Local Government Act 1974

5 Reduction of grants in case of default

(1) If, in the case of any local authority or joint board, the appropriate Minister—

(a) is satisfied that the authority or board have failed to achieve or maintain a reasonable standard in the discharge of any of their functions, regard being had to the standards maintained by other authorities and boards, and

(b) is of opinion that by reason of the failure a reduction should be made in the amount of any elements of rate support grant payable to the local authority or a constituent authority of the joint board,

he may, after affording to the local or constituent authority in question an opportunity of making representations, make and cause to be laid before Parliament a report stating the amount of and the reasons for the proposed reduction and setting out any representations made by the authority with respect to the proposed reduction; and if the report is approved by a resolution of the Commons House of Parliament the Secretary of State may reduce the elements of the grant accordingly.

(2) The appropriate Minister may make regulations for prescribing standards and general requirements in relation to any function of a local authority; and in determining for the purposes of subsection (1) above whether there has been such a failure as is mentioned in that subsection, regard shall be had to any such regulations and any other standards or requirements imposed by or under any enactment.

(3) Any regulations in force immediately before 1st April 1974 and—

(a) made under subsection (2) of section 4 of the [1966 c. 42.] Local Government Act 1966 (which in the context of that Act corresponds to subsection (2) above), or

(b) made under section 3(4) of the [1958 c. 55.] Local Government Act 1958 but, by virtue of subsection (3) of the said section 4, having effect for the purposes of that section as if made under subsection (2) thereof,

shall have effect on and after that date for the purposes of this section as if made under subsection (2) above.

(4) In this section " joint board " includes a joint committee which continues to exist by virtue of section 263(5) of the [1972 c. 70.] Local Government Act 1972.