Local Government, Planning and Land Act 1980

PART VI Rate Support Grant

Amendments relating to existing system of rate support grants

48 General power to reduce rate support grant

(1) The Secretary of State may reduce the amount of rate support grant payable to a local authority for the year 1980-81 and any subsequent year before the commencing year if the uniform rate for that authority's area in that year exceeds the notional uniform rate.

(2) In this section—

• " notional uniform rate " means the rate which, having regard to payments of the needs element of rate support grant and the prescribed national standard rateable value per head of population, the Secretary of State considers that each rating authority in England and Wales would need to levy in order to finance the spending needs of the authority and of all authorities with power to issue precepts to the authority; and

• " uniform rate "—

  (a)

  in relation to authorities outside Greater London, has the meaning assigned to it for the purposes of sub-paragraph (1) of paragraph 10 of Schedule 2 to the [1974 c. 7.] Local Government Act 1974 by sub-paragraph (3) of that paragraph; and

  (b)

  in relation to authorities in Greater London, has that meaning subject to any adjustment of the amount made by the Secretary of State.

(3) A report under section 3(3) of the Local Government Act 1974 (reports on rate support grant orders) shall specify the amount of the notional uniform rate.

(4) The notional uniform rate for the year 1980-81 shall be of such an amount as is specified in the report for that year under section 3(3) of the Local Government Act 1974.

(5) A report under section 4(2) of that Act (reports on redetermination) shall specify the principles on which the Secretary of State has made any adjustment of the uniform rates of authorities in Greater London.

(6) Where the Secretary of State makes any such adjustment, he shall apply the same principles in making it to all authorities in Greater London.

(7) Any expression used in this section or in section 49 or 50 below and to which a meaning is assigned by the [1974 c. 7.] Local Government Act 1974 has that meaning for the purposes of those sections.

49 Reduction of resources element

(1) In any case where the Secretary of State makes an order under section 4 of the Local Government Act 1974 (orders varying rate support grant orders) he may make a fresh determination of the amount of the resources element of rate support grant payable to a local authority for the year to which the order relates as provided in this section.

(2) A determination under this section shall be made by multiplying the uniform rate for the area of a local authority by a multiplier of an amount less than unity.

(3) Different multipliers may be determined under this section for different authorities.

(4) The principles on which multipliers are determined under this section shall be specified in an order made by statutory instrument by the Secretary of State.

(5) The same principles shall be applied to every determination under this section of a multiplier for any year.

(6) An order under this section shall be laid before the House of Commons and shall not have effect until approved by a resolution of that House; and no determination shall be made under this section until the order has effect.

50 Reduction of needs element for authorities in Greater London

(1) The Secretary of State may vary the amount of the needs element of rate support grant payable to the council of a London borough or the Common Council of the City of London for any year, in the manner provided in this section, if the rateable value per head of the population of their area, as determined under paragraph 9 of Schedule 2 to the Local Government Act 1974, exceeds the national standard rateable value per head of population, as defined by paragraph 8 of that Schedule.

(2) The Secretary of State shall carry out the variation mentioned in subsection (1) above, in relation to any authority, by multiplying the additional amount of needs element payable by virtue of the additional factors prescribed in relation to them under paragraph 1(b) of Schedule 2 to the Local Government Act 1974 by a multiplier determined on principles specified in an order made by statutory instrument by the Secretary of State.

(3) Different multipliers may be determined under this section for different authorities.

(4) The same principles shall be applied to every determination under this section for any year.

(5) An order under this section shall be laid before the House of Commons and shall not have effect until approved by a resolution of that House ; and no variation shall be made under this section until the order has effect.

51 Supplementary grants for transport purposes

(1) Notwithstanding anything in the [1974 c. 7.] Local Government Act 1974, the power of making grants under section 6(1) of that Act (supplementary grants for transport purposes payable by Minister of Transport in relation to England and Secretary of State in relation to Wales) may be exercised separately and differently for England and for Wales.

(2) An order made by statutory instrument may provide that, with effect from such year as may be specified in the order, no supplementary grants for transport purposes under section 6 of the Local Government Act 1974 shall be paid or that no such grants shall be paid except in respect of expenditure of a description specified in the order.

(3) Any such order shall be made—

(a) for England, by the Minister of Transport; and

(b) for Wales, by the Secretary of State.

(4) An order under this section may contain such provisions as appear to the Minister of Transport or, as the case may be, the Secretary of State to be necessary or proper in consequence of the provisions of the order, including provisions amending, repealing or revoking (with or without savings) any enactment or instrument made under an enactment.

(5) In subsection (4) above "enactment" includes an enactment contained in this Act.

(6) The power to make orders under this section includes power, from the beginning of the commencing year, to specify different years in relation to England and to Wales and to make other different provision in relation to them.

(7) No order under this section shall have effect until approved by a resolution of each House of Parliament.

52 Separate provision for Wales

(1) Notwithstanding anything in the Local Government Act 1974, the powers—

(a) of. specifying under section 2(7) (a) of that Act bodies whose expenditure in the provision of services for local authorities may be defrayed by the Secretary of State ; and

(b) of making grants under section 7(1) of that Act (supplementary grants towards expenditure with respect to National Parks),

may be exercised separately and differently for England and for Wales.

(2) Nothing in subsection (1) above shall affect any regulations made by virtue of section 2(7)(a) of the [1974 c. 7.] Local Government Act 1974 before the passing of this Act.

New system of rate support grants

53 Introduction of new system of rate support grants

(1) Subject to the provisions of this Part of this Act, the Secretary of State shall, for the commencing year and each subsequent year, make out of money provided by Parliament to local authorities in England and Wales in accordance with the provisions of this Part of this Act—

(a) a grant to be known as " domestic rate relief grant" and

(b) a grant to be known as " block grant".

(2) The grants made in pursuance of subsection (1) above shall together be known as "rate support grants ".

(3) Rate support grants as defined in section 1 of the Local Government Act 1974 shall not be payable for the commencing year or for any subsequent year.

(4) For the commencing year and any subsequent year rate support grants for local authorities in England and local authorities in Wales may be administered separately and differently; and this Part of this Act shall be construed accordingly in relation to rate support grants for any year for which such grants are so administered.

(5) The following bodies are local authorities for the purposes of this Part of this Act, namely—

(a) the council of a county;

(b) the Greater London Council;

(c) the Inner London Education Authority ;

(d) the council of a district;

(e) the council of a London borough;

(f) the Common Council of the City of London; and

(g) the Council of the Isles of Stilly.

(6) For the purposes of this Part of this Act the area of the Inner London Education Authority is the Inner London Education Area.

(7) The Sub-Treasurer of the Inner Temple and the Under Treasurer of the Middle Temple are local authorities for the purposes of the provisions of this Part of this Act relating to domestic rate relief grant.

(8) Subject to the following provisions of this Part of this Act, payments in respect of rate support grants shall be made to a local authority at such times as the Secretary of State may with the consent of the Treasury specify, and shall be made in aid of the revenues of the authority generally.

(9) In this Part of this Act " the commencing year " means such year as the Secretary of State may by order made by statutory instrument appoint.

(10) The Secretary of State may by order made by statutory instrument direct that any enactment to which this subsection applies shall cease to have effect on such date as the order may specify.

(11) The enactments to which subsection (10) above applies are—

(a) sections 48 to 51 and 52(1)(a) and (2) above ;

(b) section 69(3) below ;

(c) the provisions specified in Schedule 8 to this Act;

(d) paragraph 31 of Schedule 32 to this Act; and

(e) section 48(1 A)(a) of the [1967 c. 9.] General Rate Act 1967 (standard amount for purposes of domestic rate relief).

54 The aggregate amount of rate support grants

(1) For the purpose of fixing the 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 to local authorities in respect of their relevant expenditure for that year, other than—

(a) housing subsidies;

(b) grants under section 8 of the Local Government Act 1974;

(c) grants under section 69 of this Act; and

(d) grants under paragraph 29 of Schedule 32 to this Act.

(2) The Secretary of State shall deduct from the amount determined under subsection (1) above—

(a) the portion of the amount available for grants which he estimates will be allocated to grants in respect of specific services, other than—

(i) grants under section 8 of the Local Government Act 1974,

(ii) grants under section 69 of this Act, and

(iii) grants under paragraph 29 of Schedule 32 to this Act; and

(b) the portion of that amount which is prescribed as the aggregate amount of supplementary grants for transport services within the meaning of section 6 of the [1974 c. 7.] Local Government Act 1974; and

(c) the portion of that amount which is prescribed as the aggregate amount of supplementary grants under section 7 of that Act.

(3) So much of the amount available for grants as remains after making the deductions required under subsection (2) above shall be the aggregate amount of the rate support grants for that year.

(4) 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—

(i) in England as a whole; or

(ii) in Wales as a whole,

being circumstances 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 them; 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.

(5) Subject—

(a) to subsection (7) below;

(b) to section 6(3) of the [1975 c. 67.] Housing Finance (Special Provisions) Act 1975 (which relates to certain sums charged to a local authority's general rate fund);

(c) to section 8(3) of the [1976 c. 32.] Lotteries and Amusements Act 1976, (proceeds of local lotteries); and

(d) to section 117(3) of the [1980 c. 51.] Housing Act 1980 (rate fund contributions under section 3(4) of the [1975 c. 6.] Housing Rents and Subsidies Act 1975),

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—

(i) reduced by the amount of any payments of such descriptions as the Secretary of State may specify which fall to be made for that year into the rate fund ; and

(ii) exclusive of the items of expenditure mentioned in sub section (6) below.

(6) The items of expenditure referred to in subsection (5)(ii) 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) or section 2(3) (grants to persons undergoing training as teachers) of the [1962 c. 12.] Education Act 1962; and

(c) so much of the allowances granted in the year in question under a local authority's allowance scheme, within the meaning of Part II of the [1972 c. 47.] Housing Finance Act 1972, as does not exceed the authority's standard amount of rent allowances, within the meaning of that Act, for that year.

(7) The following grants for specific services, namely grants—

(a) to the Receiver for the Metropolitan Police District under section 51 of the [1973 c. 62.] Powers of Criminal Courts Act 1973 (towards the cost of probation services) and under section 59 of the [1979 c. 55.] Justices of the Peace Act 1979 (grants for magistrates' courts purposes); and

(b) under section 31 of the [1964 c. 48.] Police 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 of 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.

(8) In this section—

• " housing subsidies " means such grants to local authorities out of money provided by Parliament for housing as may be specified by the Secretary of State as housing subsidies for the purposes of this section ; and

• " rate fund "—

  (a)

  in relation to the Greater London Council and the Inner London Education Authority, means any account or fund for which a precept is issued;

  (b)

  in relation to the Common Council of the City of London and the Council of the Isles of Stilly, means the general rate; and

  (c)

  in relation to any other local authority, means the county fund or general rate fund.

55 The domestic rate relief grant

(1) The aggregate amount of the domestic rate relief grant shall be determined by the Secretary of State.

(2) The amount of domestic rate relief grant payable to a local authority for any year shall be calculated in accordance with Schedule 9 to this Act.

(3) No payment in respect of domestic rate relief grant shall be made—

(a) to a county council;

(b) to the Greater London Council; or

(c) to the Inner London Education Authority.

(4) Any amounts payable to a local authority in respect of domestic rate relief grant shall be taken into account for the purposes of this and any other Act as if they were payable on account of rates.

56 The block grant

(1) The amount of block grant for a year is the balance left after deducting the amount of domestic rate relief grant from the aggregate amount of the rate support grants.

(2) If—

(a) the council of a county, the Greater London Council or the Inner London Education Authority give notice to the Secretary of State that they do not wish to be paid block grant for any year ; and

(b) he gives them notice that he consents to it not being paid to them,

no amount shall be payable to them by way of that grant for that year.

(3) Any amount that would have been payable to them shall be distributed among the appropriate authorities as part of their block grant for the year.

(4) In subsection (3) above "the appropriate authorities" means—

(a) in relation to the council of a county, the councils of districts in the county;

(b) in relation to the Greater London Council, the London borough councils and the Common Council of the City of London; and

(c) in relation to the Inner London Education Authority, those of the councils mentioned in paragraph (b) above whose areas are in the Inner London Education Area.

(5) The amount to be paid to an authority under subsection (3) above shall bear the same proportion to the amount that would have been payable to the county council or the Greater London Council or the Inner London Education Authority as the gross rateable value of the authority's area bears to the gross rateable value of the county, Greater London or the Inner London Education Area, as the case may be.

(6) Subject to subsection (7) below, the amount of block grant payable to a local authority is to be calculated by deducting from the total expenditure to be incurred by them during the year the product arrived at by multiplying their grant-related poundage by the gross rateable value of their area.

(7) The amount of block grant payable to a local authority, other than any amount payable under subsection (3) above, may not exceed the total expenditure to be incurred by them during the year.

(8) In this Part of this Act—

• " grant-related expenditure ", in relation to each authority to whom block grant is payable for any year, means the aggregate for the year of their notional expenditure having regard to their functions ;

• " grant-related poundage ", in relation to each such authority, means subject to paragraph 6 of Schedule 11 below, a poundage related—

  (a)

  to a given ratio between their total expenditure and their grant-related expenditure; or

  (b)

  to a given difference between their total expenditure divided by their population and their grant-related expenditure so divided ;

• " gross rateable value ", in relation to each such authority, means the aggregate of the rateable values of the hereditaments in their area ;

• " rateable values", in relation to hereditaments, means subject to subsection (14) below, rateable values ascribed to them in the valuation lists on a date to be specified for each year in the Rate Support Grant Report;

• "total expenditure", in relation to each such authority, means the expenditure which is relevant expenditure within the meaning of subsection (5) of section 54 above reduced by the amount of any grant to them mentioned in subsection (2) of that section and adjusted by the addition or subtraction of such descriptions of expenditure or receipts as the Secretary of State may direct, and

• " valuation list" has the meaning assigned to it by section 115 of the [1967 c. 9.] General Rate Act 1967.

(9) The Secretary of State may—

(a) defray any expenditure incurred in any year in the provision of services for local authorities by any body specified in regulations made by the Secretary of State; and

(b) deduct from the aggregate amount of the block grant for that year, such amount, not exceeding the total of the expenditure so defrayed, as appears to him to be appropriate;

and any regulations made under section 2(7) of the [1974 c. 7.] Local Government Act 1974 shall have effect for the purposes of this subsection as if they had been made under it.

(10) Before giving a direction under subsection (8) above or exercising his powers under subsection (9) above, the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.

(11) Any such direction shall be given in accordance with principles to be applied to all local authorities.

(12) Regulations under subsection (9) above shall be made by statutory instrument, and a statutory instrument containing such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(13) The reference to hereditaments in subsection (8) above includes a reference to a notional hereditament which a body is treated as occupying by virtue of any enactment.

(14) A Rate Support Grant Report may provide that for the year to which it relates the rateable value of hereditaments falling within any class of hereditaments shall be ascertained for the purposes of this Part of this Act otherwise than by reference to the values ascribed to them in the valuation list.

57 Determination of grant-related poundage and grant-related expenditure

(1) A local authority's grant-related poundage and grant-related expenditure shall be determined by the Secretary of State in accordance with principles to be applied to all local authorities.

(2) Subject to subsection (3) below, the principles on which the grant-related poundage and the grant-related expenditure are determined shall be specified in the Rate Support Grant Report.

(3) The principles set out in section 58 need not be specified in the Rate Support Grant Report.

58 Principles for determination of grant-related poundage

(1) The principles set out in subsections (2) and (3) below shall apply to all authorities belonging to the appropriate class.

(2) Where an authority's total expenditure is at a level equal to or less than their grant-related expenditure, a given decrease in their total expenditure must produce the same decrease in their grant-related poundage as would be produced by the same decrease in their total expenditure if it were at any other level which is less than their grant-related expenditure.

(3) Where an authority's total expenditure is at a level equal to or more than their grant-related expenditure, a given increase in their total expenditure must produce an increase in their grant-related poundage not less than the increase that would be produced by the same increase in their total expenditure if it were at any lower level.

(4) References in this section to an increase or decrease in grant-related poundage are references to an increase or decrease in absolute terms.

(5) References in this section to an increase or decrease in an authority's total expenditure may be construed either as references to an increase or decrease in absolute terms in their expenditure per head of the population of their area or as references to an increase or decrease in the ratio between their total expenditure and their grant-related expenditure; but such references shall be construed in the same way in relation to all authorities.

59 Adjustments of distribution of block grant

(1) Subject to the following provisions of this section, the Secretary of State may provide in a Rate Support Grant Report that the amount of block grant payable to a local authority for a year shall be calculated by deducting from their total expenditure, instead of the product of their grant-related poundage and the gross rateable value of their area, the product of those sums multiplied by a multiplier determined by the Secretary of State.

(2) Except as provided in subsection (3) below, the power conferred by subsection (1) above may only be exercised for the purpose of increasing the amount of block grant payable to a local authority.

(3) The power may be exercised for the purpose of decreasing the amount of block grant payable to a local authority if the Secretary of State is satisfied that there will be an unreasonable increase, unless he exercises the power, in the amount of block grant payable to the authority for a year, compared with the amount payable to them for the previous year.

(4) The power conferred by subsection (1) above may be exercised so as to determine different multipliers for different authorities.

(5) Except as provided by subsection (7) below, the power—

(a) may only be exercised—

(i) in accordance with principles to be applied to all local authorities; or

(ii) in accordance with principles to be applied to all local authorities belonging to the appropriate class; and

(b) may only be exercised for any such purpose as is specified in paragraphs (a) to (d) of subsection (6) below.

(6) The purposes mentioned in subsection (5) above are—

(a) limiting the change in the amount of block grant payable to an authority for the year from the amount payable in the previous year ;

(b) taking account of less than the gross rateable value of an authority or group of authorities in calculating the amount of block grant payable;

(c) reducing, whether in whole or in part, disparities in the rates levied in different rating areas of Greater London other than the Temples ; and

(d) any such other purpose as the Secretary of State may determine.

(7) The power may also be exercised in accordance with principles to be applied to the councils of counties to whose police expenses section 57 of the [1964 c. 48.] Police Act 1964 applies (counties falling partly within the Metropolitan Police District).

(8) If the Secretary of State exercises that power, the principles on which he exercises it shall be specified in the Rate Support Grant Report.

(9) In this Part of this Act "the appropriate class ", in relation to a local authority, means the class specified in subsection (10) below to which that authority belongs.

(10) Subject to subsection (11) below, any local authority of a description specified in any of the paragraphs of section 53(5) above belongs to a class consisting of all the authorities of that description.

(11) Section 53(5) above shall be treated for the purposes of this section—

(a) as if paragraph (a) referred to two classes, namely—

(i) councils of metropolitan counties; and

(ii) councils of non-metropolitan counties;

(b) as if paragraph (d) referred to two classes, namely—

(i) councils of metropolitan districts ; and

(ii) councils of non-metropolitan districts; and

(c) as if paragraph (e) were omitted.

(12) In their application to block grant payable to a local authority for the commencing year subsections (3) and (6) (a) above shall have effect as if references to an amount determined by the Secretary of State were substituted for the references to the amount of block grant payable to the authority for the previous year.

60 The Rate Support Grant Report

(1) In this section and section 61 below "the relevant grants " means rate support grants payable under this Part of this Act and grant payable under section 6 or 7 of the [1974 c. 7.] Local Government Act 1974 (supplementary grants for transport and National Parks).

(2) Subject to subsection (3) below, the Secretary of State shall make for each year a report (in this Part of this Act called a "Rate Support Grant Report") relating to the relevant grants.

(3) In so far as a Rate Support Grant Report relates to payments of grants under section 6 of the Local Government Act 1974 it shall be made for England by the Minister of Transport.

(4) A Rate Support Grant Report shall be made with the consent of the Treasury.

(5) Before making a Rate Support Grant Report the Secretary of State and the Minister of Transport shall consult such associations of local authorities as appear to them to be concerned and any local authority with whom consultation appears to them to be desirable.

(6) A Rate Support Grant Report shall specify

(a) all the determinations relating to the relevant grants which are required by any provision of this Part of this Act; and

(b) the considerations leading the Secretary of State to make any such determination.

(7) A Rate Support Grant Report shall be laid before the House of Commons.

(8) No payment of any of the relevant grants for the year shall be made until the Rate Support Grant Report is approved by a resolution of the House of Commons and (subject to section 61 below) any payment may be made only in accordance with the Rate Support Grant Report as so approved.

(9) The Secretary of State shall send a copy of every Rate Support Grant Report to each local authority as soon as practicable after it has been approved.

61 Supplementary reports

(1) Subject to subsection (2) below, after a Rate Support Grant Report has been made for any year the Secretary of State may, at such time or times as he thinks fit, make one or more supplementary reports for that year.

(2) Section 60(3) to (5), (7) and (9) above shall apply to a supplementary report as they apply to a Rate Support Grant Report.

(3) Subject to subsections (4) and (5) below, a supplementary report may specify fresh determinations in place of all or any of those specified by the Rate Support Grant Report.

(4) The Secretary of State may not in a supplementary report vary the aggregate amount of domestic rate relief grant determined by him for any year in the Rate Support Grant Report for that year.

(5) The power conferred by subsection (3) above shall be exercisable only in accordance with principles applicable to all local authorities and specified in the supplementary report.

(6) In addition to specifying any fresh determinations a supplementary report shall specify the considerations leading to them.

(7) If a supplementary report is approved by a resolution of the House of Commons, any payment of any of the relevant grants for the year may be made only in accordance with the Rate Support Grant Report for the year (as so approved), as varied by the supplementary report for the year (as so approved).

62 Adjustment of block grant total

(1) For the purpose of ensuring that the total amount paid in respect of block grant in any year is the same as the aggregate amount available for that grant in that year, the Secretary of State may adjust (whether by increasing or decreasing it) the amount payable to each local authority.

(2) The Secretary of State shall so carry out the adjustment mentioned in subsection (1) above that the amount payable to an authority is adjusted in the same ratio as the aggregate amounts to which all authorities are entitled bear to the aggregate amount available for grant.

(3) The Secretary of State may, for the purpose of the adjustment required by this section, make a fresh calculation of the entitlement of each local authority to block grant, substituting the total expenditure actually incurred by that authority during the year for the figure calculated as the authority's total expenditure under section 56 above.

63 Adjustment of block grant in connection with education etc.

Block grant shall be subject to the adjustments arising out of expenditure by local authorities on education and for connected purposes specified in Schedule 10 to this Act.

64 Special provision for Metropolitan Police District

Schedule 11 to this Act shall have effect in relation to block grant payable—

(a) to the council of a London borough; or

(b) to the council of a district whose area is wholly or partly within the Metropolitan Police District.

65 Submission of information

(1) Each local authority shall submit to the Secretary of State or the Minister of Transport in respect of each year, by such date as he may specify, such information as he may from time to time require for the purposes of sections 53 to 64 above and to Schedule 11 to this Act in connection with the total expenditure to be incurred by them during the year.

(2) Where the Secretary of State or the Minister of Transport is not satisfied that the information submitted to him by a local authority under subsection (1) above accurately reflects the amount by reference to which the authority have calculated the general rate for the year to which the information relates, or the amount of any precept issued by them for that year, he may, after giving notice of his intention to the authority and affording them an opportunity to submit representations, make such adjustment of the information submitted to him under subsection (1) above as he considers appropriate.

66 Estimates and calculations

(1) The Secretary of State shall, upon the best information available to him, estimate and notify to each local authority the amounts of domestic rate relief grant and block grant which will become payable to the authority for a year; and he may make and notify to an authority such further estimates of the said amounts, taking into account information not previously available, as he may think fit.

(2) As soon as practicable after he has received what appears to him to be sufficient information for the purpose, the Secretary of State shall make a conclusive calculation of the said amounts and notify the result of that calculation to each local authority.

(3) The amounts of domestic rate relief grant and block grant payable to a local authority shall each be calculated to the nearest pound.

(4) Where it appears to the Secretary of State from any estimate or calculation made under this section that a sum in excess of the amount of the estimate or calculation has already been paid to a local authority in respect of rate support grants for the year, he may recover that sum by deduction from any amount due to that authority in respect of those grants, whether for the year or for any subsequent year, or by issuing a demand for it to the authority or partly by such deduction and partly by such a demand, as he thinks fit.

67 Changes in rateable values

(1) After the amount of the block grant payable to a local authority for any year has been conclusively calculated under this Part of this Act, the authority may by notice in writing request the Secretary of State to give a direction under this section if—

(a) the rateable value of hereditaments in the authority's area has been reduced with effect from the date on or before that which is relevant for determining the gross rateable value of the hereditaments in the authority's area for that year under this Part of this Act; and

(b) the effect of those and any other alterations of rateable values made before the date of the notice would, had they been made on the dates as from which they took effect, have been to produce a reduction in the gross rateable value of those hereditaments which is of such a magnitude that, expressed as a percentage of their gross rateable value, it exceeds such percentage as may be specified for the purposes of this section in regulations made by the Secretary of State.

(2) On the receipt of such a notice the Secretary of State shall direct that the amount of the block grant payable to the authority for that year shall be recalculated in accordance with the following provisions of this section and a further payment on account of that grant shall be made to the local authority accordingly.

(3) The power to specify a percentage for the purposes of paragraph (b) of subsection (1) above includes power to specify, in relation to second and subsequent notices given by a local authority in respect of any year, percentages higher than that specified in relation to the first notice given by the authority in respect of that year.

(4) Where subsection (1) above applies, the amount of block grant payable to the authority for the year shall be recalculated by treating the gross rateable value of the hereditaments in their area as reduced by the difference between the reduction referred to in subsection (1)(b) above and the percentage specified for the purpose of that paragraph or, where more than one percentage is so specified, the lowest of them.

(5) The further payment shall be an amount equal to the difference between the amount previously paid to the authority for the year concerned on account of block grant and the amount recalculated as specified in subsection (2) above.

(6) Any amount payable under this section shall be payable without the making of any report under this Part of this Act and notwithstanding the contents of any such report previously made in respect of the year for which the grant is payable.

(7) Before making regulations under this section the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.

(8) The power to make such regulations shall be exercisable by statutory instrument.

(9) A statutory instrument containing any such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

68 Rate support grant-supplementary

(1) In this Part of this Act "year" means a period of 12 months beginning with 1st April.

(2) In section 10(2) of the [1974 c. 7.] Local Government Act 1974 the following definition shall be substituted for the definition of " prescribed " : —

• prescribed " means prescribed by a Rate Support Grant Report made under section 60 of the Local Government, Planning and Land Act 1980 or by a supplementary report made under section 61 of that Act;.

(3) In section 6 of the [1975 c. 67.] Housing Finance (Special Provisions) Act 1975 (which among other things prevents certain sums charged to the general rate fund being taken into account in calculations of rate support grants)—

(a) in subsection (3), for the words "section 1(4) of the Local Government Act 1974 " there shall be substituted the words " section 54(5) of the Local Government, Planning and Land Act 1980 " ; and

(b) in subsection (4), for the words from " shall not be included " to the end of the subsection there shall be substituted the words " shall be disregarded ".

(4) The following subsection shall be substituted for subsection (3) of section 8 of the [1976 c. 32.] Lotteries and Amusements Act 1976 (proceeds of local lotteries): —

“(3) The payment by a local authority out of their rate fund, within the meaning of subsection (8) of section 54 of the Local Government, Planning and Land Act 1980, of money accruing from a local lottery shall not be relevant expenditure within the meaning of subsection (5) of that section.”.

(5) In section 31(7) of the [1980 c. 20.] Education Act 1980 (which relates to recoupment between education authorities in respect of the cost of further education) for the words " paragraph 3A of Schedule 2 to the Local Government Act 1974 " there shall be substituted the words " paragraph 6 of Schedule 10 to the Local Government, Planning and Land Act 1980 ".

(6) In section 117 (3) of the [1980 c. 51.] Housing Act 1980 for the words " section 1 of the Local Government Act 1974 " there shall be substituted the words " section 54 of the Local Government, Planning and Land Act 1980 ".

(7) Any power to amend regulations made under Part I of the [1974 c. 7.] Local Government Act 1974 or section 32 of the Education Act 1980 shall include power to make any such amendments in the regulations as appear to the Secretary of State to be necessary or expedient in consequence of the provisions of sections 53 to 68 above.

(8) The amendments made by subsections (2) to (6) above shall come into force on such date as the Secretary of State may by order made by statutory instrument appoint.

(9) This Part of this Act extends to England and Wales only.