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Local Government Bill


Local Government Bill
Part 7 — Housing finance etc

    48

 

 88    Housing Revenue Account subsidy: payment and calculation

     (1)    For section 79(2) of the Local Government and Housing Act 1989 (c. 42)

(payment of Housing Revenue Account subsidy) there is substituted—

           “(2)              Housing Revenue Account subsidy shall be paid by the appropriate

person—

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                  (a)                 in such instalments, at such times and in such manner, and

                  (b)                 subject to such conditions as to claims, records, certificates,

supply of Housing Revenue Account business plans, audit or

otherwise,

                         as the appropriate person may determine.”

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     (2)    In section 80 of that Act (calculation of Housing Revenue Account subsidy), for

subsection (1) (subsidy to be calculated in accordance with formulae) there is

substituted—

           “(1)              The amount of Housing Revenue Account subsidy (if any) payable to a

local housing authority for a year shall be calculated in such manner as

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the appropriate person may from time to time determine.

           (1A)              A determination under subsection (1) above may (in particular)—

                  (a)                 provide for all or part of the amount to be calculated in

accordance with a formula or formulae;

                  (b)                 provide for the amount, or part of the amount, to be calculated

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by reference to—

                        (i)                        whether any Housing Revenue Account business plan

that the authority are required to prepare by any time

has been supplied to the appropriate person or has been

supplied to the appropriate person by that time;

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                        (ii)                       the appropriate person’s assessment of any Housing

Revenue Account business plan prepared by the

authority and supplied to the appropriate person;

                        (iii)                      whether conditions are met that relate to, or to the

authority’s conduct of, the authority’s finances or any

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aspect of those finances;

                        (iv)                       an assessment of the state of, or of the authority’s

conduct of, the authority’s finances or any aspect of

those finances;

                        (v)                        whether conditions are met that relate to housing

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provided by the authority, to housing functions of the

authority or to the authority’s performance in exercising

such functions;

                        (vi)                       an assessment of, or of the state of, housing provided by

the authority;

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                        (vii)                      an assessment of the authority’s performance in

exercising functions in relation to housing provided by

the authority or in otherwise exercising housing

functions;

                        (viii)                     whether, as respects housing provided by the authority,

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management functions exercisable in relation to that

housing have been entrusted to a company;

 

 

Local Government Bill
Part 7 — Housing finance etc

    49

 

                        (ix)                       whether, where such functions have been entrusted to a

company, conditions are met that relate to the

performance of the company in exercising the functions;

                        (x)                        an assessment, where such functions have been

entrusted to a company, of the performance of the

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company in exercising those functions;

                        (xi)                       assumptions as to any matter;

                  (c)                 have the effect that the amount, or part of the amount, is nil or

a negative amount;

                  (d)                 make different provision for different parts of the amount.”

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     (3)    In subsection (3) of that section (determinations of, and for the purposes of,

formulae)—

           (a)           in the words before paragraph (a), for “the Secretary of State may” there

is substituted “the appropriate person may (in particular)”, and

           (b)           the words after paragraph (c) (which are superseded by the new

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subsections (5) and (6) of that section) are omitted.

     (4)    In subsections (3)(b) and (4) of that section (provisions about formulae), for

“Secretary of State” (in each place) there is substituted “appropriate person”.

     (5)    In that section, after subsection (4) there is inserted—

           “(5)              Nothing in subsections (1A) to (4) above is to be taken as limiting the

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appropriate person’s discretion under subsection (1) above.

           (6)              The appropriate person may make a determination under subsection

(1) above, or a calculation under such a determination, on the basis of

information received by him on or before such date as he thinks fit.”

     (6)    In section 88(1) of that Act (interpretation of Part 6), after paragraph (a) there is

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inserted—

                  “(aa)                    “the appropriate person” means—

                        (i)                        in relation to England, the Secretary of State, and

                        (ii)                       in relation to Wales, the National Assembly for Wales;”.

 89    Housing Revenue Account subsidy: negative amounts

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     (1)    In Part 6 of the Local Government and Housing Act 1989 (c. 42) (housing

finance), after section 80 there is inserted—

       “80ZA  Negative amounts of subsidy payable to appropriate person

           (1)           If calculation in accordance with a determination under section 80(1)

above of the amount of Housing Revenue Account subsidy payable to

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a local housing authority for a year produces a negative amount—

                  (a)                 the authority shall for that year debit the equivalent positive

amount to their Housing Revenue Account, and

                  (b)                 pay that equivalent amount to the appropriate person.

           (2)           Amounts payable to the appropriate person under subsection (1)(b)

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above shall be paid to him in such instalments, at such times and in

such manner as he may determine.

 

 

Local Government Bill
Part 7 — Housing finance etc

    50

 

           (3)           A payment in respect of an amount payable under subsection (1)(b)

above shall be accompanied by such information as the appropriate

person may require.

           (4)           The appropriate person may charge a local housing authority interest,

at such rates and for such periods as he may determine, on any sum

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payable to him under subsection (1)(b) above that is not paid by such

time as may be determined under subsection (2) above for its payment.

           (5)           The appropriate person may charge a local housing authority an

amount equal to any additional costs incurred by him as a result of any

sum payable to him under subsection (1)(b) above not being paid by

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such time as may be determined under subsection (2) above for its

payment.”

     (2)    In section 80 of that Act (calculation of Housing Revenue Account subsidy),

subsection (2) (negative amounts of subsidy) is omitted.

     (3)    In Part 2 of Schedule 4 to that Act (amounts to be debited to a local housing

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authority’s Housing Revenue Account), for item 5 there is substituted—

“Item 5: sums payable under section 80ZA

                        Sums payable for the year to the Secretary of State, or the National

Assembly for Wales, under subsection (1)(b) of section 80ZA of this

Act (Housing Revenue Account subsidy of a negative amount)

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and—

                    (a)                   any interest charged on those sums under subsection (4) of

that section, and

                    (b)                   any amount charged under subsection (5) of that section in

respect of costs incurred as a result of late payment of any of

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those sums.”

     (4)    In section 141(8) of the Local Government Finance Act 1988 (c. 41) (amounts

due from authorities that may be set off against amounts due from Secretary of

State or National Assembly for Wales), for “and paragraphs 12 and 15 of that

Schedule” there is substituted “, paragraphs 12 and 15 of that Schedule and

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section 80ZA of the Local Government and Housing Act 1989 (negative

amounts of Housing Revenue Account subsidy and interest and costs where

payment made late)”.

 90    Housing Revenue Accounts etc: adaptation of enactments

     (1)    In Part 6 of the Local Government and Housing Act 1989 (c. 42) (housing

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finance), after section 87 there is inserted—

       “87A            Orders amending Part 6

           (1)                         The appropriate person may by order—

                  (a)                 amend, repeal or re-enact provisions of sections 74 to 76 and 78

of, and Schedule 4 to, this Act;

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                  (b)                 provide for any such provisions—

                        (i)                        not to apply, whether at all or in cases specified by the

order or to authorities so specified;

                        (ii)                       to apply, whether generally or in cases so specified or to

authorities so specified, subject to modifications so

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specified.

 

 

Local Government Bill
Part 8 — Miscellaneous and general
Chapter 1 — Miscellaneous

    51

 

           (2)                                       An order under this section may (in particular)—

                  (a)                 add items to, or remove items from, Part 1 or 2 of Schedule 4 to

this Act, or vary items of those Parts;

                  (b)                 confer discretions, or expand, curtail or repeal discretions

conferred, on the appropriate person or any other person;

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                  (c)                 be made before, during or after the end of any year to which it

relates.

           (3)           In subsection (2)(b) above “discretion” includes power to make a

determination or give a direction.

           (4)                         An order under this section may—

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                  (a)                 contain such incidental, consequential, transitional or

supplementary provisions (including provisions amending or

repealing enactments), and such savings, as the appropriate

person considers appropriate;

                  (b)                 make different provision for different cases or authorities.

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           (5)                         The power to make an order under this section is exercisable by

statutory instrument.

           (6)                         The Secretary of State shall not make an order under this section unless

a draft of the order has been laid before, and approved by resolution of,

each House of Parliament.”

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     (2)    In Part 4 of Schedule 4 to that Act (Housing Revenue Accounts: supplementary

provisions), paragraph 3 (which is superseded by the new section 87A) is

omitted.

 91    Local housing authority houses: rents

     (1)    In section 24(3) of the Housing Act 1985 (c. 68) (local housing authorities in

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England and Wales to have regard to private sector rents in setting rents for

their houses), after “a local housing authority” there is inserted “in Wales”.

     (2)    The National Assembly for Wales may by order repeal section 24(3) of that Act

(as amended by subsection (1)).

Part 8

30

Miscellaneous and general

Chapter 1

Miscellaneous

Charging and trading

 92    Power to charge for discretionary services

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     (1)    Subject to the following provisions, a best value authority may charge a person

for providing a service to him if—

           (a)           the authority is authorised, but not required, by an enactment to

provide the service to him, and

           (b)           he has agreed to its provision.

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Local Government Bill
Part 8 — Miscellaneous and general
Chapter 1 — Miscellaneous

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     (2)    Subsection (1) does not apply if the authority—

           (a)           has power apart from this section to charge for the provision of the

service, or

           (b)           is expressly prohibited from charging for the provision of the service.

     (3)    The power under subsection (1) is subject to a duty to secure that, taking one

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financial year with another, the income from charges under that subsection

does not exceed the costs of provision.

     (4)    The duty under subsection (3) shall apply separately in relation to each kind of

service.

     (5)    Within the framework set by subsections (3) and (4), a best value authority may

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set charges as it thinks fit and may, in particular—

           (a)           charge only some persons for providing a service;

           (b)           charge different persons different amounts for the provision of a

service.

     (6)    In carrying out functions under this section, a best value authority shall have

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regard to such guidance as the appropriate person may issue.

     (7)    The following shall be disregarded for the purposes of subsection (2)(b)—

           (a)           section 111(3) of the Local Government Act 1972 (c. 70) (subsidiary

powers of local authorities not to include power to raise money),

           (b)           section 34(2) of the Greater London Authority Act 1999 (c. 29)

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(corresponding provision for Greater London Authority), and

           (c)           section 3(2) of the Local Government Act 2000 (c. 22) (well-being

powers not to include power to raise money).

     (8)    In subsection (1), “enactment” includes an enactment comprised in

subordinate legislation (within the meaning of the Interpretation Act 1978

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(c. 30)).

 93    Power to disapply section 92(1)

     (1)    The appropriate person may by order disapply section 92(1)—

           (a)           in relation to particular descriptions of best value authority or

particular best value authorities;

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           (b)           in relation to the provision of a particular kind of service by—

                  (i)                 all best value authorities,

                  (ii)                particular best value authorities, or

                  (iii)               particular descriptions of best value authority.

     (2)    The power under subsection (1) includes power to disapply for a particular

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period.

 94    Power to trade in function-related activities through a company

     (1)    The appropriate person may by order—

           (a)           authorise best value authorities to do for a commercial purpose

anything which they are authorised to do for the purpose of carrying

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on any of their ordinary functions, and

           (b)           make provision about the persons in relation to whom authority under

paragraph (a) is exercisable.

 

 

Local Government Bill
Part 8 — Miscellaneous and general
Chapter 1 — Miscellaneous

    53

 

     (2)    No order under this section may authorise a best value authority—

           (a)           to do in relation to a person anything which it is required to do in

relation to him under its ordinary functions, or

           (b)           to do in relation to a person anything which it is authorised, apart from

this section, to do in relation to him for a commercial purpose.

5

     (3)    An order under this section may be made in relation to—

           (a)           all best value authorities, particular best value authorities or particular

descriptions of best value authority;

           (b)           all things authorised to be done for the purpose of carrying on a

particular function, particular things authorised to be done for that

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purpose or particular descriptions of thing authorised to be so done.

     (4)    Power conferred by an order under this section shall only be exercisable

through a company within the meaning of Part 5 of the Local Government and

Housing Act 1989 (c. 42) (companies in which local authorities have interests).

     (5)    A best value authority on which power is conferred by an order under this

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section shall be treated as a local authority for the purposes of Part 5 of the

Local Government and Housing Act 1989 if it would not otherwise be such an

authority, but only in relation to a body corporate through which it exercises,

or proposes to exercise, the power conferred by the order.

     (6)    In its application by virtue of subsection (5), section 70(1) of the Local

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Government and Housing Act 1989 (power to make provision about what a

company under the control, or subject to the influence of, a local authority

does) shall only apply in relation to the doing for a commercial purpose of the

thing to which the order under this section relates.

     (7)    In this section—

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                    “best value authority” does not include—

                  (a)                 a police authority established under section 3 of the Police Act

1996 (c. 16),

                  (b)                 the Common Council of the City of London in its capacity as a

police authority,

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                  (c)                 the Metropolitan Police Authority, or

                  (d)                 the London Development Agency;

                    “ordinary functions”, in relation to a best value authority, means

functions of the authority which are not functions under this section.

 95    Regulation of trading powers

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     (1)    The appropriate person may by order impose conditions in relation to the

exercise by a best value authority of—

           (a)           a power to do anything for a commercial purpose, or

           (b)           a power to do anything for such a purpose through a company.

     (2)    In exercising such a power as is mentioned in subsection (1), a best value

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authority shall have regard to such guidance as the appropriate person may

issue.

     (3)    An order under this section may be made in relation to—

           (a)           all best value authorities,

           (b)           particular best value authorities, or

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           (c)           particular descriptions of best value authority.

 

 

Local Government Bill
Part 8 — Miscellaneous and general
Chapter 1 — Miscellaneous

    54

 

     (4)    In this section, “best value authority” does not include—

           (a)           a police authority established under section 3 of the Police Act 1996

(c. 16),

           (b)           the Common Council of the City of London in its capacity as a police

authority,

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           (c)           the Metropolitan Police Authority, or

           (d)           the London Development Agency.

     (5)    In subsection (1)(b), “company” has the same meaning as in Part 5 of the Local

Government and Housing Act 1989 (c. 42).

 96    Power to modify enactments in connection with charging or trading

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     (1)    If it appears to the Secretary of State that an enactment (whenever passed or

made), other than section 92(2) or 94(2), prevents or obstructs best value

authorities—

           (a)           charging by agreement for the provision of a discretionary service, or

           (b)           doing for a commercial purpose anything which they are authorised to

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do for the purpose of carrying on any of their ordinary functions,

            he may by order amend, repeal, revoke or disapply the enactment.

     (2)    The Secretary of State may by order amend, repeal, revoke or disapply an

enactment (whenever passed or made), other than section 92, which makes in

relation to a best value authority provision for, or in connection with, power to

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charge for the provision of a discretionary service.

     (3)    The power under subsection (1) or (2) to amend or disapply an enactment

includes power to amend or disapply an enactment for a particular period.

     (4)    An order under this section may be made in relation to—

           (a)           all best value authorities,

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           (b)           particular best value authorities, or

           (c)           particular descriptions of best value authority.

     (5)    An order under subsection (1)(b) may be made in relation to—

           (a)           all things authorised to be done for the purpose of carrying on a

particular function,

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           (b)           particular things authorised to be done for that purpose, or

           (c)           particular descriptions of thing authorised to be so done.

     (6)    An order under subsection (1)(b) may not be used to authorise a best value

authority to do in relation to a person anything which it is required to do in

relation to him under its ordinary functions.

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     (7)    In exercising the power under subsection (1) or (2), the Secretary of State—

           (a)           must not make any provision which has effect in relation to Wales

unless he has consulted the National Assembly for Wales, and

           (b)           must not make any provision in relation to legislation made by the

National Assembly for Wales without the consent of the Assembly.

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     (8)    The National Assembly for Wales may submit proposals to the Secretary of

State that the power under subsection (1) or (2) should be exercised in relation

to Wales in accordance with those proposals.

 

 

 
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