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Require the Secretary of State to begin negotiations with certain local |
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authorities with a view to those local authorities leaving the current national |
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housing subsidy system and becoming Council Housing (Local Financing |
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Pathfinders) by April 2011; and for connected purposes. |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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1 | Council housing (local financing pathfinders) |
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(1) | The Secretary of State must by regulations made by statutory instrument |
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provide for the Schedule to be implemented in no more than three local |
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authorities by 30 April 2011. |
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(2) | The regulations must set out the criteria on which the Secretary of State has |
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selected the local authorities in which the Schedule will be implemented. |
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(3) | The local authorities selected by the Secretary of State are to be known as local |
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(4) | Agreements under section 80B of the Local Government and Housing Act 1989 |
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to give effect to the regulations must be concluded not later than 30 April 2011. |
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(5) | Regulations made under this section must be laid before Parliament not later |
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than 17 February 2011 and are subject to annulment in pursuance of a |
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resolution of either House of Parliament. |
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There is to be paid out of money provided by Parliament— |
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(a) | any expenditure incurred under or by virtue of this Act by the Secretary of |
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(b) | any increase attributable to this Act in the sums payable under any other Act |
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out of money so provided. |
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1 | The Secretary of State may make a determination providing for the calculation of the |
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amount of a payment (referred to in this Schedule as a “settlement payment”) in |
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relation to each local housing authority in England that keeps a Housing Revenue |
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2 | A determination may, in particular, provide for all or part of the amount to be |
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calculated in accordance with a formula or formulae. |
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3 | In determining a formula for this purpose, the Secretary of State may, in particular, |
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include variables framed by reference to— |
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(a) | the amounts (if any) that, during such period and on such assumptions as |
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the Secretary of State may determine, are to be treated as amounts that will |
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be received by the local housing authority in connection with the exercise of |
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its functions relating to houses and other property within its Housing |
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(b) | the amounts (if any) that, during such period and on such assumptions as |
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the Secretary of State may determine, are to be treated as amounts that will |
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be paid by the authority in connection with the exercise of those functions, |
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(c) | the amount (if any) that, at such time and on such assumptions as the |
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Secretary of State may determine, is to be treated as the amount of debt held |
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by the authority in connection with the exercise of those functions. |
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4 | A determination may provide for an assumption to be made about an amount |
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whether or not the assumption is, or is likely to be, borne out by events. |
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5 | A determination may provide that the effect of the calculation in relation to a local |
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housing authority is that— |
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(a) | a settlement payment must be made by the Secretary of State to the local |
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(b) | a settlement payment must be made by the local housing authority to the |
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(c) | the amount of a settlement payment in relation to that authority is nil. |
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6 | Paragraphs 7 to 9 apply if a settlement payment has been made in respect of a local |
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7 | The Secretary of State may from time to time make a determination that a further |
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payment calculated in accordance with the determination must be made— |
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(a) | by the Secretary of State to the local housing authority, or |
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(b) | by the local housing authority to the Secretary of State. |
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8 | The Secretary of State may make a determination under paragraph 7 only if there |
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has been a change in any matter that was taken into account in making— |
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(a) | the determination relating to the settlement payment or a calculation under |
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(b) | a previous determination under paragraph 7 relating to the local housing |
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authority or a calculation under that determination. |
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9 | A determination under paragraphs 6 to 8 may be varied or revoked by a subsequent |
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Further provisions about payments |
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10 | A payment under this Schedule must be made in such instalments, at such |
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times and in accordance with such arrangements as the Secretary of State |
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11 | Arrangements under paragraph 10 may include arrangements for payments |
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(a) | by a person or body other than the Secretary of State to a local |
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(b) | to a person or body other than the Secretary of State by a local |
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12 | A payment under this Schedule by a local housing authority must be |
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accompanied by such information as the Secretary of State may require. |
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13 | The Secretary of State may charge a local housing authority interest, at such |
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rates and for such periods as the Secretary of State may determine, on any |
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sum payable by the local housing authority under this Schedule that is not |
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paid by a time determined under this section for its payment. |
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14 | The Secretary of State may charge a local housing authority an amount equal |
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to any additional costs incurred by the Secretary of State as a result of any |
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sum payable by the local housing authority under this Schedule not being |
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paid by a time determined under this section for its payment. |
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15 | A payment under this Schedule other than a payment under paragraphs 13 |
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(a) | if made by a local housing authority, is to be treated by the authority |
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as capital expenditure for the purposes of Chapter 1 of Part 1 of the |
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Local Government Act 2003; |
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(b) | if made to a local housing authority, is to be treated by the authority |
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as a capital receipt for the purposes of that Chapter. |
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16 | A determination under this Schedule may require a payment to a local |
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housing authority made under this Schedule to be used by the authority for |
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a purpose specified in the determination. |
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17 | A local housing authority to which such a requirement applies must comply |
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18 | In Schedule 4 to the Local Government and Housing Act 1989 (the keeping |
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of the housing revenue account) in Part 2 (debits to the account) after item 5 |
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“Item 5A: sums payable under section 143 of the Localism Act 2011 |
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| Sums payable for the year to the Secretary of State under section |
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143(4) or (5) of the Localism Act 2011 (interest etc charged as a |
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result of late payment of settlement payments etc).” |
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19 | The Secretary of State may from time to time make a determination |
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providing for the calculation in relation to each local housing authority in |
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England that keeps a Housing Revenue Account of— |
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(a) | the amount of housing debt that, at such time and on such |
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assumptions as the Secretary of State may determine, is to be treated |
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as held by the authority, and |
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(b) | the maximum amount of such housing debt that the authority may |
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20 | A determination under paragraph 19 may, in particular, provide for all or |
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part of an amount to be calculated in accordance with a formula or formulae. |
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21 | A determination under paragraphs 19 and 20 may provide for assumptions |
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to be made in making a calculation whether or not those assumption are, or |
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are likely to be, borne out by events. |
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22 | A determination under paragraphs 19 to 21 may be varied or revoked by a |
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subsequent determination. |
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23 | A local housing authority may not hold debt in contravention of a |
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determination under paragraphs 19 to 22. |
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24 | In paragraphs 19 to 23, “housing debt”, in relation to a local housing |
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(a) | which is held by the authority in connection with the exercise of its |
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functions relating to houses and other property within its Housing |
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(b) | interest and other charges in respect of which are required to be |
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carried to the debit of that account. |
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Power to obtain information |
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25 | A local housing authority in England must supply the Secretary of State with |
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such information as the Secretary of State may specify for the purposes of |
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enabling the Secretary of State to exercise functions under this Schedule. |
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26 | The Secretary of State may exercise the powers under paragraph 25 either |
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generally or in relation to a particular case. |
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27 | If a local housing authority fails to comply with paragraphs 25 and 26 before |
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the end of such period as the Secretary of State may specify, the Secretary of |
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State may exercise functions under this Schedule on the basis of such |
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assumptions and estimates as the Secretary of State thinks fit. |
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Determinations under this Schedule |
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28 | A determination under this Schedule may make different provision for |
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different cases or descriptions of case, including different provision— |
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(b) | for different local housing authorities, or |
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(c) | for different descriptions of local housing authority. |
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29 | Before making a determination under this Schedule that relates to all local |
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housing authorities or a description of local housing authority, the Secretary |
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of State must consult such representatives of local government and relevant |
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professional bodes as the Secretary of State thinks appropriate. |
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30 | Before making a determination under this Schedule relating to a particular |
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local housing authority, the Secretary of State must consult that local |
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31 | As soon as practicable after making a determination under this Schedule, the |
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Secretary of State must send a copy of the determination to the local housing |
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authority or authorities to which it relates. |
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32 | Section 87(4) to (7) (electronic communications) of the Local Government |
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and Housing Act 1989 applies to a determination under this Schedule as it |
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applies to a determination under Part 6 of that Act. |
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33 | In this Schedule “local housing authority” has the same meaning as in the |
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