The Local Government Changes for England (Collection Fund Surpluses and Deficits) Regulations 1995

Relevant billing authority— estimated amount

4.—(1) This regulation applies in relation to an estimate where the relevant billing authority is an abolished or relinquishing authority and where this regulation applies sections 97(3) and (4) of the 1988 Act shall not apply to the relevant billing authority.

(2) For the purposes of this regulation and regulation 5, the “billing authority’s estimated share”means that part of the estimate which in accordance with the Funds Regulations is to be its share in the surplus, or its part of the deficit, calculated by the relevant billing authority using the formula in paragraph 6(2) of Part II of Schedule 2 to the Funds Regulations.

(3) The relevant billing authority shall, within 7 days of the date on which it makes an estimate, calculate in relation to, and notify to, each transferee authority, its estimated amount, and, where it is a relinquishing authority, shall calculate its own estimated amount and for this purpose the estimated amount —

(a) of a transferee authority, where the relevant billing authority is an abolished authority in respect of which there is a single successor authority, shall be the billing authority’s estimated share, and

(b) of any other transferee authority, or of a relinquishing authority, shall be a proportion of the billing authority’s estimated share, and for the purpose of the calculation of the proportion paragraph (4) below shall apply.

(4) In order to calculate the proportion referred to in paragraph (3)(b) above—

(a) where the relevant billing authority is an abolished authority, all the successor authorities shall seek to agree together, and where the relevant billing authority is a relinquishing authority, it and all the acquiring authorities shall seek to agree together, the apportionment of the billing authority’s estimated share among them, and

(b) for the purposes of seeking the agreement referred to in paragraph (a) above the following conditions shall apply—

(i) no part of such share shall remain unapportioned,

(ii) the authorities may agree that one or more of them shall have a proportion which is nil, and

(iii) if agreement has not been reached by the date which is 5 days after the date on which the estimate is made, the apportionment shall be according to tax base, and for this purpose the relevant billing authority and each transferee authority shall seek to agree an estimate of the proportion which the tax base of the relevant area for the immediately preceding year bears to the tax base of the relevant billing authority for that year, and if no such agreement is reached by 1st January in the immediately preceding year the estimated proportion shall be determined, by the date which is 5 days after the date on which the estimate is made, by a person appointed by the relevant billing authority.

(5) For the purposes of paragraph (4)(b)(iii) above—

(a) “relevant area” means the area in respect of which the relevant billing authority exercised functions before the reorganisation date and the transferee authority, or the relinquishing authority, as the case may be, exercises functions immediately after that date,

(b) the tax base for an authority shall be item T for the purposes of and calculated in accordance with section 33 of the 1992 Act and Regulations made under that section, and

(c) section 31 of the Arbitration Act 1950(1) shall have effect for the purposes of a determination by an arbitrator under paragraph (4) above as if it were an arbitration under any other Act within the meaning of that section.

(6) Where the estimated amount of an acquiring authority is a proportion of an estimated surplus in the collection fund of the relevant billing authority, the relevant billing authority shall pay that authority an amount equal to the estimated amount, and, where the estimated amount is a proportion of an estimated deficit, the acquiring authority shall pay the relevant billing authority such amount, in either case by instalments for the purposes of which regulations 3(7) and (8) and 12(2) and (3) of the Funds Regulations shall apply as if—

(a) references to the amount “so calculated” included the estimated amount,

(b) references to “the financial year in question” were references to the immediately preceding year and references to “that financial year” were references to the year in which payment falls to be made as provided in regulation 8, and

(c) references to a relevant major precepting authority included references to the acquiring authority.

(7) Subject to regulation 8, where the estimated amount of a transferee authority, or a relinquishing authority, is a proportion of an estimated surplus in the collection fund of the relevant billing authority, the transferee authority, or the relinquishing authority, as the case may be, shall transfer that amount from its collection fund to its general fund, and, where the estimated amount is a proportion of an estimated deficit, the transferee authority, or the relinquishing authority, shall transfer that amount to its collection fund from its general fund.

(1)

1950 c. 27; section 31 was amended by section 8(2) of the Arbitration Act 1975 (c. 3).