Local Government (Miscellaneous Provisions) Act 1976

Financial provisions

28 Funds of local authorities etc.

(1) In Schedule 13 to the [1972 c. 70.] Local Government Act 1972 (which among other things relates to funds of local authorities and certain other authorities), for paragraphs 16 to 18 (which relate to capital funds, Housing Revenue Accounts and repairs and renewals funds) there shall be substituted the following paragraphs—

“16 (1) A local authority may—

(a) establish such funds as the authority consider appropriate for the purpose of meeting any expenditure of the authority in connection with their functions ; and

(b) make into a fund established under this paragraph such payments as the authority think fit;

but the powers conferred on an authority by paragraph (a) of this sub-paragraph do not authorise the authority to establish either such a loans fund as is mentioned in paragraph 15 of this Schedule or a superannuation fund or a fund for purposes for which the authority are required to maintain a fund by virtue of any enactment.

(2) The money in a fund established under this paragraph shall, until it is applied for the purposes of the fund or in a manner authorised by or under any enactment, be invested in securities in which superannuation funds may for the time being be invested.

(3) Any fund maintained by a local authority for the purposes for which the authority have power by virtue of this paragraph to establish a fund shall be deemed to be established by the authority under this paragraph and may be dealt with accordingly; and it is hereby declared that references in any enactment to a fund established under this paragraph or to an authority by whom a fund is so established include references to a fund which is deemed to be so established or, as the case may be, to the authority who are deemed to have established it.

17 (1) A fund established by a local authority under paragraph 16 of this Schedule for purposes other than those of an undertaking mentioned below shall not be used to meet, directly or indirectly, any expenditure incurred by the authority for the purposes of an undertaking of the authority which is a transport, airport, district heating, harbour, dock, pier or ferry undertaking or is a market or a civic restaurant, except that such a fund may be used—

(a) if it is such a fund as is mentioned in sub-paragraph (2) of this paragraph, by the authority for any purpose which is mentioned in that sub-paragraph and is connected with such an undertaking; and

(b) if it is not such a fund as is mentioned in that sub-paragraph and the authority is the Greater London Council, by the Council to meet any expenditure incurred by them for the purposes of a civic restaurant.

(2) A fund established by a local authority under paragraph 16 of this Schedule for the purpose only of providing money to make good loss or damage suffered by the authority as a result of an occurrence against the risk of which the authority can insure shall not be used for any further purpose except that of paying premiums on a policy of insurance against the risk; and while a local authority maintain such a fund in respect of a risk any obligation imposed on the authority by statute or otherwise to insure against the risk shall be deemed to be satisfied unless the statute or a relevant agreement provides otherwise.

(3) A fund established by a county council under paragraph 16 of this Schedule for the purpose of defraying expenditure to be incurred from time to time in repairing, maintaining, replacing and renewing any buildings, works, plant, equipment or articles belonging to the council may also be used for defraying such expenditure in respect of buildings, works, plant, equipment or articles belonging to a police authority which is a committee of the council.

18 Money received from the disposal of any property the income from which or the expenditure on which is included in a local authority's Housing Revenue Account shall not without the consent of the Secretary of State be paid into a fund established by the authority under paragraph 16 of this Schedule.”

(2) In paragraph 19 of the said Schedule 13 (which regulates the use by an authority, for any purpose for which the authority has a statutory power to borrow, of money which forms part of a fund to which that paragraph applies and which is not for the time being required for the purposes of the fund), for sub-paragraph (5) (which specifies the funds to which that paragraph applies) there shall be substituted the following sub-paragraph—

“(5) This paragraph applies to any fund established for the repayment or redemption of debt, any superannuation fund and any fund established under paragraph 16 of this Schedule.”

(3) Any power to make a rate or issue a precept which is exercisable by an authority which has established a fund under the paragraph 16 included in the said Schedule 13 by virtue of subsection (1) of this section shall include power to make or issue it for the purpose of making payments into that fund.

29 Repayment of unclaimed compensation etc paid into court

(1) Where—

(a) a local authority has paid money into court in pursuance of section 76 or 85 of the [1845 c. 18.] Lands Clauses Consolidation Act 1845 or section 9 of or Schedule 2 or 3 to the [1965 c. 56.] Compulsory Purchase Act 1965 ; and

(b) after the expiration of the period of twelve years beginning with the date when the money was paid into court any of the money, or any assets attributable to the money by way of interest, securities, accumulations from securities, proceeds of sale of securities or otherwise, has not or have not been ordered by a court of competent jurisdiction to be paid or transferred to or applied for the benefit of the authority or another person,

the High Court may, on the application of the authority, order that the money or assets shall be paid or transferred to the authority.

(2) Where at any time after money has been paid or assets have been transferred to a local authority in pursuance of the preceding subsection it appears to the High Court, on the application of another person, that the Court would have ordered the whole or part of the money or assets to be paid or transferred to the applicant if the money or assets had not been paid or transferred to the authority as aforesaid, the Court may order the authority to pay to the applicant such a sum as the Court considers just.

(3) If a former authority paid money into court as mentioned in subsection (1)(a) of this section in respect of land or an interest in land which—

(a) is held by a local authority; and

(b) has not since its acquisition by the former authority been transferred otherwise than by an Act or an order made under an Act,

subsection (1) of this section shall have effect in relation to the payment as if it had been made by the local authority on the date on which it was actually made; and in this subsection " former authority" means an authority which has ceased to exist and which, when it existed, was constituted in pursuance of the enactments relating to local government which were then in force.

(4) For the purposes of the preceding subsection any land held by a parish or community council shall be treated as held by the district council whose area includes the area of the parish or community council.

30 Power to forgo repayment of advances of remuneration paid to deceased employees

(1) If a person in the employment of a local authority—

(a) receives from the authority remuneration in respect of a future period on the assumption that he will be employed in that employment throughout that period; and

(b) dies before the expiration of that period,

the authority may, subject to the following subsection, forgo the repayment of so much of the remuneration as relates to the period after his death.

(2) An authority shall not be entitled to forgo such a repayment in respect of a period after the relevant death if—

(a) a pension is payable for that period in respect of the deceased out of money provided by Parliament or out of a fund which is maintained by the authority or into which contributions have been paid by the authority in respect of service of the deceased ; and

(b) the rate of the pension is not less than the rate of relevant remuneration which was received by the deceased for his last year of service in the employment in question or, if relevant remuneration at different rates was received by him for that year, is not less than the highest of those rates;

and in paragraph (b) of this subsection " relevant remuneration ", in relation to a deceased person and a year, means remuneration which would have fallen to be taken into account in respect of that year in calculating a retirement pension payable to him in respect of the employment in question on his attaining pensionable age and being granted such a retirement pension.

(3) References to a local authority in the preceding provisions of this section include a body which is a police authority by virtue of the [1964 c. 48.] Police Act 1964 other than the Secretary of State; and for the purposes of those provisions a member of a police force maintained by such a body shall be treated as employed by the body and references to employment in those provisions shall be construed accordingly.

31 Indemnities for officers of local authorities appointed receivers or administrators

If an officer of a local authority is appointed as a receiver for a patient in pursuance of section 105 of the [1959 c. 72.] Mental Health Act 1959 or, on the nomination of the authority, as the administrator of the estate of a deceased person, the authority may pay to the officer any sum which he becomes liable to pay in consequence of the appointment and may pay the premiums in respect of any policy of insurance for indemnifying the officer from the consequences of any act or omission connected with the appointment which occurs while he holds the appointment.