Section 5.
1In this Schedule—
(a)" relevant financial year," in relation to any house, means the financial year preceding that in which the house was completed ;
(b)references in relation to a local authority to the product of a rate of a specified sum are references to the product of a rate of that sum in the pound for the district of the local authority for the relevant financial year, and section 9(1) of the [1963 c. 12.] Local Government (Financial Provisions) (Scotland) Act 1963 shall apply for the purpose of calculating that product.
2(1)A comparison shall be made between—
(a)the total of the amounts carried to the credit of the local authority's housing revenue account, as adjusted in accordance with this paragraph, for the relevant financial year (in this paragraph referred to as the " credits "), and
(b)the total of the amounts carried to the debit of that account, as adjusted as aforesaid, for that year (in this paragraph referred to as the " debits ").
(2)For the purposes of the comparison required by sub-paragraph (1) of this paragraph—
(a)it shall be assumed that in the credits, for the income for the relevant financial year from rents in respect of the houses to which the said account relates and any amounts carried to the credit of the account for that year under sub-paragraphs (4) and (5) of paragraph 1 of Schedule 7 to this Act, there has been substituted an amount equal to the local authority's total housing valuation for the relevant financial year multiplied by the fraction determined in respect of the relevant financial year by the Secretary of State in accordance with Part IV of this Schedule ;
(b)there shall be excluded from the debits any expenditure by way of rebates from rents ;
(c)there shall be excluded from the debits any surplus shown in the account at the end of the relevant financial year and from the credits any surplus brought forward from the account for the immediately preceding financial year.
(3)If it appears to the Secretary of State that any amount, or part of any amount, carried to the credit or to the debit of the local authority's housing revenue account for the relevant financial year ought to be left out of account for the purposes of the comparison required as aforesaid, he may, after consulting the authority, direct that for the purposes of that comparison the said amount or part of that amount shall be excluded from the credits or from the debits, as the case may be.
3If on the comparison required as aforesaid being made there is a deficit, the amount of that deficit shall be reduced by the amount which bears to that deficit—
(a)in the case of any house completed before the first day of the financial year commencing in 1968, the same proportion as the amount of the exchequer equalisation grant payable to the local authority for the relevant financial year under the [1954 c. 13.] Local Government (Financial Provisions) (Scotland) Act 1954 bears to the authority's relevant local expenditure as certified by the Secretary of State to have been estimated under the said Act of 1954 according to the latest estimate made before the end of the relevant financial year ; and
(b)in the case of any house completed on or after the first day of the financial year commencing in 1968, the same proportion as the amount of the resources element of the rate support grant payable to the local authority for the relevant financial year under the [1966 c. 51.] Local Government (Scotland) Act 1966 bears to the authority's relevant local expenditure as certified by the Secretary of State to have been estimated according to the latest estimate made before the end of the relevant financial year, as calculated for the purposes of Part II of Schedule 1 to that Act in accordance with the provisions of paragraphs 4 and 5 of the said Part II,
and where the amount of the deficit as so reduced exceeds the product of a rate of two shillings and sixpence, the Secretary of State shall pay to the authority an additional Exchequer contribution, the amount of which shall be determined according to the following Table—
| Where the amount of the local authority's reduced deficit— | Amount of additional Exchequer contribution— |
| exceeds the product of a rate of two shillings and sixpence but not of a rate of three shillings and sixpence | fifteen pounds |
| exceeds the product of a rate of three shillings and sixpence but not of a rate of four shillings and sixpence | thirty pounds |
| exceeds the product of a rate of four shillings and sixpence but not of a rate of five shillings and sixpence | forty-five pounds |
| exceeds the product of a rate of five shillings and sixpence but not of a rate of six shillings and sixpence | sixty pounds |
| exceeds the product of a rate of six shillings and sixpence | seventy-five pounds |
4(1)This paragraph applies to any house completed on or after the first day of the financial year commencing in 1967.
(2)Paragraph 3 of this Schedule shall apply to any house to which this paragraph applies, but as if for the references to the sum of two shillings and sixpence and to each of the sums listed in column 1 of the Table there were substituted respectively references to each of those sums adjusted by—
(a)dividing by the estimated aggregate product of a penny rate for the areas of all local authorities for the relevant financial year or, where that year was not a year of revaluation, for the last preceding year of revaluation, and
(b)multiplying by the said estimated aggregate for the financial year commencing in 1965,
and rounded off to the nearest penny.
(3)In sub-paragraph (2) of this paragraph, " year of revaluation " has the same meaning as in section 9 of the [1956 c. 60.] Valuation and Rating (Scotland) Act 1956.
5For the purposes of the calculations required by this Part of this Schedule to be made in relation to any local authority for any financial year there shall be used such accounts, whether provisional or final, of the authority (being accounts for that financial year) as the Secretary of State may direct; and if provisional accounts are used nothing in this Part of this Schedule shall be taken to require the making of any recalculation on the final accounts becoming available.
6For the purposes of this Schedule a local authority's total housing valuation for any relevant financial year shall be ascertained in accordance with this Part of this Schedule.
7There shall be ascertained—
(a)the aggregate of the gross annual values of all the houses to which the local authority's housing revenue account related at the end of the relevant financial year, and
(b)the aggregate of the gross annual values of all the houses to which the local authority's housing revenue account related at the end of the financial year immediately preceding the relevant financial year:
Provided that in ascertaining the said aggregates there shall be excluded such part of the gross annual value of any house as may be certified by the assessor to be attributable to any garage provided otherwise than by the local authority.
8The amounts ascertained under paragraph 7 of this Schedule shall be added together and their sum shall be divided by two; and the result shall be the local authority's total housing valuation for the relevant financial year.
9Where, by reason of a change in the areas of local authorities, houses are transferred from one local authority to another local authority, the Secretary of State may, having regard to the gross annual values of the houses and the date and circumstances of their transfer, direct that such other method of calculation as he may consider appropriate shall be used for the purposes of this Part of this Schedule in lieu of the method of calculation specified in the two last foregoing paragraphs.
10Any reference in this Part of this Schedule to the gross annual value of a house to which a local authority's housing revenue account related at the end of any financial year shall be construed as a reference to the gross annual value of that house, determined under section 6 of the [1956 c. 60.] Valuation and Rating (Scotland) Act 1956, as shown in the valuation roll in operation on the first day of the financial year immediately following the financial year in question ; so however that if no gross annual value determined as aforesaid is shown for that house in that valuation roll the reference shall be construed as a reference to such value as may be estimated by the assessor to be the gross annual value, determined as aforesaid, of the house.
11References in this Part of this Schedule to the assessor, in relation to any house, are references to the assessor appointed under section 1 of the Valuation and Rating (Scotland) Act 1956, for the area in which the house is situated.
12(1)The Secretary of State shall estimate—
(a)the aggregate of the total amounts carried to the credit of the housing revenue accounts of all local authorities for the relevant financial year,
(b)the aggregate of the total amounts carried to the debit of those accounts for that year, and
(c)the aggregate of the total housing valuations of all local authorities for that year.
(2)For the purposes of sub-paragraph (1) of this paragraph—
(a)it shall be assumed that in the credits, for the income for the relevant financial year from rents in respect of the houses to which the said accounts relate and any amounts carried to the credit of the accounts for that year under sub-paragraphs (4) and (5) of paragraph 1 of Schedule 7 to this Act, there has been substituted an amount equal to one-third of the aggregate of the Exchequer contributions payable to the said authorities for that year under any of the enactments mentioned in Schedule 8 to this Act;
(b)sub-paragraphs (2)(b) and (c) and (3) of paragraph 2 of this Schedule shall apply in like manner as they apply for the purposes of the comparison required by sub-paragraph (1) of the said paragraph.
13The amount by which the estimated aggregate of the debits referred to in head (b) of paragraph 12(1) of this Schedule exceeds the estimated aggregate of the credits referred to in head (a) of the said paragraph 12(1) shall be expressed as a fraction of the estimated aggregate of the total housing valuations referred to in head (c) of the said paragraph 12(1).