Local Government Act 2003

Section 40

SCHEDULE 2 Welsh local government finance reports

1 In Part 5 of the Local Government Finance Act 1988 (c. 41) (grants), after section 84C there is inserted—

“Chapter 3 Revenue support grant: wales

84D Application of Chapter 3

This Chapter applies only in relation to Wales.

84E Revenue support grant: Wales

(1) The National Assembly for Wales shall pay a grant for each financial year to—

(a) receiving authorities, and

(b) specified bodies.

(2) Grant under this section shall be known as revenue support grant.

(3) Revenue support grant shall be payable in accordance with this Chapter.

84F Determination of grant

(1) The National Assembly for Wales shall for each financial year make—

(a) a determination under subsection (2), or

(b) a determination under each of subsections (3) and (4).

(2) A determination under this subsection shall state—

(a) the total amount of revenue support grant for the year,

(b) the amount of the grant the Assembly proposes to pay to receiving authorities, and

(c) the amount of the grant the Assembly proposes to pay to each specified body.

(3) A determination under this subsection shall state—

(a) the total amount of revenue support grant for the year for—

(i) receiving authorities other than police authorities, and

(ii) specified bodies,

(b) the amount of the grant the Assembly proposes to pay to receiving authorities that are not police authorities, and

(c) the amount of the grant the Assembly proposes to pay to each specified body.

(4) A determination under this subsection shall state the total amount of revenue support grant for the year for police authorities.

(5) Before making a determination under this section, the Assembly shall consult such representatives of local government as appear to it to be appropriate.

(6) Different amounts may be stated under subsection (2)(c) or (3)(c) in relation to different specified bodies.

(7) In this section “police authority” means a police authority established under section 3 of the Police Act 1996.

84G Local government finance reports

(1) The National Assembly for Wales shall specify a determination under section 84F in a report, to be called a local government finance report.

(2) A local government finance report shall also specify the basis on which the Assembly proposes to distribute among the receiving authorities to which the report relates the amount stated under section 84F(2)(b) or, as the case may be, section 84F(3)(b) or (4).

(3) Before making a report under this section, the Assembly shall notify the general nature of the basis of distribution proposed to be specified in the report to such representatives of local government as appear to it to be appropriate.

(4) A report made under this section shall be published by the Assembly.

(5) As soon as is reasonably practicable after a report is published under subsection (4), the Assembly shall send a copy of the report to each of the receiving authorities to which the report relates.

84H Effect of publication of local government finance report

(1) This section applies where the National Assembly for Wales publishes a local government finance report.

(2) The Assembly shall pay revenue support grant for the year to which the report relates in accordance with the determination specified in the report.

(3) The amount of revenue support grant to be paid to receiving authorities in accordance with subsection (2) shall be distributed among, and paid to, them in accordance with sections 84J and 84K.

(4) The amount of revenue support grant to be paid to a specified body in accordance with subsection (2) shall be paid at such time, or in instalments of such amounts and at such times, as the Assembly may determine.

(5) The time of payment under subsection (4) may be during or after the financial year for which the grant is payable.

84J Calculation of grant payable to receiving authorities

(1) This section applies where the National Assembly for Wales publishes a local government finance report.

(2) As soon as is reasonably practicable after the report has been published, the Assembly shall calculate in relation to each receiving authority to which the report relates what sum, if any, falls to be paid to the authority by way of revenue support grant for the year to which the report relates.

(3) The calculation under subsection (2) shall be in accordance with the basis of distribution specified in the report.

(4) The Assembly may carry out the subsection (2) calculation again at any time before the end of the financial year immediately following the one to which the report relates.

(5) The power under subsection (4) may only be exercised once and ceases to be exercisable if the Assembly publishes under section 84L a report amending the local government finance report.

(6) As soon as is reasonably practicable after making a calculation under subsection (2) or (4), the Assembly shall inform each receiving authority to which the report relates of the outcome, so far as relating to it.

84K Payment of grant to receiving authorities

(1) The National Assembly for Wales shall pay any sum calculated under section 84J(2) as falling to be paid by way of revenue support grant to a receiving authority in instalments of such amounts, and at such times in the financial year for which the grant is payable, as the Assembly may determine.

(2) Where the Assembly makes a calculation under section 84J(4) that shows an increase in the sum that falls to be paid to a receiving authority, the Assembly shall pay the authority a sum equal to the difference.

(3) Payment under subsection (2) shall be at such time, or in instalments of such amounts and at such times, as the Assembly may determine, subject to subsection (4).

(4) The time for payment under subsection (2) must be after the end of the financial year for which the grant is payable.

(5) Where the Assembly makes a calculation under section 84J(4) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay to the Assembly a sum equal to the difference.

(6) The time for payment under subsection (5) shall be such day after the end of the financial year for which the grant is payable as the Assembly may specify.

84L Amending reports

(1) Where the National Assembly for Wales has published a local government finance report, the Assembly may make a report containing amendments to the basis of distribution specified under section 84G(2) in the published report.

(2) Where the Assembly has published two local government finance reports relating to the same financial year, the power under subsection (1) may (in particular) be exercised by making a single report relating to both of the published reports.

(3) In relation to any particular local government finance report, the power under subsection (1) is exercisable—

(a) at any time before the end of the financial year immediately following the one to which the report relates, but

(b) only once.

(4) Before making a report under this section, the Assembly shall notify to such representatives of local government as appear to it to be appropriate the general nature of the amendments it proposes to make.

(5) A report made under this section shall be published by the Assembly.

(6) As soon as is reasonably practicable after the Assembly publishes under this section a report relating to a local government finance report, the Assembly shall send a copy of the published report to each receiving authority to which the local government finance report relates.

84M Recalculation of grant following amending report

(1) This section applies where the National Assembly for Wales publishes under section 84L a report (“the amending report”) relating to a local government finance report (“the original report”).

(2) As soon as is reasonably practicable after the Assembly publishes the amending report, the Assembly shall calculate in relation to each receiving authority to which the original report relates what sum, if any, falls to be paid to the authority by way of revenue support grant for the financial year to which the original report relates.

(3) The calculation under subsection (2) shall be in accordance with the amended basis of distribution.

(4) The Assembly may carry out the subsection (2) calculation again at any time before—

(a) the end of the financial year immediately following the one to which the original report relates, or

(b) if later, the end of the period of 3 months beginning with the day on which the Assembly publishes the amending report.

(5) The power under subsection (4) may only be exercised once.

(6) As soon as is reasonably practicable after making a calculation under subsection (2) or (4), the Assembly shall inform each receiving authority to which the original report relates of the outcome, so far as relating to it.

84N Payment of grant following amending report

(1) Where the National Assembly for Wales makes a calculation under section 84M(2) or (4) that shows an increase in the sum that falls to be paid to a receiving authority, it shall pay the authority a sum equal to the difference.

(2) Payment under subsection (1) shall be at such time, or in instalments of such amounts and at such times, as the Assembly may determine, subject to subsection (3).

(3) The time for payment under subsection (2) must be after the end of the financial year in which the report under section 84L was made.

(4) Where the Assembly makes a calculation under section 84M(2) or (4) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay a sum equal to the difference to the Assembly.

(5) The time for payment under subsection (4) shall be such day after the end of the financial year in which the report under section 84L was made as the Assembly may specify.

84P Information deadlines

(1) The National Assembly for Wales may set a deadline for the receipt of information to be taken into account by it when making a calculation under section 84J(2) or (4) or 84M(2) or (4).

(2) Different deadlines may be set under subsection (1) in relation to different kinds of information.

(3) A deadline under subsection (1) shall have effect only if the Assembly informs each receiving authority concerned of the deadline and of the information to which it relates.

(4) Notification under subsection (3) may be given at any time before the making of the calculation to which the deadline relates, including a time before the making of a determination under section 84F for the year concerned.

(5) When making a calculation in relation to which a deadline under subsection (1) has effect, the Assembly shall leave information to which the deadline applies out of account if it is received after the passing of the deadline.”

2 (1) In Schedule 8 to the Local Government Finance Act 1988 (c. 41) (non-domestic rates: pooling), Part 3 (distribution of non-domestic rates to be dealt with in local government finance reports) is amended as follows.

(2) In paragraph 8(2) (meaning of “local government finance report” in Part 3 of the Schedule), after “section 78A” there is inserted “or 84G”.

(3) In paragraph 9(4) (distributable amount to be stated in local government finance report), at the end there is inserted “, subject to paragraph 9A below.”

(4) After paragraph 9 there is inserted—

“Years where two local government finance reports prepared for Wales

9A (1) Where the National Assembly for Wales publishes two local government finance reports for a particular financial year—

(a) paragraph 9(4) above does not apply in relation to Wales as respects that year, and

(b) the Assembly shall decide whether—

(i) distribution among all receiving authorities of the amount arrived at under paragraph 9 above for the year is to be dealt with in just one of those reports (the chosen report), or

(ii) each of those reports is to deal with the distribution of so much of that amount as is for the receiving authorities to which that report relates.

(2) If the Assembly decides as mentioned in sub-paragraph (1)(b)(i) above—

(a) the Assembly shall specify that amount (the distributable amount for the year) in the chosen report, and

(b) the chosen report is the local government finance report for that year to which the requirement under paragraph 10(1) below applies.

(3) If the Assembly decides as mentioned in sub-paragraph (1)(b)(ii) above—

(a) paragraphs 10 and 11 below do not apply in relation to Wales as respects the year (but see paragraphs 11A to 11C below),

(b) the power under paragraph 13 below may (in particular) be exercised by making a single amending report relating to both of the local government finance reports for the year, and

(c) paragraph 14 below does not apply in relation to any report amending either of those reports (but see paragraph 14A below).”

(5) In paragraph 11(1)(a) (paragraph applies where distributable amount specified in accordance with paragraph 9), for “paragraph 9” there is substituted “paragraphs 9 and 9A(2)”.

(6) After paragraph 11 there is inserted—

“11A (1) Where the National Assembly for Wales proposes to publish two local government finance reports for a particular financial year and as respects that year decides as mentioned in paragraph 9A(1)(b)(ii) above, the Assembly shall in each of those reports—

(a) specify the amount for the year arrived at under paragraph 9 above,

(b) specify how much of that amount is for the receiving authorities to which the report relates, and

(c) specify the basis on which the Assembly proposes to distribute among those authorities the amount specified under paragraph (b) above.

(2) Before making such a report as is mentioned in sub-paragraph (1) above, the Assembly shall notify the general nature of the basis of distribution proposed to be specified in the report to such representatives of local government as appear to the Assembly to be appropriate.

11B (1) This paragraph applies where the National Assembly for Wales—

(a) publishes a local government finance report that is one of two being published by it for a particular financial year, and

(b) as respects that year decides as mentioned in paragraph 9A(1)(b)(ii) above.

(2) The amount specified under paragraph 11A(1)(b) above in the report shall be distributed among and paid to the receiving authorities to which the report relates in accordance with this paragraph and paragraph 12 below.

(3) As soon as is reasonably practicable after the report is published, the Assembly shall calculate in relation to each of those authorities what sum falls to be paid to the authority as its share of the amount specified under paragraph 11A(1)(b) above.

(4) The calculation under sub-paragraph (3) above shall be in accordance with the basis of distribution specified in the report.

(5) The Assembly may carry out the sub-paragraph (3) calculation again at any time before the end of the financial year immediately following the one to which the report relates.

(6) The power under sub-paragraph (5) above may only be exercised once and ceases to be exercisable if the Assembly publishes under paragraph 13 below a report amending the report.

(7) As soon as is reasonably practicable after making a calculation under sub-paragraph (3) or (5) above, the Assembly shall inform each receiving authority to which the report relates of the outcome, so far as relating to it.

11C (1) The National Assembly for Wales may set a deadline for the receipt of information to be taken into account by it when making a calculation under paragraph 11B(3) or (5) above.

(2) Different deadlines may be set under sub-paragraph (1) above in relation to different kinds of information.

(3) A deadline under sub-paragraph (1) above shall only have effect if the Assembly informs each receiving authority concerned of the deadline and of the information to which it relates.

(4) Notification under sub-paragraph (3) above may be given at any time before the making of the calculation to which the deadline relates, including a time before the distributable amount for the year is calculated under paragraph 9 above.

(5) When making a calculation in relation to which a deadline under sub-paragraph (1) above has effect, the Assembly shall leave information to which the deadline applies out of account if it is received after the passing of the deadline.”

(7) In paragraph 12(1) (duty to pay amounts calculated under paragraph 11(3)), after “11(3)” there is inserted “or 11B(3)”.

(8) In paragraph 12, in each of sub-paragraphs (3) and (5) (cases where recalculation shows different amount to be due)—

(a) after “11(4)” there is inserted “or 11B(5)”, and

(b) after “11(3)” there is inserted “or 11B(3)”.

(9) After paragraph 14 there is inserted—

“14A (1) This paragraph applies where—

(a) a report is made under paragraph 13 above amending a report (“the original report”) that is one of two local government finance reports that the National Assembly for Wales publishes for a particular financial year, and

(b) as respects that year the Assembly decides as mentioned in paragraph 9A(1)(b)(ii) above.

(2) As soon as is reasonably practicable after the amending report is published by the Assembly, the Assembly shall calculate in relation to each of the authorities to which the original report relates what sum falls to be paid to the authority as its share of the amount specified under paragraph 11A(1)(b) above in the original report.

(3) The calculation under sub-paragraph (2) above shall be in accordance with the amended basis of distribution.

(4) The Assembly may carry out the sub-paragraph (2) calculation again at any time before—

(a) the end of the financial year immediately following the one to which the original report relates, or

(b) if later, the end of the period of 3 months beginning with the day on which the Assembly publishes the amending report.

(5) The power under sub-paragraph (4) above may only be exercised once.

(6) Paragraphs 11B(7) and 11C above apply in relation to calculations made under sub-paragraphs (2) and (4) above as they apply in relation to calculations made under paragraph 11B(3) and (5) above.”

(10) In paragraph 15(1) (paragraph applies where calculation made under paragraph 14(1) or (2)), after “14(1) or (2)” there is inserted “or 14A(2) or (4)”.

(11) In paragraph 15(6) (meaning of “the relevant previous calculation”)—

(a) after “14(1)” (in each place) there is inserted “or 14A(2)”,

(b) after “11(3)” there is inserted “or 11B(3)”,

(c) after “11(4)” there is inserted “or 11B(5)”, and

(d) after “14(2)” (in each place) there is inserted “or 14A(4)”.