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1. This Order may be cited as the Combined Authorities (Finance) Order 2017 and comes into force on the day after the date on which it is made.
2. In this Order—
“the 1992 Act” means the Local Government Finance Act 1992(1);
“the 2009 Act” means the Local Democracy, Economic Development and Construction Act 2009;
“mayoral functions” in relation to a mayor, means—
the mayor’s general functions(2); and
if the mayor exercises PCC functions, the mayor’s PCC functions;
“the relevant amounts and calculations” means, in respect of the mayor’s general functions—
estimates of the amounts to be aggregated in making a calculation (whether originally or by way of substitute) in accordance with any of sections 42A, 42B, 47 to 49 and 52ZJ of the 1992 Act (calculation of council tax requirements etc.);
estimates of other amounts to be used for the purposes of such a calculation;
estimates of such a calculation; or
amounts required to be stated in a precept under Chapter 4 of Part 1 of the 1992 Act (precepts).
3.—(1) The costs of a mayor(3) for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions are to be met from precepts issued by the authority under section 40 of the 1992 Act (issue of precepts by major precepting authorities)(4).
(2) Paragraph (1) has effect subject to—
(a)the transitional provisions in Part 5; and
(b)any contrary provision made in an order under Part 6 of the 2009 Act (economic prosperity boards and combined authorities).
4.—(1) This article applies where a mayor exercises PCC functions.
(2) The following provisions are modified in accordance with the Schedule to this Order—
(a)chapter 4 and 4ZA of Part 1 of the 1992 Act (precepts and referendums relating to council tax increases)(5);
(b)the Council Tax (Demand Notices) (England) Regulations 2011(6);
(c)the Local Authorities (Conduct of Referendums) (Council Tax Increases) (England) Regulations 2012(7).
(3) Any monies paid to the mayor by a billing authority in respect of the PCC component of a precept(8) issued to the billing authority must be paid by the mayor into the police fund kept by the mayor by virtue of section 21 of the Police Reform and Social Responsibility Act 2011(9).
(4) In paragraph (3) “PCC component of a precept” means the amounts stated in a precept in respect of the mayor’s PCC functions in accordance with section 40 of the 1992 Act as modified by the Schedule to this Order.
5.—(1) The mayor must, before 1st February in any financial year, notify the combined authority of the mayor’s draft budget in relation to the following financial year.
(2) The draft budget must—
(a)set out the mayor’s spending plans and how the mayor intends to meet the costs of the mayor’s general functions; and
(b)include the relevant amounts and calculations.
(3) In this Part references to “the combined authority” are, except in article 8(7) and (8), to be construed as references to members of the authority other than the mayor.
6.—(1) The combined authority must review the mayor’s draft budget notified to it under article 5.
(2) The combined authority may make a report to the mayor on the draft budget.
(3) Any report—
(a)must set out whether or not the combined authority would approve the draft budget in its current form; and
(b)may include recommendations, including recommendations as to the relevant amounts and calculations that should be used for the financial year.
(4) The mayor’s draft budget shall be deemed to be approved by the combined authority unless the authority makes a report under paragraph (2) to the mayor before 8th February.
7. Where the combined authority makes a report under article 6, it must specify a period of at least five working days beginning on the day after the day on which the mayor receives the report within which the mayor may—
(a)decide whether or not to make any revisions to the draft budget; and
(b)notify the combined authority of the reasons for that decision and, where revisions are made, the revised draft budget.
8.—(1) When any period specified under article 7 by the combined authority has expired the authority must determine whether to—
(a)approve the mayor’s draft budget (or revised draft budget, as the case may be); or
(b)veto the draft budget (or revised draft budget) and approve the mayor’s draft budget incorporating the combined authority’s recommendations contained in the report to the mayor under article 6.
(2) The mayor’s draft budget (or revised draft budget) shall be deemed to be approved unless vetoed within the relevant period in accordance with this article.
(3) In making a decision on a question under paragraph (1) the combined authority must take into account the reasons given by the mayor under article 7.
(4) Any decision to veto the mayor’s draft budget (or draft revised budget) and approve the mayor’s draft budget incorporating the combined authority’s recommendations contained in the report to the mayor under article 6 must be decided by a two thirds majority of the members, or substitute members acting in their place, of the combined authority present and voting on the question at a meeting of the authority.
(5) In paragraph (2) “relevant period” means the period of five working days beginning with the day after the date on which the period specified under article 7 expires.
(6) Paragraph (7) applies in a case where the mayor has failed, in accordance with article 5(1), to notify the combined authority of the mayor’s draft budget before 1st February.
(7) Where this paragraph applies, the combined authority must determine the relevant amounts and calculations that are to be used for the financial year.
(8) Any decision under paragraph (7) must be decided by a two thirds majority of the members, or substitute members acting in their place, of the combined authority present and voting on the question at a meeting of the authority.
(9) Paragraphs (4) and (8) have effect subject to—
(a)paragraphs (10) and (11); and
(b)any provision to the contrary in an order made under Part 6 of the 2009 Act.
(10) In paragraphs (4) and (8) “member” and “substitute member” does not include any person who is not a member of a constituent council.
(11) In relation to the Tees Valley Combined Authority(10), the reference in paragraphs (4) and (8) to a two thirds majority is to be read as a reference to a three fifths majority.
9.—(1) The relevant amounts and calculations which are approved by the combined authority in accordance with article 8 shall be used in making a calculation (whether originally or by way of substitute)—
(a)under the provisions of the 1992 Act mentioned in paragraph (2); and
(b)in calculating the amounts to be stated in a precept under Chapter 4 of Part 1 of the 1992 Act (precepts).
(2) The provisions are—
(a)section 42A (calculation of council tax requirement by authorities in England);
(b)section 42B (calculation of basic amount of tax by authorities in England);
(c)sections 47 to 49 (calculation of tax for different valuation bands; calculation of amount payable by each billing authority; substitute calculations); and
(d)section 52ZJ (major precepting authority’s duty to make substitute calculations).
10. Immediately after any vote is taken at a meeting to consider a question under article 8, there must be recorded in the minutes of the proceedings of that meeting the names of the persons who cast a vote for the decision or against the decision or who abstained from voting.
11.—(1) The mayor must keep a fund (to be known as the mayor’s general fund) in relation to receipts arising, and liabilities incurred, in the exercise of the mayor’s general functions.
(2) All of the mayor’s receipts in respect of the exercise of the mayor’s general functions must be paid into the mayor’s general fund.
(3) All of the mayor’s expenditure in respect of the exercise of the mayor’s general functions must be paid out of the mayor’s general fund.
(4) The mayor must keep accounts of payments made into or out of the mayor’s general fund.
12.—(1) Subject to article 13, the costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in the financial year commencing on 1st April 2017 are not to be met from precepts issued by the authority under section 40 of the 1992 Act (issue of precepts by major precepting authorities).
(2) The costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in a financial year commencing on or after 1st April 2018 (“the relevant year”) are not to be met from precepts issued by the authority under section 40 of the 1992 Act if the first election of a mayor for the area of the combined authority occurs during the relevant year.
(3) The costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in the financial year that immediately follows the relevant year are not to be met from precepts issued by the authority under section 40 of the 1992 Act if the first election of a mayor for the area of the combined authority occurs after 23rd January in the relevant year.
13.—(1) This article applies in relation to—
(a)the Greater Manchester Combined Authority(11);
(b)a billing authority(12) whose area is within the area of the Greater Manchester Combined Authority; and
(c)the financial year commencing on 1st April 2017 (“the relevant year”).
(2) The costs of the mayor that are incurred in, or in connection with, the exercise of mayoral functions in the relevant year shall be met—
(a)in the case of the mayor’s PCC functions, from precepts issued by the Police and Crime Commissioner for Greater Manchester under section 40 of the 1992 Act (issue of precepts by major precepting authorities); and
(b)in the case of the mayor’s fire and rescue functions, from precepts issued by the Greater Manchester Fire and Rescue Authority under section 40 of that Act.
(3) A billing authority that has been issued with a precept by the Police and Crime Commissioner for Greater Manchester in respect of the relevant year must, on and after 8th May 2017, pay to the mayor out of its collection fund(13) the amounts owing in respect of that precept in accordance with the Local Authorities (Funds) (England) Regulations 1992(14).
(4) A billing authority that has been issued with a precept by the Greater Manchester Fire and Rescue Authority in respect of the relevant year must, on and after 8th May 2017, pay to the combined authority out of its collection fund the amounts owing in respect of that precept in accordance with the Local Authorities (Funds) (England) Regulations 1992.
(5) A billing authority that is required to make payments out of its collection fund to the Greater Manchester Fire and Rescue Authority in respect of the relevant year must, on and after 8th May 2017 pay those amounts to the combined authority in accordance with the Non-Domestic Rating (Rates Retention) Regulations 2013(15).
(6) In paragraph (2)(b), “fire and rescue functions” means the functions conferred on the combined authority as a fire and rescue authority and exercisable by the Mayor in accordance with an order under sections 105A (other public authority functions) and 107D (functions of mayors: general) of the 2009 Act.
Signed by authority of the Secretary of State for Communities and Local Government
Bourne of Aberystwyth
Parliamentary Under Secretary of State
Department for Communities and Local Government
26th April 2017
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