Localism Bill (HL Bill 100)

Localism BillPage 310

(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

Localism BillPage 311

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.

Localism BillPage 312

(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) No regulations under this section are to be made unless a draft of the
regulations has been laid before and approved by resolution of each
House of Parliament.

(8) 10In this section “enactment” includes an enactment contained in a
local Act or comprised in subordinate legislation (within the
meaning of the Interpretation Act 1978).

Directions that referendum provisions are not to apply

52ZR Direction that referendum provisions are not to apply

(1) 15The 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
calculations are such as to produce a relevant basic amount of
council tax that is excessive by reference to the principles determined
20by the Secretary of State for the year—

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

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

(2) The Secretary of State may give a direction under this section to the
25Greater London Authority if it appears to the Secretary of State that,
unless the Authority’s council tax calculations are such as to produce
a relevant basic amount of council tax that is excessive by reference
to the principles determined by the Secretary of State for the year—

(a) one or more of the Authority’s constituent bodies will be
30unable 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) The effect of a direction under this section is that the referendum
provisions do not apply for the financial year to, and no further step
35is to be taken for the financial year under the referendum provisions
by—

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

(b) where that authority is a precepting authority, a billing
authority as a result of any notification under section 52ZK or
4052ZM above by the precepting authority.

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

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

(b) 45in 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.

Localism BillPage 313

(5) A 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
5if—

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

(b) that amount has not been approved as mentioned in section
1052ZH above (where the authority is a billing authority) or
section 52ZO above (where the authority is a precepting
authority).

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

(a) 15for a billing authority: section 52ZS below;

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

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

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

(8) 20In this Part—

  • “constituent body” means—

    (a)

    the Mayor of London,

    (b)

    the London Assembly, or

    (c)

    a functional body within the meaning of section 424 of
    25the Greater London Authority Act 1999;

  • “council tax calculations” means—

    (a)

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

    (b)

    in relation to a major precepting authority other than
    30the Greater London Authority, calculations under
    sections 42A, 42B and 45 to 48 above,

    (c)

    in relation to the Greater London Authority,
    calculations under sections 85 to 90 of the Greater
    London Authority Act 1999 and sections 47 and 48
    35above, and

    (d)

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

  • “the referendum provisions” means—

    (a)

    where the direction is given to a billing authority,
    40sections 52ZB and 52ZF to 52ZI above,

    (b)

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

    (c)

    where the direction is given to a local precepting
    45authority, 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
section 52ZR above to a billing authority.

Localism BillPage 314

(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
5treated for all purposes as the amount calculated by the billing
authority under section 31A above.

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

(a) 10those calculations are of no effect, and

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

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

(a) 15the amount stated in the direction as the amount of the billing
authority’s council tax requirement for the financial year is to
be treated as the amount calculated by the billing authority
under section 31A above, and

(b) subsections (2)(a) and (4) of section 36A above are to be
20ignored.

52ZT Directions to major precepting authorities

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

(2) 25The direction must state the amount that is to be the amount of the
major precepting authority’s council tax requirement for the
financial year.

(3) If the direction is given before the major precepting authority has
carried out its council tax calculations for the financial year, that
30amount is to be treated for all purposes as the amount calculated by
the major precepting authority under section 42A above.

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

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

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

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

(a) 40the amount stated in the direction as the amount of the major
precepting authority’s council tax requirement for the
financial year is to be treated as the amount calculated by the
billing authority under section 42A above, and

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

Localism BillPage 315

52ZU Directions to the Greater London Authority

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

(2) The direction must specify the amount that is to be the component
5council tax requirement for the relevant constituent body for the
year.

(3) The Greater London Authority must make calculations in
substitution in relation to the financial year under subsections (4) to
(7) of section 85 of the Greater London Authority Act 1999 in relation
10to—

(a) the relevant constituent body alone, or

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

(4) Subsection (5) below applies if the result of the substitute
15calculations is such that—

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

(b) there is no such increase, but the results of the calculations in
substitution made in accordance with sections 85, 86 and 88
20to 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) The Greater London Authority must make calculations in
substitution in accordance with the provisions mentioned in
25subsection (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
to the financial year in accordance with—

(a) sections 85 to 90 of the Greater London Authority Act 1999
30and 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) None of the substitute calculations is to have any effect if—

(a) the amount calculated under section 85(6) or (7) of the
35Greater 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
consolidated council tax requirement for the financial year
(as last calculated) which exceeds the increase required to be
40made to the component council tax requirement for the
relevant constituent body (as last calculated for the year) to
comply with the direction, or

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

(8) 45In 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

Localism BillPage 316

item T in section 88(2) of that Act or for item TP2 in section 89(4) of
that Act.

(9) Subsections (7)(c) and (8) above do not apply if the previous
calculations have been quashed because of a failure to comply with
5the appropriate Greater London provisions in making the
calculations.

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

(a) in the case of calculations required to be made in accordance
10with sections 85 to 90 of the Greater London Authority Act
1999 and sections 47 and 48 above, those provisions, and

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

(11) 15Any substitute calculations under this section are to be made in
accordance with Schedule 7 to the Greater London Authority Act
1999.

(12) In this Part—

  • “component council tax requirement” has the meaning given by
    20section 85(6) of the Greater London Authority Act 1999;

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

  • “the relevant constituent body”, in relation to a direction under
    section 52ZR above, means the constituent body by reference
    25to 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
section 52ZR above to a local precepting authority.

(2) 30The 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
calculated by the local precepting authority under section 49A
35above.

(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
relation to the year in accordance with that section (so that, in
40particular, 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) must make the calculations, and

(b) 45in the case of a major precepting authority, must issue any
precepts in substitution required in consequence under
section 42 above,

Localism BillPage 317

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

(2) A 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
5subsection (3) below.

(3) That period is—

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

(b) 10the 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
the period of restriction to transfer any amount from its collection
fund to its general fund; and sections 97 and 98 of the 1988 Act have
15effect 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
to pay anything in respect of a precept issued by the precepting
authority for the financial year.

(6) 20For the purposes of subsections (4) and (5) above “the period of
restriction” is the period—

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

(b) ending at the time (if any) when the authority complies with
25subsection (1) or (2) above (as the case may be).

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

(8) Subject to variation or revocation, a direction under section 52ZR
30above has effect in relation to any substitute calculations made under
any enactment by the Greater London Authority—

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

(b) 35in relation to the financial year to which the direction relates,
and

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

(9) Where a direction under section 52ZR above has effect in relation to
any substitute calculations by virtue of subsection (8) above, none of
40the calculations have effect if the amount calculated under section
85(6) of the Greater London Authority Act 1999 for the relevant
constituent body is not in compliance with the direction.

Meaning of basic amount of council tax

52ZX Meaning of relevant basic amount of council tax

(1) 45Any reference in this Chapter to a billing authority’s relevant basic
amount of council tax for a financial year is a reference to the amount

Localism BillPage 318

that would be calculated by it in relation to the year under section
31B(1) above if section 31A above did not require or permit it to take
into account—

(a) the amount of any precepts—

(i) 5issued to it for the year by local precepting
authorities, or

(ii) anticipated by it in pursuance of regulations under
section 41 above,

(b) the amount of any levies and special levies—

(i) 10issued to it for the year, or

(ii) anticipated by it in pursuance of regulations under
section 74 or 75 of the 1988 Act, or

(c) the amount of any expenditure it estimates it will incur in the
year that will be qualifying expenditure in taking steps to
15give effect to the result of any qualifying local referendum
held in an area consisting of, or including, the whole of its
area.

(2) In the case of a major precepting authority other than a county
council or the Greater London Authority, any reference in this
20Chapter to the authority’s relevant basic amount of council tax for a
financial year is a reference to the amount calculated by it in relation
to the year under section 42B(1) above.

(3) In the case of a major precepting authority that is a county council,
any reference in this Chapter to the authority’s relevant basic
25amount of council tax for a financial year is a reference to the amount
that would be calculated by it in relation to the year under section
42B(1) above if section 42A above did not require or permit it to take
into account—

(a) the amount of any levies—

(i) 30issued to it for the year, or

(ii) anticipated by it in pursuance of regulations under
section 74 of the 1988 Act, or

(b) the amount of any expenditure it estimates it will incur in the
year that will be qualifying expenditure in taking steps to
35give effect to the result of any qualifying local referendum
held in an area consisting of the whole of its area.

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

(a) 40the amount (referred to in this Chapter as the Greater London
Authority’s unadjusted relevant basic amount of council tax
for the year) that would be calculated by it under section
88(2) of the Greater London Authority Act 1999 if sections 85
and 86 of that Act did not require or permit it—

(i) 45to take into account the amount of any levies issued to
a constituent body for the year,

(ii) to anticipate, in pursuance of regulations under
section 74 of the 1988 Act, the issue of levies to a
constituent body, or

(iii) 50to take into account the amount of any expenditure it
estimates a constituent body will incur in the year that

Localism BillPage 319

will be qualifying expenditure in taking steps to give
effect to the result of any qualifying local referendum
held in an area consisting of the whole of Greater
London, or

(b) 5any amount (referred to in this Chapter as the Greater
London Authority’s adjusted relevant basic amount of
council tax for the year) that would be calculated by it under
section 89(3) of the Greater London Authority Act 1999 if
sections 85 and 86 of that Act did not require or permit it—

(i) 10to take into account the amount of any levies issued to
a constituent body for the year,

(ii) to anticipate, in pursuance of regulations under
section 74 of the 1988 Act, the issue of levies to a
constituent body, or

(iii) 15to take into account the amount of any expenditure it
estimates a constituent body will incur in the year that
will be qualifying expenditure in taking steps to give
effect to the result of any qualifying local referendum
held in an area consisting of the whole of Greater
20London.

(5) Any reference in this Chapter to a local precepting authority’s
relevant basic amount of council tax for a financial year is a reference
to the amount found by applying the formula—


25where—

  • R is the amount calculated by the authority under section
    49A(4) above as its council tax requirement for the year;

  • T is the amount which is calculated by the billing authority to
    which the authority issues precepts (“the billing authority
    30concerned”) as its council tax base for the year for the part of
    its area comprising the authority’s area and is notified by it to
    the authority within the prescribed period.

(6) Where the aggregate calculated by the authority for the year under
subsection (2) of section 49A above does not exceed that so calculated
35under subsection (3) of that section, the amount for item R in
subsection (5) above is to be nil.

(7) The Secretary of State must make regulations containing rules for
making for any year the calculation required by item T in subsection
(5) above; and the billing authority concerned must make the
40calculations for any year in accordance with the rules for the time
being effective (as regards the year) under the regulations.

(8) Regulations prescribing a period for the purposes of item T in
subsection (5) above may provide that, in any case where a billing
authority fails to notify its calculation to the precepting authority