Localism Bill (HL Bill 90)

not the amount that would be calculated for the year under section
88 or 89 above (calculation of basic amount of council tax) by
reference to the budget or council tax requirement is excessive by
reference to the relevant principles.”

(3) 5In paragraph 4—

(a) after sub-paragraph (1) insert—

“(1A) If the draft consolidated budget does not comply with the
relevant principles, the Assembly shall also prepare a draft
substitute consolidated budget that complies with those
10principles.”, and

(b) after sub-paragraph (2) insert—

“(3) If, at the public meeting referred to in sub-paragraph (2)
above, the draft substitute consolidated budget prepared
under sub-paragraph (1A) above is approved by the
15Assembly, that draft, as so approved, shall be the
Authority’s substitute consolidated budget for the
financial year to which it relates.”

(4) After paragraph 6 insert—

“The Mayor’s substitute consolidated budget

6A (1) 20This paragraph applies if the Mayor prepares a final draft budget
that does not comply with the relevant principles.

(2) The Mayor shall also prepare a draft substitute consolidated
budget that complies with those principles.

(3) The Mayor shall—

(a) 25present the draft substitute consolidated budget to the
Assembly, and

(b) publish it in such manner as the Mayor may determine.

(4) The Mayor shall, at the time when the Mayor presents the draft
substitute consolidated budget to the Assembly, lay before the
30Assembly in accordance with standing orders of the Authority a
written statement of the reasons for the differences between the
final draft budget and the draft substitute consolidated budget.

(5) It shall be the duty of the Mayor (having regard to paragraphs 8(7)
and 8C below) to comply with sub-paragraph (4) above before the
35last day of February in the financial year preceding that to which
the final draft budget relates.”

(5) In paragraph 7 after sub-paragraph (4) insert—

“(4A) If the Authority’s consolidated council tax requirement does not
comply with the relevant principles, the Assembly shall also agree
40a substitute consolidated council tax requirement that complies
with those principles at the public meeting.”

(6) In paragraph 8 after sub-paragraph (6) insert—

“(6A) Sub-paragraph (6B) below applies if—

(a) the final draft budget is approved by the Assembly with
amendments, and

(b) as a result, the final draft budget no longer complies with
the relevant principles.

(6B) 5The Assembly shall also agree a substitute consolidated budget
that complies with those principles at the public meeting.”

(7) After paragraph 8A insert—

“Approval of substitute consolidated budget by Assembly following non-compliance
by Mayor with paragraph 6A

8B (1) 10This paragraph applies if—

(a) the Mayor presents a final draft budget to the Assembly in
accordance with paragraph 6 above, and

(b) the Mayor has failed to comply with paragraph 6A(5)
above.

(2) 15If at the public meeting held under paragraph 8 above the
Assembly approves a final draft budget that does not comply with
the relevant principles, it shall also agree a substitute consolidated
budget that complies with those principles at that meeting.

Approval of substitute consolidated budget by Assembly following compliance by
20Mayor with paragraph 6A

8C (1) This paragraph applies if—

(a) the Mayor presents a draft substitute consolidated budget
to the Assembly in accordance with paragraph 6A above,

(b) a public meeting is held under paragraph 8 above to
25consider the draft final budget to which it relates, and

(c) the final budget as approved at that public meeting
continues not to comply with the relevant principles.

(2) The draft substitute consolidated budget must be considered at
the public meeting.

(3) 30After considering the draft substitute consolidated budget, the
Assembly must approve it with or without amendment (but see
paragraph 8D below).

(4) For the purposes of sub-paragraph (3) above, the only
amendments which are to be made are those agreed to by at least
35two-thirds of the Assembly members voting.

(5) If no amendments are made on consideration of the draft
substitute consolidated budget, it shall be deemed to be approved
without amendment.

(6) The draft substitute consolidated budget as approved by the
40Assembly with or without amendments shall be the Authority’s
substitute consolidated budget for the financial year.

Limit on Assembly’s power to amend Mayor’s substitute consolidated budget

8D (1) Paragraph 8A above applies to amendments to the draft substitute
consolidated budget as it applies to amendments to the final draft
budget as if—

(a) 5references to the final draft component council tax
requirement for the Assembly were to the component
council tax requirement for the Assembly as stated in the
draft substitute consolidated budget, and

(b) references to the final draft component council tax
10requirement for the Mayor were to the component council
tax requirement for the Mayor as stated in the draft
substitute consolidated budget.

(2) In exercising its powers of amendment under paragraph 8C
above, the Assembly must not in any event make amendments
15that mean that the draft substitute consolidated budget no longer
complies with the relevant principles.”

(8) After paragraph 9 insert—

“Failure of Assembly to approve draft substitute consolidated budget

9A If the Assembly fails to comply with paragraph 8C above, the draft
20substitute consolidated budget presented to the Assembly in
accordance with paragraph 6A above shall be the Authority’s
substitute consolidated budget for the year.”

37 (1) Schedule 7 (procedure for making of substitute calculations by the
Authority) is amended as follows.

(2) 25In paragraph 3(1) for “52K or 52V” substitute “52ZW”.

(3) In paragraph 6(1) for “52K or 52V” substitute “52ZW”.

Section 67

SCHEDULE 7 Council tax: minor and consequential amendments

Local Government Finance Act 1988 (c. 41)Local Government Finance Act 1988 (c. 41)

1 30The Local Government Finance Act 1988 is amended as follows.

2 In section 74(4) (levies)—

(a) in paragraph (a) after “section” insert “31A or”, and

(b) in paragraph (b) after “section” insert “42A or”.

3 In section 75(6)(a) (special levies) after “section” insert “31A or”.

4 35In section 97(1) (principal transfers between funds)—

(a) for “32 to 36” substitute “31A, 31B and 34 to 36”,

(b) in the definition of item B for “33(1)” substitute “31B(1)”, and

(c) in the definition of item T for “33(1)” substitute “31B(1)”.

5 In section 99(4) (regulations about funds) for “32(4)” substitute “31A(4)”.

6 In Schedule 7 (non-domestic rating: multipliers) in paragraph 9(4) in the
definition of item C for “32(4)” substitute “31A(4)”.

Local Government Finance Act 1992 (c. 14)Local Government Finance Act 1992 (c. 14)

7 The Local Government Finance Act 1992 is amended as follows.

8 (1) 5Section 30 (amounts of council tax for different categories of dwelling) is
amended as follows.

(2) In subsection (2)—

(a) in paragraph (a) for “sections 32 to 36 below;” substitute “—

(i) in the case of a billing authority in England,
10sections 31A, 31B and 34 to 36 below, or

(ii) in the case of a billing authority in Wales,
sections 32 to 36 below;”, and

(b) in paragraph (b) for the words from “, have been calculated” to the
end of the paragraph substitute “—

(i) 15in the case of a billing authority in England,
have been calculated in accordance with
sections 42A, 42B and 45 to 47 below and have
been stated (or last stated) in accordance with
section 40 below in precepts issued to the
20authority by major precepting authorities, or

(ii) in the case of a billing authority in Wales, have
been calculated in accordance with sections 43
to 47 below and have been stated (or last
stated) in accordance with section 40 below in
25precepts issued to the authority by major
precepting authorities.”

(3) In subsection (4) for “sections 32” to the end of the subsection insert “—

(a) in the case of a billing authority in England, sections 31A, 31B
and 34 to 36 below, or sections 42A, 42B and 45 to 47 below,
30or both, or

(b) in the case of a billing authority in Wales, sections 32 to 36
below, or sections 43 to 47 below, or both.”

9 In section 31(1)(a) (substituted amounts) after “section” insert “36A,”.

10 (1) Section 32 (calculation of budget requirement by billing authority) is
35amended as follows.

(2) In the heading at the end insert “by authorities in Wales”.

(3) In subsection (1) after “billing authority” insert “in Wales”.

(4) In subsection (2)—

(a) omit the paragraph (a) inserted in relation to authorities in England
40by the Local Authorities (Alteration of Requisite Calculations)
(England) Regulations 2005 (S.I. 2005/190S.I. 2005/190) (so that the paragraph (a)
in that subsection as enacted continues to have effect for authorities
in Wales),

(b) at the end of paragraph (c) insert “and”, and

(c) 45omit paragraph (e).

(5) In subsection (3)—

(a) in paragraph (a)—

(i) omit the words “general fund or (as the case may be)”,

(ii) omit the words from “BID levy” to “2003”, and

(iii) 5omit the words “or (in the case of the Common Council only)
police grant”,

(b) omit paragraph (b), and

(c) in paragraph (c) for “, (b) and (e)” substitute “and (b)”.

(6) In subsection (3A)—

(a) 10omit “In the case of any billing authority in Wales”, and

(b) for “their” substitute “a billing authority’s”.

(7) For subsection (5) substitute—

“(5) In making the calculation under subsection (2) above the authority
must ignore—

(a) 15payments which must be met from a trust fund;

(b) payments to be made to the Secretary of State under
paragraph 5 of Schedule 8 to the 1988 Act or regulations
made under paragraph 5(15) of that Schedule;

(c) payments to be made in respect of the amount of any precept
20issued by a major precepting authority under Part 1 of this
Act (but not payments to be so made in respect of interest on
such an amount); and

(d) payments to be made to another person in repaying, under
regulations under the 1988 Act or Part 1 of this Act, excess
25receipts by way of non-domestic rates or council tax.”

(8) In subsection (7)(a) omit sub-paragraph (ii).

(9) Omit subsections (8) to (8B).

(10) In subsection (9)—

(a) for “Secretary of State” substitute “Welsh Ministers”, and

(b) 30for “(8B)” substitute “(7)”.

(11) In subsection (12) omit the definition of “police grant”.

(12) Omit subsection (13).

11 (1) Section 33 (calculation of basic amount of tax by billing authority) is
amended as follows.

(2) 35In the heading at the end insert “by authorities in Wales”.

(3) In subsection (1)—

(a) after “billing authority” insert “in Wales”, and

(b) in the definition of item P omit—

(i) “general fund or (as the case may be)”, and

(ii) 40“or (in the case of the Common Council only) police grant”.

(4) Omit subsections (3) and (3A).

(5) In subsection (3B)—

(a) omit “In the case of a Welsh county council or county borough
council,”, and

(b) in each of the definitions of items J, K and L for “council’s” substitute
“authority’s”.

(6) 5In subsection (4) omit “or subsection (3) above”.

(7) In subsection (5) for “Secretary of State” substitute “Welsh Ministers”.

12 In section 34(2) (additional calculation where special items relate to part only
of area)—

(a) in the definition of item B after “under” insert “section 31B(1) above
10or”, and

(b) in the definition of item T after “item T” insert “in section 31B(1)
above or”.

13 In section 35(1)(a) (special item for the purposes of section 34) after “under”
insert “section 31A(2) above or”.

14 15In section 36(1) (calculation of tax for different valuation bands) in the
definition of “item A” after the first “under” insert “section 31B(1) above or”.

15 After section 36 insert—

“36A Substitute calculations: England

(1) An authority in England which has made calculations in accordance
20with sections 31A, 31B and 34 to 36 above in relation to a financial
year (originally or by way of substitute) may make calculations in
substitution in relation to the year in accordance with those sections,
ignoring section 31A(11) above for this purpose.

(2) None of the substitute calculations shall have any effect if—

(a) 25the amount calculated under section 31A(4) above, or any
amount calculated under section 31B(1) or 34(2) or (3) above
as the basic amount of council tax applicable to any dwelling,
would exceed that so calculated in the previous calculations,
or

(b) 30the billing authority fails to comply with subsection (3) below
in making the substitute calculations.

(3) In making substitute calculations under section 31B(1) or 34(3)
above, the billing authority must use any amount determined in the
previous calculations for item T in section 31B(1) above or item TP in
35section 34(3) above.

(4) For the purposes of subsection (2)(a) above, one negative amount is
to be taken to exceed another if it is closer to nil (so that minus £1 is
to be taken to exceed minus £2).

(5) Subsections (2) and (3) above do not apply if the previous
40calculations have been quashed because of a failure to comply with
sections 31A, 31B and 34 to 36 above in making the calculations.”

16 In section 37(1) (substitute calculations) after “authority” insert “in Wales”.

17 (1) Section 40 (issue of precepts by major precepting authorities) is amended as
follows.

(2) In subsection (2)(a) for “sections 43 to 47 below;” substitute “—

(i) in the case of a precepting authority in England,
sections 42A, 42B and 45 to 47 below, or

(ii) in the case of a precepting authority in Wales, sections
543 to 47 below;”.

(3) In subsection (3) for “sections 43 to 47 below” substitute “—

(a) in the case of a precepting authority in England, sections 42A,
42B and 45 to 47 below, or

(b) in the case of a precepting authority in Wales, sections 43 to
1047 below.”

(4) After subsection (5) insert—

“(5A) No such precept may be issued by a precepting authority in England
to a billing authority before the earlier of the following—

(a) the earliest date on which, for the financial year for which the
15precept is issued, each of the periods prescribed for the
purposes of item T in section 31B(1) above, item T in section
42B(1) below and item TP in section 45(3) below has expired;

(b) the earliest date on which, for that year, each billing authority
has notified its calculations for the purposes of those items to
20the precepting authority.”

(5) In subsection (6) after the first “authority” insert “in Wales”.

(6) In subsection (8) after “subsection” insert “(5A),”.

(7) In subsection (9)—

(a) in paragraph (a)—

(i) 25after “(2)(a)” insert “(i)”, and

(ii) for “43 to 47” substitute “sections 42A, 42B and 45 to 47”,

(b) in paragraph (b)—

(i) after “(3)” insert “(a)”, and

(ii) for “43 to 47” substitute “sections 42A, 42B and 45 to 47”,

(c) 30in paragraph (c)—

(i) for “(6)” substitute “(5A)”, and

(ii) for “44(1)” substitute “42B(1)”, and

(d) in paragraph (d) for “(6)” substitute “(5A)”.

18 (1) Section 41 (precepts by local precepting authorities) is amended as follows.

(2) 35In subsection (2) for the words from “by the precepting authority” to the end
substitute “—

(a) in the case of a precepting authority in England, by that
authority under section 49A below as its council tax
requirement for the year, and

(b) 40in the case of a precepting authority in Wales, by that
authority under section 50 below as its budget requirement
for the year.”

(3) After that subsection insert—

“(2A) The Secretary of State may by regulations make provision that a
45billing authority in England making calculations in accordance with

section 31A above (originally or by way of substitute) may anticipate
a precept under this section; and the regulations may include
provision as to—

(a) the amounts which may be anticipated by billing authorities
5in pursuance of the regulations;

(b) the sums (if any) to be paid by such authorities  in respect of
amounts anticipated by them; and

(c) the sums (if any) to be paid by such authorities in respect of
amounts not anticipated by them.”

(4) 10In subsection (3)—

(a) for “Secretary of State” substitute “Welsh Ministers”, and

(b) after “billing authority” insert “in Wales”.

19 In section 42(1)(b) (substituted precepts) after “49” insert “49A,”.

20 (1) Section 43 (calculation of budget requirement by major precepting
15authority) is amended as follows.

(2) In the heading at the end insert “by authorities in Wales”.

(3) In subsection (1) after “major precepting authority” insert “in Wales”.

(4) Omit subsection (5).

(5) For subsections (6A) to (6D) substitute—

“(6A) 20In this section and section 44 below “police grant”, in relation to a
major precepting authority and a financial year, means the total
amount of grant payable to the authority in accordance with the
police grant report for that year.

(6B) In subsection (6A) above “police grant report” means a police grant
25report approved by a resolution of the House of Commons pursuant
to section 46 of the Police Act 1996.”

(6) In subsection (7)—

(a) for “Secretary of State” substitute “Welsh Ministers”, and

(b) in paragraph (b) for the words from “subsections” to “them”
30substitute “subsection (6)”.

21 (1) Section 44 (calculation of basic amount of tax by major precepting authority)
is amended as follows.

(2) In the heading at the end insert “by authorities in Wales”.

(3) In subsection (1) after “major precepting authority” insert “in Wales”.

(4) 35In each of subsections (4) and (5) for “Secretary of State” substitute “Welsh
Ministers”.

22 In section 45(2) (additional calculation where special items relate to part only
of area)-

(a) in the definition of item B after “under” insert “section 42B(1) above
40or”, and

(b) in the definition of item T after “item T” insert “in section 42B(1)
above or”.

23 In section 46(1) (special item for the purposes of section 34) after “under”
insert “section 42A(2) above or”.

24 In section 47(1) (calculation of tax for different valuation bands) in the
definition of “item A” after the first “under” insert “section 42B(1) above or”.

25 (1) 5Section 48 (calculation of amount payable by each billing authority) is
amended as follows.

(2) In subsection (1A) in the definition of item T for “33(1)” substitute “31B(1)”.

(3) In subsection (2)—

(a) for “44(1) or” substitute “42B(1) above or (as the case may be) 44(1)
10above or under section”, and

(b) in the definition of item T after the second “in” insert “section 31B(1)
or (as the case may be)”.

(4) In subsection (3) for “44(1) or” substitute “42B(1) above or 44(1) above or
under section”.

26 (1) 15Section 49 (substitute calculations) is amended as follows.

(2) In subsection (1) before paragraph (a) insert—

“(za) sections 42A, 42B and 45 to 48 above (originally or by way of
substitute),”.

(3) In subsection (1A) before paragraph (a) insert—

“(za) 20in a case falling within paragraph (za), the provisions
specified in that paragraph;”.

(4) In subsection (2)—

(a) before paragraph (a) insert—

“(za) in the case of a major precepting authority in England
25other than the Greater London Authority, the amount
under section 42A(4) above, or any amount calculated
under section 42B(1) or 45(2) or (3) above as the basic
amount of council tax applicable to any dwelling,
would exceed that so calculated in the previous
30calculations; or”,

(b) in paragraph (a) for “other than the Greater London Authority”
substitute “in Wales”,

(c) in paragraph (aa)(i) for “budget” substitute “council tax”, and

(d) in paragraph (b) for “subsection (3) or (3A) below” substitute
35“whichever of subsections (2A), (3) and (3A) below is applicable to
it”.

(5) After that subsection insert—

“(2A) In making substitute calculations under section 42B(1) or 45(3)
above, an authority in England other than the Greater London
40Authority must use any amount determined in the previous
calculations for item T in section 42B(1) above or item TP in section
45(3) above.”

(6) In subsection (3) for “the authority” substitute “an authority in Wales”.

(7) In subsection (3A)—

(a) 45for “authority” substitute “Greater London Authority”, and

(b) omit “P1 or” and “item P2 or”.

(8) Omit subsections (4A) to (4C).

(9) Before subsection (5) insert—

“(4D) Subsections (2) and (2A) above shall not apply if the previous
5calculations have been quashed because of a failure to comply with
sections 42A, 42B and 45 to 48 above in making the calculations.”

27 (1) Section 50 (calculation of budget requirement by major precepting
authorities) is amended as follows.

(2) In the heading at the end insert “by authorities in Wales”.

(3) 10In subsection (1) after “local precepting authority” insert “in Wales”.

28 In section 65(4)(a) (duty to consult ratepayers: timing) after “under” insert
“section 31A above or”.

29 In section 66(2)(c) (matters that may not be questioned except by an
application for judicial review)—

(a) 15for “32” substitute “31A”, and

(b) for “43” substitute “42A”.

30 (1) Section 67 (functions to be discharged only by authority) is amended as
follows.

(2) In subsection (2)(b)—

(a) 20for “32” substitute “31A”, and

(b) for “43” substitute “42A”.

(3) In subsection (2A)—

(a) before paragraph (a) insert—

“(za) the determination of an amount for item T in section
2531B(1) above;”, and

(b) after paragraph (b) insert—

“(ba) the determination of an amount for item T in section
42B(1) above;”.

(4) In subsection (3) after “(2)” insert “(ba) or”.

31 30In section 69 (interpretation of Part 1) omit subsection (2A).

Environment Act 1995 (c. 25)Environment Act 1995 (c. 25)

32 In section 71(6) of the Environment Act 1995 (National Park authorities to be
levying bodies) for the words from “32 or 43” to the end substitute “31A or
42A (calculation of council tax requirement by authorities in England) or
35section 32 or 42 (calculation of budget requirement by authorities in Wales)
of the Local Government Finance Act 1992.”

Police Act 1996 (c. 16)Police Act 1996 (c. 16)

33 In section 41(1) of the Police Act 1996 (directions as to minimum budget) for
the words from “budget requirement” to “Act 1992)” substitute “council tax
40requirement (under section 42A of the Local Government Finance Act 1992)
or budget requirement (under section 43 of that Act) for any financial year”.