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Lord Dixon-Smith moved Amendment No. 92:
The noble Lord said: This amendment could have appeared in the previous group. It is another standard request and I wonder whether the Minister would consider it. I beg to move.
Baroness Farrington of Ribbleton: The Secretary of State can use his reserve powers only to designate or nominate an authority if its budget requirement is excessive. To decide whether the budget requirement is excessive, he must determine a set of principles. If he determines any categories of authorities, the set of principles used to decide whether the budget requirement is excessive must be the same for all authorities within a category. Therefore, the principles for designation or nomination are the same for all authorities, which is the position the noble Lord, Lord Dixon-Smith, seeks to achieve.
Once the Secretary of State has decided that an authority's budget requirement is excessive, he may then designate or nominate the authority. He must tell the authority what principles he has used to decide that the budget requirement is excessive. Any council he designates will have the opportunity to challenge the designated amount, and before it can be capped there must be a debate in the other place.
The Secretary of State may, however, decide not to proceed with designation after receiving information from the local authority and instead may decide to nominate the authority.
The Secretary of State is always under a duty, enforceable by the courts, to act consistently in relation to different authorities.
Amendment No. 92 is therefore unnecessary, and I ask the noble Lord, Lord Dixon-Smith, to withdraw it.
Baroness Hamwee: Before the noble Lord responds, I believe that at the start of the Minister's response she referred to the Secretary of State deciding to designate. I am not sure whether the term "designate" was used because it has a particular meaning here. The Minister seems to be saying that in order for principles to be applied consistently, the Secretary of State must first categorise the authorities. It was at the start of her response. I may have misheard, but I should be glad if she could confirm, as she appeared to imply that the principles must be applied consistently and the Secretary of State does not have the ability to set his own sets of categories and then apply certain principles.
Baroness Farrington of Ribbleton: The Secretary of State must at all times act reasonably. The Secretary of State, in deciding whether to designate an authority, must have regard to other categories of authority. I shall confirm to the noble Baroness whether I am right in saying that within different categories of authorities particular circumstances may be taken into account which may apply to only some
If one were to consider fire authorities, the well-known old story of the Isle of Wight as a fire authority must be considered within the category of fire authorities. However, the Secretary of State could have a different determination because the Isle of Wight was unable, even though the grant formula assumed it could, to ask Hampshire to drive fire engines over the border.
The Secretary of State may determine categories of authorities, but the same set of principles must be used for all the authorities within that category. I hope that that answers the question. If there are any remaining difficulties, I shall write to the noble Baroness.
Baroness Hamwee: I am grateful for that. I did not quite catch the word "determine", which is where I stumbled in listening to the Minister's initial response, so that has clarified the matter.
Lord Dixon-Smith: I am grateful to the Minister both for her detailed explanation and for the reassurance that she placed within that explanation. I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Lord Whitty moved Amendment No. 93:
The noble Lord said: I beg to move Amendment No. 93. I shall refer to the other amendments grouped with it in the appropriate place. I can assure noble Lords that these are all technical amendments and they relate mainly to the Greater London Authority Bill which has recently been introduced into this House. In its Committee stage in another place, some amendments were made to the provision in the Bill for substitute calculations. Most of the amendments tabled here reflect those changes to the GLA Bill. There are some others which are equivalent to further amendments which the Government propose to table during the GLA Bill's passage through your Lordships' House.
The amendments include changes to ensure that references to the GLA in the Local Government Bill are accurate and take account of the special arrangements for the budget requirement and tax-setting calculations which are set out in the GLA Bill. This has also one further consequential amendment in order to ensure that the provisions for billing authorities are consistent with those for the GLA and for other major precepting authorities.
I apologise for the number of amendments, but I assure noble Lords that they are not substantive and simply ensure that this Bill and the GLA Bill are consistent in their provisions relating to the GLA and related matters. I beg to move.
On Question, amendment agreed to.
Lord Whitty moved Amendments Nos. 94 to 102:
On Question, amendments agreed to.
Schedule 1, as amended, agreed to.
Clause 30 [Major precepting authorities: further regulation]:
Page 21, line 34, at end insert ("provided that the principles for designation or nomination are the same for authorities in the same category of authority")
Page 22, line 51, leave out ("section 70") and insert ("sections 70 and 71")
Page 24, line 24, leave out ("70 to 75 of") and insert ("70, 71 and 73 to 75 of and Schedule 6 to")
Page 24, line 47, after ("Act") insert ("or for item P2")
Page 24, line 49, leave out from beginning to end of line 5 on page 25 and insert--
("(7) For the purposes of subsection (5) above the authority may treat any amount determined in the previous calculations for item P in section 44(1) above as increased by the amount of any sum which--
(a) it estimates will be payable to it for the year in respect of additional grant, and
(b) was not taken into account by it in making those calculations.
(7A) For the purposes of subsection (6) 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.
(7B) For the purposes of subsection (7A) 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).
(7C) In subsection (7B) 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 under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),
as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (7B) and any particular financial year or years.")
Page 29, line 29, leave out ("section 70") and insert ("sections 70 and 71")
Page 30, leave out lines 37 to 39 and insert--
("(3) If it--
(a) has made calculations in relation to the year in accordance with sections 32 to 36 above, or
(b) has made substitute calculations in relation to the year in accordance with section 37 above,
it shall make substitute calculations in relation to the year in accordance with sections 32 to 36 above, ignoring section 32(10) above for this purpose.")
Page 31, leave out lines 17 to 21 and insert--
("(3) Where the authority is the Greater London Authority and--
(a) it has made calculations in relation to the year in accordance with sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above, or
(b) it has made substitute calculations in relation to the year in accordance with sections 70, 71 and 73 to 75 of and
Schedule 6 to the Greater London Authority Act 1999 and sections 47 and 48 above,
it shall make substitute calculations in relation to the year in accordance with the provisions mentioned in paragraph (b) above.
(3A) Where the authority is not the Greater London Authority and it has made--
(a) calculations in accordance with sections 43 to 48 above, or
(b) substitute calculations in accordance with section 49 above,
in relation to the year, it shall make substitute calculations in relation to the year in accordance with sections 43 to 48.")
Page 31, line 22, after ("calculations") insert ("required by subsection (3) or (3A)")
Page 31, line 42, after ("Act") insert ("or for item P2")
Page 31, line 44, leave out from beginning to end of line 1 on page 32 and insert--
("(9) For the purposes of subsection (7) above the authority may treat any amount determined in the previous calculations for item P in section 44(1) above as increased by the amount of any sum which--
(a) it estimates will be payable to it for the year in respect of additional grant, and
(b) was not taken into account by it in making those calculations.
(9A) For the purposes of subsection (8) 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.
(9B) For the purposes of subsection (9A) 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).
(9C) In subsection (9B) 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 under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),
as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (9B) and any particular financial year or years.")
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