Localism Bill (HL Bill 71)

(5) Subsection (4)(b) applies in relation to an electronic petition regardless of
whether an electronic petition, or an electronic petition in that form, could have
been made to the county council.

47 Grounds for determination

(1) 5A principal local authority may only determine that it is not appropriate to
hold a local referendum in response to a petition or request on one or more of
the following grounds.

(2) The first ground is that the authority thinks that action taken to promote or
oppose the referendum question is likely to lead to contravention of an
10enactment or a rule of law.

(3) The second ground is that the authority thinks that the matter to which the
referendum question relates is not a local matter—

(a) over which the authority has an influence or (in the case of a principal
local authority other than a non-unitary district council or the Greater
15London Authority) any of its partner authorities has an influence, or

(b) which affects the authority’s area or the inhabitants of that area.

(4) For the purposes of this Chapter—

(a) a matter is a “local matter” if—

(i) it relates to the economic, social or environmental well-being of
20the area in which the referendum is proposed to be held, and

(ii) it has a particular connection with that area;

(b) a principal local authority or a partner authority has an influence over
a matter if the authority can affect that matter by the exercise of any of
its general or particular functions.

(5) 25The third ground is that the referendum question relates to a matter specified
by order by the Secretary of State.

(6) The fourth ground is that the principal local authority thinks the petition or
request is vexatious or abusive.

(7) In this section “the referendum question” means—

(a) 30the question stated in the petition or request, or

(b) where the authority thinks that it is likely to exercise its power under
section 51(3) (substitution of question) if the local referendum takes
place, the question it thinks it is likely to substitute.

48 Action following determination in response to petition

(1) 35Where a principal local authority has made a determination under section 46
as to whether it is appropriate to hold a local referendum in response to a
petition, it must—

(a) notify the petition organiser of the determination, and

(b) publish the determination in such manner as it thinks fit.

(2) 40The notification must be made in writing, but may not be made by means of an
electronic communication unless—

(a) the petition organiser has agreed to accept the notification by such
means, or

(b) the petition was made to the authority in electronic form.

(3) If the determination is that it is appropriate to hold the referendum, the
authority must make arrangements for the referendum to take place in
accordance with sections 51 to 54.

(4) If the determination is that it is not appropriate to hold the referendum—

(a) 5the notification must give the reasons for the determination, and

(b) subject to subsection (5), the authority must publish those reasons
when it publishes the determination.

(5) A principal local authority is not obliged to publish those reasons if it thinks
that in all the circumstances it would be inappropriate to do so.

(6) 10In this Chapter “petition organiser”, in relation to a petition, means—

(a) the person designated in the petition as the person with whom the
authority may deal in relation to the petition, or

(b) the person appearing to the authority to be the person with whom it
may deal in relation to the petition.

49 15Action following determination in response to request

(1) Where a principal local authority has made a determination under section 46
as to whether it is appropriate to hold a local referendum in response to a
request, it must publish the determination in such manner as it thinks fit.

(2) If the determination is that it is appropriate to hold the referendum, the proper
20officer of the authority must arrange for a meeting to decide on a resolution
that the referendum should be held.

(3) The meeting must be held as soon as is reasonably practicable after the
determination is made.

(4) If the authority resolves at the meeting that the referendum should be held, it
25must make arrangements for the referendum to take place in accordance with
sections 51 to 54.

(5) Subject to subsection (6), if the determination is that it is not appropriate to
hold the referendum, the authority must publish the reasons for the
determination when it publishes the determination.

(6) 30A principal local authority is not obliged to publish those reasons if it thinks
that in all the circumstances it would be inappropriate to do so

50 Resolution for local referendum

(1) A resolution complies with this section if—

(a) it resolves that the principal local authority should hold a local
35referendum throughout the area of that authority, and

(b) it states the question that is proposed be asked in the referendum.

(2) If the authority passes a resolution that complies with this section, it must
make arrangements for the referendum to take place in accordance with
sections 51 to 54.

Arrangements for local referendum

51 Question to be asked in local referendum

(1) The principal local authority must decide the question to be asked in the local
referendum.

(2) 5That question is to be the question stated in—

(a) the petition for the referendum,

(b) the request for the referendum, or

(c) the resolution for the referendum,

as the case may be.

(3) 10But if the authority considers that the question so stated is misleading, it may
substitute its own wording.

(4) The authority may not exercise the power in subsection (3)—

(a) in relation to a referendum following a petition, unless the authority
has consulted the petition organiser;

(b) 15in relation to a referendum following a request, unless the authority has
consulted the member or members who made the request.

(5) The authority must publish, in such manner as it thinks fit—

(a) its decision about the question to be put in the referendum, and

(b) if it has substituted its own wording, its reasons for doing so.

52 20Date of referendum

(1) Subject as follows, the local referendum is to be held on a date decided by the
principal local authority.

(2) The local referendum must not be held on a date within the period of two
months beginning with the trigger date.

(3) 25If another referendum (whether or not a local referendum) or an election is to
be held in the whole or part of the authority’s area within the period of six
months beginning with the trigger date, the local referendum is to be held on
the same date as the other referendum or election.

(4) Subsection (3) does not apply if the authority thinks that in all the
30circumstances it would be inappropriate for the local referendum to be held on
that date.

(5) The local referendum must be held within the period of 12 months beginning
with the trigger date.

(6) In this section “the trigger date” means the date on which—

(a) 35the petition that led to the referendum was received by the authority,

(b) the request that led to the referendum was received by the authority, or

(c) the resolution that led to the referendum was passed by the authority,

as the case may be.

53 Publicity for and in relation to local referendum

(1) 40The principal local authority must publicise, in such manner as it thinks fit—

(a) the fact that the local referendum is to take place,

(b) the date of the referendum, and

(c) the question that is to be asked in the referendum.

(2) The duty in subsection (1) is subject to any provision made by regulations
5under section 54 (voting in and conduct of local referendums).

(3) If the question to be asked in the referendum relates to a matter over which a
partner authority has an influence, the principal local authority must inform
the partner authority of the matters listed in subsection (1).

(4) Subject to subsection (5), the principal local authority may publish, or arrange
10for the publication of, material that is designed to encourage support for or
opposition to the question to be asked in the referendum.

(5) The power in subsection (4)—

(a) applies only in relation to a local referendum that is held in response to
a petition or a request;

(b) 15enables the authority to incur only such expenditure as is reasonable.

54 Voting in and conduct of local referendums

(1) The persons entitled to vote in a local referendum held by a principal local
authority are those who, on the day of the referendum—

(a) would be entitled to vote as electors at an election for members for an
20electoral area which is situated in the area in which the referendum is
to be held (“the referendum area”), and

(b) are registered in the register of local government electors at an address
within the referendum area.

(2) The Secretary of State may by regulations make provision as to the conduct of
25local referendums.

(3) The Secretary of State may by regulations make provision for the combination
of polls at local referendums with polls at any elections or any referendums
that are not local referendums.

(4) Regulations under this section may make provision about—

(a) 30when, where and how voting in a local referendum is to take place;

(b) how the votes cast in a local referendum are to be counted.

(5) 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.

(6) 35Regulations under this section may not include provision—

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

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

(c) about the effect of the result of a referendum;

(d) for the questioning of the result of a referendum by a court or tribunal;

(e) 40creating criminal offences.

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

Consequences of local referendum

55 Consequences of local referendum

(1) A principal local authority must publicise the result of a local referendum held
in its area in such manner as the authority thinks appropriate.

(2) 5Subsections (3) and (4) apply if the question asked in the referendum relates to
a matter over which the principal local authority has an influence.

(3) As soon as is reasonably practicable after the result is known, the authority
must consider what steps (if any) the authority proposes to take to give effect
to the result.

(4) 10If the authority decides to take no steps to give effect to the result, it must
publish that decision in such manner as it thinks appropriate together with the
reasons for that decision.

(5) Subsections (6) to (8) apply if the question asked in the referendum relates to a
matter over which a partner authority has an influence.

(6) 15The principal local authority must inform the partner authority of the outcome
of the referendum.

(7) As soon as is reasonably practicable after the result is known, the partner
authority must consider what steps (if any) the authority proposes to take to
give effect to the result.

(8) 20If the partner authority decides to take no steps to give effect to the result of the
referendum, it must publish that decision in such manner as it thinks
appropriate together with the reasons for that decision.

Supplementary

56 Application to parish councils

(1) 25The Secretary of State may by regulations make provision about the holding of
polls or referendums by parish councils.

(2) Regulations under this section may—

(a) apply or reproduce, with or without modifications, any provision of, or
any provision made under, this Chapter;

(b) 30amend, repeal or revoke any enactment (whenever passed or made).

(3) The Secretary of State may make or arrange for the making of payments to
parish councils to enable them to meet the additional expenditure they incur as
a result of regulations under this section.

57 Discharge of functions

(1) 35Section 101 of the Local Government Act 1972 (arrangements for discharge of
functions) does not apply to a function of passing a resolution under any
provision of this Chapter.

(2) In the case of a principal local authority that is operating executive
arrangements, a function of passing a resolution under this Chapter is not to be
40the responsibility of the authority’s executive under those arrangements.

(3) In the case of the Greater London Authority, the function of passing a
resolution under section 50 is to be exercisable by the Mayor of London and the
London Assembly acting jointly on behalf of the Authority.

58 Interpretation

(1) 5In this Chapter—

• “electoral area” means—

  (a)

  in 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)

  10in relation to the Greater London Authority, an Assembly
  constituency within the meaning of the Greater London
  Authority Act 1999;

  (d)

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

• “electronic communication” has the same meaning as in the Electronic
  15Communications Act 2000;

• “enactment” includes an enactment contained in a local Act or comprised
  in subordinate legislation (within the meaning of the Interpretation Act
  1978);

• “local government elector” means—

  (a)

  20a person registered as a local government elector in the register
  of 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 London, a
  person whose name appears in a ward list published under
  25section 7 of the City of London (Various Powers) Act 1957 (5 &
  6 Eliz 2 c x),

  and the reference in section 54(1)(b) to the register of local government
  electors is to be read accordingly;

• “local matter” has the meaning given by section 47(4);

• 30“local referendum” has the meaning given by section 42(1);

• “non-unitary district council” means a district council for an area which is
  part of the area of a county council;

• “partner authority”, in relation to a principal local authority, has the same
  meaning as in Chapter 1 of Part 5 of the Local Government and Public
  35Involvement in Health Act 2007;

• “petition organiser” has the meaning given by section 48(6);

• “principal local authority” has the meaning given by section 42(5);

• “proper officer”, in relation to a purpose and a principal local authority,
  means the officer appointed for that purpose by that authority;

• 40“relevant area” has the meaning given by section 43(7).

(2) Any reference in this Chapter to a member of a principal local authority—

(a) in the case of an authority to which Part 1A of the Local Government
Act 2000 applies, includes a reference to an elected mayor;

(b) in the case of the Greater London Authority, is a reference to the Mayor
45of London or a London Assembly member.

(3) For the purposes of this Chapter the Inner Temple and the Middle Temple are
to be treated as falling within the ward of Farrington Without in the City of

London (and so are to be treated as falling within the area of the Common
Council of the City of London for those purposes).

CHAPTER 2 Council tax

59 Referendums relating to council tax increases

(1) 5In Part 1 of the Local Government Finance Act 1992 (council tax: England and
Wales) after Chapter 4 insert the Chapter set out in Schedule 5.

(2) Schedule 6 (council tax referendums: further amendments) has effect.

60 References to proper accounting practices

In section 21(4) of the Local Government Act 2003 (enactments to which
10provisions about references to proper accounting practices apply)—

(a) at the end of paragraph (c) insert—

“(ca) the Local Government Finance Act 1992 (c. 14)1992 (c. 14),”, and

(b) for the “and” at the end of paragraph (d) substitute—

“(da) the Greater London Authority Act 1999 (c. 29)1999 (c. 29), and”.

61 15Council tax calculations by billing authorities in England

Before section 32 of the Local Government Finance Act 1992 insert—

“31A Calculation of council tax requirement by authorities in England

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

(2) 20The authority must calculate the aggregate of—

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

(b) 25such allowance as the authority estimates will be appropriate
for 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
30appropriate to raise in the year for meeting its estimated future
expenditure,

(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
35provided for,

(e) any amounts which it estimates will be transferred in the year
from its general fund to its collection fund in accordance with
section 97(4) of the 1988 Act, and

(f) any amounts which it estimates will be transferred from its
40general fund to its collection fund pursuant to a direction under

section 98(5) of the 1988 Act and charged to a revenue account
for the year.

(3) The authority must calculate the aggregate of—

(a) the income which it estimates will accrue to it in the year and
5which it will credit to a revenue account, other than a BID
Revenue Account, for the year in accordance with proper
practices,

(b) any amounts which it estimates will be transferred in the year
from its collection fund to its general fund in accordance with
10section 97(3) of the 1988 Act,

(c) any amounts which it estimates will be transferred from its
collection fund to its general fund pursuant to a direction under
section 98(4) of the 1988 Act and will be credited to a revenue
account for the year, and

(d) 15the amount of the financial reserves which the authority
estimates it will use in order to provide for the items mentioned
in subsection (2)(a), (b) and (e) above.

(4) If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
20amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.

(5) In making the calculation under subsection (2) above the authority
must ignore payments which must be met from its collection fund
under section 90(2) of the 1988 Act or from a trust fund.

(6) 25In estimating under subsection (2)(a) above the authority must take into
account—

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

(b) 30the amount of any precept issued to it for the year by a local
precepting authority and the amount of any levy or special levy
issued to it for the year.

(7) But (except as provided by regulations under section 41 above or
regulations under section 74 or 75 of the 1988 Act) the authority must
35not anticipate a precept, levy or special 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
40account 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 for the year into its general
fund and in respect of which amounts will be credited to
45a revenue account for the year in accordance with
proper practices, and

(ii) sums which will be transferred as regards the year from
its collection fund to its general fund, 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
charged to a revenue account for that or any other year in
5accordance with proper practices.

(9) In making the calculation under subsection (3) above the authority
must ignore—

(a) payments which must be made into its collection fund under
section 90(1) of the 1988 Act or to a trust fund, and

(b) 10subject to paragraphs (b) and (c) of subsection (3), sums which
have been or are to be transferred from its collection fund to its
general fund.

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

(a) 15alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);

(b) alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
20subsections (5) to (9) above, or any of them, or by adding other
provisions, or by a combination of those methods).

(11) Calculations to be made in relation to a particular financial year under
this section must be made before 11th March in the preceding financial
year, but they are not invalid merely because they are made on or after
25that date.

(12) This section is subject to section 52ZS below (which requires a direction
to a billing 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).

(13) 30In this section “BID Revenue Account” has the same meaning as in Part
4 of the Local Government Act 2003.

31B Calculation of basic amount of tax by authorities in England

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

35

(2) 45Where the aggregate calculated (or last calculated) by the authority for
the year under subsection (2) of section 31A 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
making for any year the calculation required by item T in subsection (1)
5above; and a billing authority must make the calculation 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
subsection (1) above may provide that, in any case where a billing
10authority fails to notify its calculation to the major precepting
authorities concerned within that period, that item must be determined
in the prescribed manner by such authority or authorities as may be
prescribed.

(5) The Secretary of State may by regulations do either or both of the
15following—

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

(b) provide for rules governing the making of any calculation
20under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”

62 Council tax calculations by major precepting authorities in England

Before section 43 of the Local Government Finance Act 1992 insert—

“42A 25Calculation of council tax requirement by authorities in England

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

(2) The authority must calculate the aggregate of—

(a) the expenditure the authority estimates it will incur in the year
30in 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
for contingencies in relation to amounts to be charged or
credited to a revenue account for a year in accordance with
35proper practices,