Local Government Act 2003 Explanatory Notes

1. Introduction

2. Summary

3. Territorial Application: Wales

4. Commentary on Sections

   1. Part 1: Capital Finance Etc and Accounts

      1. Summary

      2. Section 1: Power to borrow

      3. Sections 2, 6 and 13: Control of borrowing

      4. Section 3: Duty to determine affordable borrowing limit

      5. Section 4: Imposition of borrowing limits

      6. Section 5: Temporary borrowing

      7. Sections 7 and 8: Credit arrangements

      8. Sections 9 to 11: Capital receipts

      9. Section 12: Power to invest

      10. Section 14: Information

      11. Section 15: Guidance

      12. Section 17: External funds

      13. Section 18: Local authority companies

      14. Section 19 and Schedule 1: Application to parish and community councils

      15. Sections 21, 22 and 16: Accounting practices, “Revenue Account”, “Capital Expenditure”

      16. Section 23: ‘Local authority’

      17. Section 24: Wales

   2. Part 2: Financial Administration

      1. Summary

      2. Section 25: Budget calculations: report on robustness of estimates etc

      3. Sections 26 and 27: Minimum reserves

      4. Sections 28 and 29: Budget monitoring: general; Budget monitoring: Greater London Authority

      5. Section 30: Authorisation of agreements during the prohibition period

   3. Part 3: Grants Etc

      1. Chapter 1: Expenditure Grant

         1. Sections 31 to 33: Expenditure grant

      2. Chapter 2: Other Grants etc

         1. Sections 34 and 35: Best value grant: parishes, Best value grant: communities

         2. Section 34: Best value grant: parishes

         3. Section 35: Best value grant: Communities

         4. Section 36: Grants in connection with designation for service excellence

         5. Section 37: Emergency financial assistance to combined fire authorities

         6. Sections 38 and 39: Loans by Public Works Loan Commissioners, Payments towards local authority indebtedness

         7. Section 38: Loans by Public Works Loan Commissioners (PWLC)

         8. Section 39: Payments towards local authority indebtedness

         9. Section 40 and Schedule 2: Local government finance reports: Wales

   4. Part 4: Business Improvement Districts

      1. Introduction

      2. Section 41: Arrangements with respect to business improvement districts

      3. Section 42: Joint arrangements

      4. Section 43: Additional contributions and action

      5. Section 45: The BID levy

      6. Section 46: Liability for BID levy

      7. Section 47: BID Revenue Account

      8. Section 48: Administration of BID levy etc

      9. Section 49: BID proposals

      10. Section 50: Approval in ballot

      11. Section 51: Power of veto

      12. Section 52: Appeal against veto

      13. Section 53: Commencement of BID arrangements

      14. Section 54: Duration of BID arrangements etc

      15. Section 55: Regulations about ballots

      16. Section 56: Power to make further provision

      17. Section 57: Crown application

      18. Section 58: Wales

      19. Section 59: Interpretation

   5. Part 5: Non-Domestic Rates

      1. Section 60: Submission of proposed rating lists

      2. Section 61: Small business relief

      3. Section 62: Calculation of non-domestic rating multiplier

      4. Section 63: Rural settlement lists etc

      5. Section 64: Rate relief for community amateur sports clubs

      6. Section 65: Transitional relief

      7. Section 66: Rating of meters

      8. Section 67: Exemptions for agricultural buildings

      9. Section 68: Exemptions for places of religious worship

      10. Section 69: Removal of power to prescribe rateable values

      11. Section 70: Local retention of non-domestic rates

      12. Section 71: Adjustments for hardship relief

      13. Section 72: Provision of information

   6. Part 6: Council Tax

      1. Section 74: Exception of students from joint and several liability

      2. Sections 75 and 76: Discounts and exemptions

         1. Section 75: Discounts - special provisions for England and Wales

         2. Schedule7: Minor and Consequential amendments

            1. Paragraphs 41, 42,49 and 50: determinations to reduce discounts

         3. Section 76: Billing authority’s power to reduce amount of tax payable

         4. Schedule 7: Minor and Consequential amendments

            1. Paragraph 53(3): treatment of discretionary reductions for council tax administration purposes

      3. Sections 77 and 78: Valuation Lists and Bands

         1. Section 77: Statutory revaluation cycle

         2. Schedule 7: Minor and Consequential amendments

            1. Paragraphs 44 to 48, 52 and 53(2): amendments consequential on section 77

         3. Section 78: Power to change number of valuation bands

      4. Section 79: Transitional arrangements

      5. Sections 80 to 82: Enforcement

      6. Section 80: Amendments relating to distress

      7. Schedule 7: Minor and Consequential amendments

         1. Paragraph 54: Exercise of powers by the NAW under section 80

      8. Section 81: Charging orders: aggregation

      9. Section 82: Quashing of liability orders

      10. Section 83: Major precepting authorities: combined fire authorities

      11. Section 84: Amendment of section 67 of the Local Government Finance Act 1992

      12. Section 85: Vacant dwellings: use of council tax information

      13. Section 86: Repeal of section 31 of the Local Government Act 1999

      14. Schedule 7: Minor and Consequential amendments

          1. Paragraph 43: Completion notices

   7. Part 7: Housing Finance Etc

      1. Sections 87 and 88: Local housing strategies and statements, and Housing Revenue Account business plans

      2. Schedule 7: Minor and consequential amendments: paragraph 81

      3. Section 89: Housing Revenue Account subsidy: payment and calculation

      4. Section 90: Housing Revenue Account subsidy: negative amounts

      5. Section 91: Housing Revenue Accounts etc: adaptation of enactments

      6. Section 92: Local housing authority houses: rents

      7. Schedule 7: Minor and consequential amendments

         1. Paragraphs 31, 33 to 39 and 60

   8. Part 8: Miscellaneous and General

      1. Sections 93 to 98: Charging and Trading

         1. Introduction

         2. Section 93: Power to charge for discretionary services

         3. Section 94: Power to disapply section 93(1)

         4. Sections 95 and 96: Power to trade in function-related activities through a company; Regulation of trading powers

         5. Section 97: Power to modify enactments in connection with charging or trading

         6. Section 98: Procedure for orders under section 97

      2. Sections 99 and 100: Performance Categories

         1. Section 99: Categorisation of English local authorities by reference to performance

         2. Section 100: Exercise of powers by reference to authorities’ performance categories

      3. Sections 101 and 102: Contracting-out: staff transfer matters, including pensions

         1. Section 101: Staff transfer matters: general

         2. Section 102: Staff transfer matters: pensions

      4. Sections 103 and 104: 2004 Local Government Elections

         1. Section 103: Power to change date of local elections in England

         2. Section 104: Power to change date for elections in Wales

      5. Sections 105 and 106 (and Schedules 4 and 5): Valuation Tribunal Service

         1. Introduction

         2. Section 105: The Valuation Tribunal Service

         3. Schedule 4: The Valuation Tribunal Service

            1. Disqualification from membership of the Service

            2. Staff of the Service

            3. Committees of the Service

            4. Interests of members of the Service

            5. The Service’s finances

         4. Section 106 and Schedule 5: Transfer to Service of property, rights and liabilities

      6. Sections 107 to 111: Audit Commission

         1. Sections 107 and 108: Auditors’ public interest reports

         2. Section 107: Auditors’ public interest reports: time allowed for consideration

         3. Section 108: Auditors’ public interest reports: publicity

         4. Section 109: Registered social landlords

         5. Section 110: Financial Year

         6. Section 111: Delegation

      7. Sections 112 to 122: Other

         1. Section 112: Standards Board for England: delegation

         2. Section 113 : Standards committees etc

         3. Section 114: Paid time off for Councillors etc not to be political donations

         4. Section 115: Overview and scrutiny committees: voting rights of co-opted members

         5. Section 116: Local polls

         6. Section 117: Generally accepted accounting practice.

         7. Section 118: Appropriate sum under section 137(4) of the Local Government Act 1972 :

         8. Section 119: Use of fixed penalties for leaving litter and dog fouling offences.

         9. Section 120: Regulation of cosmetic skin piercing and skin-colouring businesses

         10. Schedule 6: Regulation of cosmetic skin piercing and skin-colouring businesses

         11. Section 121: Fire brigade establishment schemes etc

         12. Section 122: Repeal of prohibition on promotion of homosexuality

      8. General

         1. Section 128: Commencement

5. European Convention on Human Rights