Local Government Finance Bill (HC Bill 4)
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(a) paragraph 2(1) to (7), and
(b) any regulations under paragraph 2(8).
The default scheme is to take effect, in respect of dwellings
situated in the area of a billing authority, if the authority fails to
make a scheme on or before 31 January 2013 (or such other date as
is specified in section 8(4) of the Local Government Finance Act
If the default scheme takes effect in the area of a billing authority,
this Part applies to the default scheme as if it had been made by the
Revisions to and replacement of scheme
For each financial year, each billing authority must consider
whether to revise its scheme or to replace it with another scheme.
The authority must make any revision to its scheme, or any
replacement scheme, no later than 31 January in the financial year
preceding that for which the revision or replacement scheme is to
The Secretary of State may by order amend sub-paragraph (2) by
substituting a different date.
If any revision to a scheme, or any replacement scheme, has the
effect of reducing or removing a reduction to which any class of
persons is entitled, the revision or replacement must include such
transitional provision relating to that reduction or removal as the
authority thinks fit.
Paragraph 3 applies to an authority when revising a scheme as it
applies to an authority when making a scheme.
(6) References in this Part to a scheme include a replacement scheme.
Arrangements to deal with shortfall in council tax receipts
In this paragraph “scheme authority” means, in relation to a
scheme and a year—
(a) the billing authority which made the scheme, and
any major precepting authority with power to issue a
precept to that billing authority in relation to that year.
Two or more scheme authorities may make arrangements which
are to have effect if, as a result of the operation of the scheme—
there is a deficit in the billing authority’s collection fund
for that year, or
the billing authority estimates that there will be such a
(3) Arrangements under this paragraph may include—
the making of payments by one scheme authority to
another scheme authority;
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the variation of any payment or instalment of a payment
which is required to be made under regulations under
section 99 of the 1988 Act (regulations about funds).
Provision of information to the Secretary of State
The Secretary of State may serve on a billing authority in England
a notice requiring it to supply to the Secretary of State such
information as is specified in the notice and required by the
Secretary of State for the purpose of exercising, or of deciding
whether to exercise, any function relating to schemes.
The authority must supply the information required if it is in its
possession or control, and must do so in such form and manner
and at such time as the Secretary of State specifies in the notice.
If an authority fails to comply with sub-paragraph (2), the
Secretary of State may exercise the function on the basis of such
assumptions and estimates as the Secretary of State thinks fit.
In exercising, or deciding whether to exercise, any function
relating to schemes, the Secretary of State may also take into
account any other available information, whatever its source and
whether or not obtained under a provision contained in or made
under this or any other Act.
In exercising any function relating to schemes, a billing authority
must have regard to any guidance issued by the Secretary of State.
The Secretary of State may by regulations make such transitional
provision regarding the commencement of schemes as the
Secretary of State thinks fit.
Such provision may include, in particular, provision for and in
connection with treating a person who is or was in receipt of
council tax benefit as having made an application for a reduction
under a scheme.”
Part 2 Other amendments
2 The LGFA 1992 is amended as follows.
3 In section 10(1) (basic amount payable), for “13” substitute “13A”.
Section 66 (matters to be questioned only by judicial review) is amended as
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(2) After subsection (2)(b) insert—
a council tax reduction scheme, or any revision of such a
(3) In subsection (3), for “(b) to (e)” substitute “(b) or (c) to (e)”.
In section 67 (functions to be discharged only by authority), after subsection
“(aa) making or revising a council tax reduction scheme;”.
In Schedule 2 (administration), paragraph 21 (application of Schedule to
cases where section 13A applies) is amended as follows.
(2) For sub-paragraph (1) substitute—
“(1) This paragraph applies where a billing authority—
(a) makes a council tax reduction scheme, or
exercises the power under section 13A(1)(b) by
determining a class of case in which liability is to be
(3) In sub-paragraphs (2) and (3), after “Where” insert “the scheme or”.
Local Government Act 2003
Omit section 76 of the Local Government Act 2003 (insertion of section 13A
of the LGFA 1992).