Local Government Act 1974

Part I E+W The Needs Element

1 E+W [F1 Subject to paragraphs 3 and 3A below], the amount of the needs element payable for any year to a local authority shall be the aggregate of—

(a) an amount arrived at by multiplying a prescribed sum by the population of the authority’s area; and

(b) additional amounts determined in such manner as may be prescribed and attributable to such additional factors as may be prescribed for that year.

Textual Amendments

F1 Words substituted by Education Act 1980 (c. 20), Sch. 6 para. 1

2 E+W For the purposes of paragraph 1 above the Secretary of State may by regulations provide for the method of determining, for any year,—

(a) the population of a local authority’s area; and

(b) the application or operation of any additional prescribed factor in relation to a local authority.

3 (1) The need element shall be subject to adjustment, in accordance with the following provisions of this paragraph, in respect of expenditure to which this paragraph applies. E+W

(2) The Secretary of State may by regulations provide for ascertaining the aggregate of the expenditure to which this paragraph applies of all local authorities, for apportioning the aggregate among the authorities and for ascertaining the amount by which the needs element payable to each authority ought to be increased or decreased.

(3) The Secretary of State shall, in accordance with regulations made by him under this paragraph, ascertain at such time as may be specified by the regulations—

(a) the estimated amount of the increases and decreases of the needs element which ought to be made for any year, and

(b) the actual amount of those increases and decreases,

and he shall in paying the needs element for any year adjust the amount of that element in accordance with the estimated amounts so ascertained and shall in paying that element for the earliest practicable subsequent year make any adjustment necessary to offset differences between the estimated and actual amounts so ascertained.

[F2 (4) Subject to sub-paragraph (5) below, this paragraph applies to such expenditure as may be specified by regulations made by the Secretary of State, being—

(a) expenditure, other than that to which paragraph 3A below applies, incurred by local authorities in the exercise of their functions as local education authorities;

(b) expenditure incurred by local authorities on research into any of their functions, in the training of persons in matters connected with the functions of local authorities or in respect of persons to whom the training is given.

(5) Regulations specifying expenditure of any description under sub-paragraph (4) above may provide that only a specified proportion of that expenditure shall be expenditure to which this paragraph applies.]

Textual Amendments

F2 Sch. 2 para. 3(4)(5) substituted by Education Act 1980 (c. 20), Sch. 6 para. 2

[F3 3A (1) The needs element shall also be subject to adjustment, in accordance with the following provisions of this paragraph, in respect of expenditure to which this paragraph applies. E+W

(2) The Secretary of State may by regulations provide—

(a) for the determination by the Secretary of State, in advance for each year, of the amount of expenditure to which this paragraph applies which is to be taken into account for the purposes of the regulations in relation to that year;

(b) for enabling the Secretary of State to determine additional amounts of such expenditure which are to be so taken into account;

(c) for apportioning among local authorities, under or in accordance with the regulations, either the whole or a part specified by or in accordance with the regulations of—

(i) the amount determined for any year as mentioned in paragraph (a) above;

(ii) any additional amounts determined for that year as mentioned in paragraph (b) above;

and for informing local authorities of the shares apportioned to them respectively;

(d) for the determination, under or in accordance with the regulations, of the appropriate contribution of each local authority to the expenditure apportioned as mentioned in paragraph (c) above;

(e) for ascertaining the amount by which the needs element payable to each authority ought to be increased or decreased by reference to the share apportioned to it as compared with its appropriate contribution.

(3) Regulations under sub-paragraph (2) above shall provide for any determination as mentioned in paragraph (a) or (b) of that sub-paragraph to be made by the Secretary of State after consultation with such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to him to be desirable.

(4) Regulations under this paragraph may make provision requiring local authorities to furnish the Secretary of State, at such times and in such manner and form as may be specified in the regulations, with such estimates of their expenditure and with such other information required by him for the purposes of the regulations as may be so specified.

(5) The Secretary of State shall in paying the needs element for any year adjust the amount of that element (in addition to any adjustment under paragraph 3 above) in accordance with the amount ascertained as mentioned in sub-paragraph (2)(e) above.

(6) This paragraph applies to such expenditure incurred by local authorities in connection with further education of an advanced character, including the training of teachers, as may be specified for the purposes of this paragraph by or under regulations made by the Secretary of State.]

Textual Amendments

F3 Sch. 2 para. 3A inserted by Education Act 1980 (c. 20), Sch. 6 para. 3

4 E+W If, when the needs element for any year falls to be paid, it appears to the Secretary of State that the aggregate amount of that element will exceed or fall short of its aggregate amount as fixed by the relevant rate support grant order, the Secretary of State shall adjust the amount of that element payable to each local authority as nearly as may be in the proportion which the aggregate amount of the element as so fixed bears to the amount, as estimated by the Secretary of State, which would be the aggregate amount of that element for that year apart from this paragraph.