- Latest available (Revised)
- Point in Time (01/04/2002)
- Original (As enacted)
Point in time view as at 01/04/2002. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
Local Government Act 1974, Section 1 is up to date with all changes known to be in force on or before 09 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
(1)Subject to the provisions of this Part of this Act, the Secretary of State shall, for the year 1974-75 and each subsequent year, make grants to local authorities in England and Wales in accordance with this section; and any grants made in pursuance of this subsection shall be known as “rate support grants”.
(2)For the purpose of fixing the estimated aggregate amount of the rate support grants for any year, the Secretary of State shall determine the aggregate amount (in this Part of this Act referred to as “the amount available for grants”) which he estimates is to be available for the payment out of money provided by Parliament of grants, other than housing subsidies and grants under section 8 below [F1or section 69 of the M1Local Government, Planning and Land Act 1980][F2or paragraph 29 of Schedule 32 to that Act], to local authorities in respect of their relevant expenditure for that year, and shall deduct therefrom—
(a)the portion of the amount available for grants which he estimates will be allocated to grants in respect of specific services, other than grants under section 8 below [F3or section 69 of the M2Local Government, Planning and Land Act 1980][F4or paragraph 29 of Schedule 32 to that Act]; and
(b)the portion of that amount which is prescribed as the aggregate amount of supplementary grants for transport purposes, within the meaning of section 6 below; and
(c)the portion of that amount which is prescribed as the aggregate amount of supplementary grants under section 7 below;
and so much of the amount available for grants as remains after making those deductions shall be the estimated aggregate amount of the rate support grants for that year.
(3)Before determining the amount available for grants and the portions of that amount mentioned in paragraphs (a) to (c) of subsection (2) above, the Secretary of State shall consult with such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to him to be desirable, and shall take into account—
(a)the latest information available to him as to the rate of relevant expenditure;
(b)any probable fluctuation in the demand for services giving rise to relevant expenditure, so far as the fluctuation is attributable to circumstances prevailing in England and Wales as a whole which are not under the control of local authorities;
(c)the need for developing those services and the extent to which, having regard to general economic conditions, it is reasonable to develop those services; and
(d)the current level of prices, costs and remuneration and any future variation in that level which in the opinion of the Secretary of State will result from decisions which appear to him to be final and which will have the effect of increasing or decreasing any particular prices, costs or remuneration.
(4)Subject to subsection (6) below [F5and section 8(3) of the M3Lotteries and Amusements Act 1976], in this section “relevant expenditure”, in relation to any year, means the expenditure for that year falling to be defrayed out of the rate fund of a local authority—
(a)reduced by the amount of any payments of such descriptions as the Secretary of State may determine which fall to be made for that year into the rate fund; and
(b)exclusive of the items of expenditure specified in subsection (5) below .
(5)The items of expenditure referred to in subsection (4)(b) above are—
(a)sums falling to be paid to another local authority by virtue of a precept or other instrument;
(b)expenditure under section 1(1) (awards for university and comparable courses) . . . F6 of the M4Education Act 1962; and
(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7
(6)The following grants for specific services, namely grants—
[F8(a)to the Receiver for the Metropolitan Police District under [F9section 51 of the M5Powers of Criminal Courts Act 1973] (towards the cost of probation services) and under [F10section 59 of the M6Justices of the Peace Act 1979] (grants for magistrates’ courts purposes), and]
(b)under section 31 of the M7Police Act 1964 (police grants), whether made to a committee of a local authority or not,
shall be treated for the purposes of subsection (2) above as grants made to local authorities; and to the extent that, in any year, any expenditure [F11of the Receiver for the Metropolitan Police District or] of a combined police authority is met by any such grants, that expenditure shall be treated for the purposes of this section as relevant expenditure in relation to that year.
(7)In this section—
“housing subsidies” means such grants to local authorities out of money provided by Parliament for housing as may be determined by the Secretary of State to be housing subsidies for the purposes of this section; and
“rate fund”, in relation to the Greater London Council, the Common Council of the City of London and the Council of the Isles of Scilly, means the general fund or general rate, as the case may require, and in relation to any other local authority means the county fund or general rate fund.
(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
Textual Amendments
F1Words inserted by Local Government, Planning and Land Act 1980 (c. 65), s. 69(3)
F2Words inserted by Local Government, Planning and Land Act 1980 (c. 65), Sch. 32 para. 31
F3Words inserted by Local Government, Planning and Land Act 1980 (c. 65), s. 69(3)
F4Words inserted by Local Government, Planning and Land Act 1980 (c. 65), Sch. 32 para. 31
F5Words substituted by Lotteries and Amusements Act 1976 (c. 32), Sch. 4 para. 9
F6Words repealed by Education Act 1975 (c. 2), Sch. Pt. I
F7S. 1(5)(c) repealed by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), ss. 3, 6, Sch. 1 Pt. I
F8S. 1(6)(a) repealed (3.7.2000) by 1999 c. 29, ss. 325, 423, Sch. 27 para. 38(a), Sch. 34 Pt. VII (with Sch. 12 para. 9(1)); S.I. 2000/1648, art. 2, Sch.
F9Words substituted by virtue of Powers of Criminal Courts Act 1973 (c. 62), Sch. 4 para. 1(b)
F10Words substituted by Justices of the Peace Act 1979 (c. 55), Sch. 2 para. 28
F11Words in s. 1(6) repealed (3.7.2000) by 1999 c. 29, ss. 325, 423, Sch. 27 para. 38(b), Sch. 34 Pt. VII (with Sch. 12 para. 9(1)); S.I. 2000/1648, art. 2, Sch.
Modifications etc. (not altering text)
C1S. 1 restricted by Housing Act 1980 (c. 51), s. 117(3)(5)
C2Power to repeal s. 1(1)–(7) conferred by Local Government, Planning and Land Act 1980 (c. 65), s. 53(10)(11)(c), Sch. 8
C3S. 1(2)(4) amended by Price Commission Act 1977 (c. 33), s. 18(3)
Marginal Citations
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: