Localism Bill

House of Commons

Session 2010 - 11
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Localism Bill

Localism Bill
Schedule 4 — Conduct of local government members
Part 2 — Provision supplementary to Part 1
244

Part 2
Provision supplementary to Part 1
Codes of conduct under the Local Government Act 2000
55    (1)
A code of conduct adopted by a relevant authority (within the meaning of
this Part of this Act) ceases to have effect.
5
      (2)
An undertaking to comply with a code of conduct given by a person under
section 52 of the Local Government Act 2000 or as part of a declaration of
acceptance of office in a form prescribed by order under section 83 of the
Local Government Act 1972 ceases to have effect when the code ceases to
have effect.
10
      (3)
In this paragraph “code of conduct” means a code of conduct under section
51 of the Local Government Act 2000 or a model code of conduct issued by
order under section 50(1) of that Act.
Power to make provision in connection with the abolition of Standards Board for England
56    (1)
The Secretary of State may by order make provision in connection with the
15
abolition of the Standards Board for England (“the Board”).
      (2)
An order under this paragraph may make provision that has effect on or
before the abolition date.
      (3)
An order under this paragraph may, in particular, make provision about the
property, rights and liabilities of the Board (including rights and liabilities
20
relating to contracts of employment).
      (4)
This includes—
(a)
provision for the transfer of property, rights and liabilities (including
to the Secretary of State), and
(b)
provision for the extinguishment of rights and liabilities.
25
      (5)
An order under this paragraph that makes provision for the transfer of
property, rights and liabilities may—
(a)
make provision for certificates issued by the Secretary of State to be
conclusive evidence that property has been transferred;
(b)
make provision about the transfer of property, rights and liabilities
30
that could not otherwise be transferred;
(c)
make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of or in
relation to the Board in respect of anything transferred;
(d)
make provision for references to the Board in an instrument or
35
document in respect of anything transferred to be treated as
references to the transferee.
      (6)
An order under this paragraph may—
(a)
make provision about the continuing effect of things done by or in
relation to the Board before such date as the order may specify;
40
(b)
make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of or in
relation to the Board on such a date;

Localism Bill
Schedule 4 — Conduct of local government members
Part 2 — Provision supplementary to Part 1
245

(c)
make provision for references to the Board in an instrument or
document to be treated on and after such a date as references to such
person as the order may specify;
(d)
make provision for the payment of compensation by the Secretary of State to
persons affected by the provisions it makes about the property, rights and
5
liabilities of the Board.
Power to give directions in connection with the abolition of Standards Board for England
57    (1)
The Secretary of State may direct the Board to take such steps as the
Secretary of State may specify in connection with the abolition of the Board.
      (2)
The Secretary of State may, in particular give directions to the Board about
10
information held by the Board, including—
(a)
directions requiring information to be transferred to another person
(including to the Secretary of State);
(b)
directions requiring information to be destroyed or made
inaccessible.
15
      (3)
The Secretary of State may make available to the Board such facilities as the
Board may reasonably require for exercising its functions by virtue of this
Part of this Schedule.
      (4)
The Secretary of State may exercise a function of the Board for the purposes
of taking steps in connection with its abolition (including functions by virtue
20
of an order under paragraph 56).
      (5)
Sub-paragraph (4) does not prevent the exercise of the function by the Board.
      (6)
In the case of a duty of the Board, sub-paragraph (4) permits the Secretary of
State to comply with that duty on behalf of the Board but does not oblige the
Secretary of State to do so.
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Final statement of accounts
58    (1)
As soon as is reasonably practicable after the abolition date, the Secretary of
State must prepare—
(a)
a statement of the accounts of the Board for the last financial year to
end before the abolition date, and
30
(b)
a statement of the accounts of the Board for the period (if any)
beginning immediately before the end of that financial year and
ending immediately before the abolition date.
      (2)
The Secretary of State must, as soon as is reasonably practicable after
preparing a statement under this paragraph, send a copy of it to the
35
Comptroller and Auditor General.
      (3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on the statement, and
(b)
lay a copy of the statement and the report before each House of
Parliament.
40
      (4)
Sub-paragraph (1)(a) does not apply if the Board has already sent a copy of
its statement of accounts for the year to the Comptroller and Auditor
General.

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
246

      (5)
In such a case the repeal of paragraph 13(4B) of Schedule 4 to the Local
Government Act 2000 does not remove the obligation of the Comptroller
and Auditor General to take the steps specified in that provision in relation
to the statement of accounts if the Comptroller has not already done so.
Disclosure of information
5
59    (1)
Section 63 of the Local Government Act 2000 applies in relation to
information obtained by a person who is exercising a function of the Board
by virtue of paragraph 57(4) as it applies to information obtained by an
ethical standards officer.
      (2)
That section has effect (in relation to information to which it applies apart
10
from sub-paragraph (1) as well as to information to which it applies by
virtue of that sub-paragraph) as if it permitted the disclosure of information
for the purposes of the abolition of the Board.
      (3)
The repeal by Part 1 of that section, or of any provision by virtue of which it
is applied to information obtained other than by ethical standards officers,
15
does not affect its continuing effect in relation to information to which it
applied before its repeal (including by virtue of this paragraph).
Interpretation
60
In this Part of this Schedule—
“the abolition date” means the date on which paragraphs 16 and 52
20
(repeal of section 57 of and Schedule 4 to the Local Government Act
2000) come fully into force;
“the Board” has the meaning given by paragraph 56(1);
“financial year” means the period of 12 months ending with 31st March
in any year.
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Schedule 5
Section 56

New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992

This is the Chapter referred to in section 56(1)—
“Chapter 4ZA
Referendums relating to council tax increases
30
Interpretation of Chapter
52ZA
Interpretation of Chapter
(1)
In this Chapter—
(a)
a reference to a billing authority is to a billing authority in
England,
35
(b)
a reference to a major precepting authority is to a major
precepting authority in England, and
(c)
a reference to a local precepting authority is to a local
precepting authority in England.

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Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
247

(2)
In this Chapter—
(a)
a reference to an authority is to an authority of a kind
mentioned in subsection (1) above;
(b)
a reference to a precepting authority is to an authority of a
kind mentioned in subsection (1)(b) or (c) above.
5
(3)
Section 52ZX defines references in this Chapter to an authority’s
relevant basic amount of council tax.
Determination of whether increase excessive
52ZB
Duty to determine whether council tax excessive
(1)
A billing authority must determine whether its relevant basic
10
amount of council tax for a financial year is excessive.
(2)
Sections 52ZF to 52ZI (duty to hold referendum etc in case of
excessive council tax increase by billing authority) apply where the
amount mentioned in subsection (1) is excessive.
(3)
A major precepting authority must determine whether its relevant
15
basic amount of council tax for a financial year is excessive.
(4)
Sections 52ZJ and 52ZK and 52ZN to 52ZP (duty to hold referendum
etc in case of excessive council tax increase by major precepting
authority) apply where an amount mentioned in subsection (3) is
excessive.
20
(5)
A local precepting authority must determine whether its relevant
basic amount of council tax for a financial year is excessive.
(6)
Sections 52ZL to 52ZP (duty to hold referendum etc in case of
excessive council tax increase by local precepting authority) apply
where the amount mentioned in subsection (5) is excessive.
25
(7)
A determination under this section for a financial year must be made
as soon as is reasonably practicable after principles under section
52ZC for that year are approved by a resolution of the House of
Commons under section 52ZD.
52ZC
Determination of whether increase is excessive
30
(1)
The question whether an authority’s relevant basic amount of
council tax for a financial year (“the year under consideration”) is
excessive must be decided in accordance with a set of principles
determined by the Secretary of State for the year.
(2)
A set of principles—
35
(a)
may contain one principle or two or more principles;
(b)
must constitute or include a comparison falling within
subsection (3).
(3)
A comparison falls within this subsection if it is between—
(a)
the authority’s relevant basic amount of council tax for the
40
year under consideration, and
(b)
the authority’s relevant basic amount of council tax for the
financial year immediately preceding the year under
consideration.

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
248

(4)
If for the purposes of this section the Secretary of State determines
categories of authority for the year under consideration—
(a)
any principles determined for the year must be such that the
same set is determined for all authorities (if more than one)
falling within the same category;
5
(b)
as regards an authority which does not fall within any of the
categories, the authority’s relevant basic amount of council
tax for the year is not capable of being excessive for the
purposes of this Chapter.
(5)
If the Secretary of State does not determine such categories, any
10
principles determined for the year under consideration must be such
that the same set is determined for all authorities.
(6)
A principle that applies to the Greater London Authority and that
constitutes or includes a comparison falling within subsection (3)
may only provide for—
15
(a)
a comparison between unadjusted relevant basic amounts of
council tax,
(b)
a comparison between adjusted relevant basic amounts of
council tax, or
(c)
a comparison within paragraph (a) and a comparison within
20
paragraph (b).
(7)
In determining categories of authorities for the year under
consideration the Secretary of State must take into account any
information that the Secretary of State thinks is relevant.
52ZD
Approval of principles
25
(1)
The principles for a financial year must be set out in a report which
must be laid before the House of Commons.
(2)
If a report for a financial year is not laid before the specified date or,
if so laid, is not approved by resolution of the House of Commons on
or before the specified date—
30
(a)
no principles have effect for that year, and
(b)
accordingly, no authority’s relevant basic amount of council
tax for the year is capable of being excessive for the purposes
of this Chapter.
(3)
If the Secretary of State does not propose to determine a set of
35
principles for a financial year, the Secretary of State must lay a report
before the House of Commons before the specified date giving the
Secretary of State’s reasons for not doing so.
(4)
In this section “the specified date”, in relation to a financial year,
means the date on which the local government finance report for the
40
year under section 78A of the 1988 Act is approved by resolution of
the House of Commons.
52ZE
Alternative notional amounts
(1)
The Secretary of State may make a report specifying an alternative
notional amount in relation to any year under consideration and any
45
authority.

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Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
249

(2)
An alternative notional amount is an amount which the Secretary of
State thinks should be used as the basis of any comparison in
applying section 52ZC in place of the authority’s relevant basic
amount of council tax for the preceding year.
(3)
A report under this section—
5
(a)
may relate to two or more authorities;
(b)
may be amended by a subsequent report under this section;
(c)
must contain such explanation as the Secretary of State thinks
desirable of the need for the calculation of the alternative
notional amount and the method for that calculation;
10
(d)
must be laid before the House of Commons.
(4)
Subsection (5) applies if a report under this section for a financial
year is approved by resolution of the House of Commons on or
before the date on which the report under section 52ZD for that year
is approved by resolution of the House of Commons.
15
(5)
Section 52ZC above has effect, as regards the year under
consideration and any authority to which the report relates, as if the
reference in subsection (3) of that section to the authority’s relevant
basic amount of council tax for the financial year immediately
preceding the year under consideration were a reference to the
20
alternative notional amount for that year.
(6)
In this section “year under consideration” has the same meaning as
in section 52ZC.
Excessive increase in council tax by billing authority
52ZF
Billing authority’s duty to make substitute calculations
25
(1)
The billing authority must make substitute calculations for the
financial year in compliance with this section; but those calculations
do not have effect for the purposes of Chapter 3 above except in
accordance with sections 52ZH and 52ZI below.
(2)
Substitute calculations for a financial year comply with this section
30
if—
(a)
they are made in accordance with sections 31A, 31B and 34 to
36 above, ignoring section 31A(11) above for this purpose,
(b)
the relevant basic amount of council tax produced by
applying section 52ZX below to the calculations is not
35
excessive by reference to the principles determined by the
Secretary of State under section 52ZC above for the year, and
(c)
they are made in accordance with this section.
(3)
In making the substitute calculations, the authority must—
(a)
use the amount determined in the previous calculation for
40
the year under section 31A(3) above so far as relating to
amounts which the authority estimates it will accrue in the
year in respect of redistributed non-domestic rates, revenue
support grant, additional grant, special grant or (in the case
of the Common Council only) police grant, and
45

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
250

(b)
use the amount determined in the previous calculation for
the year for item T in section 31B(1) above and (where
applicable) item TP in section 34(3) above.
(4)
For the purposes of subsection (2) above the authority may treat any
amount determined in the previous calculation under section 31A(3)
5
above as increased by the amount of any sum which—
(a)
it estimates it will accrue in the year in respect of additional
grant, and
(b)
was not taken into account by it in making the previous
calculation.
10
52ZG
Arrangements for referendum
(1)
The billing authority must make arrangements to hold a referendum
in relation to the authority’s relevant basic amount of council tax for
the financial year in accordance with this section.
(2)
Subject as follows, the referendum is to be held on a date decided by
15
the billing authority.
(3)
That date must be not later than—
(a)
the first Thursday in May in the financial year, or
(b)
such other date in that year as the Secretary of State may
specify by order.
20
(4)
An order under subsection (3) must be made not later than—
(a)
1st February in the financial year preceding the year
mentioned in paragraph (b) of that subsection, or
(b)
in the case of an order affecting more than one financial year,
1st February in the financial year preceding the first of those
25
years.
(5)
The persons entitled to vote in the referendum are those who, on the
day of the referendum—
(a)
would be entitled to vote as electors at an election for
members for an electoral area of the billing authority, and
30
(b)
are registered in the register of local government electors at
an address within the billing authority’s area.
(6)
In this section—
“electoral area” means—
(a)
where the billing authority is a district council, a
35
London borough council or the Common Council of
the City of London, a ward;
(b)
where the billing authority is a county council, an
electoral division;
(c)
where the billing authority is the Council of the Isles
40
of Scilly, a parish;
“register of local government electors” means—
(a)
the register of local government electors kept in
accordance with the provisions of the Representation
of the People Acts, or
45
(b)
in relation to the Common Council of the City of
London, a ward list published under section 7 of the