Greater London Authority Act 1999

Budget requirements E+W+S

85 Calculation of component and consolidated budget requirements. E+W

(1) Section 43 of the M1 Local Government Finance Act 1992 shall not apply in relation to the Authority, and the following provisions of this section and section 86 below shall have effect in relation to the Authority in place of that section.

(2) In relation to each financial year, the Authority shall make the calculations required by this section.

(3) The Authority must, in the case of each constituent body, that is to say—

(a) [F1 the Authority, and]

[F1 the Assembly,

(aa) the Mayor, and]

(b) each of the functional bodies,

calculate the aggregates required by virtue of subsections (4) and (5) below.

[F2 (3A) In subsection (3) above—

(a) the reference to the Assembly is a reference to the Authority as respects the Assembly's functions (see subsection (14)),

(b) the reference to the Mayor is a reference to the Authority except as respects the Assembly's functions,

and other references in this Chapter to the Mayor or the Assembly, in their capacity as constituent bodies for the purposes of the budgetary provisions, or to their functions (in that capacity), are to be construed accordingly.]

(4) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

(a) the expenditure the Authority estimates [F3 the body will incur] [F3 will be incurred by the body ] in the year in performing its functions and [F4 will charge] [F4 will be charged ] to a revenue account for the year, other than expenditure which the Authority estimates will be so incurred in pursuance of regulations under section 99(3) of the 1988 Act [F5 (but, in the case of the Mayor or the Assembly, see also subsections (10) to (13)) ] ;

(b) such allowance as the Authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c) the financial reserves which the Authority estimates it will be [F6 appropriate for the body to raise] [F6 appropriate to be raised by or in respect of the body ] in the year for meeting the body’s estimated future expenditure; and

(d) such of [F7 the body’s financial reserves] [F7 the financial reserves of, or in respect of, the body ] as are sufficient to meet so much of the amount estimated by the Authority to be a [F8 revenue account deficit of the body] [F8 revenue account deficit of or in respect of the body ] for any earlier financial year as has not already been provided for.

(5) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

(a) the sums which the Authority estimates will be payable to [F9 or for ] the body for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which the Authority estimates will be so payable—

(i) in respect of redistributed non-domestic rates, revenue support grant, additional grant, relevant special grant, police grant or general GLA grant;

(ii) in respect of any precept issued by the Authority; or

(iii) in pursuance of regulations under section 99(3) of the M2 Local Government Finance Act 1988; and

(b) the amount of the body’s financial reserves which the Authority estimates [F10 that the body will use] [F10 will be used by or in respect of the body ] in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (4) above.

(6) If, in the case of any constituent body, the aggregate calculated under subsection (4) above exceeds that calculated under subsection (5) above—

(a) the Authority must calculate the amount equal to the difference; and

(b) the amount so calculated shall be the body’s component budget requirement for the year.

(7) If, in the case of any constituent body, the aggregate calculated under subsection (4) above does not exceed that calculated under subsection (5) above, the body’s component budget requirement for the year shall be nil.

(8) The Authority must also calculate the aggregate of the component budget requirements of each of the constituent bodies and that aggregate shall be the Authority’s consolidated budget requirement for the year.

[F11 (9) In this section, any reference to expenditure incurred by a body in any financial year includes the following (whether or not giving rise to actual payments)—

(a) any amount which does not form part of the body’s capital receipts for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance) and which is [F12 set aside for the year by the body] [F12 set aside by or in respect of the body ] as provision to meet credit liabilities; and

(b) any other amount which is set aside for the year [F13 by the body] [F13 by or in respect of the body ] as reasonably necessary for the purpose of providing for any liability or loss which is likely or certain to be incurred but is uncertain as to the amount or the date on which it will arise (or both).]

[F14 (10) Subsections (11) to (13) below have effect for the purposes of the budgetary provisions in their application in relation to the Mayor and the Assembly in their capacity as constituent bodies.

(11) The expenditure that is to be regarded for the purposes of subsection (4)(a) above as incurred by the Assembly in the performance of its functions includes any expenditure by the Authority in the performance of its functions which is incurred in respect of any of the following—

(a) the Assembly members,

(b) the Assembly secretariat (see subsection (14)),

(c) goods or services procured solely for the purposes of the Assembly,

(d) the London Transport Users' Committee (see section 247 and Schedule 18),

but does not include any expenditure falling within subsection (12) below.

(12) That expenditure is expenditure by the Authority in respect of any of the following—

(a) accommodation provided or procured in whole or in part for the conduct of the business of the Assembly or Assembly members,

(b) goods or services provided or procured for the Authority in general.

(13) The expenditure that is to be regarded for the purposes of subsection (4)(a) above as incurred by the Mayor in the performance of his functions is any expenditure—

(a) which is incurred by the Authority in the performance of its functions, and

(b) which does not fall to be regarded for the purposes of subsection (4)(a) above as incurred by the Assembly in the performance of its functions.

(14) In this section—

• “the Assembly secretariat” means employees of the Authority who normally work as support staff for the Assembly or Assembly members;

• “the Assembly's functions” means—

  (a)

  such of the functions of the Authority as are exercisable only by the Assembly acting on behalf of the Authority, and

  (b)

  the Assembly's function of acting jointly with the Mayor in the case of those functions of the Authority which are exercisable only by the Mayor and the Assembly acting jointly on behalf of the Authority;

• “the budgetary provisions” means sections 85 to 87 of, and Schedule 6 to, this Act.

(15) All such apportionments as may be necessary for the purpose of calculating the aggregates required by subsections (4) and (5) above in the case of the Mayor and the Assembly are to be made on a just and reasonable basis.]

Textual Amendments

F1 S. 85(3)(a)(aa) substituted (E.W.) for s. 85(3)(a) (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(2), 59(4); S.I. 2007/3107, art. 3

F2 S. 85(3A) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(3), 59(4); S.I. 2007/3107, art. 3

F3 Words in s. 85(4)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(4)(a), 59(4); S.I. 2007/3107, art. 3

F4 Words in s. 85(4)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(4)(b), 59(4); S.I. 2007/3107, art. 3

F5 Words in s. 85(4)(a) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(4)(c), 59(4); S.I. 2007/3107, art. 3

F6 Words in s. 85(4)(c) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(5), 59(4); S.I. 2007/3107, art. 3

F7 Words in s. 85(4)(d) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(6)(a), 59(4); S.I. 2007/3107, art. 3

F8 Words in s. 85(4)(d) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(6)(b), 59(4); S.I. 2007/3107, art. 3

F9 Words in s. 85(5)(a) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(7), 59(4); S.I. 2007/3107, art. 3

F10 Words in s. 85(5)(b) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(8), 59(4); S.I. 2007/3107, art. 3

F11 S. 85(9) substituted (1.4.2004) by Local Government Act 2003 (c. 26), s. 128(3)(e), Sch. 7 para. 70; S.I. 2003/2938, art. 6(d)(i) (with art. 8, Sch.)

F12 Words in s. 85(9)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(9)(a), 59(4); S.I. 2007/3107, art. 3

F13 Words in s. 85(9)(b) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(9)(b), 59(4); S.I. 2007/3107, art. 3

F14 S. 85(10)-(15) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(10), 59(4); S.I. 2007/3107, art. 3

Modifications etc. (not altering text)

C1 S. 85 modified (E.) (5.2.2000) by S.I. 2000/213, art. 6

S. 85 modified (2.2.2001 with effect as mentioned in reg. 1(3) of the amending S.I.) by S.I. 2001/216, reg. 6

C2 S. 85 modified (with application in accordance with reg. 1(3) of the amending S.I.) by The Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2006 (S.I. 2006/247), regs. 1(1), 6

C3 S. 85 modified (with application in accordance with reg. 1(2)(3) of the amending S.I.) by The Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2007 (S.I. 2007/227), regs. 1(1)(b), 7

C4 S. 85(5)(a)(i) modified (E.) (1.2.2002) by S.I. 2002/155, reg. 6

C5 S. 85(5)(a)(i) modified (E.) (with application in accordance with reg. 1(2) of the amending S.I.) by The Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2003 (S.I. 2003/195), regs. 1(1), 6

C6 S. 85(5)(a)(i) modified (E.) (with application in accordance with reg. 1(2) of the amending S.I.) by The Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2004 (S.I. 2004/243), regs. 1(1), 6

C7 S. 85(5)(a)(i) modified (E.) (with application in accordance with reg. 1(3) of the amending S.I.) by The Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2005 (S.I. 2005/190), regs. 1(1), 6

Commencement Information

I1 S. 85 wholly in force at 12.1.2000; s. 85 not in force at Royal Assent see s. 425(2); s. 85 in force at 12.1.2000 by S.I. 1999/3434, art. 2 (subject to transitional provisions in Sch. 1 Table 1)

Marginal Citations

M1 1992 c. 14.

M2 1988 c. 41.

86 Provisions supplemental to section 85. E+W+S

(1) An amount must not be brought into account under subsection (4) or (5) of section 85 above in the application of the subsection in relation to [F15 the Authority] [F15 the Mayor or the Assembly] as a constituent body if the amount (or an amount which represents it) falls to be brought into account under the same subsection in its application in relation to [F16 the other of them or] a functional body.

(2) In estimating under subsection (4)(a) of section 85 above in the case of any constituent body other than the Metropolitan Police Authority, the Authority shall take into account the amount of any levy issued to the body for the year, but (except as provided by regulations under section 74 of the M3 Local Government Finance Act 1988) shall not anticipate a levy not issued.

[F17 (2A) For the purposes of subsection (2) above, any levy issued to the Authority shall be treated as a levy issued to the Mayor.]

F18 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of subsection (4)(c) of section 85 above a body’s estimated future expenditure is—

(a) that which the Authority estimates [F19 the body will incur] [F19 will be incurred by] in the financial year following the year in question, [F20 will charge] [F20 will be charged] to a revenue account for the year and [F21 will have to defray] [F21 will have to be defrayed] in the year before the following sums are sufficiently available, namely, sums—

(i) which will be [F22 payable to it] [F22 payable to or for it] for the year; and

(ii) in respect of which amounts will be credited to a revenue account for the year; and

(b) that which the Authority estimates [F23 the body will incur] [F23 will be incurred by] in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

(5) The Secretary of State may by regulations do one or both of the following—

(a) alter the constituents of any calculation to be made under subsection (4) or (5) of section 85 above (whether by adding, deleting or amending items);

(b) alter the rules governing the making of any calculation under subsection (4) or (5) of section 85 above (whether by deleting or amending subsections (2) to (4) above, or any of them, or by adding other provisions, or by a combination of those methods).

(6) Subsection (9) of section 85 above applies for the purposes of this section as it applies for the purposes of that section.

Textual Amendments

F15 Words in s. 86(1) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(12)(a), 59(4); S.I. 2007/3107, art. 3

F16 Words in s. 86(1) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(12)(b), 59(4); S.I. 2007/3107, art. 3

F17 S. 86(2A) inserted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(13), 59(4); S.I. 2007/3107, art. 3

F18 S. 86(3) repealed (1.8.2001) by 2001 c. 16, s. 137, Sch. 7 Pt. 5(1); S.I. 2001/2223, art. 3(j)(l)(iii)

F19 Words in s. 86(4)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(14)(a), 59(4); S.I. 2007/3107, art. 3

F20 Words in s. 86(4)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(14)(b), 59(4); S.I. 2007/3107, art. 3

F21 Words in s. 86(4)(a) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(14)(c), 59(4); S.I. 2007/3107, art. 3

F22 Words in s. 86(4)(a)(i) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(14)(d), 59(4); S.I. 2007/3107, art. 3

F23 Words in s. 86(4)(b) substituted (E.W.) (with effect in accordance with s. 59(6) of the amending Act) by Greater London Authority Act 2007 (c. 24), ss. 12(14)(d), 59(4); S.I. 2007/3107, art. 3

Commencement Information

I2 S. 86 wholly in force at 12.1.2000; by virtue of s. 425(2) the Act comes into force at Royal Assent in regards to any power of a Minister of the Crown to make regulations or an order; s. 86 in force at 12.1.2000 insofar as not already in force by S.I. 1999/3434, art. 2 (subject to transitional provisions in Sch. 1 Table 1)

Marginal Citations

M3 1988 c. 41.

87 Procedure for determining the budget requirements. E+W+S

Schedule 6 to this Act (which contains procedural requirements for determining the component budget requirements and the consolidated budget requirement) shall have effect.