House of Commons portcullis
House of Commons
Session 2002 - 03
Internet Publications
Other Bills before Parliament

Local Government Bill


Local Government Bill
Part 3 — Grants etc
Chapter 1 — Expenditure grant

    14

 

 30    Authorisation of agreements during the prohibition period

     (1)    In section 115 of the Local Government Finance Act 1988 (c. 41) (which sets out

the consequences for a relevant authority of the receipt of a report made by its

chief finance officer under section 114(3)), in subsection (6) (which prevents an

authority that has received such a report from entering into certain agreements

5

during the prohibition period), at the end there is inserted “unless the chief

finance officer of the authority authorises it to do so”.

     (2)    After that subsection there is inserted—

           “(6A)              The chief finance officer may only give authority for the purposes of

subsection (6) above if he considers that the agreement concerned is

10

likely to—

                  (a)                 prevent the situation that led him to make the report from

getting worse,

                  (b)                 improve the situation, or

                  (c)                 prevent the situation from recurring.

15

           (6B)              Authority for the purposes of subsection (6) above shall—

                  (a)                 be in writing,

                  (b)                 identify the ground on which it is given, and

                  (c)                 explain the chief finance officer’s reasons for thinking that the

ground applies.”

20

     (3)    In subsection (14) of that section (which defines certain terms used in that

section), after the definition of “the Assembly”, there is inserted—

                    ““chief finance officer” has the same meaning as in section 114;”.

Part 3

Grants etc

25

Chapter 1

Expenditure grant

 31    Power to pay grant

     (1)    A Minister of the Crown may pay a grant to a local authority towards expenditure

incurred or to be incurred by it.

30

     (2)    The amount of a grant under this section and the manner of its payment are to

be such as the Minister of the Crown concerned may determine.

     (3)    A grant under this section may be paid on such conditions as the Minister of

the Crown concerned may determine.

     (4)    Conditions under subsection (3) may, in particular, include—

35

           (a)           provision as to the use of the grant;

           (b)           provision as to circumstances in which the whole or part of the grant

must be repaid.

     (5)    In the case of a grant to a local authority in England, the powers under this

section are exercisable with the consent of the Treasury.

40

 

 

Local Government Bill
Part 3 — Grants etc
Chapter 1 — Expenditure grant

    15

 

 32    Ancillary powers

     (1)    A local authority must supply a Minister of the Crown with such information

as he may require for the purposes of section 31.

     (2)    A Minister of the Crown may in connection with that section require a local

authority to formulate policies in relation to any matter.

5

     (3)    In this section, “local authority” includes a functional body.

 33    Application to Greater London Authority

     (1)    For the purposes of section 31, expenditure of a functional body shall be treated

as expenditure of the Greater London Authority.

     (2)    The conditions on which grant under section 31 may be paid include, in the

10

case of a grant to the Greater London Authority, a condition requiring the

Mayor to transfer the grant to a functional body.

     (3)    A decision to pay a grant under section 31 subject to such a condition as is

mentioned in subsection (2) above shall be notified to to the functional body

concerned as well as to the Greater London Authority.

15

     (4)    Where a grant paid under section 31 to the Greater London Authority is paid

subject to such a condition as is mentioned in subsection (2) above, the Mayor

must transfer the grant to the functional body concerned forthwith.

     (5)    Where a grant paid under section 31 to the Greater London Authority is not

paid subject to such a condition as is mentioned in subsection (2) above, the

20

Mayor may transfer the grant to a functional body.

     (6)    Where grant under section 31 is transferred under this section to a functional

body, any conditions to which the grant is subject shall apply to the transferee

instead of the transferor.

     (7)    In this section, “Mayor” means Mayor of London.

25

 34    Wales

In the application of this Chapter to local authorities in Wales, references to a

Minister of the Crown include the National Assembly for Wales.

 35    Interpretation of Chapter 1

     (1)    The following are local authorities for the purposes of this Chapter—

30

           (a)           a county council;

           (b)           a county borough council;

           (c)           a district council;

           (d)           the Greater London Authority;

           (e)           a London borough council;

35

           (f)           the Common Council of the City of London, in its capacity as a local

authority, police authority or port health authority;

           (g)           the Council of the Isles of Scilly;

           (h)           the Greater London Magistrates’ Courts Authority;

           (i)           an authority established under section 10 of the Local Government Act

40

1985 (c. 51) (waste disposal authorities);

 

 

Local Government Bill
Part 3 — Grants etc
Chapter 2 — Other grants etc

    16

 

           (j)           a joint authority established by Part 4 of that Act (fire services, civil

defence and transport);

           (k)           a joint planning board constituted for an area in Wales outside a

National Park by an order under section 2(1B) of the Town and Country

Planning Act 1990 (c. 8);

5

           (l)           a fire authority constituted by a combination scheme;

           (m)           a police authority established under section 3 of the Police Act 1996

(c. 16).

     (2)    In this Chapter—

                    “functional body” has the same meaning as in the Greater London

10

Authority Act 1999 (c. 29);

                    “Minister of the Crown” has the same meaning as in the Ministers of the

Crown Act 1975 (c. 26).

Chapter 2

Other grants etc

15

 36    Best value grant: parishes

     (1)    The following are best value authorities for the purposes of this section—

           (a)           a parish council subject to any of the duties in sections 3 to 6 of the Local

Government Act 1999 (c. 27) (best value duties), and

           (b)           a parish meeting subject to any of those duties.

20

     (2)    For each financial year, the Secretary of State may, with the consent of the

Treasury, pay grants in accordance with this section to best value authorities

towards expenditure incurred or to be incurred by them in connection with

any of the requirements of Part 1 of the Local Government Act 1999 (best

value).

25

     (3)    The power under subsection (2) shall be exercisable by the making of a

determination stating in relation to each best value authority the amount of

grant, if any, which the Secretary of State intends to make to it for each year to

which the determination relates.

     (4)    A determination under this section may include provision for grant paid

30

pursuant to the determination to be subject to specified conditions.

     (5)    The conditions which may be included under subsection (4) shall be such as the

Secretary of State thinks fit and may, in particular, make provision about—

           (a)           the supply of information,

           (b)           the use of grant, or

35

           (c)           the repayment of grant in specified circumstances.

     (6)    A determination under this section—

           (a)           may make different provision for different cases or areas;

           (b)           may be made before, during or after the end of a financial year to which

it relates;

40

           (c)           may be revoked or varied by a subsequent determination.

     (7)    The power under subsection (6)(a) includes, in particular, the power to make

different provision for different best value authorities or descriptions of

 

 

Local Government Bill
Part 3 — Grants etc
Chapter 2 — Other grants etc

    17

 

     (7)    authority (including descriptions framed by reference to authorities in

particular areas).

     (8)    Grant due to a best value authority in accordance with a determination under

this section shall be payable at such time, or in such instalments and at such

times, as the Secretary of State may think fit.

5

     (9)    A grant made under this section to a parish meeting shall be paid to the parish

trustees for the parish in question.

 37    Best value grant: communities

     (1)    For the purposes of this section a best value authority is a community council

subject to any of the duties in sections 3 to 6 of the Local Government Act 1999

10

(c. 27).

     (2)    For each financial year, the National Assembly for Wales may pay grants in

accordance with this section to best value authorities towards expenditure

incurred or to be incurred by them in connection with any of the requirements

of Part 1 of the Local Government Act 1999.

15

     (3)    The power under subsection (2) shall be exercisable by the making of a

determination stating in relation to each best value authority the amount of

grant, if any, which the Assembly intends to make to it for each year to which

the determination relates.

     (4)    A determination under this section may include provision for grant paid

20

pursuant to the determination to be subject to specified conditions.

     (5)    The conditions which may be included under subsection (4) shall be such as the

Assembly thinks fit and may, in particular, make provision about—

           (a)           the supply of information,

           (b)           the use of grant, or

25

           (c)           the repayment of grant in specified circumstances.

     (6)    A determination under this section—

           (a)           may make different provision for different cases or areas;

           (b)           may be made before, during or after the end of a financial year to which

it relates;

30

           (c)           may be revoked or varied by a subsequent determination.

     (7)    The power under subsection (6)(a) includes, in particular, the power to make

different provision for different best value authorities or descriptions of

authority (including descriptions framed by reference to authorities in

particular areas).

35

     (8)    Grant due to a best value authority in accordance with a determination under

this section shall be payable at such time, or in such instalments and at such

times, as the Assembly may think fit.

 38    Grants in connection with designation for service excellence

     (1)    The appropriate person may pay any of the following to a best value authority

40

subject to any of the duties in sections 3 to 6 of the Local Government Act 1999

(best value duties)

 

 

Local Government Bill
Part 3 — Grants etc
Chapter 2 — Other grants etc

    18

 

           (a)           a grant towards expenditure incurred by the authority in applying for

the award of a designation based on excellence in the provision of

services, and

           (b)           where the authority is awarded such a designation

                  (i)                 a grant as a reward for being awarded such a designation, and

5

                  (ii)                a grant towards expenditure incurred or to be incurred by the

authority in disseminating information about best practices.

     (2)    The amount of a grant under this section and the manner of its payment are to

be such as the appropriate person may determine.

     (3)    A grant under this section may be paid on such conditions as the appropriate

10

person may determine as to the circumstances in which the whole or any part

of the grant must be repaid.

 39    Emergency financial assistance to combined fire authorities

In section 155 of the Local Government and Housing Act 1989 (c. 42)

(emergency financial assistance to local authorities), in subsection (4)

15

(authorities that are local authorities for the purposes of that section), after

paragraph (g) there is inserted “; or

                  (h)                    a fire authority in England and Wales constituted by a

combination scheme under the Fire Services Act 1947.”

20

 40    Loans by Public Works Loan Commissioners

     (1)    The Secretary of State may, if he thinks it appropriate, make payments to the

Public Works Loan Commissioners so as to reduce or extinguish such debt

(whether then due or not) of a local authority in England to those

Commissioners as he thinks fit.

25

     (2)    The National Assembly for Wales may, if it thinks it appropriate, make

payments to the Public Works Loan Commissioners so as to reduce or

extinguish such debt (whether then due or not) of a local authority in Wales to

those Commissioners as the Assembly thinks fit.

     (3)    The amount—

30

           (a)           required to extinguish a debt, or

           (b)           by which a payment reduces a debt,

            shall be such as may be determined by the Commissioners.

     (4)    The Commissioners may refuse to accept a payment which the Secretary of

State or the National Assembly for Wales proposes to make to them under this

35

section.

     (5)    In this section “local authority” means—

           (a)           in relation to England—

                  (i)                 a district council,

                  (ii)                a county council that is the council for a county in which there

40

are no district councils,

                  (iii)               a London borough council,

                  (iv)                the Common Council of the City of London, or

                  (v)                 the Council of the Isles of Scilly; and

 

 

Local Government Bill
Part 3 — Grants etc
Chapter 2 — Other grants etc

    19

 

           (b)           in relation to Wales, a county council or a county borough council.

 41    Payments towards local authority indebtedness

     (1)    The Secretary of State may, if he thinks it appropriate, make payments to a local

authority in England for application by the authority in reducing or

extinguishing such debt (whether then due or not) of the authority as he thinks

5

fit.

     (2)    The National Assembly for Wales may, if it thinks it appropriate, make

payments to a local authority in Wales for application by the authority in

reducing or extinguishing such debt (whether then due or not) of the authority

as the Assembly thinks fit.

10

     (3)    The person making payments to a local authority under this section may

specify how the payments are to be applied by the authority and may in

particular specify—

           (a)           the debt or debts to be extinguished, or

           (b)           the debt or debts to be reduced.

15

     (4)    A payment under this section may be made subject to conditions imposed by

the person making the payment.

     (5)    The conditions that may be imposed under subsection (4) include (in

particular) conditions relating to the repayment in specified circumstances of

all or part of the payment.

20

     (6)    Payments made to a local authority under this section may not be applied in

reducing or extinguishing any debt of the authority to the Public Works Loan

Commissioners.

     (7)    In this section “local authority” means—

           (a)           in relation to England—

25

                  (i)                 a district council,

                  (ii)                a county council that is the council for a county in which there

are no district councils,

                  (iii)               a London borough council,

                  (iv)                the Common Council of the City of London, or

30

                  (v)                 the Council of the Isles of Scilly; and

           (b)           in relation to Wales, a county council or a county borough council.

 42    Local government finance reports: Wales

     (1)    Schedule 2 (which makes provision for enabling the National Assembly for

Wales to make two local government finance reports for a year, one dealing

35

with police authorities and one dealing with other authorities and bodies) has

effect.

     (2)    This section applies in relation to the financial year beginning on 1st April 2004

and subsequent financial years.

 

 

Local Government Bill
Part 4 — Business improvement districts

    20

 

Part 4

Business improvement districts

BID arrangements

 43    Arrangements with respect to business improvement districts

     (1)    A billing authority may in accordance with this Part make arrangements (“BID

5

arrangements”) with respect to an area (a “business improvement district”)

comprising all or part of the area of the authority.

     (2)    The purpose of BID arrangements is to enable—

           (a)           the projects specified in the arrangements to be carried out for the

benefit of the business improvement district or those who live, work or

10

carry on any activity in the district, and

           (b)           those projects to be financed (in whole or in part) by a levy (“BID levy”)

imposed on the non-domestic ratepayers, or a class of such ratepayers,

in the district.

 44    Joint arrangements

15

     (1)    The Secretary of State may by regulations make provision for or in connection

with enabling two or more billing authorities to make BID arrangements with

respect to a business improvement district comprising all or part of the area of

each of the authorities.

     (2)    The provision which may be made by regulations under this section includes

20

provision which modifies any provision made by or under this Part in its

application to such arrangements.

 45    Additional contributions and action

     (1)    The persons specified in subsection (2) may make financial contributions or

take action for the purpose of enabling the projects specified in BID

25

arrangements to be carried out.

     (2)    Those persons are—

           (a)           the billing authority which has made the arrangements,

           (b)           a county council or parish council any part of whose area falls within

the business improvement district, and

30

           (c)           any other person authorised or required to do so in accordance with the

arrangements.

 46    Duty to comply with arrangements

Where BID arrangements are in force, the billing authority which made the

arrangements must comply with them.

35

 

 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2003
Revised 14 February 2003