14Reduction of rate support grant where local authority's estimated expenditure excessive and unreasonable
In section 5 of the [1966 c. 51.] 1966 Act (which among other things provides that an element of rate support grant payable to a local authority may be reduced where the Secretary of State is satisfied that the expenditure of that authority has been excessive and unreasonable)—
(a)in subsection (1)—
(i)after paragraph (b) there shall be inserted the following words— “; or
(c)subject to subsection (1A)(b) below, that in respect of any local authority the total estimated expenses mentioned in section 108(2) of the [1973 c. 65.] Local Government (Scotland) Act 1973 are excessive and unreasonable, regard being had to the financial and other relevant circumstances of the area of the authority ;”;
(ii)after the word " expenditure " where it occurs for the second time there shall be inserted the words " or estimated expenses "; and
(iii)after the words " a constituent authority of the joint board " there shall be inserted the words " , as the case may be "; and
(b)after subsection (1) there shall be inserted the following subsection—
“(1A)In determining, for the purposes of paragraph (c) of subsection (1) above, whether, in relation to any year, total estimated expenses of a local authority are excessive and unreasonable the Secretary of State—
(a)may (in addition to the matters to which in terms of that paragraph regard must be had) have regard—
(i)to expenditure or estimated expenses, in that or any preceding year, of other local authorities which the Secretary of State is satisfied are closely comparable (or as closely comparable as is practicable) with the local authority concerned ;
(ii)to general economic conditions; and
(iii)to such other financial, economic, demographic, geographical and like criteria as he considers appropriate; and
(b)may leave out of account such categories of estimated expenses as he thinks fit.”.