(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,
1 February in the financial year preceding the first of those
5years.

(6) 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
members for an electoral area of the billing authority that
10falls wholly or partly within the precepting authority’s area,
and

(b) are registered in the register of local government electors at
an address that is within both—

(i) the precepting authority’s area, and

(ii) 15the billing authority’s area.

(7) Subject to subsection (8), the billing authority may recover from the
precepting authority the expenses that are incurred by the billing
authority in connection with the referendum.

(8) The Secretary of State may by regulations make provision for cases
20in which—

(a) subsection (7) does not apply, or

(b) that subsection applies with modifications.

(9) In this section—

• “electoral area” means—

  (a)

  25in relation to a district council, a London borough
  council or the Common Council of the City of
  London, a ward;

  (b)

  in relation to a county council, an electoral division;

  (c)

  in relation to the Council of the Isles of Scilly, a parish;

• 30“register of local government electors” means—

  (a)

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

  (b)

  in relation to the Common Council of the City of
  35London, a ward list published under section 7 of the
  City of London (Various Powers) Act 1957 (5 & 6 Eliz
  2 c x).

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

52ZO Effect of referendum

(1) 40The precepting authority must inform the Secretary of State of the
result of the referendum or (as the case may be) each of them.

(2) Subsection (3) applies if—

(a) in a case where one referendum is held in respect of the
precepting authority’s relevant basic amount of council tax
45for the financial year, that amount is approved by a majority
of persons voting in the referendum, or

(b) in a case where two or more referendums are held in respect
of that amount, that amount is approved by a majority of
persons voting in all of those referendums taken together.

(3) The precepting authority’s calculations that include that amount or
5(as the case may be) from which that amount was derived continue
to have effect for the year for the purposes of this Act.

(4) Subsections (5) and (6) below applies if—

(a) in a case where one referendum is held in respect of the
precepting authority’s relevant basic amount of council tax
10for a financial year, that amount is not approved by a
majority of persons voting in the referendum, or

(b) in a case where two or more referendums are held in respect
of that amount, that amount is not approved by a majority of
persons voting in all of those referendums taken together.

(5) 15Any precept issued to a billing authority under section 52ZK or
52ZM above as part of a notification that triggered the referendum
has effect as a precept issued to that billing authority for the year for
the purposes of Chapter 3 above.

(6) Where the precept was issued to a billing authority by a local
20precepting authority under section 52ZM above, section 36A above
has effect in relation to the billing authority as if it required the
authority to make calculations in substitution on the basis of the
precept (rather than permitting it to do so).

(7) In the case of a major precepting authority other than the Greater
25London Authority, section 30 above has effect by virtue of subsection
(5) in relation to that precept as if—

(a) references to amounts calculated under Chapter 4 above
were to amounts calculated as mentioned in section 52ZJ(2)
above, and

(b) 30the reference to the amount stated in accordance with section
40 above were to the amount stated in accordance with
52ZK(3)(b) above.

(8) In the case of the Greater London Authority, section 30 above has
effect by virtue of subsection (5) in relation to that precept as if—

(a) 35references that are to be read as amounts calculated under
Chapter 1 of Part 3 of the Greater London Authority Act 1999
were to amounts calculated as mentioned in section 52ZJ(3)
above, and

(b) the reference to the amount stated in accordance with section
4040 above were to the amount stated in accordance with
52ZK(5)(b) above.

(9) If the precepting authority has already issued a precept for the
financial year (originally or by way of substitute) to the billing
authority—

(a) 45subsections (3) and (4) of section 42 above apply to the
precept within subsection (5) above as they apply to a precept
issued in substitution under that section, but

(b) the references in those subsections to the amount of the new
precept are to be read as references to the amount stated in

the precept within subsection (5) in accordance with section
52ZK(3)(b) or (5)(b).

52ZP Failure to hold referendum

(1) This section applies if a billing authority that is required to be
5notified by a precepting authority under section 52ZK or 52ZM fails
to hold a referendum in accordance with this Chapter.

(2) Subsections (3) to (6) apply if the precepting authority has failed to
notify the billing authority in accordance with section 52ZK or 52ZM.

(3) The precepting authority must issue a precept for the year to the
10billing authority in accordance with that section; and such a precept
has effect for the purposes of Chapter 3 above.

(4) During the period of restriction no billing authority to which the
precepting authority has power to issue a precept has power to pay
anything in respect of a precept issued by the precepting authority
15for the year.

(5) In subsection (4) “the period of restriction” means the period—

(a) beginning with the date on which the referendum would
have been required to be held or (as the case may be) the
latest date on which it could have been held if the notification
20had been made, and

(b) ending with the date (if any) when the precepting authority
complies with subsection (3).

(6) Where a precept under subsection (3) is issued to a billing authority
by a local precepting authority, section 36A above has effect in
25relation to the billing authority as if it required the authority to make
calculations in substitution on the basis of the precept (rather than
permitting it to do so).

(7) If the precepting authority has notified the billing authority in
accordance with section 52ZK or 52ZM, the precept issued to the
30billing authority under section 52ZK or 52ZM as part of the
notification has effect as a precept issued to that billing authority for
the year for the purposes of Chapter 3 above.

(8) Where the precept was issued to a billing authority by a local
precepting authority under section 52ZM above, section 36A above
35has effect in relation to the billing authority as if it required the
authority to make calculations in substitution on the basis of the
precept (rather than permitting it to do so).

(9) Subsections (7) to (9) of section 52ZO above apply to a precept within
subsection (3) or (7) above as they apply to a precept within
40subsection (5) of that section.

Regulations about referendums

52ZQ Regulations about referendums

(1) The Secretary of State may by regulations make provision as to the
conduct of referendums under this Chapter.

(2) 45The Secretary of State may by regulations make provision for—

(a) the combination of polls at two or more referendums under
this Chapter;

(b) the combination of polls at referendums under this Chapter
with polls at any elections or any referendums held otherwise
5than under this Chapter.

(3) Regulations under this section may apply or incorporate, with or
without modifications or exceptions, any provision of any enactment
(whenever passed or made) relating to elections or referendums.

(4) The provision which may be made under this section includes, in
10particular, provision—

(a) as to the question to be asked in a referendum;

(b) as to the publicity to be given in connection with a
referendum (including the publicity to be given with respect
to the consequences of the referendum and its result);

(c) 15about the limitation of expenditure in connection with a
referendum;

(d) as to the conduct of the authority, members of the authority
and officers of the authority in relation to a referendum
(including provision modifying the effect of section 2
20(prohibition of political publicity) of the Local Government
Act 1986);

(e) as to when, where and how voting in a referendum is to take
place;

(f) as to how the votes cast in a referendum are to be counted;

(g) 25for disregarding alterations in a register of electors;

(h) for the questioning of the result of a referendum by a court or
tribunal.

(5) But where the regulations apply or incorporate (with or without
modifications) any provision that creates an offence, the regulations
30may not impose a penalty greater than is provided for in respect of
that offence.

(6) Before making any regulations under this section, the Secretary of
State must consult the Electoral Commission.

(7) In this section “enactment” includes an enactment contained in a
35local Act or comprised in subordinate legislation (within the
meaning of the Interpretation Act 1978).

Directions that referendum provisions are not to apply

52ZR Direction that referendum provisions are not to apply

(1) The Secretary of State may give a direction under this section to an
40authority other than the Greater London Authority if it appears to
the Secretary of State that, unless the authority’s council tax
calculations are such as to produce a relevant basic amount of
council tax that is excessive by reference to the principles determined
by the Secretary of State for the year—

(a) 45the authority will be unable to discharge its functions in an
effective manner, or

(b) the authority will be unable to meet its financial obligations.

(2) The Secretary of State may give a direction under this section to the
Greater London Authority if it appears to the Secretary of State that,
unless the Authority’s council tax calculations are such as to produce
a relevant basic amount of council tax that is excessive by reference
5to the principles determined by the Secretary of State for the year—

(a) one or more of the Authority’s constituent bodies will be
unable to discharge its functions in an effective manner, or

(b) one or more of those bodies will be unable to meet its
financial obligations.

(3) 10The effect of a direction under this section is that the referendum
provisions do not apply for the financial year to, and no further step
is to be taken for the financial year under the referendum provisions
by—

(a) the authority to whom it is made, and

(b) 15where that authority is a precepting authority, a billing
authority as a result of any notification under section 52ZK or
52ZM above by the precepting authority.

(4) A direction under this section may be given to an authority other
than the Greater London Authority—

(a) 20whether or not the authority has carried out its council tax
calculations for the financial year, and

(b) in the case of a billing authority, whether or not the authority
has set an amount of council tax for the financial year under
section 30 above.

(5) 25A direction under this section may be given to the Greater London
Authority only if it has carried out its council tax calculations for the
financial year.

(6) But a direction under this section may not be given to an authority
if—

(a) 30a referendum has been held relating to the authority’s
relevant basic amount of council tax for the financial year,
and

(b) that amount has not been approved as mentioned in section
52ZH above (where the authority is a billing authority) or
35section 52ZO above (where the authority is a precepting
authority).

(7) The following sections make further provision about the effect of a
direction under this section—

(a) for a billing authority: section 52ZS below;

(b) 40for a major precepting authority other than the Greater
London Authority: section 52ZT below;

(c) for the Greater London Authority: section 52ZU below;

(d) for a local precepting authority: section 52ZV below.

(8) In this Part—

• 45“constituent body” means—

  (a)

  the Mayor of London,

  (b)

  the London Assembly, or

  Localism BillPage 275

  (c)

  a functional body within the meaning of section 424 of
  the Greater London Authority Act 1999;

• “council tax calculations” means—

  (a)

  in relation to a billing authority, calculations under
  5sections 31A, 31B and 34 to 36 above,

  (b)

  in relation to a major precepting authority other than
  the Greater London Authority, calculations under
  sections 42A, 42B and 45 to 48 above,

  (c)

  in relation to the Greater London Authority,
  10calculations under sections 85 to 90 of the Greater
  London Authority Act 1999 and sections 47 and 48
  above, and

  (d)

  in the case of a local precepting authority, calculations
  under section 49A above;

• 15“the referendum provisions” means—

  (a)

  where the direction is given to a billing authority,
  sections 52ZB and 52ZF to 52ZI above,

  (b)

  where the direction is given to a major precepting
  authority, sections 52ZB, 52ZJ, 52ZK and 52ZN to
  2052ZP above, and

  (c)

  where the direction is given to a local precepting
  authority, sections 52ZB and 52ZL to 52ZP above.

52ZS Directions to billing authorities

(1) This section applies if the Secretary of State gives a direction under
25section 52ZR above to a billing authority.

(2) The direction must state the amount that is to be the amount of the
billing authority’s council tax requirement for the financial year.

(3) If the direction is given before the billing authority has carried out its
council tax calculations for the financial year, that amount is to be
30treated for all purposes as the amount calculated by the billing
authority under section 31A above.

(4) If the direction is given after the billing authority has carried out its
council tax calculations for the financial year (whether or not it has
set an amount of council tax for the year)—

(a) 35those calculations are of no effect, and

(b) the authority must make substitute calculations for the year
in accordance with section 36A above.

(5) For the purposes of those and any subsequent substitute calculations
and the application of Chapter 3 above to them—

(a) 40the amount stated in the direction as the amount of the billing
authority’s council tax requirement for the financial year is to
be treated as the amount calculated by the billing authority
under section 31A above, and

(b) subsections (2)(a) and (4) of section 36A above are to be
45ignored.

52ZT Directions to major precepting authorities

(1) This section applies if the Secretary of State gives a direction under
section 52ZR above to a major precepting authority other than the
Greater London Authority.

(2) 5The direction must state the amount that is to be the amount of the
major precepting authority’s council tax requirement for the
financial year.

(3) If the direction is given before the major precepting authority has
carried out its council tax calculations for the financial year, that
10amount is to be treated for all purposes as the amount calculated by
the major precepting authority under section 42A above.

(4) If the direction is given after the major precepting authority has
carried out its council tax calculations for the financial year (whether
or not it has issued a precept for the year)—

(a) 15those calculations are of no effect, and

(b) the authority must make substitute calculations for the year
in accordance with section 49 above.

(5) For the purposes of those and any subsequent substitute calculations
and the application of Chapters 3 and 4 above to them—

(a) 20the amount stated in the direction as the amount of the major
precepting authority’s council tax requirement for the
financial year is to be treated as the amount calculated by the
billing authority under section 42A above, and

(b) subsection (2)(za) of section 49 above is to be ignored.

52ZU 25Directions to the Greater London Authority

(1) This section applies if the Secretary of State gives a direction under
section 52ZR above to the Greater London Authority.

(2) The direction must specify the amount that is to be the component
council tax requirement for the relevant constituent body for the
30year.

(3) The Greater London Authority must make calculations in
substitution in relation to the financial year under subsections (4) to
(7) of section 85 of the Greater London Authority Act 1999 in relation
to—

(a) 35the relevant constituent body alone, or

(b) the relevant constituent body and one or more other
constituent bodies.

(4) Subsection (5) below applies if the result of the substitute
calculations is such that—

(a) 40there is an increase in the Greater London Authority’s
consolidated council tax requirement for the year, or

(b) there is no such increase, but the results of the calculations in
substitution made in accordance with sections 85, 86 and 88
to 90 of and Schedule 7 to the Greater London Authority Act
451999 and sections 47 and 48 above would be different from
the last relevant calculations in relation to the year.

(5) The Greater London Authority must make calculations in
substitution in accordance with the provisions mentioned in
subsection (4)(b) above.

(6) In subsection (4)(b) above “the last relevant calculations” means the
5last calculations made by the Greater London Authority in relation
to the financial year in accordance with—

(a) sections 85 to 90 of the Greater London Authority Act 1999
and sections 47 and 48 above, or

(b) sections 85, 86 and 88 to 90 of and Schedule 7 to that Act and
10sections 47 and 48 above.

(7) None of the substitute calculations is to have any effect if—

(a) the amount calculated under section 85(6) or (7) of the
Greater London Authority Act 1999 for the relevant
constituent body is not in compliance with the direction,

(b) 15there is an increase in the Greater London Authority’s
consolidated council tax requirement for the financial year
(as last calculated) which exceeds the increase required to be
made to the component council tax requirement for the
relevant constituent body (as last calculated for the year) to
20comply with the direction, or

(c) in making the calculations under section 88(2) or 89(3) of that
Act, the Authority fails to comply with subsection (8) below.

(8) In making substitute calculations under section 88(2) or 89(3) of the
Greater London Authority Act 1999 the Greater London Authority
25must use any amount determined in the previous calculations for
item T in section 88(2) of that Act or for item TP2 in section 89(4) of
that Act.

(9) Subsections (7)(c) and (8) above do not apply if the previous
calculations have been quashed because of a failure to comply with
30the appropriate Greater London provisions in making the
calculations.

(10) For the purposes of subsection (9) above “the appropriate Greater
London provisions” means—

(a) in the case of calculations required to be made in accordance
35with sections 85 to 90 of the Greater London Authority Act
1999 and sections 47 and 48 above, those provisions, and

(b) in the case of calculations required to be made in accordance
with sections 85, 86 and 88 to 90 of and Schedule 7 to that Act
and sections 47 and 48 above, those provisions.

(11) 40Any substitute calculations under this section are to be made in
accordance with Schedule 7 to the Greater London Authority Act
1999.

(12) In this Part—

• “component council tax requirement” has the meaning given by
  45section 85(6) of the Greater London Authority Act 1999;

• “consolidated council tax requirement” has the meaning given
  by section 85(8) of the Greater London Authority Act 1999;

• “the relevant constituent body”, in relation to a direction under
  section 52ZR above, means the constituent body by reference

  Localism BillPage 278

  to which the direction was given (or, if there is more than one
  such body, each of them).

52ZV Directions to local precepting authorities

(1) This section applies if the Secretary of State gives a direction under
5section 52ZR above to a local precepting authority.

(2) The direction must state the amount that is to be the amount of the
local precepting authority’s council tax requirement for the financial
year.

(3) That amount is to be treated for all purposes as the amount
10calculated by the local precepting authority under section 49A
above.

(4) If the direction is given after the local precepting authority has issued
a precept for the financial year, that amount is to be treated for all
purposes as an amount calculated by the authority in substitution in
15relation to the year in accordance with that section (so that, in
particular, section 42 above applies accordingly).

52ZW Further provisions about directions

(1) An authority that is required to make substitute calculations for a
financial year by virtue of any of sections 52ZS to 52ZU—

(a) 20must make the calculations, and

(b) in the case of a major precepting authority, must issue any
precepts in substitution required in consequence under
section 42 above,

before the end of the period mentioned in subsection (3) below.

(2) 25A local precepting authority to which section 52ZV(4) above applies
must issue any precepts in substitution required in consequence
under section 42 above before the end of the period mentioned in
subsection (3) below.

(3) That period is—

(a) 30the period of 35 days beginning with the day on the authority
receives the direction (where it is the Greater London
Authority), or

(b) the period of 21 days beginning with the day on which the
authority receives the direction (in any other case).

(4) 35In the case of a billing authority, the authority has no power during
the period of restriction to transfer any amount from its collection
fund to its general fund; and sections 97 and 98 of the 1988 Act have
effect accordingly.

(5) In the case of a precepting authority, no authority to which it has
40power to issue a precept has power during the period of restriction
to pay anything in respect of a precept issued by the precepting
authority for the financial year.

(6) For the purposes of subsections (4) and (5) “the period of restriction”
is the period—

(a) 45beginning at the end of the period mentioned in subsection
(3), and

(b) ending at the time (if any) when the authority complies with
subsection (1) or (2) (as the case may be).

(7) The following provisions of this section apply to substitute
calculations by the Greater London Authority other than those made
5pursuant to section 52ZU above.

(8) Subject to variation or revocation, a direction under section 52ZR
above has effect in relation to any substitute calculations made under
any enactment by the Greater London Authority—

(a) in accordance with sections 85, 86 and 88 to 90 of and
10Schedule 7 to the Greater London Authority Act 1999 and
sections 47 and 48 above,

(b) in relation to the financial year to which the direction relates,
and

(c) at any time after the direction is given.

(9) 15Where a direction under section 52ZR above has effect in relation to
any substitute calculations by virtue of subsection (8) above, none of
the calculations have effect if the amount calculated under section
85(6) above for the relevant constituent body is not in compliance
with the direction.

20Meaning of basic amount of council tax

52ZX Meaning of relevant basic amount of council tax

(1) Any reference in this Chapter to a billing authority’s relevant basic
amount of council tax for a financial year is a reference to the amount
that would be calculated by it in relation to the year under section
2531B(1) above if section 31A above did not require or permit it to take
into account the amount of any precepts—

(a) issued to it for the year by local precepting authorities, or

(b) anticipated by it in pursuance of regulations under section 41
above.

(2) 30In the case of a major precepting authority other than the Greater
London Authority, any reference in this Chapter to the authority’s
relevant basic amount of council tax for a financial year is a reference
to the amount calculated by it in relation to the year under section
42B(1) above.

(3) 35In the case of a major precepting authority that is the Greater London
Authority, any reference in this Chapter to the authority’s relevant
basic amount of council tax for a financial year is a reference to—

(a) the amount calculated by it in relation to the year under
section 88(2) above (referred to in this Chapter as the Greater
40London Authority’s unadjusted relevant basic amount of
council tax for the year), or

(b) any amount calculated by it in relation to the year under
section 89(3) above (referred to in this Chapter as the Greater
London Authority’s adjusted relevant basic amount of
45council tax for the year).