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Part IIDistribution of the Net Proceeds of the National Lottery

The distribution system

21The National Lottery Distribution Fund

(1)There shall be a fund maintained under the control and management of the Secretary of State and known as the National Lottery Distribution Fund.

(2)The Secretary of State shall pay into the Distribution Fund all the sums that are paid to him by virtue of section 5(6).

22Apportionment of money in Distribution Fund

(1)Every sum that is paid into the Distribution Fund under section 21(2) shall be apportioned as follows.

(2)So much of the sum as the Secretary of State considers appropriate shall be allocated for making payments under section 31 and held in the Distribution Fund for that purpose.

(3)Of the balance—

(a)20 per cent. shall be allocated for expenditure on or connected with the arts,

(b)20 per cent. shall be allocated for expenditure on or connected with sport,

(c)20 per cent. shall be allocated for expenditure on or connected with the national heritage,

(d)20 per cent. shall be allocated for charitable expenditure, and

(e)20 per cent. shall be allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium.

23The distributing bodies

(1)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the arts shall be held in the Distribution Fund—

(a)as to 97.2 per cent., for distribution by the Arts Council of Great Britain, and

(b)as to 2.8 per cent., for distribution by the Arts Council of Northern Ireland.

(2)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with sport shall be held in the Distribution Fund—

(a)as to 83.3 per cent., for distribution by the Sports Council,

(b)as to 8.9 per cent., for distribution by the Scottish Sports Council,

(c)as to 5 per cent., for distribution by the Sports Council for Wales, and

(d)as to 2.8 per cent., for distribution by the Sports Council for Northern Ireland.

(3)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the national heritage shall be held in the Distribution Fund for distribution by the Trustees of the National Heritage Memorial Fund.

(4)So much of any sum paid into the Distribution Fund as is allocated for charitable expenditure shall be held in the Distribution Fund for distribution by the National Lottery Charities Board (established under section 37).

(5)So much of any sum paid into the Distribution Fund as is allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium shall be held in the Distribution Fund for distribution by the Millennium Commission (established under section 40).

24Payments from Distribution Fund to distributing bodies

At such times as the Secretary of State thinks appropriate, payments of such amounts as he thinks appropriate may be made to a body specified in section 23 out of so much of any money in the Distribution Fund as is held for distribution by that body.

25Application of money by distributing bodies

(1)Subject to the provisions of this Part, a body shall distribute any money paid to it under section 24 for meeting expenditure of the relevant description mentioned in section 22(3).

(2)A body shall not under subsection (1) distribute money for any purpose or in any manner if it does not have power to distribute money for that purpose or in that manner apart from subsection (1).

(3)A body may defray out of any money paid to it under section 24 any expenses incurred by the body in consequence of this Act.

(4)The Trustees of the National Heritage Memorial Fund may apply any money paid to them under section 24 for any purpose for which they have power to apply money under section 4 of the [1980 c. 17.] National Heritage Act 1980 (acquisition, maintenance or preservation of property in respect of which they may make grants or loans under section 3(1) of that Act).