The Local Government Changes For England (Property Transfer and Transitional Payments) Regulations 1995

Designated authorities: recovery of expenditure and distribution of surpluses

21.—(1) Subject to paragraph (2) below, an authority which is specified in a section 17 order as the designated authority in relation to any provision of a relevant instrument (“the designated authority”) may recover from each participant authority such proportion of any eligible expenditure as may be agreed between them or, failing such agreement, the appropriate proportion.

(2) Where the designated authority is a successor authority in relation to an abolished authority, the amount of any eligible expenditure shall, for the purposes of paragraph (1) above, be reduced by an amount equal to the total of any interest or other sums received by the designated authority in respect of investments vested in that authority by virtue of regulation 6(8).

(3) Where the designated authority is a successor authority in relation to an abolished authority and the total of any sums received by the designated authority in any financial year in carrying out its functions as a designated authority exceeds the amount of any eligible expenditure in respect of that year, the designated authority shall, as soon as is reasonably practicable after the end of that year, pay to each participant authority the appropriate proportion of the excess.

(4) In this regulation—

• “the appropriate proportion”, in relation to any participant authority, means—

  (a)

  where the participant authority is a successor authority in relation to an abolished authority, the proportion equal to the proportion which the council tax base of the participant authority for the financial year in which an amount is recovered under paragraph (1) above, or paid under paragraph (3) above, bears to the aggregate of the council tax bases for that financial year of the designated authority and all participant authorities; and

  (b)

  where the participant authority is the acquiring authority in relation to a transferred area, the proportion equal to the proportion which the relinquishing authority’s estimate of the council tax base of the transferred area for that financial year bears to that authority’s estimate of the council tax base for that year of the area which, immediately before the reorganisation date, was the area of that authority;

• “eligible expenditure”, in relation to a designated authority, means expenditure properly incurred by the authority in carrying out any of its functions as a designated authority for the meeting of which provision is not otherwise made in a relevant instrument; and

• “participant authority” has the same meaning as in Part III of these Regulations.