PART 2Establishment of a combined authority for Cambridgeshire and Peterborough

Funding6

1

The constituent councils must meet any reasonably incurred costs of the Combined Authority, other than the costs mentioned in paragraph (2), to the extent that the Combined Authority has not decided to meet these costs from other resources available to the Combined Authority.

2

Subject to paragraph (4), the constituent councils must meet the costs of the expenditure reasonably attributable to the exercise of the function specified in article 12(1), to the extent that the Mayor has not decided to meet these costs from other resources available to the Combined Authority.

3

Any amount payable by each of the constituent councils to ensure that the costs of the Combined Authority referred to in paragraphs (1) and (2) are met is to be determined by apportioning such costs between the constituent councils in such proportions as they may agree or, in default of such agreement, in equal proportions.

4

In relation to the expenditure mentioned in paragraph (2)—

a

to the extent to which such expenditure is met by amounts payable under arrangements made under paragraph (3)—

i

the Mayor must agree with the Combined Authority the total expenditure mentioned in paragraph (2) in advance of incurring this expenditure; and

ii

in the absence of the agreement specified in paragraph (i), no such expenditure may be incurred; and

b

any precept issued in relation to such expenditure under section 40 of the Local Government Finance Act 1992 (issue of precepts by major precepting authorities)11 is to be disregarded in any calculation of the costs of that expenditure.