11.—(1) If the amount of any levy issued under these Regulations or, as the case may be, of any instalment of such a levy is not paid by the due date for payment, the council concerned shall be liable to pay to the levying body interest calculated in accordance with paragrah (2) below on the unpaid amount from that day until the date when payment is made.
(2) Interest payable under paragraph (1) shall be simple interest calculated from day to day on the unpaid amount from the due date for payment until the date when payment is made at a rate equivalent to 2 per cent. above the highest base rate quoted from time to time by any of the reference banks.
(3) For the purposes of paragraph (2) above—
(a)the reference banks are the seven largest institutions—
(i)authorised by the Bank of England under the Banking Act 1987(1); and
(ii)incorporated in and carrying on a deposit-taking business within the United Kingdom;
which quote a base rate in sterling;
(b)the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the period for which interest is payable begins.
(4) In this regulation—
“consolidated gross assets” of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985)(2); and
“a deposit taking business” has the meaning given in section 6 of the Banking Act 1987 but subject to any order under section 7 of that Act.
1985 c. 6; section 736 was substituted by section 144(1) of the Companies Act 1989 (c. 40).