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Rates Act 1984

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This is the original version (as it was originally enacted).

4Determination of maximum rate or precept

(1)As soon as practicable after the Rate Support Grant Report for any financial year has been laid before Parliament the Secretary of State shall serve on each designated authority a notice stating the maximum which he proposes to prescribe under section 1 above for the rate made or precept issued by that authority for that year.

(2)The Secretary of State shall determine that maximum by reference to—

(a)the level of expenditure determined or re-determined by him for the authority under section 3 above ;

(b)the block grant (if any) which he estimates will become payable to the authority in question; and

(c)in the case of an authority affected by a scheme under section 66 of the London Government Act 1963 (equalisation of rates), any contribution to be made by or to the authority in pursuance of the scheme ;

and in determining that maximum the Secretary of State may take into account any financial reserves available to the authority.

(3)If—

(a)the proposed maximum stated in a notice served on a designated authority under subsection (1) above is accepted by the authority within the period specified in the notice ; or

(b)a designated authority and the Secretary of State agree on a different maximum,

the power of the Secretary of State to prescribe a maximum under section 1 above in the case of that authority for the financial year in question shall be exercised by specifying in a direction in writing served on the authority a maximum equal to that stated in the notice or agreed with the authority, as the case may be.

(4)In any other case the power of the Secretary of State to prescribe a maximum under section 1 above shall be exercised by specifying by order a maximum equal to or greater than that stated in the notice served on the authority in question.

(5)The power to make an order under subsection (4) above shall be exercisable by statutory instrument and no such order shall be made unless a draft of it has been laid before and approved by a resolution of the House of Commons,

(6)An order under subsection (4) above may relate to two or more authorities.

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