Local Government Finance Act 1987

Section 7.

SCHEDULE 2 Rates: Maximum Limit

1 (1) The maximum limit in relation to a designated authority shall be determined by applying the appropriate formula (found in accordance with paragraph 6 below).

(2) The maximum limit in relation to a designated authority shall be expressed in pence; and parts of pence shall be calculated to two decimal places only, after adding one hundredth where (apart from this sub-paragraph) there would be not less than one thousandth.

2 (1) This paragraph applies for the purposes of paragraph 6 below.

(2) EL is the level for the authority’s total expenditure in the relevant financial year which before the passing of this Act was determined and notified to the authority under section 3(1) and (3) of the 1984 Act.

(3) BG is the aggregate of the amount (if any) of block grant which the Secretary of State estimates will be payable to the authority for the relevant financial year, where the estimate—

(a) is made by reference to the contents of, and the information taken into account by him in making, the relevant Report, and

(b) is made without taking into account the effect (if any) of sections 62 and 63 of the 1980 Act (adjustments).

(4) E is the contribution (if any) payable to the authority in respect of the relevant financial year under any scheme under section 66 of the [1963 c. 33.] London Government Act 1963 (equalisation of rates).

(5) RV is the aggregate of the rateable values of the hereditaments in the area of the authority; and for this purpose the rateable value of a hereditament is—

(a) in the case of a hereditament for which a method of ascertaining its rateable value for the purposes of Part VI of the 1980 Act is provided in the relevant Report, the value so ascertained, and

(b) in any other case, the rateable value ascribed to the hereditament in the valuation lists on 1st April 1986,ignoring any changes in the valuation lists, and any other information relating to hereditaments and rateable values, not notified to the Secretary of State before 20th December 1986.

(6) T is the amount (if any) determined by applying the formula—

(7) GRE is the amount shown as grant-related expenditure in relation to the authority in the relevant Report.

(8) R is the amount determined by applying the formula—

3 (1) This paragraph applies for the purposes of paragraph 2(6) above.

(2) A is the amount (if any) which before 20th December 1986 the authority submitted under section 65 of the 1980 Act (information) as the amount the authority estimates as its expenditure on education for the financial year beginning in 1986 (taking, if more than one such amount was submitted before that date, the latest to be so submitted).

(3) B is the amount shown as grant-related expenditure in relation to the authority in the Rate Support Grant Report for England for the financial year beginning in 1986.

(4) M is the figure shown as the multiplier in relation to the authority in the relevant Report.

(5) For the purposes of sub-paragraph (2) above any amount submitted by the authority as an amount it estimates as its expenditure by way of debt charges, or by way of provision for pay and price changes, or on school meals and milk, shall be ignored.

4 (1) For the purposes of paragraph 2(8) above DBG is the aggregate of the amount (if any) of block grant which the Secretary of State estimates will be payable to the authority for the relevant financial year, where the estimate—

(a) is made on the assumptions that the authority’s total expenditure in relation to the relevant financial year is equal to GRE × 109, and that the gross rateable value of its area is equal to RV,

(b) is made by reference to the contents of the relevant Report, and

(c) is made without taking into account the effect (if any) of sections 62 and 63 of the 1980 Act (adjustments).

(2) For the purposes of paragraph 2(8) above and sub-paragraph (1) above EL, BG, RV and GRE have the same meanings as in paragraph 6 below.

5 In this Schedule “the relevant financial year” means the financial year beginning in 1987 and “the relevant Report” means the Rate Support Grant Report for England for that financial year.

6 (1) In the case of an authority actually designated by the Secretary of State (as opposed to one deemed to have been designated) the appropriate formula is, if the authority was also designated under section 2 of the 1984 Act in relation to the financial year beginning in 1986—

(2) In the case of an authority actually designated by the Secretary of State (as opposed to one deemed to have been designated) the appropriate formula is, if the authority was not also designated under section 2 of the 1984 Act in relation to the financial year beginning in 1986 and if in the case of the authority GRE × 109 does not exceed EL × 102—

(3) In the case of an authority actually designated by the Secretary of State (as opposed to one deemed to have been designated) the appropriate formula is, if the authority was not also designated under section 2 of the 1984 Act in relation to the financial year beginning in 1986 and if in the case of the authority GRE × 109 exceeds EL × 102—

(4) In the case of a metropolitan county police authority or the Northumbria Police Authority the appropriate formula is—

(5) In the case of a metropolitan county fire and civil defence authority or the London Fire and Civil Defence Authority the appropriate formula is—

(6) In the case of a metropolitan county passenger transport authority the appropriate formula is—

(7) In the case of the Inner London Education Authority the appropriate formula is—