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Localism BillPage 50

estimates will accrue to it in respect of any precept issued by it,
and

(b) the amount of the financial reserves which the authority
estimates that it will use in order to provide for the items
5mentioned in paragraphs (a) and (b) of subsection (2) above.

(4) If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.

(5) 10In making the calculation under subsection (2) above the authority
must ignore payments which must be met from a trust fund.

(6) In estimating under subsection (2)(a) above an authority must take into
account—

(a) the amount of any expenditure which it estimates it will incur
15in the year in making any repayments of grants or other sums
paid to it by the Secretary of State, and

(b) in the case of authority which is a county council, the amount of
any levy issued to it for the year.

(7) But (except as provided by regulations under section 74 of the 1988 Act)
20the authority must not anticipate a levy not issued.

(8) For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—

(a) that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
25account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available—

(i) sums which will be payable to it for the year, and

(ii) sums in respect of which amounts will be credited to a
30revenue account for the year in accordance with proper
practices, and

(b) that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
35charged to a revenue account for that or any other year in
accordance with proper practices.

(9) In making the calculation under subsection (3) above the authority
must ignore payments which must be made into a trust fund.

(10) In estimating under subsection (3)(a) the authority must take into
40account the sums which the authority estimates will be paid to it in the
year by billing authorities in accordance with regulations under section
99(3) of the 1988 Act.

(11) The Secretary of State may by regulations do one or both of the
following—

(a) 45alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);

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(b) alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
subsections (5) to (10) above, or any of them, or by adding other
provisions, or by a combination of those methods).

(12) 5This section is subject to section 52ZT below (which requires a direction
to a major precepting authority that the referendum provisions in
Chapter 4ZA are not to apply to the authority for a financial year to
state the amount of the authority’s council tax requirement for the
year).

42B 10Calculation of basic amount of tax by authorities in England

(1) In relation to each financial year a major precepting authority in
England must calculate the basic amount of its council tax by applying
the formula—


15where—

  • R is the amount calculated (or last calculated) by the authority
    under section 42A(4) above as its council tax requirement for
    the year;

  • T is the aggregate of the amounts which are calculated by the
    20billing authorities to which the authority issues precepts (“the
    billing authorities concerned”) as their council tax bases for the
    year for their areas, or (as the case may require) for the parts of
    their areas falling within the authority’s area, and are notified
    by them to the authority within the prescribed period.

(2) 25Where the aggregate calculated (or last calculated) by the authority for
the year under subsection (2) of section 42A above does not exceed that
so calculated under subsection (3) of that section, the amount for item
R in subsection (1) above is to be nil.

(3) The Secretary of State must make regulations containing rules for
30making for any year the calculation required by item T in subsection (1)
above; and the billing authorities concerned must make the calculations
for any year in accordance with the rules for the time being effective (as
regards the year) under the regulations.

(4) Regulations prescribing a period for the purposes of item T in
35subsection (1) above may provide that, in any case where a billing
authority fails to notify its calculation to the precepting authority
concerned within that period, that item must be determined in the
prescribed manner by such authority or authorities as may be
prescribed.

(5) 40The Secretary of State may by regulations do either or both of the
following—

(a) alter the constituents of any calculation to be made under
subsection (1) above (whether by adding, deleting or amending
items);

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(b) provide for rules governing the making of any calculation
under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).

63 5Calculation of council tax requirement by the Greater London Authority

(1) Section 85 of the Greater London Authority Act 1999 (calculation of component
and consolidated budget requirements) is amended as follows.

(2) In the section heading for “budget” substitute “council tax”.

(3) In subsection (1) for “43” substitute “42A”.

(4) 10In subsection (4)—

(a) in paragraph (a) for the words from “, other than” to “the 1988 Act”
substitute “in accordance with proper practices”, and

(b) in paragraph (b)—

(i) for “expenditure to be charged” substitute “amounts to be
15charged or credited”, and

(ii) after “for the year” insert “in accordance with proper practices”.

(5) In subsection (5) for paragraph (a) substitute—

(a) the income which the Authority estimates will accrue to or for
the body in the year and which will be credited to a revenue
20account for the year in accordance with proper practices, other
than income which the Authority estimates will accrue in
respect of any precept issued by it;.

(6) In subsection (6)(b) for “budget” substitute “council tax”.

(7) In subsection (7) for “budget” substitute “council tax”.

(8) 25In subsection (8) for “budget” in both places substitute “council tax”.

(9) Omit subsection (9).

(10) Section 86 of that Act (provisions supplemental to section 85) is amended as
follows.

(11) After subsection (1) insert—

(1A) 30In making any calculation under subsection (4) of section 85 above the
Authority shall ignore payments which must be met from a trust fund.

(1B) In estimating under subsection (4)(a) of section 85 above—

(a) in the case of any functional body, the Authority shall take into
account the amount of any expenditure which it estimates will
35be incurred in the year in respect of the body under section 43(1)
of the Local Government Act 2003 or in paying any BID levy for
which the body is liable, and

(b) in the case of the Mayor, the Authority shall take into account
the amount of any expenditure which it estimates will be
40incurred in the year in respect of the Authority under section
43(1) of the Local Government Act 2003 or in paying any BID
levy for which the Authority is liable.

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(12) After subsection (2A) insert—

(2B) In estimating under subsection (4)(a) of section 85 above in the case of
the Mayor, the Authority shall take into account the amount of any
expenditure which the Authority estimates it will incur in the year in
5pursuance of regulations under section 99(3) of the Local Government
Finance Act 1988.

(13) After subsection (4) insert—

(4A) In making any calculation under subsection (5) of section 85 above, the
Authority must ignore payments which must be made into a trust fund.

(4B) 10In estimating under subsection (5)(a) of section 85 above in the case of
the Mayor, the Authority shall take into account—

(a) the amounts which the Authority estimates will be paid to it in
the year by billing authorities in accordance with regulations
under section 99(3) of the Local Government Finance Act 1988,
15and

(b) the amount of any expenditure which it estimates will be
incurred in the year by the Authority in making any
repayments of grants or other sums paid to the Authority by the
Secretary of State.

(4C) 20In estimating under subsection (5)(a) of section 85 above in the case of
a functional body, the Authority shall take into account the amount of
any expenditure which it estimates will be incurred in the year in
making by or in respect of the body any repayments of grants or other
sums paid to or for the body by the Secretary of State.

(4D) 25In estimating under subsection (5)(a) of section 85 above in the case of
the Mayor’s Office for Policing and Crime, the Authority must use such
amounts as may be prescribed by the Secretary of State as the sums that
are payable to the Mayor’s Office for Policing and Crime in respect of
the following items—

(a) 30redistributed non-domestic rates,

(b) revenue support grant,

(c) general GLA grant, and

(d) additional grant.

(4E) In subsection (4D) above, “prescribed” means specified in, or
35determined in accordance with, either—

(a) the appropriate report or determination, or

(b) regulations made by the Secretary of State,

as the Secretary of State may determine in the case of any particular
item and any particular financial year or years.

(4F) 40In subsection (4E) above, “the appropriate report or determination”
means—

(a) in the case of an item specified in paragraph (a) or (b) of
subsection (4D), the local government finance report for the
financial year in question,

(b) 45in the case of the item specified in paragraph (c) of that
subsection, the determination under section 100 below for the
financial year in question, and

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(c) in the case of the item specified in paragraph (d) of that
subsection, the report under section 85 of the Local Government
Finance Act 1988 relating to that item.

(14) In subsection (5)(b) for “(4)” substitute “(4F)”.

(15) 5Omit subsection (6).

64 Calculation of basic amount of tax by the Greater London Authority

(1) Section 88 of the Greater London Authority Act 1999 (calculation of basic
amount of tax) is amended as follows.

(2) In subsection (1) for “44” substitute “42B”.

(3) 10For subsection (2) substitute—

(2) In relation to each financial year the Authority shall calculate the basic
amount of its council tax by applying the formula—


where—

  • 15R is the amount calculated (or last calculated) by the Authority
    under section 85(8) above as its consolidated council tax
    requirement for the year;

  • A is the amount of the special item;

  • T is the aggregate of the amounts which are calculated by the
    20billing authorities to which the Authority issues precepts (“the
    billing authorities concerned”) as their council tax bases for the
    year for their areas and are notified by them to the Authority
    within the prescribed period.

(4) Omit subsections (3) to (5).

(5) 25In subsection (8) for paragraph (b) substitute—

(b) provide for rules governing the making of any calculation
under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).

(6) 30Section 89 of that Act (additional calculations: special item for part of Greater
London) is amended as follows.

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(7) For subsection (4) substitute—

(4) For dwellings in any part of Greater London to which the special item
relates, the amount in respect of the special item is given by the
formula—


5

where—

  • S2 is the amount of the special item;

  • TP2 is the aggregate of the amounts which are calculated by the
    billing authorities to which the Authority has power to issue
    10precepts as respects the special item (“the billing authorities
    concerned”) as their council tax bases for the year for their areas
    and are notified by them to the Authority within the prescribed
    period.

(8) Omit subsections (5) and (6).

(9) 15In subsection (9) for paragraph (b) substitute—

(b) provide for rules governing the making of any calculation
under or by virtue of that subsection (whether by adding
provisions to, or deleting or amending provisions of, this
section, or by a combination of those methods).

65 20Council tax calculation by local precepting authorities in England

Before section 50 of the Local Government Finance Act 1992 insert—

49A Calculation of council tax requirement by authorities in England

(1) In relation to each financial year a local precepting authority in England
must make the calculations required by this section.

(2) 25The authority must calculate the aggregate of—

(a) the expenditure the authority estimates it will incur in the year
in performing its functions and will charge to a revenue account
for the year in accordance with proper practices,

(b) such allowance as the authority estimates will be appropriate
30for contingencies in relation to amounts to be charged or
credited to a revenue account for the year in accordance with
proper practices,

(c) the financial reserves which the authority estimates it will be
appropriate to raise in the year for meeting its estimated future
35expenditure, and

(d) such financial reserves as are sufficient to meet so much of the
amount estimated by the authority to be a revenue account
deficit for any earlier financial year as has not already been
provided for.

(3) 40The authority must calculate the aggregate of—

(a) the income which it estimates will accrue to it in the year and
which it will credit to a revenue account for the year in

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accordance with proper practices, other than income which it
estimates will accrue to it in respect of any precept issued by it,
and

(b) the amount of the financial reserves which the authority
5estimates that it will use in order to provide for the items
mentioned in paragraphs (a) and (b) of subsection (2) above.

(4) If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
10council tax requirement for the year.

(5) For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—

(a) that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
15account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available, namely, sums—

(i) which will be payable to it for the year, and

(ii) in respect of which amounts will be credited to a
20revenue account for the year in accordance with proper
practices, and

(b) that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
25charged to a revenue account for that or any other year in
accordance with proper practices.

(6) This section is subject to section 52ZV below (which requires a direction
to a local precepting authority that the referendum provisions in
Chapter 4ZA are not to apply to the authority for a financial year to
30state the amount of the authority’s council tax requirement for the
year).

49B Substitute calculations

(1) A local precepting authority which has made calculations in
accordance with section 49A above in relation to a financial year
35(originally or by way of substitute) may make calculations in
substitution in relation to the year in accordance with that section.

(2) None of the substitute calculations are to have any effect if the amount
calculated under section 49A(4) above would exceed that so calculated
in the previous calculations.

(3) 40Subsection (2) above does not apply if the previous calculation under
subsection (4) of section 49A above has been quashed because of a
failure to comply with that section in making the calculation.

66 Council tax: minor and consequential amendments

Schedule 7 (council tax: minor and consequential amendments) has effect.

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67 Council tax revaluations in Wales

(1) The Local Government Finance Act 1992 is amended as follows.

(2) In section 22B(3) (new Welsh valuation lists to be prepared on earlier of tenth
anniversary of compilation of previous list and 1 April in such year as may be
5specified by the Welsh Ministers) for the words from “the earlier” to the end
substitute “1 April in each year specified by order made by the Welsh
Ministers.”

(3) In section 22B (compilation and maintenance of new valuation lists) after
subsection (11) insert—

(12) 10No order under subsection (3) may be made unless a draft of the
statutory instrument containing it has been laid before, and approved
by a resolution of, the National Assembly for Wales.

(4) In section 113(1) and (2) (orders and regulations may make differential and
incidental etc provision) for “National Assembly for Wales” substitute “Welsh
15Ministers”.

(5) In section 113(2) for “, they or it thinks” substitute “or they think”.

(6) In section 113(4) (power of National Assembly for Wales to make orders or
regulations is exercisable by statutory instrument) for “National Assembly for
Wales” substitute “Welsh Ministers”.

CHAPTER 3 20Community right to challenge

68 Duty to consider expression of interest

(1) A relevant authority must consider an expression of interest in accordance
with this Chapter if—

(a) it is submitted to the authority by a relevant body, and

(b) 25it is made in writing and complies with such other requirements for
expressions of interest as the Secretary of State may specify by
regulations.

This is subject to section 69 (timing of expressions of interest).

(2) In this Chapter “relevant authority” means—

(a) 30a county council in England,

(b) a district council,

(c) a London borough council, or

(d) such other person or body carrying on functions of a public nature as
the Secretary of State may specify by regulations.

(3) 35In this Chapter “expression of interest”, in relation to a relevant authority,
means an expression of interest in providing or assisting in providing a
relevant service on behalf of the authority.

(4) In this Chapter “relevant service”, in relation to a relevant authority, means a
service provided by or on behalf of that authority in the exercise of any of its
40functions, other than a service of a kind specified in regulations made by the
Secretary of State.

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(5) In this Chapter “relevant body” means—

(a) a voluntary or community body,

(b) a body of persons or a trust which is established for charitable purposes
only,

(c) 5a parish council,

(d) in relation to a relevant authority, two or more employees of that
authority, or

(e) such other person or body as may be specified by the Secretary of State
by regulations.

(6) 10For the purposes of subsection (5) “voluntary body” means a body, other than
a public or local authority, the activities of which are not carried on for profit.

(7) The fact that a body’s activities generate a surplus does not prevent it from
being a voluntary body for the purposes of subsection (5) so long as that
surplus is used for the purposes of those activities or invested in the
15community.

(8) For the purposes of subsection (5) “community body” means a body that
carries on activities primarily for the benefit of the community.

(9) The Secretary of State may by regulations—

(a) amend or repeal any of paragraphs (a) to (d) of subsection (5);

(b) 20amend or repeal any of subsections (6) to (8);

(c) make other amendments to this Chapter (including amendments to any
power to make regulations) in consequence of provision made under
subsection (2)(d) or (5)(e) or paragraph (a) or (b) of this subsection.

69 Timing of expressions of interest

(1) 25Subject as follows, a relevant body may submit an expression of interest to a
relevant authority at any time.

(2) A relevant authority may specify periods during which expressions of interest,
or expressions of interest in respect of a particular relevant service, may be
submitted to the authority.

(3) 30The relevant authority must publish details of each specification under
subsection (2) in such manner as it thinks fit (which must include publication
on the authority’s website).

(4) The relevant authority may refuse to consider an expression of interest
submitted outside a period specified under subsection (2).

(5) 35The Secretary of State may by regulations specify minimum periods that may
be specified by relevant authorities under subsection (2).

70 Consideration of expression of interest

(1) The relevant authority must—

(a) accept the expression of interest, or

(b) 40reject the expression of interest.

This is subject to section 71(1) (modification of expression of interest).

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(2) If the relevant authority accepts the expression of interest it must carry out a
procurement exercise relating to the provision on behalf of the authority of the
relevant service to which the expression of interest relates.

(3) The exercise required by subsection (2) must be such as is appropriate having
5regard to the value and nature of the contract that may be awarded as a result
of the exercise.

(4) The Secretary of State may by regulations specify—

(a) the minimum period that must elapse between the date of the relevant
authority’s decision to accept an expression of interest and the date on
10which it begins the exercise referred to in subsection (2), and

(b) the maximum period that may elapse between those dates.

(5) A relevant authority must, in considering an expression of interest, consider
whether acceptance of the expression of interest would promote or improve
the social, economic or environmental well-being of the authority’s area.

(6) 15A relevant authority must, in carrying out the exercise referred to in subsection
(2), consider how it might promote or improve the social, economic or
environmental well-being of the authority’s area by means of that exercise.

(7) Subsection (6) applies only so far as is consistent with the law applying to the
awarding of contracts for the provision on behalf of the authority of the
20relevant service in question.

(8) The relevant authority may reject the expression of interest only on one or
more grounds specified by the Secretary of State by regulations.

71 Consideration of expression of interest: further provisions

(1) A relevant authority that is considering an expression of interest from a
25relevant body may modify the expression of interest.

(2) A relevant authority may exercise the power in subsection (1) only if—

(a) the authority thinks that the expression of interest would not otherwise
be capable of acceptance, and

(b) the relevant body agrees to the modification.

(3) 30A relevant authority must make a decision in respect of an expression of
interest within such time as may be specified by the Secretary of State by
regulations.

(4) The relevant authority must—

(a) notify the relevant body in writing of the decision within such time as
35may be specified by the Secretary of State by regulations, and

(b) if the authority’s decision is to modify or reject the expression of
interest, give reasons for that decision in the notification.

(5) The relevant authority must publish the notification in such manner as it thinks
fit (which must include publication on the authority’s website).

(6) 40A relevant body may withdraw an expression of interest after submitting it to
a relevant authority (whether before or after a decision has been made by the
authority in respect of the expression of interest).

(7) The withdrawal of an expression of interest, or the refusal of a relevant body to
agree to modification of an expression of interest, does not prevent the relevant

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