Local Government Finance Act 1988

Funds

89 Collection funds

(1) Every charging authority shall establish, and then maintain, a fund (to be called its collection fund) in accordance with this Part.

(2) An authority’s collection fund must be established on 1 April 1990.

(3) Section 101(1)(b) of the [1972 c. 70.] Local Government Act 1972 (delegation) shall not apply as regards the functions of an authority in relation to its collection fund.

(4) Any sum paid into an authority’s collection fund shall be used in settlement of payments which are to be met from that fund or of transfers which are to be made from it.

(5) If not immediately required for the purpose of settling those payments or transfers, the sum shall be held, invested or otherwise used in such manner as may be prescribed by regulations made by the Secretary of State.

90 Payments to and from collection funds

(1) The following shall be paid into the collection fund of an English charging authority—

(a) sums received by the authority in respect of its community charges (but not sums received by way of penalty),

(b) sums received by the authority in respect of any non-domestic rate under this Act,

(c) sums received by the authority under paragraph 5(10) of Schedule 8 below, regulations made under paragraph 6(5) of that Schedule, or paragraph 9 of that Schedule,

(d) sums received by the authority by way of revenue support grant,

(e) sums received by the authority by way of additional grant,

(f) sums received by the authority as interest on sums held or lent in accordance with section 89(5) above, and

(g) any other sums which the Secretary of State specifies are to be paid into an English charging authority’s collection fund.

(2) The following payments shall be met from the collection fund of an English charging authority—

(a) payments to be made by the authority in respect of the amount of any precept issued under this Act or in respect of interest on such an amount,

(b) payments to be made by the authority to the Secretary of State under paragraph 5 of Schedule 8 below,

(c) payments to be made by the authority to the Secretary of State under section 83(5) above,

(d) payments to be made by the authority to another authority under a direction under section 86(4) above,

(e) payments to be made by the authority to another person in repaying, under regulations under this Act, excess receipts by way of community charges or of non-domestic rates,

(f) payments to be made by the authority to another person in respect of interest on repayments of excess receipts by way of non-domestic rates, and

(g) any other payments which are to be made by the authority to another person and which the Secretary of State specifies are to be met from an English charging authority’s collection fund.

(3) The following shall be paid into the collection fund of a Welsh charging authority —

(a) sums received by the authority in respect of its community charges (but not sums received by way of penalty),

(b) sums received by the authority as interest on sums held or lent in accordance with section 89(5) above, and

(c) any other sums which the Secretary of State specifies are to be paid into a Welsh charging authority’s collection fund.

(4) The following payments shall be met from the collection fund of a Welsh charging authority —

(a) payments to be made by the authority in respect of the amount of any precept issued under this Act or in respect of interest on such an amount,

(b) payments to be made by the authority to another person in repaying, under regulations under this Act, excess receipts by way of community charges, and

(c) any other payments which are to be made by the authority to another person and which the Secretary of State specifies are to be met from a Welsh charging authority’s collection fund.

(5) The power to specify under this section—

(a) includes power to revoke or amend a specification made under the power;

(b) may be exercised differently in relation to different authorities.

91 General funds

(1) For the purposes of this section each of the following is a relevant authority—

(a) a district council,

(b) a London borough council, and

(c) the Council of the Isles of Scilly.

(2) Every relevant authority shall establish, and then maintain, a fund (to be called its general fund) in accordance with this Part.

(3) An authority’s general fund must be established on 1 April 1990.

(4) Any sum received by a relevant authority after 31 March 1990 shall be paid into its general fund; but this does not apply to a sum which is to be paid into its collection fund or a trust fund.

(5) Any payment to be made by a relevant authority after 31 March 1990 shall be met from its general fund; but this does not apply to a payment which is to be met from its collection fund or a trust fund.

(6) After 31 March 1990 no district council or London borough council shall be required to keep a general rate fund; and the assets held in the general rate fund of such an authority immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred to its general fund on that date.

(7) After 31 March 1990 the Council of the Isles of Scilly shall not be required to keep any fund known as its general fund and required (apart from this subsection) to be kept under any order made under section 265 of the [1972 c. 70.] Local Government Act 1972; and the assets held in that fund immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred on that date to the Council’s general fund established under this section.

92 General funds: supplementary

(1) In this section “relevant authority” has the same meaning as in section 91 above.

(2) The Secretary of State may make regulations—

(a) about the relationship of a relevant authority’s general fund to its other funds;

(b) providing for assets falling within a relevant authority’s general fund to be held in separate funds within the general fund.

(3) The regulations may provide that any fund established by a relevant authority on or after 1 April 1990, other than its collection fund or a trust fund, is to be maintained as a separate fund falling within its general fund.

(4) The regulations may provide that such assets as are transferred to a relevant authority’s general fund under section 91(6) or (7) above and fall within a prescribed description shall be held in separate funds falling within the general fund; and the number and composition of the separate funds shall be such as are prescribed.

93 The City fund

(1) The Common Council shall establish, and then maintain, a fund (to be called the City fund) in accordance with this Part.

(2) The City fund must be established on 1 April 1990.

(3) Any sum received by the Common Council after 31 March 1990 shall be paid into the City fund if it is not a sum which is to be paid into its collection fund or a trust fund and—

(a) it is received in respect of the general rate, the poor rate or the St. Botolph tithe rate, or

(b) it would have fallen to be credited in aid of any of those rates had this Act not been passed.

(4) Any payment to be made by the Common Council after 31 March 1990 shall be met from the City fund if it is not a payment which is to be met from its collection fund or a trust fund and if, had this Act not been passed, it would have fallen to be met out of—

(a) the general rate, the poor rate or the St. Botolph tithe rate, or

(b) sums which, had this Act not been passed, would have fallen to be credited in aid of any of those rates.

(5) No sum shall be paid into, and no payment shall be met from, the City fund except in accordance with subsections (3) and (4) above.

(6) The assets of the Common Council subsisting immediately before1 April 1990 shall be transferred to the City fund on that date if they are assets—

(a) subsisting in respect of the general rate, the poor rate or the St. Botolph tithe rate, or

(b) representing sums credited in aid of any of those rates.

94 The City: further provisions

(1) The Secretary of State may make regulations—

(a) about the relationship of the City fund to other funds of the Common Council;

(b) providing for assets falling within the City fund to be held in separate funds within the City fund;

(c) prohibiting the Common Council from establishing funds.

(2) The regulations may provide that any fund established by the Common Council on or after 1 April 1990, and falling within a prescribed description, is to be maintained as a separate fund falling within the City fund.

(3) The regulations may provide that such assets as are transferred to the City fund under section 93(6) above and fall within a prescribed description shall be held in separate funds falling within the City fund; and the number and composition of the separate funds shall be such as are prescribed.

(4) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund into which both the following must or may be paid—

(a) sums which must be paid into the City fund under section 93(3) above, and

(b) other sums.

(5) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund from which both the following must or may be met—

(a) payments which must be met from the City fund under section 93(4) above, and

(b) other payments.