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Local Government Finance Act 2012

Part 9: Pooling of authorities

87.Paragraph 34 enables the Secretary of State to designate two or more relevant authorities as a pool of authorities. Designations may not be made unless each authority covered by the designation agrees to it. A designation generally only has effect for a year if it is made before the Secretary of State gives notification under paragraph 12(2) (notification of general basis of calculation to be specified in local government finance report for the year). Once made, a designation continues to have effect unless it is revoked by the Secretary of State. The Secretary of State must revoke a designation if requested to do so by one of the authorities within the pool. A designation must include conditions about the administration of the pool, including a requirement for the appointment of a lead authority and steps that are to be taken if the designation is revoked (paragraph 35). Designations may be varied by the Secretary of State following consultation with the members of the pool.

88.Paragraph 36 provides that a pool of authorities is to be treated as a relevant authority for the purposes of Part 5 of the Schedule ( principal payments in connection with local retention of non-domestic rates). This does not prevent a local government finance report from also making provision in relation to the individual authorities within the pool. Paragraph 37 makes similar provision in respect of regulations about levy payments and safety net payments.

89.Paragraph 38 makes further provision about the effect of designation. It provides that notification requirements apply to individual authorities within a pool. As to payments and receipts, it provides that authorities within a pool are jointly and severally liable to make payments and that payments from the Secretary of State under Part 5 or Part 7 shall be made to the lead authority.

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