Local Government Act 2003 (c. 26)

(The document as of February, 2008)

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(a) Chapter 1 of Part 3;

(b) sections 38 and 39, so far as relating to England;

(d) sections 87, 88, 91, 93 to 98, 113, 116 and 122;

(e) paragraphs 41 to 48, 49(a), 50(a), 52 to 54 and 81 of Schedule 7, and section 127(1) so far as relating thereto;

(f) Schedule 8, so far as relating to--

(i) section 2A of the Local Government Act 1986 (c. 10),

(ii) section 28 of the Local Government Act 1988 (c. 9),

(iii) Part 4 of Schedule 4 to the Local Government and Housing Act 1989 (c. 42),

(iv) section 25 of the Local Government Finance Act 1992,

(v) paragraphs 96 and 97 of Schedule 16 to the Local Government (Wales) Act 1994 (c. 19),

(vi) paragraph 5 of Schedule 1 to the Education Act 1996 (c. 56),

(vii) paragraph 13 of Schedule 30 to the School Standards and Framework Act 1998 (c. 31),

(viii) section 31 of the Local Government Act 1999 (c. 27) and section 136(1) of the Greater London Authority Act 1999 (c. 29), and

(ix) section 104 of the Local Government Act 2000 (c. 22),

and section 127(2) so far as relating thereto.

(3) The following provisions shall come into force on such day as the Secretary of State may by order appoint--

(a) sections 62(2) and (11), 65, 70(4) to (6), 83, 92(1), 99, 100(1), (2) and (4) to (8), 105 to 108, 109(3) and (4), 111, 112, 115 and 125;

(b) section 101, so far as relating to England and so far as relating to a best value authority in Wales mentioned in subsection (7) of that section;

(c) section 109(1), so far as relating to registered social landlords for which the Housing Corporation is the Relevant Authority for the purposes of Part 1 of the Housing Act 1996 (c. 52);

(d) Schedules 4 and 5;

(e) paragraphs 1, 10, 11, 20, 21, 24(3), 25(4) to (6), 26(3), 27, 31, 33(2) and (4), 36 to 39, 65, 68 to 78 and 80 of Schedule 7, and section 127(1) so far as relating thereto;

(f) Schedule 8, so far as consequential on any of the provisions mentioned in paragraphs (a) to (e), and section 127(2) so far as relating thereto.

(4) The following provisions shall come into force on such day as the National Assembly for Wales may by order appoint--

(a) sections 38 and 39, so far as relating to Wales;

(b) sections 40, 61(6) and (7), 63, 70(7) to (9), 75(2) to (5) and 92(2);

(c) section 101, so far as relating to a best value authority in Wales, other than one mentioned in subsection (7) of that section;

(d) section 109(1), so far as relating to registered social landlords for which the Assembly is the Relevant Authority for the purposes of Part 1 of the Housing Act 1996 (c. 52), and section 109(2);

(e) Schedule 2;

(f) paragraphs 5, 9(2), 12 to 17, 22, 24(4), 25(2) and (3), 49(b), 50(b), 51(2), 56 to 58, 66(2), 67 and 79 of Schedule 7, and section 127(1) so far as relating thereto;

(g) Schedule 8 so far as--

(i) relating to section 137(4C) of the Local Government Act 1972 (c. 70) and paragraph 30 of Schedule 15 to the Local Government (Wales) Act 1994 (c. 19), or

(ii) consequential on any of the provisions mentioned in paragraphs (a) to (f),

and section 127(2) so far as relating thereto.

(5) So far as relating to Scotland, sections 101 and 102 shall come into force on such day as the Scottish Ministers may by order appoint.

(6) The remaining provisions of this Act--

(a) so far as relating to England, shall come into force on such day as the Secretary of State may by order appoint, and

(b) so far as relating to Wales, shall come into force on such day as the National Assembly for Wales may by order appoint.

(7) Power to make orders under this section is exercisable by statutory instrument.

(8) Orders under this section may make different provision for different purposes.

(9) A person who has power under this section to appoint a day for the coming into force of a provision may by order make in connection with the coming into force of that provision such transitional provision or saving as the person considers necessary or expedient.

129 Short title and extent

(1) This Act may be cited as the Local Government Act 2003.

(2) Subject to the following provisions, this Act extends to England and Wales only.

(3) Sections 83(2), 101 and 102 extend also to Scotland.

(4) The following provisions extend also to Scotland, Northern Ireland and Gibraltar--

(a) sections 103, 104 and 128,

(b) this section, and

(5) Section 114 extends also--

(a) to Scotland, but only so far as (within the meaning of the Scotland Act 1998 (c. 46)) it confers or removes functions exercisable otherwise than in or as regards Scotland, and

(b) to Northern Ireland.

(6) Each of sections 123 and 124, so far as relating to any other provision of this Act, has the same extent as that other provision.

(7) Except as provided by subsection (8), any amendment, repeal or revocation made by this Act has the same extent as the enactment or instrument to which it relates.

(8) Subsection (7) does not apply to--

(a) sections 85, 113(3), 114 and 121(a),

(b) paragraphs 8 and 53 of Schedule 7, and

(i) the Fire Services Act 1947 (c. 41),

(ii) section 7(1) of the Fire Services Act 1959 (c. 44), and

(iii) section 33 of the Local Government Act 1988 (c. 9).

SCHEDULES

Section 19

SCHEDULE 1 Capital finance: parish and community councils and charter trustees

Introductory

1 The following are local authorities for the purposes of this Schedule--

(a) a parish council;

(b) a community council;

Borrowing

2 (1) Subject to sub-paragraph (2), a local authority may borrow money--

(a) for any purpose relevant to its functions under any enactment, or

(b) for the purposes of the prudent management of its financial affairs.

(2) A local authority may only borrow money (whether under sub-paragraph (1) or otherwise)--

(a) for a purpose or class of purpose approved for the purposes of this provision by the appropriate person, and

(b) in accordance with any conditions subject to which the approval is given.

(3) Sub-paragraph (2) does not apply--

(a) to borrowing by way of temporary loan or overdraft from a bank or otherwise of sums which a local authority may temporarily require--

(i) for the purpose of meeting expenses pending the receipt of revenues receivable by it in respect of the period of account in which the expenses are chargeable, or

(ii) for the purpose of meeting expenses intended to be met by means of borrowing in accordance with approval under sub-paragraph (2), or

(b) to borrowing for the purpose of repaying money borrowed in accordance with approval under sub-paragraph (2), where the new borrowing takes place during the fixed period relating to the existing borrowing.

(4) A local authority's functions under this paragraph shall be discharged only by the authority.

3 (1) Where a local authority meets any expenditure by borrowing, it shall in each financial year debit the appropriate amount to the account from which that expenditure would otherwise fall to be met; but that duty shall not prevent the authority debiting a larger amount to that account.

(2) The appropriate amount for the purposes of sub-paragraph (1) is a sum equivalent to an instalment of principal and interest combined such that if paid annually it would secure the payment of interest at the due rate on the outstanding principal together with the repayment of the principal not later than the end of the fixed period.

(3) Sub-paragraph (1) has effect subject to sub-paragraph (4) if--

(a) a local authority makes an advance to any other person and the expenditure incurred in making the advance is met by borrowing, and

(b) the terms of that advance are such that repayment is to be made otherwise than by equal instalments of principal and interest combined.

(4) The local authority may debit to the account from which the expenditure met by the borrowing would otherwise fall to be met sums of different amounts (whether or not including instalments of principal) in respect of different financial years in order to take account of the terms on which its advance falls to be repaid.

Loans

4 (1) A local authority may lend to a qualifying local government body, on such terms as they may agree, such sums as the body may require for any purpose for which it is authorised by or under any enactment to borrow money.

(2) In sub-paragraph (1), "qualifying local government body" means a body with local government functions which is specified for the purposes of this paragraph by regulations made by the appropriate person.

"Fixed period"

5 In this Schedule, references to the fixed period, in relation to borrowing by a local authority, are to the period within which the money borrowed is to be repaid as determined by the local authority with the consent of the appropriate person.

Section 40

SCHEDULE 2 Welsh local government finance reports

1 In Part 5 of the Local Government Finance Act 1988 (c. 41) (grants), after section 84C there is inserted--

" Chapter 3 Revenue support grant: wales

84D Application of Chapter 3

This Chapter applies only in relation to Wales.

84E Revenue support grant: Wales

(1) The National Assembly for Wales shall pay a grant for each financial year to--

(a) receiving authorities, and

(b) specified bodies.

(2) Grant under this section shall be known as revenue support grant.

(3) Revenue support grant shall be payable in accordance with this Chapter.

84F Determination of grant

(1) The National Assembly for Wales shall for each financial year make--

(a) a determination under subsection (2), or

(b) a determination under each of subsections (3) and (4).

(2) A determination under this subsection shall state--

(a) the total amount of revenue support grant for the year,

(b) the amount of the grant the Assembly proposes to pay to receiving authorities, and

(3) A determination under this subsection shall state--

(a) the total amount of revenue support grant for the year for--

(i) receiving authorities other than police authorities, and

(ii) specified bodies,

(b) the amount of the grant the Assembly proposes to pay to receiving authorities that are not police authorities, and

(4) A determination under this subsection shall state the total amount of revenue support grant for the year for police authorities.

(5) Before making a determination under this section, the Assembly shall consult such representatives of local government as appear to it to be appropriate.

(6) Different amounts may be stated under subsection (2)(c) or (3)(c) in relation to different specified bodies.

(7) In this section "police authority" means a police authority established under section 3 of the Police Act 1996.

84G Local government finance reports

(1) The National Assembly for Wales shall specify a determination under section 84F in a report, to be called a local government finance report.

(2) A local government finance report shall also specify the basis on which the Assembly proposes to distribute among the receiving authorities to which the report relates the amount stated under section 84F(2)(b) or, as the case may be, section 84F(3)(b) or (4).

(3) Before making a report under this section, the Assembly shall notify the general nature of the basis of distribution proposed to be specified in the report to such representatives of local government as appear to it to be appropriate.

(4) A report made under this section shall be published by the Assembly.

(5) As soon as is reasonably practicable after a report is published under subsection (4), the Assembly shall send a copy of the report to each of the receiving authorities to which the report relates.

84H Effect of publication of local government finance report

(1) This section applies where the National Assembly for Wales publishes a local government finance report.

(2) The Assembly shall pay revenue support grant for the year to which the report relates in accordance with the determination specified in the report.

(3) The amount of revenue support grant to be paid to receiving authorities in accordance with subsection (2) shall be distributed among, and paid to, them in accordance with sections 84J and 84K.

(4) The amount of revenue support grant to be paid to a specified body in accordance with subsection (2) shall be paid at such time, or in instalments of such amounts and at such times, as the Assembly may determine.

(5) The time of payment under subsection (4) may be during or after the financial year for which the grant is payable.

84J Calculation of grant payable to receiving authorities

(1) This section applies where the National Assembly for Wales publishes a local government finance report.

(2) As soon as is reasonably practicable after the report has been published, the Assembly shall calculate in relation to each receiving authority to which the report relates what sum, if any, falls to be paid to the authority by way of revenue support grant for the year to which the report relates.

(3) The calculation under subsection (2) shall be in accordance with the basis of distribution specified in the report.

(4) The Assembly may carry out the subsection (2) calculation again at any time before the end of the financial year immediately following the one to which the report relates.

(5) The power under subsection (4) may only be exercised once and ceases to be exercisable if the Assembly publishes under section 84L a report amending the local government finance report.

(6) As soon as is reasonably practicable after making a calculation under subsection (2) or (4), the Assembly shall inform each receiving authority to which the report relates of the outcome, so far as relating to it.

84K Payment of grant to receiving authorities

(1) The National Assembly for Wales shall pay any sum calculated under section 84J(2) as falling to be paid by way of revenue support grant to a receiving authority in instalments of such amounts, and at such times in the financial year for which the grant is payable, as the Assembly may determine.

(2) Where the Assembly makes a calculation under section 84J(4) that shows an increase in the sum that falls to be paid to a receiving authority, the Assembly shall pay the authority a sum equal to the difference.

(3) Payment under subsection (2) shall be at such time, or in instalments of such amounts and at such times, as the Assembly may determine, subject to subsection (4).

(4) The time for payment under subsection (2) must be after the end of the financial year for which the grant is payable.

(5) Where the Assembly makes a calculation under section 84J(4) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay to the Assembly a sum equal to the difference.

(6) The time for payment under subsection (5) shall be such day after the end of the financial year for which the grant is payable as the Assembly may specify.

84L Amending reports

(1) Where the National Assembly for Wales has published a local government finance report, the Assembly may make a report containing amendments to the basis of distribution specified under section 84G(2) in the published report.

(2) Where the Assembly has published two local government finance reports relating to the same financial year, the power under subsection (1) may (in particular) be exercised by making a single report relating to both of the published reports.

(3) In relation to any particular local government finance report, the power under subsection (1) is exercisable--

(a) at any time before the end of the financial year immediately following the one to which the report relates, but

(b) only once.

(4) Before making a report under this section, the Assembly shall notify to such representatives of local government as appear to it to be appropriate the general nature of the amendments it proposes to make.

(5) A report made under this section shall be published by the Assembly.

(6) As soon as is reasonably practicable after the Assembly publishes under this section a report relating to a local government finance report, the Assembly shall send a copy of the published report to each receiving authority to which the local government finance report relates.

84M Recalculation of grant following amending report

(1) This section applies where the National Assembly for Wales publishes under section 84L a report ("the amending report") relating to a local government finance report ("the original report").

(2) As soon as is reasonably practicable after the Assembly publishes the amending report, the Assembly shall calculate in relation to each receiving authority to which the original report relates what sum, if any, falls to be paid to the authority by way of revenue support grant for the financial year to which the original report relates.

(3) The calculation under subsection (2) shall be in accordance with the amended basis of distribution.

(4) The Assembly may carry out the subsection (2) calculation again at any time before--

(a) the end of the financial year immediately following the one to which the original report relates, or

(b) if later, the end of the period of 3 months beginning with the day on which the Assembly publishes the amending report.

(5) The power under subsection (4) may only be exercised once.

(6) As soon as is reasonably practicable after making a calculation under subsection (2) or (4), the Assembly shall inform each receiving authority to which the original report relates of the outcome, so far as relating to it.

84N Payment of grant following amending report

(1) Where the National Assembly for Wales makes a calculation under section 84M(2) or (4) that shows an increase in the sum that falls to be paid to a receiving authority, it shall pay the authority a sum equal to the difference.

(2) Payment under subsection (1) shall be at such time, or in instalments of such amounts and at such times, as the Assembly may determine, subject to subsection (3).

(3) The time for payment under subsection (2) must be after the end of the financial year in which the report under section 84L was made.

(4) Where the Assembly makes a calculation under section 84M(2) or (4) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay a sum equal to the difference to the Assembly.

(5) The time for payment under subsection (4) shall be such day after the end of the financial year in which the report under section 84L was made as the Assembly may specify.

84P Information deadlines

(1) The National Assembly for Wales may set a deadline for the receipt of information to be taken into account by it when making a calculation under section 84J(2) or (4) or 84M(2) or (4).

(2) Different deadlines may be set under subsection (1) in relation to different kinds of information.

(3) A deadline under subsection (1) shall have effect only if the Assembly informs each receiving authority concerned of the deadline and of the information to which it relates.

(4) Notification under subsection (3) may be given at any time before the making of the calculation to which the deadline relates, including a time before the making of a determination under section 84F for the year concerned.

(5) When making a calculation in relation to which a deadline under subsection (1) has effect, the Assembly shall leave information to which the deadline applies out of account if it is received after the passing of the deadline. "

2 (1) In Schedule 8 to the Local Government Finance Act 1988 (c. 41) (non-domestic rates: pooling), Part 3 (distribution of non-domestic rates to be dealt with in local government finance reports) is amended as follows.

(2) In paragraph 8(2) (meaning of "local government finance report" in Part 3 of the Schedule), after "section 78A" there is inserted "or 84G".

(3) In paragraph 9(4) (distributable amount to be stated in local government finance report), at the end there is inserted ", subject to paragraph 9A below."

(4) After paragraph 9 there is inserted--

" Years where two local government finance reports prepared for Wales

9A (1) Where the National Assembly for Wales publishes two local government finance reports for a particular financial year--

(a) paragraph 9(4) above does not apply in relation to Wales as respects that year, and

(b) the Assembly shall decide whether--

(i) distribution among all receiving authorities of the amount arrived at under paragraph 9 above for the year is to be dealt with in just one of those reports (the chosen report), or

(ii) each of those reports is to deal with the distribution of so much of that amount as is for the receiving authorities to which that report relates.

(2) If the Assembly decides as mentioned in sub-paragraph (1)(b)(i) above--

(a) the Assembly shall specify that amount (the distributable amount for the year) in the chosen report, and

(b) the chosen report is the local government finance report for that year to which the requirement under paragraph 10(1) below applies.

(3) If the Assembly decides as mentioned in sub-paragraph (1)(b)(ii) above--

(a) paragraphs 10 and 11 below do not apply in relation to Wales as respects the year (but see paragraphs 11A to 11C below),

(b) the power under paragraph 13 below may (in particular) be exercised by making a single amending report relating to both of the local government finance reports for the year, and

(c) paragraph 14 below does not apply in relation to any report amending either of those reports (but see paragraph 14A below). "

(5) In paragraph 11(1)(a) (paragraph applies where distributable amount specified in accordance with paragraph 9), for "paragraph 9" there is substituted "paragraphs 9 and 9A(2)".

(6) After paragraph 11 there is inserted--

" 11A (1) Where the National Assembly for Wales proposes to publish two local government finance reports for a particular financial year and as respects that year decides as mentioned in paragraph 9A(1)(b)(ii) above, the Assembly shall in each of those reports--

(a) specify the amount for the year arrived at under paragraph 9 above,

(b) specify how much of that amount is for the receiving authorities to which the report relates, and

(c) specify the basis on which the Assembly proposes to distribute among those authorities the amount specified under paragraph (b) above.

(2) Before making such a report as is mentioned in sub-paragraph (1) above, the Assembly shall notify the general nature of the basis of distribution proposed to be specified in the report to such representatives of local government as appear to the Assembly to be appropriate.

11B (1) This paragraph applies where the National Assembly for Wales--

(a) publishes a local government finance report that is one of two being published by it for a particular financial year, and

(b) as respects that year decides as mentioned in paragraph 9A(1)(b)(ii) above.

(2) The amount specified under paragraph 11A(1)(b) above in the report shall be distributed among and paid to the receiving authorities to which the report relates in accordance with this paragraph and paragraph 12 below.

(3) As soon as is reasonably practicable after the report is published, the Assembly shall calculate in relation to each of those authorities what sum falls to be paid to the authority as its share of the amount specified under paragraph 11A(1)(b) above.

(4) The calculation under sub-paragraph (3) above shall be in accordance with the basis of distribution specified in the report.

(5) The Assembly may carry out the sub-paragraph (3) calculation again at any time before the end of the financial year immediately following the one to which the report relates.

(6) The power under sub-paragraph (5) above may only be exercised once and ceases to be exercisable if the Assembly publishes under paragraph 13 below a report amending the report.

(7) As soon as is reasonably practicable after making a calculation under sub-paragraph (3) or (5) above, the Assembly shall inform each receiving authority to which the report relates of the outcome, so far as relating to it.

11C (1) The National Assembly for Wales may set a deadline for the receipt of information to be taken into account by it when making a calculation under paragraph 11B(3) or (5) above.

(2) Different deadlines may be set under sub-paragraph (1) above in relation to different kinds of information.

(3) A deadline under sub-paragraph (1) above shall only have effect if the Assembly informs each receiving authority concerned of the deadline and of the information to which it relates.

(4) Notification under sub-paragraph (3) above may be given at any time before the making of the calculation to which the deadline relates, including a time before the distributable amount for the year is calculated under paragraph 9 above.

(5) When making a calculation in relation to which a deadline under sub-paragraph (1) above has effect, the Assembly shall leave information to which the deadline applies out of account if it is received after the passing of the deadline. "

(7) In paragraph 12(1) (duty to pay amounts calculated under paragraph 11(3)), after "11(3)" there is inserted "or 11B(3)".

(8) In paragraph 12, in each of sub-paragraphs (3) and (5) (cases where recalculation shows different amount to be due)--

(a) after "11(4)" there is inserted "or 11B(5)", and

(b) after "11(3)" there is inserted "or 11B(3)".

(9) After paragraph 14 there is inserted--

" 14A (1) This paragraph applies where--

(a) a report is made under paragraph 13 above amending a report ("the original report") that is one of two local government finance reports that the National Assembly for Wales publishes for a particular financial year, and

(b) as respects that year the Assembly decides as mentioned in paragraph 9A(1)(b)(ii) above.

(2) As soon as is reasonably practicable after the amending report is published by the Assembly, the Assembly shall calculate in relation to each of the authorities to which the original report relates what sum falls to be paid to the authority as its share of the amount specified under paragraph 11A(1)(b) above in the original report.

(3) The calculation under sub-paragraph (2) above shall be in accordance with the amended basis of distribution.

(4) The Assembly may carry out the sub-paragraph (2) calculation again at any time before--

(a) the end of the financial year immediately following the one to which the original report relates, or

(b) if later, the end of the period of 3 months beginning with the day on which the Assembly publishes the amending report.

(5) The power under sub-paragraph (4) above may only be exercised once.

(6) Paragraphs 11B(7) and 11C above apply in relation to calculations made under sub-paragraphs (2) and (4) above as they apply in relation to calculations made under paragraph 11B(3) and (5) above. "

(10) In paragraph 15(1) (paragraph applies where calculation made under paragraph 14(1) or (2)), after "14(1) or (2)" there is inserted "or 14A(2) or (4)".

(11) In paragraph 15(6) (meaning of "the relevant previous calculation")--

(a) after "14(1)" (in each place) there is inserted "or 14A(2)",

(b) after "11(3)" there is inserted "or 11B(3)",

(d) after "14(2)" (in each place) there is inserted "or 14A(4)".

Section 100

SCHEDULE 3 Amendment of powers exercisable in relation to local authorities

Local Government and Housing Act 1989 (c. 42)

1 The Local Government and Housing Act 1989 is amended as follows.

2 In section 67 (orders under Part 5), at the end there is inserted--

" (5) The power under subsection (4) above to make differential provision includes, in particular, power to make different provision for different local authorities or descriptions of local authority. "

3 In section 70 (requirements for companies under control or subject to influence of local authorities), at the end there is inserted--

" (6) An order under subsection (1) may be made in relation to--

(a) all local authorities,

(b) particular local authorities, or

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