Local Government, Planning and Land Act 1980

56 The block grant

(1) The amount of block grant for a year is the balance left after deducting the amount of domestic rate relief grant from the aggregate amount of the rate support grants.

(2) If—

(a) the council of a county, the Greater London Council or the Inner London Education Authority give notice to the Secretary of State that they do not wish to be paid block grant for any year ; and

(b) he gives them notice that he consents to it not being paid to them,

no amount shall be payable to them by way of that grant for that year.

(3) Any amount that would have been payable to them shall be distributed among the appropriate authorities as part of their block grant for the year.

(4) In subsection (3) above "the appropriate authorities" means—

(a) in relation to the council of a county, the councils of districts in the county;

(b) in relation to the Greater London Council, the London borough councils and the Common Council of the City of London; and

(c) in relation to the Inner London Education Authority, those of the councils mentioned in paragraph (b) above whose areas are in the Inner London Education Area.

(5) The amount to be paid to an authority under subsection (3) above shall bear the same proportion to the amount that would have been payable to the county council or the Greater London Council or the Inner London Education Authority as the gross rateable value of the authority's area bears to the gross rateable value of the county, Greater London or the Inner London Education Area, as the case may be.

(6) Subject to subsection (7) below, the amount of block grant payable to a local authority is to be calculated by deducting from the total expenditure to be incurred by them during the year the product arrived at by multiplying their grant-related poundage by the gross rateable value of their area.

(7) The amount of block grant payable to a local authority, other than any amount payable under subsection (3) above, may not exceed the total expenditure to be incurred by them during the year.

(8) In this Part of this Act—

• " grant-related expenditure ", in relation to each authority to whom block grant is payable for any year, means the aggregate for the year of their notional expenditure having regard to their functions ;

• " grant-related poundage ", in relation to each such authority, means subject to paragraph 6 of Schedule 11 below, a poundage related—

  (a)

  to a given ratio between their total expenditure and their grant-related expenditure; or

  (b)

  to a given difference between their total expenditure divided by their population and their grant-related expenditure so divided ;

• " gross rateable value ", in relation to each such authority, means the aggregate of the rateable values of the hereditaments in their area ;

• " rateable values", in relation to hereditaments, means subject to subsection (14) below, rateable values ascribed to them in the valuation lists on a date to be specified for each year in the Rate Support Grant Report;

• "total expenditure", in relation to each such authority, means the expenditure which is relevant expenditure within the meaning of subsection (5) of section 54 above reduced by the amount of any grant to them mentioned in subsection (2) of that section and adjusted by the addition or subtraction of such descriptions of expenditure or receipts as the Secretary of State may direct, and

• " valuation list" has the meaning assigned to it by section 115 of the [1967 c. 9.] General Rate Act 1967.

(9) The Secretary of State may—

(a) defray any expenditure incurred in any year in the provision of services for local authorities by any body specified in regulations made by the Secretary of State; and

(b) deduct from the aggregate amount of the block grant for that year, such amount, not exceeding the total of the expenditure so defrayed, as appears to him to be appropriate;

and any regulations made under section 2(7) of the [1974 c. 7.] Local Government Act 1974 shall have effect for the purposes of this subsection as if they had been made under it.

(10) Before giving a direction under subsection (8) above or exercising his powers under subsection (9) above, the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.

(11) Any such direction shall be given in accordance with principles to be applied to all local authorities.

(12) Regulations under subsection (9) above shall be made by statutory instrument, and a statutory instrument containing such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(13) The reference to hereditaments in subsection (8) above includes a reference to a notional hereditament which a body is treated as occupying by virtue of any enactment.

(14) A Rate Support Grant Report may provide that for the year to which it relates the rateable value of hereditaments falling within any class of hereditaments shall be ascertained for the purposes of this Part of this Act otherwise than by reference to the values ascribed to them in the valuation list.