95Minimum budget for Metropolitan Police Authority
(1)This section applies where the Authority—
(a)has made calculations in relation to a financial year in accordance with sections 85 to 90 above and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992, or
(b)has made substitute calculations in relation to a financial year in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of that Act,
but it appears to the Secretary of State that the Metropolitan Police Authority, in order to restore or maintain an efficient and effective police force for its area, requires a greater component budget requirement than that previously calculated under section 85 above.
(2)Where this section applies, the Secretary of State may direct the Authority that there must be a component budget requirement for the Metropolitan Police Authority for the year which is not less than such amount as may be specified in the direction.
(3)The amount specified in a direction under subsection (2) above shall be that which the Secretary of State considers the minimum necessary in order for the Metropolitan Police Authority to restore or maintain an efficient and effective police force for its area.
(4)Where a direction is given under this section, the Authority shall make calculations in substitution in relation to that year under subsections (4) to (7) of section 85 above in relation to—
(a)the Metropolitan Police Authority alone; or
(b)the Metropolitan Police Authority and one or more other constituent bodies.
(5)If the result of the substitute calculations is such that—
(a)there is an increase in the Authority’s consolidated budget requirement for the year, or
(b)there is no such increase, but the results of calculations in substitution made in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992 would be different from the last relevant calculations in relation to the year,
the Authority shall make calculations in substitution in relation to the year in accordance with those provisions.
(6)In subsection (5) above, “the last relevant calculations” means the last calculations made by the Authority in relation to the year in accordance with—
(a)sections 85 to 90 above and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992, or
(b)sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of that Act.
(7)None of the substitute calculations shall have any effect if—
(a)the amount calculated under section 85(6) or (7) above for the Metropolitan Police Authority is not in compliance with the direction; or
(b)there is an increase in the Authority’s consolidated budget requirement for the year (as last calculated) which exceeds the minimum increase required to be made to the component budget requirement for the Metropolitan Police Authority (as last calculated for the year) to comply with the direction under subsection (2) above; or
(c)in making substitute calculations under section 88(2) or 89(3) above, the Authority fails to comply with subsection (8) below.
(8)In making substitute calculations under section 88(2) or 89(3) above, the Authority must use any amount determined in the previous calculations for item P1 or T in section 88(2) above or for item P2 or item TP2 in section 89(4) above.
(9)For the purposes of subsection (8) above, the Authority may treat any amount determined in the previous calculations for item P1 in section 88(2) above or item P2 in section 89(4) above as increased by the relevant portion of any new additional grant.
(10)For the purposes of subsection (9) above, “the relevant portion of any new additional grant” means the amount of any additional grant payable to the Authority for the year which was not taken into account by the Authority in making the previous calculations, but—
(a)in the case of item P1, reduced, as may be prescribed, by such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part; and
(b)in the case of item P2, restricted, as may be prescribed, to such sum as the Secretary of State considers represents the portion of the amount which relates to defraying the special item in whole or in part;
and “special item” has the same meaning in this subsection as in sections 88 and 89 above (see section 89(2)).
(11)In subsection (10) above, “prescribed” means specified in, or determined in accordance with, either—
(a)the report under section 85 of the [1988 c. 41.] Local Government Finance Act 1988 relating to the amount of additional grant in question, or
(b)regulations made by the Secretary of State under section 88(3)(b) above (in relation to item P1) or under section 89(5)(b) above (in relation to item P2),
as the Secretary of State may determine for the purposes of paragraph (a) or (b) of that subsection and any particular financial year or years.
(12)Subsections (7)(c) and (8) above shall not apply if the previous calculations have been quashed because of a failure to comply with the appropriate Greater London provisions in making the calculations.
(13)For the purposes of subsection (12) above, “the appropriate Greater London provisions” means—
(a)in the case of calculations required to be made in accordance with sections 85 to 90 above and sections 47 and 48 of the [1992 c. 14.] Local Government Finance Act 1992, those provisions; and
(b)in the case of calculations required to be made in accordance with sections 85, 86 and 88 to 90 above and Schedule 7 to this Act and sections 47 and 48 of that Act, those provisions.
(14)Any substitute calculations under this section shall be made in accordance with Schedule 7 to this Act.