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Session 2002 - 03
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Local Government Bill


Local Government Bill



Explanatory notes to the Bill, prepared by the Office of the Deputy Prime Minister, are

published separately as Bill 9—EN.


Mr Secretary Prescott has made the following statement under section 19(1)(a) of the

Human Rights Act 1998:

In my view the provisions of the Local Government Bill are compatible with the

Convention rights.

Bill 953/2

Local Government Bill




Part 1

Capital finance etc and accounts

Chapter 1

Capital finance etc


      1        Power to borrow

      2        Control of borrowing

      3        Duty to determine affordable borrowing limit

      4        Imposition of borrowing limits

      5        Temporary borrowing

      6        Protection of lenders

Credit arrangements

      7        “Credit arrangements”

      8        Control of credit arrangements

Capital receipts

      9        “Capital receipt”

      10        Non-money receipts

      11        Use of capital receipts


      12        Power to invest


      13        Security for money borrowed etc

      14        Information


      15        Guidance

      16        “Capital expenditure”

      17        External funds

      18        Local authority companies etc

Bill 953/2

Local Government Bill



      19        Application to parish and community councils

      20        Directions

Chapter 2


      21        Accounting practices

      22        “Revenue account”

Chapter 3


      23        “Local authority”

      24        Wales

Part 2

Financial administration

      25        Budget calculations: report on robustness of estimates etc

      26        Minimum reserves

      27        Budget calculations: report on inadequacy of controlled reserve

      28        Budget monitoring: general

      29        Budget monitoring: Greater London Authority

      30        Authorisation of agreements during the prohibition period

Part 3

Grants etc

Chapter 1

Expenditure grant

      31        Power to pay grant

      32        Ancillary powers

      33        Application to Greater London Authority

      34        Wales

      35        Interpretation of Chapter 1

Chapter 2

Other grants etc

      36        Best value grant: parishes

      37        Best value grant: communities

      38        Grants in connection with designation for service excellence

      39        Emergency financial assistance to combined fire authorities

      40        Loans by Public Works Loan Commissioners

      41        Payments towards local authority indebtedness

      42        Local government finance reports: Wales


Local Government Bill



Part 4

Business improvement districts

BID arrangements

      43        Arrangements with respect to business improvement districts

      44        Joint arrangements

      45        Additional contributions and action

      46        Duty to comply with arrangements

BID levy

      47        BID levy

      48        Liability for BID levy

Administration etc

      49        BID Revenue Account

      50        Administration of BID levy etc


      51        BID proposals

      52        Approval in ballot

      53        Power of veto

      54        Appeal against veto

      55        Commencement of BID arrangements


      56        Duration of BID arrangements etc

      57        Regulations about ballots

      58        Power to make further provision

      59        Crown application

      60        Wales

      61        Interpretation of Part 4

Part 5

Non-domestic rates

      62        Submission of proposed rating lists

      63        Small business relief

      64        Calculation of non-domestic rating multiplier

      65        Rural settlement lists etc

      66        Transitional relief

      67        Rating of meters

      68        Exemptions for agricultural buildings

      69        Exemption for places of religious worship

      70        Removal of power to prescribe rateable values

      71        Adjustments for hardship relief

      72        Provision of information

      73        Interpretation of Part 5


Local Government Bill



Part 6

Council tax

Liability and amount of tax

      74        Exception of students from joint and several liability

      75        Second and empty homes: England

      76        Billing authority’s power to reduce amount of tax payable

Valuation lists and bands

      77        Statutory revaluation cycle

      78        Power to change number of valuation bands

      79        Transitional arrangements


      80        Amendments relating to distress

      81        Charging orders: aggregation

      82        Quashing of liability orders


      83        Major precepting authorities: combined fire authorities

      84        Amendment of section 67 of the Local Government Finance Act 1992

      85        Vacant dwellings: use of information obtained for council tax purposes

      86        Repeal of section 31 of the Local Government Act 1999

Part 7

Housing finance etc

      87        Housing strategies and statements

      88        Housing Revenue Account business plans

      89        Housing Revenue Account subsidy: payment and calculation

      90        Housing Revenue Account subsidy: negative amounts

      91        Housing Revenue Accounts etc: adaptation of enactments

      92        Local housing authority houses: rents

Part 8

Miscellaneous and general

Chapter 1


Charging and trading

      93        Power to charge for discretionary services

      94        Power to disapply section 93(1)

      95        Power to trade in function-related activities through a company

      96        Regulation of trading powers

      97        Power to modify enactments in connection with charging or trading


Local Government Bill



      98        Procedure for orders under section 97

Performance categories

      99        Categorisation of English local authorities by reference to performance

      100        Exercise of powers by reference to authorities’ performance categories


      101        Staff transfer matters: general

      102        Staff transfer matters: pensions

2004 local government elections

      103        Power to change date of elections in England

      104        Power to change date of elections in Wales

Valuation Tribunal Service

      105        The Valuation Tribunal Service

      106        Transfer to Service of property, rights and liabilities

Audit Commission

      107        Auditors’ public interest reports: time allowed for consideration

      108        Auditors’ public interest reports: publicity

      109        Financial year

      110        Delegation


      111        Standards Board for England: delegation

      112        Paid time off for councillors not to be political donation

      113        Overview and scrutiny committees: voting rights of co-opted members

      114        Local polls

      115        Appropriate sum under section 137(4) of the Local Government Act 1972

      116        Use of fixed penalties paid for litter and dog-fouling offences

Chapter 2


      117        Orders and regulations

      118        General interpretation

      119        Application to Isles of Scilly

      120        Financial provisions

      121        Minor and consequential amendments and repeals

      122        Commencement

      123        Short title and extent

                  Schedule 1                                         Capital finance: parish and community councils and charter



Local Government Bill



                  Schedule 2                                         Welsh local government finance reports

                  Schedule 3                                         Amendment of powers exercisable in relation to local


                  Schedule 4                                         The Valuation Tribunal Service

                  Schedule 5                                         Transfer schemes: further provision

                  Schedule 6                                         Minor and consequential amendments

                  Schedule 7                                         Repeals and revocations

                  Part 1                    —                     Repeals

                  Part 2                    —                     Revocations


contents continue
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Revised 26 November 2002