Local Government Finance Act 1987 (repealed)

3 Meaning of local authorities’ expenditure. E+W

(1) For the purposes of Part VI of the 1980 Act relevant expenditure of a local authority in relation to any future year is the aggregate of the debit items of account for the year—

(a) reduced by the aggregate of the credit items of account for the year, and

(b) adjusted by making such additions or subtractions (or both) as are specified in respect of the year concerned by the Secretary of State.

(2) For the purposes of subsection (1) above the debit items of account for a year are the items of account (whether of expenditure or otherwise but excluding excepted items) debited to the authority’s rate fund revenue account for the year.

(3) For the purposes of subsection (1) above the credit items of account for a year are the items of account (whether of income or otherwise but excluding excepted items) credited to the authority’s rate fund revenue account for the year.

(4) For the purposes of subsection (2) above the following are excepted items—

(a) items of account representing sums falling to be paid to another local authority, or the Receiver, by virtue of a precept or other instrument, and

(b) items of account representing expenditure under section 1(1) of the M1 Education Act 1962 (awards for university and comparable courses).

(5) For the purposes of subsection (3) above the following are excepted items—

(a) items of account representing relevant grants to the authority, and

(b) items of account representing rate support grants to the authority.

(6) Subsection (1) above shall have effect subject to any enactment (whenever passed) having the effect that anything is, or is not, to be treated for the purposes of Part VI of the 1980 Act as relevant expenditure of a local authority in relation to the year concerned.

(7) For the purposes of Part VI of the 1980 Act the total expenditure of a local authority in relation to any future year is the expenditure which is for those purposes the authority’s relevant expenditure in relation to the year—

(a) reduced by the amount of any item of account which is credited to the authority’s rate fund revenue account for the year and represents a relevant grant to the authority, and

(b) adjusted by making such additions or subtractions (or both) as are specified in respect of the year concerned by the Secretary of State.

(8) The Secretary of State may specify in respect of the year concerned the manner in which, and the factors by reference to which, the amount of any addition or subtraction specified under subsection (1) or (7) above shall be calculated; and an addition or subtraction specified under subsection (1) or (7) above may or may not represent an item of account debited or credited to the authority’s rate fund revenue account for the year.

(9) In relation to any future year subsections (7) and (8) above shall have effect instead of the definition of “total expenditure” in section 56(8) of the 1980 Act.

(10) For the purposes of subsections (5) and (7) above relevant grants are grants mentioned in section 54(2)(a), (b) or (c) of the 1980 Act other than those mentioned in sub-paragraph (i), (ii) or (iii) of section 54(2)(a).

Modifications etc. (not altering text)

C1 Ss. 1–3 amended by Rate Support Grants Act 1988 (c. 51, SIF 81:1), ss. 1(10), 3(11)

Marginal Citations

M1 1962 c. 12.