Local Government, Planning and Land Act 1980

54 The aggregate amount of rate support grants

(1) For the purpose of fixing the aggregate amount of the rate support grants for any year, the Secretary of State shall determine the aggregate amount (in this Part of this Act referred to as " the amount available for grants ") which he estimates is to be available for the payment out of money provided by Parliament of grants to local authorities in respect of their relevant expenditure for that year, other than—

(a) housing subsidies;

(b) grants under section 8 of the Local Government Act 1974;

(c) grants under section 69 of this Act; and

(d) grants under paragraph 29 of Schedule 32 to this Act.

(2) The Secretary of State shall deduct from the amount determined under subsection (1) above—

(a) the portion of the amount available for grants which he estimates will be allocated to grants in respect of specific services, other than—

(i) grants under section 8 of the Local Government Act 1974,

(ii) grants under section 69 of this Act, and

(iii) grants under paragraph 29 of Schedule 32 to this Act; and

(b) the portion of that amount which is prescribed as the aggregate amount of supplementary grants for transport services within the meaning of section 6 of the [1974 c. 7.] Local Government Act 1974; and

(c) the portion of that amount which is prescribed as the aggregate amount of supplementary grants under section 7 of that Act.

(3) So much of the amount available for grants as remains after making the deductions required under subsection (2) above shall be the aggregate amount of the rate support grants for that year.

(4) Before determining the amount available for grants and the portions of that amount mentioned in paragraphs (a) to (c) of subsection (2) above, the Secretary of State shall consult with such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to him to be desirable, and shall take into account—

(a) the latest information available to him as to the rate of relevant expenditure;

(b) any probable fluctuation in the demand for services giving rise to relevant expenditure, so far as the fluctuation is attributable to circumstances—

(i) in England as a whole; or

(ii) in Wales as a whole,

being circumstances which are not under the control of local authorities;

(c) the need for developing those services and the extent to which, having regard to general economic conditions, it is reasonable to develop them; and

(d) the current level of prices, costs and remuneration and any future variation in that level which in the opinion of the Secretary of State will result from decisions which appear to him to be final and which will have the effect of increasing or decreasing any particular prices, costs or remuneration.

(5) Subject—

(a) to subsection (7) below;

(b) to section 6(3) of the [1975 c. 67.] Housing Finance (Special Provisions) Act 1975 (which relates to certain sums charged to a local authority's general rate fund);

(c) to section 8(3) of the [1976 c. 32.] Lotteries and Amusements Act 1976, (proceeds of local lotteries); and

(d) to section 117(3) of the [1980 c. 51.] Housing Act 1980 (rate fund contributions under section 3(4) of the [1975 c. 6.] Housing Rents and Subsidies Act 1975),

in this section " relevant expenditure ", in relation to any year, means the expenditure for that year falling to be defrayed out of the rate fund of a local authority—

(i) reduced by the amount of any payments of such descriptions as the Secretary of State may specify which fall to be made for that year into the rate fund ; and

(ii) exclusive of the items of expenditure mentioned in sub section (6) below.

(6) The items of expenditure referred to in subsection (5)(ii) above are—

(a) sums falling to be paid to another local authority by virtue of a precept or other instrument;

(b) expenditure under section 1(1) (awards for university and comparable courses) or section 2(3) (grants to persons undergoing training as teachers) of the [1962 c. 12.] Education Act 1962; and

(c) so much of the allowances granted in the year in question under a local authority's allowance scheme, within the meaning of Part II of the [1972 c. 47.] Housing Finance Act 1972, as does not exceed the authority's standard amount of rent allowances, within the meaning of that Act, for that year.

(7) The following grants for specific services, namely grants—

(a) to the Receiver for the Metropolitan Police District under section 51 of the [1973 c. 62.] Powers of Criminal Courts Act 1973 (towards the cost of probation services) and under section 59 of the [1979 c. 55.] Justices of the Peace Act 1979 (grants for magistrates' courts purposes); and

(b) under section 31 of the [1964 c. 48.] Police Act 1964 (police grants), whether made to a committee of a local authority or not,

shall be treated for the purposes of subsection (2) above as grants made to local authorities; and to the extent that, in any year, any expenditure of the Receiver for the Metropolitan Police District or of a combined police authority is met by any such grants, that expenditure shall be treated for the purposes of this section as relevant expenditure in relation to that year.

(8) In this section—

• " housing subsidies " means such grants to local authorities out of money provided by Parliament for housing as may be specified by the Secretary of State as housing subsidies for the purposes of this section ; and

• " rate fund "—

  (a)

  in relation to the Greater London Council and the Inner London Education Authority, means any account or fund for which a precept is issued;

  (b)

  in relation to the Common Council of the City of London and the Council of the Isles of Stilly, means the general rate; and

  (c)

  in relation to any other local authority, means the county fund or general rate fund.