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(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.
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