Local Government Bill - continued        House of Lords
SCHEDULE 1, LIMITATION OF COUNCIL TAX AND PRECEPTS - continued
PART I, THE NEW CHAPTER - continued
Designation for year under consideration - continued

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Acceptance of maximum amount.     52G. - (1) This section applies if an authority designated under section 52D(2)(a) above informs the Secretary of State by notice in writing under section 52E(5)(b) above.
 
      (2) As soon as is reasonably practicable after he receives the notice the Secretary of State shall serve on the authority a notice stating the amount which the amount calculated by it as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52E(2)(d) above.
 
      (3) When he serves a notice under subsection (2) above on a precepting authority the Secretary of State shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.
 
No challenge or acceptance.     52H. - (1) This section applies if the period mentioned in section 52E(5) above ends without an authority designated under section 52D(2)(a) above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52E(5).
 
      (2) As soon as is reasonably practicable after the period ends the Secretary of State shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52E(2)(d) above.
 
      (3) An order under this section-
 
 
    (a) shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;
 
    (b) may relate to two or more authorities.
      (4) As soon as is reasonably practicable after an order under this section is made the Secretary of State shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority concerned in the order.
 
      (5) When he serves a notice under subsection (4) above on a precepting authority the Secretary of State shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.
 
Duty of designated billing authority.     52I. - (1) If a billing authority receives a notice under section 52F(8), 52G(2) or 52H(4) 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.
 
      (2) The substitute calculations shall be made so as to secure-
 
 
    (a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and
 
    (b) that any amount calculated under section 33(1) or 34(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations.
      (3) Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.
 
      (4) In making substitute calculations under section 33(1) or 34(3) above the authority must use any amount determined in the previous calculations for item P or T in section 33(1) or item TP in section 34(3).
 
      (5) For the purposes of subsection (4) above the authority may treat any amount determined in the previous calculations for item P in section 33(1) above as increased by the amount of any sum which-
 
 
    (a) it estimates will be payable for the year into its general fund in respect of additional grant, and
 
    (b) was not taken into account by it in making those calculations.
      (6) References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).
 
Duty of designated precepting authority.     52J. - (1) If a major precepting authority receives a notice under section 52F(8), 52G(2) or 52H(4) above it shall make substitute calculations in relation to the year in accordance with-
 
 
    (a) sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above (where the authority is the Greater London Authority), or
 
    (b) sections 43 to 48 above (in any other case).
      (2) The substitute calculations shall be made so as to secure-
 
 
    (a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and
 
    (b) that any amount calculated under section 44(1) or 45(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations.
      (3) In the application of subsection (2)(b) above in relation to the Greater London Authority-
 
 
    (a) for the reference to section 44(1) above there shall be substituted a reference to section 73(2) of the Greater London Authority Act 1999, and
 
    (b) for the reference to section 45(2) or (3) above there shall be substituted a reference to section 74(3) of that Act.
      (4) Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.
 
      (5) In making substitute calculations under section 44(1) or 45(3) above the authority must use any amount determined in the previous calculations for item P or T in section 44(1) above or item TP in section 45(3) above.
 
      (6) 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 item TP2 in section 74(4) of that Act.
 
      (7) For the purposes of subsection (5) or (6) above the authority may treat any amount determined in the previous calculations for item P in section 44(1) above or item P1 in section 73(2) of the Greater London Authority Act 1999 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 or (if the authority is the Greater London Authority) in respect of the aggregate of additional grant and general GLA grant, and
 
    (b) was not taken into account by it in making those calculations.
      (8) References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).
 
Failure to substitute.     52K. - (1) This section applies if an authority which has received a notice under section 52F(8), 52G(2) or 52H(4) above fails to comply with section 52I or 52J above (as the case may be) before the end of-
 
 
    (a) the period of 35 days beginning with the day on which the authority receives the notice (where it is the Greater London Authority), or
 
    (b) the period of 21 days beginning with the day on which the authority receives the notice (in any other case).
      (2) In the case of a billing authority, it shall have no power during the period of restriction to transfer any amount from its collection fund to its general fund and sections 97 and 98 of the 1988 Act (transfers between funds) shall have effect accordingly.
 
      (3) In the case of a major precepting authority, 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 it for the year.
 
      (4) For the purposes of this section 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 section 52I or 52J above.
 
Nomination
Nomination.     52L. - (1) This section applies if the Secretary of State nominates an authority under section 52D(2)(b) above.
 
      (2) He shall notify the authority in writing of-
 
 
    (a) the nomination;
 
    (b) the set of principles determined for the authority under section 52B above;
 
    (c) the category in which the authority falls (if he determines categories under section 52B above);
 
    (d) the amount which he would have proposed as the target amount for the year under consideration if he had designated the authority as regards that year under section 52D(2)(a) above.
      (3) A nomination under section 52D(2)(b) above -
 
 
    (a) is invalid unless subsection (2) above is complied with;
 
    (b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.
      (4) After nominating all the authorities he intends to nominate the Secretary of State-
 
 
    (a) shall decide, in the case of each authority nominated, whether to proceed under section 52M or under section 52N below in relation to it;
 
    (b) may decide to proceed under different sections in relation to different authorities.
 
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