Greater London Authority Bill

Greater London Authority Bill - continued	House of Lords
PART III, FINANCIAL PROVISIONS - continued

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Substitute calculations etc.

Substitute calculations under section 49 of the 1992 Act.

79. - (1) Section 49 of the Local Government Finance Act 1992 (substitute calculations) shall be amended as follows.

(2) In subsection (1) (power to make substitute calculations)-

(a) after "calculations in accordance with" there shall be inserted "(a)"; and

(b) after "sections 43 to 48 above" there shall be inserted the word ", or" and the following paragraph-

"(b) sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above,".

(3) In subsection (2) (cases where substitute calculations do not have effect)-

(a) at the beginning of paragraph (a) there shall be inserted "in the case of a major precepting authority other than the Greater London Authority,"; and

(b) after paragraph (a) there shall be inserted-

"(aa) in a case where the major precepting authority is the Greater London Authority, the amount calculated under section 70(8) of the Greater London Authority Act 1999, or any amount calculated under section 73(2) or 74(3) of that Act as the basic amount of council tax applicable to any dwelling, would exceed that so calculated in the previous calculations; or".

(4) After subsection (3) (requirement to use previous values of T and TP) there shall be inserted-

"(3A) In making substitute calculations under section 73(2) or 74(3) of the Greater London Authority Act 1999, the authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) of that Act or for item P2 or item TP2 in section 74(4) of that Act."

(5) After subsection (4) (permitted increases for the purposes of subsection (3)) there shall be inserted-

	"(4A) For the purposes of subsection (3A) above, the authority may treat any amount determined in the previous calculations-
	(a) for item P1 in section 73(2) of the Greater London Authority Act 1999, or
	(b) for item P2 in section 74(4) of that Act,
	as increased by the relevant portion of any new additional grant.
	(4B) For the purposes of subsection (4A) above, "the relevant portion of any new additional grant" means the amount of any additional grant payable to the authority for the year which was not taken into account by the authority in making the previous calculations, but-
	(a) in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part; and
	(b) in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;
	and "special item" has the same meaning in this subsection as in sections 73 and 74 of the Greater London Authority Act 1999 (see section 74(2) of that Act).
	(4C) In subsection (4B) above, "prescribed" means specified in, or determined in accordance with, either-
	(a) the report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, or
	(b) regulations made by the Secretary of State,
	as the Secretary of State may determine for the purposes of paragraph (a) or (b) of that subsection and any particular financial year or years."

(6) After subsection (5) (cases where previous calculations quashed for non-compliance with sections 43 to 48) there shall be inserted-

	"(6) Subsections (2) and (3A) above shall not apply if the previous calculations have been quashed because of a failure to comply with sections 70 to 75 of the Greater London Authority Act 1999 or section 47 or 48 above in making the calculations.
	(7) Where the major precepting authority is the Greater London Authority, any substitute calculations under this section shall be made in accordance with Schedule 6 to the Greater London Authority Act 1999."

Minimum budget for Metropolitan Police Authority.

80. - (1) This section applies where-

(a) the Authority has made calculations in accordance with sections 70 to 75 above and sections 47 and 48 of the Local Government Finance Act 1992 in relation to a financial year (whether originally or by way of substitute); but

(b) it appears to the Secretary of State that the Metropolitan Police Authority, in order to restore or maintain an efficient and effective police force for its area, requires a greater component budget requirement than that previously calculated under section 70 above.

(2) Where this section applies, the Secretary of State may direct the Authority that there must be a component budget requirement for the Metropolitan Police Authority for the year which is not less than such amount as may be specified in the direction.

(3) The amount specified in a direction under subsection (2) above shall be that which the Secretary of State considers the minimum necessary in order for the Metropolitan Police Authority to restore or maintain an efficient and effective police force for its area.

(4) Where a direction is given under this section, the Authority shall make calculations in substitution in relation to that year under subsections (4) to (7) of section 70 above in relation to-

(a) the Metropolitan Police Authority alone; or

(b) the Metropolitan Police Authority and one or more other constituent bodies.

(5) If the result of the substitute calculations is such that-

(a) there is an increase in the Authority's consolidated budget requirement for the year, or

(b) there is no such increase, but the results of calculations in substitution made in accordance with sections 70 to 75 above and sections 47 and 48 of the Local Government Finance Act 1992 would be different from the last such calculations in relation to the year,

the Authority shall make calculations in substitution in relation to the year in accordance with those sections.

(6) None of the substitute calculations shall have any effect if-

(a) the amount calculated under section 70(6) or (7) above for the Metropolitan Police Authority is not in compliance with the direction; or

(b) there is an increase in the Authority's consolidated budget requirement for the year (as last calculated) which exceeds the minimum increase required to be made to the component budget requirement for the Metropolitan Police Authority (as last calculated for the year) to comply with the direction under subsection (2) above; or

(c) in making substitute calculations under section 73(2) or 74(3) above, the Authority fails to comply with subsection (7) below.

(7) In making substitute calculations under section 73(2) or 74(3) above, the Authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) above or for item P2 or item TP2 in section 74(4) above.

(8) For the purposes of subsection (7) above, the Authority may treat any amount determined in the previous calculations for item P1 in section 73(2) above or item P2 in section 74(4) above as increased by the relevant portion of any new additional grant.

(9) For the purposes of subsection (8) above, "the relevant portion of any new additional grant" means the amount of any additional grant payable to the Authority for the year which was not taken into account by the Authority in making the previous calculations, but-

(a) in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part; and

(b) in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;

and "special item" has the same meaning in this subsection as in sections 73 and 74 above (see section 74(2)).

(10) In subsection (9) above, "prescribed" means specified in, or determined in accordance with, either-

(a) the report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, or

(b) regulations made by the Secretary of State,

as the Secretary of State may determine for the purposes of paragraph (a) or (b) of that subsection and any particular financial year or years.

(11) Subsections (6)(c) and (7) above shall not apply if the previous calculations have been quashed because of a failure to comply with sections 70 to 75 above or section 47 or 48 of the Local Government Finance Act 1992 in making the calculations.

(12) Any substitute calculations under this section shall be made in accordance with Schedule 6 to this Act.

Provisions supplemental to section 80.

81. - (1) The Authority must-

(a) make the substitute calculations required by section 80 above, and

(b) where applicable, issue any precepts in substitution required in consequence under section 42 of the Local Government Finance Act 1992,

before the end of the period of 35 days beginning with the day on which it receives the direction under section 80 above.

(2) If the Authority fails to comply with the requirements mentioned in paragraph (a) or (b) of subsection (1) above within the period mentioned in that subsection, any authority to which it has power to issue a precept shall have no power during the period of restriction to pay anything in respect of a precept issued by the Authority for the year.

(3) For the purposes of subsection (2) above, the "period of restriction" is the period which-

(a) begins at the end of the period mentioned in subsection (1) above; and

(b) ends at the time (if any) when the Authority complies with the requirements mentioned in paragraphs (a) and (b) of subsection (1) above.

(4) The following provisions of this section apply in relation to substitute calculations other than those made pursuant to section 80 above.

(5) Subject to variation or revocation, a direction under section 80 above shall have effect in relation to any substitute calculations made under any enactment by the Authority-

(a) in accordance with sections 70 to 75 above and sections 47 and 48 of the Local Government Finance Act 1992;

(b) in relation to the year to which the direction relates; and

(6) Where a direction under section 80 above has effect in relation to any substitute calculations by virtue of subsection (5) above, none of the calculations shall have any effect if the amount calculated under section 70(6) above for the Metropolitan Police Authority is not in compliance with the direction.

Emergencies and disasters.

82. - (1) Where-

(a) the Authority has made calculations in accordance with subsections (4) to (7) of section 70 above (whether originally or by way of substitute), and

(b) the Mayor is of the opinion that, because of an emergency or disaster involving destruction of or danger to life or property, it is appropriate to recalculate any component budget requirements,

the Authority may make calculations in substitution in relation to the year in accordance with those subsections.

(2) None of the substitute calculations shall have any effect if they involve-

(a) any change in the sums paid or to be paid to any of the functional bodies otherwise than out of the aggregate specified in subsection (2) of section 87 below;

(b) any change in the Authority's consolidated budget requirement for the year; or

(c) the making of any substitute calculations under section 73 or 74 above or section 47 or 48 of the Local Government Finance Act 1992.

(3) Any substitute calculations under this section shall be made in accordance with Schedule 6 to this Act.

Procedure for making substitute calculations.

83. Schedule 6 to this Act (which contains procedural requirements for the making of substitute calculations by the Authority) shall have effect.

Supplementary

Interpretation of this Chapter.

84. In this Part-

"component budget requirement" has the meaning given in section 70(6) above;

"consolidated budget requirement" has the meaning given in section 70(8) above;

"constituent body" has the meaning given in section 70(3) above;

"local government finance report" means such a report under section 78A of the Local Government Finance Act 1988;

"police grant" has the meaning given by section 32(12) of the Local Government Finance Act 1992;

"relevant special grant" has the meaning given by section 32(12) of the Local Government Finance Act 1992.

Prepared 10 May 1999