Localism Bill (HL Bill 90)

(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
Secretary of State to do so.

5Final 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
end before the abolition date, and

(b) 10a 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
preparing a statement under this paragraph, send a copy of it to the
15Comptroller 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
Parliament.

(4) 20Sub-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
25and 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.

Disclosure 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
30by virtue of paragraph 57(4) as it applies to information obtained by an
ethical standards officer.

(2) That 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
35for 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
is 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).

40Interpretation

60 In this Part of this Schedule—

• “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;

Localism BillPage 271

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

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

Section 60

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

This is the Chapter referred to in section 60(1)—

“CHAPTER 4ZA Referendums relating to council tax increases

Interpretation of Chapter

52ZA Interpretation of Chapter

(1) 10In this Chapter—

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

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

(c) 15a 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) 20a reference to a precepting authority is to an authority of a
kind mentioned in subsection (1)(b) or (c) above.

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

Determination of whether increase excessive

52ZB 25Duty to determine whether council tax excessive

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

(2) Sections 52ZF to 52ZI below (duty to hold referendum etc in case of
excessive council tax increase by billing authority) apply where the
30amount mentioned in subsection (1) above is excessive.

(3) A 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 below (duty to hold
referendum etc in case of excessive council tax increase by major
35precepting authority) apply where an amount mentioned in
subsection (3) above is excessive.

(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 below (duty to hold referendum etc in case of
excessive council tax increase by local precepting authority) apply
5where the amount mentioned in subsection (5) above 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 below for that year are approved by a resolution of the House
of Commons under section 52ZD below.

52ZC 10Determination 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) 15A set of principles—

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

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

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

(a) 20the 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) 25If 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)
falling within the same category;

(b) 30as 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) If the Secretary of State does not determine such categories, any
35principles 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)
above may only provide for—

(a) 40a comparison between unadjusted relevant basic amounts of
council tax,

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

(c) a comparison within paragraph (a) and a comparison within
45paragraph (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 Approval of principles

(1) 5The 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
or before the specified date—

(a) 10no 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) If the Secretary of State does not propose to determine a set of
15principles 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,
means the date on which the local government finance report for the
20year 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
notional amount in relation to any year under consideration and any
25authority.

(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 above in place of the authority’s relevant
basic amount of council tax for the preceding year.

(3) 30A 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
35notional amount and the method for that calculation;

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

(4) Subsection (5) below 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 above
40for that year is 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
45preceding 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 above.

Excessive increase in council tax by billing authority

52ZF Billing authority’s duty to make substitute calculations

(1) 5The 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) Substitute calculations for a financial year comply with this section
10if—

(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
applying section 52ZX below to the calculations is not
15excessive 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) use the amount determined in the previous calculation for
20the 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
of the Common Council only) police grant, and

(b) 25use 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
amount determined in the previous calculation under section 31A(3)
30above 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.

52ZG 35Arrangements 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) Subject as follows, the referendum is to be held on a date decided by
40the 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
specify by order.

(4) 45An order under subsection (3) above 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,
1 February in the financial year preceding the first of those
5years.

(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
members for an electoral area of the billing authority, and

(b) 10are 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)

  where the billing authority is a district council, a
  15London 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)

  where the billing authority is the Council of the Isles
  20of Scilly, a parish;

• “register of local government electors” means the register of
  local government electors kept in accordance with the
  provisions of the Representation of the People Acts.

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

52ZH 25Effect of referendum

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

(2) Subsection (3) below applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is
30approved by a majority of persons voting in the referendum.

(3) The 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) below applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is not
35approved by a majority of persons voting in the referendum.

(5) The 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) 40If the billing authority fails to hold a referendum in accordance with
this 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
45the period of restriction the authority has no power to transfer any

amount from its collection fund to its general fund; and sections 97
and 98 of the 1988 Act have effect accordingly.

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

(a) beginning with the latest date on which the referendum
5could have been held, and

(b) ending 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) 10The major precepting authority must make substitute calculations
for 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) 15they are made in accordance with sections 42A, 42B and 45 to
48 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
20section 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
25and 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) 30use 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) 35use 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)
40above 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) 45In 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—

• “the relevant London provisions” means sections 88 and (where
  5applicable) 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
  requirement—

  (a)

  10agreed under Schedule 6 to the Greater London
  Authority Act 1999, or

  (b)

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

  as the case may be.

52ZK 15Major precepting authority’s duty to notify appropriate billing
authorities

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

(a) that its relevant basic amount of council tax for a financial
20year 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
25have effect for the purposes of Chapters 3 and 4 above except in
accordance with sections 52ZO and 52ZP below.

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

(a) 30the amount which, in relation to the year and each category
of dwellings in the billing authority’s area, has been
calculated by the precepting authority in accordance with
sections 42A, 42B and 45 to 47 above as applied by section
52ZJ above, and

(b) 35the amount which has been calculated by the precepting
authority in accordance with section 48 above as applied by
section 52ZJ above as the amount payable by the billing
authority for the year.

(4) Dwellings fall within different categories for the purposes of
40subsection (3) above according as different calculations have been
made in relation to them as mentioned in paragraph (a) of that
subsection.

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

(a) 45the 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
above, 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
5above as the amount payable by the billing authority for the
year.

(6) Dwellings fall within different categories for the purposes of
subsection (5) above according as different calculations have been
made in relation to them as mentioned in paragraph (a) of that
10subsection.

(7) A 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
15of its area as respects which different calculations have been made.

(8) The 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
20Authority’s unadjusted relevant basic amount of council tax for the
year is excessive.

(10) Subsection (9) above 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 25Local 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
if—

(a) 30they 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
Secretary of State under section 52ZC above for the year.

52ZM 35Local precepting authority’s duty to notify appropriate billing
authority

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

(a) that its relevant basic amount of council tax for a financial
40year 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 subsection (3) below; but that precept does not have
45effect 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
local precepting authority under section 49A above as applied by
section 52ZL above.

(4) 5The Secretary of State must by regulations prescribe a date by which
the notification must be made.

52ZN Arrangements for referendum

(1) A billing authority that is notified under section 52ZK or 52ZM
above must make arrangements to hold a referendum in relation to
10the 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
to 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) 15such 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) below.

(4) That date must be not later than—

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

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

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

(a) 1 February in the financial year preceding the year
25mentioned 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
years.

(6) The persons entitled to vote in the referendum are those who, on the
30day 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
falls wholly or partly within the precepting authority’s area,
and

(b) 35are registered in the register of local government electors at
an address that is within both—

(i) the precepting authority’s area, and

(ii) the billing authority’s area.

(7) Subject to subsection (8) below, the billing authority may recover
40from 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
in which—

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

(b) 45that subsection applies with modifications.

(9) In this section—

Localism BillPage 280

• “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)

  5in relation to a county council, an electoral division;

  (c)

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

• “register of local government electors” means the register of
  local government electors kept in accordance with the
  provisions of the Representation of the People Acts.

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

52ZO Effect of referendum

(1) The 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) below applies if—

(a) 15in a case where one referendum is held in respect of the
precepting authority’s relevant basic amount of council tax
for 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
20of 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
(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) 25Subsections (5) and (6) below apply if—

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

(b) 30in 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) Any precept issued to a billing authority under section 52ZK or
52ZM above as part of a notification that triggered the referendum
35has 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
precepting authority under section 52ZM above, section 36A above
has effect in relation to the billing authority as if it required the
40authority 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
London Authority, section 30 above has effect by virtue of subsection
(5) above in relation to that precept as if—

(a) 45references to amounts calculated under Chapter 4 above
were to amounts calculated as mentioned in section 52ZJ(2)
above, and

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

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

(a) references 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)
10above, and

(b) the reference to the amount stated in accordance with section
40 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
15financial year (originally or by way of substitute) to the billing
authority—

(a) subsections (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) 20the 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) above in accordance with
section 52ZK(3)(b) or (5)(b) above.

52ZP Failure to hold referendum

(1) 25This section applies if a billing authority that is required to be
notified by a precepting authority under section 52ZK or 52ZM
above fails to hold a referendum in accordance with this Chapter.

(2) Subsections (3) to (6) below apply if the precepting authority has
failed to notify the billing authority in accordance with section 52ZK
30or 52ZM above.

(3) The precepting authority must issue a precept for the year to the
billing 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
35precepting authority has power to issue a precept has power to pay
anything in respect of a precept issued by the precepting authority
for the year.

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

(a) beginning with the date on which the referendum would
40have been required to be held or (as the case may be) the
latest date on which it could have been held if the notification
had been made, and

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

(6) 45Where a precept under subsection (3) above is issued to a billing
authority by a local precepting authority, 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) If the precepting authority has notified the billing authority in
accordance with section 52ZK or 52ZM above, the precept issued to
5the billing authority under section 52ZK or 52ZM above 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
10has 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
15subsection (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) 20The 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
25than 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
30particular, 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) 35about 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
40(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) 45for 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
may not impose a penalty greater than is provided for in respect of
that offence.

(6) 5Before 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
local Act or comprised in subordinate legislation (within the
meaning of the Interpretation Act 1978).

10Directions 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
authority other than the Greater London Authority if it appears to
the Secretary of State that, unless the authority’s council tax
15calculations 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) the authority will be unable to discharge its functions in an
effective manner, or

(b) 20the 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
25to 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) 30The 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) 35where 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) 40whether 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) 45A 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) a referendum has been held relating to the authority’s
relevant basic amount of council tax for the financial year,
5and

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

(7) 10The following sections make further provision about the effect of a
direction under this section—

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

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

(c) 15for the Greater London Authority: section 52ZU below;

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

(8) In this Part—

• “constituent body” means—

  (a)

  the Mayor of London,

  (b)

  20the London Assembly, or

  (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
  25sections 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,
  30calculations 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;

• 35“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
  4052ZP 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
45section 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
treated for all purposes as the amount calculated by the billing
authority under section 31A above.

(4) 5If 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) those calculations are of no effect, and

(b) the authority must make substitute calculations for the year
10in 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) the amount stated in the direction as the amount of the billing
authority’s council tax requirement for the financial year is to
15be 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
ignored.

52ZT Directions to major precepting authorities

(1) 20This 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) The direction must state the amount that is to be the amount of the
major precepting authority’s council tax requirement for the
25financial year.

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

(4) 30If 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) those calculations are of no effect, and

(b) the authority must make substitute calculations for the year
35in 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) the amount stated in the direction as the amount of the major
precepting authority’s council tax requirement for the
40financial 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 Directions to the Greater London Authority

(1) This section applies if the Secretary of State gives a direction under
45section 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
year.

(3) The Greater London Authority must make calculations in
5substitution 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) the relevant constituent body alone, or

(b) the relevant constituent body and one or more other
10constituent bodies.

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

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

(b) 15there 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
1999 and sections 47 and 48 above would be different from
the last relevant calculations in relation to the year.

(5) 20The 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
last calculations made by the Greater London Authority in relation
25to 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
sections 47 and 48 above.

(7) 30None 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) there is an increase in the Greater London Authority’s
35consolidated 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
comply with the direction, or

(c) 40in 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
must use any amount determined in the previous calculations for
45item 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

the appropriate Greater London provisions in making the
calculations.

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

(a) 5in the case of calculations required to be made in accordance
with 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
10and sections 47 and 48 above, those provisions.

(11) Any 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—

• 15“component council tax requirement” has the meaning given by
  section 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
  20section 52ZR above, means the constituent body by reference
  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
25section 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
30calculated 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
35relation 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 above—

(a) 40must 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) 45A 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) the period of 35 days beginning with the day on the authority
5receives 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) In the case of a billing authority, the authority has no power during
10the 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
power to issue a precept has power during the period of restriction
15to pay anything in respect of a precept issued by the precepting
authority for the financial year.