Localism Bill

House of Commons

Session 2010 - 11
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Localism Bill

Localism Bill
Schedule 7 — Council tax: minor and consequential amendments
277

Schedule 7
Section 64

Council tax: minor and consequential amendments
Local Government Finance Act 1988 (c. 41)
1
The Local Government Finance Act 1988 is amended as follows.
2
In section 74(4) (levies)—
5
(a)
in paragraph (a) after “section” insert “31A or”, and
(b)
in paragraph (b) after “section” insert “42A or”.
3
In section 75(6)(a) (special levies) after “section” insert “31A or”.
4
In section 97(1) (principal transfers between funds)—
(a)
for “32 to 36” substitute “31A, 31B and 34 to 36”,
10
(b)
in the definition of item B for “33(1)” substitute “31B(1)”, and
(c)
in the definition of item T for “33(1)” substitute “31B(1)”.
5
In section 99(4) (regulations about funds) for “32(4)” substitute “31A(4)”.
6
In Schedule 7 (non-domestic rating: multipliers) in paragraph 9(4) in the
definition of item C for “32(4)” substitute “31A(4)”.
15
Local Government Finance Act 1992 (c. 14)
7
The Local Government Finance Act 1992 is amended as follows.
8     (1)
Section 30 (amounts of council tax for different categories of dwelling) is
amended as follows.
      (2)
In subsection (2)—
20
(a)
in paragraph (a) for “sections 32 to 36 below;” substitute “—
(i)
in the case of a billing authority in England,
sections 31A, 31B and 34 to 36 below, or
(ii)
in the case of a billing authority in Wales,
sections 32 to 36 below;”, and
25
(b)
in paragraph (b) for the words from “, have been calculated” to the
end of the paragraph substitute “—
(i)
in the case of a billing authority in England,
have been calculated in accordance with
sections 42A, 42B and 45 to 47 below and have
30
been stated (or last stated) in accordance with
section 40 below in precepts issued to the
authority by major precepting authorities, or
(ii)
in the case of a billing authority in Wales, have
been calculated in accordance with sections 43
35
to 47 below and have been stated (or last
stated) in accordance with section 40 below in
precepts issued to the authority by major
precepting authorities.”
      (3)
In subsection (4) for “sections 32” to the end of the subsection insert “—
40
(a)
in the case of a billing authority in England, sections 31A, 31B
and 34 to 36 below, or sections 42A, 42B and 45 to 47 below,
or both, or

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Schedule 7 — Council tax: minor and consequential amendments
278

(b)
in the case of a billing authority in Wales, sections 32 to 36
below, or sections 43 to 47 below, or both.”
9
In section 31(1)(a) (substituted amounts) after “section” insert “36A,”.
10    (1)
Section 32 (calculation of budget requirement by billing authority) is
amended as follows.
5
      (2)
In the heading at the end insert “by authorities in Wales”.
      (3)
In subsection (1) after “billing authority” insert “in Wales”.
      (4)
In subsection (2)—
(a)
omit the paragraph (a) inserted in relation to authorities in England
by the Local Authorities (Alteration of Requisite Calculations)
10
(England) Regulations 2005 (S.I. 2005/190) (so that the paragraph (a)
in that subsection as enacted continues to have effect for authorities
in Wales),
(b)
at the end of paragraph (c) insert “and”, and
(c)
omit paragraph (e).
15
      (5)
In subsection (3)—
(a)
in paragraph (a)—
(i)
omit the words “general fund or (as the case may be)”,
(ii)
omit the words from “BID levy” to “2003”, and
(iii)
omit the words “or (in the case of the Common Council only)
20
police grant”,
(b)
omit paragraph (b), and
(c)
in paragraph (c) for “, (b) and (e)” substitute “and (b)”.
      (6)
In subsection (3A)—
(a)
omit “In the case of any billing authority in Wales”, and
25
(b)
for “their” substitute “a billing authority’s”.
      (7)
For subsection (5) substitute—
“(5)
In making the calculation under subsection (2) above the authority
must ignore—
(a)
payments which must be met from a trust fund;
30
(b)
payments to be made to the Secretary of State under
paragraph 5 of Schedule 8 to the 1988 Act or regulations
made under paragraph 5(15) of that Schedule;
(c)
payments to be made in respect of the amount of any precept
issued by a major precepting authority under Part 1 of this
35
Act (but not payments to be so made in respect of interest on
such an amount); and
(d)
payments to be made to another person in repaying, under
regulations under the 1988 Act or Part 1 of this Act, excess
receipts by way of non-domestic rates or council tax.”
40
      (8)
In subsection (7)(a) omit sub-paragraph (ii).
      (9)
Omit subsections (8) to (8B).
     (10)
In subsection (9)—
(a)
for “Secretary of State” substitute “Welsh Ministers”, and

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Schedule 7 — Council tax: minor and consequential amendments
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(b)
for “(8B)” substitute “(7)”.
     (11)
In subsection (12) omit the definition of “police grant”.
     (12)
Omit subsection (13).
11    (1)
Section 33 (calculation of basic amount of tax by billing authority) is
amended as follows.
5
      (2)
In the heading at the end insert “by authorities in Wales”.
      (3)
In subsection (1)—
(a)
after “billing authority” insert “in Wales”, and
(b)
in the definition of item P omit—
(i)
omit “general fund or (as the case may be)”, and
10
(ii)
“or (in the case of the Common Council only) police grant”.
      (4)
Omit subsections (3) and (3A).
      (5)
In subsection (3B)—
(a)
omit “In the case of a Welsh county council or county borough
council,”, and
15
(b)
in each of the definitions of items J, K and L for “council’s” substitute
“authority’s”.
      (6)
In subsection (4) omit “or subsection (3) above”.
      (7)
In subsection (5) for “Secretary of State” substitute “Welsh Ministers”.
12
In section 34(2) (additional calculation where special items relate to part only
20
of area)—
(a)
in the definition of item B after “under” insert “section 31B(1) above
or”, and
(b)
in the definition of item T after “item T” insert “in section 31B(1)
above or”.
25
13
In section 35(1)(a) (special item for the purposes of section 34) after “under”
insert “section 31A(2) above or”.
14
In section 36(1) (calculation of tax for different valuation bands) in the
definition of “item A” after the first “under” insert “section 31B(1) above or”.
15
After section 36 insert—
30
“36A
Substitute calculations: England
(1)
An authority in England which has made calculations in accordance
with sections 31A, 31B and 34 to 36 above in relation to a financial
year (originally or by way of substitute) may make calculations in
substitution in relation to the year in accordance with those sections,
35
ignoring section 31A(11) above for this purpose.
(2)
None of the substitute calculations shall have any effect if—
(a)
the amount calculated under section 31A(4) above, or any
amount calculated under section 31B(1) or 34(2) or (3) above
as the basic amount of council tax applicable to any dwelling,
40
would exceed that so calculated in the previous calculations,
or

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Schedule 7 — Council tax: minor and consequential amendments
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(b)
the billing authority fails to comply with subsection (3) below
in making the substitute calculations.
(3)
In making substitute calculations under section 31B(1) or 34(3)
above, the billing authority must use any amount determined in the
previous calculations for item T in section 31B(1) above or item TP in
5
section 34(3) above.
(4)
For the purposes of subsection (2)(a) above, one negative amount is
to be taken to exceed another if it is closer to nil (so that minus £1 is
to be taken to exceed minus £2).
(5)
Subsections (2) and (3) above do not apply if the previous
10
calculations have been quashed because of a failure to comply with
sections 31A, 31B and 34 to 36 above in making the calculations.”
16
In section 37(1) (substitute calculations) after “authority” insert “in Wales”.
17    (1)
Section 40 (issue of precepts by major precepting authorities) is amended as
follows.
15
      (2)
In subsection (2)(a) for “sections 43 to 47 below;” substitute “—
(i)
in the case of a precepting authority in England,
sections 42A, 42B and 45 to 47 below, or
(ii)
in the case of a precepting authority in Wales, sections
43 to 47 below;”.
20
      (3)
In subsection (3) for “sections 43 to 47 below” substitute “—
(a)
in the case of a precepting authority in England, sections 42A,
42B and 45 to 47 below, or
(b)
in the case of a precepting authority in Wales, sections 43 to
47 below.”
25
      (4)
After subsection (5) insert—
“(5A)
No such precept may be issued by a precepting authority in England
to a billing authority before the earlier of the following—
(a)
the earliest date on which, for the financial year for which the
precept is issued, each of the periods prescribed for the
30
purposes of item T in section 31B(1) above, item T in section
42B(1) below and item TP in section 45(3) below has expired;
(b)
the earliest date on which, for that year, each billing authority
has notified its calculations for the purposes of those items to
the precepting authority.”
35
      (5)
In subsection (6) after the first “authority” insert “in Wales”.
      (6)
In subsection (8) after “subsection” insert “(5A),”.
      (7)
In subsection (9)—
(a)
in paragraph (a)—
(i)
after “(2)(a)” insert “(i)”, and
40
(ii)
for “43 to 47” substitute “sections 42A, 42B and 45 to 47”,
(b)
in paragraph (b)—
(i)
after “(3)” insert “(a)”, and
(ii)
for “43 to 47” substitute “sections 42A, 42B and 45 to 47”,
(c)
in paragraph (c)—
45

Localism Bill
Schedule 7 — Council tax: minor and consequential amendments
281

(i)
for “(6)” substitute “(5A)”, and
(ii)
for “44(1)” substitute “42B(1)”, and
(d)
in paragraph (d) for “(6)” substitute “(5A)”.
18    (1)
Section 41 (precepts by local precepting authorities) is amended as follows.
      (2)
In subsection (2) for the words from “by the precepting authority” to the end
5
substitute “—
(a)
in the case of a precepting authority in England, by that
authority under section 49A below as its council tax
requirement for the year, and
(b)
in the case of a precepting authority in Wales, by that
10
authority under section 50 below as its budget requirement
for the year.”
      (3)
After that subsection insert—
“(2A)
The Secretary of State may by regulations make provision that a
billing authority in England making calculations in accordance with
15
section 31A above (originally or by way of substitute) may anticipate
a precept under this section; and the regulations may include
provision as to—
(a)
the amounts which may be anticipated by billing authorities
in pursuance of the regulations;
20
(b)
the sums (if any) to be paid by such authorities in respect of
amounts anticipated by them; and
(c)
the sums (if any) to be paid by such authorities in respect of
amounts not anticipated by them.”
      (4)
In subsection (3)—
25
(a)
for “Secretary of State” substitute “Welsh Ministers”, and
(b)
after “billing authority” insert “in Wales”.
19
In section 42(1)(b) (substituted precepts) after “49” insert “49A,”.
20    (1)
Section 43 (calculation of budget requirement by major precepting
authority) is amended as follows.
30
      (2)
In the heading, at the end insert “by authorities in Wales”.
      (3)
In subsection (1) after “major precepting authority” insert “in Wales”.
      (4)
Omit subsection (5).
      (5)
For subsections (6A) to (6D) substitute—
“(6A)
In this section and section 44 below “police grant”, in relation to a
35
major precepting authority and a financial year, means the total
amount of grant payable to the authority in accordance with the
police grant report for that year.
(6B)
In subsection (6A) above “police grant report” means a police grant
report approved by a resolution of the House of Commons pursuant
40
to section 46 of the Police Act 1996.”
      (6)
In subsection (7)—
(a)
for “Secretary of State” substitute “Welsh Ministers”, and

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Schedule 7 — Council tax: minor and consequential amendments
282

(b)
in paragraph (b) for the words from “subsections” to “them”
substitute “subsection (6)”.
21    (1)
Section 44 (calculation of basic amount of tax by major precepting authority)
is amended as follows.
      (2)
In the heading at the end insert “by authorities in Wales”.
5
      (3)
In subsection (1) after “major precepting authority” insert “in Wales”.
      (4)
In each of subsections (4) and (5) for “Secretary of State” substitute “Welsh
Ministers”.
22
In section 45(2) (additional calculation where special items relate to part only
of area)-
10
(a)
in the definition of item B after “under” insert “section 42B(1) above
or”, and
(b)
in the definition of item T after “item T” insert “in section 42B(1)
above or”.
23
In section 46(1) (special item for the purposes of section 34) after “under”
15
insert “section 42A(2) above or”.
24
In section 47(1) (calculation of tax for different valuation bands) in the
definition of “item A” after the first “under” insert “section 42B(1) above or”.
25    (1)
Section 48 (calculation of amount payable by each billing authority) is
amended as follows.
20
      (2)
In subsection (1A) in the definition of item T for “33(1)” substitute “31B(1)”.
      (3)
In subsection (2)—
(a)
for “44(1) or” substitute “42B(1) above or (as the case may be) 44(1)
above or under section”, and
(b)
in the definition of item T after the second “in” insert “section 31B(1)
25
or (as the case may be)”.
      (4)
In subsection (3) for “44(1) or” substitute “42B(1) above or 44(1) above or
under section”.
26    (1)
Section 49 (substitute calculations) is amended as follows.
      (2)
In subsection (1) before paragraph (a) insert—
30
“(za)
sections 42A, 42B and 45 to 48 above (originally or by way of
substitute),”.
      (3)
In subsection (1A) before paragraph (a) insert—
“(za)
in a case falling within paragraph (za), the provisions
specified in that paragraph;”.
35
      (4)
In subsection (2)—
(a)
before paragraph (a) insert—
“(za)
in the case of a major precepting authority in England
other than the Greater London Authority, the amount
under section 42A(4) above, or any amount calculated
40
under section 42B(1) or 45(2) or (3) above as the basic
amount of council tax applicable to any dwelling,
would exceed that so calculated in the previous
calculations; or”,

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(b)
in paragraph (a) for “other than the Greater London Authority”
substitute “in Wales”,
(c)
in paragraph (aa)(i) for “budget” substitute “council tax”, and
(d)
in paragraph (b) for “subsection (3) or (3A) below” substitute
“whichever of subsections (2A), (3) and (3A) below is applicable to
5
it”.
      (5)
After that subsection insert—
“(2A)
In making substitute calculations under section 42B(1) or 45(3)
above, an authority in England other than the Greater London
Authority must use any amount determined in the previous
10
calculations for item T in section 42B(1) above or item TP in section
45(3) above.”
      (6)
In subsection (3) for “the authority” substitute “an authority in Wales”.
      (7)
In subsection (3A)—
(a)
for “authority” substitute “Greater London Authority”, and
15
(b)
omit “P1 or” and “item P2 or”.
      (8)
Omit subsections (4A) to (4C).
      (9)
Before subsection (5) insert—
“(4D)
Subsections (2) and (2A) above shall not apply if the previous
calculations have been quashed because of a failure to comply with
20
sections 42A, 42B and 45 to 48 above in making the calculations.”
27    (1)
Section 50 (calculation of budget requirement by major precepting
authorities) is amended as follows.
      (2)
In the heading at the end insert “by authorities in Wales”.
      (3)
In subsection (1) after “local precepting authority” insert “in Wales”.
25
28
In section 65(4)(a) (duty to consult ratepayers: timing) after “under” insert
“section 31A above or”.
29
In section 66(2)(c) (matters that may not be questioned except by an
application for judicial review)—
(a)
for “32” substitute “31A”, and
30
(b)
for “43” substitute “42A”.
30    (1)
Section 67 (functions to be discharged only by authority) is amended as
follows.
      (2)
In subsection (2)(b)—
(a)
for “32” substitute “31A”, and
35
(b)
for “43” substitute “42A”.
      (3)
In subsection (2A)—
(a)
before paragraph (a) insert—
“(za)
the determination of an amount for item T in section
31B(1) above;”, and
40
(b)
after paragraph (b) insert—
“(ba)
the determination of an amount for item T in section
42B(1) above;”.