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9(1)Section 55 of the Local Government Finance Act 1992 (limitation of council tax: special transitional provisions where local authority’s budget requirement for financial year is to be compared with notional amount rather than authority’s budget requirement for preceding financial year) is amended as follows.
(2)In subsection (1), after paragraph (c) insert “or
(d)as regards any financial year to which this paragraph applies and any authority to which grants are made under arrangements under section 1 of the Nursery Education and Grant-Maintained Schools Act 1996.”
(3)After that subsection insert—
“(1A)Subsection (1)(d) above applies to—
(a)the first financial year in which grants are made to any authority under arrangements under section 1 of the Nursery Education and Grant-Maintained Schools Act 1996,
(b)either or both of the next two financial years if, in the opinion of the Secretary of State, the basis of comparison referred to in section 54(1)(b) above would be inappropriate for the year in the case of the authority concerned because of a change in the basis of distribution (within the meaning of section 78A(2) of the 1988 Act) which is related to the making of grants under such arrangements, and
(c)any financial year in which grants are first made under such arrangements in respect of education provided for a particular description of children.”
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