Levelling-up and Regeneration Act 2023

Financial matters relating to mayors

41 Mayors for CCA areas: financial matters

(1) The Secretary of State may by regulations make provision for the costs of a mayor for the area of a CCA that are incurred in, or in connection with, the exercise of mayoral functions to be met from precepts issued by the CCA under section 40 of the Local Government Finance Act 1992.

(2) The function of issuing precepts under Chapter 4 of Part 1 of the Local Government Finance Act 1992 in respect of mayoral functions is to be a function exercisable only by the mayor acting on behalf of the CCA.

(3) The Secretary of State may by regulations modify the application of Chapter 4 or 4ZA of Part 1 of the Local Government Finance Act 1992 so far as applying to cases where the precepting authority in question under that Chapter is a mayoral CCA.

(4) Where the mayoral functions of a mayor include PCC functions—

(a) the provision made by virtue of subsection (3) must include provision to ensure that the council tax requirement calculated under section 42A of the Local Government Finance Act 1992 consists of separate components in respect of the mayor’s PCC functions and the mayor’s general functions, and

(b) the function of calculating the component in respect of the mayor’s PCC functions is itself to be treated as a PCC function for the purposes of this Part.

(5) The Secretary of State may by regulations make provision—

(a) requiring the mayor to maintain a fund in relation to receipts arising, and liabilities incurred, in the exercise of general functions;

(b) about the preparation of an annual budget in relation to the exercise of general functions.

(For power to make corresponding provision in relation to PCC functions, see paragraph 7 of Schedule 3.)

(6) Provision under subsection (5)(b) may in particular include provision for—

(a) the mayor to prepare a draft budget;

(b) the draft to be scrutinised by—

(i) the other members of the CCA, and

(ii) a committee of the CCA appointed in accordance with paragraph 1(1) of Schedule 1;

(c) the making of changes to the draft as a result of such scrutiny;

(d) the approval of the draft by the CCA (including a power to veto the draft in circumstances specified in the regulations and the consequences of any such veto);

(e) the basis on which such approval is to be given.

(7) The reference in subsection (6)(b)(i) to a member of a CCA does not include a non-constituent or associate member.

(8) In this section “mayoral functions”, in relation to a mayor, means—

(a) the mayor’s general functions, and

(b) if the mayor exercises PCC functions, the mayor’s PCC functions.