Local Government Finance Act 1992 (c. 14)

(The document as of February, 2008)

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(b) that which the authority estimates it will incur 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.

(6) References in this section to expenditure incurred by an authority shall be construed in accordance with section 41(3) of the [1989 c. 42.] Local Government and Housing Act 1989.

51 Substitute calculations

(1) A local precepting authority which has made calculations in accordance with section 50 above in relation to a financial year (originally or by way of substitute) may make calculations in substitution in relation to the year in accordance with that section.

(2) None of the substitute calculations shall have any effect if the amount calculated under section 50(4) above would exceed that so calculated in the previous calculations.

(3) Subsection (2) above shall not apply if the previous calculation under subsection (4) of section 50 above has been quashed because of a failure to comply with that section in making the calculation.

Supplemental

52 Information for purposes of Chapter IV

If the Secretary of State so requires by regulations, a billing authority shall supply prescribed information within a prescribed period to any precepting authority which has power to issue a precept to the billing authority.

Chapter V Limitation of Council Tax and Precepts

Preliminary

53 Authorities subject to designation

(1) In this Chapter any reference to an authority is a reference to a billing authority or a relevant precepting authority, that is, a major precepting authority other than the Receiver for the Metropolitan Police District.

(2) In this Chapter any reference to the amount calculated by an authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year--

(a) in the case of a billing authority, under section 32(4) above;

(b) in the case of a relevant precepting authority, under section 43(4) above.

Designation

54 Power to designate authorities

(1) As regards a financial year the Secretary of State may designate an authority if in his opinion--

(a) the amount calculated by it as its budget requirement for the year is excessive; or

(b) there is an excessive increase in the amount so calculated over the amount calculated by it as its budget requirement for the preceding financial year.

(2) A decision whether to designate an authority shall be made in accordance with principles determined by the Secretary of State and, in the case of an authority falling within any of the classes specified in subsection (3) below, those principles shall be the same either--

(a) for all authorities falling within that class; or

(b) for all of them which respectively have and have not been designated under this Chapter, or (as the case may be) Part VII of the 1988 Act, as regards the preceding financial year.

(3) The classes are--

(a) councils of metropolitan districts;

(b) councils of non-metropolitan districts;

(d) councils of outer London boroughs;

(e) county councils;

(f) metropolitan county police authorities and the Northumbria Police Authority; and

(g) metropolitan county fire and civil defence authorities.

(4) Subject to subsection (6) below, any reference in subsection (1) above to the amount calculated by a billing authority as its budget requirement for a financial year shall be construed as a reference to the amount so calculated less the aggregate amount for the year of any precepts--

(a) issued to it by local precepting authorities; or

(b) anticipated by it in pursuance of regulations under section 41 above,

which were taken into account by it in making the calculation under section 32(2) above.

(5) In construing subsection (1) above any calculation for which another has been substituted at the time designation is proposed shall be ignored.

(6) The Secretary of State may by order provide that subsection (4) above shall not apply in relation to--

(a) any financial year specified in the order; or

(b) any other financial year in so far as it provides the basis of comparison for the purposes of subsection (1)(b) above in relation to a year so specified.

(7) A statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

55 Special transitional provisions

(1) The Secretary of State may specify in a report--

(a) as regards the financial year beginning in 1993 and any authority; or

(b) as regards any subsequent financial year and any authority whose boundaries or functions have changed or will change at any time during the period consisting of that year and the preceding financial year,

the relevant notional amount, that is, the amount which in his opinion should be used as the basis of comparison for the purposes of section 54(1)(b) above in place of the basis of comparison there referred to.

(2) A report under this section--

(a) shall contain such explanation as the Secretary of State considers desirable of the calculation by him of the relevant notional amount; and

(b) shall be laid before the House of Commons.

(3) A report under this section may relate to two or more authorities and may be amended by a subsequent report under this section.

(4) If a report under this section is approved by resolution of the House of Commons, section 54(1)(b) above shall have effect, as regards the year and any authority to which the report relates, as if the relevant notional amount were the basis of comparison there referred to.

56 Designation of authorities

(1) If the Secretary of State decides under section 54 above to designate an authority he shall notify it in writing of--

(a) his decision;

(b) the principles determined under subsection (2) of that section in relation to it; and

(c) the amount which he proposes should be the maximum for the amount calculated by it as its budget requirement for the year.

(2) A designation--

(a) is invalid unless subsection (1) above is complied with; and

(b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.

(3) Where--

(a) an authority has been designated under this section; and

(b) after the designation is made the authority makes substitute calculations in relation to the year,

the substitute calculations shall be invalid unless they are made in accordance with section 60 or (as the case may be) section 61 below.

(4) Before the end of the period of 28 days beginning with the day it receives a notification under this section, an authority may inform the Secretary of State by notice in writing that--

(a) for reasons stated in the notice, it believes the maximum amount stated under subsection (1)(c) above should be such as the authority states in its notice; or

(b) it accepts the maximum amount stated under subsection (1)(c) above.

(5) References in the following provisions of this Chapter to a designated authority are to an authority designated under this section.

Maximum amounts

57 Challenge of maximum amount

(1) This section applies where a designated authority informs the Secretary of State by notice in writing under section 56(4)(a) above.

(2) After considering any information he thinks is relevant the Secretary of State shall (subject to subsection (5) below) make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed.

(3) Subject to subsection (4) below, the amount stated under subsection (2) above may be the same as, or greater or smaller than, that stated in the notice under section 56(1)(c) above.

(4) The amount stated under subsection (2) above may not exceed the amount already calculated by the authority as its budget requirement for the year unless, in the Secretary of State's opinion, the authority failed to comply with section 32 or (as the case may be) section 43 above in making the calculation.

(5) No order under this section shall be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(6) An order under this section may relate to two or more authorities.

(7) As soon as is reasonably practicable after an order under this section is made the Secretary of State shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority in the order.

(8) When he serves a notice under subsection (7) above on a precepting authority the Secretary of State shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

(9) In construing subsection (4) above any calculation for which another has been substituted at the time of designation shall be ignored.

58 Acceptance of maximum amount

(1) This section applies where a designated authority informs the Secretary of State by notice in writing under section 56(4)(b) above.

(2) As soon as is reasonably practicable after he receives the notice the Secretary of State shall serve on the authority a notice stating the amount which the amount calculated by it as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 56(1)(c) above.

(3) When he serves a notice under subsection (2) above on a precepting authority, the Secretary of State shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

59 No challenge or acceptance

(1) This section applies where the period mentioned in subsection (4) of section 56 above ends without a designated authority informing the Secretary of State by notice in writing under paragraph (a) or (b) of that subsection.

(2) As soon as is reasonably practicable after the period ends the Secretary of State shall (subject to subsection (3) below) make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 56(1)(c) above.

(3) No order under this section shall be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(4) An order under this section may relate to two or more authorities.

(5) As soon as is reasonably practicable after an order under this section is made the Secretary of State shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority in the order.

(6) When he serves a notice under subsection (5) above on a precepting authority, the Secretary of State shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

Substitute calculations

60 Duty of designated billing authority

(1) Where a billing authority has received a notice under section 57(7), 58(2) or 59(5) above, it shall make substitute calculations in relation to the year in accordance with sections 32 to 36 above, ignoring section 32(10) above for this purpose.

(2) The substitute calculations shall be made so as to secure--

(a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice; and

(b) subject to subsection (3) below, that any amount calculated under section 33(1) or 34(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations.

(3) Subsection (2)(b) above does not apply in any case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.

(4) In making substitute calculations under section 33(1) or 34(3) above, the authority must use any amount determined in the previous calculations for item P or T in section 33(1) above or item TP in section 34(3) above.

(5) For the purposes of subsection (4) above, the authority may treat any amount determined in the previous calculations for item P in section 33(1) above as increased by the amount of any sum which--

(a) it estimates will be payable for the year into its general fund in respect of additional grant; and

(b) was not taken into account by it in making those calculations.

61 Duty of designated precepting authority

(1) Where a relevant precepting authority has received a notice under section 57(7), 58(2) or 59(5) above, it shall make substitute calculations in relation to the year in accordance with sections 43 to 48 above.

(2) The substitute calculations shall be made so as to secure--

(a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice; and

(b) subject to subsection (3) below, that any amount calculated under section 44(1) or 45(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations.

(3) Subsection (2)(b) above does not apply in any case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.

(4) In making substitute calculations under section 44(1) or 45(3) above, the authority must use any amount determined in the previous calculations for item P or T in section 44(1) above or item TP in section 45(3) above.

(5) For the purposes of subsection (4) above, the authority may treat any amount determined in the previous calculations for item P in section 44(1) above as increased by the amount of any sum which--

(a) it estimates will be payable to it for the year in respect of additional grant; and

(b) was not taken into account by it in making those calculations.

62 Failure to substitute

(1) This section applies if an authority which has received a notice under section 57(7), 58(2) or 59(5) above fails to comply with section 60 or (as the case may be) section 61 above before the end of the period of 21 days beginning with the day on which it receives the notice.

(2) In the case of a billing authority, it shall have no power during the period of restriction to transfer any amount from its collection fund to its general fund and sections 97 and 98 of the 1988 Act (transfers between funds) shall have effect accordingly.

(3) In the case of a relevant precepting authority, any authority to which it has power to issue a precept shall have no power during the period of restriction to pay anything in respect of a precept issued by it for the year.

(4) For the purposes of this section the period of restriction is the period which--

(a) begins at the end of the period mentioned in subsection (1) above; and

(b) ends at the time (if any) when the authority complies with section 60 or 61 above.

Supplemental

63 Separate administration in England and Wales

(1) This Chapter shall be read as applying separately, and be administered separately, in England and Wales.

(2) In particular, for England and Wales respectively separate principles shall be determined under section 54(2) above.

(3) This Chapter shall be construed accordingly so that (for instance) references to authorities shall be read as references to those in England or Wales, as the case may be.

64 Information for purposes of Chapter V

(1) An authority shall notify the Secretary of State in writing of any amount calculated by it as its budget requirement for a financial year, whether originally or by way of substitute.

(2) A billing authority shall also notify the Secretary of State in writing of the aggregate amount for any financial year of any precepts--

(a) issued to it by local precepting authorities; or

(b) anticipated by it in pursuance of regulations under section 41 above,

which were taken into account by it in making a calculation in relation to the year under section 32(2) above.

(3) A notification under subsection (1) or (2) above must be given before the end of the period of seven days beginning with the day on which the calculation was made.

(4) The Secretary of State may serve on an authority a notice requiring it to supply to him such other information as is specified in the notice and required by him for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Chapter.

(5) The authority shall supply the information required if it is in its possession or control, and shall do so in such form and manner, and at such time, as the Secretary of State specifies in the notice.

(6) An authority may be required under subsection (4) above to supply information at the same time as it gives a notification under subsection (1) or (2) above or at some other time.

(7) If an authority fails to comply with subsection (1) or (2) above, or with subsection (5) above, the Secretary of State may decide whether to exercise his powers, and how to perform his functions, under this Chapter on the basis of such assumptions and estimates as he sees fit.

(8) In deciding whether to exercise his powers, and how to perform his functions, under this Chapter the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act.

Chapter VI Miscellaneous and Supplemental

65 Duty to consult ratepayers

(1) A relevant authority shall consult under this section persons or bodies appearing to it to be representative of persons subject to non-domestic rates under sections 43 and 45 of the 1988 Act as regards hereditaments situated in the authority's area.

(2) Consultations must be made as to each financial year, and must be about the authority's proposals for expenditure (including capital expenditure) in that financial year; and the Secretary of State may by regulations prescribe matters which are to be treated as expenditure for this purpose.

(3) In this section "relevant authority" means a billing authority or a major precepting authority other than the Receiver for the Metropolitan Police District.

(4) The duty to consult as to a financial year shall be performed--

(a) where the authority is a billing authority, before it makes calculations (otherwise than by way of substitute) in relation to the financial year under section 32 above;

(b) where the authority is a precepting authority, before it issues the first precept to be issued by it for the financial year.

(5) In performing the duty to consult, an authority shall have regard to any guidance issued by the Secretary of State concerning--

(a) persons or bodies to be regarded for the purposes of this section as representative of persons subject to non-domestic rates under sections 43 and 45 of the 1988 Act as regards hereditaments situated in the authority's area; and

(b) the timing and manner of consultations under this section.

(6) An authority shall make available to persons or bodies it proposes to consult under this section such information as may be prescribed and is in its possession or control; and it shall do so in such form and manner, and at such time, as may be prescribed.

66 Judicial review

(1) The matters mentioned in subsection (2) below shall not be questioned except by an application for judicial review.

(2) The matters are--

(a) the specification of a class of "exempt dwelling" in an order of the Secretary of State under section 4(2) above;

(b) a determination made under section 8(2) or 12(1) above;

(c) a calculation made in accordance with any of sections 32 to 37 or section 60 or any of sections 43 to 51 or section 61 above, whether originally or by way of substitute;

(d) the setting under Chapter III of this Part of an amount of council tax for a financial year, whether originally or by way of substitute; and

(e) a precept issued under Chapter IV of this Part, whether originally or by way of substitute.

(3) If on an application for judicial review the court decides to grant relief in respect of any of the matters mentioned in subsection (2)(b) to (e) above, it shall quash the determination, calculation, setting or precept (as the case may be).

67 Functions to be discharged only by authority

(1) Subject to subsection (3) below, each of the functions of an authority mentioned in subsection (2) below shall be discharged only by the authority.

(2) The functions are--

(a) making a determination under section 8(2) or 12(1) above;

(b) making a calculation in accordance with any of sections 32 to 37 or section 60 or any of sections 43 to 51 or section 61 above, whether originally or by way of substitute;

(c) setting an amount of council tax for a financial year under Chapter III of this Part, whether originally or by way of substitute; and

(d) issuing a precept under Chapter IV of this Part, whether originally or by way of substitute.

(3) The functions of an authority mentioned in subsection (2)(c) above may, if the authority so directs, be exercised by a committee of the authority appointed by it for that purpose; and as respects a committee so appointed--

(a) the number of members and their term of office shall be fixed by the authority; and

(b) each member shall be a member of the authority.

(4) Part VA (access to meetings and documents of certain authorities, committees and sub-committees) of the [1972 c. 70.] Local Government Act 1972 shall apply in relation to a committee appointed under subsection (3) above as it applies in relation to a committee appointed under section 102 of that Act.

68 Information required by Secretary of State

(1) Subsection (2) below applies where--

(a) the Secretary of State serves a notice on a relevant authority or relevant officer requiring it or him to supply to the Secretary of State information specified in the notice;

(b) the information is required by the Secretary of State for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part; and

(2) The authority or officer shall supply the information required, and shall do so in such form and manner and at such time as the Secretary of State specifies in the notice.

(3) If an authority or officer fails to comply with subsection (2) above the Secretary of State may assume the information required to be such as he sees fit; and in such a case the Secretary of State may decide in accordance with the assumption whether to exercise his powers, and how to perform his functions, under this Part.

(4) In deciding whether to exercise his powers, and how to perform his functions, under this Part the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this Part or any other enactment.

(5) In this section--

"relevant authority" means a billing authority or a precepting authority;
"relevant officer" means a proper officer (within the meaning of the [1972 c. 70.] Local Government Act 1972) of such an authority.

(6) For the purposes of this section personal information--

(a) is information which relates to an individual (living or dead) who can be identified from that information or from that and other information supplied to any person by the authority or officer concerned; and

(b) includes any expression of opinion about the individual and any indication of the intentions of any person in respect of the individual.

69 Interpretation etc. of Part I

(1) In this Part, unless the context otherwise requires--

"additional grant" has the meaning given by section 85(2) of the 1988 Act;
"billing authority" has the meaning given by section 1(2) above;
"the City" means the City of London;
"the Common Council" means the Common Council of the City;
"dwelling" has the meaning given by section 3 above;
"financial year", except in references to earlier or preceding financial years, does not include the financial year beginning in 1992 or earlier financial years;
"levy" means a levy under regulations made under section 74 of the 1988 Act;
"listing officer" shall be construed in accordance with section 20 above;
"local precepting authority" has the meaning given by section 39(2) above;
"major precepting authority" has the meaning given by section 39(1) above;
"owner" has the meaning given by section 6(5) above;
"particulars delivered document" means any document which, having been (whether before or after the passing of this Act)--
(a)
produced to the Commissioners of Inland Revenue in pursuance of section 28 of the [1931 c. 28.] Finance Act 1931; or
(b)
furnished to them in pursuance of Schedule 2 to that Act,

is for the time being in their possession or under their control;
"precepting authority" means a major precepting authority or a local precepting authority;
"redistributed non-domestic rates" means any sums payable by the Secretary of State under paragraph 12 or 15 of Schedule 8 to the 1988 Act;
"resident" has the meaning given by section 6(5) above;
"revenue support grant" has the meaning given by section 78(1) of the 1988 Act;
"special levy" means a special levy under regulations made under section 75 of the 1988 Act;
"valuation tribunal" shall be construed in accordance with section 15 above.

(2) In this Part--

(a) any reference to dwellings listed in a particular valuation band shall be construed in accordance with section 5(6) above;

(b) any reference to an amount payable in respect of council tax for any financial year includes a reference to an amount payable in respect of council tax for any period falling within that year; and

(c) any reference to a billing authority's general fund shall be construed in relation to the Common Council as a reference to the City fund.

(3) For the purposes of this Part the Inner Temple and the Middle Temple shall be taken to fall within the area of the Common Council.

(4) No provision of this Part which provides an express remedy shall prejudice any remedy available to a person (apart from that provision) in respect of a failure to observe a provision of this Part; and references in this subsection to this Part include references to instruments made under it.

Part II Council Tax: Scotland

Preliminary

70 Council tax in respect of dwellings

(1) In respect of the financial year 1993-94 and each subsequent financial year, each local authority in Scotland shall impose a tax which--

(a) shall be known as--

(i) the regional council tax;

(ii) the islands council tax; or

(iii) the district council tax,

depending upon which local authority impose it; and

(b) shall be payable in respect of dwellings situated in that authority's area.

(2) The expenses of a local authority in discharging functions under any public general Act, so far as not met otherwise or so far as not otherwise provided for in any such Act, shall be met out of the council tax imposed by the local authority under this Part.

71 Liability to be determined on a daily basis

(1) Liability to pay council tax shall be determined on a daily basis.

(2) For the purposes of determining for any day--

(a) whether any property is a chargeable dwelling;

(b) which valuation band is shown in a valuation list as applicable to any chargeable dwelling;

(d) whether any amount of council tax is subject to a discount and (if so) the amount of the discount,

it shall be assumed that any state of affairs subsisting at the end of the day had subsisted throughout the day.

Chargeable dwellings

72 Dwellings chargeable to council tax

(1) Council tax shall be payable in respect of any dwelling which is not an exempt dwelling.

(2) In this Part, "dwelling"--

(a) means any lands and heritages--

(i) which consist of one or more dwelling houses with any garden, yard, garage, outhouse or pertinent belonging to and occupied with such dwelling house or dwelling houses; and

(ii) which would, but for the provisions of section 73(1) below, be entered separately in the valuation roll;

(b) includes--

(i) the residential part of part residential subjects; and

(ii) that part of any premises which has, in terms of section 45 of the 1980 Act, been apportioned, as at 1st April 1989, as a dwelling house; and

(3) For the purposes of subsection (2) above "caravan" has the same meaning as it has in Part I of the [1960 c. 62.] Caravan Sites and Control of Development Act 1960.

(4) The Secretary of State may vary the definition of dwelling in subsection (2) above by including or excluding such lands and heritages or parts thereof or such class or classes of lands and heritages or parts thereof as may be prescribed.

(5) The Secretary of State may by order provide that in such cases as may be prescribed by or determined under the order--

(a) anything which would (apart from the order) be one dwelling shall be treated as two or more dwellings; and

(b) anything which would (apart from the order) be two or more dwellings shall be treated as one dwelling.

(6) In this Part--

"chargeable dwelling" means any dwelling in respect of which council tax is payable;
"exempt dwelling" means any dwelling of a class prescribed by an order made by the Secretary of State.

(7) For the purposes of subsection (6) above, a class of dwelling may be prescribed by reference to--

(a) the physical characteristics of dwellings;

(b) the fact that dwellings are unoccupied or are occupied for prescribed purposes or are occupied or owned by persons of prescribed descriptions; or

(8) Schedule 5 to this Act shall have effect in relation to part residential subjects.

73 Alterations to valuation roll

(1) Subject to subsection (7) below, dwellings shall not be entered in the valuation roll in respect of the financial year 1993-94 or any subsequent financial year.

(2) Dwellings in respect of which there is an entry in the valuation roll immediately before 1st April 1993 shall be deleted from the roll with effect from that date.

(3) Lands and heritages--

(a) in respect of which there is, by reason of the fact that they constitute domestic subjects within the meaning of section 2(3) of the [1987 c. 47.] Abolition of Domestic Rates Etc. (Scotland) Act 1987 ("the 1987 Act"), no entry on the roll immediately before 1st April 1993; and

(b) which are not dwellings within the meaning of section 72(2) above,

shall be entered on the valuation roll with effect from that date.

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