Local Government Finance Bill (HL Bill 44)

Non-domestic rating

1 Local retention of non-domestic rates

(1) The LGFA 1988 is amended in accordance with subsections (2) to (4).

(2) After section 59 insert—

“59A 5Local retention of non-domestic rates

Schedule 7B (local retention of non-domestic rates) has effect.”

(3) In section 143 (orders and regulations)—

(a) in subsection (3) (application of negative Parliamentary procedure to
orders and regulations under the Act), for “(9AA)” substitute “(9E)”,
10and

(b) before subsection (10) insert—

“(9C) Any power to make regulations conferred by Schedule 7B (local
retention of non-domestic rates) is exercisable by statutory
instrument.

(9D) 15A statutory instrument containing regulations under any of the
following provisions of that Schedule (whether alone or with
other provision) may not be made unless a draft of the

instrument has been laid before and approved by resolution of
each House of Parliament—

(a) paragraph 9 (regulations about payments by billing
authorities to major precepting authorities);

(b) 5paragraph 11 (regulations about payments by billing
authorities to major precepting authorities out of
deductions from central share payments);

(c) paragraph 22 (regulations about calculation of levy
payments);

(d) 10paragraph 25 (regulations about calculation of safety net
payments);

(e) paragraph 30 (regulations about distribution of
remaining balance);

(f) paragraph 39 or 40 (regulations about designated areas
15or classes of hereditament), if the regulations contain
provision within paragraph 41 (payments to relevant
authorities).

(9E) Any other statutory instrument containing regulations under
that Schedule is subject to annulment in pursuance of a
20resolution of either House of Parliament.”

(4) Schedule 1 (which sets out the Schedule to be inserted as Schedule 7B to the
LGFA 1988) has effect.

(5) In consequence of the amendment made by subsection (3)(a), in Schedule 7 to
the Local Government Act 2003 omit paragraph 24(2).

(6) 25The amendments made by this section and Schedule 1 have effect in relation to
the financial year beginning with 1 April 2013 and subsequent financial years.

(7) But the Secretary of State may by order made by statutory instrument amend
subsection (6) by substituting a later financial year.

2 Revenue support grant

(1) 30Schedule 2 (amendment of provisions about revenue support grant) has effect.

(2) The amendments made by Schedule 2 have effect in relation to the financial
year beginning with 1 April 2013 and subsequent financial years.

(3) But the Secretary of State may by order made by statutory instrument amend
subsection (2) by substituting a later financial year.

3 35Additional grant

(1) The LGFA 1988 is amended in accordance with subsections (2) to (4).

(2) In section 84Q(1) (application of Chapter dealing with grants other than
revenue support grant) omit paragraph (a) (which refers to sections 85 and 86).

(3) Omit sections 85 and 86 (additional grant: England) and the italic heading
40preceding section 85.

(4) In section 141 (payments to and from authorities)—

(a) in subsection (5)(b) omit “and 86(2)”, and

(b) in subsection (7) omit “and 86”.

(5) The LGFA 1992 is amended in accordance with subsections (6) to (8).

(6) In section 52ZF (council tax referendums: billing authority’s duty to make
substitute calculations)—

(a) in subsection (3)(a) omit “additional grant,”, and

(b) 5omit subsection (4).

(7) In section 52ZJ (council tax referendums: major precepting authority’s duty to
make substitute calculations)—

(a) in subsection (4)(a) omit “additional grant,”, and

(b) omit subsection (5).

(8) 10In section 69(1) (interpretation of Part 1), in the definition of “additional grant”,
for “85(2)” substitute “86A(2)”.

(9) The Greater London Authority Act 1999 is amended in accordance with
subsections (10) and (11).

(10) In section 86 (calculation of component council tax requirement in relation to
15Mayor’s Office for Policing and Crime)—

(a) in subsection (4D)—

(i) at the end of paragraph (b) insert “and”, and

(ii) omit paragraph (d) (additional grant) and the “and” preceding
that paragraph, and

(b) 20in subsection (4F)—

(i) at the end of paragraph (a) insert “and”, and

(ii) omit paragraph (c) (report relating to additional grant) and the
“and” preceding that paragraph.

(11) In section 102(2) (aggregate out of which payments to functional bodies are to
25be made) omit paragraph (b) (additional grant).

(12) In consequence of the amendments made by subsection (3)—

(a) in Schedule 10 to the LGFA 1992 omit paragraph 16, and

(b) in Schedule 7 to the Local Government Act 2003 omit paragraph 17.

(13) The amendments made by this section have effect in relation to the financial
30year beginning with 1 April 2013 and subsequent financial years.

(14) But the Secretary of State may by order made by statutory instrument amend
subsection (13) by substituting a later financial year.

4 General GLA grant

(1) Section 100 of the Greater London Authority Act 1999 (general GLA grant) is
35amended as follows.

(2) For subsection (1) (duty to pay general GLA grant to Greater London
Authority for each financial year) substitute—

“(1) The Secretary of State may pay a grant (to be called “general GLA
grant”) to the Authority for a financial year.”

(3) 40In subsection (3) (duty to make determination about general GLA grant for
each financial year), after “year” insert “for which general GLA grant is to be
paid”.

(4) The amendments made by this section have effect in relation to the financial
year beginning with 1 April 2013 and subsequent financial years.

(5) But the Secretary of State may by order made by statutory instrument amend
subsection (4) by substituting a later financial year.

5 5Local retention of non-domestic rates: further amendments

(1) Schedule 3 (local retention of non-domestic rates: further amendments) has
effect.

(2) In that Schedule—

(a) Part 1 amends Schedule 8 to the LGFA 1988 so that it applies in relation
10to Wales only (and makes some related amendments), and

(b) Part 2 contains other amendments.

(3) The amendments made by that Schedule have effect for the financial year
beginning with 1 April 2013 and subsequent financial years.

(4) But the Secretary of State may by order made by statutory instrument amend
15subsection (3) by substituting a later financial year.

6 Definition of domestic property

(1) Section 66 of the LGFA 1988 (domestic property) is amended as follows.

(2) After subsection (2BB) insert—

“(2BC) For the purposes of subsection (2B) the relevant person is—

(a) 20where the building or self-contained part is not subject as a
whole to a relevant leasehold interest, the person having the
freehold interest in the whole of the building or self-contained
part; and

(b) in any other case, any person having a relevant leasehold
25interest in the building or self-contained part which is not
subject (as a whole) to a single relevant leasehold interest
inferior to that interest.”

(3) In subsection (2C) omit “subsection (2B) and”.

(4) This section has effect in relation to liability to a non-domestic rate for the
30financial year beginning with 1 April 2013 and subsequent financial years.

7 Payments to and from authorities

(1) Section 141 of the LGFA 1988 (power to make regulations about set off of
payments to and from receiving authorities) is amended as follows.

(2) In subsection (5)(b) (power to require provisions of the Act to be read subject
35to regulations), after “79(2)” insert “, 84H(2) and 86B(2)”.

(3) In subsection (7) (payments to receiving authorities to which regulations may
apply)—

(a) after “84C” insert “, 84K, 84N and 86B”, and

(b) for the words from “, paragraphs 12 and 15 of that Schedule” to the end
40substitute “and paragraphs 12 and 15 of that Schedule.”

(4) In subsection (8) (payments from receiving authorities to which regulations
may apply), for “and 84C” substitute “, 84C, 84K and 84N”.

(5) The amendments made by this section have effect in relation to the financial
year beginning with 1 April 2013 and subsequent financial years.

8 5Provision of information about non-domestic rates

(1) In Schedule 9 to the LGFA 1988, paragraph 2 (collection and recovery) is
amended as follows.

(2) After sub-paragraph (2)(ge) insert—

“(gf) that the payee must publish prescribed information in the
10prescribed manner,”.

(3) In sub-paragraph (2)(h), after “when the payee serves a notice” insert “or on the
request of the ratepayer”.

Council tax

9 Council tax reduction schemes

(1) 15For section 13A of the LGFA 1992 (billing authority’s power to reduce amount
of tax payable) substitute—

“13A Reductions by billing authority

(1) The amount of council tax which a person is liable to pay in respect of
any chargeable dwelling and any day (as determined in accordance
20with sections 10 to 13)—

(a) in the case of a dwelling situated in the area of a billing
authority in England, is to be reduced to the extent, if any,
required by the authority’s council tax reduction scheme (see
subsection (2));

(b) 25in the case of a dwelling situated in the area of a billing
authority in Wales, is to be reduced to the extent, if any,
required by any council tax reduction scheme made under
regulations under subsection (4) which applies to that dwelling;

(c) in any case, may be reduced to such extent (or, if the amount has
30been reduced under paragraph (a) or (b), such further extent) as
the billing authority for the area in which the dwelling is
situated thinks fit.

(2) Each billing authority in England must make a scheme specifying the
reductions which are to apply to amounts of council tax payable, in
35respect of dwellings situated in its area, by—

(a) persons whom the authority considers to be in financial need, or

(b) persons in classes consisting of persons whom the authority
considers to be, in general, in financial need.

(3) Schedule 1A (which contains provisions about schemes under
40subsection (2)) has effect.

(4) The Welsh Ministers may by regulations—

(a) require a person or body specified in the regulations to make a
scheme specifying the reductions which are to apply to

amounts of council tax payable, in respect of dwellings to which
the scheme applies, by persons to whom the scheme applies,

(b) impose requirements on that person or body regarding the
matters which must be included in that scheme, and

(c) 5make other provision for and in connection with such schemes.

(5) Schedule 1B (which contains further provisions about regulations
under subsection (4) and about schemes under those regulations) has
effect.

(6) The power under subsection (1)(c) includes power to reduce an amount
10to nil.

(7) The power under subsection (1)(c) may be exercised in relation to
particular cases or by determining a class of case in which liability is to
be reduced to an extent provided by the determination.

(8) No regulations under subsection (4) are to be made unless a draft of the
15statutory instrument containing them has been laid before, and
approved by a resolution of, the National Assembly for Wales.

(9) In this Part “council tax reduction scheme” means a scheme under
subsection (2) or regulations under subsection (4).”

(2) Schedule 4 (amendments relating to council tax reduction schemes) has effect.

(3) 20In that Schedule—

(a) Part 1 sets out the Schedules to be inserted as Schedules 1A and 1B to
the LGFA 1992, and

(b) Part 2 contains other amendments.

(4) Each billing authority in England must make a council tax reduction scheme
25under section 13A(2) of the LGFA 1992 no later than 31 January 2013; and the
first financial year to which that scheme relates must be the year beginning
with 1 April 2013.

(5) But the Secretary of State may by order made by statutory instrument amend
subsection (4) by substituting a different date or a later financial year (or both).

10 30Power to determine further discounts for certain dwellings

(1) In section 11A of the LGFA 1992 (discounts: special provision for England),
after subsection (4) insert—

“(4A) For any financial year for which a class of dwellings is prescribed for
the purposes of this subsection, a billing authority in England may by
35determination provide—

(a) in relation to all dwellings of that class in its area, or

(b) in relation to such description of dwellings of that class as it
may specify in the determination,

that the discount under section 11(2)(a) shall not apply or shall be such
40percentage (which may be 100) as it may so specify.

(4B) Where a class of dwellings is prescribed for the purposes of subsection
(4A) by reference to the period of time for which a condition is met, a
billing authority may not, under paragraph (b) of that subsection,

specify a description of dwellings of that class by reference (wholly or
partly) to a shorter such period.”

(2) In subsections (1) and (5) of that section, for “or (4)” substitute “, (4) or (4A)”.

(3) Regulations may be made for the purposes of the subsection inserted by
5subsection (1) for a financial year beginning with or after 1 April 2013 (and, if
a class of dwelling is prescribed by reference to a period of time for which a
condition is met, it does not matter whether the period begins before this
section comes into force).

11 Power to set higher amount for long-term empty dwellings

(1) 10The LGFA 1992 is amended as follows.

(2) After section 11A insert—

“11B Higher amount for long-term empty dwellings: England

(1) For any financial year, a billing authority in England may by
determination provide in relation to its area, or such part of its area as
15it may specify in the determination, that if on any day a dwelling is a
long-term empty dwelling—

(a) the discount under section 11(2)(a) shall not apply, and

(b) the amount of council tax payable in respect of that dwelling
and that day shall be increased by such percentage of not more
20than 50 as it may so specify.

(2) The Secretary of State may by regulations prescribe one or more classes
of dwelling in relation to which a billing authority may not make a
determination under this section.

(3) A class of dwellings may be prescribed under subsection (2) by
25reference to such factors as the Secretary of State thinks fit and may, in
particular, be prescribed by reference to—

(a) the physical characteristics of, or other matters relating to,
dwellings;

(b) the circumstances of, or other matters relating to, any person
30who is liable to the amount of council tax concerned.

(4) Where a determination under this section has effect in relation to a class
of dwellings—

(a) the billing authority may not make a determination under
section 11A(3), (4) or (4A) in relation to that class, and

(b) 35any determination that has been made under section 11A(3), (4)
or (4A) ceases to have effect in relation to that class.

(5) A billing authority may make a determination varying or revoking a
determination under this section for a financial year, but only before
the beginning of the year.

(6) 40A billing authority which makes a determination under this section
must publish a notice of it in at least one newspaper circulating in its
area and do so before the end of the period of 21 days beginning with
the date of the determination.

(7) Failure to comply with subsection (6) does not affect the validity of a
45determination.

(8) For the purposes of this section, a dwelling is a “long-term empty
dwelling” on any day if for a continuous period of at least 2 years
ending with that day—

(a) it has been unoccupied, and

(b) 5it has been substantially unfurnished.

(9) In determining whether a dwelling is a long-term empty dwelling, no
account is to be taken of any one or more periods of not more than 6
weeks during which either of the conditions in subsection (8)(a) and (b)
is not met (or neither of them is met).

(10) 10The Secretary of State may by regulations substitute a different period
(of not less than 6 weeks) for the period which is for the time being
specified in subsection (9).”

(3) In section 11(2) (discounts: no chargeable residents), after “sections 11A” insert
“, 11B”.

(4) 15In section 11A (discounts: special provision for England), after subsection (4B)
(inserted by section 10) insert—

“(4C) Subsections (3), (4) and (4A) are subject to section 11B(4).”

(5) In section 13(3) (amounts which may be reduced by regulations) after “section
11, 11A” insert “, 11B”.

(6) 20In section 66(2)(b) (matters to be questioned only by judicial review), after
“section 8(2), 11A” insert “, 11B”.

(7) In section 67(2)(a) (functions to be discharged only by authority), after “section
8(2), 11A” insert “, 11B”.

(8) In Schedule 2 (administration), paragraph 4 (discounts) is amended as follows.

(9) 25In sub-paragraph (2), after “discount” (in both places) insert “or increase”.

(10) In sub-paragraph (3)—

(a) after “discount” in the first and third places insert “or to an increase”;

(b) after “discount” in the second and fourth places insert “or increase”.

(11) In sub-paragraph (5)(a), for “is subject to a discount of a particular amount;
30and” substitute “—

(i) is subject to a discount of a particular amount, or

(ii) is not subject to any increase; and”.

(12) In sub-paragraph (5)(b), for the words from “is not in fact” to “smaller
amount,” substitute “—

(i) 35is not in fact subject to any discount, or is subject to a
discount of a smaller amount, or

(ii) is in fact subject to an increase (whether or not the
person is aware of the amount of the increase),”.

(13) After sub-paragraph (6) insert—

“(7) 40In this paragraph, “increase” means an increase under section
11B(1)(b) (higher amount of tax for empty dwellings).”

(14) In the heading preceding that paragraph, after “Discounts” insert “and
increases”.

(15) A determination may be made for the purposes of the section inserted by
subsection (2) for a financial year beginning with or after 1 April 2013 (and it
does not matter whether the period mentioned in subsection (8) of that section
begins before this section comes into force).

12 5Mortgagee in possession to be liable for council tax

(1) In section 6(2) of the LGFA 1992 (persons liable to pay council tax) omit the “or”
at the end of paragraph (e) and after that paragraph insert—

“(ea) in the case of a dwelling situated in the area of a billing
authority in England, the person is a mortgagee in possession of
10the owner’s interest in the dwelling; or”.

(2) This section comes into force on such day as the Secretary of State may by order
made by statutory instrument appoint.

13 Regulations about powers to require information, offences and penalties

(1) The LGFA 1992 is amended as follows.

(2) 15After section 14 insert—

“14A Regulations about powers to require information

(1) The appropriate authority may by regulations provide for the exercise,
for prescribed council tax purposes, of—

(a) powers to require the provision of information;

(b) 20powers to require a person to enter into arrangements under
which access is permitted to the person’s electronic records.

(2) The appropriate authority may by regulations make provision about
arrangements for access to electronic records for prescribed council tax
purposes where the arrangements are entered into otherwise than
25under a requirement of the kind mentioned in subsection (1)(b).

(3) The appropriate authority may by regulations—

(a) make provision about the persons by whom powers conferred
by regulations under this section may be exercised;

(b) make provision about the persons by whom arrangements
30under regulations under this section may be made;

(c) in particular, make provision for the authorisation by billing
authorities of persons to exercise those powers or make those
arrangements.

(4) The provision that may be made by regulations under this section
35includes, in particular, provision equivalent to—

(a) provision made by a relevant enactment, or

(b) provision that is capable of being made under a relevant
enactment,

with such modifications as the appropriate authority thinks fit.

(5) 40For the purposes of subsection (4), each of the following enactments as
it had effect on the day on which the Local Government Finance Act
2012 was passed is a “relevant enactment”—

(a) section 109A(8) of the Social Security Administration Act 1992
(application of section 109B of that Act to the Crown);