Local Government Finance Act 1992 (c. 14)

Part I E+W Council Tax: England and Wales

Modifications etc. (not altering text)

C1 Pt. I (ss. 1-69) modified (6.3.1992) by Local Government Act 1992 (c. 19), s. 18(1)(a)(b).

C2 Pt. I (ss. 1-69) modified (31.3.1992) by S.I. 1992/549, art.3.

C3 Pt. I (ss. 1-69) modified (31.3.1992) by S.I. 1992/550, arts. 3, 4

Pt. I (ss. 1-69) modified (28.11.1994) by S.I. 1994/2825, reg. 3

C4 Pt. 1 modified (24.12.2008) by The Local Government (Structural Changes) (Finance) Regulations 2008 (S.I. 2008/3022), regs. 1(2), 8

C5 Pt. 1 modified (24.12.2008) by The Local Government (Structural Changes) (Finance) Regulations 2008 (S.I. 2008/3022), regs. 1(2), 7

[F1 CHAPTER IVZA E+W Referendums relating to council tax increases

Textual Amendments

F1 Pt. 1 Ch. 4ZA inserted (3.12.2011) by Localism Act 2011 (c. 20), ss. 72(1), 240(2), Sch. 5; S.I. 2011/2896, art. 2(g) (with art. 3(1)(2))

Modifications etc. (not altering text)

C6 Pt. 1 Ch. 4ZA modified by S.I. 2008/3022, reg. 15A, Sch. 3 (as inserted (25.1.2012) by The Local Government (Structural Changes) (Finance) (Amendment) Regulations 2012 (S.I. 2012/20), regs. 1(2), 7, 11, Sch. 2) (as amended (2.1.2019) by The Local Government (Structural and Boundary Changes) (Amendment) Regulations 2018 (S.I. 2018/1296), regs. 1, 10, 12)

Determination of whether increase excessive E+W

52ZB Duty to determine whether council tax excessive E+W

(1) A billing authority must determine whether its relevant basic amount of council tax for a financial year is excessive.

(2) Sections 52ZF to 52ZI below (duty to hold referendum etc in case of excessive council tax increase by billing authority) apply where the amount mentioned in subsection (1) above is excessive.

(3) A major precepting authority must determine whether its relevant basic amount of council tax for a financial year is excessive.

(4) Sections 52ZJ and 52ZK and 52ZN to 52ZP below (duty to hold referendum etc in case of excessive council tax increase by major precepting authority) apply where an amount mentioned in subsection (3) above is excessive.

(5) A local precepting authority must determine whether its relevant basic amount of council tax for a financial year is excessive.

(6) Sections 52ZL to 52ZP below (duty to hold referendum etc in case of excessive council tax increase by local precepting authority) apply where the amount mentioned in subsection (5) above is excessive.

(7) A determination under this section for a financial year must be made as soon as is reasonably practicable after principles under section 52ZC below for that year are approved by a resolution of the House of Commons under section 52ZD below.

52ZC Determination of whether increase is excessive E+W

(1) The question whether an authority's relevant basic amount of council tax for a financial year (“the year under consideration”) is excessive must be decided in accordance with a set of principles determined by the Secretary of State for the year.

(2) A set of principles—

(a) may contain one principle or two or more principles;

(b) must constitute or include a comparison falling within subsection (3) below.

(3) A comparison falls within this subsection if it is between—

(a) the authority's relevant basic amount of council tax for the year under consideration, and

(b) the authority's relevant basic amount of council tax for the financial year immediately preceding the year under consideration.

(4) If for the purposes of this section the Secretary of State determines categories of authority for the year under consideration—

(a) any principles determined for the year must be such that the same set is determined for all authorities (if more than one) falling within the same category;

(b) as regards an authority which does not fall within any of the categories, the authority's relevant basic amount of council tax for the year is not capable of being excessive for the purposes of this Chapter.

(5) If the Secretary of State does not determine such categories, any principles determined for the year under consideration must be such that the same set is determined for all authorities.

(6) A principle that applies to the Greater London Authority and that constitutes or includes a comparison falling within subsection (3) above may only provide for—

(a) a comparison between unadjusted relevant basic amounts of council tax,

(b) a comparison between adjusted relevant basic amounts of council tax, or

(c) a comparison within paragraph (a) and a comparison within paragraph (b).

(7) In determining categories of authorities for the year under consideration the Secretary of State must take into account any information that the Secretary of State thinks is relevant.

Modifications etc. (not altering text)

C7 S. 52ZC applied (with modifications) (cond.) (30.1.2014) by Local Audit and Accountability Act 2014 (c. 2), ss. 41(18)-(21), 49(3)

C8 S. 52ZC applied (with modifications) (cond.) (30.1.2014) by Local Audit and Accountability Act 2014 (c. 2), ss. 41(14)-(18), 49(3)

52ZD Approval of principles E+W

(1) The principles for a financial year must be set out in a report which must be laid before the House of Commons.

(2) If a report for a financial year is not laid before the specified date or, if so laid, is not approved by resolution of the House of Commons on or before the specified date—

(a) no principles have effect for that year, and

(b) accordingly, no authority's relevant basic amount of council tax for the year is capable of being excessive for the purposes of this Chapter.

(3) If the Secretary of State does not propose to determine a set of principles for a financial year, the Secretary of State must lay a report before the House of Commons before the specified date giving the Secretary of State's reasons for not doing so.

(4) In this section “the specified date”, in relation to a financial year, means the date on which the local government finance report for the year under [F2 paragraph 5(1) of Schedule 7B to] the 1988 Act is approved by resolution of the House of Commons.

Textual Amendments

F2 Words in s. 52ZD(4) substituted (27.3.2013) by The Local Government Finance Act 2012 (Consequential Amendments) Order 2013 (S.I. 2013/733), arts. 1, 2(3)

52ZE Alternative notional amounts E+W

(1) The Secretary of State may make a report specifying an alternative notional amount in relation to any year under consideration and any authority.

(2) An alternative notional amount is an amount which the Secretary of State thinks should be used as the basis of any comparison in applying section 52ZC above in place of the authority's relevant basic amount of council tax for the preceding year.

(3) A report under this section—

(a) may relate to two or more authorities;

(b) may be amended by a subsequent report under this section;

(c) must contain such explanation as the Secretary of State thinks desirable of the need for the calculation of the alternative notional amount and the method for that calculation;

(d) must be laid before the House of Commons.

(4) Subsection (5) below applies if a report under this section for a financial year is approved by resolution of the House of Commons on or before the date on which the report under section 52ZD above for that year is approved by resolution of the House of Commons.

(5) Section 52ZC above has effect, as regards the year under consideration and any authority to which the report relates, as if the reference in subsection (3) of that section to the authority's relevant basic amount of council tax for the financial year immediately preceding the year under consideration were a reference to the alternative notional amount for that year.

(6) In this section “year under consideration” has the same meaning as in section 52ZC above.]