Local Government Finance Bill (HL Bill 39)

(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
the certified calculation or information;

(e) 5about 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) The regulations may in particular make provision about the time
10and 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 Pooling of authorities

15Designation 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
such pools (as to which, see paragraphs 34 and 35).

(2) 20The 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
the designation is breached), and

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

(5) 30A 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
year), unless sub-paragraph (6) applies.

(6) 35A 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
(3)(b) made within the period of 28 days beginning with
40the 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
than in response to a request under sub-paragraph (3)(b), the
45Secretary 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
must notify—

(a) 5the authorities covered by the designation, and

(b) the persons (if any) consulted under sub-paragraph (7).

(9) A notification under sub-paragraph (8) must be given before or at
the same time as the Secretary of State gives the notification
required by paragraph 10(2) for the year to which the designation
10or revocation relates, unless sub-paragraph (10) applies.

(10) A notification under sub-paragraph (8) of a revocation made in the
circumstances described in sub-paragraph (6) must be given as
soon as is reasonably practicable after it is made.

Designations subject to conditions

33 (1) 15A designation under paragraph 32 must be made subject to
conditions—

(a) requiring the authorities to which it relates to appoint a
lead authority to exercise the functions specified in the
conditions, and

(b) 20requiring the authorities, if the designation is revoked, to
take the steps specified in the conditions before the
revocation takes effect.

(2) A designation under paragraph 32 may be made subject to such
other conditions as the Secretary of State thinks fit.

(3) 25The Secretary of State may vary a designation by—

(a) adding a condition,

(b) modifying a condition, or

(c) removing a condition (other than one mentioned in sub-
paragraph (1)).

(4) 30Before varying a designation under sub-paragraph (3), the
Secretary of State must consult such persons likely to be affected
by the variation as the Secretary of State thinks fit.

(5) After varying a designation under sub-paragraph (3), the
Secretary of State must notify—

(a) 35the authorities covered by the designation, and

(b) the persons consulted under sub-paragraph (4).

Effect of designation in relation to Part 5

34 (1) Where a designation of a pool of authorities has effect for a year,
Part 5 of this Schedule (principal payments in connection with
40local retention of non-domestic rates) applies in relation to the
pool as if—

(a) the authorities in the pool were not relevant authorities,
but

(b) the pool were itself a relevant authority.

(2) Sub-paragraph (1) does not apply in relation to paragraph 13(5)
(duty to send copy of amending report to each relevant authority).

(3) This paragraph does not prevent—

(a) the local government finance report for the year, or an
5amending report under paragraph 13 in relation to that
report, from also making provision in relation to the
individual authorities in the pool,

(b) the Secretary of State from making calculations based on
the local government finance report, or any such
10amending report, in relation to each of those authorities, or

(c) the Secretary of State from notifying the results of the
calculations to each of those authorities.

(4) But paragraphs 12 and 15 (payments following reports) do not
apply in relation to such calculations.

15Effect of designation in relation to Part 7

35 (1) Regulations under paragraph 20, 23 or 26 (levy payments, safety
net payments and safety net payments on account) may provide
for a pool of authorities to be treated as a relevant authority for the
purposes of the regulations.

(2) 20Such regulations may, in particular, make provision—

(a) that is similar to provision which may be made under the
paragraph in question apart from sub-paragraph (1)
above, or

(b) that applies such provision with modifications.

(3) 25Where regulations under paragraph 20 apply to a pool of
authorities for a year, paragraphs 21 and 22 (calculation and
making of levy payments) apply in relation to the authorities and
the year as if references in them to a relevant authority were to the
pool.

(4) 30Where regulations under paragraph 23 apply to a pool of
authorities for a year, paragraphs 24 and 25 (calculation and
making of safety net payments) apply in relation to the authorities
and the year as if references in them to a relevant authority were
to the pool.

(5) 35Where a designation of a pool of authorities has effect for a year,
paragraph 28 (distribution of remaining balance) applies in
relation to the pool as if—

(a) the authorities in the pool were not relevant authorities,
but

(b) 40the pool were itself a relevant authority.

(6) Regulations under paragraph 28 may provide for a pool of
authorities to be treated as a relevant authority for the purposes of
the regulations.

(7) This paragraph does not prevent—

(a) regulations under paragraph 20, 23, 26 or 28 from also
making provision in relation to the individual authorities
in a pool,

(b) the Secretary of State from making calculations under
5paragraph 21, 24 or 28(3) based on such regulations in
relation to each of those authorities, or

(c) the Secretary of State from notifying the results of the
calculations to each of those authorities.

(8) But paragraphs 22, 25 and 28(6) (payments following calculations)
10do not apply in relation to such calculations.

Further provisions about effect of designation

36 (1) A requirement under Part 5 or 7 of this Schedule in its application
by virtue of paragraph 34 or 35 to notify a pool of authorities of
any matter is a requirement to notify each authority in the pool of
15that matter.

(2) Where by virtue of either of those paragraphs a pool of authorities
is required to make a payment to the Secretary of State, each
authority in the pool is jointly and severally liable to make that
payment.

(3) 20Where by virtue of either of those paragraphs the Secretary of
State is required to make a payment to a pool of authorities, the
payment is to be made to the lead authority appointed in
accordance with conditions under paragraph 33(1).

Part 10 25Designation of areas and classes of hereditament

Designation of areas

37 (1) The Secretary of State may by regulations—

(a) designate one or more areas in England (a “designated
area”);

(b) 30provide for the calculation in accordance with the
regulations, for each year for which the designation has
effect and in relation to each billing authority all or part of
whose area falls within a designated area, of the amount
mentioned in sub-paragraph (2);

(c) 35provide for the calculation of a proportion of that amount
in accordance with the regulations;

(d) provide for that amount or that proportion to be
disregarded for the purposes of calculations under any of
the following provisions in its application to the authority
40for that year—

(i) paragraph 6 (payments in respect of the central
share);

(ii) regulations under paragraph 7 (administrative
arrangements for payments in respect of the central
45share);

(iii) regulations under paragraph 8 (payments by
billing authorities to major precepting authorities);

(iv) regulations under paragraph 9 (administrative
arrangements for payments by billing authorities
5to major precepting authorities);

(v) paragraph 11 (calculations following local
government finance report);

(vi) paragraph 14 (calculations following amending
report);

(vii) 10paragraph 21 (calculations of levy payments);

(viii) paragraph 24 (calculations of safety net payments);

(ix) regulations under paragraph 26 (calculations of
payments on account);

(x) paragraph 28 (calculations relating to distribution
15of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b)
is the total amount which, if the authority acted diligently, would
be payable to it for the year under sections 43 and 45 in respect of
the hereditaments within the designated area.

(3) 20The regulations may provide for that amount, or any proportion
calculated under sub-paragraph (1)(c), to be adjusted in
accordance with the regulations (and references in this paragraph
to that amount or proportion include the amount or proportion as
adjusted in accordance with such provision).

(4) 25The regulations may, in particular, provide for adjustments to that
amount or that proportion by reference to changes affecting a
calculation under regulations under this paragraph for an earlier
year but not taken into account in that calculation.

(5) The regulations must—

(a) 30specify the date on which the designation takes effect,
which must be the first day of a year, or

(b) provide that the designation is to take effect on the first day
of the first year after specified conditions have been met.

(6) Conditions under sub-paragraph (5)(b) may require compliance
35with specifications or requirements contained in a document of a
specified kind.

(7) If the regulations make provision under sub-paragraph (5)(b),
they must provide that they will cease to have effect at the end of
a specified period unless the conditions are met by the end of that
40period.

(8) The regulations may specify the years for which the designation
has effect.

(9) If the regulations contain provision under sub-paragraph (8)—

(a) amendments within sub-paragraph (10) may not be made
45to the regulations unless (in the case of amendments
within paragraph (a), (b) or (c) of that sub-paragraph) the
amendments are expressed to come into force after the end
of that period, and

(b) the regulations may not be revoked unless the revocation
is expressed to come into force after the end of that period.

(10) The amendments mentioned in sub-paragraph (9)(a) are those
which have the effect of—

(a) 5altering the boundaries of a designated area,

(b) where provision made under paragraph (d) of sub-
paragraph (1) has the effect that the amount referred to in
that paragraph is to be disregarded, providing for a
proportion of that amount to be disregarded,

(c) 10where provision made under that paragraph has the effect
that a proportion is to be disregarded, reducing that
proportion, or

(d) reducing the period for which the designation has effect.

(11) Regulations under this paragraph must specify each area
15designated by the regulations by means of a plan or map (whether
or not each area is specified by any other means).

(12) An area may be designated by regulations under this paragraph
by reference to such factors as the Secretary of State thinks fit.

(13) The consent of the Treasury is required to regulations under this
20paragraph.

(14) In this paragraph “specified” means specified in the regulations.

Designation of classes of hereditament

38 (1) The Secretary of State may by regulations—

(a) designate one or more classes of hereditaments in England
25(a “designated class”);

(b) provide for the calculation in accordance with the
regulations, for each year for which the designation has
effect and in relation to each billing authority whose area
includes hereditaments within the designated class, of the
30amount mentioned in sub-paragraph (2);

(c) provide for the calculation of a proportion of that amount
in accordance with the regulations;

(d) provide for that amount or that proportion to be
disregarded for the purposes of calculations under any of
35the following provisions in its application to the authority
for that year—

(i) paragraph 6 (payments in respect of the central
share);

(ii) regulations under paragraph 7 (administrative
40arrangements for payments in respect of the central
share);

(iii) regulations under paragraph 8 (payments by
billing authorities to major precepting authorities);

(iv) regulations under paragraph 9 (administrative
45arrangements for payments by billing authorities
to major precepting authorities);

(v) paragraph 11 (calculations following local
government finance report);

(vi) paragraph 14 (calculations following amending
report);

(vii) paragraph 21 (calculations of levy payments);

(viii) paragraph 24 (calculations of safety net payments);

(ix) 5regulations under paragraph 26 (calculations of
payments on account);

(x) paragraph 28 (calculations relating to distribution
of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b)
10is the total amount which, if the authority acted diligently, would
be payable to it for the year under sections 43 and 45 in respect of
the hereditaments within the designated class.

(3) The regulations may provide for that amount, or any proportion
calculated under sub-paragraph (1)(c), to be adjusted in
15accordance with the regulations (and references in this paragraph
to that amount or proportion include the amount or proportion as
adjusted in accordance with such provision).

(4) The regulations may, in particular, provide for adjustments to that
amount or that proportion by reference to changes affecting a
20calculation under regulations under this paragraph for an earlier
year but not taken into account in that calculation.

(5) The regulations may include provision imposing duties or
conferring powers on valuation officers (whether as regards
determinations, certificates or otherwise) for the purpose of the
25calculation referred to in sub-paragraph (1)(c).

(6) The regulations—

(a) must specify the date on which the designation takes effect
(which must be at the beginning of a year), and

(b) may specify the years for which the designation has effect.

(7) 30A class may be designated by regulations under this paragraph by
reference to such factors as the Secretary of State thinks fit.

(8) Before making regulations under this paragraph the Secretary of
State must consult such persons as the Secretary of State thinks fit.

(9) The fact that this paragraph was not in force when consultation in
35relation to proposed regulations under it took place is to be
disregarded in determining whether there has been compliance
with sub-paragraph (8).

(10) The consent of the Treasury is required to regulations under this
paragraph.

40Payments to relevant authorities

39 (1) Regulations under paragraph 37 or 38 may make provision for a
billing authority to make a payment for a year to a relevant
authority of an amount equal to the whole or part of the amount
or proportion that, in relation to the billing authority and the year,
45is to be disregarded for the purposes of the calculations mentioned
in paragraph 37(1)(d) or 38(1)(d) (as the case may be).

(2) Sub-paragraph (3) applies where the regulations include
provision for payments to be made in accordance with sub-
paragraph (1) to two or more relevant authorities.

(3) The regulations may include provision for imposing duties or
5conferring powers on valuation officers (whether as regards
determinations, certificates or otherwise) for the purpose of
arriving at the amounts of those payments.

(4) The regulations may make provision about the administration of
payments to relevant authorities under the regulations.

(5) 10The regulations may, in particular, make provision in relation to
payments to relevant authorities of the same kind as the provision
that may be made under sub-paragraph (2) of paragraph 9 in
relation to payments to major precepting authorities to which that
sub-paragraph applies.

15Part 11 Supplementary

Calculations and supply of information by relevant authorities

40 (1) The Secretary of State may, for the purposes of any provision of or
made under this Schedule, direct a relevant authority to make
20calculations, or to supply information to the Secretary of State, in
accordance with the direction.

(2) The direction may require the calculations to be made, or the
information to be supplied, before such time as is specified in the
direction.

(3) 25The direction may require the calculations or information to be
audited in accordance with the direction.

(4) If a relevant authority does not comply with a direction under this
paragraph, the Secretary of State may make the calculations that
the Secretary of State thinks would have been made, or make
30assumptions as to the information that would have been supplied,
by the authority if it had complied with the direction.

(5) If the Secretary of State proceeds under sub-paragraph (4), the
Secretary of State must notify the authority—

(a) of that fact, and

(b) 35of the calculations or assumptions that the Secretary of
State has made.

(6) If any calculation or information certified by an audit in
accordance with a direction under this paragraph does not match
that made or supplied by the authority in question, the Secretary
40of State may use the certified calculation or information.

(7) If the Secretary of State proceeds under sub-paragraph (6), the
Secretary of State must notify the authority of that fact.

(8) For the purposes of any provision made by or under Part 5 or 7 of
this Schedule that applies to pools of authorities, this paragraph

has effect as if references to a relevant authority included a
reference to such a pool.

(9) Where sub-paragraph (5) or (7) applies to a pool of authorities by
virtue of sub-paragraph (8), the Secretary of State must notify each
5relevant authority in the pool of the matters in question.

Interpretation of Schedule

41 In this Schedule—

• “actual rating income”, in relation to a billing authority, has
  the meaning given by paragraph 30(4)(b);

• 10“basis of calculation” has the meaning given by paragraph
  10(1);

• “the central share” has the meaning given by paragraph 4;

• “deemed rating income”, in relation to a billing authority, has
  the meaning given by paragraph 30(4)(a);

• 15“local government finance report” has the meaning given by
  paragraph 5(1);

• “the local share” has the meaning given by paragraph 4;

• “levy account” has the meaning given by paragraph 17(1);

• “levy payment” has the meaning given by paragraph 20(1);

• 20“main non-domestic rating account” has the meaning given
  by paragraph 1(1);

• a “pool of authorities” means two or more relevant
  authorities designated as a pool of authorities under
  paragraph 32;

• 25“relevant authority” means—

  (a)

  a billing authority in England, or

  (b)

  a major precepting authority in England;

• “safety net payment” has the meaning given by paragraph
  23(1);

• 30“year” means a chargeable financial year.”

Section 2

SCHEDULE 2 Amendment of provisions about revenue support grant

1 Chapter 2 of Part 5 of the LGFA 1988 (revenue support grant: England) is
amended as follows.

2 (1) 35Section 78 (revenue support grant) is amended as follows.

(2) For subsection (1) (duty to pay grant) substitute—

“(1) The Secretary of State may pay a grant (to be called revenue support
grant) in accordance with this Chapter for a chargeable financial
year—

(a) 40to receiving authorities,

(b) to specified bodies, or

(c) to both.”

(3) In subsection (2) (duty to make determination about revenue support grant
for each chargeable financial year), after “year” insert “for which revenue
support grant is to be paid”.

(4) In subsection (3) (content of determination)—

(a) 5after paragraph (a) insert—

“(aa) whether the Secretary of State proposes to pay grant
to receiving authorities,”,

(b) at the beginning of paragraph (b) insert “if so,”,

(c) after paragraph (b) (and before the “and” at the end of that
10paragraph) insert—

“(ba) whether the Secretary of State proposes to pay grant
to specified bodies,”, and

(d) at the beginning of paragraph (c) insert “if so,”.

3 (1) Section 78A (local government finance reports) is amended as follows.

(2) 15For the heading substitute “Requirement to specify determination in local
government finance report”.

(3) In subsection (1) (duty to specify determination under section 78 in local
government finance report), for the words from “a report” to “report)”
substitute “the local government finance report for the year (as to which, see
20paragraph 5 of Schedule 7B)”.

(4) In subsection (2) (requirement for report to specify basis of distribution of
grant to receiving authorities), for “A local government finance report”
substitute “If the determination provides for grant to be paid to receiving
authorities, the report”.

(5) 25In subsection (3), for “the report” substitute “a report to which subsection (2)
applies”.

(6) Omit subsections (4) and (5) (duty to lay report before House of Commons
and to send copies to receiving authorities).

4 (1) Section 79 (effect of report’s approval) is amended as follows.

(2) 30In subsection (3) (duty to pay amounts specified in determination to
receiving authorities and specified bodies)—

(a) for “The Secretary of State” substitute “If the determination provides
for grant to be paid to receiving authorities, the Secretary of State”,
and

(b) 35after “section 78(3)(b) above, and” insert “, if the determination
provides for grant to be paid to specified bodies, the Secretary of
State”.

(3) In subsection (4) (amount to be paid to receiving authorities), for “The
amount” substitute “Any amount”.

(4) 40In subsection (5) (amount to be paid to particular specified body), for “The
amount” substitute “Any amount”.

5 (1) Section 82 (calculation of sums payable to receiving authorities by way of
revenue support grant) is amended as follows.