Part III Financial Provisions

Chapter I Council Tax

Budget requirements

I1C1C2C3C4C5C6C785 Calculation of component and consolidated F35council tax requirements.

1

Section F2342A of the M1Local Government Finance Act 1992 shall not apply in relation to the Authority, and the following provisions of this section and section 86 below shall have effect in relation to the Authority in place of that section.

2

In relation to each financial year, the Authority shall make the calculations required by this section.

3

The Authority must, in the case of each constituent body, that is to say—

a

F19the Assembly,

aa

the Mayor, and

b

each of the functional bodies,

calculate the aggregates required by virtue of subsections (4) and (5) below.

F23A

In subsection (3) above—

a

the reference to the Assembly is a reference to the Authority as respects the Assembly's functions (see subsection (14)),

b

the reference to the Mayor is a reference to the Authority except as respects the Assembly's functions,

and other references in this Chapter to the Mayor or the Assembly, in their capacity as constituent bodies for the purposes of the budgetary provisions, or to their functions (in that capacity), are to be construed accordingly.

4

The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

a

the expenditure the Authority estimates F3will be incurred by the body in the year in performing its functions and F4will be charged to a revenue account for the year F22in accordance with proper practicesF5(but, in the case of the Mayor or the Assembly, see also subsections (10) to (13));

b

such allowance as the Authority estimates will be appropriate for contingencies in relation to F24amounts to be charged or credited to a revenue account for the year F25in accordance with proper practices;

c

the financial reserves which the Authority estimates it will be F6appropriate to be raised by or in respect of the body in the year for meeting the body’s estimated future expenditure; and

d

such of F7the financial reserves of, or in respect of, the body as are sufficient to meet so much of the amount estimated by the Authority to be a F8revenue account deficit of or in respect of the body for any earlier financial year as has not already been provided for.

5

The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

F20a

the income which the Authority estimates will accrue to or for the body in the year and which will be credited to a revenue account for the year in accordance with proper practices, other than income which the Authority estimates will accrue in respect of any precept issued by it;

b

the amount of the body’s financial reserves which the Authority estimates F9will be used by or in respect of the body in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (4) above.

6

If, in the case of any constituent body, the aggregate calculated under subsection (4) above exceeds that calculated under subsection (5) above—

a

the Authority must calculate the amount equal to the difference; and

b

the amount so calculated shall be the body’s component F26council tax requirement for the year.

7

If, in the case of any constituent body, the aggregate calculated under subsection (4) above does not exceed that calculated under subsection (5) above, the body’s component F27council tax requirement for the year shall be nil.

8

The Authority must also calculate the aggregate of the component F28council tax requirements of each of the constituent bodies and that aggregate shall be the Authority’s consolidated F28council tax requirement for the year.

F219

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1010

Subsections (11) to (13) below have effect for the purposes of the budgetary provisions in their application in relation to the Mayor and the Assembly in their capacity as constituent bodies.

11

The expenditure that is to be regarded for the purposes of subsection (4)(a) above as incurred by the Assembly in the performance of its functions includes any expenditure by the Authority in the performance of its functions which is incurred in respect of any of the following—

a

the Assembly members,

b

the Assembly secretariat (see subsection (14)),

c

goods or services procured solely for the purposes of the Assembly,

d

the London Transport Users' Committee (see section 247 and Schedule 18),

but does not include any expenditure falling within subsection (12) below.

12

That expenditure is expenditure by the Authority in respect of any of the following—

a

accommodation provided or procured in whole or in part for the conduct of the business of the Assembly or Assembly members,

b

goods or services provided or procured for the Authority in general.

13

The expenditure that is to be regarded for the purposes of subsection (4)(a) above as incurred by the Mayor in the performance of his functions is any expenditure—

a

which is incurred by the Authority in the performance of its functions, and

b

which does not fall to be regarded for the purposes of subsection (4)(a) above as incurred by the Assembly in the performance of its functions.

14

In this section—

  • “the Assembly secretariat” means employees of the Authority who normally work as support staff for the Assembly or Assembly members;

  • “the Assembly's functions” means—

    1. a

      such of the functions of the Authority as are exercisable only by the Assembly acting on behalf of the Authority, and

    2. b

      the Assembly's function of acting jointly with the Mayor in the case of those functions of the Authority which are exercisable only by the Mayor and the Assembly acting jointly on behalf of the Authority;

  • “the budgetary provisions” means sections 85 to 87 of, and Schedule 6 to, this Act.

15

All such apportionments as may be necessary for the purpose of calculating the aggregates required by subsections (4) and (5) above in the case of the Mayor and the Assembly are to be made on a just and reasonable basis.

I286 Provisions supplemental to section 85.

1

An amount must not be brought into account under subsection (4) or (5) of section 85 above in the application of the subsection in relation to F11the Mayor or the Assembly as a constituent body if the amount (or an amount which represents it) falls to be brought into account under the same subsection in its application in relation to F12the other of them or a functional body.

F291A

In making any calculation under subsection (4) of section 85 above the Authority shall ignore payments which must be met from a trust fund.

1B

In estimating under subsection (4)(a) of section 85 above—

a

in the case of any functional body, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in respect of the body under section 43(1) of the Local Government Act 2003 or in paying any BID levy for which the body is liable, and

b

in the case of the Mayor, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in respect of the Authority under section 43(1) of the Local Government Act 2003 or in paying any BID levy for which the Authority is liable.

F431C

In estimating under subsection (4)(a) of section 85 above—

a

in the case of the Mayor, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year by the Authority in making any repayments of grants or other sums paid to the Authority by the Secretary of State, and

b

in the case of a functional body, the Authority shall take into account the amount of any expenditure which it estimates will be incurred in the year in making by or in respect of the body any repayments of grants or other sums paid to or for the body by the Secretary of State.

2

In estimating under subsection (4)(a) of section 85 above in the case of any constituent body other than the F36Mayor's Office for Policing and Crime, the Authority shall take into account the amount of any levy issued to the body for the year, but (except as provided by regulations under section 74 of the M2Local Government Finance Act 1988) shall not anticipate a levy not issued.

F132A

For the purposes of subsection (2) above, any levy issued to the Authority shall be treated as a levy issued to the Mayor.

F302B

In estimating under subsection (4)(a) of section 85 above in the case of the Mayor, the Authority shall take into account the amount of any expenditure which the Authority estimates it will incur in the year in pursuance of regulations under section 99(3) of the Local Government Finance Act 1988.

F13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

For the purposes of subsection (4)(c) of section 85 above a body’s estimated future expenditure is—

a

that which the Authority estimates F14will be incurred by in the financial year following the year in question, F15will be charged to a revenue account for the year and F16will have to be defrayed in the year before the following sums are sufficiently available, namely, sums—

i

which will be F17payable to or for it for the year; and

ii

in respect of which amounts will be credited to a revenue account for the year; and

b

that which the Authority estimates F18will be incurred by in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

F314A

In making any calculation under subsection (5) of section 85 above, the Authority must ignore payments which must be made into a trust fund.

4B

In estimating under subsection (5)(a) of section 85 above in the case of the Mayor, the Authority shall take into account—

a

the amounts which the Authority estimates will be paid to it in the year by billing authorities in accordance with regulations under section 99(3) of the Local Government Finance Act 1988, F44...

F44b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F454C

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4D

In estimating under subsection (5)(a) of section 85 above in the case of the Mayor's Office for Policing and Crime, the Authority must use such amounts as may be prescribed by the Secretary of State as the sums that are payable to the Mayor's Office for Policing and Crime in respect of the following items—

a

F42locally retained non-domestic rates,

b

revenue support grant, F37and

c

general GLA grant, F38...

F38d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F414DA

In subsection (4D) above “locally retained non-domestic rates” means the sums received by the Authority under, or under regulations under, Schedule 7B to the Local Government Finance Act 1988, or under regulations under section 99(3) of that Act in connection with the operation of that Schedule.

4E

In subsection (4D) above, “prescribed” means specified in, or determined in accordance with, either—

a

the appropriate report or determination, or

b

regulations made by the Secretary of State,

as the Secretary of State may determine in the case of any particular item and any particular financial year or years.

4F

In subsection (4E) above, “the appropriate report or determination” means—

a

in the case of an item specified in paragraph (a) or (b) of subsection (4D) above, the local government finance report for the financial year in question, F39and

b

in the case of the item specified in paragraph (c) of that subsection, the determination under section 100 below for the financial year in question, F40...

F40c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

The Secretary of State may by regulations do one or both of the following—

a

alter the constituents of any calculation to be made under subsection (4) or (5) of section 85 above (whether by adding, deleting or amending items);

b

alter the rules governing the making of any calculation under subsection F32(4F) or (5) of section 85 above (whether by deleting or amending subsections (2) to (4) above, or any of them, or by adding other provisions, or by a combination of those methods).

F336

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87 Procedure for determining the F34council tax requirements.

Schedule 6 to this Act (which contains procedural requirements for determining the component F34council tax requirements and the consolidated F34council tax requirement) shall have effect.