Greater London Authority Act 1999

Budget requirements

85 Calculation of component and consolidated budget requirements

(1) Section 43 of the [1992 c. 14.] Local Government Finance Act 1992 shall not apply in relation to the Authority, and the following provisions of this section and section 86 below shall have effect in relation to the Authority in place of that section.

(2) In relation to each financial year, the Authority shall make the calculations required by this section.

(3) The Authority must, in the case of each constituent body, that is to say—

(a) the Authority, and

(b) each of the functional bodies,

calculate the aggregates required by virtue of subsections (4) and (5) below.

(4) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

(a) the expenditure the Authority estimates the body will incur in the year in performing its functions and will charge to a revenue account for the year, other than expenditure which the Authority estimates will be so incurred in pursuance of regulations under section 99(3) of the 1988 Act;

(b) such allowance as the Authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c) the financial reserves which the Authority estimates it will be appropriate for the body to raise in the year for meeting the body’s estimated future expenditure; and

(d) such of the body’s financial reserves as are sufficient to meet so much of the amount estimated by the Authority to be a revenue account deficit of the body for any earlier financial year as has not already been provided for.

(5) The aggregate required by virtue of this subsection in the case of a constituent body is the aggregate of—

(a) the sums which the Authority estimates will be payable to the body for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which the Authority estimates will be so payable—

(i) in respect of redistributed non-domestic rates, revenue support grant, additional grant, relevant special grant, police grant or general GLA grant;

(ii) in respect of any precept issued by the Authority; or

(iii) in pursuance of regulations under section 99(3) of the [1988 c. 41.] Local Government Finance Act 1988; and

(b) the amount of the body’s financial reserves which the Authority estimates that the body will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (4) above.

(6) If, in the case of any constituent body, the aggregate calculated under subsection (4) above exceeds that calculated under subsection (5) above—

(a) the Authority must calculate the amount equal to the difference; and

(b) the amount so calculated shall be the body’s component budget requirement for the year.

(7) If, in the case of any constituent body, the aggregate calculated under subsection (4) above does not exceed that calculated under subsection (5) above, the body’s component budget requirement for the year shall be nil.

(8) The Authority must also calculate the aggregate of the component budget requirements of each of the constituent bodies and that aggregate shall be the Authority’s consolidated budget requirement for the year.

(9) References in this section to expenditure incurred by a body shall be construed in accordance with section 41(3) of the [1989 c. 42.] Local Government and Housing Act 1989.

86 Provisions supplemental to section 85

(1) An amount must not be brought into account under subsection (4) or (5) of section 85 above in the application of the subsection in relation to the Authority as a constituent body if the amount (or an amount which represents it) falls to be brought into account under the same subsection in its application in relation to a functional body.

(2) In estimating under subsection (4)(a) of section 85 above in the case of any constituent body other than the Metropolitan Police Authority, the Authority shall take into account the amount of any levy issued to the body for the year, but (except as provided by regulations under section 74 of the [1988 c. 41.] Local Government Finance Act 1988) shall not anticipate a levy not issued.

(3) In estimating under subsection (4)(a) of section 85 above in the case of the Metropolitan Police Authority, the Authority shall take into account the amount of any levy issued to the Metropolitan Police Authority under section 17 or 62 of the [1997 c. 50.] Police Act 1997 (levies issued by the Service Authority for the National Criminal Intelligence Service and the Service Authority for the National Crime Squad) for the year, but (except as provided by an order under either of those sections) shall not anticipate a levy not issued.

(4) For the purposes of subsection (4)(c) of section 85 above a body’s estimated future expenditure is—

(a) that which the Authority estimates the body will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely, sums—

(i) which will be payable to it for the year; and

(ii) in respect of which amounts will be credited to a revenue account for the year; and

(b) that which the Authority estimates the body will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

(5) The Secretary of State may by regulations do one or both of the following—

(a) alter the constituents of any calculation to be made under subsection (4) or (5) of section 85 above (whether by adding, deleting or amending items);

(b) alter the rules governing the making of any calculation under subsection (4) or (5) of section 85 above (whether by deleting or amending subsections (2) to (4) above, or any of them, or by adding other provisions, or by a combination of those methods).

(6) Subsection (9) of section 85 above applies for the purposes of this section as it applies for the purposes of that section.

87 Procedure for determining the budget requirements

Schedule 6 to this Act (which contains procedural requirements for determining the component budget requirements and the consolidated budget requirement) shall have effect.