The Local Authorities (Funds) (England) Regulations 1992

1.—(1) A billing authority shall as regards the financial year beginning in 1993 estimate whether there is a surplus or deficit in its collection fund for the financial year beginning in 1992, and if so, the amount of that surplus or deficit for that year, by calculating the difference between the amount referred to in sub-paragraph (3) and the amount referred to in sub-paragraph (4).

(2) Where the amount referred to in sub-paragraph (3) is—

(a) more than the amount referred to in sub-paragraph (4), there is a surplus, the amount of which is the difference,

(b) less than the amount referred to in sub-paragraph (4), there is a deficit, the amount of which is the difference,

(c) the same as the amount referred to in sub-paragraph (4), there is no surplus or deficit.

(3) The amount referred to in this sub-paragraph is the total of—

(a) the amount of any opening surplus on the income and expenditure account of the billing authority’s collection fund which was brought forward from the financial year beginning in 1991 and was shown in the billing authority’s accounts for that year as the collection fund income and expenditure account surplus, but if the accounts for that year have not been made up and balanced, the billing authority’s estimate of any such opening surplus;

(b) the sum of the billing authority’s estimates of the amounts credited or to be credited, in accordance with proper practices, to its collection fund income and expenditure account for the financial year beginning in 1992 in respect of the following items—

(i) that authority’s share of the distributable amount calculated by the Secretary of State under Part III of Schedule 8 to the 1988 Act(1),

(ii) any grants payable by the Secretary of State,

(iii) community charges,

(iv) interest on sums held or invested in accordance with regulation 10 of the 1989 Regulations and amounts representing interest on sums transferred in accordance with that regulation and retransferred in accordance with regulation 11 of those Regulations,

(v) transfers to that authority’s collection fund in respect of interest pursuant to any direction made by the Secretary of State under section 98(5) of the 1988 Act(2),

(vi) transfers pursuant to any direction made by the Secretary of State under section 98(4) and (5) of the 1988 Act in respect of community charge benefits, community charge transitional relief reductions and community charge discounts for prompt payment, and

(vii) payments in respect of boundary changes made to that authority by any other billing authority pursuant to an agreement or award made under section 68 of the Local Government Act 1972(3) which the Secretary of State specifies under section 90(1) of the 1988 Act(4) are to be paid into that authority’s collection fund;

(c) in the case of the Common Council, an amount calculated by applying the formula—

where—

• A is that authority’s estimate of the amounts which will be paid under sections 43 and 45 of the 1988 Act(5) for the financial year beginning in 1992,

• B is that authority’s estimate of the amounts which will be transferred to its collection fund pursuant to any direction made by the Secretary of State under section 98(5) of the 1988 Act in respect of non-domestic rates for that financial year,

• C is that authority’s estimate of the amounts payable under sections 43 and 45 of the 1988 Act for that financial year which will be taken into account in the calculation of its non-domestic rating contribution for that year,

• D is that authority’s estimate of the amounts which will be transferred to its general fund pursuant to any direction made by the Secretary of State under section 98(4) of the 1988 Act in respect of non-domestic rates for that financial year; and

(d) the sum of the billing authority’s estimates of any other amounts, excluding any amounts in respect of non-domestic rates, credited or to be credited, in accordance with proper practices, to its collection fund income and expenditure account for the financial year beginning in 1992, including prior year adjustments and amounts credited or to be credited relating to reductions in provision previously made for non-collection of community charges.

(4) The amount referred to in this sub-paragraph is the total of—

(a) the amount of any opening deficit on the income and expenditure account of the billing authority’s collection fund which was brought forward from the financial year beginning in 1991 and was shown in the billing authority’s accounts for that year as the collection fund income and expenditure deficit, but if the accounts for that year have not been made up and balanced, the billing authority’s estimate of any such opening deficit;

(b) the sum of the billing authority’s estimates of the amounts charged or to be charged, in accordance with proper practices, to its collection fund income and expenditure account for the financial year beginning in 1992 in respect of the following items—

(i) precepts payable under regulation 3 of the 1989 Regulations,

(ii) transfers to that authority’s general fund under section 97 of the 1988 Act(6),

(iii) transfers to that authority’s general fund in respect of interest pursuant to any direction made by the Secretary of State under section 98(4) of the 1988 Act,

(iv) transfers to that authority’s general fund in respect of an allowance for interest arising from the temporary investment of collection fund sums pursuant to any direction made by the Secretary of State under section 98(4) of the 1988 Act, and

(v) payments in respect of boundary changes made by that authority to any other billing authority pursuant to an agreement or award made under section 68 of the Local Government Act 1972 which the Secretary of State specifies under section 90(2) of the 1988 Act are to be met from that authority’s collection fund; and

(c) the sum of the billing authority’s estimates of any other amounts, excluding any amounts in respect of non-domestic rates, charged or to be charged, in accordance with proper practices, to its collection fund income and expenditure account for the financial year beginning in 1992, including prior year adjustments and amounts charged or to be charged in respect of provision for non-collection of community charges.

(1)

Part III of Schedule 8 was substituted by the Local Government Finance Act 1992(c. 14), Schedule 10, paragraph 7, in relation to any financial year beginning on or after 1st April 1993.

(2)

Section 98 was amended by the Local Government Finance Act 1992, Schedule 10, paragraph 23, in relation to any financial year beginning on or after 1st April 1993.

(3)

1972 c. 70; section 68(6) and (7) was repealed by the Local Government and Housing Act 1989 (c. 42), Schedule 12.

(4)

Section 90 was substituted by the Local Government Finance Act 1992, Schedule 10, paragraph 20, in relation to any financial year beginning on or after 1st April 1993.

(5)

Sections 43 and 45 were amended by the Local Government Finance Act 1992, Schedule 13, paragraphs 60 and 63 respectively, in relation to any financial year beginning on or after 1st April 1993.

(6)

Section 97 was substituted by the Local Government Finance Act 1992, Schedule 10, paragraph 22, in relation to any financial year beginning on or after 1st April 1993.