Local Government Finance Bill (HL Bill 24)

(2) Each such account must be kept in accordance with the provisions
of this Schedule that apply to a levy account.

(3) The Secretary of State—

(a) must keep each such account in such form as the Treasury
5may direct, and

(b) must, at such time as the Treasury may direct, send copies
of each such account to the Comptroller and Auditor
General.

(4) The Comptroller and Auditor General—

(a) 10must examine, certify and report on any account of which
copies are sent to the Comptroller and Auditor General
under sub-paragraph (3), and

(b) must arrange for copies of the account and of the
Comptroller and Auditor General’s report on it to be laid
15before each House of Parliament.

Credits and debits

18 (1) For each year the following are to be credited (as items of account)
to the levy account kept for the year—

(a) amounts received by the Secretary of State in the year
20under paragraph 22 (levy payments), and

(b) amounts received by the Secretary of State in the year
under regulations under paragraph 26 (payments on
account).

(2) If a local government finance report for a year has been approved
25by resolution of the House of Commons, and that report provides
for an amount to be credited to the levy account kept for the year,
that amount may be credited (as an item of account) to that
account.

(3) For each year the following are to be debited (as items of account)
30to the levy account kept for the year—

(a) payments made by the Secretary of State in the year under
paragraph 25 (safety net payments),

(b) payments made by the Secretary of State in the year under
regulations under paragraph 26, and

(c) 35payments made by the Secretary of State in the year under
paragraph 28 (distribution of remaining balance).

End of year calculations

19 (1) As soon as is reasonably practicable after the end of each year, the
Secretary of State must calculate—

(a) 40the aggregate of the items of account credited to the levy
account kept for the year, and

(b) the aggregate of the items of account debited to the levy
account kept for the year.

(2) If the aggregate mentioned in sub-paragraph (1)(a) exceeds that
45mentioned in sub-paragraph (1)(b), an amount equal to the excess
must be—

(a) debited (as an item of account) to the levy account kept for
the year, and

(b) credited (as an item of account) to the levy account kept for
the next year.

(3) 5If the aggregate mentioned in sub-paragraph (1)(b) exceeds that
mentioned in sub-paragraph (1)(a), an amount equal to the excess
must be—

(a) credited (as an item of account) to the levy account kept for
the year, and

(b) 10debited (as an item of account) to the levy account kept for
the next year.

Part 7 Levy payments, safety net payments and distribution of remaining
balance

15Regulations about calculation of levy payments

20 (1) The Secretary of State may by regulations make provision for
calculating—

(a) whether a relevant authority is required to make a
payment under this Part of this Schedule (a “levy
20payment”) to the Secretary of State for a year, and

(b) if so, the amount of the levy payment.

(2) The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) The regulations may, in particular, make provision for
25calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference
to the total paid to it in respect of the year under sections
43 and 45, subject to such adjustments as may be specified
in the regulations;

(b) 30if the relevant authority is a major precepting authority, by
reference to the total paid to it for the year under
regulations under paragraph 8 (payments by billing
authorities to major precepting authorities), subject to such
adjustments as may be specified in the regulations;

(c) 35by reference to payments of a kind specified in the
regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
regulations.

(4) The regulations may, in particular, make provision for
40adjustments to an amount calculated under provision made under
sub-paragraph (3) by reference to changes affecting the calculation
of such an amount for an earlier year but not taken into account in
that calculation.

Calculation of levy payments

21 (1) The Secretary of State must calculate in relation to each relevant
authority—

(a) whether it is required to make a levy payment for a year,
5and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) as soon as is reasonably practicable after the end of the
year, or

(b) 10if a direction is given to the authority under paragraph 40
(direction to make calculations or supply information) for
the purposes of this paragraph, as soon as is reasonably
practicable after the time specified in the direction,

whichever is the later.

(3) 15The calculation must be made in accordance with regulations
under paragraph 20.

(4) As soon as is reasonably practicable after making a calculation in
relation to a relevant authority, the Secretary of State must notify
that authority of—

(a) 20whether, in accordance with the calculation, it is required
to make a levy payment for the year, and

(b) if so, the amount of that payment in accordance with the
calculation.

Levy payments following calculations

22 (1) 25If a calculation under paragraph 21 shows that a levy payment is
to be made to the Secretary of State by a relevant authority, the
authority must make that payment to the Secretary of State.

(2) The levy payment—

(a) must be made on or before such day and in such manner
30as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court
of competent jurisdiction.

Regulations about calculation of safety net payments

23 (1) The Secretary of State may by regulations make provision for
35calculating—

(a) whether the Secretary of State is required to make a
payment under this Part of this Schedule (a “safety net
payment”) to a relevant authority for a year, and

(b) if so, the amount of the payment.

(2) 40The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) The regulations may, in particular, make provision for
calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference
to the total paid to it in respect of the year under sections
43 and 45, subject to such adjustments as may be specified
in the regulations;

(b) 5if the relevant authority is a major precepting authority, by
reference to the total paid to it for the year under
regulations under paragraph 8 (payments by billing
authorities to major precepting authorities), subject to such
adjustments as may be specified in the regulations;

(c) 10by reference to payments of a kind specified in the
regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
regulations.

(4) The regulations may, in particular, make provision for
15adjustments to an amount calculated under provision made under
sub-paragraph (3) by reference to changes affecting the calculation
of such an amount for an earlier year but not taken into account in
that calculation.

Calculation of safety net payments

24 (1) 20The Secretary of State must calculate in relation to each relevant
authority—

(a) whether the Secretary of State is required to make a safety
net payment to the authority for the year, and

(b) if so, the amount of that payment.

(2) 25The calculation must be made—

(a) as soon as is reasonably practicable after the end of the
year, or

(b) if a direction is given to the authority under paragraph 40
(direction to make calculations or supply information) for
30the purposes of this paragraph, as soon as is reasonably
practicable after the time specified in the direction,

whichever is the later.

(3) The calculation must be made in accordance with regulations
under paragraph 23.

(4) 35As soon as is reasonably practicable after making a calculation
under this paragraph in relation to a relevant authority, the
Secretary of State must notify that authority of—

(a) whether, in accordance with the calculation, the Secretary
of State is required to make a safety net payment to the
40authority for the year, and

(b) if so, the amount of that payment in accordance with the
calculation.

(5) This paragraph is subject to regulations under paragraph 26
(payments on account).

Safety net payments following calculations

25 (1) If a calculation under paragraph 24 shows that a safety net
payment is to be made by the Secretary of State to a relevant
authority, the Secretary of State must make that payment to the
5authority.

(2) The safety net payment must be made in instalments of such
amounts, and at such times, as the Secretary of State determines
with the Treasury’s consent.

(3) This paragraph is subject to regulations under paragraph 26
10(payments on account).

Regulations about payments on account

26 (1) The Secretary of State may by regulations make provision—

(a) for a relevant authority to request the Secretary of State to
make a calculation before the end of a year (an “in-year
15calculation”) of—

(i) whether the Secretary of State is likely to be
required to make a safety net payment under
paragraph 25 to the authority for the year, and

(ii) if so, the amount of the payment;

(b) 20about the time at which and the manner in which a request
must be made, and the information that must be provided
in connection with the request;

(c) about the circumstances in which the Secretary of State
may or must make an in-year calculation in response to a
25request;

(d) about the making of an in-year calculation, including for
the Secretary of State to make the calculation by reference
to estimates of any of the amounts mentioned in paragraph
23(3).

(2) 30The regulations may make provision—

(a) about the timing of an in-year calculation in response to a
request;

(b) about the notification of the results of an in-year
calculation to the relevant authority to whom it relates;

(c) 35for the making, as a result of the calculation, of a payment
(a “payment on account”) to the authority before the end of
the year to which the calculation relates.

(3) The regulations may, in particular—

(a) make provision in relation to an in-year calculation that is
40similar to that made by paragraph 24, or apply that
paragraph with modifications in relation to such a
calculation;

(b) make provision in relation to a payment on account that is
similar to that made by paragraph 25, or apply that
45paragraph with modifications in relation to such a
payment.

(4) The regulations may make provision—

(a) about the calculation under paragraph 24 to be made in
relation to a relevant authority for a year where a payment
on account has been made to the authority for the year;

(b) for the making of a further payment by the Secretary of
5State to the authority, or of a payment by the authority to
the Secretary of State, as a result of that calculation.

Calculation of remaining balance on levy account

27 (1) The Secretary of State must, in each year other than the first year
for which the levy account is kept, calculate whether there is a
10remaining balance on the levy account for the year in accordance
with sub-paragraphs (2) to (4).

(2) The calculation must be made as soon as is reasonably practicable
after—

(a) all of the calculations required by paragraph 21(1)
15(calculations of levy payments) have been made for the
previous year,

(b) all of the calculations required by paragraph 24(1)
(calculations of safety net payments) have been made for
the previous year, and

(c) 20all of the calculations required by regulations under
paragraph 26 (calculations of safety net payments on
account) have been made for the year.

(3) The calculation must be made as follows—

Step 1

25Calculate the aggregate of the amounts of all of the levy payments
calculated for the previous year under paragraph 21(1).

Step 2

Add any amount credited to the levy account for the year in
accordance with paragraph 19(2) (credit from previous year) to the
30amount found under step 1, or subtract any amount debited to
that account in accordance with paragraph 19(3) (debit from
previous year) from the amount found under step 1.

Step 3

Add to the amount found under steps 1 and 2 any amount
35credited to the levy account for the year in accordance with
paragraph 18(2) (credit in accordance with local government
finance report).

Step 4

Subtract from the amount found under steps 1 to 3 the aggregate
40of the amounts of all the safety net payments calculated for the
previous year under paragraph 24(1).

Step 5

Subtract from the amount found under steps 1 to 4 the aggregate
of all the payments to be made by the Secretary of State under
45regulations under paragraph 26(4)(b) (adjustments following
safety net payment on account).

Step 6

Add to the amount found under steps 1 to 5 the aggregate of all the
payments to be made to the Secretary of State under regulations
under paragraph 26(4)(b).

5Step 7

(4) If the amount found under step 7 in sub-paragraph (3) is a positive
amount, that is the remaining balance on the levy account for the
year.

(5) Sub-paragraph (6) applies if, in the first year for which the levy
10account is kept—

(a) an amount is credited to the levy account for the year in
accordance with paragraph 18(2), and

(b) that amount exceeds the aggregate of all the payments on
account to be made in the year under regulations under
15paragraph 26.

(6) The amount of the excess is to be treated as the remaining balance
on the levy account for the year.

Distribution of remaining balance

28 (1) The Secretary of State may determine that an amount equal to the
20whole or part of the remaining balance on a levy account for a year
is to be distributed among one or more relevant authorities (rather
than being treated in accordance with paragraph 19(2)).

(2) The Secretary of State may by regulations make provision about
the basis (“the basis of distribution”) on which an amount referred
25to in sub-paragraph (1) is to be distributed.

(3) If the Secretary of State makes a determination under sub-
paragraph (1), the Secretary of State must calculate what amount
(if any) falls to be paid to each relevant authority as its share of the
amount referred to in that sub-paragraph.

(4) 30The calculations must be made—

(a) as soon as is reasonably practicable after the determination
is made, and

(b) in accordance with the basis of distribution specified in the
regulations.

(5) 35As soon as is reasonably practicable after making the calculations,
the Secretary of State must notify each relevant authority of—

(a) whether a payment is to be made by the Secretary of State
to the authority out of the amount referred to in sub-
paragraph (1), and

(b) 40if such a payment is to be made, the amount of the
payment.

(6) If the calculations show that a payment is to be made by the
Secretary of State to a relevant authority, the Secretary of State
must make that payment to the authority.

(7) A payment from the Secretary of State to a relevant authority
under this paragraph must be made—

(a) at such time, or

(b) in instalments of such amounts and at such times,

5as the Secretary of State determines with the Treasury’s consent;
but any such time must fall within the year to which the remaining
balance relates.

Relationship with other provisions

29 This Part is subject to Parts 9 (pooling of authorities) and 10
10(designation of areas and classes of hereditament).

Part 8 Transitional protection payments

Regulations about deemed and actual rating income

30 (1) The Secretary of State may by regulations make provision for
15calculating in accordance with the regulations—

(a) the total amount which would be payable to a billing
authority in England in respect of a year under sections 43
and 45 if—

(i) regulations under section 57A (transitional relief
20following compilation of local rating list) were not
in force for the year, and

(ii) the authority acted diligently, and

(b) the total amount which would be payable to a billing
authority in England in respect of a year under sections 43
25and 45 if the authority acted diligently.

(2) The regulations may include provision for adjustments to be made
to an amount calculated under provision under sub-paragraph (1).

(3) The regulations may, in particular, make provision for
adjustments to that amount by reference to changes affecting the
30calculation of such an amount for an earlier year but not taken into
account in that calculation.

(4) In this Part of this Schedule—

(a) a billing authority’s “deemed rating income” for a year
means the amount calculated for the authority and the year
35under provision under sub-paragraph (1)(a) and (2), and

(b) a billing authority’s “actual rating income” for a year
means the amount calculated for the authority and the year
under provision under sub-paragraph (1)(b) and (2).

Regulations about transitional protection payments

31 (1) 40The Secretary of State may by regulations make provision for the
making of a payment (a “transitional protection payment”) for a
year—

(a) by the Secretary of State to a billing authority in England,
or

(b) by a billing authority in England to the Secretary of State.

(2) The regulations must provide for the amount (if any) of a
5transitional protection payment in relation to an authority for a
year to be calculated by reference to its deemed and actual rating
income for the year, so that—

(a) if its deemed rating income for a year exceeds its actual
rating income for the year, the Secretary of State is to be
10liable to make a transitional protection payment to the
authority for the year of an amount equal to the excess;

(b) if its actual rating income for a year exceeds its deemed
rating income for the year, the authority is to be liable to
make a transitional protection payment to the Secretary of
15State for the year of an amount equal to the excess;

(c) if its deemed rating income for a year is equal to its actual
rating income for the year, no transitional protection
payment is to be made to or by the authority for the year.

(3) The regulations may, in particular, make provision—

(a) 20about the making of calculations, and the supply of
information to the Secretary of State, by a billing authority
in connection with the determination of the transitional
protection payment (if any) to be made to or by the
authority;

(b) 25about the assumptions and adjustments to be made, and
the information to be taken into account, in making such
calculations;

(c) about the consequences of non-compliance with provision
under paragraph (a) or (b), including (in particular)—

(i) 30for the making by the Secretary of State of
calculations, or of assumptions as to the
information that would otherwise have been
supplied by the authority;

(ii) for the suspension of payments to the authority.

(4) 35The regulations may, in particular, make provision—

(a) for the making by a billing authority or the Secretary of
State of a payment on account of a transitional protection
payment;

(b) for the calculation, where a payment on account has been
40made, of the amount of the final transitional protection
payment (if any) to be made to or by the authority;

(c) for the audit of calculations made, or information supplied
to the Secretary of State, by a billing authority in
connection with the determination of the final transitional
45protection payment (if any) to be made to or by the
authority;

(d) about the consequences where a calculation or information
certified by the audit does not match that made or supplied
by the authority, including (in particular) about the use of
50the certified calculation or information;

(e) about the making of financial adjustments where the final
transitional protection payment to be made to or by the
authority for the year is different from a payment on
account made to or by the authority for the year.

(5) 5The regulations may in particular make provision about the time
and manner in which a payment under the regulations is to be
made (including for payment by instalments), and as to the
consequences of non-payment.

Part 9 10Pooling of authorities

Designation of pool of authorities

32 (1) The Secretary of State may, in accordance with this paragraph,
designate two or more relevant authorities as a pool of authorities
for the purposes of the provisions of this Schedule applying to
15such pools (as to which, see paragraphs 34 and 35).

(2) The Secretary of State may make a designation only if each
authority covered by the designation has agreed to it.

(3) The Secretary of State—

(a) may revoke a designation (in particular if any condition of
20the designation is breached), and

(b) must do so if any authority covered by the designation
asks the Secretary of State to do so.

(4) Subject to sub-paragraph (5), a designation has effect—

(a) for the year beginning after it is made, and

(b) 25for each subsequent year, unless previously revoked.

(5) A designation or revocation has effect for a year only if it is made
before the Secretary of State gives the notification for the year
required by paragraph 10(2) (notification of general basis of
calculation to be specified in local government finance report for
30year), unless sub-paragraph (6) applies.

(6) A revocation made after the Secretary of State has given that
notification has effect for the year for which the notification was
given if—

(a) it is made in response to a request under sub-paragraph
35(3)(b) made within the period of 28 days beginning with
the date on which the notification was given, and

(b) it is made before the local government finance report for
that year is laid before the House of Commons.

(7) Before making a designation, or revoking a designation otherwise
40than in response to a request under sub-paragraph (3)(b), the
Secretary of State must consult such of the persons that the
Secretary of State thinks are likely to be affected by the designation
or revocation as the Secretary of State thinks fit.

(8) After making or revoking a designation, the Secretary of State
45must notify—