Local Government Finance Act 1987

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.