Local Government Act 1948

5 Exchequer Transitional Grants for first five years.

(1) The Minister shall estimate in relation to each county and county borough in England and Wales the sums specified in subsections (2) and (3) of this section, being, in every case, sums estimated for the year 1947-48.

(2) The Minister shall first estimate—

(a) the aggregate of all Exchequer Grants payable under the Local Government Acts, 1929 to 1946, to the council of the county or county borough or, in the case of a county, to any other local authority in the county, less any contributions payable by the council of the county or county borough under section three of the [1 Edw. 8. & 1 Geo. 6. c. 22.] Local Government (Financial Provisions) Act, 1937, section sixteen of the [3 & 4 Geo. 6. c. 13.] Old Age and Widows' Pensions Act, 1940, or section three of the [9 & 10 Geo. 6. c. 24.] Local Government (Financial Provisions) Act, 1946 ;

(b) the aggregate of the grants payable to the local education authority for the county or county borough by virtue of regulations under section one hundred or section one hundred and one of the [7 & 8 Geo. 6. c. 31.] Education Act, 1944, or, where a joint education board has been constituted for the county or county borough, of the proper proportion of any such grants payable to that board ; and

(c) the product of a rate of sixpence in the pound for the county or county borough.

(3) The Minister shall then estimate—

(a) the aggregate of so much of the expenditure incurred by the council of the county or county borough or, in the case of a county, by any other local authority in the county, in—

(i) providing services which it will be the duty of the Minister to provide under Part II of the [9 & 10 Geo. 6. c. 81.] National Health Service Act, 1946 ; and

(ii) performing any functions falling to be discontinued by virtue of any Act of the present Session terminating the existing poor law,

as would have had to be met out of rates levied in the county or county borough if no Exchequer Grants under the Local Government Acts, 1929 to 1946, and no contributions under section three of the Local Government (Financial Provisions) Act, ,1937, section sixteen of the Old Age and Widows' Pensions Act, 1940, or section three of the Local Government (Financial Provisions) Act, 1946, had been payable ;

(b) the sum which would have been the aggregate mentioned in paragraph (b) of subsection (2) of this section if for the regulations under the enactments mentioned in that paragraph there had been substituted the provisions of such regulations made thereunder as determined the grants payable for the year 1948-49 ;

(c) the Exchequer Equalisation Grant, if any, which would have been payable to the council of the county or county borough if—

(i) this Part of this Act had applied to the year 1947-48 as it applies to the year 1947-48 and the third fixed grant period had been terminated thereby at the end of March nineteen hundred and forty-seven ; and

(ii) the sum estimated under paragraph (b) of this subsection had been payable under section one hundred and section: one hundred and one of-the Education Act, 1944, in lieu of the sums mentioned in paragraph (b) of subsection (2) of this section ; and

(iii) the first day of April, nineteen hundred and forty-seven had been both the appointed day for the purposes of Part II of the National Health Service Act, 1946, and the day' appointed for the discontinuance of the functions falling to be discontinued by virtue of any Act of the present Session terminating the existing poor law, and the expenditure of the council of the county or county borough and, in the case of a county, of all other local authorities in the county, had been diminished accordingly.

Where, by virtue of a precept or other instrument, not being a precept or instrument issued by a county council, any sum falls to be paid by a local authority to any other authority in respect of the expenditure of that other authority in providing any services or performing any functions, the amount payable shall be treated for the purposes of this subsection as expenditure of the first-mentioned authority incurred by them in providing those services or performing those functions.

(4) If for any county or county borough the total of the sums estimated by the Minister under subsection (2) of this section exceeds the total of the sums so estimated under subsection (3) thereof, there shall be payable out of moneys provided by Parliament to the council of the county or county borough grants for the year 1948-49 and each of the four following years.

(5) The amount of the grant for the year 1948-49 shall be the amount of the said excess and the amounts of the grants for the four following years shall be respectively four-fifths, three-fifths, two-fifths and one-fifth of the amount of the said excess.

(6) Grants under this section are in the subsequent provisions of this Part of this Act referred to as " Exchequer Transitional Grants ".