Greater London Authority Bill

Greater London Authority Bill - continued	House of Lords

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PART III

FINANCIAL PROVISIONS

CHAPTER I

COUNCIL TAX

Different categories of dwellings

Amounts for different categories of dwellings.

81. In section 30 of the Local Government Finance Act 1992 (amounts for different categories of dwellings) there shall be added at the end-

	"(10) Where the major precepting authority in question is the Greater London Authority, subsections (2)(b) and (4) above shall have effect as if the references to sections 43 to 47 below were references to the appropriate Greater London provisions.
	(11) In this section, "the appropriate Greater London provisions" means-
	(a) sections 85 to 90 of the Greater London Authority Act 1999 and section 47 below; or
	(b) in the case of calculations by way of substitute, sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and section 47 below."

Precepts

Authority to be a major precepting authority.

82. - (1) Section 39 of the Local Government Finance Act 1992 (precepting and precepted authorities) shall be amended as follows.

(2) In subsection (1) (major precepting authorities) after paragraph (a) there shall be inserted-

"(aa) the Greater London Authority;".

(3) Paragraphs (e) and (f) of that subsection (which relate to the London Fire and Civil Defence Authority and the Receiver for the Metropolitan Police District) shall cease to have effect.

Issue of precepts.

83. In section 40 of the Local Government Finance Act 1992 (issue of precepts by major precepting authorities) there shall be added at the end-

	"(9) Where the precepting authority is the Greater London Authority, this section shall have effect with the following modifications-
	(a) in subsection (2)(a), for the reference to sections 43 to 47 below there shall be substituted a reference to the appropriate Greater London provisions;
	(b) in subsection (3), for the reference to sections 43 to 47 below there shall be substituted a reference to the appropriate Greater London provisions;
	(c) in subsection (6), for the reference to item T in section 44(1) below there shall be substituted a reference to item T in section 88(2) of the Greater London Authority Act 1999; and
	(d) also in subsection (6), for the reference to item TP in section 45(3) below there shall be substituted a reference to item TP2 in section 89(4) of that Act.
	(10) In this section, "the appropriate Greater London provisions" means-
	(a) sections 85 to 90 of the Greater London Authority Act 1999 and section 47 below; or
	(b) in the case of calculations by way of substitute, sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and section 47 below."

Substituted precepts.

84. - (1) Section 42 of the Local Government Finance Act 1992 (substitute precepts) shall be amended as follows.

(2) In subsection (1) (duty to issue substitute precepts on making of substitute calculations under certain provisions specified in paragraph (b)) in paragraph (b), after "section 51 below" there shall be inserted "or section 95 of the Greater London Authority Act 1999".

Budget requirements

Calculation of component and consolidated budget requirements.

85. - (1) Section 43 of the Local Government Finance Act 1992 shall not apply in relation to the Authority, and the following provisions of this section and section 86 below shall have effect in relation to the Authority in place of that section.

(2) In relation to each financial year, the Authority shall make the calculations required by this section.

(3) The Authority must, in the case of each constituent body, that is to say-

(a) the Authority, and

(b) each of the functional bodies,

calculate the aggregates required by virtue of subsections (4) and (5) below.

(4) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of-

(a) the expenditure the Authority estimates the body will incur in the year in performing its functions and will charge to a revenue account for the year, other than expenditure which the Authority estimates will be so incurred in pursuance of regulations under section 99(3) of the 1988 Act;

(b) such allowance as the Authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c) the financial reserves which the Authority estimates it will be appropriate for the body to raise in the year for meeting the body's estimated future expenditure; and

(d) such of the body's financial reserves as are sufficient to meet so much of the amount estimated by the Authority to be a revenue account deficit of the body for any earlier financial year as has not already been provided for.

(5) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of-

(a) the sums which the Authority estimates will be payable to the body for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which the Authority estimates will be so payable-

(i) in respect of redistributed non-domestic rates, revenue support grant, additional grant, relevant special grant, police grant or general GLA grant;

(ii) in respect of any precept issued by the Authority; or

(iii) in pursuance of regulations under section 99(3) of the Local Government Finance Act 1988; and

(b) the amount of the body's financial reserves which the Authority estimates that the body will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (4) above.

(6) If, in the case of any constituent body, the aggregate calculated under subsection (4) above exceeds that calculated under subsection (5) above-

(a) the Authority must calculate the amount equal to the difference; and

(b) the amount so calculated shall be the body's component budget requirement for the year.

(7) If, in the case of any constituent body, the aggregate calculated under subsection (4) above does not exceed that calculated under subsection (5) above, the body's component budget requirement for the year shall be nil.

(8) The Authority must also calculate the aggregate of the component budget requirements of each of the constituent bodies and that aggregate shall be the Authority's consolidated budget requirement for the year.

(9) References in this section to expenditure incurred by a body shall be construed in accordance with section 41(3) of the Local Government and Housing Act 1989.

Provisions supplemental to section 85.

86. - (1) An amount must not be brought into account under subsection (4) or (5) of section 85 above in the application of the subsection in relation to the Authority as a constituent body if the amount (or an amount which represents it) falls to be brought into account under the same subsection in its application in relation to a functional body.

(2) In estimating under subsection (4)(a) of section 85 above in the case of any constituent body other than the Metropolitan Police Authority, the Authority shall take into account the amount of any levy issued to the body for the year, but (except as provided by regulations under section 74 of the Local Government Finance Act 1988) shall not anticipate a levy not issued.

(3) In estimating under subsection (4)(a) of section 85 above in the case of the Metropolitan Police Authority, the Authority shall take into account the amount of any levy issued to the Metropolitan Police Authority under section 17 or 62 of the Police Act 1997 (levies issued by the Service Authority for the National Criminal Intelligence Service and the Service Authority for the National Crime Squad) for the year, but (except as provided by an order under either of those sections) shall not anticipate a levy not issued.

(4) For the purposes of subsection (4)(c) of section 85 above a body's estimated future expenditure is-

(a) that which the Authority estimates the body will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely, sums-

(i) which will be payable to it for the year; and

(ii) in respect of which amounts will be credited to a revenue account for the year; and

(b) that which the Authority estimates the body 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.

(5) The Secretary of State may by regulations do one or both of the following-

(a) alter the constituents of any calculation to be made under subsection (4) or (5) of section 85 above (whether by adding, deleting or amending items);

(b) alter the rules governing the making of any calculation under subsection (4) or (5) of section 85 above (whether by deleting or amending subsections (2) to (4) above, or any of them, or by adding other provisions, or by a combination of those methods).

(6) Subsection (9) of section 85 above applies for the purposes of this section as it applies for the purposes of that section.

Procedure for determining the budget requirements.

87. Schedule 6 to this Act (which contains procedural requirements for determining the component budget requirements and the consolidated budget requirement) shall have effect.

Calculation of tax payable

Calculation of basic amount of tax.

88. - (1) Section 44 of the Local Government Finance Act 1992 shall not apply in relation to the Authority and the following provisions of this section shall have effect in relation to the Authority in place of that section.

(2) In relation to each financial year the Authority shall calculate the basic amount of its council tax by applying the formula-

R - P1 - A
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T

where-

R is the amount calculated (or last calculated) by the Authority under section 85(8) above as its consolidated budget requirement for the year;

P1 is the aggregate of such amounts as may be prescribed, being amounts representing the sums which the Secretary of State estimates will be payable to the Authority for the year in respect of the following items-

(a) redistributed non-domestic rates,

(b) revenue support grant,

(d) additional grant, and

(e) relevant special grant,

but in the case of each item reduced, as may be prescribed, by such amount as the Secretary of State considers represents the portion of the item which relates to defraying the special item in whole or in part;

A is the amount of the special item;

T is the aggregate of the amounts which are calculated by the billing authorities to which the Authority issues precepts ("the billing authorities concerned") as their council tax bases for the year for their areas and are notified by them to the Authority within the prescribed period.

(3) In the definition of P1 in subsection (2) above, "prescribed" means specified in, or determined in accordance with, either-

(a) the appropriate report or determination, or

(b) regulations made by the Secretary of State,

as the Secretary of State may determine in the case of any particular item and any particular financial year or years.

(4) In subsection (3)(a) above, "the appropriate report or determination" means-

(a) in the case of an item specified in paragraph (a) or (b) of the definition of P1 in subsection (2) above, the local government finance report for the financial year in question;

(b) in the case of the item specified in paragraph (c) of that definition, the determination under section 100 below for the financial year in question;

(c) in the case of the item specified in paragraph (d) of that definition, the report under section 85 of the Local Government Finance Act 1988 relating to that item; and

(d) in the case of the item specified in paragraph (e) of that definition, the report under section 88B of that Act relating to that item.

(5) The aggregate of the sums mentioned in item P1 in subsection (2) above shall be-

(a) increased by the aggregate amount of any sums which the Authority estimates will be paid to it in the year by billing authorities in accordance with regulations under section 99(3) of the Local Government Finance Act 1988; and

(b) reduced by the aggregate amount of any sums which the Authority estimates will be paid by it in the year to billing authorities in accordance with such regulations.

(6) The Secretary of State shall make regulations containing rules for making for any year the calculations required by item T in subsection (2) above; and the billing authorities concerned shall make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

(7) Regulations prescribing a period for the purposes of item T in subsection (2) above may provide that, in any case where a billing authority fails to notify its calculation to the precepting authority within that period, that item shall be determined in the prescribed manner by such authority or authorities as may be prescribed.

(8) The Secretary of State may by regulations do one or both of the following-

(a) alter the constituents of any calculation to be made under subsection (2) above (whether by adding, deleting or amending items);

(b) alter the rules governing the making of any calculation under subsection (2) above (whether by deleting or amending subsections (3) to (5) above, or any of them, or by adding other provisions, or by a combination of those methods).

(9) Any negative amount given by a calculation under subsection (2) above shall be assumed to be nil for the purposes of this Chapter and Chapter IV of Part I of the Local Government Finance Act 1992.

(10) In this section "special item" has the same meaning as it has in section 89 below (see subsection (2) of that section).

Additional calculations: special item for part of Greater London.

89. - (1) Section 45 of the Local Government Finance Act 1992 shall not apply in relation to the Authority, and the following provisions of this section shall have effect in relation to the Authority in place of that section.

(2) The following provisions of this section apply where for any financial year the item mentioned in section 90(2) below relates to a part only of Greater London; and in this section-

(a) "special item" means that item; and

(b) "the relevant part", in relation to such an item, means the part of Greater London concerned.

(3) The Authority shall calculate the basic amount of its council tax for dwellings in any part of its area to which the special item relates by adding to the amount given by the formula in section 88(2) above the amount which, in respect of the special item, is given by the formula in subsection (4) below.

(4) For dwellings in any part of Greater London to which the special item relates, the amount in respect of the special item is given by the formula-

S2 - P2
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TP2

where-

S2 is the amount of the special item;

P2 is the aggregate of such amounts as may be prescribed, being amounts representing the sums which the Secretary of State estimates will be payable to the Authority for the year in respect of the following items-

(a) police grant,

(b) redistributed non-domestic rates,

(d) general GLA grant,

(e) additional grant, and

(f) relevant special grant,

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

TP2 is the aggregate of the amounts which are calculated by the billing authorities to which the Authority has power to issue precepts as respects the special item ("the billing authorities concerned") as their council tax bases for the year for their areas and are notified by them to the Authority within the prescribed period.

(5) In the definition of P2 in subsection (4) above, "prescribed" means specified in, or determined in accordance with, either-

(a) the appropriate report or determination, or

(b) regulations made by the Secretary of State,

as the Secretary of State may determine in the case of any particular item and any particular financial year or years.

(6) In subsection (5)(a) above, "the appropriate report or determination" means-

(a) in the case of the item specified in paragraph (a) of the definition of P2 in subsection (4) above, the police grant report under section 46(3) of the Police Act 1996 for the financial year in question;

(b) in the case of an item specified in paragraph (b) or (c) of that definition, the local government finance report for the financial year in question;

(c) in the case of the item specified in paragraph (d) of that definition, the determination under section 100 below for the financial year in question;

(d) in the case of the item specified in paragraph (e) of that definition, the report under section 85 of the Local Government Finance Act 1988 relating to that item; and

(e) in the case of the item specified in paragraph (f) of that definition, the report under section 88B of that Act relating to that item.

(7) Subsections (6) and (7) of section 88 above, and any regulations made under or by virtue of either of those subsections, shall have effect in relation to the calculation of TP2 in subsection (4) above as they have effect in relation to the calculation of T in subsection (2) of that section.

(8) Any negative amount given by a calculation under this section shall be assumed to be nil for the purposes of this Chapter and Chapter IV of Part I of the Local Government Finance Act 1992.

(9) The Secretary of State may by regulations do one or both of the following-

(a) alter the constituents of any calculation to be made under or by virtue of subsection (3) above (whether by adding, deleting or amending items);

(b) alter the rules governing the making of any calculation under or by virtue of that subsection (whether by deleting or amending subsections (3) to (8) above, or any of them, or by adding other provisions, or by a combination of those methods).

Prepared 27 October 1999