Local Government Finance Act 1988

Part V E+W Grants

Modifications etc. (not altering text)

C1 Part V amended (28.11.1994) by S.I. 1994/2825, reg. 34

Introduction E+W

76 Interpretation. E+W

(1) This section applies for the purposes of this Part.

(2) Each of the following is a receiving authority—

(a) a charging authority, and

(b) in the application of this Part to Wales, a county council.

(3) Each of the following is a notifiable authority (and is accordingly entitled to receive certain information and copies of certain documents as provided in this Part)—

(a) a charging authority,

(b) a county council,

(c) a metropolitan county police authority,

(d) the Northumbria Police Authority,

(e) a metropolitan county fire and civil defence authority,

(f) the London Fire and Civil Defence Authority, and

(g) the Receiver for the Metropolitan Police District.

(4) A specified body is any body which provides services for local authorities and is specified in regulations made by the Secretary of State under this subsection; but a body is not a specified body as regards a financial year unless the regulations specifying it are in force before the year begins.

(5) Before exercising the power to make regulations under subsection (4) above the Secretary of State shall consult such representatives of local government as appear to him to be appropriate.

(6) Any regulations made under section 2(7) of the M1 Local Government Act 1974 or section 56(9) of the M2 Local Government, Planning and Land Act 1980 shall have effect for the purposes of subsection (4) above as if they had been made under it.

Marginal Citations

M1 1974 c. 7.

M2 1980 c. 65.

77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 E+W

Textual Amendments

F1 S. 77 repealed by Local Government and Housing Act 1989 (c. 42, SIF 81:1), ss. 139, 194(4), Sch. 5 para. 57(1)(2), Sch. 12 Pt. II Note 4

Revenue support grant E+W

78 Revenue support grant. E+W

(1) For each chargeable financial year the Secretary of State shall pay a grant (to be called revenue support grant) to receiving authorities and specified bodies in accordance with this Part.

(2) For each chargeable financial year the Secretary of State shall make a determination under this section.

(3) A determination shall state—

(a) the amount of the grant for the year,

(b) what amount of the grant he proposes to pay to receiving authorities, and

(c) what amount of the grant he proposes to pay to each specified body.

(4) Different amounts may be stated under subsection (3)(c) above in relation to different specified bodies.

(5) Before making a determination the Secretary of State shall—

(a) consult such representatives of local government as appear to him to be appropriate, and

(b) obtain the Treasury’s consent.

(6) A determination shall be specified in a report (to be called a revenue support grant report) and the report shall be laid before the House of Commons.

(7) As soon as is reasonably practicable after the report is laid before the House of Commons the Secretary of State shall send a copy of it to each notifiable authority.

Valid from 06/03/1992

[78A F2 Local government finance reports. E+W

(1) A determination under section 78 above shall be specified in a report (to be called a local government finance report).

(2) A local government finance report shall also specify the basis (the basis of distribution) on which the Secretary of State proposes to distribute among receiving authorities the amount of revenue support grant which under this Part falls to be paid to such authorities for the financial year to which the report relates (the financial year concerned).

(3) Before making the report the Secretary of State shall notify to such representatives of local government as appear to him to be appropriate the general nature of the basis of distribution.

(4) The report shall be laid before the House of Commons.

(5) As soon as is reasonably practicable after the report is laid before the House of Commons, the Secretary of State shall send a copy of it to each receiving authority.]

Textual Amendments

F2 S. 78A inserted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.10 (with s. 118(1)(2)(4))

Modifications etc. (not altering text)

C2 s. 78A modified (12.1.2000) (temp ) by S.I. 1999/3435, art. 2

79 Effect of report’s approval. E+W

(1) This section applies where in accordance with section 78 above a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the House of Commons.

(2) If the report is approved by resolution of the House of Commons the Secretary of State shall pay the amount stated in the determination as the amount of the revenue support grant for the year.

(3) The Secretary of State shall pay to receiving authorities the amount stated in the determination under section 78(3)(b) above, and shall pay to specified bodies the aggregate of the amounts stated in the determination under section 78(3)(c) above.

(4) The amount falling to be paid to receiving authorities shall be distributed among and paid to them in accordance with sections 80 to 83 below or sections 80 to 84 below (as the case may be).

(5) The amount to be paid to a particular specified body shall be the amount stated in relation to it under section 78(3)(c) above.

(6) Where a sum falls to be paid to a specified body by way of revenue support grant it shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; and any such time may fall within or after the financial year concerned.

Modifications etc. (not altering text)

C3 S. 79(2)(3) modified by S.I. 1990/493, reg. 8(1) and by S.I. 1990/609, reg. 5(1)

80 Distribution reports. E+W

(1) The Secretary of State shall make a report containing the basis on which he proposes (subject to any report under section 84 below) to distribute among receiving authorities those amounts of revenue support grant which fall to be paid to such authorities under this Part.

(2) Before making the report the Secretary of State shall notify to such representatives of local government as appear to him to be appropriate the general nature of its intended contents.

(3) The report shall be laid before the House of Commons.

(4) As soon as is reasonably practicable after the report is laid before the House of Commons the Secretary of State shall send a copy of it to each notifiable authority.

(5) After making the report the Secretary of State may make a further report or reports, and any such report—

(a) may replace any previous report under this section, or

(b) may amend any previous report under this section.

(6) A report under subsection (5)(a) above shall contain a revised basis on which the Secretary of State proposes (subject to any report under section 84 below) to distribute the amounts mentioned in subsection (1) above.

(7) A report under subsection (5)(b) above shall contain amendments to the basis of distribution contained in the report which it amends.

(8) Subsections (2) to (4) above shall apply to any report under subsection (5) above as they apply to one under subsection (1) above.

(9) A report under this section shall state the day on which it is to come into force and the first financial year for which it is to operate.

81 Effect of distribution reports. E+W

(1) This section applies where in accordance with section 80 above a report has been made and laid before the House of Commons.

(2) If the report is approved by resolution of the House of Commons it shall come into force on the day stated in the report.

(3) If the report is made under section 80(1) or (5)(a), on and after the day it comes into force the basis it contains shall have effect as regards revenue support grant payable for all chargeable financial years beginning with the first financial year for which it states it is to operate; but this is subject to the effect of any subsequent report under section 80(5).

(4) If the report is made under section 80(5)(b), on and after the day it comes into force the basis it amends read subject to the amendments shall have effect as regards revenue support grant payable for all chargeable financial years beginning with the first financial year for which it states it is to operate; but this is subject to the effect of any subsequent report under section 80(5).

82 Calculation of sums payable. E+W

(1) As soon as is reasonably practicable after a revenue support grant report for a financial year has been approved by resolution of the House of Commons, the Secretary of State shall calculate what sum falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution for the time being effective (as regards grant payable for the year) under section 81 above.

(2) At any time after making a calculation under subsection (1) above the Secretary of State may make one further calculation of what sum falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution for the time being effective (as regards grant payable for the year) under section 81 above.

(3) If the Secretary of State decides that he will leave out of account information received by him after a particular date in making a calculation under subsection (1) or (2) above the calculation shall be made accordingly [F3 ; and he may decide different dates for different kinds of information.]

(4) Subsection (3) above applies only if the Secretary of State informs each notifiable authority in writing of his decision and of the date [F4 (or the dates and kinds of information)] concerned; but he may do this at any time before the calculation is made under this section (whether before or after a determination is made for the year under section 78 above).

(5) As soon as is reasonably practicable after making a calculation under subsection (1) or (2) above the Secretary of State shall—

(a) inform each receiving authority of the sum he calculates falls to be paid to it by way of revenue support grant for the year, and

(b) inform each authority falling within section 76(3)(b) to (g) above of the sum he calculates falls to be paid by way of revenue support grant for the year to any receiving authority to which it has power to issue a precept.

(6) Subsection (5)(b) above shall not have effect in the application of this Part to Wales.

Textual Amendments

F3 Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 58(2)

F4 Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 58(3)

83 Payment of sums. E+W

(1) Where a calculation is made under section 82(1) above the Secretary of State shall pay to each receiving authority any sum calculated as falling to be paid to it.

(2) The sum shall be paid in instalments of such amounts, and at such times in the financial year concerned, as the Secretary of State determines with the Treasury’s consent.

(3) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority exceeds that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, the Secretary of State shall pay to the authority a sum equal to the difference.

(4) The sum shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the financial year concerned.

(5) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority is less than that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, a sum equal to the difference shall be paid by the authority to the Secretary of State on such day after the end of the financial year concerned as he may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction.

Modifications etc. (not altering text)

C4 S. 83 modified by S.I. 1990/493, reg. 8(1) and by S.I. 1990/609, reg. 5(1)

S. 83(1)-(5) modified (1.4.1993) by S.I. 1992/2996, reg. 4(1)

C5 S. 83 restricted (1.4.1993) by S.I. 1993/613, reg. 5(1)

S. 83 modified (12.1.2000) (temp) by S.I. 1999/3435, art. 2

84 Special provision for transitional years. E+W

(1) The Secretary of State may lay before the House of Commons a report containing provision about—

(a) the calculation under section 82(1) above for a transitional year, and

(b) any calculation under section 82(2) above for such a year;

and the following provisions of this section shall apply to the report (if any).

(2) The report shall provide that the basis of distribution in accordance with which such a calculation is to be made shall be the basis which would have applied (apart from the report) but read subject to adjustments set out in the report.

(3) The report—

(a) must be laid before the beginning of the first transitional year;

[F5 (b) may contain provision for one transitional year, or for more than one, as the Secretary of State thinks fit;

(c) may make different provision for different authorities;

(d) if it contains provision for more than one transitional year, may make different provision for the different years.]

(4) As soon as is reasonably practicable after the report is laid before the House of Commons the Secretary of State shall send a copy of it to each notifiable authority.

(5) If the report has been laid in accordance with this section, and is approved by resolution of the House of Commons, subsection (6) below shall have effect as regards a transitional year [F6 for which the report contains provision].

(6) The basis of distribution in accordance with which—

(a) the calculation under section 82(1) above, and

(b) any calculation under section 82(2) above, is to be made for the year shall be the basis which would have applied (apart from the report) but read subject to adjustments set out for the year in the report.

(7) Subject to subsection (6) above, the provisions of this Act relating to any such calculation shall apply as they apply to a calculation made, or falling to be made, in accordance with an unadjusted basis.

(8) In deciding whether to lay a report, and in deciding its contents, the Secretary of State may make such assumptions and estimates as he sees fit as to income, expenditure, balances and other matters (financial or otherwise) in relation to receiving authorities and other bodies, whether as regards any transitional year or otherwise.

Textual Amendments

F5 S. 84(3) paras. (b)(c)(d) substituted for paras. (b)(c) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 59(2)

F6 Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 59(3)

Valid from 06/03/1992

[F7 Revenue support grant: amending reports E+W

Textual Amendments

F7 Ss. 84A-84C and cross heading inserted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.15 (with s. 118(1)(2)(4))

F8 84A Amending reports. E+W

(1) Subject to subsection (6) below, after a local government finance report has been made the Secretary of State may, at any time before the end of the financial year following the financial year concerned, make in relation to the report one or more amending reports under this section.

(2) An amending report under this section shall contain amendments to the basis of distribution specified in the local government finance report.

(3) Before making the report the Secretary of State shall notify to such representatives of local government as appear to him to be appropriate the general nature of the amendments which he proposes to make.

(4) The report shall be laid before the House of Commons.

(5) As soon as is reasonably practicable after the report is laid before the House of Commons, the Secretary of State shall send a copy of it to each receiving authority.

(6) Where an amending report under this section has been approved by resolution of the House of Commons, the Secretary of State may not make a subsequent amending report under this section in relation to the same local government finance report.

Textual Amendments

F8 Ss. 84A-84C inserted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.15 (with s. 118(1)(2)(4))

F9 84B Calculation of sums payable under amending reports. E+W

(1) As soon as is reasonably practicable after an amending report made under section 84A above has been approved by resolution of the House of Commons, the Secretary of State shall calculate what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the financial year concerned in accordance with the basis of distribution specified in the local government finance report as amended by the amending report.

(2) Subject to subsection (3) below, after making a calculation under subsection (1) above the Secretary of State may make one further calculation of what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with that basis of distribution.

(3) A calculation may not be made under subsection (2) above after whichever is the later of—

(a) the end of the financial year following the financial year concerned, and

(b) the end of the period of 3 months beginning with the day on which the amending report is approved by resolution of the House of Commons.

(4) Subsections (4) to (7) of section 82 above apply in relation to calculations made under subsections (1) and (2) above as they apply in relation to calculations made under subsections (1) and (2) of that section.

Textual Amendments

F9 Ss. 84A-84C inserted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.15 (with s. 118(1)(2)(4))

F10 84C Payment of sums under amending reports. E+W

(1) This section applies where a calculation (the relevant calculation) is made under section 84B(1) or (2) above in relation to an amending report.

(2) Where the sum shown by the relevant calculation as falling to be paid to a receiving authority for the financial year concerned exceeds that shown as falling to be paid to it by the relevant previous calculation, the Secretary of State shall pay to the authority a sum equal to the difference.

(3) The sum shall be paid at such times, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the financial year in which the amending report was made.

(4) Where the sum shown by the relevant calculation as falling to be paid to a receiving authority for the financial year concerned is less than that shown as falling to be paid to it by the relevant previous calculation, a sum equal to the difference shall be paid by the authority to the Secretary of State.

(5) The sum shall be paid on such day after the end of the financial year in which the amending report was made as the Secretary of State may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction.

(6) In this section “the relevant previous calculation” means—

(a) in relation to a calculation made under section 84B(1) above, the calculation under section 82(1) above or, where a further calculation has been made under section 82(2) above, that further calculation;

(b) in relation to a calculation made under section 84B(2) above, the calculation made under section 84B(1) above.]

Textual Amendments

F10 Ss. 84A-84C inserted (6.3.1992) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.15 (with s. 118(1)(2)(4))

Modifications etc. (not altering text)

C6 S. 84C modified (1.4.1993) by S.I. 1992/2996, reg. 4(1)

S. 84C restricted (1.4.1993) by S.I. 1993/613, reg. 5(1)

Additional grant E+W

85 Additional grant. E+W

(1) This section applies where a revenue support grant report for a chargeable financial year has been approved by the House of Commons, and before the year ends the Secretary of State forms the view that fresh circumstances affecting the finances of local authorities have arisen since the approval.

(2) For the year concerned the Secretary of State may pay a grant (to be called additional grant) to receiving authorities in accordance with this Part.

(3) Where the Secretary of State proposes to pay additional grant for a financial year he shall make a determination under this section.

(4) A determination shall state—

(a) the amount of the grant for the year, and

(b) the basis on which he proposes to distribute it among receiving authorities.

(5) Before making a determination the Secretary of State shall obtain the Treasury’s consent.

(6) A determination shall be specified in a report and the report shall be laid before the House of Commons.

(7) As soon as is reasonably practicable after the report is laid before the House of Commons the Secretary of State shall send a copy of it to each notifiable authority.

86 Effect of report’s approval. E+W

(1) This section applies where in accordance with section 85 above a determination as regards additional grant has been made for a financial year and specified in a report which has been laid before the House of Commons.

(2) If the report is approved by resolution of the House of Commons—

(a) the Secretary of State shall pay the amount stated in the determination as the amount of the additional grant for the year, and

(b) the amount shall be distributed on the basis stated in the determination.

(3) Where a sum falls to be paid to a receiving authority by way of additional grant it shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; and any such time may fall within or after the financial year concerned.

(4) The Secretary of State may direct a receiving authority to which he pays any sum by way of additional grant to pay all or such part of the sum as he may specify to such relevant precepting authority or authorities as he may specify.

(5) For the purposes of subsection (4) above an authority is a relevant precepting authority in relation to a receiving authority if it has power to issue a precept to the receiving authority.

(6) Subsections (4) and (5) above shall not have effect in the application of this Part to Wales.

Modifications etc. (not altering text)

C7 S. 86(2)(3) modified by S.I. 1990/493, reg. 8(1) and by S.I. 1990/609, reg. 5(1)

Transport grants E+W

87 Transport grants. E+W

(1) The Secretary of State shall pay to a defined council a grant for a chargeable financial year if he accepts that at least some of its estimated relevant transport expenditure for the year is appropriate to be taken into account for the purposes of this section.

(2) The amount of the grant shall be a proportion of so much of the council’s estimated relevant transport expenditure for the year as he accepts under subsection (1) above.

(3) The proportion shall be such as is determined for the year by the Secretary of State and shall be the same as regards each council to which a grant is paid for the year under this section.

(4) A grant under this section shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State thinks fit; and any such time need not fall within the financial year concerned.

(5) In deciding whether to accept any of a council’s estimated relevant transport expenditure for a financial year under subsection (1) above, and how much of it to accept, the Secretary of State may have regard to the following matters (in addition to any other matters he thinks fit)—

(a) whether the council’s relevant transport expenditure for any preceding financial year or years is greater or smaller than its estimated relevant transport expenditure for that year or those years;

(b) the extent (if any) to which it is greater or smaller.

(6) The total accepted under subsection (1) above as regards all defined councils for a particular financial year shall not exceed such amount as is approved by the Treasury for the year.

Modifications etc. (not altering text)

C8 S. 87(5)(a) amended (28.11.1994) by S.I. 1994/2825, reg. 35

88 Transport grants: supplementary. E+W

(1) This section applies for the purposes of section 87 above.

(2) Each of the following is a defined council—

(a) a county council,

(b) a metropolitan district council,

(c) a London borough council, and

(d) the Common Council.

(3) A council’s relevant transport expenditure for a financial year is the expenditure it calculates it incurred in the year in connection with—

(a) highways or the regulation of traffic (where the council is English), or

(b) highways, the regulation of traffic or public transport (where the council is Welsh).

(4) But in making the calculation expenditure shall be left out of account unless, at the time the calculation is made, it is [F11 expenditure for capital purposes within the meaning of Pt. IV of the Local Government and Housing Act 1989].

(5) A council’s estimated relevant transport expenditure for a financial year is the expenditure it estimates it will incur in the year in connection with—

(a) highways or the regulation of traffic (where the council is English), or

(b) highways, the regulation of traffic or public transport (where the council is Welsh).

(6) But in making the estimate expenditure shall be left out of account unless, at the time the estimate is made, it is [F11 expenditure for capital purposes within the meaning of Pt. IV of the Local Government and Housing Act 1989].

Textual Amendments

F11 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 60

[F12 Community charge grants] E+W

Textual Amendments

F12 S. 88A inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 61

88A Community charge grants. E+W

(1) If regulations under section 13A above have effect as regards a chargeable financial year the Secretary of State may, with the consent of the Treasury, pay a grant to a charging authority as regards that financial year.

(2) The amount of the grant shall be such as the Secretary of State may with the consent of the Treasury determine.

(3) A grant under this section shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State may with the consent of the Treasury determine.

(4) In making any payment of grant under this section the Secretary of State may impose such conditions as he may with the consent of the Treasury determine; and the conditions may relate to the repayment in specified circumstances of all or part of the amount paid, or otherwise.

(5) In deciding whether to pay a grant under this section, and in determining the amount of any such grant, the Secretary of State shall have regard to his estimate of the aggregate of—

(a) any amount which, in consequence of the regulations, the authority might reasonably be expected to lose, or to have lost, by way of payments in respect of community charges as they have effect for the financial year concerned, and

(b) any administrative expenses the authority might reasonably be expected to incur, or to have incurred, in giving effect to the regulations in their application to the financial year concerned.

Valid from 06/03/1992

[F13 88B Special grants. E+W

(1) The Secretary of State may, with the consent of the Treasury, pay a grant (in this section referred to as a special grant) in accordance with this section to a relevant authority.

(2) Where the Secretary of State proposes to make one special grant he shall, before making the grant, make a determination stating with respect to the grant—

(a) to which authority it is to be paid,

(b) the purpose for which it is to be paid, and

(c) the amount of the grant or the manner in which the amount is to be calculated.

(3) Where the Secretary of State proposes to make two or more special grants to different authorities he shall, before making the grants, make a determination stating with respect to the grants—

(a) to which authorities they are to be paid,

(b) the purpose for which they are to be paid, and

(c) either—

(i) the amount of the grant which he proposes to pay to each authority or the manner in which the amount is to be calculated, or

(ii) the total amount which he proposes to distribute among the authorities by way of special grants and the basis on which he proposes to distribute that amount.

(4) A determination under subsection (2) or (3) above shall be made with the consent of the Treasury and shall be specified in a report (to be called a special grant report) which shall contain such explanation as the Secretary of State considers desirable of the main features of the determination.

(5) A special grant report shall be laid before the House of Commons and, as soon as is reasonably practicable after the report has been so laid, the Secretary of State shall send a copy of it to any relevant authority to whom a special grant is proposed to be paid in accordance with the determination in the report.

(6) No special grant shall be paid unless the special grant report containing the determination relating to the grant has been approved by a resolution of the House of Commons.

(7) A special grant report may specify conditions which the Secretary of State, with the consent of the Treasury, intends to impose on the payment of (or of any instalment of) any special grant to which the report relates; and the conditions may—

(a) require the provision of returns or other information before a payment is made to the relevant authority concerned, or

(b) relate to the use of the amount paid, or to the repayment in specified circumstances of all or part of the amount paid, or otherwise.

(8) Without prejudice to compliance with any conditions imposed as mentioned in subsection (7) above, a special grant shall be paid at such time or in instalments of such amounts and at such times as the Secretary of State may, with the consent of the Treasury, determine.

(9) For the purposes of this section each of the following is a relevant authority—

(a) a receiving authority;

(b) a metropolitan county passenger transport authority established by section 28 of the M3 Local Government Act 1985.]

Textual Amendments

F13 Ss. 88A, 88B substituted (6.3.1992) for s. 88A (which was inserted by 1989 c. 42, s. 139, Sch. 5 para. 61) by 1992 c. 14, s. 104, Sch. 10 Pt. II para.18 (with s. 118(1)(2)(4))

Marginal Citations

M3 1985 c. 51.