Local Government Act 1985

Section 91.

SCHEDULE 15 Section 91: Supplementary Provisions

PART I Relevant Assistance

1 (1) In section 91 of this Act (" the principal section ") " relevant assistance" means assistance under any such enactment as is mentioned in sub-paragraph (2) below and consisting of a payment to or for the benefit of a local authority or—

(a) the carrying out for a local authority of any works ;

(b) the supply to a local authority of any goods ;

(c) the provision for a local authority of administrative, professional or technical services; or

(d) the hiring to a local authority, or gratuitously making available to a local authority the use of, any vehicle, plant or apparatus of the Greater London Council or the metropolitan county council, as the case may be.

(2) The enactments referred to in sub-paragraph (1) above are—

(a) sections 101, 113(1) and 136 of the principal Act;

(b) section 5(1) and (3) of the [1963 c. 33.] London Government Act 1963 ;

(c) sections 7(1) and (6), 8, 273, 274 and 275 of the [1980 c. 66.] Highways Act 1980; and

(d) any other enactment (including a provision in a local Act or any instrument made under an Act) by virtue of which the Greater London Council or a metropolitan county council may agree or be required to discharge any functions of another local authority.

PART II Consequences of Contravention

2 (1) If in contravention of the principal section the Greater London Council or a metropolitan county council makes a grant to a local authority, enters into any agreement or arrangements for giving relevant assistance to a local authority or gives relevant assistance to a local authority—

(a) the appropriate residuary body shall be entitled to recover from that local authority on demand—

(i) an amount equal to the grant or to the value of the relevant assistance given or to be given under the agreements or arrangements at any time after 24th July 1984 and before the abolition date ; and

(ii) interest on that amount; and

(b) any sums payable by that local authority (whether before, on or after the abolition date) in consequence of a demand under paragraph (a) above shall be treated for the purposes of section 54(5) of the [1980 c. 65.] Local Government, Planning and Land Act 1980 as relevant expenditure of the authority for the financial year ending on 31st March 1986.

(2) A residuary body shall not make any demand for or take any steps to recover any amount payable under this paragraph unless directed to do so by the Secretary of State or otherwise than in accordance with his directions.

(3) A contravention of the principal section shall have no consequences other than those specified in this paragraph and accordingly shall not affect the validity of any grant, agreement or arrangements or of anything done under any agreement or arrangements.

3 For the purpose of determining the amount recoverable under paragraph 2 above in respect of any relevant assistance, the value of that assistance shall be taken to be—

(a) in the case of a payment, an amount equal to the payment;

(b) in a case within paragraph 1(1)(a), (b), (c) or (d) above, such amount as the local authority would have had to pay on the open market in order, at the material time, to secure the carrying out of the works, or to obtain the goods or services or the use of the vehicle, plant or apparatus in question.

4 The Secretary of State may direct a local authority from which an amount in respect of relevant assistance is recoverable under paragraph 2 above to determine the value of that assistance in accordance with paragraph 3 above ; and if the authority reports the result of its determination within such time as is specified in the direction and the Secretary of State is satisfied with that determination it shall be conclusive evidence of that value.

5 (1) Where the value of any relevant assistance is not conclusively determined under paragraph 4 above it shall be determined in accordance with paragraph 3 above by a person appointed for that purpose by the Secretary of State, being a person who is not in the service of the Crown and has such qualifications as appear to the Secretary of State to be appropriate ; and the determination of that person shall be conclusive evidence of that value.

(2) The local authority by which the relevant assistance was received shall repay to the Secretary of State the amount of any fee payable by him to the person appointed under this paragraph to determine the value of that assistance ; and if any such amount is not paid the Secretary of State may direct the appropriate residuary body to recover it from the local authority and it shall be recoverable from that authority accordingly.

6 The interest recoverable under paragraph 2 above in respect of any grant made or relevant assistance given to a local authority shall accrue from the date on which the grant is made or, as the case may be, the assistance or any part of it is first received by the authority and shall be at such rate as the Secretary of State may determine ; and different rates may be determined in respect of interest accruing at different periods.

PART III Failure to Furnish Information

7 Where under section 230 of the principal Act a local authority to which the Greater London Council or a metropolitan county council has power to make a grant or to give relevant assistance is required by the Secretary of State to furnish him with any information for the purposes of the principal section and that information is not furnished within a reasonable time, the Secretary of State may exercise his power under paragraph 2(2) above to direct the appropriate residuary body to demand and recover from the authority an amount determined by him on such assumptions as to the making of grants or the giving of relevant assistance to the authority as he thinks appropriate and that amount, together with interest thereon from such date as he may determine, shall be recoverable under paragraph 2 above accordingly.