Localism Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Localism Bill

Localism Bill
Part 4 — Community empowerment
Chapter 1 — Local referendums
33

Arrangements for local referendum
48
Question to be asked in local referendum
(1)
The principal local authority must decide the question to be asked in the local
referendum.
(2)
That question is to be the question stated in—
5
(a)
the petition for the referendum,
(b)
the request for the referendum, or
(c)
the resolution for the referendum,

as the case may be.
(3)
But if the authority considers that the question so stated is misleading, it may
10
substitute its own wording.
(4)
The authority may not exercise the power in subsection (3)—
(a)
in relation to a referendum following a petition, unless the authority
has consulted the petition organiser;
(b)
in relation to a referendum following a request, unless the authority has
15
consulted the member or members who made the request.
(5)
The authority must publish, in such manner as it thinks fit—
(a)
its decision about the question to be put in the referendum, and
(b)
if it has substituted its own wording, its reasons for doing so.
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Date of referendum
20
(1)
Subject as follows, the local referendum is to be held on a date decided by the
principal local authority.
(2)
The local referendum must not be held on a date within the period of two
months beginning with the trigger date.
(3)
If another referendum (whether or not a local referendum) or an election is to
25
be held in the whole or part of the authority’s area within the period of six
months beginning with the trigger date, the local referendum is to be held on
the same date as the other referendum or election.
(4)
Subsection (3) does not apply if the authority thinks that in all the
circumstances it would be inappropriate for the local referendum to be held on
30
that date.
(5)
The local referendum must be held within the period of 12 months beginning
with the trigger date.
(6)
In this section “the trigger date” means the date on which—
(a)
the petition that led to the referendum was received by the authority,
35
(b)
the request that led to the referendum was received by the authority, or
(c)
the resolution that led to the referendum was passed by the authority,

as the case may be.
50
Publicity for and in relation to local referendum
(1)
The principal local authority must publicise, in such manner as it thinks fit—
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Localism Bill
Part 4 — Community empowerment
Chapter 1 — Local referendums
34

(a)
the fact that the local referendum is to take place,
(b)
the date of the referendum, and
(c)
the question that is to be asked in the referendum.
(2)
The duty in subsection (1) is subject to any provision made by regulations
under section 51 (voting in and conduct of local referendums).
5
(3)
If the question to be asked in the referendum relates to a matter over which a
partner authority has an influence, the principal local authority must inform
the partner authority of the matters listed in subsection (1).
(4)
Subject to subsection (5), the principal local authority may publish, or arrange
for the publication of, material that is designed to encourage support for or
10
opposition to the question to be asked in the referendum.
(5)
The power in subsection (4)—
(a)
applies only in relation to a local referendum that is held in response to
a petition or a request;
(b)
enables the authority to incur only such expenditure as is reasonable.
15
51
Voting in and conduct of local referendums
(1)
The persons entitled to vote in a local referendum held by a principal local
authority 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 which is situated in the area in which the referendum is
20
to be held (“the referendum area”), and
(b)
are registered in the register of local government electors at an address
within the referendum area.
(2)
The Secretary of State may by regulations make provision as to the conduct of
local referendums.
25
(3)
The Secretary of State may by regulations make provision for the combination
of polls at local referendums with polls at any elections or any referendums
that are not local referendums.
(4)
Regulations under this section may make provision about—
(a)
when, where and how voting in a local referendum is to take place;
30
(b)
how the votes cast in a local referendum are to be counted.
(5)
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.
(6)
Regulations under this section may not include provision—
35
(a)
as to the question to be asked in a referendum;
(b)
about the limitation of expenditure in connection with a referendum;
(c)
about the effect of the result of a referendum;
(d)
for the questioning of the result of a referendum by a court or tribunal;
(e)
creating criminal offences.
40
(7)
Before making any regulations under this section, the Secretary of State must
consult the Electoral Commission.

Localism Bill
Part 4 — Community empowerment
Chapter 1 — Local referendums
35

Consequences of local referendum
52
Consequences of local referendum
(1)
A principal local authority must publicise the result of a local referendum held
in its area in such manner as the authority thinks appropriate.
(2)
Subsections (3) and (4) apply if the question asked in the referendum relates to
5
a matter over which the principal local authority has an influence.
(3)
As soon as is reasonably practicable after the result is known, the authority
must consider what steps (if any) the authority proposes to take to give effect
to the result.
(4)
If the authority decides to take no steps to give effect to the result, it must
10
publish that decision in such manner as it thinks appropriate together with the
reasons for that decision.
(5)
Subsections (6) to (8) apply if the question asked in the referendum relates to a
matter over which a partner authority has an influence.
(6)
The principal local authority must inform the partner authority of the outcome
15
of the referendum.
(7)
As soon as is reasonably practicable after the result is known, the partner
authority must consider what steps (if any) the authority proposes to take to
give effect to the result.
(8)
If the partner authority decides to take no steps to give effect to the result of the
20
referendum, it must publish that decision in such manner as it thinks
appropriate together with the reasons for that decision.
Supplementary
53
Application to parish councils
(1)
The Secretary of State may by regulations make provision about the holding of
25
polls or referendums by parish councils.
(2)
Regulations under this section may—
(a)
apply or reproduce, with or without modifications, any provision of, or
any provision made under, this Chapter;
(b)
amend, repeal or revoke any enactment (whenever passed or made).
30
(3)
The Secretary of State may make or arrange for the making of payments to parish
councils to enable them to meet the additional expenditure they incur as a result of
regulations under this section.
54
Discharge of functions
(1)
Section 101 of the Local Government Act 1972 (arrangements for discharge of
35
functions) does not apply to a function of passing a resolution under any
provision of this Chapter.
(2)
In the case of a principal local authority that is operating executive
arrangements, a function of passing a resolution under this Chapter is not to be
the responsibility of the authority’s executive under those arrangements.
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Localism Bill
Part 4 — Community empowerment
Chapter 1 — Local referendums
36

(3)
In the case of the Greater London Authority, the function of passing a
resolution under section 47 is to be exercisable by the Mayor of London and the
London Assembly acting jointly on behalf of the Authority.
55
Interpretation
(1)
In this Chapter—
5
“electoral area” means—
(a)
in relation to a district council, a London borough council or the
Common Council of the City of London, a ward;
(b)
in relation to a county council, an electoral division;
(c)
in relation to the Greater London Authority, an Assembly
10
constituency within the meaning of the Greater London
Authority Act 1999;
(d)
in relation to the Council of the Isles of Scilly, a parish;
“electronic communication” has the same meaning as in the Electronic
Communications Act 2000;
15
“enactment” includes an enactment contained in a local Act or comprised
in subordinate legislation (within the meaning of the Interpretation Act
1978);
“local government elector” means—
(a)
a person registered as a local government elector in the register
20
of electors kept in 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
person whose name appears in a ward list published under
section 7 of the City of London (Various Powers) Act 1957 (5 &
25
6 Eliz 2 c x),
and the reference in section 51(1)(b) to the register of local government
electors is to be read accordingly;
“local matter” has the meaning given by section 44(4);
“local referendum” has the meaning given by section 39(1);
30
“non-unitary district council” means a district council for an area which is
part of the area of a county council;
“partner authority”, in relation to a principal local authority, has the same
meaning as in Chapter 1 of Part 5 of the Local Government and Public
Involvement in Health Act 2007;
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“petition organiser” has the meaning given by section 45(6);
“principal local authority” has the meaning given by section 39(5);
“proper officer”, in relation to a purpose and a principal local authority,
means the officer appointed for that purpose by that authority;
“relevant area” has the meaning given by section 40(7).
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(2)
Any reference in this Chapter to a member of a principal local authority—
(a)
in the case of an authority to which Part 1A of the Local Government
Act 2000 applies, includes a reference to an elected mayor;
(b)
in the case of the Greater London Authority, is a reference to the Mayor
of London or a London Assembly member.
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Localism Bill
Part 4 — Community empowerment
Chapter 2 — Council tax
37

Chapter 2
Council tax
56
Referendums relating to council tax increases
(1)
In Part 1 of the Local Government Finance Act 1992 (council tax: England and
Wales) after Chapter 4 insert the Chapter set out in Schedule 5.
5
(2)
Schedule 6 (council tax referendums: consequential amendments) has effect.
57
Powers of the National Assembly for Wales
In Part 1 of Schedule 5 to the Government of Wales Act 2006 (Assembly
Measures: matters) in Field 12 (local government) after Matter 12.18 insert—
“Matter 12.19
10

Referendums on council tax increases by county councils, county
borough councils, police and crime commissioners and fire and
rescue authorities.”
58
References to proper accounting practices
In section 21(4) of the Local Government Act 2003 (enactments to which
15
provisions about references to proper accounting practices apply)—
(a)
at the end of paragraph (c) insert—
“(ca)
the Local Government Finance Act 1992 (c. 14),”, and
(b)
for the “and” at the end of paragraph (d) substitute—
“(da)
the Greater London Authority Act 1999 (c. 29), and”.
20
59
Council tax calculations by billing authorities in England
Before section 32 of the Local Government Finance Act 1992 insert—
“31A
Calculation of council tax requirement by authorities in England
(1)
In relation to each financial year a billing authority in England must
make the calculations required by this section.
25
(2)
The authority must calculate the aggregate of—
(a)
the expenditure which the authority estimates it will incur in
the year in performing its functions and will charge to a revenue
account, other than a BID Revenue Account, for the year in
accordance with proper practices,
30
(b)
such allowance as the authority estimates will be appropriate
for contingencies in relation to amounts to be charged or
credited to a revenue account for the year in accordance with
proper practices,
(c)
the financial reserves which the authority estimates it will be
35
appropriate to raise in the year for meeting its estimated future
expenditure,
(d)
such financial reserves as are sufficient to meet so much of the
amount estimated by the authority to be a revenue account

Localism Bill
Part 4 — Community empowerment
Chapter 2 — Council tax
38

deficit for any earlier financial year as has not already been
provided for,
(e)
any amounts which it estimates will be transferred in the year
from its general fund to its collection fund in accordance with
section 97(4) of the 1988 Act, and
5
(f)
any amounts which it estimates will be transferred from its
general fund to its collection fund pursuant to a direction under
section 98(5) of the 1988 Act and charged to a revenue account
for the year.
(3)
The authority must calculate the aggregate of—
10
(a)
the income which it estimates will accrue to it in the year and
which it will credit to a revenue account, other than a BID
Revenue Account, for the year in accordance with proper
practices,
(b)
any amounts which it estimates will be transferred in the year
15
from its collection fund to its general fund in accordance with
section 97(3) of the 1988 Act,
(c)
any amounts which it estimates will be transferred from its
collection fund to its general fund pursuant to a direction under
section 98(4) of the 1988 Act and will be credited to a revenue
20
account for the year, and
(d)
the amount of the financial reserves which the authority
estimates it will use in order to provide for the items mentioned
in subsection (2)(a), (b) and (e) above, and
(4)
If the aggregate calculated under subsection (2) above exceeds that
25
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.
(5)
In making the calculation under subsection (2) above the authority
must ignore payments which must be met from its collection fund
30
under section 90(2) of the 1988 Act or from a trust fund.
(6)
In estimating under subsection (2)(a) above the authority must take into
account—
(a)
the amount of any expenditure which it estimates it will incur
in the year in making any repayments of grants or other sums
35
paid to it by the Secretary of State, and
(b)
the amount of any precept issued to it for the year by a local
precepting authority and the amount of any levy or special levy
issued to it for the year.
(7)
But (except as provided by regulations under section 41 above or
40
regulations under section 74 or 75 of the 1988 Act) the authority must
not anticipate a precept, levy or special levy not issued.
(8)
For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—
(a)
that which the authority estimates it will incur in the financial
45
year following the year in question, will charge to a revenue
account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available—

Localism Bill
Part 4 — Community empowerment
Chapter 2 — Council tax
39

(i)
sums which will be payable for the year into its general
fund and in respect of which amounts will be credited to
a revenue account for the year in accordance with
proper practices, and
(ii)
sums which will be transferred as regards the year from
5
its collection fund to its general fund, and
(b)
that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
charged to a revenue account for that or any other year in
10
accordance with proper practices.
(9)
In making the calculation under subsection (3) above the authority
must ignore—
(a)
payments which must be made into its collection fund under
section 90(1) of the 1988 Act or to a trust fund, and
15
(b)
subject to paragraphs (b) and (c) of subsection (3), sums which
have been or are to be transferred from its collection fund to its
general fund.
(10)
The Secretary of State may by regulations do either or both of the
following—
20
(a)
alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);
(b)
alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
25
subsections (5) to (9) above, or any of them, or by adding other
provisions, or by a combination of those methods).
(11)
Calculations to be made in relation to a particular financial year under
this section must be made before 11th March in the preceding financial
year, but they are not invalid merely because they are made on or after
30
that date.
(12)
This section is subject to section 52ZS below (which requires a direction
to a billing authority that the referendum provisions in Chapter 4ZA
are not to apply to the authority for a financial year to state the amount
of the authority’s council tax requirement for the year).
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(13)
In this section “BID Revenue Account” has the same meaning as in Part
4 of the Local Government Act 2003.
31B
Calculation of basic amount of tax by authorities in England
(1)
In relation to each financial year a billing authority in England must
calculate the basic amount of its council tax by applying the formula—
40

where—
R is the amount calculated (or last calculated) by the authority
under section 31A(4) above as its council tax requirement for
the year;
T is the amount which is calculated by the authority as its council
45
tax base for the year and, where one or more major precepting