Localism Bill (HL Bill 100)

(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) 5as a result, the final draft budget no longer complies with
the relevant principles.

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

(7) After paragraph 8A insert—

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

8B (1) This paragraph applies if—

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

(b) 15the Mayor has failed to comply with paragraph 6A(5)
above.

(2) If 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
20budget that complies with those principles at that meeting.

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

8C (1) This paragraph applies if—

(a) the Mayor presents a draft substitute consolidated budget
25to the Assembly in accordance with paragraph 6A above,

(b) a public meeting is held under paragraph 8 above to
consider 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) 30The draft substitute consolidated budget must be considered at
the public meeting.

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

(4) 35For the purposes of sub-paragraph (3) above, the only
amendments which are to be made are those agreed to by at least
two-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
40without amendment.

(6) The draft substitute consolidated budget as approved by the
Assembly 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.”

38 (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 79

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)—

(a) in sub-paragraph (i) omit “general fund or (as the case may be)”, and

(b) omit sub-paragraph (ii).

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

(10) 30In subsection (9)—

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

(b) for “(8B)” substitute “(7)”.

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

(12) Omit subsection (13).

11 (1) 35Section 33 (calculation of basic amount of tax by billing authority) is
amended as follows.

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

(3) In subsection (1)—

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

(b) 40in the definition of item P omit—

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

(ii) “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
5“authority’s”.

(6) In 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) 10in the definition of item B after “under” insert “section 31B(1) above
or”, 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”
15insert “section 31A(2) above or”.

14 In 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) 20An authority in England which has made calculations in accordance
with 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) 25None of the substitute calculations shall have any effect if—

(a) the 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,
30or

(b) the 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
35previous calculations for item T in section 31B(1) above or item TP in
section 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) 40Subsections (2) and (3) above do not apply if the previous
calculations 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
45follows.

(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) In subsection (2)(a) omit the words from “, other than” to “1988 Act”.

(5) In subsection (3)(a)—

(a) 20at the end of sub-paragraph (i) insert “or”, and

(b) omit sub-paragraph (iii).

(6) Omit subsection (5).

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

“(6A) In this section and section 44 below “police grant”, in relation to a
25major 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
report approved by a resolution of the House of Commons pursuant
30to section 46 of the Police Act 1996.”

(8) In subsection (7)—

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

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

21 (1) 35Section 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) Omit subsection (3).

(5) 40In subsection (4) omit “or subsection (3) above”.

(6) In 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
or”, and

(b) 5in 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
10definition of “item A” after the first “under” insert “section 42B(1) above or”.

25 (1) Section 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) 15for “44(1) or” substitute “42B(1) above or (as the case may be) 44(1)
above 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
20under section”.

26 (1) Section 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) 25In subsection (1A) before paragraph (a) insert—

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

(4) In subsection (2)—

(a) before paragraph (a) insert—

“(za) 30in the case of a major precepting authority in England
other 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,
35would exceed that so calculated in the previous
calculations; 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) 40in paragraph (b) for “subsection (3) or (3A) below” substitute
“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)
45above, an authority in England other than the Greater London

Authority 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) 5In subsection (3A)—

(a) for “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) 10Subsections (2) and (2A) above shall not apply if the previous
calculations 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) 15In the heading at the end insert “by authorities in Wales”.

(3) In 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
20application for judicial review)—

(a) for “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) 25In subsection (2)(b)—

(a) for “32” substitute “31A”, and

(b) for “43” substitute “42A”.

(3) In subsection (2A)—

(a) before paragraph (a) insert—

“(za) 30the determination of an amount for item T in section
31B(1) above;”, and

(b) after paragraph (b) insert—

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

(4) 35In subsection (3) after “(2)” insert “(ba) or”.

31 In 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
4042A (calculation of council tax requirement by authorities in England) or

section 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
5the words from “budget requirement” to “Act 1992)” substitute “council tax
requirement (under section 42A of the Local Government Finance Act 1992)
or budget requirement (under section 43 of that Act) for any financial year”.

Greater London Authority Act 1999 (c. 29)Greater London Authority Act 1999 (c. 29)

34 The Greater London Authority Act 1999 is amended as follows.

35 10In section 87 (procedure for determining the budget requirement) for
“budget” in each place (including the heading) substitute “council tax”.

36 (1) Section 95 (minimum budget for Metropolitan Police Authority) is amended
as follows.

(2) In each of the following provisions for “budget” substitute “council tax”—

(a) 15subsection (1),

(b) subsection (2),

(c) subsection (5)(a), and

(d) subsection (7)(b) (in both places).

(3) In subsection (8) omit “P1 or” and “item P2 or”.

(4) 20Omit subsections (9) to (11).

37 In section 97 (emergencies and disasters) in both of the following provisions
for “budget” substitute “council tax”—

(a) subsection (1)(b), and

(b) subsection (2)(b).

38 25In section 99—

(a) at the appropriate place insert ““BID levy” has the same meaning as
in Part 4 of the Local Government Act 2003;”,

(b) in each of the definitions of “component budget requirement” and
“consolidated budget requirement” for “budget” substitute “council
30tax”, and

(c) omit the definitions of “police grant” and “relevant special grant”.

39 In section 102(2) (distribution of grants between authority and functional
bodies—

(a) omit paragraph (c), and

(b) 35at the end of paragraph (g) (but not as part of that paragraph) insert
“and which are credited to a revenue account for the year in
accordance with proper practices.”

40 In Schedule 6 (procedure for determining the Authority’s consolidated
budget requirement) in each of the following provisions for “budget” in each
40place substitute “council tax”—

(a) the Schedule heading,

(b) paragraph 1(2)(a) and (3)(a) and (b),