The Environment Agency (Levies) (England and Wales) Regulations 2011

PART 3 Calculation of levies

Calculation of levies

6.—(1) The Agency must calculate the levy to be issued to a constituent authority for a financial year in accordance with this regulation.

(2) Where there is one constituent authority of a Regional Flood and Coastal Committee, the levy to be issued to the constituent authority is the amount of the Agency’s qualifying expenses for the area of the Committee for the financial year.

(3) Where there is more than one constituent authority of a Regional Flood and Coastal Committee, the levy to be issued to each constituent authority is calculated in accordance with the following formula—

• 

where—

A is the constituent authority’s relevant council tax base for the financial year,

B is the Agency’s qualifying expenses for the area of the Committee for the financial year, and

C is the sum of the relevant council tax bases for the financial year for all the constituent authorities of the Committee.

Relevant council tax base

7.—(1) The relevant council tax base for a financial year for a constituent authority of a Regional Flood and Coastal Committee is—

(a) if the constituent authority is a billing authority(1) in England, the council tax base for the financial year for its levy area calculated in accordance with the 1992 Regulations;

(b) if the constituent authority is a billing authority in Wales, the council tax base for the financial year for its levy area calculated in accordance with the Local Authorities (Calculation of Council Tax Base) (Wales) Regulations 1995(2);

(c) if the constituent authority is a precepting authority(3), the council tax base for the financial year for its levy area determined by—

(i) calculating, in accordance with the 1992 Regulations, the council tax base for the financial year for those parts of each billing authority’s area that fall within the levy area of the precepting authority; and

(ii) adding those amounts.

(2) In this regulation—

“levy area” means that part of a constituent authority’s area that is in the area of the Regional Flood and Coastal Committee; and

“the 1992 Regulations” means the Local Authorities (Calculation of Council Tax Base) Regulations 1992(4).

Qualifying expenses

8.—(1) The Agency may ascertain its expenses for the area of a Regional Flood and Coastal Committee for a financial year (“qualifying expenses”) by—

(a) estimating the amount of relevant expenditure for that area for the financial year;

(b) subtracting from that amount any amount that will be funded by means other than a levy;

(c) if regulation 9 applies—

(i) adding to the remainder any amount calculated under paragraph (3) of that regulation that is to be carried forward to that financial year; and

(ii) subtracting from the remainder any amount calculated under paragraph (4) of that regulation that is to be carried forward to that financial year;

(d) if regulation 10 applies—

(i) adding to the remainder the sum of any amounts apportioned to constituent authorities in that area under paragraph (3) of that regulation that, under paragraph (4) of that regulation, are to be carried forward to that financial year; and

(ii) subtracting from the remainder the sum of any amounts apportioned to constituent authorities in that area under paragraph (3) of that regulation that, under paragraph (5) of that regulation, are to be carried forward to that financial year.

(2) In this regulation—

“the remainder” means the amount calculated under paragraph (1)(b); and

“relevant expenditure”, in relation to the area of a Regional Flood and Coastal Committee for a financial year, means—

(a)

any expenditure expected to be incurred by the Agency in that financial year in connection with its flood and coastal erosion risk management functions in that area, and

(b)

an amount determined by the Agency as representing a fair proportion of—

(i)

the Agency’s administrative expenses for that financial year, and

(ii)

the amount to be spent by the Agency for that financial year for research or related activities.

Carrying forward of balances for purpose of ascertaining qualifying expenses for an area

9.—(1) This regulation applies in relation to the area of a Regional Flood and Coastal Committee unless, before 1st December in a financial year, the Agency revises the boundaries of the area in accordance with regulations made under section 22(2)(a) of the Flood and Water Management Act 2010.

(2) As soon as is reasonably practicable after the end of the financial year, the Agency must—

(a) calculate the difference (if any) between the actual expenditure in an area for a financial year and the sum of—

(i) the amount of levy revenue raised for that financial year, and

(ii) any amount carried forward to that financial year under paragraph (3) or (4); and

(b) provide the following information to the Regional Flood and Coastal Committee for the area and its constituent authorities—

(i) the actual expenditure of levy revenue in the area for that financial year,

(ii) the purposes for which the levy revenue was spent,

(iii) the sum of the amounts in sub-paragraph (a)(i) and (ii) for that financial year, and

(iv) any difference calculated under sub-paragraph (a).

(3) If the actual expenditure in an area for any financial year is greater than the sum of the amounts in paragraph (2)(a)(i) and (ii) for that financial year, the Agency may carry forward the amount of the difference to—

(a) the next financial year, if a levy for the next financial year has not yet been issued; or

(b) the financial year after the next financial year, if a levy for the next financial year has already been issued.

(4) If the actual expenditure in an area for any financial year is less than the sum of the amounts in paragraph (2)(a)(i) and (ii) for that financial year, the Agency must—

(a) carry forward the amount of the difference to—

(i) the next financial year, or

(ii) the financial year after the next financial year; or

(b) apportion the amount of the difference between each constituent authority in that area based on the proportion that the relevant council tax base for the financial year for each constituent authority bears to the sum of the relevant council tax bases for the financial year for all constituent authorities in that area, and pay those apportioned amounts to the constituent authorities.

Carrying forward of balances following revision of boundaries

10.—(1) This regulation applies if, before 1st December in a financial year, the Agency revises the boundaries of the area of a Regional Flood and Coastal Committee (“old area”) in accordance with regulations made under section 22(2)(a) of the Flood and Water Management Act 2010 to create new areas.

(2) As soon as is reasonably practicable after the end of the financial year, the Agency must—

(a) calculate the difference (if any) between the actual expenditure in the old area for the financial year and the sum of the amounts in regulation 9(2)(a)(i) and (ii) in relation to the old area for that financial year; and

(b) provide the information in regulation 9(2)(b) to—

(i) the Regional Flood and Coastal Committees for the new areas, and

(ii) any constituent authority in a new area which was a constituent authority in the old area (“the relevant constituent authorities”); and

(c) apportion the amount of any difference calculated under sub-paragraph (a) of this regulation between the relevant constituent authorities in each new area based on the proportion that the relevant council tax base for the financial year for each relevant constituent authority bears to the sum of the relevant council tax bases for the financial year for all constituent authorities in the old area (“apportioned amounts”).

(3) The Agency must—

(a) if the actual expenditure in the old area for the financial year is greater than the sum of the amounts in regulation 9(2)(a)(i) and (ii) for that financial year, carry forward the apportioned amounts in accordance with paragraph (4) of this regulation; or

(b) if the actual expenditure in the old area for the financial year is less than the sum of the amounts in regulation 9(2)(a)(i) and (ii) for that financial year—

(i) credit the apportioned amounts against any future liability of the relevant constituent authorities to pay a levy to the Agency,

(ii) pay the apportioned amounts to the relevant constituent authorities, or

(iii) carry forward the apportioned amounts in accordance with paragraph (5) of this regulation.

(4) If the actual expenditure in the old area for the financial year is greater than the sum of the amounts in regulation 9(2)(a)(i) and (ii) for that financial year, the Agency may carry forward the apportioned amounts to—

(a) the next financial year, if a levy for the next financial year has not yet been issued; or

(b) the financial year after the next financial year, if a levy for the next financial year has already been issued.

(5) If the actual expenditure in the old area for the financial year is less than the sum of the amounts in regulation 9(2)(a)(i) and (ii) for that financial year, the Agency may carry forward the apportioned amounts to—

(a) the next financial year; or

(b) the financial year after the next financial year.

(1)

Section 144 of the Local Government Finance Act 1988 provides that “billing authority” has the same meaning as in Part 1 of the Local Government Finance Act 1992.

(2)

S.I. 1995/2561, amended by S.I. 2004/3094 (W.268).

(3)

Section 144 of the Local Government Finance Act 1988 provides that “precepting authority” has the same meaning as in Part 1 of the Local Government Finance Act 1992. A lead local flood authority in Wales is not a precepting authority.

(4)

S.I. 1992/612.