Local Government Act 2003

27 Budget calculations: report on inadequacy of controlled reserve E+W

(1) This section applies where an authority to which section [F1 31A, 32, 42A] or 43 of the Local Government Finance Act 1992 (c. 14) or section 85 of the Greater London Authority Act 1999 (c. 29) applies is making calculations in accordance with that section.

(2) If in relation to the previous financial year it appears to the chief finance officer that a controlled reserve is or is likely to be inadequate, he must report to the authority on—

(a) the reasons for that situation, and

(b) the action, if any, which he considers it would be appropriate to take to prevent such a situation arising in relation to the corresponding reserve for the financial year under consideration.

(3) For the purposes of subsection (2)—

(a) a controlled reserve is a financial reserve of a description specified by regulations under section 26(3), and

(b) such a reserve is inadequate if the balance of the reserve at the end of the financial year concerned is less than the minimum amount determined in accordance with regulations under section 26(2).

(4) An authority to which a report under this section is made shall have regard to the report when making decisions about the calculations in connection with which it is made.

(5) In this section, “chief finance officer” has the same meaning as in section 25.

Textual Amendments

F1 Words in s. 27(1) substituted (3.12.2011) by Localism Act 2011 (c. 20), s. 240(2), Sch. 7 para. 45; S.I. 2011/2896, art. 2(i)

Commencement Information

I1 S. 27 in force at 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I (with Sch. 2 para. 4)

I2 S. 27 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)