Local Government Act 1958

Sections 1, 2, 66.

FIRST SCHEDULE General Grants

PART I Relevant Expenditure

Subject to the provisions of Part II of this Schedule, relevant expenditure for the purposes of this Act is expenditure falling within any of the following paragraphs.

1 Expenditure incurred by local education authorities as such.

2 Expenditure incurred by or on behalf of local health authorities within the meaning of the National Health Service Act, 1946, in respect of the carrying out of the functions of such authorities, whether under that Act or any other enactment, including the functions of such authorities as local supervising authorities under the Midwives Act, 1951.

3 Expenditure on fire services.

4 Expenditure incurred in the carrying out of any of the functions specified in subsection (1) of section thirty-nine of the Children Act, 1948.

5 (1) Expenditure incurred in connection with—

(a) the acquisition of land under Part I of the Town and Country Planning Act, 1944, under section thirty-eight or forty of the Town and Country Planning Act, 1947, or in pursuance of section nineteen of the latter Act;

(b) the acquisition under section forty-one of the said Act of 1947 of any building as respects which, immediately before the acquisition thereof, a building preservation order was in force or could have been made, the acquisition of any building by virtue of section nineteen of the said Act as applied by a building preservation order, or the acquisition under the said section forty-one of any land comprising or contiguous or adjacent to any such building ;

(c) the acquisition under any enactment not hereinbefore referred to of land for use as a public open space ;

(d) the payment of compensation under Part III or Part VIII of the said Act of 1947 ;

(e) the taking of any action under sections twenty-four to twenty-six of that Act, or the taking of action under the said section twenty-four as applied by any of the provisions of Part III of that Act;

(f) the carrying out of any work of restoring, repairing or adapting any buildings in the case of a building in respect of which a building preservation order was in force or could have been made immediately before its acquisition.

(2) References in this paragraph to expenditure incurred in connection with the acquisition of land include references to expenditure incurred in connection with the clearing and preliminary development of land.

(3) Regulations made by the Minister with the consent of the Treasury may provide—

(a) for treating the appropriation of land, in such cases and subject to such conditions as may be prescribed by or under the regulations, as equivalent for the purposes of this paragraph to the acquisition of land at such cost as may be so prescribed;

(b) for determining how expenditure is to be ascertained for the purposes of this paragraph, whether by reference to expenditure actually incurred or by reference to annual costs incurred or treated as incurred in respect of the borrowing of money, or by reference to the excess of such expenditure or costs over receipts or the annual value of receipts, or partly in one way and partly in another;

(c) for the inclusion, in the expenditure incurred in the acquisition of land, of the whole or a part of any sum paid in connection with any restriction imposed on the development or use of the land by or under any enactment (whether by way of compensation or by way of contribution towards damage or expenses incurred in consequence of the restriction).

Any regulations under this sub-paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.

6 Expenditure incurred by local authorities within the meaning of section five of the Road Traffic Act, 1956, in the making and carrying out of arrangements for promoting road safety by disseminating information or advice relating to the use of roads, or for giving practical training to road users or any class or description of road users (including the making of contributions towards the cost of arrangements for the like purposes).

7 Expenditure incurred in the provision and maintenance of vehicles or equipment for use by police forces in connection with the enforcement of the law relating to road traffic, so however that nothing in this Act shall affect the payment of the grants authorised by section three of the Miscellaneous Financial Provisions Act, 1950, in respect of expenses incurred for the purposes of police forces.

8 Expenditure incurred in the defraying of registration expenses within the meaning of the Representation of the People Act, 1949 (including any payments made by registration officers as part of their registration expenses).

9 Expenditure incurred by local authorities within the meaning of the Physical Training and Recreation Act, 1937, in the provision, or in aiding the provision, of facilities for physical training and recreation, including the provision and equipment of gymnasiums, playing fields, swimming baths, bathing places, holiday camps and camping sites, and other buildings and premises for physical training and recreation, and in respect of the training and supply of teachers and leaders.

10 Expenditure incurred in the provision of such accommodation as it is the duty of local authorities to provide under subsection (1) of section twenty-one of the National Assistance Act, 1948, or in the making of payments or contributions under section twenty-six of that Act to voluntary organisations or incurred in respect of arrangements under section twenty-nine of that Act (which relates to welfare arrangements for handicapped persons).

11 Expenditure incurred in the making and carrying out of arrangements under the School Crossing Patrols Act, 1953.

PART II Exclusions from Relevant Expenditure

1 Paragraph 1 of Part I of this Schedule does not include expenditure incurred—

(a) in connection with the provision of milk for pupils in attendance at schools maintained by local education authorities or for full-time students under eighteen years in attendance at establishments for further education maintained or assisted by such authorities or in receipt of grant from the Minister of Education, or the provision of milk in pursuance of arrangements made under section seventy-eight of the Education Act, 1944 ;

(b) in connection with the provision of main mid-day meals for day pupils in attendance at schools maintained by such authorities or the provision of such meals in pursuance of arrangements made under the said section seventy-eight or in pursuance of section eighty-one of that Act;

(c) in the removal of works constructed for the purposes of air-raid precautions or of temporary works constructed for defence purposes by or on behalf of the Secretary of State, the Admiralty or the Minister of Home Security in pursuance of Regulation fifty or fifty-one of the Defence (General) Regulations, 1939, or by agreement', or in the reinstatement of premises so far as it is rendered necessary by any such removal; or

(d) in pursuance of a scheme under section ten of the Employment and Training Act, 1948.

2 Paragraph 3 of Part I of this Schedule does not include expenditure incurred in the performance of functions imposed under section two of the Civil Defence Act, 1948.

3 Paragraph 4 of Part I of this Schedule does not include expenses incurred in the management of approved schools or in respect of children sent to approved schools or in respect of remand homes.

4 (1) Sub-paragraph (1) (a) of paragraph 5 of Part I of this Schedule does hot include expenditure incurred in connection with the acquisition of land for the redevelopment as a whole of areas of extensive war damage, or for the relocation of population or industry, or the replacement of open space, in the course of such redevelopment.

(2) Sub-paragraph (1) (d) of the said paragraph 5 does not include expenditure incurred in connection with the payment of compensation in respect of land acquired by virtue of section nineteen of the Town and Country Planning Act, 1947.

(3) Sub-paragraphs (1) (d) and (e) of the said paragraph 5 do not include the payment of compensation in respect of land of the National Coal Board to which the Fifth Schedule to the said Act of 1947 applies by virtue of regulations under section ninety of that Act, or in connection with the taking of any action under sections twenty-four to twenty-six of that Act in respect of such land of the National Coal Board.

(4) The said sub-paragraphs (1) (d) and (e) do not include expenditure incurred in connection with the payment of compensation under section twenty-six of the said Act of 1947, or the taking of action under that section, in respect of land in a National Park or area of outstanding natural beauty (within the meaning of the National Parks and Access to the Countryside Act, 1949) or any such expenditure as, under subsection (7) of section ninety-seven of the said Act of 1949, is to be treated for the purposes of that section as expenditure under the said section twenty-six and do not include expenditure in connection with the payment of compensation under tree-preservation orders under section twenty-eight of the said Act of 1947 in respect of such land as aforesaid.

(5) The said paragraph 5 does not include expenditure incurred in connection with the acquisition of any building excepted by direction of the Minister as being a building of outstanding historical or architectural interest, or the carrying out of any work of restoration, repair, maintenance or adaptation on or in the case of such a building.

(6) Sub-paragraphs (2) and (3) of the said paragraph 5 shall apply in relation to this paragraph as they apply to relation to that paragraph.

5 Part I of this Schedule does not include expenditure of any of the kinds specified in subsection (2) of section two of the Town Development Act, 1952 (which empowers the Minister to make contributions to councils of receiving districts in respect of certain expenditure).

PART III Amount of General Grants

1 The basic grant shall be a grant of an amount equal to the aggregate of—

(a) an amount arrived at by multiplying a prescribed sum by the estimated population of the area of the authority, and

(b) an amount arrived at by multiplying a prescribed sum by the estimated number of children in that population under fifteen years of age.

2 In the case of every recipient authority, a supplementary grant shall be payable of an amount arrived at by multiplying a prescribed sum by the estimated number of persons under five years of age in the area of the authority.

3 In the case of every recipient authority, a supplementary grant shall be payable of an amount arrived at by multiplying a prescribed sum by the estimated number of persons over sixty-five years of age in the area of the authority.

4 (1) A supplementary grant shall be payable if the estimated ratio which the aggregate number of pupils on the registers of schools maintained or assisted by the local education authority, of pupils at other schools the fees for whose education are paid by that authority (such adjustment being made, in the case of pupils in schools in receipt of grant from the Minister of Education or any description of such schools, as may be prescribed), and of children in attendance at occupation centres provided for the purpose of paragraph (cc) of section thirty of the Mental Deficiency Act, 1913 bears to the population of the area of the authority exceeds a prescribed ratio, and the amount of the grant shall be a prescribed sum multiplied by the excess and by the estimated population of the area of the authority.

(2) For the purposes of this paragraph—

(a) children belonging to the area of one local education authority who are pupils on the register of a school maintained or assisted by the local education authority for another area shall, if it is so prescribed, be treated as if the school were maintained or assisted by the authority for the first-mentioned area and not by the authority for the other area;

(b) children belonging to the area of one local health authority who are in attendance at occupation centres provided by the local health authority for another area shall, if it is so prescribed, be treated as if the centre were provided by the authority for the first-mentioned area and not by the authority for the other area.

5 A supplementary grant shall be payable if the estimated number of persons per acre in the area of the authority exceeds a prescribed number, and the amount of the grant shall be the percentage of the basic grant arrived at by multiplying the excess by a prescribed percentage.

6 A supplementary grant shall be payable if the ratio of the road-mileage of the area of the authority to the estimated population of the area exceeds a prescribed ratio, and the amount of the grant shall be a proportion of the basic grant arrived at by applying to the amount of the basic grant a prescribed percentage multiplied by the ratio of the road-mileage to the estimated population of the area, so however that the supplementary grant shall not exceed a prescribed proportion of the basic grant.

7 A supplementary grant shall be payable if the estimated population of the area of the authority has declined over a prescribed period, and the percentage decline over that period exceeds a prescribed percentage, and the amount of the grant shall be an amount equal to the percentage of the basic grant arrived at by multiplying the excess by a prescribed fraction or number.

8 (1) A supplementary grant shall be payable if the area of the authority or a part of it lies within the metropolitan district, and the amount of the grant shall be a prescribed percentage of the basic grant, being such percentage as appears to the Minister appropriate having regard to the higher level of prices, costs and remuneration in and around the area.

(2) Different percentages may be prescribed for the purposes of this paragraph in relation to authorities whose area lies wholly within the metropolitan district and authorities whose area lies partly within the district and partly outside it.

(3) In this paragraph " metropolitan district" means the administrative county of London together with the remainder of the Metropolitan Police District.

9 A general grant order may prescribe the manner in which, and date as at which, population or the number of persons of any description is to be estimated for any of the purposes of this Schedule.

PART IV Adjustments of General Grants for pooling, etc., arrangements

Pooling of certain Expenditure of Education and Health Authorities

1 (1) In respect of expenditure to which this paragraph applies, general grants shall be subject to adjustment in accordance with the following provisions of this paragraph.

(2) The appropriate Minister may by regulations, subject to annulment in pursuance of a resolution of either House of Parliament, provide for ascertaining the aggregate of the expenditure to which this paragraph applies of all recipient authorities, for apportioning the aggregate among the authorities, and for ascertaining the amount by which the general grant to each authority ought to be increased or decreased.

(3) The appropriate Minister shall, in accordance with regulations under this paragraph, certify to the Minister, at such times as may be provided by the regulations,—

(a) the estimated amount of the increases and decreases of general grant which ought to be made for any year,

(b) the actual amount of those increases and decreases,

and the Minister shall in paying general grants for any year adjust the amount of the grants in accordance with the certified estimated amounts and shall in paying general grants for the earliest practicable subsequent year make any adjustment necessary to offset differences between the estimated and actual amounts certified.

(4) This paragraph applies to expenditure incurred—

(a) in establishing, maintaining, or assisting colleges or other institutions for the training of teachers or in providing or assisting the provision of other facilities specified in directions under section sixty-two of the Education Act, 1944,

(b) in making payments, in such cases as may be prescribed by regulations under this paragraph, to or in respect of persons taking teachers' training or further training courses,

(c) in the provision, or in assisting the provision, of such facilities for further education of an advanced character as may be specified by or under regulations under this paragraph,

(d) in the making of provision for primary, secondary or further education of pupils not belonging to the area of any local education authority,

(e) in the training of persons to become health visitors or midwives or in respect of persons who are being so trained.

Adjustment of aggregate of general grants

2 The aggregate amount prescribed under section one of this Act for any year shall be reduced by—

(a) one-half of the expenditure incurred in that year under section twenty-three of the Fire Services Act, 1947, on the central training institution;

(b) three-quarters of the expenditure so incurred on local training centres ;

(c) such proportion not exceeding one-half as the Secretary of State may with the consent of the Treasury determine of the expenditure incurred by the Secretary of State in that year under sections forty-five and forty-six of the Children Act, 1948.