Greater London Authority Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Greater London Authority Bill

Greater London Authority Bill
Part 1 — General functions of the Authority
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(a)
section 7 of the Local Government and Housing Act 1989 (staff
to be appointed on merit) shall apply in relation to any such
appointment as if the Authority were a local authority;
(b)
section 8 of that Act (duty to adopt standing orders with respect
to staff) shall apply in relation to a person appointed under
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subsection (1) above as if the Authority were a relevant
authority.
(3)
The terms and conditions of employment of the person appointed
under subsection (1) above (including conditions as to remuneration)
are to be such as the Mayor and the Assembly acting jointly think fit.
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(4)
A person must not at the same time be both—
(a)
the Authority’s chief finance officer appointed under
subsection (1) above, and
(b)
a member of staff appointed under section 67(1) above.”.
(3)
Where this section amends any provision relating to the appointment of a
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person as the chief finance officer of the Authority, any such appointment
made before the commencement day and in force on that day has effect on and
after that day as if made under the provision as amended.
(4)
Where this section amends any provision relating to the terms and conditions
of employment of any such person, the terms and conditions of employment of
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the person that are in force on the commencement day have effect on and after
that day as if imposed under the provision as amended.
(5)
In this section “the commencement day” means the day on which the
amendment in question comes into force.
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Amendments consequential on sections 8 to 10
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(1)
The GLA Act 1999 is amended as follows.
(2)
In section 45(6) (exemption from requirement to answer questions) after
“section 67(1) or (2)” insert “, 72(1), 73(1) or 127A(1)”.
(3)
In section 61(10) (exemption from requirement to disclose evidence or
documents) after “section 67(1) or (2)” insert “, 72(1), 73(1) or 127A(1)”.
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(4)
In section 359(2)(a) (confidential information about waste contracts) after
“section 67(1) or (2)” insert “, 72(1), 73(1) or 127A(1)”.
(5)
In section 404(1) (duty not to discriminate)—
(a)
after “it shall be the duty of” insert “(and of any body or person acting
for or on behalf of) any of the following”;
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(b)
in paragraph (a), omit “(whether acting by the Mayor, the Assembly or
the Mayor and Assembly jointly)”;
(c)
omit “and” at the end of paragraph (b).
(6)
In section 424(1) (interpretation), in the definition of “member of staff”, after
“section 67(1) or (2)” insert “, 72(1), 73(1) or 127A(1)”.
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Greater London Authority Bill
Part 1 — General functions of the Authority
9

The annual budget
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Separate component budgets for Assembly and Mayor
(1)
Section 85 of the GLA Act 1999 (calculation of component budget
requirements) is amended as follows.
(2)
In subsection (3) (which identifies the constituent bodies) for paragraph (a) (the
5
Authority) substitute—
“(a)
the Assembly,
(aa)
the Mayor, and”.
(3)
After subsection (3) insert—
“(3A)
In subsection (3) above—
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(a)
the reference to the Assembly is a reference to the Authority as
respects the Assembly’s functions (see subsection (14)),
(b)
the reference to the Mayor is a reference to the Authority except
as respects the Assembly’s functions,

and other references in this Chapter to the Mayor or the Assembly, in
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their capacity as constituent bodies for the purposes of the budgetary
provisions, or to their functions (in that capacity), are to be construed
accordingly.”.
(4)
In subsection (4)(a) (expenditure of constituent bodies)—
(a)
for “the body will incur” substitute “will be incurred by the body”,
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(b)
for “will charge” substitute “will be charged”,
(c)
at the end insert “(but, in the case of the Mayor or the Assembly, see also
subsections (10) to (13))”.
(5)
In subsection (4)(c) (financial reserves of constituent bodies) for “appropriate
for the body to raise” substitute “appropriate to be raised by or in respect of the
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body”.
(6)
In subsection (4)(d) (financial reserves to meet revenue account deficit of
earlier year not provided for)—
(a)
for “the body’s financial reserves” substitute “the financial reserves of,
or in respect of, the body”,
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(b)
for “revenue account deficit of the body” substitute “revenue account
deficit of or in respect of the body”.
(7)
In subsection (5)(a) (sums payable to constituent bodies) after “payable to”
insert “or for”.
(8)
In subsection (5)(b) (financial reserves likely to be used by constituent bodies)
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for “that the body will use” substitute “will be used by or in respect of the
body”.
(9)
In subsection (9) (expanded meaning of expenditure incurred by a body in a
financial year)—
(a)
in paragraph (a) (money set aside to meet credit liabilities) for “set aside
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by the body” substitute “set aside by or in respect of the body”,
(b)
in paragraph (b) (money set aside as provision for certain liabilities or
losses) for “by the body” substitute “by or in respect of the body”.

Greater London Authority Bill
Part 1 — General functions of the Authority
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(10)
After subsection (9) insert—
“(10)
Subsections (11) to (13) below have effect for the purposes of the
budgetary provisions in their application in relation to the Mayor and
the Assembly in their capacity as constituent bodies.
(11)
The expenditure that is to be regarded for the purposes of subsection
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(4)(a) above as incurred by the Assembly in the performance of its
functions includes any expenditure by the Authority in the
performance of its functions which is incurred in respect of any of the
following—
(a)
the Assembly members,
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(b)
the Assembly secretariat (see subsection (14)),
(c)
goods or services procured solely for the purposes of the
Assembly,
(d)
the London Transport Users’ Committee (see section 247 and
Schedule 18),
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but does not include any expenditure falling within subsection (12)
below.
(12)
That expenditure is expenditure by the Authority in respect of any of
the following—
(a)
accommodation provided or procured in whole or in part for
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the conduct of the business of the Assembly or Assembly
members,
(b)
goods or services provided or procured for the Authority in
general.
(13)
The expenditure that is to be regarded for the purposes of subsection
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(4)(a) above as incurred by the Mayor in the performance of his
functions is any expenditure—
(a)
which is incurred by the Authority in the performance of its
functions, and
(b)
which does not fall to be regarded for the purposes of
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subsection (4)(a) above as incurred by the Assembly in the
performance of its functions.
(14)
In this section—
“the Assembly secretariat” means employees of the Authority
who normally work as support staff for the Assembly or
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Assembly members;
“the Assembly’s functions” means—
(a)
such of the functions of the Authority as are exercisable
only by the Assembly acting on behalf of the Authority,
and
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(b)
the Assembly’s function of acting jointly with the Mayor
in the case of those functions of the Authority which are
exercisable only by the Mayor and the Assembly acting
jointly on behalf of the Authority;
“the budgetary provisions” means sections 85 to 87 of, and
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Schedule 6 to, this Act.
(15)
All such apportionments as may be necessary for the purpose of
calculating the aggregates required by subsections (4) and (5) above in

Greater London Authority Bill
Part 1 — General functions of the Authority
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the case of the Mayor and the Assembly are to be made on a just and
reasonable basis.”.
(11)
Section 86 (provisions supplemental to section 85) is amended as follows.
(12)
In subsection (1) (amounts not to be brought into account in relation to the
Authority if brought into account in relation to functional body)—
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(a)
for “the Authority” substitute “the Mayor or the Assembly”,
(b)
after “in its application in relation to” insert “the other of them or”.
(13)
After subsection (2) (treatment of levies issued to constituent bodies) insert—
“(2A)
For the purposes of subsection (2) above, any levy issued to the
Authority shall be treated as a levy issued to the Mayor.”.
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(14)
In subsection (4) (body’s estimated future expenditure for section 85(4)(c)) in
paragraph (a)—
(a)
for “the body will incur” substitute “will be incurred by”,
(b)
for “will charge” substitute “will be charged”,
(c)
for “will have to defray” substitute “will have to be defrayed”,
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(d)
in sub-paragraph (i), for “payable to it” substitute “payable to or for it”,

and in paragraph (b), for “the body will incur” substitute “will be incurred by”.
(15)
In section 99 (interpretation of Chapter 1 of Part 3) insert the following
definition at the appropriate place—
“ “budgetary provisions” has the meaning given in section 85(14)
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above;”.
(16)
In section 424(1) (general definitions)—
(a)
in the definition of “the Assembly” insert at the end “(but see also
section 85(3A) above)”;
(b)
in the definition of “the Mayor” insert at the end “(but see also section
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85(3A) above)”.
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Procedure for determining Authority’s consolidated budget requirement
(1)
Schedule 6 to the GLA Act 1999 (procedure for determining the Authority’s
consolidated budget requirement) is amended as follows.
(2)
In paragraph 2, for sub-paragraph (2) (consultation before preparing draft
30
component budget for the Authority) substitute—
    “(2)
The Mayor shall consult the Assembly—
(a)
before preparing the draft component budget for the Mayor,
and
(b)
before preparing the draft component budget for the
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Assembly.”.
(3)
In paragraph 4 (duty of Assembly if Mayor fails to comply) in sub-paragraph
(1) for paragraph (b) substitute—
“(b)
prepare a draft component budget for the Mayor;
(bb)
prepare a draft component budget for the Assembly; and”.
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(4)
In paragraph 5 (Assembly consideration of Mayor’s draft budget) in sub-
paragraph (3) (Assembly to approve budgets with or without amendment)
after “with or without amendment” insert “(but see paragraph 5A below)”.

Greater London Authority Bill
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(5)
After paragraph 5 insert—
“Limit on Assembly’s powers to amend Mayor’s draft budget for the Assembly
5A    (1)
In exercising its powers of amendment under paragraph 5(3) above,
the Assembly must not make amendments affecting the amount of
the draft component budget requirement for the Assembly if those
5
amendments, taken together, contravene sub-paragraph (2) below.
      (2)
Amendments contravene this sub-paragraph if—
(a)
the effect of implementing the amendments is to increase the
amount of the draft component budget requirement for the
Assembly, and
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(b)
the condition in sub-paragraph (3) below is met.
      (3)
The condition is that—
(a)
the draft component budget requirement for the Assembly,
after implementing the amendments,
  exceeds
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(b)
the adjusted previous component budget requirement for the
Assembly.
      (4)
Find the adjusted previous component budget requirement for the
Assembly as follows.
      (5)
Find NM and OM, where—
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NM is the draft component budget requirement for the Mayor,
before implementing any amendments under paragraph 5(3)
above;
OM is the component budget requirement for the Mayor for the
previous financial year.
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      (6)
If NM is greater than OM—
(a)
find the percentage by which NM is greater than OM, and
(b)
increase the amount of the component budget requirement
for the Assembly for the previous financial year by the same
percentage.
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The result is the adjusted previous component budget requirement
for the Assembly.
      (7)
If NM is less than OM—
(a)
find the percentage by which NM is less than OM, and
(b)
reduce the amount of the component budget requirement for
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the Assembly for the previous financial year by the same
percentage.

The result is the adjusted previous component budget requirement
for the Assembly.
      (8)
If NM equals OM, then—
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(a)
the adjusted previous component budget requirement for the
Assembly,
  equals
(b)
the amount of the component budget requirement for the
Assembly for the previous financial year.
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Greater London Authority Bill
Part 1 — General functions of the Authority
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      (9)
The Authority’s chief finance officer may direct that such amounts as
he may specify in the direction are to be left out of account for the
purpose of determining the adjusted previous component budget
requirement for the Assembly.
     (10)
The Secretary of State may give the chief finance officer guidance
5
with respect to the exercise of the power to give a direction under
sub-paragraph (9) above.
     (11)
The chief finance officer must have regard to any such guidance.
     (12)
For the purposes of this Schedule the “draft component budget
requirement” for any constituent body is the component budget
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requirement for the body as stated in the draft component budget for
the body.”.
(6)
In paragraph 8 (approval of Mayor’s draft budget by Assembly) in sub-
paragraph (3) (Assembly to approve final draft budget with or without
amendment) after “with or without amendment” insert “(but see paragraph 8A
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below)”.
(7)
After paragraph 8 insert—
“Limit on Assembly’s power to amend Mayor’s final draft budget for the Assembly
8A    (1)
In exercising its powers of amendment under paragraph 8 above, the
Assembly must not make amendments affecting the amount of the
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final draft component budget requirement for the Assembly if those
amendments, taken together, contravene sub-paragraph (2) below.
      (2)
Amendments contravene this sub-paragraph if—
(a)
the effect of implementing the amendments is to increase the
amount of the final draft component budget requirement for
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the Assembly, and
(b)
the condition in sub-paragraph (3) below is met.
      (3)
The condition is that—
(a)
the final draft component budget requirement for the
Assembly, after implementing the amendments,
30
  exceeds
(b)
the adjusted previous component budget requirement for the
Assembly.
      (4)
Find the adjusted previous component budget requirement for the
Assembly as follows.
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      (5)
Find NM and OM, where—
NM is the final draft component budget requirement for the
Mayor, before implementing any amendments under
paragraph 8(3) above;
OM is the component budget requirement for the Mayor for the
40
previous financial year.
      (6)
If NM is greater than OM—
(a)
find the percentage by which NM is greater than OM, and

Greater London Authority Bill
Part 1 — General functions of the Authority
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(b)
increase the amount of the component budget requirement
for the Assembly for the previous financial year by the same
percentage.

The result is the adjusted previous component budget requirement
for the Assembly.
5
      (7)
If NM is less than OM—
(a)
find the percentage by which NM is less than OM, and
(b)
reduce the amount of the component budget requirement for
the Assembly for the previous financial year by the same
percentage.
10

The result is the adjusted previous component budget requirement
for the Assembly.
      (8)
If NM equals OM, then—
(a)
the adjusted previous component budget requirement for the
Assembly,
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  equals
(b)
the amount of the component budget requirement for the
Assembly for the previous financial year.
      (9)
Subsections (9) to (11) of paragraph 5A above (power of chief finance
officer to direct amounts to be left out of account) also have effect for
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the purposes of this paragraph.
     (10)
For the purposes of this Schedule the “final draft component budget
requirement” for any constituent body is the component budget
requirement for the body as stated in the final draft budget.”.
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Substitute calculations
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(1)
Schedule 7 to the GLA Act 1999 (procedure for making of substitute
calculations by the Authority) is amended as follows.
(2)
After paragraph 4 (Assembly consideration of Mayor’s first draft) insert—
“Limit on Assembly’s powers to amend Mayor’s first draft budget for the Assembly
4A    (1)
In exercising its powers of amendment under paragraph 4(3) above,
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the Assembly must not make amendments affecting the amount of
the first draft component budget requirement for the Assembly if
those amendments, taken together, contravene sub-paragraph (2)
below.
      (2)
Amendments contravene this sub-paragraph if—
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(a)
the effect of implementing the amendments is to increase the
amount of the first draft component budget requirement for
the Assembly, and
(b)
the condition in sub-paragraph (3) below is met.
      (3)
The condition is that—
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(a)
the first draft component budget requirement for the
Assembly, after implementing the amendments,
  exceeds
(b)
the adjusted previous component budget requirement for the
Assembly (see sub-paragraph (5)).
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