Rate Support Grants Act 1986

11 For section 62 of the said Act of 1980 there shall be substituted—

“62 Adjustments for matching amount available for block grant.

(1) Where at any time after a Rate Support Grant Report or supplementary report for any year has been approved by the House of Commons it appears to the Secretary of State from information as to the expenditure incurred or to be incurred by local authorities during that year that the aggregate amount of block grant to which local authorities would be entitled in accordance with the report, or any previous adjustment under this section, differs from the aggregate amount available for that grant in that year he may adjust the amount payable to each authority (whether by increasing or reducing it) so as to reconcile those aggregate amounts.

(2) An adjustment under this section may be made either—

(a) so that the amount payable to an authority is adjusted in the same ratio as the aggregate amounts mentioned in subsection (1) above bear to one another ; or

(b) in accordance with principles applicable to all local authorities or to all local authorities belonging to the appropriate class and specified in the report mentioned in that subsection.”