounts received by the Secretary of State in
the year under regulations under paragraph 7
(administrative arrangements for such payments),
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(d)
amounts received by the Secretary of State in the year
under paragraph 12 (payments following local
government finance report),
(e)
amounts received by the Secretary of State in the year
under paragraph 15 (payments following amending
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report), and
(f)
amounts received by the Secretary of State in the year
under regulations under paragraph 31 (transitional
protection payments).
      (2)
For each year the following are to be debited (as items of account)
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to the main non-domestic rating account kept for the year—
(a)
payments made by the Secretary of State in the year under
regulations under paragraph 7,
(b)
payments made by the Secretary of State in the year under
paragraph 12,
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(c)
payments made by the Secretary of State in the year under
paragraph 15, and
(d)
payments made by the Secretary of State in the year under
regulations under paragraph 31.
      (3)
If a local government finance report for a year has been approved
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by resolution of the House of Commons, an amount may be
debited (as an item of account) to the main non-domestic rating
account kept for the year, for use for the purposes of local
government in England.
      (4)
The amount that may be debited under sub-paragraph (3) for a
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year may not exceed—
(a)
the total amount credited for the year under sub-
paragraph (1)(a), (b) and (c), minus
(b)
the total amount debited for the year under sub-paragraph
(2)(a).
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End of year calculations
3     (1)
As soon as is reasonably practicable after the end of each year, the
Secretary of State must calculate—
(a)
the aggregate of the items of account credited to the main
non-domestic rating account kept for the year, and
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(b)
the aggregate of the items of account debited to the main
non-domestic rating account kept for the year.
      (2)
If the aggregate mentioned in sub-paragraph (1)(a) exceeds that
mentioned in sub-paragraph (1)(b), an amount equal to the excess
must be—
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(a)
debited (as an item of account) to the main non-domestic
rating account kept for the year, and

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Schedule 1 — Local retention of non-domestic rates
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(b)
credited (as an item of account) to the main non-domestic
rating 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—
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(a)
credited (as an item of account) to the main non-domestic
rating account kept for the year, and
(b)
debited (as an item of account) to the main non-domestic
rating account kept for the next year.
Part 2
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Determination of the central and local share
Determination of the central and local share
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The Secretary of State must, for each year and in relation to each
billing authority in England, determine—
(a)
the percentage (“the central share”) that is to be the billing
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authority’s central share for the year for the purposes of
Part 3 (payments to the Secretary of State in respect of the
central share), and
(b)
the percentage (“the local share”) that is to be the billing
authority’s local share for the year for the purposes of Part
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4 (payments by billing authorities to major precepting
authorities).
Local government finance reports
5     (1)
A determination under paragraph 4 must be specified in a report,
to be called a “local government finance report”.
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      (2)
The Secretary of State must lay, or make arrangements for laying,
the local government finance report before the House of
Commons.
      (3)
As soon as is reasonably practicable after a local government
finance report is laid before the House of Commons, the Secretary
30
of State must send a copy of the report to each relevant authority.
Part 3
Payments to the Secretary of State in respect of the central share
Payments to the Secretary of State in respect of the central share
6     (1)
This paragraph applies if a local government finance report for a
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year is approved by resolution of the House of Commons.
      (2)
Each billing authority in England must make a payment for the
year to the Secretary of State of an amount equal to the central
share of the billing authority’s non-domestic rating income for the
year.
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      (3)
For the purposes of sub-paragraph (2), an authority’s “non-
domestic rating income” has the meaning given by regulations
made by the Secretary of State.
      (4)
The regulations may, in particular, define that term by reference to
the total which, if the authority acted diligently, would be payable
5
to it in respect of the year under sections 43 and 45, subject to such
adjustments as may be specified in the regulations.
      (5)
The regulations may, in particular, make provision for
adjustments by reference to changes to the calculation of the
amount of a billing authority’s non-domestic rating income for an
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earlier year but not taken into account in that calculation.
Regulations about administrative arrangements
7     (1)
The Secretary of State may by regulations make provision about
the administration of payments under paragraph 6.
      (2)
The regulations may, in particular, make provision—
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(a)
about the time and manner in which a payment under
paragraph 6 or under regulations under this paragraph is
to be made (including for payment by instalments), and as
to the consequences of non-payment;
(b)
about the making of a payment by a billing authority to the
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Secretary of State or vice versa where—
(i)
a payment under paragraph 6 is made in the course
of the year to which it relates, and
(ii)
it is subsequently determined that the amount of
the payment required to be made under that
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paragraph is more or less than that actually made.
Part 4
Payments by billing authorities to major precepting authorities
Regulations about payments
8     (1)
The Secretary of State may by regulations make provision
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requiring billing authorities in England to make payments for a
year to major precepting authorities in England.
      (2)
The regulations must provide that a billing authority is not
required to make a payment for a year unless the local
government finance report for the year has been approved by
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resolution of the House of Commons.
      (3)
The regulations may, in particular, make provision as to—
(a)
the billing authorities that are required to make payments
under the regulations;
(b)
the major precepting authorities that are entitled to receive
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payments under the regulations;
(c)
the amounts of the payments that are required to be made.
      (4)
The regulations may, in particular, make provision for the amount
of a payment to be made by a billing authority for a year to be such

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proportion of the local share of its non-domestic rating income for
the year as is specified in or determined in accordance with the
regulations.
      (5)
For the purposes of sub-paragraph (4), an authority’s “non-
domestic rating income” has the meaning given by the
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regulations.
      (6)
The regulations may, in particular, define that term by reference to
the total which, if the authority acted diligently, would be payable
to it in respect of the year under sections 43 and 45, subject to such
adjustments as may be specified in the regulations.
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      (7)
The regulations may, in particular, make provision for
adjustments by reference to changes to the calculation of the
amount of a billing authority’s non-domestic rating income for an
earlier year but not taken into account in that calculation.
Regulations about administrative arrangements
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9     (1)
The Secretary of State may by regulations make provision about
the administration of payments under regulations under
paragraph 8.
      (2)
The regulations may, in particular, make provision—
(a)
about the making of calculations, and the supply of
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information to a major precepting authority, by a billing
authority in connection with the determination of a
payment to be made under regulations under paragraph 8
or this paragraph;
(b)
about the assumptions and adjustments to be made, and
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the information to be taken into account, in making such
calculations;
(c)
about the consequences of non-compliance with provision
under paragraph (a) or (b);
(d)
about the time and manner in which a payment under
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regulations under paragraph 8 or this paragraph is to be
made (including for payment by instalments), and as to the
consequences of non-payment;
(e)
about the making of a payment by a billing authority to a
major precepting authority or vice versa where—
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(i)
a payment under regulations under paragraph 8 is
made in the course of the year to which it relates,
and
(ii)
it is subsequently determined that the amount of
the payment required to be made under the
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regulations is more or less than that actually made;
(f)
for the audit of calculations made, or information supplied
to a major precepting authority, by a billing authority in
connection with the determination of a payment under
regulations under paragraph 8 or this paragraph;
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(g)
about the consequences where a calculation or information
certified by the audit does not match that made or supplied
by the billing authority, including (in particular) about the
use of the certified calculation or information.