Part I Selective Limitation of Rates and Precepts

5 Interim maximum.

(1)

If in the case of any designated authority no maximum has been prescribed under section 1 above before the relevant date, the Secretary of State may prescribe an interim maximum under this section by a direction in writing served on the authority.

(2)

For the purposes of subsection (1) above the relevant date in relation to a maximum under section 1 above for any financial year is—

(a)

in the case of a rate, 1st March; or

(b)

in the case of a precept, 15th February,

in the preceding financial year.

(3)

An interim maximum shall have effect until replaced by a maximum prescribed under section 1 above (a “final maximum”); and where an interim maximum is prescribed in the case of any authority the Secretary of State shall as soon as reasonably practicable replace it with a final maximum.

(4)

If an authority makes a rate or issues a precept by reference to an interim maximum and the final maximum is higher—

(a)

a substituted rate or precept complying with the final maximum may be made or issued by the authority under section 3 of the M1Local Government Finance Act 1982 without regard to subsection (2) of that section (which limits the estimated product of a substituted rate or precept by reference to the estimated product of the rate or precept for which it is substituted); and

(b)

that subsection shall not prevent a substituted rate being made by any other authority in pursuance of subsection (4)(a) of that section for giving effect to a precept substituted in accordance with paragraph (a) above.

(5)

Section 1(4) . . . F1above shall apply to an interim maximum as they apply to a final maximum.