The Local Authorities (Funds) (England) Regulations 1992

2.—(1) A billing authority shall as regards each financial year beginning in or after 1994 (“the year in question”) estimate whether there is a surplus or deficit in its collection fund for the preceding financial year and, if so, the amount of the 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) Subject to sub-paragraph (5), 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 (referred to in this paragraph as “the relevant prior year”) beginning two years before the beginning of the year in question and was shown in the billing authority’s accounts for the relevant prior 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 preceding financial year in respect of the following items—

(i) council tax,

(ii) transfers pursuant to any direction made by the Secretary of State under section 98(4) and (5) of the 1988 Act in respect of council tax benefits, reductions in amounts of council tax and reductions for lump sum payment of council tax,

(iii) transfers to that authority’s collection fund under section 97(4)

of the 1988 Act and any payments by relevant major precepting authorities under regulation 12 in respect of an estimated deficit in the billing authority’s collection fund for the relevant prior year,

(iv) transfers to that authority’s collection fund under section 97(2)

of the 1988 Act, and

(v) 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 which the Secretary of State specifies under section 90(1) of the 1988 Act are to be paid into 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 and community charges, credited or to be credited, in accordance with proper practices, to its collection fund income and expenditure account for the preceding financial year, including prior year adjustments and amounts credited or to be credited relating to reductions in provision previously made for non-collection of council tax.

(4) Subject to sub-paragraph (5), 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 relevant prior year and was shown in the billing authority’s accounts for that year as the collection fund income and expenditure account 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 preceding financial year in respect of the following items—

(i) precepts payable to relevant major precepting authorities under regulation 3,

(ii) transfers to the billing authority’s general fund under section 97(1) of the 1988 Act,

(iii) transfers to that authority’s general fund under section 97(3) of the 1988 Act and any payments to relevant major precepting authorities under regulation 3 in respect of an estimated surplus in the billing authority’s collection fund for the relevant prior year, and

(iv) 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 and community charges, charged or to be charged, in accordance with proper practices, to its collection fund income and expenditure account for the preceding financial year, including prior year adjustments in respect of council tax and amounts charged or to be charged in respect of provision for non-collection of council tax.

(5) As regards the financial year beginning in 1994, the items in sub-paragraphs (3)(a), (3)(b)(iii), (4)(a) and (4)(b)(iii) shall not be taken into account for the purposes of sub-paragraphs (3) and (4).