Localism Bill (HL Bill 71)

(c) make provision for references to the Board in an instrument or
document to be treated on and after such a date as references to such
person as the order may specify;

(d) make provision for the payment of compensation by the Secretary of
5State to persons affected by the provisions it makes about the
property, rights and liabilities of the Board.

Power to give directions in connection with the abolition of Standards Board for England

57 (1) The Secretary of State may direct the Board to take such steps as the
Secretary of State may specify in connection with the abolition of the Board.

(2) 10The Secretary of State may, in particular give directions to the Board about
information held by the Board, including—

(a) directions requiring information to be transferred to another person
(including to the Secretary of State);

(b) directions requiring information to be destroyed or made
15inaccessible.

(3) The Secretary of State may make available to the Board such facilities as the
Board may reasonably require for exercising its functions by virtue of this
Part of this Schedule.

(4) The Secretary of State may exercise a function of the Board for the purposes
20of taking steps in connection with its abolition (including functions by virtue
of an order under paragraph 56).

(5) Sub-paragraph (4) does not prevent the exercise of the function by the Board.

(6) In the case of a duty of the Board, sub-paragraph (4) permits the Secretary of
State to comply with that duty on behalf of the Board but does not oblige the
25Secretary of State to do so.

Final statement of accounts

58 (1) As soon as is reasonably practicable after the abolition date, the Secretary of
State must prepare—

(a) a statement of the accounts of the Board for the last financial year to
30end before the abolition date, and

(b) a statement of the accounts of the Board for the period (if any)
beginning immediately before the end of that financial year and
ending immediately before the abolition date.

(2) The Secretary of State must, as soon as is reasonably practicable after
35preparing a statement under this paragraph, send a copy of it to the
Comptroller and Auditor General.

(3) The Comptroller and Auditor General must—

(a) examine, certify and report on the statement, and

(b) lay a copy of the statement and the report before each House of
40Parliament.

(4) Sub-paragraph (1)(a) does not apply if the Board has already sent a copy of
its statement of accounts for the year to the Comptroller and Auditor
General.

(5) In such a case the repeal of paragraph 13(4B) of Schedule 4 to the Local
Government Act 2000 does not remove the obligation of the Comptroller
and Auditor General to take the steps specified in that provision in relation
to the statement of accounts if the Comptroller has not already done so.

5Disclosure of information

59 (1) Section 63 of the Local Government Act 2000 applies in relation to
information obtained by a person who is exercising a function of the Board
by virtue of paragraph 57(4) as it applies to information obtained by an
ethical standards officer.

(2) 10That section has effect (in relation to information to which it applies apart
from sub-paragraph (1) as well as to information to which it applies by
virtue of that sub-paragraph) as if it permitted the disclosure of information
for the purposes of the abolition of the Board.

(3) The repeal by Part 1 of that section, or of any provision by virtue of which it
15is applied to information obtained other than by ethical standards officers,
does not affect its continuing effect in relation to information to which it
applied before its repeal (including by virtue of this paragraph).

Interpretation

60 In this Part of this Schedule—

• 20“the abolition date” means the date on which paragraphs 16 and 52
  (repeal of section 57 of and Schedule 4 to the Local Government Act
  2000) come fully into force;

• “the Board” has the meaning given by paragraph 56(1);

• “financial year” means the period of 12 months ending with 31st March
  25in any year.

Section 59

SCHEDULE 5 New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992

This is the Chapter referred to in section 59(1)—

“CHAPTER 4ZA Referendums relating to council tax increases

30Interpretation of Chapter

52ZA Interpretation of Chapter

(1) In this Chapter—

(a) a reference to a billing authority is to a billing authority in
England,

(b) 35a reference to a major precepting authority is to a major
precepting authority in England, and

(c) a reference to a local precepting authority is to a local
precepting authority in England.

(2) In this Chapter—

(a) a reference to an authority is to an authority of a kind
mentioned in subsection (1) above;

(b) a reference to a precepting authority is to an authority of a
5kind mentioned in subsection (1)(b) or (c) above.

(3) Section 52ZX defines references in this Chapter to an authority’s
relevant basic amount of council tax.

Determination of whether increase excessive

52ZB Duty to determine whether council tax excessive

(1) 10A billing authority must determine whether its relevant basic
amount of council tax for a financial year is excessive.

(2) Sections 52ZF to 52ZI (duty to hold referendum etc in case of
excessive council tax increase by billing authority) apply where the
amount mentioned in subsection (1) is excessive.

(3) 15A major precepting authority must determine whether its relevant
basic amount of council tax for a financial year is excessive.

(4) Sections 52ZJ and 52ZK and 52ZN to 52ZP (duty to hold referendum
etc in case of excessive council tax increase by major precepting
authority) apply where an amount mentioned in subsection (3) is
20excessive.

(5) A local precepting authority must determine whether its relevant
basic amount of council tax for a financial year is excessive.

(6) Sections 52ZL to 52ZP (duty to hold referendum etc in case of
excessive council tax increase by local precepting authority) apply
25where the amount mentioned in subsection (5) is excessive.

(7) A determination under this section for a financial year must be made
as soon as is reasonably practicable after principles under section
52ZC for that year are approved by a resolution of the House of
Commons under section 52ZD.

52ZC 30Determination of whether increase is excessive

(1) The question whether an authority’s relevant basic amount of
council tax for a financial year (“the year under consideration”) is
excessive must be decided in accordance with a set of principles
determined by the Secretary of State for the year.

(2) 35A set of principles—

(a) may contain one principle or two or more principles;

(b) must constitute or include a comparison falling within
subsection (3).

(3) A comparison falls within this subsection if it is between—

(a) 40the authority’s relevant basic amount of council tax for the
year under consideration, and

(b) the authority’s relevant basic amount of council tax for the
financial year immediately preceding the year under
consideration.

(4) If for the purposes of this section the Secretary of State determines
categories of authority for the year under consideration—

(a) any principles determined for the year must be such that the
same set is determined for all authorities (if more than one)
5falling within the same category;

(b) as regards an authority which does not fall within any of the
categories, the authority’s relevant basic amount of council
tax for the year is not capable of being excessive for the
purposes of this Chapter.

(5) 10If the Secretary of State does not determine such categories, any
principles determined for the year under consideration must be such
that the same set is determined for all authorities.

(6) A principle that applies to the Greater London Authority and that
constitutes or includes a comparison falling within subsection (3)
15may only provide for—

(a) a comparison between unadjusted relevant basic amounts of
council tax,

(b) a comparison between adjusted relevant basic amounts of
council tax, or

(c) 20a comparison within paragraph (a) and a comparison within
paragraph (b).

(7) In determining categories of authorities for the year under
consideration the Secretary of State must take into account any
information that the Secretary of State thinks is relevant.

52ZD 25Approval of principles

(1) The principles for a financial year must be set out in a report which
must be laid before the House of Commons.

(2) If a report for a financial year is not laid before the specified date or,
if so laid, is not approved by resolution of the House of Commons on
30or before the specified date—

(a) no principles have effect for that year, and

(b) accordingly, no authority’s relevant basic amount of council
tax for the year is capable of being excessive for the purposes
of this Chapter.

(3) 35If the Secretary of State does not propose to determine a set of
principles for a financial year, the Secretary of State must lay a report
before the House of Commons before the specified date giving the
Secretary of State’s reasons for not doing so.

(4) In this section “the specified date”, in relation to a financial year,
40means the date on which the local government finance report for the
year under section 78A of the 1988 Act is approved by resolution of
the House of Commons.

52ZE Alternative notional amounts

(1) The Secretary of State may make a report specifying an alternative
45notional amount in relation to any year under consideration and any
authority.

(2) An alternative notional amount is an amount which the Secretary of
State thinks should be used as the basis of any comparison in
applying section 52ZC in place of the authority’s relevant basic
amount of council tax for the preceding year.

(3) 5A report under this section—

(a) may relate to two or more authorities;

(b) may be amended by a subsequent report under this section;

(c) must contain such explanation as the Secretary of State thinks
desirable of the need for the calculation of the alternative
10notional amount and the method for that calculation;

(d) must be laid before the House of Commons.

(4) Subsection (5) applies if a report under this section for a financial
year is approved by resolution of the House of Commons on or
before the date on which the report under section 52ZD for that year
15is approved by resolution of the House of Commons.

(5) Section 52ZC above has effect, as regards the year under
consideration and any authority to which the report relates, as if the
reference in subsection (3) of that section to the authority’s relevant
basic amount of council tax for the financial year immediately
20preceding the year under consideration were a reference to the
alternative notional amount for that year.

(6) In this section “year under consideration” has the same meaning as
in section 52ZC.

Excessive increase in council tax by billing authority

52ZF 25Billing authority’s duty to make substitute calculations

(1) The billing authority must make substitute calculations for the
financial year in compliance with this section; but those calculations
do not have effect for the purposes of Chapter 3 above except in
accordance with sections 52ZH and 52ZI below.

(2) 30Substitute calculations for a financial year comply with this section
if—

(a) they are made in accordance with sections 31A, 31B and 34 to
36 above, ignoring section 31A(11) above for this purpose,

(b) the relevant basic amount of council tax produced by
35applying section 52ZX below to the calculations is not
excessive by reference to the principles determined by the
Secretary of State under section 52ZC above for the year, and

(c) they are made in accordance with this section.

(3) In making the substitute calculations, the authority must—

(a) 40use the amount determined in the previous calculation for
the year under section 31A(3) above so far as relating to
amounts which the authority estimates it will accrue in the
year in respect of redistributed non-domestic rates, revenue
support grant, additional grant, special grant or (in the case
45of the Common Council only) police grant, and

(b) use the amount determined in the previous calculation for
the year for item T in section 31B(1) above and (where
applicable) item TP in section 34(3) above.

(4) For the purposes of subsection (2) above the authority may treat any
5amount determined in the previous calculation under section 31A(3)
above as increased by the amount of any sum which—

(a) it estimates it will accrue in the year in respect of additional
grant, and

(b) was not taken into account by it in making the previous
10calculation.

52ZG Arrangements for referendum

(1) The billing authority must make arrangements to hold a referendum
in relation to the authority’s relevant basic amount of council tax for
the financial year in accordance with this section.

(2) 15Subject as follows, the referendum is to be held on a date decided by
the billing authority.

(3) That date must be not later than—

(a) the first Thursday in May in the financial year, or

(b) such other date in that year as the Secretary of State may
20specify by order.

(4) An order under subsection (3) must be made not later than—

(a) 1 February in the financial year preceding the year
mentioned in paragraph (b) of that subsection, or

(b) in the case of an order affecting more than one financial year,
251 February in the financial year preceding the first of those
years.

(5) The persons entitled to vote in the referendum are those who, on the
day of the referendum—

(a) would be entitled to vote as electors at an election for
30members for an electoral area of the billing authority, and

(b) are registered in the register of local government electors at
an address within the billing authority’s area.

(6) In this section—

• “electoral area” means—

  (a)

  35where the billing authority is a district council, a
  London borough council or the Common Council of
  the City of London, a ward;

  (b)

  where the billing authority is a county council, an
  electoral division;

  (c)

  40where the billing authority is the Council of the Isles
  of Scilly, a parish;

• “register of local government electors” means—

  (a)

  the register of local government electors kept in
  accordance with the provisions of the Representation
  45of the People Acts, or

  (b)

  in relation to the Common Council of the City of
  London, a ward list published under section 7 of the

  Localism BillPage 266

  City of London (Various Powers) Act 1957 (5 & 6 Eliz
  2 c x).

(7) This section is subject to regulations under section 52ZQ below.

52ZH Effect of referendum

(1) 5The billing authority must inform the Secretary of State of the result
of the referendum.

(2) Subsection (3) applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is
approved by a majority of persons voting in the referendum.

(3) 10The authority’s calculations from which that amount was derived
continue to have effect for that year for the purposes of this Act.

(4) Subsection (5) applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is not
approved by a majority of persons voting in the referendum.

(5) 15The substitute calculations made in relation to the year under section
52ZF above have effect in relation to the authority and the financial
year.

52ZI Failure to hold referendum

(1) If the billing authority fails to hold a referendum in accordance with
20this Chapter, the substitute calculations made in relation to the year
under section 52ZF above have effect in relation to the authority and
the financial year.

(2) If the authority has not made those substitute calculations, during
the period of restriction the authority has no power to transfer any
25amount from its collection fund to its general fund; and sections 97
and 98 of the 1988 Act have effect accordingly.

(3) In subsection (2) “the period of restriction” means the period—

(a) beginning with the latest date on which the referendum
could have been held, and

(b) 30ending with the date (if any) when the billing authority
makes the substitute calculations.

Excessive increase in council tax by precepting authority

52ZJ Major precepting authority’s duty to make substitute calculations

(1) The major precepting authority must make substitute calculations
35for the financial year in compliance with this section.

(2) Substitute calculations made for a financial year by a major
precepting authority other than the Greater London Authority
comply with this section if—

(a) they are made in accordance with sections 42A, 42B and 45 to
4048 above,

(b) the relevant basic amount of council tax for the year
produced by the calculations is not excessive by reference to
the principles determined by the Secretary of State under
section 52ZC above for the year, and

(c) they are made in accordance with this section.

(3) Substitute calculations made for a financial year by the Greater
London Authority comply with this section if—

(a) they are made by applying the relevant London provisions
5and sections 47 and 48 above to the Authority’s substitute
consolidated council tax requirement for the year, and

(b) they are made in accordance with this section.

(4) In making the substitute calculations, a major precepting authority
other than the Greater London Authority must—

(a) 10use the amount determined in the previous calculation under
section 42A(3) above so far as relating to amounts which the
authority estimates it will accrue in the year in respect of
redistributed non-domestic rates, revenue support grant,
additional grant, special grant or police grant, and

(b) 15use the amount determined in the previous calculation for
item T in section 42B(1) above or (where applicable) item TP
in section 45(3) above.

(5) For the purposes of subsection (2) above the authority may treat any
amount determined in the previous calculation under section 42A(3)
20above as increased by the amount of any sum which—

(a) it estimates it will accrue in the year in respect of additional
grant, and

(b) was not taken into account by it in making the previous
calculation.

(6) 25In making the substitute calculations, the Greater London Authority
must use any amount determined in the previous calculations for
item T in section 88(2) of the Greater London Authority Act 1999 or
for item TP2 in section 89(4) of that Act.

(7) In this Chapter—

• 30“the relevant London provisions” means sections 88 and (where
  applicable) 89 of the Greater London Authority Act 1999;

• “the Authority’s substitute consolidated council tax
  requirement”, in relation to a financial year, means the
  Authority’s substitute consolidated council tax
  35requirement—

  (a)

  agreed under Schedule 6 to the Greater London
  Authority Act 1999, or

  (b)

  set out in its substitute consolidated budget as agreed
  under that Schedule,

  40as the case may be.

52ZK Major precepting authority’s duty to notify appropriate billing
authorities

(1) The major precepting authority must notify each appropriate billing
authority—

(a) 45that its relevant basic amount of council tax for a financial
year is excessive, and

(b) that the billing authority is required to hold a referendum in
accordance with this Chapter.

(2) A notification under this section must include a precept in
accordance with the following provisions; but that precept does not
have effect for the purposes of Chapters 3 and 4 above except in
accordance with sections 52ZO and 52ZP below.

(3) 5A precept issued to a billing authority under this section by a major
precepting authority other than the Greater London Authority must
state—

(a) the amount which, in relation to the year and each category
of dwellings in the billing authority’s area, has been
10calculated by the precepting authority in accordance with
sections 42A, 42B and 45 to 47 above as applied by section
52ZJ above, and

(b) the amount which has been calculated by the precepting
authority in accordance with section 48 above as applied by
15section 52ZJ above as the amount payable by the billing
authority for the year.

(4) Dwellings fall within different categories for the purposes of
subsection (3) according as different calculations have been made in
relation to them as mentioned in paragraph (a) of that subsection.

(5) 20A precept issued to a billing authority under this section by the
Greater London Authority must state—

(a) the amount which, in relation to the year and each category
of dwellings in the billing authority’s area, has been
calculated by applying, in accordance with section 52ZJ
25above, the relevant London provisions and section 47 above
to the Authority’s substitute consolidated council tax
requirement, and

(b) the amount which has been calculated by the Authority in
accordance with section 48 above as applied by section 52ZJ
30above as the amount payable by the billing authority for the
year.

(6) Dwellings fall within different categories for the purposes of
subsection (5) according as different calculations have been made in
relation to them as mentioned in paragraph (a) of that subsection.

(7) 35A major precepting authority must assume for the purposes of
subsections (3) and (5) above that each of the valuation bands is
shown in the billing authority’s valuation list as applicable to one or
more dwellings situated in its area or (as the case may be) each part
of its area as respects which different calculations have been made.

(8) 40The Secretary of State must by regulations prescribe a date by which
a notification under this section must be made.

(9) This section does not require the Greater London Authority to notify
a billing authority to which this subsection applies unless the
Authority’s unadjusted relevant basic amount of council tax for the
45year is excessive.

(10) Subsection (9) applies to a billing authority if the special item within
the meaning of section 89(2) of the Greater London Authority Act
1999 does not apply to any part of the authority’s area.

52ZL Local precepting authority’s duty to make substitute calculations

(1) The local precepting authority must make substitute calculations for
the financial year in compliance with this section.

(2) Substitute calculations for a financial year comply with this section
5if—

(a) they are made in accordance with section 49A above, and

(b) the relevant basic amount of council tax produced by
applying section 52ZX below to the calculations is not
excessive by reference to the principles determined by the
10Secretary of State under section 52ZC above for the year.

52ZM Local precepting authority’s duty to notify appropriate billing
authority

(1) The local precepting authority must notify its appropriate billing
authority—

(a) 15that its relevant basic amount of council tax for a financial
year is excessive, and

(b) that the billing authority is required to hold a referendum in
accordance with this Chapter.

(2) A notification under this section must include a precept in
20accordance with subsection (3); but that precept does not have effect
for the purposes of Chapters 3 and 4 above except in accordance with
sections 52ZO and 52ZP below.

(3) The precept must state, as the amount payable by the billing
authority for the year, the amount which has been calculated by the
25local precepting authority under section 49A above as applied by
section 52ZL above.

(4) The Secretary of State must by regulations prescribe a date by which
the notification must be made.

52ZN Arrangements for referendum

(1) 30A billing authority that is notified under section 52ZK or 52ZM
above must make arrangements to hold a referendum in relation to
the precepting authority’s relevant basic amount of council tax for
the financial year in accordance with this section.

(2) Where the referendum is one of two or more referendums required
35to be held in respect of the same calculation, it is to be held on—

(a) the first Thursday in May in the financial year, or

(b) such other date as the Secretary of State may specify by order.

(3) Otherwise the referendum is to be held on a date decided by the
billing authority; but this is subject to subsection (4).

(4) 40That date must be not later than—

(a) the first Thursday in May in the financial year, or

(b) such other date in that year as the Secretary of State may
specify by order.

(5) An order under subsection (2) or (4) must be made not later than—