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Local Government Act 1958

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5Rate-deficiency Grants

(1)The provisions of Part I of the Local Government Act, 1948 (hereinafter referred to as "the Act of 1948") relating to grants under section two of that Act (hereinafter referred to as " Rate-deficiency Grants") shall as respects the year 1959-60 and subsequent years be amended in accordance with the following provisions of this section.

(2)The local authorities to which Rate-deficiency Grants may become payable shall include county district councils, metropolitan borough councils, and the Common Council of the City of London, as well as county and county borough councils, and section nine of the Act of 1948 (which provides for capitation payments by county councils to local authorities in the county) shall not have effect.

(3)The condition for the payment of a Rate-deficiency Grant to a local authority for any year shall be that the product of a rate of one penny in the pound for the area of the authority for that year is less than the standard penny rate product for the area, and the amount of the grant for any year, subject to the following section, shall be the amount which bears to the expenditure of the authority for that year the same proportion as the difference between the said rate products bears to the standard penny rate product for the area for that year.

(4)For the purposes of this section the standard penny rate product for an area is the sum which bears to the product of a rate of one penny in the pound for the year in question for the whole of England and Wales the same proportion as the population of the area bears to the population of England and Wales:

Provided that in ascertaining the standard penny rate product for a county or county borough the population of any county in the case of which the ratio of the population to the road-mileage of the county is less than seventy shall be taken to be increased by two-fifths of the additional population needed in order that the population divided by the road-mileage should be seventy.

(5)For the purposes of this section the expenditure of a county council shall be taken to be so much of the total expenditure of the council for the year in question for general county purposes as would have to be met out of rates levied within the county if no Rate-deficiency Grants were payable.

(6)For the purposes of this section the expenditure of an authority, not being a county council, shall be taken to be so much of the total expenditure of the authority for the year in question as would have to be met out of rates levied within the area of the authority if no Rate-deficiency Grants and, in the -case of a local authority within the administrative county of London, no payments under section ten of the Act of 1948 were payable, excluding the cost of the collection of rates, ascertained in the case of county boroughs in accordance with rules made by the Minister for the purposes of this Part of this Act and in the case of a county district or metropolitan borough or the Common Council of the City of London in accordance with the respective rules made under section nine of the Rating and Valuation Act, 1925:

Provided that any expenditure in pursuance of section twenty-five of the Land Drainage Act, 1930 (which enables urban rating authorities to pay to drainage boards the aggregate amount of the drainage rate for any part of their area within a drainage district, and to recover the sum paid out of the proceeds of an additional item of the general rate) shall be disregarded for the purposes of this section.

(7)For the purposes of this section—

(a)sums payable by an authority by virtue of a precept issued by a county council, in so far as payable in respect of expenditure of the county council for general county purposes, and

(b)sums payable by an authority by virtue of subsection (2) of section three of this Act in respect of the amount of any reduction in general grant recoverable from the authority,

shall not be treated as expenditure of the authority paying those sums.

(8)For the purposes of this section the amount of expenditure of an authority falling to be met out of rates shall be ascertained without regard to the provisions of section three of this Act or to any reduction of grant made thereunder.

(9)In accordance with the foregoing provisions of this section the Act of 1948 shall have effect, as respects the year 1959-60 and subsequent years, subject to the following amendments, that is to say:—

(a)in section two, in subsection (1), for the words " 1948-1949" there shall be substituted the words

1959-60

and for the words from "the rateable value for a county " to " this Act" there shall be substituted the words

the product of a rate of one penny in the pound for the area of a local authority is less than the standard penny rate product (as defined by the Local Government Act, 1958) for that area,

for the words from " the council of the county " to the end of the subsection there shall be substituted the words

the local authority a grant of such amount as is provided by sections five to seven of that Act, and subsection (2) of that section shall not have effect;

(b)for the words " Exchequer Equalisation Grants" or " Exchequer Equalisation Grant" wherever they occur there shall be substituted the words

Rate-deficiency Grantsor, as the case may be, " Rate-deficiency Grant";

(c)sections three and four shall not have effect;

(d)in section one hundred and forty-four, in subsection (4), after the words " 1925 " there shall be inserted the words

or, if the area is a county borough, as ascertained in accordance with rules made by the Minister for the purposes of Part I of the Local Government Act, 1958.

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