Localism Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Localism Bill

Localism Bill
Part 1 — Local Government
Chapter 6 — Pay accountability
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Exercise of functions
(1)
The functions conferred on a relevant authority by this Chapter are not to be
the responsibility of an executive of the authority under executive
arrangements.
(2)
Section 101 of the Local Government Act 1972 (arrangements for discharge of
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functions by local authorities) does not apply to the function of passing a
resolution under this Chapter.
(3)
The function of a fire and rescue authority within section 26(1)(i) of passing a
resolution under this Chapter may not be delegated by the authority.
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Interpretation
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(1)
In this Chapter “relevant authority” means—
(a)
a county council,
(b)
a county borough council,
(c)
a district council,
(d)
a London borough council,
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(e)
the Common Council of the City of London in its capacity as a local
authority,
(f)
the Council of the Isles of Scilly,
(g)
the London Fire and Emergency Planning Authority,
(h)
a metropolitan county fire and rescue authority, or
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(i)
a fire and rescue authority constituted by a scheme under section 2 of
the Fire and Rescue Services Act 2004 or a scheme to which section 4 of
that Act applies.
(2)
In this Chapter “chief officer”, in relation to a relevant authority, means each of
the following (if capable of being an officer of the authority)—
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(a)
if the authority has made the arrangements specified in section 9HA(2)
of the Local Government Act 2000 (mayoral management
arrangements: mayor to be chief executive etc), the elected mayor of the
authority;
(b)
the head of its paid service designated under section 4(1) of the Local
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Government and Housing Act 1989;
(c)
its monitoring officer designated under section 5(1) of that Act;
(d)
a statutory chief officer mentioned in section 2(6) of that Act;
(e)
a non-statutory chief officer mentioned in section 2(7) of that Act;
(f)
a deputy chief officer mentioned in section 2(8) of that Act.
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(3)
In this Chapter “remuneration”, in relation to a chief officer and a relevant
authority, means—
(a)
the chief officer’s salary or, in the case of a chief officer engaged by the
authority under a contract for services, payments made by the
authority to the chief officer for those services,
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(b)
any bonuses payable by the authority to the chief officer,
(c)
any charges, fees or allowances payable by the authority to the chief
officer,
(d)
any benefits in kind to which the chief officer is entitled as a result of
the chief officer’s office or employment,
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Localism Bill
Part 1 — Local Government
Chapter 7 — Miscellaneous repeals
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(e)
any increase in or enhancement of the chief officer’s pension
entitlement where the increase or enhancement is as a result of a
resolution of the authority, and
(f)
any amounts payable by the authority to the chief officer on the chief
officer ceasing to hold office under or be employed by the authority,
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other than amounts that may be payable by virtue of any enactment.
(4)
In this Chapter “terms and conditions”, in relation to a chief officer and a
relevant authority, means the terms and conditions on which the chief officer
holds office under or is employed by the authority.
(5)
References in this Chapter to the remuneration of, or the other terms and
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conditions applying to, a chief officer include—
(a)
the remuneration that may be provided to, or the terms and conditions
that may apply to, that chief officer in the future, and
(b)
the remuneration that is to be provided to, or the terms and conditions
that are to apply to, chief officers of that kind that the authority may
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appoint in the future.
(6)
In this Chapter—
“enactment” includes an enactment comprised in subordinate legislation
(within the meaning of the Interpretation Act 1978);
“financial year” means the period of 12 months ending with 31st March in
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any year.
Chapter 7
Miscellaneous repeals
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Repeal of duties relating to promotion of democracy
Chapter 1 of Part 1 of the Local Democracy, Economic Development and
25
Construction Act 2009 (duties relating to promotion of democracy) is repealed.
28
Repeal of provisions about petitions to local authorities
Chapter 2 of Part 1 of the Local Democracy, Economic Development and
Construction Act 2009 (petitions to local authorities) is repealed.
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Schemes to encourage domestic waste reduction by payments and charges
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The following provisions are repealed—
(a)
section 71(1) of, and Schedule 5 to, the Climate Change Act 2008 (which
amend the Environmental Protection Act 1990 to enable waste
collection authorities to make waste reduction schemes, but which have
never been in force), and
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(b)
sections 71(2) and (3) and 72 to 75 of that Act (which provide for the
provisions mentioned in paragraph (a) to be piloted and then either
brought into force, with or without amendments, or repealed).

Localism Bill
Part 2 — EU fines
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Part 2
EU fines
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Power to require local or public authorities to make payments in respect of
certain EU financial sanctions
(1)
In this Part “EU financial sanction” means a lump sum or penalty payment (or
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both) imposed after the commencement of this Part by the Court of Justice of
the European Union under Article 260 of the Treaty on the Functioning of the
European Union.
(2)
A Minister of the Crown may require a local or public authority to make a
payment of an amount determined by the Minister in respect of any EU
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financial sanction imposed on the United Kingdom.
(3)
The requirement to make a payment under this Part must be imposed by an EU
financial sanction notice under section 32 given by the Minister to the authority
concerned after complying with the requirements of section 31.
(4)
The Secretary of State must publish (and may from time to time revise and
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republish) a statement of policy with respect to the imposition of requirements
to make payments under this Part and the determination of the amount of the
sums required to be paid.
(5)
In deciding how to exercise functions under this Part in relation to an EU
financial sanction imposed on the United Kingdom the Minister must have
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regard to the statement of policy most recently published at the time when the
EU financial sanction was imposed.
(6)
If an EU financial sanction notice is registered in accordance with rules of court
or any practice direction, it is enforceable in the same manner as an order of the
High Court.
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(7)
Any sums paid by a local or public authority under this Part are to be paid into the
Consolidated Fund.
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Warning notices
(1)
Before imposing a requirement on a local or public authority to make a
payment under this Part in respect of an EU financial sanction imposed on the
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United Kingdom, a Minister of the Crown must give a warning notice to the
authority and follow the procedures set out in that notice (subject to any
changes to those procedures made under subsection (5)).
(2)
A warning notice is a notice stating that the Minister, having regard to the
judgment of the Court of Justice of the European Union imposing the Article
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260 financial sanction, believes—
(a)
that acts of the authority may have caused or contributed to the
infraction of EU law for which the EU financial sanction was imposed,
and
(b)
that, if acts of the authority did cause or contribute to that infraction of
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EU law, it would be appropriate to consider requiring the authority to
make a payment under this Part in respect of that financial sanction.
(3)
The warning notice must also—

Localism Bill
Part 2 — EU fines
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(a)
set out the Minister’s reasons for making the statements mentioned in
subsection (2);
(b)
set out the Minister’s proposed criteria for determining—
(i)
whether the authority’s acts did cause or contribute to the
infraction of EU law concerned;
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(ii)
whether the authority should be required to make a payment in
respect of the EU financial sanction, and
(iii)
the amount of any payment the authority is to be required to
make;
(c)
set out the Minister’s proposed procedures for determining those
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matters (which must allow for representations to be made by the
authority);
(d)
invite the authority to submit representations to the Minister—
(i)
about the matters mentioned in subsection (2) and the reasons
given under paragraph (a) above;
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(ii)
about the matters mentioned in paragraphs (b), (c) and (e) of
this subsection;
(iii)
as to whether the authority’s acts did cause or contribute to the
infraction of EU law concerned, whether it should be required
to make a payment in respect of the EU financial sanction and
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the amount of any payment the authority is to be required to
make; and
(iv)
in response to any representations made by another local or
public authority with an interest in the outcome of the
determination of those matters (including representations
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made in relation to any other warning notice given in respect of
the same EU financial sanction); and
(e)
set out a timetable for allowing those representations to be made by the
authority and considered.
(4)
The warning notice may contain other such information as the Minister
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considers appropriate.
(5)
The Minister may, after considering any representations made by the authority
under subsection (3)(d)(ii) but before the matters mentioned in subsection
(3)(b) are determined, give the authority a notice stating any changes that the
Minister has decided to make to the criteria, procedures or timetable as
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originally set out in the warning notice under subsection (3)(b), (c) or (e).
(6)
A warning notice given to a local or public authority may be withdrawn at any
time before the matters mentioned in subsection (3)(b) are determined, but this
does not prevent a further warning notice being given to the authority in
relation to the same EU financial sanction.
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EU financial sanction notices
(1)
A Minister of the Crown may give an EU financial sanction notice to a local or
public authority in relation to an EU financial sanction imposed on the United
Kingdom only if the Minister is satisfied that acts of the authority caused or
contributed to the infraction of EU law for which that financial sanction was
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imposed.
(2)
An EU financial sanction notice must—
(a)
specify the amount required to be paid by the authority,

Localism Bill
Part 2 — EU fines
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(b)
specify the EU financial sanction to which the notice relates,
(c)
specify any act of the authority which is regarded as having caused or
contributed to the infraction of EU law for which that financial sanction
was imposed;
(d)
set out the Minister’s reasons—
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(i)
for requiring the authority to make a payment in respect of that
financial sanction, and
(ii)
for specifying the amount required to be paid,
(e)
specify how and to whom the payment must be made, and
(f)
specify the period within which the payment is required to be made.
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(3)
Subject to subsection (5), the amount specified in the notice must not exceed the
total amount of the EU financial sanction to which it relates.
(4)
Where the Minister is satisfied that acts of any person or body other than the
authority to whom the notice is addressed also caused or contributed to the
infraction of EU law concerned, the amount specified in the notice must not
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exceed the proportion of that total amount which the Minister considers fairly
reflects the authority’s share of the responsibility for that infraction.
(5)
In deciding—
(a)
whether to give the authority an EU financial sanction notice, and
(b)
if such a notice is to be given, the amount it is to be required to pay,
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the Minister must have regard to the effect on the authority’s finances of any
amount it may be required to pay.
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Meaning of “local or public authority”
(1)
In this Part “local or public authority” means—
(a)
a local authority specified in subsection (2); or
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(b)
a person or body designated under subsection (3) as a public authority
for the purposes of this Part.
(2)
The local authorities are—
(a)
a county council or district council in England or a London borough
council;
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(b)
the Greater London Authority; and
(c)
the Common Council of the City of London (in its capacity as a local
authority).
(3)
The Secretary of State may by order designate persons or bodies exercising
public functions in England as public authorities for the purposes of this Part
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(whether by specifying them or by prescribing descriptions of such persons or
bodies).
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Interpretation of Part: general
In this Part—
“act” includes omission;
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“EU financial sanction” has the meaning given by section 30(1);
“EU financial sanction notice” means a notice under section 32;

Localism Bill
Part 3 — Non-domestic rates etc
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“infraction of EU law”, in relation to an EU financial sanction imposed on
the United Kingdom, means a failure by the United Kingdom to
comply with an obligation under the EU treaties;
“local or public authority” has the meaning given in section 33(1);
“Minister of the Crown” has the same meaning as in the Ministers of the
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Crown Act 1975.
Part 3
Non-domestic rates etc
Business rate supplements
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Ballot for imposition and certain variations of a business rate supplement
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(1)
The Business Rate Supplements Act 2009 (“the 2009 Act”) is amended as
follows.
(2)
In section 4(c) (condition for imposing a BRS) for “where there is to be a ballot
on the imposition of the BRS, the ballot” substitute “a ballot”.
(3)
In section 7 (holding of ballot) omit subsections (1), (2) and (5) (provision about
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the circumstances in which a ballot on the imposition of a BRS is to be held).
(4)
In section 8(1) (meaning of approve by ballot) for “If a ballot on the imposition
of a BRS is held, the imposition of the BRS” substitute “The imposition of a
BRS”.
(5)
In section 10 (variations)—
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(a)
in subsection (2)(c) (condition for varying a BRS) omit the words from
the beginning to “subsection (7),”, and
(b)
omit subsections (7) to (9) (provision about the circumstances in which
a ballot on a proposal to vary a BRS is to be held).
(6)
In Schedule 1 (information to be included in a prospectus for a BRS) for
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paragraphs 19 and 20 (information required in relation to a ballot on the
imposition of the BRS) substitute—
“19
In an initial prospectus, a statement that there is to be a ballot on the
imposition of the BRS.
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In a final prospectus—
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(a)
a statement that a ballot has been held on the imposition of
the BRS;
(b)
the results of the ballot, including in particular—
(i)
the total number of votes cast,
(ii)
the number of persons who voted in favour of the
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imposition of the BRS,
(iii)
the number of persons who voted against its
imposition,
(iv)
the aggregate of the rateable values of each
hereditament in respect of which a person voted in
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the ballot,

Localism Bill
Part 3 — Non-domestic rates etc
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(v)
the aggregate of the rateable values of each
hereditament in respect of which a person voted in
favour of the imposition of the BRS, and
(vi)
the aggregate of the rateable values of each
hereditament in respect of which a person voted
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against its imposition.”
(7)
The amendments made by this section do not apply in relation to a BRS
imposed before the date this section comes into force (whether or not the
chargeable period of the BRS has begun before that date).
(8)
In this section—
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“BRS” means a business rate supplement (see section 1 of the 2009 Act);
“chargeable period” has the meaning given by section 11(6) of that Act.
Non-domestic rates
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Non-domestic rates: discretionary relief
(1)
Section 47 of the Local Government Finance Act 1988 (non-domestic rates:
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discretionary relief) is amended as follows.
(2)
In subsection (1) (eligibility for relief) for the words from “the first and second
conditions” to “are fulfilled” substitute “the condition mentioned in subsection
(3) below is fulfilled”.
(3)
Omit subsection (2) (the first eligibility condition).
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(4)
In subsection (3) (the second eligibility condition) omit “second”.
(5)
Omit subsections (3A) to (3D) (the other eligibility conditions).
(6)
After subsection (5) insert—
“(5A)
So far as a decision under subsection (3) above would have effect where
none of section 43(6) above, section 43(6B) above and subsection (5B)
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below applies, the billing authority may make the decision only if it is
satisfied that it would be reasonable for it to do so, having regard to the
interests of persons liable to pay council tax set by it.
(5B)
This subsection applies on the chargeable day if—
(a)
all or part of the hereditament is occupied for the purposes of
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one or more institutions or other organisations—
(i)
none of which is established or conducted for profit, and
(ii)
each of whose main objects are charitable or are
otherwise philanthropic or religious or concerned with
education, social welfare, science, literature or the fine
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arts, or
(b)
the hereditament—
(i)
is wholly or mainly used for purposes of recreation, and
(ii)
all or part of it is occupied for the purposes of a club,
society or other organisation not established or
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conducted for profit.