After section 94 of the 1992 Act insert—

“94A Transitional provisions.

(1)

The Secretary of State may, after consulting such associations of local authorities as appear to him to be appropriate, specify in a report, as regards the financial year 1996-97 and any local authority, the amount which in his opinion should be used as the basis of comparison for the purposes of paragraph 1(1) of Schedule 7 to this Act.

(2)

A report under this section—

(a)

shall contain such explanation as the Secretary of State considers desirable of the calculation by him of the amount mentioned in subsection (1) above; and

(b)

shall be laid before the House of Commons.

(3)

A report under this section may relate to two or more authorities and may be amended by a subsequent report under this section.

(4)

If a report under this section is approved by resolution of the House of Commons, paragraph 1(1) of Schedule 7 to this Act shall have effect, as regards the financial year 1996-97 and any authority to which the report relates, as if the amount mentioned in subsection (1) above were the basis of comparison there referred to.

(5)

This section shall not apply in relation to Orkney Islands, Shetland Islands and Western Isles.”.