Local Government Finance Act 1987

Rates

6 Validation of past acts.

(1) For the purposes of any order made before the passing of this Act under section 2(3) of the 1984 Act any total of relevant expenditure there mentioned shall be deemed to have been estimated in compliance with the provisions of Part VI of the 1980 Act.

(2) Anything done by the Secretary of State before the passing of this Act for the purposes of Part I of the 1984 Act in relation to the financial year beginning in 1985 or that beginning in 1986 shall be deemed to have been done in compliance with the provisions of that Part.

(3) For the purposes of section 7 below and Schedule 2 to this Act—

(a) any designation of an authority under section 2 of the 1984 Act in relation to the financial year beginning in 1987, and

(b) any determination and notification under section 3(1) and (3) of that Act of a level for an authority’s total expenditure in that year,

shall, if made before the passing of this Act, be deemed to have been made in compliance with the provisions of Part I of the 1984 Act.

(4) This section shall have effect notwithstanding any decision of a court (whether before or after the passing of this Act) purporting to have a contrary effect.

7 Restrictions on rating and precepting.

(1) This section applies to authorities designated before the passing of this Act under section 2 of the 1984 Act in relation to the financial year beginning in 1987, whether actually designated by the Secretary of State or deemed by virtue of section 68(6) of the [1985 c. 51.] Local Government Act 1985 (new authorities) to have been designated.

(2) In relation to that financial year the powers and duties of such an authority (a designated authority) in respect of the making of a rate or issuing a precept for that year, as the case may be, shall have effect subject to section 8 below but not to the provisions of Part I of the 1984 Act.

(3) Any duty of the Secretary of State under Part I of the 1984 Act shall not apply in relation to that financial year.

(4) For the purposes of section 8 below the maximum limit in relation to a designated authority shall be determined in accordance with Schedule 2 to this Act.

(5) As soon as is reasonably practicable after the Rate Support Grant Report for the financial year beginning in 1987 has been laid before the House of Commons, the Secretary of State shall serve on each designated authority a notice stating—

(a) the maximum limit determined by him in relation to the authority in accordance with Schedule 2 to this Act,

(b) the amount which in accordance with that Schedule he estimates as BG in relation to the authority (a component of the maximum limit),

(c) the version of the valuation lists, and the other information relating to hereditaments and rateable values, by reference to which he calculates RV in relation to the authority (another component of the maximum limit), and

(d) the amount which in accordance with that Schedule he estimates as DBG in relation to the authority (in a case where DBG is a component of the maximum limit in relation to the authority).

8 Sanctions.

(1) If a designated authority makes a rate, whether before or after the passing of this Act but before a notice has been served on it, and the amount in the pound of the rate (exclusive of any excluded part) exceeds the maximum limit, the authority shall make a substituted rate before the expiry of the permitted period.

(2) If a designated authority issues a precept, whether before or after the passing of this Act but before a notice has been served on it, and the amount in the pound of the precept exceeds the maximum limit, the authority shall issue a substituted precept before the expiry of the permitted period.

(3) If a designated authority fails to comply with subsection (1) or (2) above the rate made or precept issued before the service of the notice shall be deemed not to have been validly made or issued.

(4) A rate made by a designated authority (under subsection (1) above or otherwise) after a notice has been served on it shall be invalid if the amount in the pound of the rate (exclusive of any excluded part) exceeds the maximum limit.

(5) A precept issued by a designated authority (under subsection (2) above or otherwise) after a notice has been served on it shall be invalid if the amount in the pound of the precept exceeds the maximum limit.

(6) A rate shall be invalid if any part of the rate is made for giving effect to a precept which is invalid under subsection (5) above.

(7) In a case where a rate (or precept) is levied otherwise than at a uniform rate in the pound this section shall have effect as if—

(a) references to the amount in the pound of the rate (or precept) were to the product of the rate (or precept) levied, and

(b) references to the maximum limit were to the product of a rate (or precept) levied at a uniform rate in the pound equal to the maximum limit.

(8) For the purposes of subsection (1) above the permitted period is the period of 6 weeks beginning with the day on which a notice is served on the authority; and for the purposes of subsection (2) above the permitted period is the period of one month beginning with the day on which a notice is served on the authority.

(9) For the purposes of this section an excluded part of a rate is any part made for giving effect to—

(a) a precept issued to the rating authority concerned by another authority referred to in section 1(3) of the 1984 Act or by the Receiver, or

(b) a levy made on the rating authority concerned under section 13 of the [1984 c. 32.] London Regional Transport Act 1984.

(10) References in this section to a notice are to a notice served under section 7(5) above.

(11) This section applies only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.