Local Government Finance Bill

AMENDMENTS
TO BE MOVED
ON REPORT

Schedule 1

LORD JENKIN OF RODING

 

Page 23, line 35, at end insert—

“(3) The regulations must make provision to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9, and

(b) the requirement is the result of a relevant alteration of the authority’s local non-domestic rating list,

the amount of the repayment or credit is credited against subsequent payments by the authority under this paragraph.

(4) A relevant alteration for the purposes of sub-paragraph (3) is an alteration made under section 55, which was—

(a) an alteration of the rateable value of a hereditament shown in the list,

(b) made on the grounds of an inaccuracy in the list arising from a change in the matter mentioned in paragraph 2(7)(e) of Schedule 6, and

(c) attributable to a general change in the level of demand for, or supply of premises of a given use or occupation within the locality of the hereditament.

(5) The regulations must make provision to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9,

(b) the requirement is the result of a relevant alteration of the authority’s local non-domestic rating list, and

(c) the authority has made a payment under paragraph 6(2) or 8(1) as a result of the relevant sum having been treated as forming part of the authority’s non-domestic rating income for the year,

the amount of the payment by the authority referred to in paragraph (c) is repaid to the authority or credited against subsequent payments by the authority under the same paragraph.

(6) A relevant alteration for the purposes of sub-paragraph (5) is an alteration made under section 55, which was—

(a) an alteration of the rateable value of a hereditament shown in the list, and

(b) not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled,

and the relevant sum for the purposes of sub-paragraph (5)(c) is the sum in relation to which the repayment or credit referred to in sub-paragraph (5)(a) is required to be made.”

 

Page 25, line 33, at end insert—

“10A (1) This paragraph applies where the basis for calculation includes an amount calculated by reference to a billing authority’s non-domestic rating income for a given year or years which precede the year for which the local government finance report is made.

(2) The basis for calculation must, so far as reasonably practicable, provide for the calculation of the amount referred to in sub-paragraph (1) on the assumed basis.

(3) The assumed basis is that any relevant alteration of the authority’s local non-domestic rating list for the given year or years (or, where more than one list was in force in the given years, of any of those lists) had been made on and had effect from the day on which that list came into force.

(4) A relevant alteration for the purposes of this paragraph is an alteration made under section 55, which was—

(a) made after the first day of the given year or years, or after the first day on which the list was in force, whichever day is the later,

(b) made before the day on which the local government finance report is approved under paragraph 11(1),

(c) an alteration of the rateable value of a hereditament shown in the list, and

(d) an alteration to which sub-paragraph (5) or (6) applies.

(5) This sub-paragraph applies to an alteration made under section 55 which was not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled.

(6) This sub-paragraph applies to an alteration which was—

(a) made on the grounds of an inaccuracy in the list arising from a change in the matter mentioned in paragraph 2(7)(e) of Schedule 6, and

(b) attributable to a general change in the level of demand for, or supply of premises of a given use or occupation within the locality of the hereditament.

(7) For the purposes of this paragraph, reference to a billing authority’s non-domestic rating income for a given year is reference, whether direct or indirect, to the amount which was or will be payable to the authority in respect of the year under section 43 or 45, or which would have been or would be so payable in certain circumstances.”

 

Page 26, line 20, at end insert—

“11A (1) Calculations under paragraph 11(2) must include appropriate adjustments where it appears to the Secretary of State that an over-payment or under-payment has been made.

(2) An over-payment has been made for the purposes of this paragraph where the condition in sub-paragraph (4) and either of the conditions in sub-paragraph (5) or (6) are met.

(3) An under-payment has been made within the meaning of this sub-paragraph where the conditions in sub-paragraphs (4) and (7) are met.

(4) The condition in this sub-paragraph is that the local government finance report for a year previous to the year in respect of which the calculations are made included an amount calculated by reference to a billing authority’s non-domestic rating income for a given year or years which preceded the year for which the local government finance report was made.

(5) The condition in this sub-paragraph is that—

(a) a relevant authority has made a net payment to the Secretary of State under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, the amount of the net payment falling to be made by the authority would have been less than the amount of the payment referred to in sub-paragraph (5)(a).

(6) The condition in this sub-paragraph is that—

(a) a relevant authority has made a net payment to the Secretary of State under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, no net payment would have fallen to be made by the authority, but a net payment would have fallen to be made by the Secretary of State to the authority.

(7) The condition in this sub-paragraph is that—

(a) the Secretary of State has made a net payment to a relevant authority under paragraph 12 and, as may be the case, paragraph 15 in respect of the year for which the local government finance report was made, and

(b) had the amount referred to in sub-paragraph (4) been calculated on the assumed basis, but the basis of calculation had in all other respects been the same, the amount of the net payment falling to be made by the Secretary of State would have been more than the amount of the payment referred to in sub-paragraph (7)(a).

(8) The assumed basis is that any relevant alteration of the authority’s local non-domestic rating list for the year for which the local government finance report was made had been made on and had effect from the day on which that list came into force.

(9) A relevant alteration for the purposes of this paragraph is an alteration made under section 55, which was—

(a) made after the first day of the given year or years, or after the first day on which the list was in force, whichever day is the later,

(b) made before the day on which the local government finance report was approved under paragraph 11(1),

(c) an alteration of the rateable value of a hereditament shown in the list, and

(d) not made by reason of a material change of circumstances which occurred on or after the day on which the list was compiled.

(10) Where an over-payment has been made and the condition in sub-paragraph (5) is met, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the difference identified in sub-paragraph (5)(b), the amount payable by the authority shall be reduced by the amount of the difference;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the difference identified in sub-paragraph (5)(b), the Secretary of State shall pay to the authority the amount of the difference less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the amount of the difference identified in sub-paragraph (5)(b).

(11) Where an over-payment has been made and the condition in sub-paragraph (6) is met, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively, the amount payable by the authority shall be reduced by the amount of the sum of those payments;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively, the Secretary of State shall pay to the authority the amount of the sum of those payments less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the sum of the net payments described in sub-paragraph (6)(a) and (6)(b) respectively.

(12) Where an under-payment has been made, appropriate adjustments for the purposes of this paragraph shall be as follows—

(a) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which exceeds or equals the difference identified in sub-paragraph (7)(b), the amount payable by the authority shall be reduced by the amount of the difference;

(b) where, save for the adjustments, a payment would fall to be made by the relevant authority to the Secretary of State which is less than the difference identified in sub-paragraph (7)(b), the Secretary of State shall pay to the authority the amount of the difference less the amount of the payment which would have fallen to be made by the authority;

(c) where, save for the adjustments, a payment would fall to be made by the Secretary of State to the relevant authority, the amount payable by the Secretary of State shall be increased by the amount of the difference identified in sub-paragraph (7)(b).

(13) For the purposes of this paragraph, reference to a billing authority’s non-domestic rating income for a given year is reference, whether direct or indirect, to the amount which was or will be payable to the authority in respect of the year under section 43 or 45, or which would have been or would be so payable in certain circumstances.

(14) No adjustment is to be made under this paragraph in respect of any over-payment or under-payment to which appropriate adjustments under this paragraph have applied under calculations for a previous year.”

 

Page 28, line 15, at end insert “, but the basis of calculation as amended remains subject to paragraph 10A”

Clause 9

BARONESS HOLLIS OF HEIGHAM

 

Page 5, line 28, at end insert—

“( ) The Secretary of State shall issue guidance to local authorities as to what persons or category of persons shall be deemed to be vulnerable.”

 

Page 5, line 28, at end insert—

“( ) Any dwelling which receives a band reduction in its council tax by reason of disability adaptations (or in the case of Band A properties, the relevant discount), shall not be deemed to be under-occupied for the purposes of housing benefit.”

 

Page 5, line 28, at end insert—

“( ) No council tax reduction scheme shall have a taper which, when combined with the taper of universal credit, produces a withdrawal rate for the claimant of 95% or more.”

After Clause 14

BARONESS HOLLIS OF HEIGHAM

 

Insert the following new Clause—

“Consultation on new bands of council tax

The Secretary of State shall consult with local government on the introduction of a new higher (I) band, or bands, of council tax.”

Clause 18

LORD JENKIN OF RODING

 

Page 19, line 5, at end insert—

“(1A) Transitional provision as described in subsection (1) must be made to ensure that, where—

(a) a billing authority is required to make a repayment or credit by regulations made under paragraph 2(2)(j) of Schedule 9 to the LGFA 1988, and

(b) the repayment or credit is made in respect of a financial year for which the provisions of Schedule 8 to the LGFA 1988 applied in the form in which they applied before the passing of this Act,

the amount of the repayment or credit is credited to payments by the authority under Schedule 7B to the LGFA 1988 as inserted by this Act, insofar as that amount has not under any other provision been or would not be paid to or otherwise credited to the benefit of the authority by the Secretary of State made by or under the LGFA 1988.”

After Clause 18

BARONESS HOLLIS OF HEIGHAM

 

Insert the following new Clause—

“Review of council tax reduction schemes

(1) The Secretary of State shall make provision for an independent review of council tax reduction schemes, to consider their effectiveness, efficiency, fairness and transparency and their impact on the localism agenda and to make recommendations as to whether such schemes should be brought into universal credit.

(2) A review under subsection (1) shall take place three years after this Act comes into effect.”

Prepared 2nd October 2012