44 The required percentage

(1) Subject to subsection (3), “the required percentage” in section 43(1)(b) means
5%.

(2) Subject to subsection (3), “the required percentage” in section 43(1)(c) means
51%.

(3) The Secretary of State may by order amend subsection (1) or (2) to specify a
higher or lower percentage than the percentage for the time being specified in
that subsection.

45 Request for referendum

(1) 10A request to a principal local authority complies with this section if—

(a) it requests the principal local authority to hold a local referendum in a
relevant area of that authority,

(b) each member who requests the local referendum is a member for an
electoral area in that relevant area,

(c) 15in the case of an electoral area with more than one member, all of the
members or a majority of the members for the area make the request,

(d) the request is made to the proper officer of the authority, and

(e) the request is in writing and dated, and states the question that the
members want to be asked in the referendum.

(2) 20A member of the Greater London Authority may not request a referendum
under this section.

46 Duty to determine appropriateness of referendum

(1) This section applies if—

(a) a principal local authority receives a petition that complies with section
2543, or

(b) a principal local authority receives a request that complies with section
45.

(2) The principal local authority must determine whether it is appropriate to hold
a local referendum in response to the petition or request.

(3) 30But subsection (2) does not apply to a petition or request if—

(a) it is received by a district council whose area is part of the area of a
county council, and

(b) the district council thinks the question stated in the petition or request
relates (in whole or in part) to the functions of a partner authority of the
35county council other than the district council.

(4) In such a case—

(a) the district council must refer the petition or request to the county
council,

(b) the county council must consider a petition so referred as if it had
40received it from the petitioners,

(c) the county council must consider a request so referred as if it had been
made to the county council in accordance with section 45, and

(d) any provision of this Chapter which requires a period to be calculated
by reference to the date of receipt of the petition or request has effect as

if it referred to the date on which the petition or request is received by
the county council.

(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
5been made to the county council.

47 Grounds for determination

(1) A 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) 10The 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
enactment 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) 15over 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
London 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) 20a matter is a “local matter” if—

(i) it relates to the economic, social or environmental well-being of
the 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
25a matter if the authority can affect that matter by the exercise of any of
its general or particular functions.

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

(6) 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 52(3) (substitution of question) if the local referendum takes
place, the question it thinks it is likely to substitute.

48 Petitions: special cases in which holding of referendum is discretionary

(1) 35Where a principal local authority has under section 46 made a determination
that it is appropriate to hold a local referendum in response to a petition, the
authority (if it has not already done so) must cause the petition to be—

(a) considered for the purposes of subsection (2) by its chief finance officer,
and

(b) 40considered for the purposes of subsections (3) and (4) by the proper
officer.

(2) The petition is a special-case petition if the authority’s chief finance officer
estimates that the cost of holding a local referendum in response to the petition
would be more than 5% of the amount last calculated by the authority before it

received the petition as its council tax requirement for the financial year in
which the petition was received by it.

(3) The petition is a special-case petition if the proper officer of the authority is of
the opinion that the matter to which the referendum question relates has been,
5or has substantially been, the subject of at least one local or other referendum
held—

(a) in the four years ending with the date on which the petition was
received by the authority, and

(b) in the area to which the petition relates (whether or not in that area
10alone).

(4) The petition is a special-case petition if the proper officer of the authority is of
the opinion that—

(a) there is a statutory process and it is the case, or is substantially the case,
that the process involves giving—

(i) 15members of the public, or

(ii) members of a section of the public,

an opportunity to make representations in relation to the matter, and

(b) it is the case, or is substantially the case, that persons adversely affected
by the matter or a decision made in relation to it have—

(i) 20a statutory right of appeal in respect of the substance of the
matter or decision, or

(ii) a statutory right to instigate a review of the substance of the
matter or decision.

(5) A person is not to be taken as having a right within subsection (4)(b)(i) or (ii)
25as a result of being able to—

(a) make an application for judicial review,

(b) make a complaint under Part 3 of the Local Government Act 1974 to a
Local Commissioner, or

(c) make a complaint to a housing ombudsman under a scheme approved
30for the purposes of Schedule 2 to the Housing Act 1996.

(6) In this section—

• “council tax requirement”, in relation to the Greater London Authority
  and a year, means the aggregate of—

  (a)

  the component council tax requirement for the year for the
  35London Assembly, and

  (b)

  the component council tax requirement for the year for the
  Mayor of London;

• “chief finance officer”, in relation to a principal local authority, means the
  officer having responsibility, for the purposes of—

  (a)

  40section 151 of the Local Government Act 1972,

  (b)

  section 6 of the Local Government and Housing Act 1989, or

  (c)

  section 127(2) of the Greater London Authority Act 1999,

  for the administration of the authority’s financial affairs;

• “the referendum question” has the meaning given by section 47(6);

• 45“statutory” means provided for by an Act or an instrument made under
  an Act.

49 Action following determination in response to petition

(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
petition, it must—

(a) 5notify the petition organiser of the determination, and

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

(2) The 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
10means, or

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

(3) If—

(a) the determination is that it is appropriate to hold the referendum, and

(b) the petition is not a special-case petition,

15the authority must make arrangements for the referendum to take place in
accordance with sections 52 to 55.

(4) Subsection (5) applies if—

(a) the determination is that it is appropriate to hold the referendum, and

(b) the petition is a special-case petition.

(5) 20The proper officer of the authority must—

(a) if the authority is not the Greater London Authority, arrange for a
meeting of the authority to decide on a resolution that the referendum
should be held, or

(b) if the authority is the Greater London Authority, arrange for the
25authority to decide on a resolution that the referendum should be held.

(6) The arrangements under subsection (5)(a) or (b) must be such as to enable the
decision concerned to be made as soon as is reasonably practicable after—

(a) the determination is made, or

(b) if later, the officer concerned came to be of the opinion as a result of
30which the petition is a special-case petition.

(7) If the authority—

(a) is not the Greater London Authority and resolves at the meeting
mentioned in subsection (5)(a) that the referendum should be held, or

(b) is the Greater London Authority and resolves that the referendum
35should be held,

it must make arrangements for the referendum to take place in accordance
with sections 52 to 55.

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

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

(b) 40subject to subsection (9), the authority must publish those reasons
when it publishes the determination.

(9) 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.

(10) In 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.

50 5Action 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
10officer of the authority must—

(a) if the authority is not the Greater London Authority, arrange for a
meeting of the authority to decide on a resolution that the referendum
should be held, or

(b) if the authority is the Greater London Authority, arrange for the
15authority to decide on a resolution that the referendum should be held.

(3) The arrangements under subsection (2)(a) or (b) must be such as to enable the
decision concerned to be made as soon as is reasonably practicable after the
determination is made.

(4) If the authority—

(a) 20is not the Greater London Authority and resolves at the meeting
mentioned in subsection (2)(a) that the referendum should be held, or

(b) is the Greater London Authority and resolves that the referendum
should be held,

it must make arrangements for the referendum to take place in accordance
25with sections 52 to 55.

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

51 Resolution for local referendum

(1) A resolution complies with this section if—

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

(b) 35it 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 52 to 55.

Arrangements for local referendum

52 40Question to be asked in local referendum

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

(2) That 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,

5as the case may be.

(3) But 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
10has consulted the petition organiser;

(b) in 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) 15if it has substituted its own wording, its reasons for doing so.

53 Date 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
20months beginning with the trigger date.

(3) If 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) 25Subsection (3) does not apply if the authority thinks that in all the
circumstances 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) 30In this section “the trigger date” means the date on which—

(a) the 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.

54 35Publicity for and in relation to local referendum

(1) The 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) 40The duty in subsection (1) is subject to any provision made by regulations
under section 55 (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
5for 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) 10enables the authority to incur only such expenditure as is reasonable.

55 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
15electoral 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
20local 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) 25when, 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) 30Regulations 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) 35creating criminal offences.

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

Consequences of local referendum

56 Consequences of local referendum

(1) 40A principal local authority must publicise the result of a local referendum held
in its area in such manner as the authority thinks appropriate.

(2) Subsections (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
5to the result.

(4) If 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
10matter over which a partner authority has an influence.

(6) The 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
15give effect to the result.

(8) If 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

57 20Application to parish councils

(1) The 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
25any provision made under, this Chapter;

(b) amend, 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.

58 30Discharge of functions

(1) Section 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
35arrangements, a function of passing a resolution under this Chapter is not to be
the responsibility of the authority’s executive under those arrangements.

(3) In the case of the Greater London Authority, a function of passing a resolution
under this Chapter is to be exercisable (in accordance with this Chapter) by the
Mayor of London and the London Assembly acting jointly on behalf of the
40Authority.

59 Interpretation

(1) In this Chapter—

• “electoral area” means—

  (a)

  in relation to a district council, a London borough council or the
  5Common Council of the City of London, a ward;

  (b)

  in relation to a county council, an electoral division;

  (c)

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

  (d)

  10in relation to the Council of the Isles of Scilly, a parish;

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

• “enactment” includes an enactment contained in a local Act or comprised
  in subordinate legislation (within the meaning of the Interpretation Act
  151978);

• “local government elector” means—

  (a)

  a 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)

  20in relation to the Common Council of the City of London, a
  person whose name appears in a ward list published under
  section 7 of the City of London (Various Powers) Act 1957 (5 &
  6 Eliz 2 c x),

  and the reference in section 55(1)(b) to the register of local government
  25electors is to be read accordingly;

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

• “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;

• 30“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
  Involvement in Health Act 2007;

• “petition organiser” has the meaning given by section 49(10);

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

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

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

• “special-case petition” has the meaning given by section 48.

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

(a) 40in 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
of London or a London Assembly member.

(3) For the purposes of this Chapter the Inner Temple and the Middle Temple are
45to 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

60 Referendums relating to council tax increases

(1) In 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) 5Schedule 6 (council tax referendums: further amendments) has effect.

61 References to proper accounting practices

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

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

“(ca) 10the 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”.

62 Council tax calculations by billing authorities in England

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

“31A 15Calculation 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) The authority must calculate the aggregate of—

(a) the expenditure which the authority estimates it will incur in
20the 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) such allowance as the authority estimates will be appropriate
for contingencies in relation to amounts to be charged or
25credited to a revenue account for the year in accordance with
proper practices,

(c) the financial reserves which the authority estimates it will be
appropriate to raise in the year for meeting its estimated future
expenditure,

(d) 30such 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
provided for,

(e) any amounts which it estimates will be transferred in the year
35from 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
general fund to its collection fund pursuant to a direction under
section 98(5) of the 1988 Act and charged to a revenue account
40for the year.

(3) The authority must calculate the aggregate of—