Transport Act 1968

13 Power for Authority to precept for Executive

(1) Subject to subsection (4) of this section, the Authority for a designated area may issue precepts to those councils of constituent areas who are rating authorities for the levying of rates by those rating authorities to produce such sums respectively as may be determined by the Authority in accordance with subsection (2) of this section, being sums of such aggregate amount as the Authority think fit—

(a) towards any deficit which has been, or which, on the basis of estimates by the Executive which have been approved by the Authority, it is estimated will be, incurred in respect of any accounting period of the Executive on the revenue account of the Executive, or on the combined revenue accounts of the Executive and any subsidiaries of theirs, other than any part of that deficit which is the subject of an undertaking given by the Authority under section 15(3) of this Act;

(b) towards the implementation of any such undertaking as aforesaid;

and each of those rating authorities shall pay the amount due under the precept to the Executive.

(2) Any such precept shall be so issued as to require the levying in each rating area falling wholly or partly within the designated area of a rate of such amount in the pound as will produce an amount bearing to the aggregate amount required by the Authority the same proportion as the product of a rate of one penny in the pound for so much of that rating area as falls within the designated area bears to the product of such a rate for the whole of the designated area ; and the rating authority for a rating area which falls only partly within the designated area may, as they think fit, levy rates to satisfy the precept either on the whole of the rating area or only on such part thereof as falls within the designated area.

(3) The Authority shall from time to time by notice in writing to the Executive specify the amounts for which the Authority propose to issue precepts under this section in respect of expenditure incurred during any accounting period.

(4) The Minister may by order made either generally or as respects a particular designated area restrict the aggregate amount for which the Authority may issue precepts under this section during any accounting period or series of accounting periods of the Executive.

(5) The power of the Minister of Housing and Local Government to make rules under section 113 of the [1967 c. 9.] General Rate Act 1967 shall include power to make rules with respect to precepts under this section.

(6) Section 11 of the [1967 c. 9.] General Rate Act 1967 shall not apply to a precept under this section; and section 15 of that Act shall have effect for the purposes of such a precept as if any reference in that section to the precepting authority were a reference to the Executive.

(7) Expenditure by any rating authority to meet a precept under this section shall not be relevant expenditure of that authority for the purposes of section 1 of the [1966 c. 42.] Local Government Act 1966.

(8) In the application of this section to a rating area in Scotland—

(a) references to a precept shall be construed as references to a requisition, and references to the issue of a precept for the levying of a rate shall be construed as references to the issue of a requisition to be met by the levying of a rate;

(b) the provisions of Part XI of the [1947 c. 43.] Local Government (Scotland) Act 1947 shall apply to any requisition made or rates levied under this section with such adaptations and modifications as the Secretary of State may by regulations prescribe ;

(c) expenditure by any rating authority in paying any requisition under this section shall not be reckonable expenditure of the authority for the purposes of section 2 of the [1966 c. 51.] Local Government (Scotland) Act 1966.