http://www.legislation.gov.uk/ukpga/1999/27/schedule/1/paragraph/1Local Government Act 1999An Act to make provision imposing on local and certain other authorities requirements relating to economy, efficiency and effectiveness; and to make provision for the regulation of council tax and precepts.1999-08-06texttext/xmlenStatute Law Database2024-05-17Expert Participation2023-12-26 SCHEDULESSCHEDULE 1 Limitation of Council Tax and PreceptsPart I The New Chapter1In Part I of the Local Government Finance Act 1992 the following Chapter shall be inserted after Chapter IVCHAPTER IVA LIMITATION OF COUNCIL TAX AND PRECEPTS Introduction Interpretation.52A1In this Chapter a reference to an authority is to—aa billing authority, orba major precepting authority.2Sections 52W and 52X below contain other interpretative provisions for the purposes of this Chapter. Designation or nomination Power to designate or nominate authorities.52B1If in the Secretary of State’s opinion the amount calculated by an authority as its budget requirement for a financial year (the year under consideration) is excessive, he may exercise his power to designate or nominate the authority under section 52D below.2The question whether the amount so calculated is excessive must be decided in accordance with a set of principles determined by the Secretary of State.3A set of principles—amay contain one principle or two or more principles;bmust constitute or include a comparison falling within subsection (4) below or comparisons each of which falls within subsection (4).4A comparison falls within this subsection if—ait is between the amount calculated by the authority as its budget requirement for the year under consideration and the amount calculated by it as its budget requirement for a financial year falling before the year under consideration;bthe earlier financial year in the comparison does not fall before that beginning with 1st April 1998.5If for the purposes of this section the Secretary of State determines categories of authorities for the year under consideration—aany principles determined for the year must be such that the same set is determined for all authorities (if more than one) falling within the same category;bas regards an authority which does not fall within any of the categories, the Secretary of State may not exercise his power to designate or nominate the authority under section 52D below by reference to the excessiveness of its budget requirement for the year.6If he does not determine such categories, any principles determined for the year under consideration must be such that the same set is determined for all authorities.7In determining categories of authorities for the year under consideration the Secretary of State shall take into account any information he thinks is relevant.8In applying this section the Secretary of State shall ignore any calculation for which another has been substituted at the time designation or nomination is proposed. Alternative notional amounts.52C1The Secretary of State may make a report specifying in relation to—aany year under consideration (within the meaning of section 52B above), andbany authority,an amount which in his opinion should be used as the basis of any comparison in applying that section in place of the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration.2References in this section to the alternative notional amount are to the amount so specified.3A report under this section—amay relate to two or more authorities;bmay be amended by a subsequent report under this section;cshall contain such explanation as the Secretary of State thinks desirable of the calculation by him of the alternative notional amount;dshall be laid before the House of Commons.4If a report under this section is approved by resolution of the House of Commons section 52B above shall have effect, as regards the year under consideration and any authority to which the report relates, as if the reference in subsection (4) to the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration were to the alternative notional amount for the year so falling. Designation or nomination.52D1This section applies if in the Secretary of State’s opinion (reached after applying section 52B above) the amount calculated by an authority as its budget requirement for the year under consideration is excessive.2In such a case he may—adesignate the authority as regards the year under consideration, orbnominate the authority.3The Secretary of State may proceed under different paragraphs of subsection (2) above in relation to different authorities. Designation for year under consideration Designation.52E1This section applies if the Secretary of State designates an authority under section 52D(2)(a) above as regards the year under consideration.2He shall notify the authority in writing of—athe designation;bthe set of principles determined for the authority under section 52B above;cthe category in which the authority falls (if he determines categories under section 52B above);dthe amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year;ethe target amount for the year, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive;fthe financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year).3A designation under section 52D(2)(a) above—ais invalid unless subsection (2) above is complied with;bshall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.4If—aan authority has been designated under section 52D(2)(a) above, andbafter 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 52I or 52J below (as the case may be).5Before the end of the period of 21 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—afor reasons stated in the notice, it believes the maximum amount stated under subsection (2)(d) above should be such as the authority states in its notice, orbit accepts the maximum amount stated under subsection (2)(d) above. Challenge of maximum amount.52F1This section applies if an authority designated under section 52D(2)(a) above informs the Secretary of State by notice in writing under section 52E(5)(a) above.2After considering any information falling within subsection (3) below the Secretary of State shall either—aproceed under subsection (4) below (in which case subsections (5) to (10) below shall also apply), orbproceed under subsection (11) below.3Information falling within this subsection is—ainformation which is supplied by the authority and is of a kind and provided in a form specified by the Secretary of State for the purposes of this section;bany other information he thinks is relevant.4If he proceeds under this subsection the Secretary of State—ashall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed;bmay alter the target amount for the year.5The following paragraphs apply for the purposes of subsection (4) above—athe amount stated under subsection (4)(a) 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 43 above (as the case may be) in making the calculation;bsubject to paragraph (a) above, the amount stated under subsection (4)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52E(2)(d) above;cthe Secretary of State may alter the target amount for the year under subsection (4)(b) above only if the amount stated under subsection (4)(a) above is greater or smaller than that stated in the notice under section 52E(2)(d) above.6In the application of subsection (5)(a) above in relation to the Greater London Authority—afor the reference to section 43 above there shall be substituted a reference to sections 70 and 71 of the Greater London Authority Act 1999, andbat the end there shall be added the words “or he has issued a direction for the year under section 80 of the Greater London Authority Act 1999”.7An order under this section—ashall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;bmay relate to two or more authorities.8As 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—athe amount stated in the case of the authority concerned in the order;bthe altered target amount for the year (if he alters it in the case of the authority concerned).9When he serves a notice under subsection (8) 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.10In applying subsection (5)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time of designation.11If the Secretary of State proceeds under this subsection he shall—acancel the designation of the authority under section 52D(2)(a) above as regards the year and notify the authority in writing of the cancellation, andbnominate the authority under section 52D(2)(b) above;and in such a case the designation under section 52D(2)(a) above and the notification under section 52E above shall be treated as not having been made. Acceptance of maximum amount.52G1This section applies if an authority designated under section 52D(2)(a) above informs the Secretary of State by notice in writing under section 52E(5)(b) above.2As 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 52E(2)(d) above.3When 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. No challenge or acceptance.52H1This section applies if the period mentioned in section 52E(5) above ends without an authority designated under section 52D(2)(a) above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52E(5).2As soon as is reasonably practicable after the period ends the Secretary of State shall 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 52E(2)(d) above.3An order under this section—ashall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;bmay relate to two or more authorities.4As 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 concerned in the order.5When he serves a notice under subsection (4) 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. Duty of designated billing authority.52I1If a billing authority receives a notice under section 52F(8), 52G(2) or 52H(4) 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.2The substitute calculations shall be made so as to secure—athat the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, andbthat 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.3Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.4In 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) or item TP in section 34(3).5For 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—ait estimates will be payable for the year into its general fund in respect of additional grant, andbwas not taken into account by it in making those calculations.6References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a). Duty of designated precepting authority.52J1If a major precepting authority receives a notice under section 52F(8), 52G(2) or 52H(4) above it shall make substitute calculations in relation to the year in accordance with—asections 70, 71 and 73 to 75 of and Schedule 6 to the Greater London Authority Act 1999 and sections 47 and 48 above (where the authority is the Greater London Authority), orbsections 43 to 48 above (in any other case).2The substitute calculations shall be made so as to secure—athat the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, andbthat 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.3In the application of subsection (2)(b) above in relation to the Greater London Authority—afor the reference to section 44(1) above there shall be substituted a reference to section 73(2) of the Greater London Authority Act 1999, andbfor the reference to section 45(2) or (3) above there shall be substituted a reference to section 74(3) of that Act.4Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.5In 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.6In making substitute calculations under section 73(2) or 74(3) of the Greater London Authority Act 1999 the authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) of that Act or for item P2 or item TP2 in section 74(4) of that Act.7For the purposes of subsection (5) 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—ait estimates will be payable to it for the year in respect of additional grant, andbwas not taken into account by it in making those calculations.8For the purposes of subsection (6) above the authority may treat any amount determined in the previous calculations—afor item P1 in section 73(2) of the Greater London Authority Act 1999, orbfor item P2 in section 74(4) of that Act,as increased by the relevant portion of any new additional grant.9For the purposes of subsection (8) above, “the relevant portion of any new additional grant” means the amount of any additional grant payable to the authority for the year which was not taken into account by the authority in making the previous calculations, but—ain the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part, andbin the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;and “special item” has the same meaning in this subsection as in sections 73 and 74 of the Greater London Authority Act 1999 (see section 74(2) of that Act).10In subsection (9) above, “prescribed” means specified in, or determined in accordance with, either—athe report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, orbregulations made by the Secretary of State under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (9) and any particular financial year or years.11References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a). Failure to substitute.52K1This section applies if an authority which has received a notice under section 52F(8), 52G(2) or 52H(4) above fails to comply with section 52I or 52J above (as the case may be) before the end of—athe period of 35 days beginning with the day on which the authority receives the notice (where it is the Greater London Authority), orbthe period of 21 days beginning with the day on which the authority receives the notice (in any other case).2In 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.3In the case of a major 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.4For the purposes of this section the period of restriction is the period which—abegins at the end of the period mentioned in subsection (1) above, andbends at the time (if any) when the authority complies with section 52I or 52J above. Nomination Nomination.52L1This section applies if the Secretary of State nominates an authority under section 52D(2)(b) above.2He shall notify the authority in writing of—athe nomination;bthe set of principles determined for the authority under section 52B above;cthe category in which the authority falls (if he determines categories under section 52B above);dthe amount which he would have proposed as the target amount for the year under consideration if he had designated the authority as regards that year under section 52D(2)(a) above.3A nomination under section 52D(2)(b) above —ais invalid unless subsection (2) above is complied with;bshall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.4After nominating all the authorities he intends to nominate the Secretary of State—ashall decide, in the case of each authority nominated, whether to proceed under section 52M or under section 52N below in relation to it;bmay decide to proceed under different sections in relation to different authorities. Designation after nomination.52M1This section applies if the Secretary of State—anominates an authority under section 52D(2)(b) above, andbdecides to proceed under this section in relation to the authority.2He shall—adesignate the authority as regards the financial year immediately following the year under consideration;bdetermine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;cdetermine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.3In making the determinations under subsection (2) above he shall take into account—athe amount which he would have proposed as the target amount for the year under consideration if he had designated the authority as regards that year under section 52D(2)(a) above, andbany information he thinks is relevant.4He shall notify the authority in writing of—athe designation;bthe amount determined under subsection (2)(b) above;cthe target amount determined under subsection (2)(c) above;dany information taken into account under subsection (3)(b) above;ethe financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);fthe period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.5A designation under this section—ais invalid unless subsection (4) above is complied with;bshall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.6If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.7If—aan authority has been designated under this section as regards a financial year, andbafter the designation is made the authority makes calculations or substitute calculations in relation to the year,the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).8Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that—afor reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, orbit accepts the maximum amount stated under subsection (4)(b) above.9The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above. No designation after nomination.52N1This section applies if the Secretary of State—anominates an authority under section 52D(2)(b) above, andbdecides to proceed under this section in relation to the authority.2He shall determine an amount which he proposes should be the notional amount calculated by the authority as its budget requirement for the year under consideration.3In making the determination he shall take into account—athe amount which he would have proposed as the maximum for the amount calculated by the authority as its budget requirement for the year under consideration if he had designated it as regards that year under section 52D(2)(a) above, andbany information he thinks is relevant.4He shall notify the authority in writing of—athe amount determined under subsection (2) above;bthe amount mentioned in subsection (3)(a) above;cany information taken into account under subsection (3)(b) above.5Before the end of the period of 21 days beginning with the day it receives a notification under subsection (4) above an authority may inform the Secretary of State by notice in writing that, for reasons stated in the notice, it believes the notional amount stated under subsection (4)(a) above should be such as the authority states in its notice.6After the end of the period mentioned in subsection (5) above the Secretary of State—ashall, if he receives a notice under subsection (5) above, reconsider his determination under subsection (2) above (taking the notice into account);bshall notify the authority in writing of the amount which is to be the notional amount calculated by the authority as its budget requirement for the year under consideration.7A notification under subsection (6) above shall be treated as made at the beginning of the day on which the authority receives it.8In applying this Chapter at any time after a notification is made under subsection (6) above of the amount which is to be the notional amount calculated by the authority as its budget requirement for a financial year, the amount calculated by the authority as its budget requirement for that year shall be taken to be the notional amount notified. Designation after previous designation Designation after previous designation.52P1This section applies if—athe Secretary of State designates an authority as regards a year under section 52D(2)(a) above or section 52M above or this section, andbthe amount calculated by the authority as its budget requirement for the year exceeds the target amount for the year.2He may designate the authority as regards the financial year immediately following the year mentioned in subsection (1) above, and if he does so he shall—adetermine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;bdetermine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.3In making the determinations under subsection (2) above he shall take into account—athe amount calculated by the authority as its budget requirement for the year mentioned in subsection (1) above,bthe target amount for that year, andcany information he thinks is relevant.4He shall notify the authority in writing of—athe designation;bthe amount determined under subsection (2)(a) above;cthe target amount determined under subsection (2)(b) above;dany information taken into account under subsection (3)(c) above;ethe financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);fthe period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.5A designation under this section—ais invalid unless subsection (4) above is complied with;bshall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.6If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.7If—aan authority has been designated under this section as regards a financial year, andbafter the designation is made the authority makes calculations or substitute calculations in relation to the year,the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).8Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that—afor reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, orbit accepts the maximum amount stated under subsection (4)(b) above.9The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.10In applying subsections (1)(b) and (3)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time designation is proposed.11References in this section to the target amount for the year mentioned in subsection (1) above are to the amount stated (or last stated) as the target amount for the year under section 52E or 52F, or under section 52M or 52Q, or under this section or section 52Q, as the case may be. Position after designation under section 52M or 52P Challenge of maximum amount.52Q1This section applies if—aan authority designated under section 52M above informs the Secretary of State by notice in writing under subsection (8)(a) of that section, orban authority designated under section 52P above informs the Secretary of State by notice in writing under subsection (8)(a) of that section.2After considering any information falling within subsection (3) below the Secretary of State—ashall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed;bmay alter the target amount for the year.3Information falling within this subsection is—ainformation which is supplied by the authority and is of a kind and provided in a form specified by the Secretary of State for the purposes of this section;bany other information he thinks is relevant.4The following paragraphs apply for the purposes of subsection (2) above—aif the authority has already calculated an amount as its budget requirement for the year, the amount stated under subsection (2)(a) above may not exceed the amount already calculated unless in the Secretary of State’s opinion the authority failed to comply with section 32 or 43 above (as the case may be) in making the calculation;bsubject to paragraph (a) above, the amount stated under subsection (2)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be);cthe Secretary of State may alter the target amount for the year under subsection (2)(b) above only if the amount stated under subsection (2)(a) above is greater or smaller than that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be).5In the application of subsection (4)(a) above in relation to the Greater London Authority—afor the reference to section 43 above there shall be substituted a reference to sections 70 and 71 of the Greater London Authority Act 1999, andbat the end there shall be added the words “or he has issued a direction for the year under section 80 of the Greater London Authority Act 1999”.6An order under this section—ashall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;bmay relate to two or more authorities.7As 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—athe amount stated in the case of the authority concerned in the order;bthe altered target amount for the year (if he alters it in the case of the authority concerned).8When 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.9In applying subsection (4)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time of designation. Acceptance of maximum amount.52R1This section applies if—aan authority designated under section 52M above informs the Secretary of State by notice in writing under subsection (8)(b) of that section, orban authority designated under section 52P above informs the Secretary of State by notice in writing under subsection (8)(b) of that section.2As 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 52M(4)(b) or 52P(4)(b) above (as the case may be).3When 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. No challenge or acceptance.52S1This section applies if—athe period mentioned in section 52M(8) above ends without an authority designated under section 52M above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52M(8), orbthe period mentioned in section 52P(8) above ends without an authority designated under section 52P above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52P(8).2As soon as is reasonably practicable after the period ends the Secretary of State shall 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 52M(4)(b) or 52P(4)(b) above (as the case may be).3An order under this section—ashall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;bmay relate to two or more authorities.4As 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 concerned in the order.5When he serves a notice under subsection (4) 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. Duty of designated billing authority.52T1This section applies if a billing authority receives a notice under section 52Q(7), 52R(2) or 52S(4) above.2If it has not made calculations in relation to the year in accordance with sections 32 to 36 above, in making such calculations it shall secure that the amount calculated by it as its budget requirement for the year does not exceed that stated in the notice.3If it—ahas made calculations in relation to the year in accordance with sections 32 to 36 above, orbhas made substitute calculations in relation to the year in accordance with section 37 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.4The substitute calculations shall be made so as to secure—athat the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, andbthat 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.5Subsection (4)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.6In 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) or item TP in section 34(3).7For the purposes of subsection (6) 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—ait estimates will be payable for the year into its general fund in respect of additional grant, andbwas not taken into account by it in making those calculations.8References in this section to the amount stated in the notice are, in the case of a notice under section 52Q(7) above, to the amount stated under section 52Q(7)(a). Duty of designated precepting authority.52U1This section applies if a major precepting authority receives a notice under section 52Q(7), 52R(2) or 52S(4) above.2If it has not made calculations in relation to the year in accordance with—asections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above (where the authority is the Greater London Authority), orbsections 43 to 48 above (in any other case),in making such calculations it shall secure that the amount calculated by it as its budget requirement for the year does not exceed that stated in the notice.3Where the authority is the Greater London Authority and—ait has made calculations in relation to the year in accordance with sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above, orbit has made substitute calculations in relation to the year in accordance with sections 70, 71 and 73 to 75 of and Schedule 6 to the Greater London Authority Act 1999 and sections 47 and 48 above,it shall make substitute calculations in relation to the year in accordance with the provisions mentioned in paragraph (b) above.4Where the authority is not the Greater London Authority and it has made—acalculations in accordance with sections 43 to 48 above, orbsubstitute calculations in accordance with section 49 above,in relation to the year, it shall make substitute calculations in relation to the year in accordance with sections 43 to 48.5The substitute calculations required by subsection (3) or (4) shall be made so as to secure—athat the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, andbthat 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.6In the application of subsection (5)(b) above in relation to the Greater London Authority—afor the reference to section 44(1) above there shall be substituted a reference to section 73(2) of the Greater London Authority Act 1999, andbfor the reference to section 45(2) or (3) above there shall be substituted a reference to section 74(3) of that Act.7Subsection (5)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.8In 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.9In making substitute calculations under section 73(2) or 74(3) of the Greater London Authority Act 1999 the authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) of that Act or for item P2 or item TP2 in section 74(4) of that Act.10For the purposes of subsection (8) 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—ait estimates will be payable to it for the year in respect of additional grant, andbwas not taken into account by it in making those calculations.11For the purposes of subsection (9) above the authority may treat any amount determined in the previous calculations—afor item P1 in section 73(2) of the Greater London Authority Act 1999, orbfor item P2 in section 74(4) of that Act,as increased by the relevant portion of any new additional grant.12For the purposes of subsection (11) above, “the relevant portion of any new additional grant” means the amount of any additional grant payable to the authority for the year which was not taken into account by the authority in making the previous calculations, but—ain the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part, andbin the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;and “special item” has the same meaning in this subsection as in sections 73 and 74 of the Greater London Authority Act 1999 (see section 74(2) of that Act).13In subsection (12) above, “prescribed” means specified in, or determined in accordance with, either—athe report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, orbregulations made by the Secretary of State under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (12) and any particular financial year or years.14References in this section to the amount stated in the notice are, in the case of a notice under section 52Q(7) above, to the amount stated under section 52Q(7)(a). Failure to make or substitute calculations.52V1This section applies if an authority which has received a notice under section 52Q(7), 52R(2) or 52S(4) above fails before the relevant date to make calculations or substitute calculations which comply with section 52T or 52U above (as the case may be).2The relevant date is the following date falling in the financial year immediately preceding that as regards which the authority is designated—a11th March, in the case of a billing authority;b1st March, in the case of a major precepting authority.3In 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.4In the case of a major 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 financial year as regards which the designation concerned was made.5For the purposes of this section the period of restriction is the period which—abegins with the relevant date, andbends at the time (if any) when the authority makes calculations or substitute calculations which comply with section 52T or 52U above. Supplemental Meaning of budget requirement.52W1Any reference in this Chapter to the amount calculated (or already calculated) by a major precepting authority other than the Greater London Authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 43(4) above.2Any reference in this Chapter to the amount calculated (or already calculated) by the Greater London Authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 70(8) of the Greater London Authority Act 1999.3Any reference in this Chapter to the amount calculated (or already calculated) by a billing authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 32(4) above; but this is subject to section 52X below. Calculations to be net of precepts.52X1The amount referred to in section 52W(3) above shall be taken to be the amount calculated as there mentioned less the aggregate amount for the year of any precepts which were (or could be) taken into account by the authority in making the calculation under section 32(2) above and which were (or could be)—aissued to it by local precepting authorities, orbanticipated by it in pursuance of regulations under section 41 above.2Subsection (3) below applies where this Chapter refers to any of the following—athe amount which the Secretary of State proposes should be the maximum for the amount calculated by a billing authority as its budget requirement for a financial year;bthe maximum amount which he proposes a billing authority could calculate as its budget requirement for a financial year without the amount calculated being excessive;cthe amount which the amount calculated by a billing authority as its budget requirement for a financial year is not to exceed;dan amount which he proposes should be, or an amount which is to be, the notional amount calculated by a billing authority as its budget requirement for a financial year;ethe financial year as regards which he expects the amount calculated by a billing authority as its budget requirement for that year to be equal to or less than the target amount for that year.3In such a case—aa reference to the amount calculated is to the amount calculated without taking account of any precept which could be issued to the authority by a local precepting authority;ba reference to the amount which an authority could calculate is to the amount which it could calculate without taking account of any such precept;ca reference to the target amount is to the target amount calculated without taking account of any such precept.4Subsection (1) above shall have effect subject to subsections (2) and (3) above.5Subsection (1) above shall not apply for the purpose of construing section 52Y(1) below.6The Secretary of State may by order provide that any of the provisions of subsections (1) to (3) above shall not apply for such purposes as are specified in the order.7A statutory instrument containing such an order shall be subject to annulment in pursuance of a resolution of the House of Commons. Information for purposes of Chapter IVA.52Y1An 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.2A billing authority shall also notify the Secretary of State in writing of the aggregate amount for any financial year of any precepts which were taken into account by it in making a calculation in relation to the year under section 32(2) above and which were—aissued to it by local precepting authorities, orbanticipated by it in pursuance of regulations under section 41 above.3A 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.4The 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.5The 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.6An 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.7If 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 thinks fit.8In 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. Separate administration in England and Wales.52Z1This Chapter shall apply separately to England and to Wales.2In its application to Wales this Chapter shall have effect with the following modifications—afor each reference to the Secretary of State there shall be substituted a reference to the National Assembly for Wales;bin section 52C for each reference to a report there shall be substituted a reference to an order, subsection (3)(d) shall be omitted, and in subsection (4) for “approved by resolution of the House of Commons” there shall be substituted “made”;csections 52F(7)(a), 52H(3)(a), 52K(2), 52Q(6)(a), 52S(3)(a), 52V(3) and 52X(7) shall be omitted;din sections 52I(5)(a) and 52T(7)(a) for “general fund” there shall be substituted “council fund”.3Any power of the National Assembly for Wales under this Chapter to make an order shall be exercisable by statutory instrument.1992 c.14.
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<TitleBlock>
<Title> Limitation of Council Tax and Precepts</Title>
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<ScheduleBody>
<Part DocumentURI="http://www.legislation.gov.uk/ukpga/1999/27/schedule/1/part/I" IdURI="http://www.legislation.gov.uk/id/ukpga/1999/27/schedule/1/part/I" NumberOfProvisions="26" RestrictStartDate="1999-07-27" id="schedule-1-part-I">
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<Title> The New Chapter</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1999/27/schedule/1/paragraph/1" IdURI="http://www.legislation.gov.uk/id/ukpga/1999/27/schedule/1/paragraph/1" RestrictStartDate="1999-07-27" id="schedule-1-paragraph-1">
<Pnumber>1</Pnumber>
<P1para>
<Text>
In Part I of the
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Local Government Finance Act 1992 the following Chapter shall be inserted after Chapter
<Acronym Expansion="4">IV</Acronym>
</Text>
<BlockAmendment TargetClass="unknown" TargetSubClass="unknown" Context="unknown" Format="default">
<Chapter>
<Number>CHAPTER IVA</Number>
<Title> LIMITATION OF COUNCIL TAX AND PRECEPTS</Title>
<Pblock>
<Title> Introduction</Title>
<P1group>
<Title> Interpretation.</Title>
<P1>
<Pnumber>52A</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>In this Chapter a reference to an authority is to—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>a billing authority, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>a major precepting authority.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>Sections 52W and 52X below contain other interpretative provisions for the purposes of this Chapter.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Designation or nomination</Title>
<P1group>
<Title> Power to designate or nominate authorities.</Title>
<P1>
<Pnumber>52B</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>If in the Secretary of State’s opinion the amount calculated by an authority as its budget requirement for a financial year (the year under consideration) is excessive, he may exercise his power to designate or nominate the authority under section 52D below.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>The question whether the amount so calculated is excessive must be decided in accordance with a set of principles determined by the Secretary of State.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>A set of principles—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>may contain one principle or two or more principles;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>must constitute or include a comparison falling within subsection (4) below or comparisons each of which falls within subsection (4).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>A comparison falls within this subsection if—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it is between the amount calculated by the authority as its budget requirement for the year under consideration and the amount calculated by it as its budget requirement for a financial year falling before the year under consideration;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the earlier financial year in the comparison does not fall before that beginning with 1st April 1998.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>If for the purposes of this section the Secretary of State determines categories of authorities for the year under consideration—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>any principles determined for the year must be such that the same set is determined for all authorities (if more than one) falling within the same category;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>as regards an authority which does not fall within any of the categories, the Secretary of State may not exercise his power to designate or nominate the authority under section 52D below by reference to the excessiveness of its budget requirement for the year.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>If he does not determine such categories, any principles determined for the year under consideration must be such that the same set is determined for all authorities.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>In determining categories of authorities for the year under consideration the Secretary of State shall take into account any information he thinks is relevant.</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>In applying this section the Secretary of State shall ignore any calculation for which another has been substituted at the time designation or nomination is proposed.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Alternative notional amounts.</Title>
<P1>
<Pnumber>52C</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>The Secretary of State may make a report specifying in relation to—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>any year under consideration (within the meaning of section 52B above), and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>any authority,</Text>
</P3para>
</P3>
<Text>an amount which in his opinion should be used as the basis of any comparison in applying that section in place of the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>References in this section to the alternative notional amount are to the amount so specified.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>A report under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>may relate to two or more authorities;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may be amended by a subsequent report under this section;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>shall contain such explanation as the Secretary of State thinks desirable of the calculation by him of the alternative notional amount;</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>shall be laid before the House of Commons.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>If a report under this section is approved by resolution of the House of Commons section 52B above shall have effect, as regards the year under consideration and any authority to which the report relates, as if the reference in subsection (4) to the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration were to the alternative notional amount for the year so falling.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Designation or nomination.</Title>
<P1>
<Pnumber>52D</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if in the Secretary of State’s opinion (reached after applying section 52B above) the amount calculated by an authority as its budget requirement for the year under consideration is excessive.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>In such a case he may—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>designate the authority as regards the year under consideration, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>nominate the authority.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>The Secretary of State may proceed under different paragraphs of subsection (2) above in relation to different authorities.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Designation for year under consideration</Title>
<P1group>
<Title> Designation.</Title>
<P1>
<Pnumber>52E</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if the Secretary of State designates an authority under section 52D(2)(a) above as regards the year under consideration.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>He shall notify the authority in writing of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the designation;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the set of principles determined for the authority under section 52B above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the category in which the authority falls (if he determines categories under section 52B above);</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>the amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year;</Text>
</P3para>
</P3>
<P3>
<Pnumber>e</Pnumber>
<P3para>
<Text>the target amount for the year, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive;</Text>
</P3para>
</P3>
<P3>
<Pnumber>f</Pnumber>
<P3para>
<Text>the financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>A designation under section 52D(2)(a) above—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>is invalid unless subsection (2) above is complied with;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>If—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>an authority has been designated under section 52D(2)(a) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>after the designation is made the authority makes substitute calculations in relation to the year,</Text>
</P3para>
</P3>
<Text>the substitute calculations shall be invalid unless they are made in accordance with section 52I or 52J below (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>Before the end of the period of 21 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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for reasons stated in the notice, it believes the maximum amount stated under subsection (2)(d) above should be such as the authority states in its notice, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>it accepts the maximum amount stated under subsection (2)(d) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Challenge of maximum amount.</Title>
<P1>
<Pnumber>52F</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if an authority designated under section 52D(2)(a) above informs the Secretary of State by notice in writing under section 52E(5)(a) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>After considering any information falling within subsection (3) below the Secretary of State shall either—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>proceed under subsection (4) below (in which case subsections (5) to (10) below shall also apply), or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>proceed under subsection (11) below.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Information falling within this subsection is—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>information which is supplied by the authority and is of a kind and provided in a form specified by the Secretary of State for the purposes of this section;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>any other information he thinks is relevant.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>If he proceeds under this subsection the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may alter the target amount for the year.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>The following paragraphs apply for the purposes of subsection (4) above—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount stated under subsection (4)(a) 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 43 above (as the case may be) in making the calculation;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>subject to paragraph (a) above, the amount stated under subsection (4)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52E(2)(d) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the Secretary of State may alter the target amount for the year under subsection (4)(b) above only if the amount stated under subsection (4)(a) above is greater or smaller than that stated in the notice under section 52E(2)(d) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>In the application of subsection (5)(a) above in relation to the Greater London Authority—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for the reference to section 43 above there shall be substituted a reference to sections 70 and 71 of the Greater London Authority Act 1999, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>at the end there shall be added the words “or he has issued a direction for the year under section 80 of the Greater London Authority Act 1999”.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>An order under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may relate to two or more authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount stated in the case of the authority concerned in the order;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the altered target amount for the year (if he alters it in the case of the authority concerned).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>When he serves a notice under subsection (8) 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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>10</Pnumber>
<P2para>
<Text>In applying subsection (5)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time of designation.</Text>
</P2para>
</P2>
<P2>
<Pnumber>11</Pnumber>
<P2para>
<Text>If the Secretary of State proceeds under this subsection he shall—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>cancel the designation of the authority under section 52D(2)(a) above as regards the year and notify the authority in writing of the cancellation, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>nominate the authority under section 52D(2)(b) above;</Text>
</P3para>
</P3>
<Text>and in such a case the designation under section 52D(2)(a) above and the notification under section 52E above shall be treated as not having been made.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Acceptance of maximum amount.</Title>
<P1>
<Pnumber>52G</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if an authority designated under section 52D(2)(a) above informs the Secretary of State by notice in writing under section 52E(5)(b) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>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 52E(2)(d) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> No challenge or acceptance.</Title>
<P1>
<Pnumber>52H</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if the period mentioned in section 52E(5) above ends without an authority designated under section 52D(2)(a) above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52E(5).</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>As soon as is reasonably practicable after the period ends the Secretary of State shall 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 52E(2)(d) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>An order under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may relate to two or more authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>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 concerned in the order.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>When he serves a notice under subsection (4) 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.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Duty of designated billing authority.</Title>
<P1>
<Pnumber>52I</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>If a billing authority receives a notice under section 52F(8), 52G(2) or 52H(4) 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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>The substitute calculations shall be made so as to secure—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>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.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>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) or item TP in section 34(3).</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it estimates will be payable for the year into its general fund in respect of additional grant, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>was not taken into account by it in making those calculations.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Duty of designated precepting authority.</Title>
<P1>
<Pnumber>52J</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>If a major precepting authority receives a notice under section 52F(8), 52G(2) or 52H(4) above it shall make substitute calculations in relation to the year in accordance with—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>sections 70, 71 and 73 to 75 of and Schedule 6 to the Greater London Authority Act 1999 and sections 47 and 48 above (where the authority is the Greater London Authority), or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>sections 43 to 48 above (in any other case).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>The substitute calculations shall be made so as to secure—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>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.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In the application of subsection (2)(b) above in relation to the Greater London Authority—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for the reference to section 44(1) above there shall be substituted a reference to section 73(2) of the Greater London Authority Act 1999, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>for the reference to section 45(2) or (3) above there shall be substituted a reference to section 74(3) of that Act.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>In making substitute calculations under section 73(2) or 74(3) of the Greater London Authority Act 1999 the authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) of that Act or for item P2 or item TP2 in section 74(4) of that Act.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>For the purposes of subsection (5) 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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it estimates will be payable to it for the year in respect of additional grant, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>was not taken into account by it in making those calculations.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>For the purposes of subsection (6) above the authority may treat any amount determined in the previous calculations—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for item P1 in section 73(2) of the Greater London Authority Act 1999, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>for item P2 in section 74(4) of that Act,</Text>
</P3para>
</P3>
<Text>as increased by the relevant portion of any new additional grant.</Text>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>
For the purposes of subsection (8) above, “
<Term>the relevant portion of any new additional grant</Term>
” means the amount of any additional grant payable to the authority for the year which was not taken into account by the authority in making the previous calculations, but—
</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;</Text>
</P3para>
</P3>
<Text>
and “
<Term>special item</Term>
” has the same meaning in this subsection as in sections 73 and 74 of the Greater London Authority Act 1999 (see section 74(2) of that Act).
</Text>
</P2para>
</P2>
<P2>
<Pnumber>10</Pnumber>
<P2para>
<Text>
In subsection (9) above, “
<Term>prescribed</Term>
” means specified in, or determined in accordance with, either—
</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>regulations made by the Secretary of State under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),</Text>
</P3para>
</P3>
<Text>as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (9) and any particular financial year or years.</Text>
</P2para>
</P2>
<P2>
<Pnumber>11</Pnumber>
<P2para>
<Text>References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Failure to substitute.</Title>
<P1>
<Pnumber>52K</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if an authority which has received a notice under section 52F(8), 52G(2) or 52H(4) above fails to comply with section 52I or 52J above (as the case may be) before the end of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the period of 35 days beginning with the day on which the authority receives the notice (where it is the Greater London Authority), or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the period of 21 days beginning with the day on which the authority receives the notice (in any other case).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In the case of a major 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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>For the purposes of this section the period of restriction is the period which—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>begins at the end of the period mentioned in subsection (1) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>ends at the time (if any) when the authority complies with section 52I or 52J above.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Nomination</Title>
<P1group>
<Title> Nomination.</Title>
<P1>
<Pnumber>52L</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if the Secretary of State nominates an authority under section 52D(2)(b) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>He shall notify the authority in writing of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the nomination;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the set of principles determined for the authority under section 52B above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the category in which the authority falls (if he determines categories under section 52B above);</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>the amount which he would have proposed as the target amount for the year under consideration if he had designated the authority as regards that year under section 52D(2)(a) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>A nomination under section 52D(2)(b) above —</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>is invalid unless subsection (2) above is complied with;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>After nominating all the authorities he intends to nominate the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall decide, in the case of each authority nominated, whether to proceed under section 52M or under section 52N below in relation to it;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may decide to proceed under different sections in relation to different authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Designation after nomination.</Title>
<P1>
<Pnumber>52M</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>nominates an authority under section 52D(2)(b) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>decides to proceed under this section in relation to the authority.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>He shall—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>designate the authority as regards the financial year immediately following the year under consideration;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>determine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>determine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In making the determinations under subsection (2) above he shall take into account—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount which he would have proposed as the target amount for the year under consideration if he had designated the authority as regards that year under section 52D(2)(a) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>any information he thinks is relevant.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>He shall notify the authority in writing of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the designation;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the amount determined under subsection (2)(b) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the target amount determined under subsection (2)(c) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>any information taken into account under subsection (3)(b) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>e</Pnumber>
<P3para>
<Text>the financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);</Text>
</P3para>
</P3>
<P3>
<Pnumber>f</Pnumber>
<P3para>
<Text>the period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>A designation under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>is invalid unless subsection (4) above is complied with;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>If—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>an authority has been designated under this section as regards a financial year, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>after the designation is made the authority makes calculations or substitute calculations in relation to the year,</Text>
</P3para>
</P3>
<Text>the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>it accepts the maximum amount stated under subsection (4)(b) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> No designation after nomination.</Title>
<P1>
<Pnumber>52N</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>nominates an authority under section 52D(2)(b) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>decides to proceed under this section in relation to the authority.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>He shall determine an amount which he proposes should be the notional amount calculated by the authority as its budget requirement for the year under consideration.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In making the determination he shall take into account—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount which he would have proposed as the maximum for the amount calculated by the authority as its budget requirement for the year under consideration if he had designated it as regards that year under section 52D(2)(a) above, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>any information he thinks is relevant.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>He shall notify the authority in writing of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount determined under subsection (2) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the amount mentioned in subsection (3)(a) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>any information taken into account under subsection (3)(b) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>Before the end of the period of 21 days beginning with the day it receives a notification under subsection (4) above an authority may inform the Secretary of State by notice in writing that, for reasons stated in the notice, it believes the notional amount stated under subsection (4)(a) above should be such as the authority states in its notice.</Text>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>After the end of the period mentioned in subsection (5) above the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall, if he receives a notice under subsection (5) above, reconsider his determination under subsection (2) above (taking the notice into account);</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>shall notify the authority in writing of the amount which is to be the notional amount calculated by the authority as its budget requirement for the year under consideration.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>A notification under subsection (6) above shall be treated as made at the beginning of the day on which the authority receives it.</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>In applying this Chapter at any time after a notification is made under subsection (6) above of the amount which is to be the notional amount calculated by the authority as its budget requirement for a financial year, the amount calculated by the authority as its budget requirement for that year shall be taken to be the notional amount notified.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Designation after previous designation</Title>
<P1group>
<Title> Designation after previous designation.</Title>
<P1>
<Pnumber>52P</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the Secretary of State designates an authority as regards a year under section 52D(2)(a) above or section 52M above or this section, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the amount calculated by the authority as its budget requirement for the year exceeds the target amount for the year.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>He may designate the authority as regards the financial year immediately following the year mentioned in subsection (1) above, and if he does so he shall—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>determine an amount which he proposes should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>determine the target amount for the year as regards which the designation is made, that is, the maximum amount which he proposes the authority could calculate as its budget requirement for the year without the amount calculated being excessive.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In making the determinations under subsection (2) above he shall take into account—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount calculated by the authority as its budget requirement for the year mentioned in subsection (1) above,</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the target amount for that year, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>any information he thinks is relevant.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>He shall notify the authority in writing of—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the designation;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the amount determined under subsection (2)(a) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the target amount determined under subsection (2)(b) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>any information taken into account under subsection (3)(c) above;</Text>
</P3para>
</P3>
<P3>
<Pnumber>e</Pnumber>
<P3para>
<Text>the financial year as regards which he expects the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year);</Text>
</P3para>
</P3>
<P3>
<Pnumber>f</Pnumber>
<P3para>
<Text>the period within which the authority may inform the Secretary of State that it challenges or accepts the amount stated under paragraph (b) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>A designation under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>is invalid unless subsection (4) above is complied with;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>If an authority has been designated under this section as regards a financial year the Secretary of State may not designate it under section 52D(2)(a) above as regards that year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>If—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>an authority has been designated under this section as regards a financial year, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>after the designation is made the authority makes calculations or substitute calculations in relation to the year,</Text>
</P3para>
</P3>
<Text>the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>Before the end of the period notified under subsection (4)(f) above an authority may inform the Secretary of State by notice in writing that—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>it accepts the maximum amount stated under subsection (4)(b) above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>10</Pnumber>
<P2para>
<Text>In applying subsections (1)(b) and (3)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time designation is proposed.</Text>
</P2para>
</P2>
<P2>
<Pnumber>11</Pnumber>
<P2para>
<Text>References in this section to the target amount for the year mentioned in subsection (1) above are to the amount stated (or last stated) as the target amount for the year under section 52E or 52F, or under section 52M or 52Q, or under this section or section 52Q, as the case may be.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Position after designation under section 52M or 52P</Title>
<P1group>
<Title> Challenge of maximum amount.</Title>
<P1>
<Pnumber>52Q</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>an authority designated under section 52M above informs the Secretary of State by notice in writing under subsection (8)(a) of that section, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>an authority designated under section 52P above informs the Secretary of State by notice in writing under subsection (8)(a) of that section.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>After considering any information falling within subsection (3) below the Secretary of State—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may alter the target amount for the year.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Information falling within this subsection is—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>information which is supplied by the authority and is of a kind and provided in a form specified by the Secretary of State for the purposes of this section;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>any other information he thinks is relevant.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>The following paragraphs apply for the purposes of subsection (2) above—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>if the authority has already calculated an amount as its budget requirement for the year, the amount stated under subsection (2)(a) above may not exceed the amount already calculated unless in the Secretary of State’s opinion the authority failed to comply with section 32 or 43 above (as the case may be) in making the calculation;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>subject to paragraph (a) above, the amount stated under subsection (2)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be);</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the Secretary of State may alter the target amount for the year under subsection (2)(b) above only if the amount stated under subsection (2)(a) above is greater or smaller than that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>In the application of subsection (4)(a) above in relation to the Greater London Authority—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for the reference to section 43 above there shall be substituted a reference to sections 70 and 71 of the Greater London Authority Act 1999, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>at the end there shall be added the words “or he has issued a direction for the year under section 80 of the Greater London Authority Act 1999”.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>An order under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may relate to two or more authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount stated in the case of the authority concerned in the order;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the altered target amount for the year (if he alters it in the case of the authority concerned).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>In applying subsection (4)(a) above the Secretary of State shall ignore any calculation for which another has been substituted at the time of designation.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Acceptance of maximum amount.</Title>
<P1>
<Pnumber>52R</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>an authority designated under section 52M above informs the Secretary of State by notice in writing under subsection (8)(b) of that section, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>an authority designated under section 52P above informs the Secretary of State by notice in writing under subsection (8)(b) of that section.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>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 52M(4)(b) or 52P(4)(b) above (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> No challenge or acceptance.</Title>
<P1>
<Pnumber>52S</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the period mentioned in section 52M(8) above ends without an authority designated under section 52M above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52M(8), or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the period mentioned in section 52P(8) above ends without an authority designated under section 52P above informing the Secretary of State by notice in writing under paragraph (a) or (b) of section 52P(8).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>As soon as is reasonably practicable after the period ends the Secretary of State shall 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 52M(4)(b) or 52P(4)(b) above (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>An order under this section—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>shall not be made unless a draft of it has been laid before and approved by resolution of the House of Commons;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>may relate to two or more authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>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 concerned in the order.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>When he serves a notice under subsection (4) 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.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Duty of designated billing authority.</Title>
<P1>
<Pnumber>52T</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if a billing authority receives a notice under section 52Q(7), 52R(2) or 52S(4) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>If it has not made calculations in relation to the year in accordance with sections 32 to 36 above, in making such calculations it shall secure that the amount calculated by it as its budget requirement for the year does not exceed that stated in the notice.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>If it—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>has made calculations in relation to the year in accordance with sections 32 to 36 above, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>has made substitute calculations in relation to the year in accordance with section 37 above,</Text>
</P3para>
</P3>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>The substitute calculations shall be made so as to secure—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>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.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>Subsection (4)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>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) or item TP in section 34(3).</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>For the purposes of subsection (6) 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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it estimates will be payable for the year into its general fund in respect of additional grant, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>was not taken into account by it in making those calculations.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>References in this section to the amount stated in the notice are, in the case of a notice under section 52Q(7) above, to the amount stated under section 52Q(7)(a).</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Duty of designated precepting authority.</Title>
<P1>
<Pnumber>52U</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if a major precepting authority receives a notice under section 52Q(7), 52R(2) or 52S(4) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>If it has not made calculations in relation to the year in accordance with—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above (where the authority is the Greater London Authority), or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>sections 43 to 48 above (in any other case),</Text>
</P3para>
</P3>
<Text>in making such calculations it shall secure that the amount calculated by it as its budget requirement for the year does not exceed that stated in the notice.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Where the authority is the Greater London Authority and—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it has made calculations in relation to the year in accordance with sections 70 to 75 of the Greater London Authority Act 1999 and sections 47 and 48 above, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>it has made substitute calculations in relation to the year in accordance with sections 70, 71 and 73 to 75 of and Schedule 6 to the Greater London Authority Act 1999 and sections 47 and 48 above,</Text>
</P3para>
</P3>
<Text>it shall make substitute calculations in relation to the year in accordance with the provisions mentioned in paragraph (b) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>Where the authority is not the Greater London Authority and it has made—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>calculations in accordance with sections 43 to 48 above, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>substitute calculations in accordance with section 49 above,</Text>
</P3para>
</P3>
<Text>in relation to the year, it shall make substitute calculations in relation to the year in accordance with sections 43 to 48.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>The substitute calculations required by subsection (3) or (4) shall be made so as to secure—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>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.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>In the application of subsection (5)(b) above in relation to the Greater London Authority—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for the reference to section 44(1) above there shall be substituted a reference to section 73(2) of the Greater London Authority Act 1999, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>for the reference to section 45(2) or (3) above there shall be substituted a reference to section 74(3) of that Act.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>Subsection (5)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year.</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>9</Pnumber>
<P2para>
<Text>In making substitute calculations under section 73(2) or 74(3) of the Greater London Authority Act 1999 the authority must use any amount determined in the previous calculations for item P1 or T in section 73(2) of that Act or for item P2 or item TP2 in section 74(4) of that Act.</Text>
</P2para>
</P2>
<P2>
<Pnumber>10</Pnumber>
<P2para>
<Text>For the purposes of subsection (8) 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—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>it estimates will be payable to it for the year in respect of additional grant, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>was not taken into account by it in making those calculations.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>11</Pnumber>
<P2para>
<Text>For the purposes of subsection (9) above the authority may treat any amount determined in the previous calculations—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for item P1 in section 73(2) of the Greater London Authority Act 1999, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>for item P2 in section 74(4) of that Act,</Text>
</P3para>
</P3>
<Text>as increased by the relevant portion of any new additional grant.</Text>
</P2para>
</P2>
<P2>
<Pnumber>12</Pnumber>
<P2para>
<Text>
For the purposes of subsection (11) above, “
<Term>the relevant portion of any new additional grant</Term>
” means the amount of any additional grant payable to the authority for the year which was not taken into account by the authority in making the previous calculations, but—
</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;</Text>
</P3para>
</P3>
<Text>
and “
<Term>special item</Term>
” has the same meaning in this subsection as in sections 73 and 74 of the Greater London Authority Act 1999 (see section 74(2) of that Act).
</Text>
</P2para>
</P2>
<P2>
<Pnumber>13</Pnumber>
<P2para>
<Text>
In subsection (12) above, “
<Term>prescribed</Term>
” means specified in, or determined in accordance with, either—
</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the report under section 85 of the Local Government Finance Act 1988 relating to the amount of additional grant in question, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>regulations made by the Secretary of State under section 73(3)(b) of the Greater London Authority Act 1999 (in relation to item P1) or under section 74(5)(b) of that Act (in relation to item P2),</Text>
</P3para>
</P3>
<Text>as the Secretary of State may determine for the purposes of paragraph (a) or (b) of subsection (12) and any particular financial year or years.</Text>
</P2para>
</P2>
<P2>
<Pnumber>14</Pnumber>
<P2para>
<Text>References in this section to the amount stated in the notice are, in the case of a notice under section 52Q(7) above, to the amount stated under section 52Q(7)(a).</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Failure to make or substitute calculations.</Title>
<P1>
<Pnumber>52V</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies if an authority which has received a notice under section 52Q(7), 52R(2) or 52S(4) above fails before the relevant date to make calculations or substitute calculations which comply with section 52T or 52U above (as the case may be).</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>The relevant date is the following date falling in the financial year immediately preceding that as regards which the authority is designated—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>11th March, in the case of a billing authority;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>1st March, in the case of a major precepting authority.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>In the case of a major 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 financial year as regards which the designation concerned was made.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>For the purposes of this section the period of restriction is the period which—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>begins with the relevant date, and</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>ends at the time (if any) when the authority makes calculations or substitute calculations which comply with section 52T or 52U above.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
<Pblock>
<Title> Supplemental</Title>
<P1group>
<Title> Meaning of budget requirement.</Title>
<P1>
<Pnumber>52W</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>Any reference in this Chapter to the amount calculated (or already calculated) by a major precepting authority other than the Greater London Authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 43(4) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>Any reference in this Chapter to the amount calculated (or already calculated) by the Greater London Authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 70(8) of the Greater London Authority Act 1999.</Text>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Any reference in this Chapter to the amount calculated (or already calculated) by a billing authority as its budget requirement for a financial year is a reference to the amount calculated by it in relation to the year under section 32(4) above; but this is subject to section 52X below.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Calculations to be net of precepts.</Title>
<P1>
<Pnumber>52X</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>The amount referred to in section 52W(3) above shall be taken to be the amount calculated as there mentioned less the aggregate amount for the year of any precepts which were (or could be) taken into account by the authority in making the calculation under section 32(2) above and which were (or could be)—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>issued to it by local precepting authorities, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>anticipated by it in pursuance of regulations under section 41 above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>Subsection (3) below applies where this Chapter refers to any of the following—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>the amount which the Secretary of State proposes should be the maximum for the amount calculated by a billing authority as its budget requirement for a financial year;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>the maximum amount which he proposes a billing authority could calculate as its budget requirement for a financial year without the amount calculated being excessive;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>the amount which the amount calculated by a billing authority as its budget requirement for a financial year is not to exceed;</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>an amount which he proposes should be, or an amount which is to be, the notional amount calculated by a billing authority as its budget requirement for a financial year;</Text>
</P3para>
</P3>
<P3>
<Pnumber>e</Pnumber>
<P3para>
<Text>the financial year as regards which he expects the amount calculated by a billing authority as its budget requirement for that year to be equal to or less than the target amount for that year.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>In such a case—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>a reference to the amount calculated is to the amount calculated without taking account of any precept which could be issued to the authority by a local precepting authority;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>a reference to the amount which an authority could calculate is to the amount which it could calculate without taking account of any such precept;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>a reference to the target amount is to the target amount calculated without taking account of any such precept.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>Subsection (1) above shall have effect subject to subsections (2) and (3) above.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>Subsection (1) above shall not apply for the purpose of construing section 52Y(1) below.</Text>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>The Secretary of State may by order provide that any of the provisions of subsections (1) to (3) above shall not apply for such purposes as are specified in the order.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>A statutory instrument containing such an order shall be subject to annulment in pursuance of a resolution of the House of Commons.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Information for purposes of Chapter IVA.</Title>
<P1>
<Pnumber>52Y</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>A billing authority shall also notify the Secretary of State in writing of the aggregate amount for any financial year of any precepts which were taken into account by it in making a calculation in relation to the year under section 32(2) above and which were—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>issued to it by local precepting authorities, or</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>anticipated by it in pursuance of regulations under section 41 above.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>4</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>5</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>6</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2>
<Pnumber>7</Pnumber>
<P2para>
<Text>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 thinks fit.</Text>
</P2para>
</P2>
<P2>
<Pnumber>8</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group>
<Title> Separate administration in England and Wales.</Title>
<P1>
<Pnumber>52Z</Pnumber>
<P1para>
<P2>
<Pnumber>1</Pnumber>
<P2para>
<Text>This Chapter shall apply separately to England and to Wales.</Text>
</P2para>
</P2>
<P2>
<Pnumber>2</Pnumber>
<P2para>
<Text>In its application to Wales this Chapter shall have effect with the following modifications—</Text>
<P3>
<Pnumber>a</Pnumber>
<P3para>
<Text>for each reference to the Secretary of State there shall be substituted a reference to the National Assembly for Wales;</Text>
</P3para>
</P3>
<P3>
<Pnumber>b</Pnumber>
<P3para>
<Text>in section 52C for each reference to a report there shall be substituted a reference to an order, subsection (3)(d) shall be omitted, and in subsection (4) for “approved by resolution of the House of Commons” there shall be substituted “made”;</Text>
</P3para>
</P3>
<P3>
<Pnumber>c</Pnumber>
<P3para>
<Text>sections 52F(7)(a), 52H(3)(a), 52K(2), 52Q(6)(a), 52S(3)(a), 52V(3) and 52X(7) shall be omitted;</Text>
</P3para>
</P3>
<P3>
<Pnumber>d</Pnumber>
<P3para>
<Text>in sections 52I(5)(a) and 52T(7)(a) for “general fund” there shall be substituted “council fund”.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2>
<Pnumber>3</Pnumber>
<P2para>
<Text>Any power of the National Assembly for Wales under this Chapter to make an order shall be exercisable by statutory instrument.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
</Chapter>
</BlockAmendment>
</P1para>
</P1>
</Part>
</ScheduleBody>
</Schedule>
</Schedules>
</Primary>
<Commentaries>
<Commentary id="c954881" Type="M">
<Para>
<Text>
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/14" id="c00384" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="14">1992 c.14</Citation>
.
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>