Local Government Act 1974

12 Local rate rebate schemes

(1) Subject to the following provisions of this section, a rating authority may by resolution make for their area a scheme (in this Part of this Act referred to as a " local rate rebate scheme ") for the grant by the authority to residential occupiers of rebates from rates calculated in accordance with the provisions of the scheme by reference to their needs and resources.

(2) A local rate rebate scheme may take the form of a scheme distinct from the statutory rate rebate scheme or may operate by way of variation of that scheme, and accordingly any reference in this Part of this Act to a local rate rebate scheme includes a reference to the statutory rate rebate scheme as so varied.

(3) A local rate rebate scheme shall be so framed as to secure that, in the estimate of the rating authority,—

(a) for any rebate period no person will be entitled under the scheme to a rate rebate less than that to which he would be entitled under the statutory rate rebate scheme; and

(b) the total of the rebates which will be allowable under the local rate rebate scheme in any year will not exceed the permitted total of rebates for that year.

(4) In relation to a local rate rebate scheme for any area, the permitted total of rebates for any year is 110 per cent. of the total of the rate rebates which (if the local rate rebate scheme had not been in force) would have been allowable in that year to residential occupiers in that area under the statutory rate rebate scheme.

(5) A local rate rebate scheme may be revoked or varied by a further resolution of the rating authority and, except in so far as the Secretary of State otherwise directs,—

(a) any such scheme and any variation thereof shall take effect with respect to any rebate period beginning on or after such date as may be specified in the rating authority's resolution, and

(b) a resolution revoking a local rate rebate scheme shall take effect at the expiry of any rebate period which is current, or which expires, on such date as may be specified in the resolution,

and, as soon as practicable after a rating authority has passed a resolution making, varying or revoking a local rate rebate scheme, the authority shall send a copy of the resolution to the Secretary of State.

(6) As soon as practicable after the end of any year in which a local rate rebate scheme has been in operation, and in any case not later than 31st July next following, the rating authority concerned shall send to the Secretary of State a certificate specifying—

(a) the total amount of the rate rebates allowed in that year under the local rate rebate scheme, and

(b) the permitted total of rebates for that year and, if the local rate rebate scheme was not in operation during the whole of that year, the fraction of that permitted total which corresponds to the fraction of the year during which the local scheme was in operation.

(7) Where it appears from a certificate under subsection (6) above that the amount specified as mentioned in paragraph (a) of that subsection exceeds the permitted total or, as the case may be, the appropriate fraction of the permitted total referred to in paragraph (b) of that subsection, it shall be the duty of the rating authority to send to the Secretary of State, together with that certificate, a statement of—

(a) their proposals for varying or revoking the local rate rebate scheme so as to secure that the total of the rate rebates allowed in the year following that to which the certificate relates will not exceed the permitted total of rebates for that year ; or

(b) their reasons for believing that no change is necessary in the local rate rebate scheme in order to secure that result.

(8) If the Secretary of State is of the opinion that any proposals made by a rating authority under subsection (7)(a) above will not secure the result (referred to in that subsection, or that some variation of a local sate rebate scheme will be required to secure that result, notwithstanding the contrary view expressed by a rating authority in a statement under subsection (7)(b) above, or if it comes to the knowledge of the Secretary of State that the condition in subsection (3)(a) above is not fulfilled with respect to the entitlement of any person to a rate rebate under a local rate rebate scheme, the Secretary of State may by order provide—

(a) that from such date as may be specified in the order the local rate rebate scheme shall have effect subject to such variations as may be so specified and that, within such minimum period as may be specified, no other variations may be made in the scheme by the rating authority ; or

(b) that the local rate rebate scheme shall be revoked with effect from such date as may be specified in the order and that no new local rate rebate scheme shall be brought into operation for the rating area concerned within such period as may be so specified.