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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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, 71 and 73 to 75 of and Schedule 6 to 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 for item P2 or item TP2 in section 74(4) of that Act.
 
      (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.
      (8) 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.
 
      (9) For the purposes of subsection (8) 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).
 
      (10) In subsection (9) 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 (9) and any particular financial year or years.
 
      (11) 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.
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 sections 70 and 71 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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