11(1)If, after the amount of the resources element payable to a local authority for any year has been determined under paragraph 10 above,—
(a)the rateable values of hereditaments in the authority's area are reduced with effect from a date on or before that which is relevant for determining the aggregate of the effective rateable values of all the hereditaments in the authority's area for that year under paragraph 9 above, and
(b)the effect of that reduction is to produce a reduction in the aggregate of the effective rateable values of all the hereditaments in the authority's area which is of such a magnitude that, expressed as a percentage of the initially ascertained aggregate figure, it exceeds such percentage as may be specified for the purposes of this paragraph in regulations made by the Secretary of State, and
(c)the authority by notice in writing request the Secretary of State to give a direction under this paragraph,
the Secretary of State shall direct that the amount of the resources element payable to the authority for that year shall be recalculated in accordance with the following provisions of this paragraph and a further payment on account of that element shall be made to the local authority accordingly.
(2)Where sub-paragraph (1) above applies—
(a)the rateable value per head of population of the local authority's area for the year concerned shall be recalculated under paragraph 9 above by treating the initially ascertained aggregate figure as reduced by the amount of the excess referred to in sub-paragraph (1)(b) above ; and
(b)subject to any provision made by virtue of section 4(5) of this Act, paragraph 10 above shall have effect accordingly for the purpose of determining the amount which, on the basis of that recalculation, would have been payable to the authority for that year.
(3)The further payment referred to in sub-paragraph (1) above shall be an amount equal to the difference between the amount previously paid to the authority for the year concerned on account of the resources element and the amount determined as mentioned in sub-paragraph (2)(b) above.
(4)In this paragraph " the initially ascertained aggregate figure ", in relation to any year, means the aggregate figure ascertained under paragraph 9(1)(a) above for the purposes of the first determination of the amount of the resources element payable to the authority in that year.
(5)The provisions of this paragraph shall have effect notwithstanding that the actual aggregate amount of the resources element for the year concerned may have been specified in an order under section 4(1) of this Act, and if any amount has been so specified it shall be treated as having been increased to such amount as may be necessary to provide for any further payment made to a local authority under this paragraph.