(c) if the authority has any functions other than Welsh devolved functions,
invite the appropriate national authority to make representations,

before deciding whether to terminate or vary the requirement mentioned in
subsection (5).

(8) 5If the authority makes an application under subsection (6) the Welsh Ministers
may by notice to the authority suspend the requirement until further notice
(but this does not affect the liability to make any payment once the suspension
is ended, unless the final notice is varied to have that effect).

67 Interpretation of Part: general

10In this Part—

• “act” includes omission;

• “the appropriate national authority”, in relation to a Welsh public
  authority with any functions other than Welsh devolved functions, has
  the meaning given by section 61(5);

• 15“Article 260(2) proceedings” has the meaning given by section 58(5)(c);

• “Court of Justice” means the Court of Justice of the European Union;

• “EU financial sanction” has the meaning given by section 58(5)(a);

• “final notice” means a notice under section 66;

• “functions” and “Welsh devolved functions” are to be construed in
  20accordance with section 61(3) and (4);

• “infraction of EU law”, in relation to an EU financial sanction, has the
  meaning given by section 58(5)(b);

• “Minister of the Crown” has the same meaning as in the Ministers of the
  Crown Act 1975;

• 25“periodic payment”, in relation to an EU financial sanction that is or
  includes a penalty payment, means a payment due under the terms of
  the penalty payment;

• “warning notice” means a notice under section 64;

• “Welsh public authority” has the meaning given in section 61(2).

30Part 4 Non-domestic rates etc

Business rate supplements

68 Ballot for imposition and certain variations of a business rate supplement

(1) The Business Rate Supplements Act 2009 (“the 2009 Act”) is amended as
35follows.

(2) In section 4(c) (condition for imposing a BRS) for “where there is to be a ballot
on the imposition of the BRS, the ballot” substitute “a ballot”.

(3) In section 7 (holding of ballot) omit subsections (1), (2) and (5) (provision about
the circumstances in which a ballot on the imposition of a BRS is to be held).

(4) 40In section 8(1) (meaning of approve by ballot) for “If a ballot on the imposition
of a BRS is held, the imposition of the BRS” substitute “The imposition of a
BRS”.

(5) In section 10 (variations)—

(a) in subsection (2)(c) (condition for varying a BRS) omit the words from
the beginning to “subsection (7),”, and

(b) omit subsections (7) to (9) (provision about the circumstances in which
5a ballot on a proposal to vary a BRS is to be held).

(6) In Schedule 1 (information to be included in a prospectus for a BRS) for
paragraphs 19 and 20 (information required in relation to a ballot on the
imposition of the BRS) substitute—

“19 In an initial prospectus, a statement that there is to be a ballot on the
10imposition of the BRS.

20 In a final prospectus—

(a) a statement that a ballot has been held on the imposition of
the BRS;

(b) the results of the ballot, including in particular—

(i) 15the total number of votes cast,

(ii) the number of persons who voted in favour of the
imposition of the BRS,

(iii) the number of persons who voted against its
imposition,

(iv) 20the aggregate of the rateable values of each
hereditament in respect of which a person voted in
the ballot,

(v) the aggregate of the rateable values of each
hereditament in respect of which a person voted in
25favour of the imposition of the BRS, and

(vi) the aggregate of the rateable values of each
hereditament in respect of which a person voted
against its imposition.”

(7) The amendments made by this section do not apply in relation to a BRS
30imposed before the date this section comes into force (whether or not the
chargeable period of the BRS has begun before that date).

(8) In this section—

• “BRS” means a business rate supplement (see section 1 of the 2009 Act);

• “chargeable period” has the meaning given by section 11(6) of that Act.

35Non-domestic rates

69 Non-domestic rates: discretionary relief

(1) Section 47 of the Local Government Finance Act 1988 (non-domestic rates:
discretionary relief) is amended as follows.

(2) In subsection (1) (eligibility for relief) for the words from “the first and second
40conditions” to “are fulfilled” substitute “the condition mentioned in subsection
(3) below is fulfilled”.

(3) Omit subsection (2) (the first eligibility condition).

(4) In subsection (3) (the second eligibility condition) omit “second”.

(5) Omit subsections (3A) to (3D) (the other eligibility conditions).

(6) After subsection (5) insert—

“(5A) So far as a decision under subsection (3) above would have effect where
none of section 43(6) above, section 43(6B) above and subsection (5B)
5below applies, the billing authority may make the decision only if it is
satisfied that it would be reasonable for it to do so, having regard to the
interests of persons liable to pay council tax set by it.

(5B) This subsection applies on the chargeable day if—

(a) all or part of the hereditament is occupied for the purposes of
10one or more institutions or other organisations—

(i) none of which is established or conducted for profit, and

(ii) each of whose main objects are charitable or are
otherwise philanthropic or religious or concerned with
education, social welfare, science, literature or the fine
15arts, or

(b) the hereditament—

(i) is wholly or mainly used for purposes of recreation, and

(ii) all or part of it is occupied for the purposes of a club,
society or other organisation not established or
20conducted for profit.

(5C) A billing authority in England, when making a decision under
subsection (3) above, must have regard to any relevant guidance issued
by the Secretary of State.

(5D) A billing authority in Wales, when making a decision under subsection
25(3) above, must have regard to any relevant guidance issued by the
Welsh Ministers.”

(7) Before subsection (9) insert—

“(8A) This section does not apply where the hereditament is an excepted
hereditament.”

70 30Small business relief

(1) Section 43 of the Local Government Finance Act 1988 (liability to non-domestic
rates) is amended as follows.

(2) In subsection (4B)(a) (small business relief: England) omit—

(a) sub-paragraph (i) (maximum rateable value of hereditament), and

(b) 35sub-paragraph (iii) (requirement for application).

(3) Omit subsection (4C) (form and content of application).

(4) In subsection (4D) (offence of making false application)—

(a) after “If” insert “the ratepayer makes an application in order to satisfy
a condition prescribed under subsection (4B)(a)(ii) above and”,

(b) 40in paragraph (a) for “an application under subsection (4B)(a)(iii) above”
substitute “the application”, and

(c) in paragraph (b) for “such an” substitute “the”.

71 Cancellation of liability to backdated non-domestic rates

After section 49 of the Local Government Finance Act 1988 insert—

“49A Cancellation of backdated liabilities for days in years 2005 to 2010

(1) The Secretary of State may by regulations provide that, in a prescribed
5case, the chargeable amount under section 43 or 45 for a hereditament
in England for a chargeable day is zero.

(2) The regulations may give that relief in relation to a hereditament and a
chargeable day only if—

(a) the hereditament is shown for the day in a local non-domestic
10rating list compiled on 1 April 2005, and

(b) it is shown for that day as it is shown as the result of an
alteration of the list made after the list was compiled.

(3) The regulations may give that relief in relation to a hereditament and a
chargeable day subject to the fulfilment of prescribed conditions.

(4) 15A prescribed condition may be—

(a) a condition to be fulfilled in relation to the hereditament,

(b) a condition to be fulfilled in relation to some other
hereditament, or

(c) some other condition.

(5) 20The conditions that may be prescribed include, in particular—

(a) conditions relating to the circumstances in which an alteration
of a local non-domestic rating list was made;

(b) conditions relating to the consequences of the alteration;

(c) conditions relating to the length of the period beginning with
25the first day from which an alteration had effect and ending
with the day on which the alteration was made;

(d) conditions relating to a person’s liability or otherwise to non-
domestic rates at any time.”

Part 5 30Community empowerment

CHAPTER 1 Council tax

72 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) 35Schedule 6 (council tax referendums: further amendments) has effect.

73 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) the 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”.

74 5Council tax calculations by billing authorities in England

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

“31A Calculation 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) 10The authority must calculate the aggregate of—

(a) the expenditure which the authority estimates it will incur in
the 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) 15such allowance as the authority estimates will be appropriate
for contingencies in relation to amounts to be charged or
credited to a revenue account for the year in accordance with
proper practices,

(c) the financial reserves which the authority estimates it will be
20appropriate to raise in the year for meeting its estimated future
expenditure,

(d) such 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
25provided for,

(e) any amounts which it estimates will be transferred in the year
from 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
30general fund to its collection fund pursuant to a direction under
section 98(5) of the 1988 Act and charged to a revenue account
for the year.

(3) The authority must calculate the aggregate of—

(a) the income which it estimates will accrue to it in the year and
35which it will credit to a revenue account, other than a BID
Revenue Account, for the year in accordance with proper
practices,

(b) any amounts which it estimates will be transferred in the year
from its collection fund to its general fund in accordance with
40section 97(3) of the 1988 Act,

(c) any amounts which it estimates will be transferred from its
collection fund to its general fund pursuant to a direction under
section 98(4) of the 1988 Act and will be credited to a revenue
account for the year, and

(d) 45the amount of the financial reserves which the authority
estimates it will use in order to provide for the items mentioned
in subsection (2)(a), (b), (e) and (f) above.

(4) If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.

(5) 5In making the calculation under subsection (2) above the authority
must ignore payments which must be met from its collection fund
under section 90(2) of the 1988 Act or from a trust fund.

(6) In estimating under subsection (2)(a) above the authority must take into
account—

(a) 10the amount of any expenditure which it estimates it will incur
in the year in making any repayments of grants or other sums
paid to it by the Secretary of State, and

(b) the amount of any precept issued to it for the year by a local
precepting authority and the amount of any levy or special levy
15issued to it for the year.

(7) But (except as provided by regulations under section 41 below or
regulations under section 74 or 75 of the 1988 Act) the authority must
not anticipate a precept, levy or special levy not issued.

(8) For the purposes of subsection (2)(c) above an authority’s estimated
20future expenditure is—

(a) that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
25sufficiently available—

(i) sums which will be payable for the year into its general
fund and in respect of which amounts will be credited to
a revenue account for the year in accordance with
proper practices, and

(ii) 30sums which will be transferred as regards the year from
its collection fund to its general fund, and

(b) that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
35charged to a revenue account for that or any other year in
accordance with proper practices.

(9) In making the calculation under subsection (3) above the authority
must ignore—

(a) payments which must be made into its collection fund under
40section 90(1) of the 1988 Act or to a trust fund, and

(b) subject to paragraphs (b) and (c) of subsection (3) above, sums
which have been or are to be transferred from its collection fund
to its general fund.

(10) The Secretary of State may by regulations do either or both of the
45following—

(a) alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);

(b) alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
subsections (5) to (9) above, or any of them, or by adding other
provisions, or by a combination of those methods).

(11) 5Calculations to be made in relation to a particular financial year under
this section must be made before 11th March in the preceding financial
year, but they are not invalid merely because they are made on or after
that date.

(12) This section is subject to section 52ZS below (which requires a direction
10to a billing authority that the referendum provisions in Chapter 4ZA
are not to apply to the authority for a financial year to state the amount
of the authority’s council tax requirement for the year).

(13) In this section “BID Revenue Account” has the same meaning as in Part
4 of the Local Government Act 2003.

31B 15Calculation of basic amount of tax by authorities in England

(1) In relation to each financial year a billing authority in England must
calculate the basic amount of its council tax by applying the formula—

(2) Where the aggregate calculated (or last calculated) by the authority for
the year under subsection (2) of section 31A above does not exceed that
30so calculated under subsection (3) of that section, the amount for item
R in subsection (1) above is to be nil.

(3) The Secretary of State must make regulations containing rules for
making for any year the calculation required by item T in subsection (1)
above; and a billing authority must make the calculation for any year in
35accordance with the rules for the time being effective (as regards the
year) under the regulations.

(4) Regulations prescribing a period for the purposes of item T in
subsection (1) above may provide that, in any case where a billing
authority fails to notify its calculation to the major precepting
40authorities concerned within that period, that item must be determined
in the prescribed manner by such authority or authorities as may be
prescribed.

(5) The Secretary of State may by regulations do either or both of the
following—

(a) 45alter the constituents of any calculation to be made under
subsection (1) above (whether by adding, deleting or amending
items);

(b) provide for rules governing the making of any calculation
under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”

75 5Council tax calculations by major precepting authorities in England

Before section 43 of the Local Government Finance Act 1992 insert—

“42A Calculation of council tax requirement by authorities in England

(1) In relation to each financial year a major precepting authority in
England must make the calculations required by this section.

(2) 10The authority must calculate the aggregate of—

(a) the expenditure the authority estimates it will incur in the year
in performing its functions and will charge to a revenue account
for the year in accordance with proper practices,

(b) such allowance as the authority estimates will be appropriate
15for contingencies in relation to amounts to be charged or
credited 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
20expenditure, and

(d) such 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.

(3) 25The authority must calculate the aggregate of—

(a) the income which it estimates will accrue to it in the year and
which it will credit to a revenue account for the year in
accordance with proper practices, other than income which it
estimates will accrue to it in respect of any precept issued by it,
30and

(b) the amount of the financial reserves which the authority
estimates that it will use in order to provide for the items
mentioned in paragraphs (a) and (b) of subsection (2) above.

(4) If the aggregate calculated under subsection (2) above exceeds that
35calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.

(5) In making the calculation under subsection (2) above the authority
must ignore payments which must be met from a trust fund.

(6) 40In estimating under subsection (2)(a) above an authority must take into
account—

(a) the amount of any expenditure which it estimates it will incur
in the year in making any repayments of grants or other sums
paid to it by the Secretary of State, and

(b) 45in the case of an authority which is a county council, the amount
of any levy issued to it for the year.

(7) But (except as provided by regulations under section 74 of the 1988 Act)
the authority must not anticipate a levy not issued.

(8) For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—

(a) 5that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available—

(i) 10sums which will be payable to it for the year, and

(ii) sums in respect of which amounts will be credited to a
revenue account for the year in accordance with proper
practices, and

(b) that which the authority estimates it will incur in the financial
15year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
charged to a revenue account for that or any other year in
accordance with proper practices.

(9) In making the calculation under subsection (3) above the authority
20must ignore payments which must be made into a trust fund.

(10) In estimating under subsection (3)(a) above the authority must take into
account the sums which the authority estimates will be paid to it in the
year by billing authorities in accordance with regulations under section
99(3) of the 1988 Act.

(11) 25The Secretary of State may by regulations do one or both of the
following—

(a) alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);

(b) 30alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
subsections (5) to (10) above, or any of them, or by adding other
provisions, or by a combination of those methods).

(12) This section is subject to section 52ZT below (which requires a direction
35to a major precepting authority that the referendum provisions in
Chapter 4ZA are not to apply to the authority for a financial year to
state the amount of the authority’s council tax requirement for the
year).

42B Calculation of basic amount of tax by authorities in England

(1) 40In relation to each financial year a major precepting authority in
England must calculate the basic amount of its council tax by applying
the formula—

(2) 10Where the aggregate calculated (or last calculated) by the authority for
the year under subsection (2) of section 42A above does not exceed that
so calculated under subsection (3) of that section, the amount for item
R in subsection (1) above is to be nil.

(3) The Secretary of State must make regulations containing rules for
15making for any year the calculation required by item T in subsection (1)
above; and the billing authorities concerned must make the calculations
for any year in accordance with the rules for the time being effective (as
regards the year) under the regulations.

(4) Regulations prescribing a period for the purposes of item T in
20subsection (1) above may provide that, in any case where a billing
authority fails to notify its calculation to the precepting authority
concerned within that period, that item must be determined in the
prescribed manner by such authority or authorities as may be
prescribed.

(5) 25The Secretary of State may by regulations do either or both of the
following—

(a) alter the constituents of any calculation to be made under
subsection (1) above (whether by adding, deleting or amending
items);

(b) 30provide for rules governing the making of any calculation
under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”

76 Calculation of council tax requirement by the Greater London Authority

(1) 35Section 85 of the Greater London Authority Act 1999 (calculation of component
and consolidated budget requirements) is amended as follows.

(2) In the section heading for “budget” substitute “council tax”.

(3) In subsection (1) for “43” substitute “42A”.

(4) In subsection (4)—

(a) 40in paragraph (a) for the words from “, other than” to “the 1988 Act”
substitute “in accordance with proper practices”, and

(b) in paragraph (b)—

(i) for “expenditure to be charged” substitute “amounts to be
charged or credited”, and

(ii) 45after “for the year” insert “in accordance with proper practices”.