(1)Subject to the following provisions of this section, the Secretary of State may provide in a Rate Support Grant Report that the amount of block grant payable to a local authority for a year shall be calculated by deducting from their total expenditure, instead of the product of their grant-related poundage and the gross rateable value of their area, the product of those sums multiplied by a multiplier determined by the Secretary of State.
(2)Except as provided in subsection (3) below, the power conferred by subsection (1) above may only be exercised for the purpose of increasing the amount of block grant payable to a local authority.
(3)The power may be exercised for the purpose of decreasing the amount of block grant payable to a local authority if the Secretary of State is satisfied that there will be an unreasonable increase, unless he exercises the power, in the amount of block grant payable to the authority for a year, compared with the amount payable to them for the previous year.
(4)The power conferred by subsection (1) above may be exercised so as to determine different multipliers for different authorities.
(5)Except as provided by subsection (7) below, the power—
(a)may only be exercised—
(i)in accordance with principles to be applied to all local authorities; or
(ii)in accordance with principles to be applied to all local authorities belonging to the appropriate class; and
(b)may only be exercised for any such purpose as is specified in paragraphs (a) to (d) of subsection (6) below.
(6)The purposes mentioned in subsection (5) above are—
(a)limiting the change in the amount of block grant payable to an authority for the year from the amount payable in the previous year ;
(b)taking account of less than the gross rateable value of an authority or group of authorities in calculating the amount of block grant payable;
(c)reducing, whether in whole or in part, disparities in the rates levied in different rating areas of Greater London other than the Temples ; and
(d)any such other purpose as the Secretary of State may determine.
(7)The power may also be exercised in accordance with principles to be applied to the councils of counties to whose police expenses section 57 of the [1964 c. 48.] Police Act 1964 applies (counties falling partly within the Metropolitan Police District).
(8)If the Secretary of State exercises that power, the principles on which he exercises it shall be specified in the Rate Support Grant Report.
(9)In this Part of this Act "the appropriate class ", in relation to a local authority, means the class specified in subsection (10) below to which that authority belongs.
(10)Subject to subsection (11) below, any local authority of a description specified in any of the paragraphs of section 53(5) above belongs to a class consisting of all the authorities of that description.
(11)Section 53(5) above shall be treated for the purposes of this section—
(a)as if paragraph (a) referred to two classes, namely—
(i)councils of metropolitan counties; and
(ii)councils of non-metropolitan counties;
(b)as if paragraph (d) referred to two classes, namely—
(i)councils of metropolitan districts ; and
(ii)councils of non-metropolitan districts; and
(c)as if paragraph (e) were omitted.
(12)In their application to block grant payable to a local authority for the commencing year subsections (3) and (6) (a) above shall have effect as if references to an amount determined by the Secretary of State were substituted for the references to the amount of block grant payable to the authority for the previous year.