Localism Bill

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Localism Bill

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
251

City of London (Various Powers) Act 1957 (5 & 6 Eliz
2 c x).
(7)
This section is subject to regulations under section 52ZQ below.
52ZH
Effect of referendum
(1)
The billing authority must inform the Secretary of State of the result
5
of the referendum.
(2)
Subsection (3) applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is
approved by a majority of persons voting in the referendum.
(3)
The authority’s calculations from which that amount was derived
10
continue to have effect for that year for the purposes of this Act.
(4)
Subsection (5) applies if the result is that the billing authority’s
relevant basic amount of council tax for the financial year is not
approved by a majority of persons voting in the referendum.
(5)
The substitute calculations made in relation to the year under section
15
52ZF above have effect in relation to the authority and the financial
year.
52ZI
Failure to hold referendum
(1)
If the billing authority fails to hold a referendum in accordance with
this Chapter, the substitute calculations made in relation to the year
20
under section 52ZF above have effect in relation to the authority and
the financial year.
(2)
If the authority has not made those substitute calculations, during
the period of restriction the authority has no power to transfer any
amount from its collection fund to its general fund; and sections 97
25
and 98 of the 1988 Act have effect accordingly.
(3)
In subsection (2) “the period of restriction” means the period—
(a)
beginning with the latest date on which the referendum
could have been held, and
(b)
ending with the date (if any) when the billing authority
30
makes the substitute calculations.
Excessive increase in council tax by precepting authority
52ZJ
Major precepting authority’s duty to make substitute calculations
(1)
The major precepting authority must make substitute calculations
for the financial year in compliance with this section.
35
(2)
Substitute calculations made for a financial year by a major
precepting authority other than the Greater London Authority
comply with this section if—
(a)
they are made in accordance with sections 42A, 42B and 45 to
48 above,
40
(b)
the relevant basic amount of council tax for the year
produced by the calculations is not excessive by reference to
the principles determined by the Secretary of State under
section 52ZC above for the year, and

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
252

(c)
they are made in accordance with this section.
(3)
Substitute calculations made for a financial year by the Greater
London Authority comply with this section if—
(a)
they are made by applying the relevant London provisions
and sections 47 and 48 above to the Authority’s substitute
5
consolidated council tax requirement for the year, and
(b)
they are made in accordance with this section.
(4)
In making the substitute calculations, a major precepting authority
other than the Greater London Authority must—
(a)
use the amount determined in the previous calculation under
10
section 42A(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 police grant, and
(b)
use the amount determined in the previous calculation for
15
item T in section 42B(1) above or (where applicable) item TP
in section 45(3) above.
(5)
For the purposes of subsection (2) above the authority may treat any
amount determined in the previous calculation under section 42A(3)
above as increased by the amount of any sum which—
20
(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.
(6)
In making the substitute calculations, the Greater London Authority
25
must use any amount determined in the previous calculations for
item T in section 88(2) of the Greater London Authority Act 1999 or
for item TP2 in section 89(4) of that Act.
(7)
In this Chapter—
“the relevant London provisions” means sections 88 and (where
30
applicable) 89 of the Greater London Authority Act 1999;
“the Authority’s substitute consolidated council tax
requirement”, in relation to a financial year, means the
Authority’s substitute consolidated council tax
requirement—
35
(a)
agreed under Schedule 6 to the Greater London
Authority Act 1999, or
(b)
set out in its substitute consolidated budget as agreed
under that Schedule,
as the case may be.
40
52ZK
Major precepting authority’s duty to notify appropriate billing
authorities
(1)
The major precepting authority must notify each appropriate billing
authority—
(a)
that its relevant basic amount of council tax for a financial
45
year is excessive, and
(b)
that the billing authority is required to hold a referendum in
accordance with this Chapter.

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
253

(2)
A notification under this section must include a precept in
accordance with the following provisions; but that precept does not
have effect for the purposes of Chapters 3 and 4 above except in
accordance with sections 52ZO and 52ZP below.
(3)
A precept issued to a billing authority under this section by a major
5
precepting authority other than the Greater London Authority must
state—
(a)
the amount which, in relation to the year and each category
of dwellings in the billing authority’s area, has been
calculated by the precepting authority in accordance with
10
sections 42A, 42B and 45 to 47 above as applied by section
52ZJ above, and
(b)
the amount which has been calculated by the precepting
authority in accordance with section 48 above as applied by
section 52ZJ above as the amount payable by the billing
15
authority for the year.
(4)
Dwellings fall within different categories for the purposes of
subsection (3) according as different calculations have been made in
relation to them as mentioned in paragraph (a) of that subsection.
(5)
A precept issued to a billing authority under this section by the
20
Greater London Authority must state—
(a)
the amount which, in relation to the year and each category
of dwellings in the billing authority’s area, has been
calculated by applying, in accordance with section 52ZJ
above, the relevant London provisions and section 47 above
25
to the Authority’s substitute consolidated council tax
requirement, and
(b)
the amount which has been calculated by the Authority in
accordance with section 48 above as applied by section 52ZJ
above as the amount payable by the billing authority for the
30
year.
(6)
Dwellings fall within different categories for the purposes of
subsection (5) according as different calculations have been made in
relation to them as mentioned in paragraph (a) of that subsection.
(7)
A major precepting authority must assume for the purposes of
35
subsections (3) and (5) above that each of the valuation bands is
shown in the billing authority’s valuation list as applicable to one or
more dwellings situated in its area or (as the case may be) each part
of its area as respects which different calculations have been made.
(8)
The Secretary of State must by regulations prescribe a date by which
40
a notification under this section must be made.
(9)
This section does not require the Greater London Authority to notify
a billing authority to which this subsection applies unless the
Authority’s unadjusted relevant basic amount of council tax for the
year is excessive.
45
(10)
Subsection (9) applies to a billing authority if the special item within
the meaning of section 89(2) of the Greater London Authority Act
1999 does not apply to any part of the authority’s area.

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
254

52ZL
Local precepting authority’s duty to make substitute calculations
(1)
The local precepting authority must make substitute calculations for
the financial year in compliance with this section.
(2)
Substitute calculations for a financial year comply with this section
if—
5
(a)
they are made in accordance with section 49A above, and
(b)
the relevant basic amount of council tax produced by
applying section 52ZX below to the calculations is not
excessive by reference to the principles determined by the
Secretary of State under section 52ZC above for the year.
10
52ZM
Local precepting authority’s duty to notify appropriate billing
authority
(1)
The local precepting authority must notify its appropriate billing
authority—
(a)
that its relevant basic amount of council tax for a financial
15
year is excessive, and
(b)
that the billing authority is required to hold a referendum in
accordance with this Chapter.
(2)
A notification under this section must include a precept in
accordance with subsection (3); but that precept does not have effect
20
for the purposes of Chapters 3 and 4 above except in accordance with
sections 52ZO and 52ZP below.
(3)
The precept must state, as the amount payable by the billing
authority for the year, the amount which has been calculated by the
local precepting authority under section 49A above as applied by
25
section 52ZL above.
(4)
The Secretary of State must by regulations prescribe a date by which
the notification must be made.
52ZN
Arrangements for referendum
(1)
A billing authority that is notified under section 52ZK or 52ZM
30
above must make arrangements to hold a referendum in relation to
the precepting authority’s relevant basic amount of council tax for
the financial year in accordance with this section.
(2)
Where the referendum is one of two or more referendums required
to be held in respect of the same calculation, it is to be held on—
35
(a)
the first Thursday in May in the financial year, or
(b)
such other date as the Secretary of State may specify by order.
(3)
Otherwise the referendum is to be held on a date decided by the
billing authority; but this is subject to subsection (4).
(4)
That date must be not later than—
40
(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.
(5)
An order under subsection (2) or (4) must be made not later than—

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
255

(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
years.
5
(6)
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 that
falls within the precepting authority’s area, and
10
(b)
are registered in the register of local government electors at
an address that is within both—
(i)
the precepting authority’s area, and
(ii)
the billing authority’s area.
(7)
Subject to subsection (8), the billing authority may recover from the
15
precepting authority the expenses that are incurred by the billing
authority in connection with the referendum.
(8)
The Secretary of State may by regulations make provision for cases
in which—
(a)
subsection (7) does not apply, or
20
(b)
that subsection applies with modifications.
(9)
In this section—
“electoral area” means—
(a)
in relation to a district council, a London borough
council or the Common Council of the City of
25
London, a ward;
(b)
in relation to a county council, an electoral division;
(c)
in relation to the Council of the Isles of Scilly, a parish;
“register of local government electors” means—
(a)
the register of local government electors kept in
30
accordance with the provisions of the Representation
of the People Acts, or
(b)
in relation to the Common Council of the City of
London, a ward list published under section 7 of the
City of London (Various Powers) Act 1957 (5 & 6 Eliz
35
2 c x).
(10)
This section is subject to regulations under section 52ZQ below.
52ZO
Effect of referendum
(1)
The precepting authority must inform the Secretary of State of the
result of the referendum or (as the case may be) each of them.
40
(2)
Subsection (3) applies if—
(a)
in a case where one referendum is held in respect of the
precepting authority’s relevant basic amount of council tax
for the financial year, that amount is approved by a majority
of persons voting in the referendum, or
45

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
256

(b)
in a case where two or more referendums are held in respect
of that amount, that amount is approved by a majority of
persons voting in all of those referendums taken together.
(3)
The precepting authority’s calculations that include that amount or
(as the case may be) from which that amount was derived continue
5
to have effect for the year for the purposes of this Act.
(4)
Subsections (5) and (6) below applies if—
(a)
in a case where one referendum is held in respect of the
precepting authority’s relevant basic amount of council tax
for a financial year, that amount is not approved by a
10
majority of persons voting in the referendum, or
(b)
in a case where two or more referendums are held in respect
of that amount, that amount is not approved by a majority of
persons voting in all of those referendums taken together.
(5)
Any precept issued to a billing authority under section 52ZK or
15
52ZM above as part of a notification that triggered the referendum
has effect as a precept issued to that billing authority for the year for
the purposes of Chapter 3 above.
(6)
Where the precept was issued to a billing authority by a local
precepting authority under section 52ZM above, section 36A above
20
has effect in relation to the billing authority as if it required the
authority to make calculations in substitution on the basis of the
precept (rather than permitting it to do so).
(7)
In the case of a major precepting authority other than the Greater
London Authority, section 30 above has effect by virtue of subsection
25
(5) in relation to that precept as if—
(a)
references to amounts calculated under Chapter 4 above
were to amounts calculated as mentioned in section 52ZJ(2)
above, and
(b)
the reference to the amount stated in accordance with section
30
40 above were to the amount stated in accordance with
52ZK(3)(b) above.
(8)
In the case of the Greater London Authority, section 30 above has
effect by virtue of subsection (5) in relation to that precept as if—
(a)
references that are to be read as amounts calculated under
35
Chapter 1 of Part 3 of the Greater London Authority Act 1999
were to amounts calculated as mentioned in section 52ZJ(3)
above, and
(b)
the reference to the amount stated in accordance with section
40 above were to the amount stated in accordance with
40
52ZK(5)(b) above.
(9)
If the precepting authority has already issued a precept for the
financial year (originally or by way of substitute) to the billing
authority—
(a)
subsections (3) and (4) of section 42 above apply to the
45
precept within subsection (5) above as they apply to a precept
issued in substitution under that section, but
(b)
the references in those subsections to the amount of the new
precept are to be read as references to the amount stated in

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
257

the precept within subsection (5) in accordance with section
52ZK(3)(b) or (5)(b).
52ZP
Failure to hold referendum
(1)
This section applies if a billing authority that is required to be
notified by a precepting authority under section 52ZK or 52ZM fails
5
to hold a referendum in accordance with this Chapter.
(2)
Subsections (3) to (6) apply if the precepting authority has failed to
notify the billing authority in accordance with section 52ZK or 52ZM.
(3)
The precepting authority must issue a precept for the year to the
billing authority in accordance with that section; and such a precept
10
has effect for the purposes of Chapter 3 above.
(4)
During the period of restriction no billing authority to which the
precepting authority has power to issue a precept has power to pay
anything in respect of a precept issued by the precepting authority
for the year.
15
(5)
In subsection (4) “the period of restriction” means the period—
(a)
beginning with the date on which the referendum would
have been required to be held or (as the case may be) the
latest date on which it could have been held if the notification
had been made, and
20
(b)
ending with the date (if any) when the precepting authority
complies with subsection (3).
(6)
Where a precept under subsection (3) is issued to a billing authority
by a local precepting authority, section 37 above has effect in relation
to the billing authority as if it required the authority to make
25
calculations in substitution on the basis of the precept (rather than
permitting it to do so).
(7)
If the precepting authority has notified the billing authority in
accordance with section 52ZK or 52ZM, the precept issued to the
billing authority under section 52ZK or 52ZM as part of the
30
notification has effect as a precept issued to that billing authority for
the year for the purposes of Chapter 3 above.
(8)
Where the precept was issued to a billing authority by a local
precepting authority under section 52ZM above, section 37 above
has effect in relation to the billing authority as if it required the
35
authority to make calculations in substitution on the basis of the
precept (rather than permitting it to do so).
(9)
Subsections (7) to (9) of section 52ZO above apply to a precept within
subsection (3) or (7) above as they apply to a precept within
subsection (5) of that section.
40
Regulations about referendums
52ZQ
Regulations about referendums
(1)
The Secretary of State may by regulations make provision as to the
conduct of referendums under this Chapter.
(2)
The Secretary of State may by regulations make provision for—
45