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Local Government Bill
Schedule 1 — Capital finance: parish and community councils and charter trustees

 79

 

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—

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              (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—

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              (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

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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

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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

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                    (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

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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

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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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Schedule 2 — Welsh local government finance reports

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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.

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          (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

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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

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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

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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”

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  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

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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

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       84D            Application of Chapter 3

This Chapter applies only in relation to Wales.

 

 

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Schedule 2 — Welsh local government finance reports

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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.

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              (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

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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,

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                    (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—

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                    (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

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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.

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              (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.

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              (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

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report.

              (2)             A local government finance report shall also specify the basis on

which the Assembly proposes to distribute among the receiving

 

 

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Schedule 2 — Welsh local government finance reports

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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

the general nature of the basis of distribution proposed to be

specified in the report to such representatives of local government as

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appear to it to be appropriate.

              (4)             A report made under this section shall be published by the

Assembly.

              (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

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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

publishes a local government finance report.

              (2)             The Assembly shall pay revenue support grant for the year to which

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the report relates in accordance with the determination specified in

the report.

              (3)             The amount of revenue support grant to be paid to receiving

authorities in accordance with subsection (2) shall be distributed

among, and paid to, them in accordance with sections 84J and 84K.

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              (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

determine.

              (5)             The time of payment under subsection (4) may be during or after the

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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

publishes a local government finance report.

              (2)             As soon as is reasonably practicable after the report has been

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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

which the report relates.

              (3)             The calculation under subsection (2) shall be in accordance with the

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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

the one to which the report relates.

              (5)             The power under subsection (4) may only be exercised once and

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ceases to be exercisable if the Assembly publishes under section 84L

a report amending the local government finance report.

 

 

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Schedule 2 — Welsh local government finance reports

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              (6)             As soon as is reasonably practicable after making a calculation under

subsection (2) or (4), the Assembly shall inform each receiving

authority to which the report relates of the outcome, so far as relating

to it.

       84K            Payment of grant to receiving authorities

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              (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

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.

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              (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

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

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of such amounts and at such times, as the Assembly may determine,

subject to subsection (4).

              (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

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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

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

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Assembly may specify.

       84L            Amending reports

              (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

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section 84G(2) in the published report.

              (2)             Where the Assembly has published two local government finance

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.

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              (3)             In relation to any particular local government finance report, the

power under subsection (1) is exercisable—

                    (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.

 

 

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Schedule 2 — Welsh local government finance reports

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              (5)             A report made under this section shall be published by the

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

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each receiving authority to which the local government finance

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”)

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relating to a local government finance report (“the original report”).

              (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

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for the financial year to which the original report relates.

              (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—

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                    (a)                   the end of the financial year immediately following the one to

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.

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              (6)             As soon as is reasonably practicable after making a calculation under

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

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              (1)             Where the National Assembly for Wales makes a calculation under

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

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of such amounts and at such times, as the Assembly may determine,

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.

              (4)             Where the Assembly makes a calculation under section 84M(2) or (4)

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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.

 

 

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Schedule 2 — Welsh local government finance reports

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              (5)             The time for payment under subsection (4) shall be such day after the

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

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of information to be taken into account by it when making a

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

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Assembly informs each receiving authority concerned of the

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

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year concerned.

              (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.”

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  2       (1)      In Schedule 8 to the Local Government Finance Act 1988 (c. 41) (non-

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”.

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          (3)      In paragraph 9(4) (distributable amount to be stated in local government

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

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          9A                 (1)                                    Where the National Assembly for Wales publishes two local

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—

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                             (i)                            distribution among all receiving authorities of the

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

                             (ii)                           each of those reports is to deal with the distribution

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of so much of that amount as is for the receiving

authorities to which that report relates.

                           (2)                  If the Assembly decides as mentioned in sub-paragraph (1)(b)(i)

above—

 

 

 
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