Local Government (Scotland) Act 1973

119 Initial expenses of new local authorities

(1) As soon as may be after the first election of councillors for a new local authority, each existing rating authority whose area, or part of whose area, for rating purposes falls within the area of that new local authority shall, in accordance with the provisions of this section, cause the appropriate contribution to be paid into the general fund of the new local authority.

(2) In subsection (1) above " the appropriate contribution " means—

(a) in the case of a contribution to a regional council, three quarters,

(b) in the case of a contribution to an islands council, the whole,

(c) in the case of a contribution to a district council, one quarter,

of an amount calculated in accordance with subsection (3) below.

(3) The amount referred to in subsection (2) above shall be—

(a) in a case where the whole of the area for rating purposes of the existing rating authority falls within the area of the new local authority, an amount equal to the product of a rate of 1p in the pound, or the standard penny rate product, whichever is the higher, for the first-mentioned area for the year 1973-74;

(b) in a case where a part only of the area for rating purposes of the existing rating authority falls within the area of the new local authority, an amount which bears the same proportion to the amount calculated in accordance with paragraph (a) above as the rateable valuation of that part of the first-mentioned area for the year 1973-74 bears to the rateable valuation of the whole of that area for that year.

(4) A new local authority may before 16th May 1975 borrow for the purpose of meeting any expenses incurred by them before that date.

(5) With a view to providing sums which may be transferred by an order under section 215 of this Act to one or more new local authorities, any existing rating authority may include in any rate levied by them in respect of the year 1974-75 provision to meet contingencies or to meet any expenses which, if this Act had not been passed, would have fallen to be met by the existing authority on or after 16th May 1975 and before the moneys to be received in respect of the rate for the year 1975-76 would have become available.

(6) In this section—

• " product of a rate of 1p in the pound " and " standard penny rate product " have the same meanings respectively as they have in Part I of the [1963 c. 12.] Local Government (Financial Provisions) (Scotland) Act 1963 ;

• " rateable valuation " has the meaning assigned to it by section 43(1) of the [1956 c. 60.] Valuation and Rating (Scotland) Act 1956;

• " rating authority " means a rating authority within the meaning of section 209 of the 1947 Act;

• " year " has the same meaning as in the said Act of 1963.