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(1)On any adjustment under the immediately preceding section and on any adjustment in connection with any alteration of area under any enactment passed after the commencement of this Act except where that enactment otherwise provides, provision shall, unless the local authorities concerned otherwise agree, be made for the payment to any local authority of such sum as seems equitable in accordance with the provisions of the immediately succeeding subsection in respect of any increase of burden which will properly be thrown on the ratepayers of that authority as a consequence of any alteration of boundary.
(2)In determining the sum to be paid in pursuance of this section, regard shall be had to—
(a)the difference if any between the burden on the ratepayers which will properly be incurred by the local authority of an area in respect of which an alteration of boundary has taken place in meeting the cost of executing any of their functions and the burden on the ratepayers which would properly have been incurred by the authority in meeting such cost had no alteration of boundary taken place; but the loss of rateable area as such shall not of itself be held to be an increase of burden; and
(b)the length of time during which any increase of burden may be expected to continue.
(3)The sum payable to any local authority in respect of any increase of burden shall not exceed, or, if payable by instalments or by way of annuity, the capitalised value of the instalments or annuity shall not exceed, the average annual increase of burden multiplied by fifteen.
(4)This section shall also apply to any adjustment outstanding at the commencement of this Act consequent upon an alteration of boundary effected after the twenty-eighth day of August nineteen hundred and fourteen made (otherwise than by agreement) under section fifty or section fifty-one of the Local Government (Scotland) Act, 1889, or section forty-six of the [57 & 58 Vict. c. 58.] Local Government (Scotland) Act, 1894, whether as originally enacted or as applied by any other enactment.
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