Office of Public Sector Information
PART III continued CHAPTER I continued
(4) Where a direction is given under this section, the Authority shall make calculations in substitution in relation to that year under subsections (4) to (7) of section 85 above in relation to—
(a) the Metropolitan Police Authority alone; or
(b) the Metropolitan Police Authority and one or more other constituent bodies.
(5) If the result of the substitute calculations is such that—
(a) there is an increase in the Authority’s consolidated budget requirement for the year, or
(b) there is no such increase, but the results of calculations in substitution made in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992 would be different from the last relevant calculations in relation to the year,
the Authority shall make calculations in substitution in relation to the year in accordance with those provisions.
(6) In subsection (5) above, “the last relevant calculations” means the last calculations made by the Authority in relation to the year in accordance with—
(a) sections 85 to 90 above and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992, or
(b) sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of that Act.
(7) None of the substitute calculations shall have any effect if—
(a) the amount calculated under section 85(6) or (7) above for the Metropolitan Police Authority is not in compliance with the direction; or
(b) there is an increase in the Authority’s consolidated budget requirement for the year (as last calculated) which exceeds the minimum increase required to be made to the component budget requirement for the Metropolitan Police Authority (as last calculated for the year) to comply with the direction under subsection (2) above; or
(c) in making substitute calculations under section 88(2) or 89(3) above, the Authority fails to comply with subsection (8) below.
(8) In making substitute calculations under section 88(2) or 89(3) above, the Authority must use any amount determined in the previous calculations for item P1 or T in section 88(2) above or for item P2 or item TP2 in section 89(4) above.
(9) For the purposes of subsection (8) above, the Authority may treat any amount determined in the previous calculations for item P1 in section 88(2) above or item P2 in section 89(4) above as increased by the relevant portion of any new additional grant.
(10) For the purposes of subsection (9) above, “the relevant portion of any new additional grant” means the amount of any additional grant payable to the Authority for the year which was not taken into account by the Authority in making the previous calculations, but—
(a) in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part; and
(b) in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;
and “special item” has the same meaning in this subsection as in sections 88 and 89 above (see section 89(2)).
(11) In subsection (10) above, “prescribed” means specified in, or determined in accordance with, either—
(a) the report under section 85 of the [1988 c. 41.] Local Government Finance Act 1988 relating to the amount of additional grant in question, or
(b) regulations made by the Secretary of State under section 88(3)(b) above (in relation to item P1) or under section 89(5)(b) above (in relation to item P2),
as the Secretary of State may determine for the purposes of paragraph (a) or (b) of that subsection and any particular financial year or years.
(12) Subsections (7)(c) and (8) above shall not apply if the previous calculations have been quashed because of a failure to comply with the appropriate Greater London provisions in making the calculations.
(13) For the purposes of subsection (12) above, “the appropriate Greater London provisions” means—
(a) in the case of calculations required to be made in accordance with sections 85 to 90 above and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992, those provisions; and
(b) in the case of calculations required to be made in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of that Act, those provisions.
(14) Any substitute calculations under this section shall be made in accordance with Schedule 7 to this Act.
(1) The Authority must—
(a) make the substitute calculations required by section 95 above, and
(b) where applicable, issue any precepts in substitution required in consequence under section 42 of the [1992 c. 14.] Local Government Finance Act 1992,
before the end of the period of 35 days beginning with the day on which it receives the direction under section 95 above.
(2) If the Authority fails to comply with the requirements mentioned in paragraph (a) or (b) of subsection (1) above within the period mentioned in that subsection, any authority to which it has power to issue a precept shall have no power during the period of restriction to pay anything in respect of a precept issued by the Authority for the year.
(3) For the purposes of subsection (2) above, the “period of restriction” is the period which—
(a) begins at the end of the period mentioned in subsection (1) above; and
(b) ends at the time (if any) when the Authority complies with the requirements mentioned in paragraphs (a) and (b) of subsection (1) above.
(4) The following provisions of this section apply in relation to substitute calculations other than those made pursuant to section 95 above.
(5) Subject to variation or revocation, a direction under section 95 above shall have effect in relation to any substitute calculations made under any enactment by the Authority—
(a) in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992;
(b) in relation to the year to which the direction relates; and
(c) at any time after the giving of the direction.
(6) Where a direction under section 95 above has effect in relation to any substitute calculations by virtue of subsection (5) above, none of the calculations shall have any effect if the amount calculated under section 85(6) above for the Metropolitan Police Authority is not in compliance with the direction.
(1) Where—
(a) the Authority has made calculations in accordance with subsections (4) to (7) of section 85 above (whether originally or by way of substitute), and
(b) the Mayor is of the opinion that, because of an emergency or disaster involving destruction of or danger to life or property, it is appropriate to recalculate any component budget requirements,
the Authority may make calculations in substitution in relation to the year in accordance with those subsections.
(2) None of the substitute calculations shall have any effect if they involve—
(a) any change in the sums paid or to be paid to any of the functional bodies otherwise than out of the aggregate specified in subsection (2) of section 102 below; or
(b) any change in the Authority’s consolidated budget requirement for the year.
(3) Any substitute calculations under this section shall be made in accordance with Schedule 7 to this Act.
Schedule 7 to this Act (which contains procedural requirements for the making of substitute calculations by the Authority) shall have effect.
In this Part—
“component budget requirement” has the meaning given in section 85(6) above;
“consolidated budget requirement” has the meaning given in section 85(8) above;
“constituent body” has the meaning given in section 85(3) above;
“local government finance report” means such a report under section 78A of the [1988 c. 41.] Local Government Finance Act 1988;
“police grant” has the meaning given by section 32(12) of the [1992 c. 14.] Local Government Finance Act 1992;
“relevant special grant” has the meaning given by section 32(12) of the [1992 c. 14.] Local Government Finance Act 1992.
(1) For each financial year, the Secretary of State shall pay a grant (to be called “general GLA grant”) to the Authority.
(2) The grant shall be paid for the purposes of the Authority and the functional bodies.
(3) For each financial year the Secretary of State shall make a determination under this section.
(4) A determination shall state the amount of the grant for the year.
(5) Before making a determination, the Secretary of State shall consult the Mayor.
(6) The grant shall be paid in such instalments or such amounts and at such times as the Secretary of State may, with the Treasury’s consent, determine.
(1) For each financial year, the Secretary of State shall pay a grant (to be called “GLA transport grant”) to the Authority.
(2) The grant shall be paid for the purposes of Transport for London.
(3) For each financial year the Secretary of State, after consultation with the Mayor, shall make a determination stating the amount of the grant for the year.
(4) The grant shall be paid in such instalments or such amounts and at such times as the Secretary of State may, with the Treasury’s consent, determine.
(5) The amount of the grant, or any terms relating to payment of the grant, may be varied from time to time by the Secretary of State after consultation with the Mayor.
(1) For each financial year, it shall be the duty of the Authority to pay to each functional body, out of the aggregate specified in subsection (2) below, the amount required by the body out of that aggregate in accordance with the calculations (or last calculations) under section 85(4) to (7) of this Act.
(2) The aggregate mentioned in subsection (1) above is the aggregate of the sums received by the Authority for the financial year in respect of—
(a) revenue support grant;
(b) additional grant;
(c) relevant special grant;
(d) general GLA grant;
(e) redistributed non-domestic rates;
(f) any precept issued by the Authority; and
(g) payments to the Authority by billing authorities in accordance with regulations under section 99(3) of the [1988 c. 41.] Local Government Finance Act 1988.
(3) The payments required by subsection (1) above shall be made by instalments during the financial year in question.
(4) The instalments to be paid under subsection (3) above to a functional body shall be payments of such amounts, and shall be payable at such times, as will enable the body to meet its budgeted expenditure for the year as it falls due.
(5) It shall be the duty of the Authority to pay instalments under subsection (3) above punctually.
(6) In the application of subsection (4) above in relation to a functional body, “budgeted expenditure” means expenditure which, in accordance with the calculations (or last calculations) made under section 85(4) to (7) above, the body is to meet out of payments by way of instalments under this section.
(7) If an overpayment is made to a functional body in respect of the sums payable to it by virtue of this section, the functional body shall, in accordance with any directions given to it for the purpose by the Mayor, make at such times and in such manner as may be specified in the directions such payments to the Authority by way of repayment as may be so specified.
(8) In this section “relevant special grant” has the meaning given by section 32(12) of the [1992 c. 14.] Local Government Finance Act 1992.
(1) Where the Authority receives any grant or other payment made only for the purposes, or particular purposes, of a functional body, the Authority shall forthwith account for the grant or other payment to the functional body concerned and pay it over to that body.
(2) Subsection (1) above does not apply in relation to any sum received in respect of an item which falls within any of the paragraphs of subsection (2) of section 102 above.
(1) Section 155 of the [1989 c. 42.] Local Government and Housing Act 1989 (emergency financial assistance to local authorities) shall be amended as follows.
(2) After subsection (1) (local authority incurring expenditure as result of emergency or disaster) there shall be inserted—
“(1A) Expenditure incurred as mentioned in subsection (1) above by—
(a) the London Fire and Emergency Planning Authority,
(b) the Metropolitan Police Authority, or
(c) Transport for London, in respect of places or areas within Greater London,
shall be treated for the purposes of this section as expenditure so incurred by the Greater London Authority (and, accordingly, as so incurred by a local authority).
(1B) To the extent that any financial assistance given to the Greater London Authority under this section is referable to expenditure incurred by a body mentioned in paragraph (a), (b) or (c) of subsection (1A) above, the financial assistance shall be treated for the purposes of section 103 of the Greater London Authority Act 1999 as a payment made to the Greater London Authority for the purposes of that body.”
(3) In subsection (4) (local authorities in England and Wales to which the section applies)—
(a) after paragraph (b) there shall be inserted—
“(bb) the Greater London Authority;”;
(b) at the end of paragraph (eb) there shall be inserted “or”; and
(c) paragraph (f) (Receiver for the Metropolitan Police District) shall cease to have effect.
(1) Section 74 of the [1988 c. 41.] Local Government Finance Act 1988 (levies) shall be amended as follows.
(2) In subsection (4) (which enables regulations to include provision permitting anticipation of levies under the section in the making of certain calculations) after paragraph (b) there shall be inserted—
“(bb) that the Greater London Authority in making calculations in accordance with sections 85 and 86 of the Greater London Authority Act 1999 (originally or by way of substitute) in the case of any constituent body (within the meaning of those sections), except the Metropolitan Police Authority (for which separate provision is made), may anticipate a levy;”.
(1) Section 91 of the [1988 c. 41.] Local Government Finance Act 1988 (general funds) shall be amended as follows.
(2) In subsection (1) (which specifies the relevant authorities) after paragraph (aa) there shall be inserted—
“(ab) the Greater London Authority,”.
(3) In subsection (3) (general fund to be established on 1 April 1990, subject to subsection (3A)) for “subsection (3A)” there shall be substituted “subsections (3A) and (3C)”.
(4) After subsection (3B) there shall be inserted—
“(3C) In the case of the Greater London Authority, the general fund must be established on a date specified in regulations.”
(5) In section 143 of the [1988 c. 41.] Local Government Finance Act 1988 (regulations and orders) in subsection (5) (exceptions from Parliamentary procedure) after “regulations under section 75” there shall be inserted “, 91(3C)”.
(1) Section 66 of the [1992 c. 14.] Local Government Finance Act 1992 (matters which are not to be questioned except on judicial review) shall be amended as follows.
(2) In subsection (2) (which specifies the matters) after paragraph (c) there shall be inserted—
“(cc) a calculation made in accordance with any of sections 85 to 90 of the Greater London Authority Act 1999;
(cd) a substitute calculation made in accordance with any of sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act;”.
(1) Section 67 of the [1992 c. 14.] Local Government Finance Act 1992 (functions to be discharged only by the authority) shall be amended as follows.
(2) In subsection (1) (functions to be discharged only by authority, subject to subsection (3)) for “subsection (3)” there shall be substituted “subsections (3) and (3A)”.
(3) In subsection (2) (which specifies the functions) after paragraph (b) there shall be inserted—
“(bb) making a calculation in accordance with any of sections 85 to 90 of the Greater London Authority Act 1999;
(bc) making a substitute calculation in accordance with any of sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act;”.
(4) In subsection (3) (functions which may be exercised by a committee) at the beginning there shall be inserted “Subject to subsection (3B) below,”.
(5) After subsection (3) there shall be inserted—
“(3A) In the case of the Greater London Authority, the functions mentioned in subsection (2) above shall be discharged on behalf of the Authority in accordance with the provisions of the Greater London Authority Act 1999 but only by the Mayor of London, the London Assembly or the Mayor and Assembly acting jointly.
(3B) Subsection (3) above does not apply in relation to the Greater London Authority, but where Schedule 6 to the Greater London Authority Act 1999 makes provision enabling a function to be discharged by a committee or other representatives of the London Assembly, the function may be discharged by such a committee or representatives in accordance with the provisions of that Schedule.”
(1) In section 168 of the [1972 c. 70.] Local Government Act 1972 (local financial returns) in subsection (5) (which defines local authority for the purposes of the section) the word “and” at the end of paragraph (b) shall be omitted and after paragraph (c) there shall be added “; and
(d) a functional body, within the meaning of the Greater London Authority Act 1999.”
(2) In section 139A of the [1988 c. 41.] Local Government Finance Act 1988 (information) in subsection (5) (which defines the relevant authorities) after paragraph (b) there shall be inserted—
“(c) a functional body, within the meaning of the Greater London Authority Act 1999.”
(3) Section 68 of the [1992 c. 14.] Local Government Finance Act 1992 (information required for purposes of Part I of that Act by Secretary of State from relevant authority or relevant officer) shall be amended as follows.
(4) In subsection (1)(b), after “this Part” there shall be inserted “or Part III of the Greater London Authority Act 1999”.
(5) In subsection (3) (failure of authority or officer to comply) after “this Part” there shall be inserted “or Part III of the Greater London Authority Act 1999”.
(6) In subsection (5), in the definition of “relevant authority” after “means” there shall be inserted “(a)” and after “precepting authority;” there shall be inserted “or
(b) a functional body, within the meaning of the Greater London Authority Act 1999) (see section 424(1) of that Act);”.
(1) A functional body shall, at the request of the Mayor or the Assembly, provide the Authority with such information relating to the financial affairs of the body as may be specified or described in the request.
(2) The information shall be provided in such form and manner, and within such time, as may be specified in the request.
(3) The information that may be requested under subsection (1) above is such information as may be required for the purpose of any functions exercisable by the Mayor or the Assembly.
(4) The information that may be requested under subsection (1) above from a functional body includes—
(a) information which the body has or can reasonably obtain; and
(b) information about the body’s plans or proposals relating to the finances or expenditure of the body or of any company in which the body has an interest.
(1) Section 39 of the [1989 c. 42.] Local Government and Housing Act 1989 (application of Part IV) shall be amended as follows.
(2) In subsection (1) (which specifies the authorities with respect to whose finances the Part applies) after paragraph (b) there shall be inserted—
“(bb) the Greater London Authority;
(bc) a functional body, within the meaning of the Greater London Authority Act 1999;”.
(3) In consequence of the amendment made by subsection (2) above, in subsection (1) the paragraph (bb) inserted after paragraph (a) by paragraph 88 of Schedule 16 to the [1994 c. 19.] Local Government (Wales) Act 1994 (county borough council) shall become paragraph (aa).
(4) In subsection (3) (bodies which may be prescribed by regulations under subsection (1)(k)) at the end of paragraph (c) there shall be inserted “or”.
(1) Sections 53 to 55 of the [1989 c. 42.] Local Government and Housing Act 1989 (basic and supplementary credit approvals and the criteria for issuing them) shall not apply in relation to the Authority or any of the functional bodies.
(2) Sections 113 to 117 below shall apply in relation to the Authority and the functional bodies in place of the provisions mentioned in subsection (1) above.
(1) Before the beginning of each financial year the Secretary of State shall issue to the Mayor, in the form of a notice in writing, a credit approval with respect to the credit arrangements and expenditure for capital purposes during that year of the Authority and each of the functional bodies.
(2) The Secretary of State shall send to each of the functional bodies a copy of any credit approval issued under this section.
(3) A credit approval issued under this section (an “aggregate credit approval”) may be nil but, subject to that, shall consist of such number of specified amounts of money, for such authorities or purposes, as the Secretary of State may determine.
(4) Each amount so determined and specified by the Secretary of State must be an amount of a category described in subsection (5) below.
(5) For the purposes of this Chapter—
(a) a category A amount is an amount for a specified authority with respect to the authority’s credit arrangements and expenditure for capital purposes during the financial year for which the approval is given;
(b) a category B amount is an amount for a specified authority with respect to the authority’s credit arrangements and expenditure for capital purposes of one or more specified descriptions during that year;
(c) a category C amount is an amount with respect to credit arrangements and expenditure for capital purposes during that year for allocation by the Mayor to such one or more of the authorities, and in such proportions, as he may see fit, and for such purposes consisting of or comprised within those purposes as he may state in the notice of an allocation;
(d) a category D amount is an amount with respect to credit arrangements and expenditure for capital purposes of one or more specified descriptions during that year for allocation by the Mayor to such one or more of the authorities, and in such proportions, as he may see fit, and for such purposes consisting of or comprised within those purposes as he may state in the notice of an allocation.
(6) In this section—
“authority” means the Authority or any of the functional bodies;
“specified” means specified by the Secretary of State in the approval.
(1) Any Minister of the Crown may at any time issue to the Mayor, in the form of a notice in writing, a credit approval with respect to credit arrangements and expenditure for capital purposes.
(2) A credit approval issued under this section (an “additional credit approval”) shall have effect for such period as is specified in the approval.
(3) Where an additional credit approval is issued not more than six months after the end of a financial year, the period specified under subsection (2) above may be one which begins, or begins and ends, at any time during that financial year.
(4) Subsections (2) to (6) of section 113 above shall apply in relation to an additional credit approval as they apply in relation to an aggregate credit approval, but taking—
(a) any reference to the Secretary of State as a reference to the Minister of the Crown issuing the approval, and
(b) any reference to the financial year for which the approval is given as a reference to the period for which the approval has effect.
(1) Where the Mayor makes an allocation from a category C or D amount—
(a) under an aggregate credit approval, to the Authority, or
(b) under an additional credit approval, to the Authority or a functional body,
he shall give notice of the allocation to each of the functional bodies.
(2) Where the Mayor makes an allocation to a functional body from a category C or D amount under an aggregate credit approval, notice of the allocation shall be given to each of the functional bodies by including a statement of the amount so allocated (together with a statement of the purposes for which the amount is allocated) in section B of the capital spending plan, pursuant to section 122(4)(d) below.
(3) In the other provisions of this Chapter, any reference to notice of an allocation from a category C or D amount is a reference to the notice of the allocation given in accordance with subsection (1) or (2) above.
(1) Where regulations made by the Secretary of State so require, an aggregate credit approval or an additional credit approval shall specify, directly or by reference to tables or other documents specified in the approval, an amortisation period.
(2) In this section “amortisation period” means a period during which a relevant authority is required to set aside, from a revenue account, as provision to meet credit liabilities, such amounts as may be appropriately determined.
(3) If regulations under subsection (1) above so provide, an aggregate credit approval or an additional credit approval may specify—
(a) different amortisation periods in relation to the use of the approval in respect of credit arrangements and expenditure for capital purposes of different descriptions; or
(b) different amortisation periods in relation to different amounts specified in the approval.
(4) Subsection (1) above does not apply in relation to a category B credit approval issued in respect of expenditure which is treated as expenditure for capital purposes of a relevant authority by virtue only of directions under section 40(6) of the [1989 c. 42.] Local Government and Housing Act 1989.
(5) But the Secretary of State or other Minister issuing a category B credit approval may specify in the approval, directly or by reference to tables or other documents specified in the approval, an amortisation period in respect of such expenditure as is mentioned in subsection (4) above.
(6) In subsection (2) above, “appropriately determined” means—
(a) in its application for the purposes of subsection (1) above, determined in accordance with regulations under that subsection; and
(b) in its application for the purposes of subsection (5) above, determined in accordance with the approval.
(7) In this section—
“category B credit approval” means an aggregate credit approval or an additional credit approval to the extent that the approval consists of a category B amount;
“relevant authority”, in the case of any credit approval, means an authority—
for which a category A or B amount is specified in the approval, or
to which a category C or D amount is allocated under the approval.
Greater London Authority Act 1999