Education Act 1986

2 Recovery of negative pooling adjustments

(1) In this section, "shortfall year", in relation to an authority, means any year in which the amount of block grant payable to the authority for that year is less than the amount, or aggregate amount, by which the block grant so payable to them falls to be decreased in accordance with the pooling provisions ; and the difference between the amount of block grant so payable to them and the amount of the decrease required is referred to as the authority's pooling deficit for that year.

(2) Where, in consequence of any estimate or calculation made by him for the purposes of the pooling provisions or section 66 of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (estimates and calculations of the amount of block grant payable to an authority for any year), it appears to the Secretary of State that any year is, or is likely to be, a shortfall year in relation to an authority, he shall calculate their pooling deficit for that year on the basis of the best information then available to him and notify the authority in writing accordingly.

(3) Where, in consequence of any estimate or calculation made by him for the purposes of those provisions or that section, it appears to the Secretary of State that any calculation he has made for the purposes of this section is no longer accurate, he shall recalculate the pooling deficit of the authority concerned on the basis of the best information then available to him and notify them in writing accordingly or, if it appears to him, on the basis of that information, that the year in question is not, or is not now likely to be, a shortfall year in relation to that authority, he shall give them written notice of that fact.

(4) Where any authority are notified under this section that a year is a shortfall year in relation to them, they shall be liable to pay to the Secretary of State an amount equal to their pooling deficit for that year as so notified to them from time to time.

(5) The Secretary of State may, for the purpose of recovering any amount due to him from an authority under this section—

(a) require them to pay the whole or any part of the amount to him at such time or times as he thinks fit; and

(b) at such time or times as he thinks fit deduct the whole or any part of the amount from—

(i) the domestic rate relief grant payable to them for the year to which the liability relates or any subsequent year; or

(ii) the block grant payable to them for any subsequent year.

(6) Where it appears to the Secretary of State from any recalculation under this section that the year in question is not, or is not now likely to be, a shortfall year in relation to the authority concerned, he shall repay to them any sums already recovered in respect of their pooling deficit for that year.

(7) Where it appears to the Secretary of State from any such recalculation that an authority's pooling deficit is, or is likely to be, less than the amount which he has previously notified to them as their deficit for the year in question, he shall repay to the authority the amount, if any, by which the sums recovered in respect of their pooling deficit for that year exceed his latest calculation of that deficit and may also repay to them such other sums so recovered as he thinks expedient.

(8) Any calculation made for the purpose of determining whether any year is a shortfall year in relation to an authority shall take account of any adjustment which falls to be made under section 62 (adjustment of block grant for the purpose of balancing payments with the amount available for grant in any year) or 63A (adjustment of block grant for rates equalisation contribution) of the Act of 1980.