Localism Bill

House of Commons

Session 2010 - 11
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Localism Bill

Localism Bill
Schedule 5 — New Chapter 4ZA of Part 1 of the Local Government Finance Act 1992
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(a)
the combination of polls at two or more referendums under
this Chapter;
(b)
the combination of polls at referendums under this Chapter
with polls at any elections or any referendums held otherwise
than under this Chapter.
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(3)
Regulations under this section may apply or incorporate, with or
without modifications or exceptions, any provision of any enactment
(whenever passed or made) relating to elections or referendums.
(4)
The provision which may be made under this section includes, in
particular, provision—
10
(a)
as to the question to be asked in a referendum;
(b)
as to the publicity to be given in connection with a
referendum (including the publicity to be given with respect
to the consequences of the referendum and its result);
(c)
about the limitation of expenditure in connection with a
15
referendum;
(d)
as to the conduct of the authority, members of the authority
and officers of the authority in relation to a referendum
(including provision modifying the effect of section 2
(prohibition of political publicity) of the Local Government
20
Act 1986);
(e)
as to when, where and how voting in a referendum is to take
place;
(f)
as to how the votes cast in a referendum are to be counted;
(g)
for disregarding alterations in a register of electors;
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(h)
for the questioning of the result of a referendum by a court or
tribunal.
(5)
But where the regulations apply or incorporate (with or without
modifications) any provision that creates an offence, the regulations
may not impose a penalty greater than is provided for in respect of
30
that offence.
(6)
Before making any regulations under this section, the Secretary of
State must consult the Electoral Commission.
(7)
In this section “enactment” includes an enactment contained in a
local Act or comprised in subordinate legislation (within the
35
meaning of the Interpretation Act 1978).
Directions that referendum provisions are not to apply
52ZR
Direction that referendum provisions are not to apply
(1)
The Secretary of State may give a direction under this section to an
authority other than the Greater London Authority if it appears to
40
the Secretary of State that, unless the authority’s council tax
calculations are such as to produce a relevant basic amount of
council tax that is excessive by reference to the principles determined
by the Secretary of State for the year—
(a)
the authority will be unable to discharge its functions in an
45
effective manner, or
(b)
the authority will be unable to meet its financial obligations.

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(2)
The Secretary of State may give a direction under this section to the
Greater London Authority if it appears to the Secretary of State that,
unless the Authority’s council tax calculations are such as to produce
a relevant basic amount of council tax that is excessive by reference
to the principles determined by the Secretary of State for the year—
5
(a)
one or more of the Authority’s constituent bodies will be
unable to discharge its functions in an effective manner, or
(b)
one or more of those bodies will be unable to meet its
financial obligations.
(3)
The effect of a direction under this section is that the referendum
10
provisions do not apply for the financial year to, and no further step
is to be taken for the financial year under the referendum provisions
by—
(a)
the authority to whom it is made, and
(b)
where that authority is a precepting authority, a billing
15
authority as a result of any notification under section 52ZK or
52ZM above by the precepting authority.
(4)
A direction under this section may be given to an authority other
than the Greater London Authority—
(a)
whether or not the authority has carried out its council tax
20
calculations for the financial year, and
(b)
in the case of a billing authority, whether or not the authority
has set an amount of council tax for the financial year under
section 30 above.
(5)
A direction under this section may be given to the Greater London
25
Authority only if it has carried out its council tax calculations for the
financial year.
(6)
But a direction under this section may not be given to an authority
if—
(a)
a referendum has been held relating to the authority’s
30
relevant basic amount of council tax for the financial year,
and
(b)
that amount has not been approved as mentioned in section
52ZH above (where the authority is a billing authority) or
section 52ZO above (where the authority is a precepting
35
authority).
(7)
The following sections make further provision about the effect of a
direction under this section—
(a)
for a billing authority: section 52ZS below;
(b)
for a major precepting authority other than the Greater
40
London Authority: section 52ZT below;
(c)
for the Greater London Authority: section 52ZU below;
(d)
for a local precepting authority: section 52ZV below.
(8)
In this Part—
“constituent body” means—
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(a)
the Mayor of London,
(b)
the London Assembly, or

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(c)
a functional body within the meaning of section 424 of
the Greater London Authority Act 1999;
“council tax calculations” means—
(a)
in relation to a billing authority, calculations under
sections 31A, 31B and 34 to 36 above,
5
(b)
in relation to a major precepting authority other than
the Greater London Authority, calculations under
sections 42A, 42B and 45 to 48 above,
(c)
in relation to the Greater London Authority,
calculations under sections 85 to 90 of the Greater
10
London Authority Act 1999 and sections 47 and 48
above, and
(d)
in the case of a local precepting authority, calculations
under section 49A above;
“the referendum provisions” means—
15
(a)
where the direction is given to a billing authority,
sections 52ZB and 52ZF to 52ZI above,
(b)
where the direction is given to a major precepting
authority, sections 52ZB, 52ZJ, 52ZK and 52ZN to
52ZP above, and
20
(c)
where the direction is given to a local precepting
authority, sections 52ZB and 52ZL to 52ZP above.
52ZS
Directions to billing authorities
(1)
This section applies if the Secretary of State gives a direction under
section 52ZR above to a billing authority.
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(2)
The direction must state the amount that is to be the amount of the
billing authority’s council tax requirement for the financial year.
(3)
If the direction is given before the billing authority has carried out its
council tax calculations for the financial year, that amount is to be
treated for all purposes as the amount calculated by the billing
30
authority under section 31A above.
(4)
If the direction is given after the billing authority has carried out its
council tax calculations for the financial year (whether or not it has
set an amount of council tax for the year)—
(a)
those calculations are of no effect, and
35
(b)
the authority must make substitute calculations for the year
in accordance with section 36A above.
(5)
For the purposes of those and any subsequent substitute calculations
and the application of Chapter 3 above to them—
(a)
the amount stated in the direction as the amount of the billing
40
authority’s council tax requirement for the financial year is to
be treated as the amount calculated by the billing authority
under section 31A above, and
(b)
subsections (2)(a) and (4) of section 36A above are to be
ignored.
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52ZT
Directions to major precepting authorities
(1)
This section applies if the Secretary of State gives a direction under
section 52ZR above to a major precepting authority other than the
Greater London Authority.
(2)
The direction must state the amount that is to be the amount of the
5
major precepting authority’s council tax requirement for the
financial year.
(3)
If the direction is given before the major precepting authority has
carried out its council tax calculations for the financial year, that
amount is to be treated for all purposes as the amount calculated by
10
the major precepting authority under section 42A above.
(4)
If the direction is given after the major precepting authority has
carried out its council tax calculations for the financial year (whether
or not it has issued a precept for the year)—
(a)
those calculations are of no effect, and
15
(b)
the authority must make substitute calculations for the year
in accordance with section 49 above.
(5)
For the purposes of those and any subsequent substitute calculations
and the application of Chapters 3 and 4 above to them—
(a)
the amount stated in the direction as the amount of the major
20
precepting authority’s council tax requirement for the
financial year is to be treated as the amount calculated by the
billing authority under section 42A above, and
(b)
subsection (2)(za) of section 49 above is to be ignored.
52ZU
Directions to the Greater London Authority
25
(1)
This section applies if the Secretary of State gives a direction under
section 52ZR above to the Greater London Authority.
(2)
The direction must specify the amount that is to be the component
council tax requirement for the relevant constituent body for the
year.
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(3)
The Greater London Authority must make calculations in
substitution in relation to the financial year under subsections (4) to
(7) of section 85 of the Greater London Authority Act 1999 in relation
to—
(a)
the relevant constituent body alone, or
35
(b)
the relevant constituent body and one or more other
constituent bodies.
(4)
Subsection (5) below applies if the result of the substitute
calculations is such that—
(a)
there is an increase in the Greater London Authority’s
40
consolidated council tax requirement for the year, or
(b)
there is no such increase, but the results of the calculations in
substitution made in accordance with sections 85, 86 and 88
to 90 of and Schedule 7 to the Greater London Authority Act
1999 and sections 47 and 48 above would be different from
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the last relevant calculations in relation to the year.

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(5)
The Greater London Authority must make calculations in
substitution in accordance with the provisions mentioned in
subsection (4)(b) above.
(6)
In subsection (4)(b) above “the last relevant calculations” means the
last calculations made by the Greater London Authority in relation
5
to the financial year in accordance with—
(a)
sections 85 to 90 of the Greater London Authority Act 1999
and sections 47 and 48 above, or
(b)
sections 85, 86 and 88 to 90 of and Schedule 7 to that Act and
sections 47 and 48 above.
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(7)
None of the substitute calculations is to have any effect if—
(a)
the amount calculated under section 85(6) or (7) of the
Greater London Authority Act 1999 for the relevant
constituent body is not in compliance with the direction,
(b)
there is an increase in the Greater London Authority’s
15
consolidated council tax requirement for the financial year
(as last calculated) which exceeds the increase required to be
made to the component council tax requirement for the
relevant constituent body (as last calculated for the year) to
comply with the direction, or
20
(c)
in making the calculations under section 88(2) or 89(3) of that
Act, the Authority fails to comply with subsection (8) below.
(8)
In making substitute calculations under section 88(2) or 89(3) of the
the Greater London Authority Act 1999 the Greater London
Authority must use any amount determined in the previous
25
calculations for item T in section 88(2) of that Act or for item TP2 in
section 89(4) of that Act.
(9)
Subsections (7)(c) and (8) above do not apply if the previous
calculations have been quashed because of a failure to comply with
the appropriate Greater London provisions in making the
30
calculations.
(10)
For the purposes of subsection (9) above “the appropriate Greater
London provisions” means—
(a)
in the case of calculations required to be made in accordance
with sections 85 to 90 of the Greater London Authority Act
35
1999 and sections 47 and 48 above, those provisions, and
(b)
in the case of calculations required to be made in accordance
with sections 85, 86 and 88 to 90 of and Schedule 7 to that Act
and sections 47 and 48 above, those provisions.
(11)
Any substitute calculations under this section are to be made in
40
accordance with Schedule 7 to the Greater London Authority Act
1999.
(12)
In this Part—
“component council tax requirement” has the meaning given by
section 85(6) of the Greater London Authority Act 1999;
45
“consolidated council tax requirement” has the meaning given
by section 85(8) of the Greater London Authority Act 1999;
“the relevant constituent body”, in relation to a direction under
section 52ZR above, means the constituent body by reference

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to which the direction was given (or, if there is more than one
such body, each of them).
52ZV
Directions to local precepting authorities
(1)
This section applies if the Secretary of State gives a direction under
section 52ZR above to a local precepting authority.
5
(2)
The direction must state the amount that is to be the amount of the
local precepting authority’s council tax requirement for the financial
year.
(3)
That amount is to be treated for all purposes as the amount
calculated by the local precepting authority under section 49A
10
above.
(4)
If the direction is given after the local precepting authority has issued
a precept for the financial year, that amount is to be treated for all
purposes as an amount calculated by the authority in substitution in
relation to the year in accordance with that section (so that, in
15
particular, section 42 above applies accordingly).
52ZW
Further provisions about directions
(1)
An authority that is required to make substitute calculations for a
financial year by virtue of any of sections 52ZS to 52ZU—
(a)
must make the calculations, and
20
(b)
in the case of a major precepting authority, must issue any
precepts in substitution required in consequence under
section 42 above,

before the end of the period mentioned in subsection (3) below.
(2)
A local precepting authority to which section 52ZV(4) above applies
25
must issue any precepts in substitution required in consequence
under section 42 above before the end of the period mentioned in
subsection (3) below.
(3)
That period is—
(a)
the period of 35 days beginning with the day on the authority
30
receives the direction (where it is the Greater London
Authority), or
(b)
the period of 21 days beginning with the day on which the
authority receives the direction (in any other case).
(4)
In the case of a billing authority, the authority has no power during
35
the period of restriction to transfer any amount from its collection
fund to its general fund; and sections 97 and 98 of the 1988 Act have
effect accordingly.
(5)
In the case of a precepting authority, no authority to which it has
power to issue a precept has power during the period of restriction
40
to pay anything in respect of a precept issued by the precepting
authority for the financial year.
(6)
For the purposes of subsections (4) and (5) “the period of restriction”
is the period—
(a)
beginning at the end of the period mentioned in subsection
45
(3), and

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(b)
ending at the time (if any) when the authority complies with
subsection (1) or (2) (as the case may be).
(7)
The following provisions of this section apply to substitute
calculations by the Greater London Authority other than those made
pursuant to section 52ZU above.
5
(8)
Subject to variation or revocation, a direction under section 52ZR
above has effect in relation to any substitute calculations made under
any enactment by the Greater London Authority—
(a)
in accordance with sections 85, 86 and 88 to 90 of and
Schedule 7 to the Greater London Authority Act 1999 and
10
sections 47 and 48 above,
(b)
in relation to the financial year to which the direction relates,
and
(c)
at any time after the direction is given.
(9)
Where a direction under section 52ZR above has effect in relation to
15
any substitute calculations by virtue of subsection (8) above, none of
the calculations have effect if the amount calculated under section
85(6) above for the relevant constituent body is not in compliance
with the direction.
Meaning of basic amount of council tax
20
52ZX
Meaning of relevant basic amount of council tax
(1)
Any reference in this Chapter to a billing authority’s relevant basic
amount of council tax for a financial year is a reference to the amount
that would be calculated by it in relation to the year under section
31B(1) above if section 31A above did not require or permit it to take
25
into account the amount of any precepts—
(a)
issued to it for the year by local precepting authorities, or
(b)
anticipated by it in pursuance of regulations under section 41
above.
(2)
In the case of a major precepting authority other than the Greater
30
London Authority, any reference in this Chapter to the authority’s
relevant basic amount of council tax for a financial year is a reference
to the amount calculated by it in relation to the year under section
42B(1) above.
(3)
In the case of a major precepting authority that is the Greater London
35
Authority, any reference in this Chapter to the authority’s relevant
basic amount of council tax for a financial year is a reference to—
(a)
the amount calculated by it in relation to the year under
section 88(2) above (referred to in this Chapter as the Greater
London Authority’s unadjusted relevant basic amount of
40
council tax for the year), or
(b)
any amount calculated by it in relation to the year under
section 89(3) above (referred to in this Chapter as the Greater
London Authority’s adjusted relevant basic amount of
council tax for the year).
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