Local Government Finance Act 1987

Rate support grant: other years

4 Validation for past and general provision for future.

(1) Anything done by the Secretary of State before the passing of this Act for the purposes of the relevant provisions in relation to any of the initial years or intermediate years shall be deemed to have been done in compliance with those provisions.

(2) In subsection (1) above “the relevant provisions” means Part VI of the 1980 Act, section 8 of and Schedule 2 to the [1982 c. 32.] Local Government Finance Act 1982, sections 2 and 3 of the [1986 c. 40.] Education Act 1986 and section 2 of the [1986 c. 54.] Rate Support Grants Act 1986.

(3) Any basic block grant calculation made after the passing of this Act in relation to any of the initial years shall be made by reference to the contents of, and the information taken into account by the Secretary of State in making, the last supplementary report made for the year concerned before the passing of this Act; and this subsection shall be applied separately in England and Wales.

(4) For the purposes of subsection (3) above a basic block grant calculation is a calculation made for the purposes of section 66(2) of the 1980 Act of an amount of block grant payable, without taking account of section 63 of and Schedule 10 to that Act (education adjustments).

(5) In relation to any intermediate year—

(a) after the passing of this Act relevant and total expenditure of a local authority shall be calculated for the purposes of Part VI of the 1980 Act in accordance with section 5 below, and

(b) anything done (including an adjustment made) after the passing of this Act for those purposes shall, to the extent that it involves relevant or total expenditure of a local authority, be done by reference to expenditure so calculated.

(6) Subsection (1) above shall have effect notwithstanding any decision of a court (whether before or after the passing of this Act) purporting to have a contrary effect.

5 Further provision as to future.

(1) Section 3 above shall apply in relation to intermediate years as it applies in relation to future years, and in its application by virtue of this section subsections (2) and (3) below shall apply.

(2) In subsections (1), (7) and (9) the references to a future year shall be read as references to an intermediate year.

(3) In subsections (2), (3), (7) and (8) the references to items debited (or credited) to the authority’s rate fund revenue account for the year shall be read as references to items which would by virtue of sections 1 and 2 above have been debited (or credited) to the account the authority would have been required to keep under those sections for the year if they had had effect in relation to the year.

(4) In the application (by virtue of subsection (3) above) of sections 1 and 2 above in relation to an intermediate year, section 2 shall have effect as if for subsection (3) there were substituted—

“(3) The practices are the proper practices applicable to the account (by whatever name known) kept by the local authority concerned for the year concerned for the entry of items of the same kind as those falling to be entered in rate fund revenue accounts; and if those practices allow for more than one course of action the course actually taken shall be deemed to have been taken.”

(5) In the application (by virtue of subsection (3) above) of sections 1 and 2 above in relation to an intermediate year beginning in 1983, 1984 or 1985, section 1 shall have effect as if for “a joint authority” in subsection (1)(c) there were substituted “the Greater London Council.”

(6) This section shall have effect as regards anything falling to be done after (but not as regards anything done before) the passing of this Act.