Greater London Authority Bill

Greater London Authority Bill - continued	House of Commons
PART III, FINANCIAL PROVISIONS - continued
Credit approvals - continued

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Part IV of 1989 Act and credit approvals under this Chapter.	102. - (1) Where a category A or B amount is specified for an authority in an aggregate credit approval or an additional credit approval, so much of the approval as relates to that amount shall be treated for the purposes of Part IV of the Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued to that authority under that Part.
	(2) Where an allocation from a category C or D amount specified in an aggregate credit approval or an additional credit approval is made by the Mayor-
	(a) to the Authority, or
	(b) to a functional body,
	the notice of the allocation (read with so much of the credit approval as relates to the allocation) shall be treated for the purposes of Part IV of the Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued under that Part to the Authority or, as the case may be, to the functional body.
	(3) Section 56 of the Local Government and Housing Act 1989 (use of basic credit approvals and supplementary credit approvals) shall apply in relation to a credit approval treated by virtue of subsection (1) or (2) above as issued under Part IV of that Act as it applies in relation to a basic credit approval or a supplementary credit approval.
	(4) Any reference in this Chapter to the use of an aggregate credit approval or an additional credit approval is a reference to the use, under Part IV of the Local Government and Housing Act 1989 or any other enactment, of any credit approvals treated as issued under that Part by virtue of the application of subsection (1) or (2) above in relation to the aggregate credit approval or, as the case may be, the additional credit approval (and related expressions shall be construed accordingly).
	Capital receipts and mutual grants
Power to redistribute capital receipts of functional bodies.	103. - (1) The Secretary of State may make regulations for and in connection with conferring on the Mayor power to direct any functional body to pay to the Authority such percentage as may be specified in the direction of so much of the usable part of the body's capital receipts as may be so specified.
	(2) The power conferred on the Mayor must be exercisable only for the purpose of enabling the amount paid under such a direction (the "relevant amount") to be applied towards meeting expenditure for capital purposes of another functional body or of the Authority ("the assisted body").
	(3) The provision that may be made by regulations under subsection (1) above includes provision-
	(a) with respect to the percentage or maximum percentage that may be specified in a direction;
	(b) with respect to the portion of the usable part of a functional body's capital receipts in respect of which a direction may be issued;
	(c) requiring a direction to be complied with before the expiration of a prescribed period;
	(d) requiring the Mayor, within such time or in such manner as may be prescribed, to notify the functional bodies of decisions taken with respect to the exercise of powers conferred by the regulations;
	(e) for and in connection with enabling the Mayor to permit the relevant amount to be applied towards meeting expenditure for capital purposes of the assisted body generally or to require it to be applied towards meeting only such expenditure of a particular description;
	(f) for and in connection with treating the whole or a prescribed part of the relevant amount as added to the usable part of the capital receipts of the assisted body, for the purposes of Part IV of the Local Government and Housing Act 1989;
	(g) for and in connection with requiring an assisted body to apply the relevant amount only for the purposes for which it was paid to the body.
	(4) In this section "prescribed" means prescribed by regulations.
Capital grants between Authority and functional bodies.	104. - (1) The Authority may pay grants towards meeting expenditure for capital purposes incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
	(2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure for capital purposes incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
	(3) A grant under this section must not be made subject to any limitation in respect of the expenditure for capital purposes which it may be applied towards meeting.
	(4) A grant under this section must be applied by the recipient body solely towards meeting expenditure for capital purposes incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions.
Revenue grants between Authority and functional bodies.	105. - (1) The Authority may pay grants towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
	(2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
	(3) A grant under this section must not be made subject to any limitation in respect of the expenditure which it may be applied towards meeting (other than that the expenditure must not be expenditure for capital purposes).
	(4) A grant under this section must be applied by the recipient body solely towards meeting expenditure incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions, other than expenditure for capital purposes.
	The Mayor's capital spending plan
Form and contents of capital spending plan.	106. - (1) The Mayor shall, in accordance with the following provisions of this section and sections 107 and 108 below, prepare for each financial year a capital spending plan for the functional bodies.
	(2) A capital spending plan shall consist of the sections described in subsections (3) to (6) below.
	(3) Section A of a capital spending plan shall consist of a statement for each functional body of the Mayor's estimates of the following amounts-
	(a) the total amount of capital grants likely to be paid to the body during the year by any person other than the Authority;
	(b) the amount, at the beginning of the year, of the usable part of the body's capital receipts; and
	(c) the amount by which the usable part of the body's capital receipts is likely to be increased by capital receipts which it appears to the Mayor the functional body might reasonably be expected to receive, or is likely to receive, during the year.
	(4) Section B of a capital spending plan shall consist of a statement for each functional body of the following amounts-
	(a) the minimum amount of grant which the Mayor has decided that the Authority is to pay to the body for the year under section 104 above;
	(b) the total amount of category A amounts specified for the body in the aggregate credit approval for the year;
	(c) the total amount of category B amounts specified for the body in the aggregate credit approval for the year; and
	(d) each amount which the Mayor has decided to allocate to the body out of the category C and D amounts specified in the aggregate credit approval for the year (together with a statement of the purposes for which the amount is allocated).
	(5) Section C of a capital spending plan shall consist of a statement for each functional body of the total of the following amounts-
	(a) the total amount of expenditure for capital purposes which the Mayor expects the body to incur during the year; and
	(b) the total amount of credit cover which the Mayor expects the body to have available under sections 50(2) and 51(4) of the Local Government and Housing Act 1989 with respect to credit arrangements entered into or varied during the year;
	and in this section the total of those amounts is referred to as the body's "total capital spending" for the year.
	(6) Section D of a capital spending plan shall consist of an analysis of each functional body's total capital spending for the year showing-
	(a) the amount which the Mayor expects the body to meet out of capital grants;
	(b) the amount which he expects the body to meet out of the usable part of its capital receipts;
	(c) the amount which he expects the body to meet by using the aggregate credit approval for the year;
	(d) the amount which he expects the body to meet by making a charge to a revenue account.
Preparation of the plan: consultation and completion.	107. - (1) After the Secretary of State has issued the aggregate credit approval for a financial year, the Mayor shall prepare a draft of the capital spending plan for the year.
	(2) Before 15th January in the financial year preceding that to which the capital spending plan relates, the Mayor shall-
	(a) send a copy of the draft to the Assembly and to each functional body; and
	(b) invite them to submit their comments on the draft to him in writing within 21 days.
	(3) Before finally determining the contents of the capital spending plan, the Mayor shall consider any comments submitted in accordance with the invitation under subsection (2)(b) above and make such revisions of the draft as he thinks fit, having regard to those comments.
	(4) Before 28th February in the financial year preceding that to which the capital spending plan relates, the Mayor shall-
	(a) send the plan to the Secretary of State; and
	(b) send a copy of the plan to the Assembly and to each functional body.
	(5) The Mayor shall make a copy of the capital spending plan available for inspection by members of the public on request at the offices of the Authority at reasonable hours without charge.
	Supplementary provisions
Admissible factors in preparing capital spending plan etc.	108. - (1) In preparing a capital spending plan for any financial year, the Mayor may take account of such factors as appear to him to be appropriate.
	(2) The reference in subsection (1) above to preparing a capital spending plan for a financial year includes a reference to deciding, in the case of each of the functional bodies,-
	(a) the minimum amount of grant which the Authority is to pay to the body for the year under section 104 above; and
	(b) the amounts to be allocated to the body out of the category C and D amounts specified in the aggregate credit approval for the year.
	(3) Without prejudice to the generality of subsection (1) above, the Mayor may in particular take account of-
	(a) the capital spending plans for such financial years which have ended as he may determine; and
	(b) the amounts of each functional body's total capital spending specified in section C of each of those plans which have been met as described in each of the paragraphs of subsection (4) below.
	(4) Those amounts are-
	(a) the amount met out of capital grants made to the body;
	(b) the amount met out of the usable part of the body's capital receipts;
	(c) the amount met by using the aggregate credit approval or any additional credit approvals;
	(d) the amount met by making a charge to a revenue account.
Information.	109. - (1) The Mayor may serve on a functional body a notice requiring the body to supply to him such information as is specified in the notice and required by him for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Chapter.
	(2) If the information specified in a notice under this section is in the possession or under the control of the functional body on which the notice is served, the body shall supply the information required in such form and manner, and at such time, as is specified in the notice and, if the notice so requires, the information shall be certified (according as is specified in the notice) in one or both of the following ways-
	(a) by the chief finance officer of the body, within the meaning of section 111 below, or by such other person as may be specified in the notice; and
	(b) under arrangements made by the Audit Commission for Local Authorities and the National Health Service in England and Wales.
	(3) If a functional body fails to comply with subsection (2) above, the Mayor may decide-
	(a) whether to exercise his powers, and how to perform his functions, under this Chapter, or
	(b) whether the body has acted, or is likely to act, in accordance with this Chapter,
	on the basis of such assumptions and estimates as he thinks fit.
	(4) In deciding-
	(a) whether to exercise his powers, and how to perform his functions, under this Chapter, or
	(b) whether a functional body has acted, or is likely to act, in accordance with this Chapter,
	the Mayor may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other enactment.
Interpretation of this Chapter.	110. - (1) In this Chapter, unless the context otherwise requires-
	"additional credit approval" shall be construed in accordance with section 98 above;
	"aggregate credit approval" shall be construed in accordance with section 97 above;
	"capital receipts" has the same meaning as in Part IV of the Local Government and Housing Act 1989 (see section 58 of that Act);
	"capital spending plan" means a capital spending plan under section 106 above;
	"category", denoted by a following capital letter and used in relation to an amount, shall be construed in accordance with section 97(5) above;
	"expenditure for capital purposes" has the same meaning as in Part IV of the Local Government and Housing Act 1989 (see section 40 of that Act);
	"notice", in relation to an allocation from a category C or D amount, shall be construed in accordance with section 99(3) above;
	"the usable part", in relation to capital receipts, has the same meaning as in Part IV of the Local Government and Housing Act 1989 (see section 60 of that Act);
	"use", in relation to an aggregate credit approval or an additional credit approval, shall be construed in accordance with section 102(4) above.
	(2) References in this Chapter to credit arrangements, or to entering into credit arrangements, shall be construed in accordance with Part IV of the Local Government and Housing Act 1989 (see section 48 of that Act).
	CHAPTER V
	FINANCIAL ADMINISTRATION, ACCOUNTS AND AUDIT
	Financial administration
Proper financial administration and chief finance officer.	111. - (1) In this section "relevant authority" means-
	(a) the Authority; or
	(b) a functional body.
	(2) Every relevant authority-
	(a) shall make arrangements for the proper administration of its financial affairs; and
	(b) shall secure that one of its officers (its "chief finance officer") has responsibility for the administration of those affairs.
	(3) In subsection (2)(b) above, the reference to officers includes a reference to employees or members of staff and, in the case of Transport for London and the London Development Agency, includes a reference to members of the relevant authority.

Prepared 3 December 1998