Local Government Act 1966

4 Reduction of grants in case of default.

(1) If in the case of any local authority or joint board the appropriate Minister—

(a) is satisfied that the authority or board have failed to achieve or maintain a reasonable standard in the discharge of any of their functions, regard being had to the standards maintained by other authorities and boards; and

(b) is of opinion that by reason of the failure a reduction should be made in the amount of any elements of rate support grant payable to the local authority or a constituent authority of the joint board,

he may, after affording to the local or constituent authority in question an opportunity of making representations, make and cause to be laid before Parliament a report stating the amount of and the reasons for the proposed reduction and setting out any representations made by the authority with respect to the proposed reduction; and if the report is approved by a resolution of the Commons House of Parliament the Minister may reduce the elements of the grant accordingly.

(2) The appropriate Minister may make regulations for prescribing standards and general requirements in relation to any function of a local authority ; and in determining for the purposes of subsection (1) of this section whether there has been such a failure as is there mentioned, regard shall be had to any such regulations and any other standards or requirements imposed by or under any enactment.

(3) Any regulations in force immediately before the passing of this Act under subsection (4) of section 3 of the [1958 c. 55.] Local Government Act 1958 (which authorises the making of regulations, in connection with general grants, for purposes similar to those mentioned in subsection (2) of this section) shall, without prejudice to their operation for the purposes of that Act, have effect for the purposes of this section as if made under subsection (2) of this section.

(4) Subsection (1) of section 99 of the [1944 c. 31.] Education Act 1944 (which makes provision for dealing with failures by local education authorities and certain other bodies to perform duties imposed on them by that Act) shall apply to any failure to discharge a duty imposed by regulations under subsection (2) of this section as it applies to a failure to discharge a duty imposed by that Act.