Local Government Bill - continued        House of Lords
SCHEDULE 1, LIMITATION OF COUNCIL TAX AND PRECEPTS - continued
PART I, THE NEW CHAPTER - continued
Nomination - continued

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Designation after nomination.     52M. - (1) This section applies if the Secretary of State-
 
 
    (a) nominates an authority under section 52D(2)(b) above, and
 
    (b) decides to proceed under this section in relation to the authority.
      (2) He shall-
 
 
    (a) designate the authority as regards the financial year immediately following the year under consideration;
 
    (b) determine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;
 
    (c) determine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.
      (3) In making the determinations under subsection (2) above he shall take into account-
 
 
    (a) 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, and
 
    (b) any information he thinks is relevant.
      (4) He shall notify the authority in writing of-
 
 
    (a) the designation;
 
    (b) the amount determined under subsection (2)(b) above;
 
    (c) the target amount determined under subsection (2)(c) above;
 
    (d) any information taken into account under subsection (3)(b) above;
 
    (e) the financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);
 
    (f) the period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.
      (5) A designation under this section-
 
 
    (a) is invalid unless subsection (4) 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.
      (6) If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.
 
      (7) If-
 
 
    (a) an authority has been designated under this section as regards a financial year, and
 
    (b) after the designation is made the authority makes calculations or substitute calculations in relation to the year,
  the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).
 
      (8) Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that-
 
 
    (a) for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or
 
    (b) it accepts the maximum amount stated under subsection (4)(b) above.
      (9) The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.
 
No designation after nomination.     52N. - (1) This section applies if the Secretary of State-
 
 
    (a) nominates an authority under section 52D(2)(b) above, and
 
    (b) decides to proceed under this section in relation to the authority.
      (2) He shall determine an amount which he proposes should be the notional amount calculated by the authority as its budget requirement for the year under consideration.
 
      (3) In making the determination he shall take into account-
 
 
    (a) the amount which he would have proposed as the maximum for the amount calculated by the authority as its budget requirement for the year under consideration if he had designated it as regards that year under section 52D(2)(a) above, and
 
    (b) any information he thinks is relevant.
      (4) He shall notify the authority in writing of-
 
 
    (a) the amount determined under subsection (2) above;
 
    (b) the amount mentioned in subsection (3)(a) above;
 
    (c) any information taken into account under subsection (3)(b) above.
      (5) Before the end of the period of 21 days beginning with the day it receives a notification under subsection (4) above an authority may inform the Secretary of State by notice in writing that, for reasons stated in the notice, it believes the notional amount stated under subsection (4)(a) above should be such as the authority states in its notice.
 
      (6) After the end of the period mentioned in subsection (5) above the Secretary of State-
 
 
    (a) shall, if he receives a notice under subsection (5) above, reconsider his determination under subsection (2) above (taking the notice into account);
 
    (b) shall notify the authority in writing of the amount which is to be the notional amount calculated by the authority as its budget requirement for the year under consideration.
      (7) A notification under subsection (6) above shall be treated as made at the beginning of the day on which the authority receives it.
 
      (8) In applying this Chapter at any time after a notification is made under subsection (6) above of the amount which is to be the notional amount calculated by the authority as its budget requirement for a financial year, the amount calculated by the authority as its budget requirement for that year shall be taken to be the notional amount notified.
 
 
Designation after previous designation
Designation after previous designation.     52P. - (1) This section applies if-
 
 
    (a) the Secretary of State designates an authority as regards a year under section 52D(2)(a) above or section 52M above or this section, and
 
    (b) the amount calculated by the authority as its budget requirement for the year exceeds the target amount for the year.
      (2) He may designate the authority as regards the financial year immediately following the year mentioned in subsection (1) above, and if he does so he shall-
 
 
    (a) determine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;
 
    (b) determine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.
      (3) In making the determinations under subsection (2) above he shall take into account-
 
 
    (a) the amount calculated by the authority as its budget requirement for the year mentioned in subsection (1) above,
 
    (b) the target amount for that year, and
 
    (c) any information he thinks is relevant.
      (4) He shall notify the authority in writing of-
 
 
    (a) the designation;
 
    (b) the amount determined under subsection (2)(a) above;
 
    (c) the target amount determined under subsection (2)(b) above;
 
    (d) any information taken into account under subsection (3)(c) above;
 
    (e) the financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);
 
    (f) the period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.
      (5) A designation under this section-
 
 
    (a) is invalid unless subsection (4) 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.
      (6) If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.
 
      (7) If-
 
 
    (a) an authority has been designated under this section as regards a financial year, and
 
    (b) after the designation is made the authority makes calculations or substitute calculations in relation to the year,
  the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).
 
      (8) Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that-
 
 
    (a) for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or
 
    (b) it accepts the maximum amount stated under subsection (4)(b) above.
      (9) The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.
 
      (10) In applying subsections (1)(b) and (3)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time designation is proposed.
 
      (11) References in this section to the target amount for the year mentioned in subsection (1) above are to the amount stated (or last stated) as the target amount for the year under section 52E or 52F, or under section 52M or 52Q, or under this section or section 52Q, as the case may be.
 
 
Position after designation under section 52M or 52P
Challenge of maximum amount.     52Q. - (1) This section applies if-
 
 
    (a) an authority designated under section 52M above informs the Secretary of State by notice in writing under subsection (8)(a) of that section, or
 
    (b) an authority designated under section 52P above informs the Secretary of State by notice in writing under subsection (8)(a) of that section.
      (2) After considering any information falling within subsection (3) below the Secretary of State-
 
 
    (a) 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;
 
    (b) may alter the target amount for the year.
      (3) Information falling within this subsection is-
 
 
    (a) information which is supplied by the authority and is of a kind and provided in a form specified by the Secretary of State for the purposes of this section;
 
    (b) any other information he thinks is relevant.
      (4) The following paragraphs apply for the purposes of subsection (2) above-
 
 
    (a) if the authority has already calculated an amount as its budget requirement for the year, the amount stated under subsection (2)(a) above may not exceed the amount already calculated unless in the Secretary of State's opinion the authority failed to comply with section 32 or 43 above (as the case may be) in making the calculation;
 
    (b) subject to paragraph (a) above, the amount stated under subsection (2)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be);
 
    (c) the Secretary of State may alter the target amount for the year under subsection (2)(b) above only if the amount stated under subsection (2)(a) above is greater or smaller than that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be).
      (5) In the application of subsection (4)(a) above in relation to the Greater London Authority-
 
 
    (a) for the reference to section 43 above there shall be substituted a reference to section 70 of the Greater London Authority Act 1999, and
 
    (b) at the end there shall be added the words "or he has issued a direction for the year under section 80 of the Greater London Authority Act 1999".
      (6) 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.
      (7) 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-
 
 
    (a) the amount stated in the case of the authority concerned in the order;
 
    (b) the altered target amount for the year (if he alters it in the case of the authority concerned).
      (8) When he serves a notice under subsection (7) 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.
 
      (9) In applying subsection (4)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time of designation.
 
 
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