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Schedules | |
Schedule 1 | |
Section 19 | |
Capital finance: parish and community councils and charter trustees | |
Introductory | |
1 The following are local authorities for the purposes of this Schedule— | 5 |
(a) a parish council; | |
(b) a community council; | |
(c) charter trustees. | |
Borrowing | |
2 (1) Subject to sub-paragraph (2), a local authority may borrow money— | 10 |
(a) for any purpose relevant to its functions under any enactment, or | |
(b) for the purposes of the prudent management of its financial affairs. | |
(2) A local authority may only borrow money (whether under sub-paragraph | |
(1) or otherwise)— | |
(a) for a purpose or class of purpose approved for the purposes of this | 15 |
provision by the appropriate person, and | |
(b) in accordance with any conditions subject to which the approval is | |
given. | |
(3) Sub-paragraph (2) does not apply— | |
(a) to borrowing by way of temporary loan or overdraft from a bank or | 20 |
otherwise of sums which a local authority may temporarily | |
require— | |
(i) for the purpose of meeting expenses pending the receipt of | |
revenues receivable by it in respect of the period of account | |
in which the expenses are chargeable, or | 25 |
(ii) for the purpose of meeting expenses intended to be met by | |
means of borrowing in accordance with approval under sub- | |
paragraph (2), or | |
(b) to borrowing for the purpose of repaying money borrowed in | |
accordance with approval under sub-paragraph (2), where the new | 30 |
borrowing takes place during the fixed period relating to the existing | |
borrowing. | |
(4) A local authority’s functions under this paragraph shall be discharged only | |
by the authority. | |
3 (1) Where a local authority meets any expenditure by borrowing, it shall in each | 35 |
financial year debit the appropriate amount to the account from which that | |
expenditure would otherwise fall to be met; but that duty shall not prevent | |
the authority debiting a larger amount to that account. | |
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(2) The appropriate amount for the purposes of sub-paragraph (1) is a sum | |
equivalent to an instalment of principal and interest combined such that if | |
paid annually it would secure the payment of interest at the due rate on the | |
outstanding principal together with the repayment of the principal not later | |
than the end of the fixed period. | 5 |
(3) Sub-paragraph (1) has effect subject to sub-paragraph (4) if— | |
(a) a local authority makes an advance to any other person and the | |
expenditure incurred in making the advance is met by borrowing, | |
and | |
(b) the terms of that advance are such that repayment is to be made | 10 |
otherwise than by equal instalments of principal and interest | |
combined. | |
(4) The local authority may debit to the account from which the expenditure | |
met by the borrowing would otherwise fall to be met sums of different | |
amounts (whether or not including instalments of principal) in respect of | 15 |
different financial years in order to take account of the terms on which its | |
advance falls to be repaid. | |
Loans | |
4 (1) A local authority may lend to a qualifying local government body, on such | |
terms as they may agree, such sums as the body may require for any purpose | 20 |
for which it is authorised by or under any enactment to borrow money. | |
(2) In sub-paragraph (1), “qualifying local government body” means a body | |
with local government functions which is specified for the purposes of this | |
paragraph by regulations made by the appropriate person. | |
“Fixed period” | 25 |
5 In this Schedule, references to the fixed period, in relation to borrowing by a | |
local authority, are to the period within which the money borrowed is to be | |
repaid as determined by the local authority with the consent of the | |
appropriate person. | |
Schedule 2 | 30 |
Section 42 | |
Welsh local government finance reports | |
1 In Part 5 of the Local Government Finance Act 1988 (c. 41) (grants), after | |
section 84C there is inserted— | |
“Chapter 3 | |
Revenue support grant: wales | 35 |
84D Application of Chapter 3 | |
This Chapter applies only in relation to Wales. | |
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84E Revenue support grant: Wales | |
(1) The National Assembly for Wales shall pay a grant for each financial | |
year to— | |
(a) receiving authorities, and | |
(b) specified bodies. | 5 |
(2) Grant under this section shall be known as revenue support grant. | |
(3) Revenue support grant shall be payable in accordance with this | |
Chapter. | |
84F Determination of grant | |
(1) The National Assembly for Wales shall for each financial year | 10 |
make— | |
(a) a determination under subsection (2), or | |
(b) a determination under each of subsections (3) and (4). | |
(2) A determination under this subsection shall state— | |
(a) the total amount of revenue support grant for the year, | 15 |
(b) the amount of the grant the Assembly proposes to pay to | |
receiving authorities, and | |
(c) the amount of the grant the Assembly proposes to pay to each | |
specified body. | |
(3) A determination under this subsection shall state— | 20 |
(a) the total amount of revenue support grant for the year for— | |
(i) receiving authorities other than police authorities, | |
and | |
(ii) specified bodies, | |
(b) the amount of the grant the Assembly proposes to pay to | 25 |
receiving authorities that are not police authorities, and | |
(c) the amount of the grant the Assembly proposes to pay to each | |
specified body. | |
(4) A determination under this subsection shall state the total amount of | |
revenue support grant for the year for police authorities. | 30 |
(5) Before making a determination under this section, the Assembly | |
shall consult such representatives of local government as appear to it | |
to be appropriate. | |
(6) Different amounts may be stated under subsection (2)(c) or (3)(c) in | |
relation to different specified bodies. | 35 |
(7) In this section “police authority” means a police authority | |
established under section 3 of the Police Act 1996. | |
84G Local government finance reports | |
(1) The National Assembly for Wales shall specify a determination | |
under section 84F in a report, to be called a local government finance | 40 |
report. | |
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(2) A local government finance report shall also specify the basis on | |
which the Assembly proposes to distribute among the receiving | |
authorities to which the report relates the amount stated under | |
section 84F(2)(b) or, as the case may be, section 84F(3)(b) or (4). | |
(3) Before making a report under this section, the Assembly shall notify | 5 |
the general nature of the basis of distribution proposed to be | |
specified in the report to such representatives of local government as | |
appear to it to be appropriate. | |
(4) A report made under this section shall be published by the | |
Assembly. | 10 |
(5) As soon as is reasonably practicable after a report is published under | |
subsection (4), the Assembly shall send a copy of the report to each | |
of the receiving authorities to which the report relates. | |
84H Effect of publication of local government finance report | |
(1) This section applies where the National Assembly for Wales | 15 |
publishes a local government finance report. | |
(2) The Assembly shall pay revenue support grant for the year to which | |
the report relates in accordance with the determination specified in | |
the report. | |
(3) The amount of revenue support grant to be paid to receiving | 20 |
authorities in accordance with subsection (2) shall be distributed | |
among, and paid to, them in accordance with sections 84J and 84K. | |
(4) The amount of revenue support grant to be paid to a specified body | |
in accordance with subsection (2) shall be paid at such time, or in | |
instalments of such amounts and at such times, as the Assembly may | 25 |
determine. | |
(5) The time of payment under subsection (4) may be during or after the | |
financial year for which the grant is payable. | |
84J Calculation of grant payable to receiving authorities | |
(1) This section applies where the National Assembly for Wales | 30 |
publishes a local government finance report. | |
(2) As soon as is reasonably practicable after the report has been | |
published, the Assembly shall calculate in relation to each receiving | |
authority to which the report relates what sum, if any, falls to be paid | |
to the authority by way of revenue support grant for the year to | 35 |
which the report relates. | |
(3) The calculation under subsection (2) shall be in accordance with the | |
basis of distribution specified in the report. | |
(4) The Assembly may carry out the subsection (2) calculation again at | |
any time before the end of the financial year immediately following | 40 |
the one to which the report relates. | |
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(5) The power under subsection (4) may only be exercised once and | |
ceases to be exercisable if the Assembly publishes under section 84L | |
a report amending the local government finance report. | |
(6) As soon as is reasonably practicable after making a calculation under | |
subsection (2) or (4), the Assembly shall inform each receiving | 5 |
authority to which the report relates of the outcome, so far as relating | |
to it. | |
84K Payment of grant to receiving authorities | |
(1) The National Assembly for Wales shall pay any sum calculated | |
under section 84J(2) as falling to be paid by way of revenue support | 10 |
grant to a receiving authority in instalments of such amounts, and at | |
such times in the financial year for which the grant is payable, as the | |
Assembly may determine. | |
(2) Where the Assembly makes a calculation under section 84J(4) that | |
shows an increase in the sum that falls to be paid to a receiving | 15 |
authority, the Assembly shall pay the authority a sum equal to the | |
difference. | |
(3) Payment under subsection (2) shall be at such time, or in instalments | |
of such amounts and at such times, as the Assembly may determine, | |
subject to subsection (4). | 20 |
(4) The time for payment under subsection (2) must be after the end of | |
the financial year for which the grant is payable. | |
(5) Where the Assembly makes a calculation under section 84J(4) that | |
shows a decrease in the sum that falls to be paid to a receiving | |
authority, the authority shall pay to the Assembly a sum equal to the | 25 |
difference. | |
(6) The time for payment under subsection (5) shall be such day after the | |
end of the financial year for which the grant is payable as the | |
Assembly may specify. | |
84L Amending reports | 30 |
(1) Where the National Assembly for Wales has published a local | |
government finance report, the Assembly may make a report | |
containing amendments to the basis of distribution specified under | |
section 84G(2) in the published report. | |
(2) Where the Assembly has published two local government finance | 35 |
reports relating to the same financial year, the power under | |
subsection (1) may (in particular) be exercised by making a single | |
report relating to both of the published reports. | |
(3) In relation to any particular local government finance report, the | |
power under subsection (1) is exercisable— | 40 |
(a) at any time before the end of the financial year immediately | |
following the one to which the report relates, but | |
(b) only once. | |
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(4) Before making a report under this section, the Assembly shall notify | |
to such representatives of local government as appear to it to be | |
appropriate the general nature of the amendments it proposes to | |
make. | |
(5) A report made under this section shall be published by the | 5 |
Assembly. | |
(6) As soon as is reasonably practicable after the Assembly publishes | |
under this section a report relating to a local government finance | |
report, the Assembly shall send a copy of the published report to | |
each receiving authority to which the local government finance | 10 |
report relates. | |
84M Recalculation of grant following amending report | |
(1) This section applies where the National Assembly for Wales | |
publishes under section 84L a report (“the amending report”) | |
relating to a local government finance report (“the original report”). | 15 |
(2) As soon as is reasonably practicable after the Assembly publishes the | |
amending report, the Assembly shall calculate in relation to each | |
receiving authority to which the original report relates what sum, if | |
any, falls to be paid to the authority by way of revenue support grant | |
for the financial year to which the original report relates. | 20 |
(3) The calculation under subsection (2) shall be in accordance with the | |
amended basis of distribution. | |
(4) The Assembly may carry out the subsection (2) calculation again at | |
any time before— | |
(a) the end of the financial year immediately following the one to | 25 |
which the original report relates, or | |
(b) if later, the end of the period of 3 months beginning with the | |
day on which the Assembly publishes the amending report. | |
(5) The power under subsection (4) may only be exercised once. | |
(6) As soon as is reasonably practicable after making a calculation under | 30 |
subsection (2) or (4), the Assembly shall inform each receiving | |
authority to which the original report relates of the outcome, so far | |
as relating to it. | |
84N Payment of grant following amending report | |
(1) Where the National Assembly for Wales makes a calculation under | 35 |
section 84M(2) or (4) that shows an increase in the sum that falls to be | |
paid to a receiving authority, it shall pay the authority a sum equal | |
to the difference. | |
(2) Payment under subsection (1) shall be at such time, or in instalments | |
of such amounts and at such times, as the Assembly may determine, | 40 |
subject to subsection (3). | |
(3) The time for payment under subsection (2) must be after the end of | |
the financial year in which the report under section 84L was made. | |
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(4) Where the Assembly makes a calculation under section 84M(2) or (4) | |
that shows a decrease in the sum that falls to be paid to a receiving | |
authority, the authority shall pay a sum equal to the difference to the | |
Assembly. | |
(5) The time for payment under subsection (4) shall be such day after the | 5 |
end of the financial year in which the report under section 84L was | |
made as the Assembly may specify. | |
84P Information deadlines | |
(1) The National Assembly for Wales may set a deadline for the receipt | |
of information to be taken into account by it when making a | 10 |
calculation under section 84J(2) or (4) or 84M(2) or (4). | |
(2) Different deadlines may be set under subsection (1) in relation to | |
different kinds of information. | |
(3) A deadline under subsection (1) shall have effect only if the | |
Assembly informs each receiving authority concerned of the | 15 |
deadline and of the information to which it relates. | |
(4) Notification under subsection (3) may be given at any time before the | |
making of the calculation to which the deadline relates, including a | |
time before the making of a determination under section 84F for the | |
year concerned. | 20 |
(5) When making a calculation in relation to which a deadline under | |
subsection (1) has effect, the Assembly shall leave information to | |
which the deadline applies out of account if it is received after the | |
passing of the deadline.” | |
2 (1) In Schedule 8 to the Local Government Finance Act 1988 (c. 41) (non- | 25 |
domestic rates: pooling), Part 3 (distribution of non-domestic rates to be | |
dealt with in local government finance reports) is amended as follows. | |
(2) In paragraph 8(2) (meaning of “local government finance report” in Part 3 of | |
the Schedule), after “section 78A” there is inserted “or 84G”. | |
(3) In paragraph 9(4) (distributable amount to be stated in local government | 30 |
finance report), at the end there is inserted “, subject to paragraph 9A | |
below.” | |
(4) After paragraph 9 there is inserted— | |
“Years where two local government finance reports prepared for Wales | |
9A (1) Where the National Assembly for Wales publishes two local | 35 |
government finance reports for a particular financial year— | |
(a) paragraph 9(4) above does not apply in relation to Wales as | |
respects that year, and | |
(b) the Assembly shall decide whether— | |
(i) distribution among all receiving authorities of the | 40 |
amount arrived at under paragraph 9 above for the | |
year is to be dealt with in just one of those reports | |
(the chosen report), or | |
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