Local Government (Scotland) Act 1966

PART II The resources element

1 The resources element shall be payable to a county council in respect of the landward area of the county and to a town council in respect of the area of the burgh, but shall not be payable to any local authority for any year unless the product of a rate of one penny in the pound for the area of the authority for that year is less than the standard penny rate product for the area.

2 The amount of the resources element payable to a local authority for any year shall be the amount which bears to the relevant local expenditure of the authority for that year the same proportion as the difference between the rate products mentioned in paragraph 1 above bears to the standard penny rate product for the area of the authority for that year.

3 (1) A county council shall, out of any resources element paid to them for any year, pay to the council of any district in the county an amount which bears to the amount of the resources element which was so paid (or would have been so paid if no reduction under paragraph 4 below had been made) the same proportion as the expenditure of the district council for that year bears to the relevant local expenditure for the landward area of the county for that year.

(2) In this paragraph—

• " district " has the same meaning as in the [1947 c. 43.] Local Government (Scotland) Act 1947;

• " expenditure " in relation to a district council for any year means so much of that council's expenditure for that year as is reckoned in calculating the relevant local expenditure for that year for the landward area of the county in which the district is situated.

4 (1) Where for any year the actual rent income of a county council or town council is less than the council's notional rent income, the relevant local expenditure of the council shall be calculated for the purposes of this Part of this Schedule as if the council's notional rent income were substituted for the council's actual rent income.

(2) In this paragraph " actual rent income " has the same meaning as in section 3(3)(a) of the Act of 1963, and the notional rent income of a council shall be calculated on such basis as may be prescribed.

5 For the purposes of this Part of this Schedule the relevant local expenditure in relation to any area for any year is so much of the total expenditure for the year as would fall to be met out of moneys raised by rates levied in the area if no resources element were payable to the local authority concerned.