xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Part VIE+W Rate Support Grant

New system of rate support grantsE+W

53 Introduction of new system of rate support grants.E+W

(1)Subject to the provisions of this Part of this Act, the Secretary of State shall, for the commencing year and each subsequent year, make out of money provided by Parliament to local authorities in England and Wales in accordance with the provisions of this Part of this Act—

(a)a grant to be known as “domestic rate relief grant"; and

(b)a grant to be known as “block grant".

(2)The grants made in pursuance of subsection (1) above shall together be known as “rate support grants".

(3)Rate support grants as defined in section 1 of the Local Goverment Act 1974 shall not be payable for the commencing year or for any subsequent year.

(4)For the commencing year and any subsequent year rate support grants fot local authorities in England and local authorities in Wales may be administered separately and differently; and this Part of this Act shall be construed accordingly in relation to rate support grants for any year for which such grants are so administered.

(5)The following bodies are local authorities for the purposes of this Part of this Act, namely—

(a)the council of a county;

(b)

F1(c)the Inner London Education Authority;

(d)the council of a district;

(e)the council of a London borough;

(f)the Common Council of the City of London; F2

[F3(ff)a joint authority; and]

(g)the Council of the Isles of Scilly.

(6)For the purposes of this Part of this Act the area of the Inner London Education Authority is the Inner London Education Area [F4and the area of a joint authority is the area for which the authority is established.]

(7)The Sub-Treasurer of the Inner Temple and the Under Treasurer of the Middle Temple are local authorities for the purposes of the provisions of this Part of this Act relating to domestic rate relief grant.

(8)Subject to the following provisions of this Part of this Act, payments in respect ot rate support grants shall be made to a local authority at such times as the Secretary of State with the consent of the Treasury may specify, and shall be made in aid of the revenues of the authority generally.

(9)In this Part of this Act “the commencing year” means such year as the Secretary of State may by order made by statutory instrument appoint.

(10)The Secretary of State may by order made by statutory instrument direct that any enactment to which this subsection applies shall cease to have effect on such date as the order may specify.

(11)The enactments to which subsection (10) above applies are—

(a)sections 48 to 51 and 52(1)(a) and (2) above;

(b)section 69(3) below;

(c)the provisions specified in Schedule 8 to this Act;

(d)paragraph 31 of Schedule 32 to this Act; and

(e)section 48(1A)(a) of the M1General Rate Act 1967 (standard amount for the purposes of domsetic rate relief.

Textual Amendments

Modifications etc. (not altering text)

C10Year beginning 1.4.1981 appointed under s. 53(9) by S.I. 1980/1893, art. 3

Marginal Citations

M11967 c. 9 (103:1,2).

54 The aggregate amount of rate support grants. E+W

(1)For the purposes of fixing the aggregate amount of the rate support grants for any year, the Secretary of State shalld etermine the aggregate amount (in this Part of this Act referred to as “the amount available for grants") which he estimates to be available for the payment out of money provided by Parliament of grants to local authorities [F5and the Receiver in respect of] relevant expenditure for the year, other than—

(a)housing subsidies;

(b)grants under section 8 of the M2Local Government Act 1974 [F6and rate rebate subsidy under the M3Social Security Act 1986];

(c)grants under section 69 of this Act; and

(d)grants under paragraph 29 of Schedule 32 to this Act.

(2)The Secretary of State shall deduct from the amount determined under subsection (1) above—

(a)the portion of the amount available for grants which he estimates will be allocated to grants in respect of specific services, other than—

(i)grants under section 8 of the M4Local Government Act 1974 [F6and rate rebate subsidy under the M5Social Security Act 1986]

(ii)grants under section 69 of this Act, and

(iii)grants under paragraph 29 of Schedule 32 to this Act; and

(b)the portion of the amount which is prescibed as the aggregate amount of supplementary grants for transport services within the meaning of section 6 of the Local Government Act 1974; and

(c)the portion of that amount which is prescibed as the aggregate amount of supplementary grants under section 7 of that Act.

(3)So much of the amount available for grants as remains after making the deductions required under subsection (2) above shall be the aggregate amount of the rate support grants for that year.

(4)Before determining the amount available for grants and the portions of that amount mentioned in paragraphs (a) to (c) of subsection (2) above, the Secretary of State shall consult with such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to him to be desirable, and shall take into account—

(a)the latest information available to him as to the rate of relevant expenditure;

(b)any probable fluctuation in the demand for services giving rise to relevant expenditure, so far as the fluctuation is attributable to circumstances—

(i)in England as a whole; or

(ii)in Wales as a whole,

being circumstances which are not under the control of local authorities;

(c)the need for developing those services and the extent to which, having regard to general economic conditions, it is reasonable to develop them; and

(d)the current level of prices, costs and remuneration and any future variation in that level which in the opinion of the Secretary of State will result from decisions which appear to him to be final and which will have the effect of increasing or decreasing any particular prices, costs or remuneration.

(5), (6)

F7(7)The following grants for specific services, namely grants—

(a)to the Receiver F8 under section 51 of the M6Powers of Criminal Courts Act 1973 (towards the cost of probation services) and under section 59 of the M7Justices of the Peace Act 1979 (grants for magistrates’ courts purposes); and

(b)under section 31 of the M8Police Act 1964 (police grants), whether made to a committee of a local authority or not,

shall be treated for the purposes of subsection (2) above as grants made to local authorities; F8

(8)In this section—

[F9F10(9)In this section “relevant expenditure” in relation to any year means—

(a)the aggregate of all local authorities’ relevant expenditure in relation to the year, plus

(b)the Reciever’s total expenditure for the year (within the meaning of Schedule 2 to the Local Government Fiancne Act 1982).

(10)But to the extent that, in any year, any expenditure of the Receiver or of a combined police authority is met by any grants mentioned in subsection (7)(a) or (b) above, that expenditure shall be treated for the purposes of this section as relevant expenditure in relation to that year.

(11)In this section “the Reciever” means the Receiver for the Metropolitan Police District.]

55 The domestic rate relief grant.E+W

(1)The aggregate amount of the domestic rate relief grant shall be determined by the Secretary of State.

(2)The amount of domestic rate relief grant payable to a local authority for any year shall be calculated in accordance with Schedule 9 to this Act.

(3)No payment in respect of domestic rate relief grant shall be made—

(a)to a county council;

(b)

F11(c)to the Inner London Education Authority [F12; or

(d)to a joint authority]

(4)Any amounts payable to a local authority in respect of domestic rate relief grant shall be taken into account for the purposes of this and any other Act as if they were payable on account of rates.

56 The block grant.E+W

(1)The amount of block grant for a year is the balance left after deducting the amount of domestic rate relief grant from the aggregate amount of the rate support grants.

(2)If—

(a)the council of a county F13 give notice to the Secretary of State that they do not wish to be paid block grant for any year; and

(b)he gives them notice that he consents to it not being paid to them,

no amount shall be payable to them by way of that grant for that year.

(3)Any amount that would be have been payable to them shall be distributed among [F14the councils of districts in the county] as part of their said block grant for the year.

(4)

F15(5)The amount to be paid to a authority under subsection (3) above shall bear the same proportion to the amount that would have been payable to the county council F13 as the gross rateable value of the authority’s area bears to the gross rateable value of the county F13

(6)Subject to subsection (7) below, the amount of block grant payable to a local authority is to be calculated by deducting from [F16their total expenditure in relation to] the year the product arrived at by multiplying their grant-related poundage by the gross rateable value of their area.

(7)The amount of block grant payable to a local authority, other than any amount payable under subsection (3) above, may not exceed [F16their total expenditure in relation to] the year.

(8)In this Part of this Act—

(9)The Secretary of State may—

(a)defray any expenditure incurred in any year in the provision of services for local authorities by any body specified in regulations made by the Secretary of State; and

(b)deduct from the aggregate amount of the block grant for that year, such amount, not exceeding the total of the expenditure so defrayed, as appears to him to be appropriate;

and any regulations made under section 2(7) of the M10Local Government Act 1974 shall have effect for the purposes of this subsection as if they had been made under it.

(10)Before F20 exercising his powers under subsection (9) above, the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.

(11)

F21(12)Regulations under subsection (9) above shall be made bt statutory instrument, and a statutory instrument containing such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(13)The reference to hereditaments in subsection (8) above includes a reference to a notional hereditament which a body is treated as occupying by virtue of any enactment.

(14)A Rate Support Grant Report may provide that for the year to which it relates the rateable value of hereditaments falling within any class of hereditaments shall be ascertained for the purposes of this Part of this Act otherwise than by reference to the values ascribed to them in the valuation list.

57 Determination of grant-related poundage and grant-related expenditure.E+W

(1)[F22A local authority’s grant-related poundage shall be calculated and their grant-related expenditure shall be determined by the Secretary of State in accordance with principles to be applies to all local authorities or to all local authorities belonging to the appropriate class]

(2)Subject to subsection (3) below, [F23the principles on which the grant-related poundage is calculated and the grant-related expenditure is determined] shall be specified in the Rate Support Grant Report.

(3)The principles set out in section 58 need not be specified in the Rate Support Grant Report.

Textual Amendments

Modifications etc. (not altering text)

58 Principles for determination of grant-related poundage. E+W

(1)The principles set out in subsections (2) and (3) below shal apply to all authorities belonging to the appropriate class.

(2)Where an authority’s total expenditure is at a level equal to or less than their grant-related expenditure, a given decrease in their total expenditure must produce the same decrease in in their grant-related poundage as would be produced by the same decrease in their total expenditure if it were at any other level which is less than their grant-related expenditure.

(3)Where an authority’s total expenditure is at a level equal to or more than their grant-related expenditure, a given increase in their total expenditure must produce an increase in their grant-related poundage not less than the increase that would have been produced by the same increase in their total expenditure if it were at any lower level.

(4)References in this section to an increase or decrease in grant-related poundage are references to an increase or decrease in absolute terms.

(5)References in this section to an increase or decrease in an authority’s total expenditure may be construed either as references to an increase or decrease in absolute terms in their [F24total] expenditure per head of the population of their area or as references to an increase or decrease in the ratio between their total expenditure and the grant-related expenditure ; but such references shall be construed in the same way in relation to all authorities.

Textual Amendments

Modifications etc. (not altering text)

59 Adjustments of distribution of block grant. E+W

(1)Subject to the following provisions of this section, the Secretary of State may provide in a Rate Support Grant Report that the amount of block grant payable to a local authority for a year shall be calculated by deducting from their total expenditure, instead of the product of their drant-related poundage and the gross rateable value of their area, the product of those sums multiplied by a multiplier determined by the Secretary of State.

(2)(3)

F25(4)The power conferred by subsection (1) above may be exercised so as to determine different multipliers for different authorities.

(5)Except as provided by subsection (7) below, the power—

(a)may only be exercised—

(i)in accordance with principles to be applies to all local authorities; or

(ii)in accordance with principles to be applied to all local authorities belonging to the appropriate class; and

(b)may only be exercised for any such purpose as is specified [F26in paragraphs (b) to (d) of subsection (6) below or in section 2(2) of the Rate Support Grants Act 1986]

(6)The purposes mentioned in subsection (5) above are—

(a)

F27(b)taking account of less than the gross rateable value of an authority or group of authorities in calculating the amount of block grant payable;

(c)reducing, whether in whole or in part, disparities in the rates levied in different rating areas of Greater London other than the Temples; and

[F28(cc)making, in the amount of block grant payable to an authority, adjustments by refernce to guidance issued by the Secretary of State and designed to achieve any reduction in the level of local authority expenditure (or any restriction on increase in that level) which he thinks necessary heving regard to general economic conditions; and]

(d)any other such purposes as the Secretary of State may determine.

[F29(6A)A multiplier may be subject to a maximum determined by the Secretary of State]

(7)The power may also be exercised in accordance with principles to be applied to the councils to whose police expenses section 57 of the M11Police Act 1964 applies (counties falling partly within the Metropolitan Police District).

(8)If the Secretary of State exercises that power, the principles on which he exercises it shall be soecified in the Rate Support Grant Report.

(9)In this Part of this Act “the appropriate class”, in relation to a local authority, means the class specified in subsection (10) below to which that authority belongs.

(10)Subject to subsection (11) below, any local authority of a description specified in any of the paragraphs of section 53(5) above belongs to a class consisting of all the authorities of that description.

(11)Section 53(5) above shall be treated for the purposes of this section—

(a)

F30(b)as if paragraph (d) referred to two classes, namely—

(i)councils of the metropolitan districts; and

(ii)councils of non-metropolitan districts; and

[F31(c)as if paragraph (e) referred to two classes, namely—

(i)councils of inner London boroughs; and

(ii)councls of outer London boroughs;]

[F32; and

(d)as if paragraph (ff) referred to four classes, namely—

(i)metropolitan county passenger transport authorities and the Northumbria Police Authority;

(ii)metropolitan county passenger transport authorities;

(iii)metropolitan county fire and civil defence authorities; and

(iv)the London Fire and Civil Defence Authority.]

[F33(11A)Any guidance issued for the purposes of subsection (6)(cc) above shall be framed by reference to principles applicable to all local authorities, and before issuing any guidance for those purposes the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.]

(12)In their application to block grant payable to a local authority for the commencing year subsections (3) and (6)(a) above shall have effect as if references to an amount determined by the Secretary of State were substituted for the reference to the amount of block grant payable to the authority for the previous year.

Textual Amendments

F27S. 59(6)(a) repealed (and Superseded in part) by Rate Support Grants Act 1986 (c. 54, SIF 103:1). s. 2(1)(3), Sch. 1 para. 4(3), Sch. 2

Modifications etc. (not altering text)

Marginal Citations

60 The Rate Support Grant Report.E+W

(1)In this section and section 61 below “the relevant grants” means rate support grants payable under this Part of this Act and grant payable under section 6 or 7 of the M12Local Government Act 1974 (supplementary grants for transport and National Parks).

(2)Subject to subsection (3) below, the Secretary of State shall make for each year a report (in this Part of this Act called a “Rate Support Grant Report") relating to the relevant grants.

(3)In so far as a Rate Support Grant Report relates to payments of grants under section 6 of the M13Local Government Act 1974 it shall be made for England by the Minister of Transport.

(4)A Rate Support Grant Report shall be made with the consent of the Treasury.

(5)Before making a Rate Support Grant Report the Secretary of State and the Minister of Transport shall consult such associations of local authorities as appear to them to be concerned and any local authority with whom consultation appears to them to be desirable.

(6)A Rate Support Grant Report shall specify—

(a)all the determinations relating to the relavant grants which are required by any provision of this Part of this Act; and

(b)[F34such explanation as the Secretary of State thinks desirable of the main features of any such determination]

(7)A Rate Support Grant Report shall be laid before the House of Commons.

(8)No payment of any of the relevant grants for the year shall be made until the Rate Support Grant Report is approved by a resolution of the House of Commons and (subject to section 61 below) any payment may bemade only in accordance with the Rate Support Grant Report as so approved.

(9)The Secretary of State shall send a copy of every Rate Support Grant Report to each local authority as soon as practicable after it has been approved.

61 Supplementary reports. E+W

(1)Subject to subsection (2) below, after a Rate Support Grant Report has been made for any such year the Secretary of State may, at such time or times as he thinks fit, make one or more supplementary reports for that year.

(2)Section 60(3) to (5), (7) and (9) above shall apply to a supplementary report as they apply to a Rate Support Grant Report.

(3)Subject to subsections (4) and (5) below, a supplemetary report may specify fresh determinations in place of all or any of those specified by the Rate Support Grant Report.

(4)The Secretary of State may not in a supplementary report vary the aggregate amount of domestic rate relief grant determined by him for any year in the Rate Support Grant Report for that year.

(4A)

F35(5)The power conferred by subsections (3) above shall be exercisable only in accordance with principles applicable to all local authorities and specified in the supplementary report.

(6)In addition to specifying any fresh determinations a supplemetary report shall specify [F36such explanation as the Secretary of State thinks desirable of their main features]

[F37(6A)A supplementary report may specify fresh principles for the calculation of a grant-related poundage in place of those specofied in the Rate Support Grant Report and in that event that poundage shall be recalculated on fresh principles.]

(7)If a supplmentary report is approved by a resolution of the House of Commons, any payment of any of the relevant grants for the year may be made inly in accordance with the Rate Support Grant Report for the year (as so approved, as varied by the supplementary report for the year (as so approved).

F3862. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

63 Adjustment of block grant in connection with education etc.E+W

Block grant shall be subject to the adjustments arising out of expenditure by local authorities on education and for connected purposes specified in Schedule 10 to this Act.

[F3963A Adjustment of block grant for rates equalisation contribution.E+W

(1)Where in any year a local authority is entitled to receive a contribution under a scheme made by virtue of section 66 of the London Government Act 1963 (equalisation of rates) the amount of any block grant payable to the authority for that year shall, of the Secretary of State so determines, be reduced by an amount equal to that contribution or such lesser amount as he may determine.

(2)Subsection (5) of section 61 above shall not apply to any exercise of the power conferred by subsection (3) of that section in respect of a determination under this section.]

F4064. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

[F4165 Information. E+W

(1)Each local authority shall submit to the Secretary of State in respect of each year, in such form and by such date as he may specify, such of the information mentioned in subsection (2) below as he may from time to time require for the purposes of this Part of this Act, section 8 of the Local Government Fiannce Act 1982, section 2 of the Rate Support Grants Act 1986 and sections 1 and 2 of the Local Government Finance Act 1987.

(2)The information is information as to the following matters—

(a)the expenditure incurred, or to be incurred, by the authority during the year,

(b)their relevant expenditure in relation to the year,

(c)their total expenditure in relation to the year, and

(d)their accounts for the year.

(3)The information required under subsection (1) above may include any of the following—

(a)what the authority calculate as the amount of the expenditure incurred, or likely to be incurred, by them during the year,

(b)what the authority calculate as the amount, or likely amount, of their relevant expenditure in relation to the year,

(c)what the authority calculate as the amount, or likely amount, of their total expenditure in relation to the year,

(d)what the authority calculate as the amount of any addition or subtraction to be made in relation to the year by virtue of any specification under section 3(1) or (7) of the Local Government Finance Act 1987, and

(e)information about the items of account which are likely to be (as well as those which have been) debited or credited to the authority’s accounts for the year.

(4)Where no or no sufficient information as to the matters mentioned in subsection (2) above has been submitted to the Secretary of State in respect of a year, whether under subsection (1) above or otherwise, he may for the purpose of making a supllmenetary report, an adjustment under section 62 above or an estimate under section 66(1) below make such assumptions as to those matters as he thinks appropriate.

(5)Where any information as to any of the matters mentioned in subsection (2) above is submitted to the Secretary of State under subsection (1) above after the date specified by him, or otherwise than under that subsection, he may for any of the purposes mentioned in subsection (4) above disreagrd it if he considers that it is not reasonably practicable to take it into account for that purpose.]

Textual Amendments

F41S. 65 substituted by Local Government Finance Act (c. 6, SIF 81:1), s. 11, Sch. 4 para. 4

Modifications etc. (not altering text)

66 Estimates and calculations. E+W

(1)The Secretary of State shall, upon the best information available to him, estimate and notify each local authority the amounts of domestic rate relief garnt and block grant which will become payable to the authority for a year; and he may make and notify to an authority such further estimates of teh said amounts, taking in to account information not previously available, as he may think fit.

(2)As soon as practicable after he has received what appears to him to be sufficient information for the purpose, the Secretary of State shall make a conclusive calculation if the said amounts and notify the result of that calculation to each local authority.

(3)The amounts of domestic rate relief grant and block grant payable to a local authority shall each be calculated to the nearest pound.

(4)Where it appears to the Secretary of State from any estimate or calculation made under this section that sum in excess of the amount of the estimate or calculation has already been paid to a local authority in respect of rate support grants for the year, he may recover that sum by deduction from any amount due to that authority in respect of those grants, whether for the year or for any subsequent year, or by issuing a demand for it to the authority or partly by such deduction and partly by such a demand, as he thinks fit.

67 Changes in rateable value. E+W

(1)After the amount of the block grant payable to a local authority for any year has been conclusively calculated under this Part of this Act, the authority may by notice in writing request the Secretary of State to give a direction under this section if—

(a)the rateable value of hereditaments in the authority’s area has been reduced with effect from the date on or before that which is relevant for determining the gross rateable value of the hereditaments in the authority’s area for that year under this Part of this Act; and

(b)the effect of those and any other alterations of rateable values made before the date of the notice would, had they been made on the dates as from which they took effect, have been to produce a reduction on the gross rateable value of those hereditaments which is of such a magnitude that, expresed as a percentage of their gross rateable value, it exceeds such percentage as may be specified for the purposes of this section in regulations made by the Secretary of State.

(2)On the receipt of such a notice the Secretary of State shall direct that the amount of the block grant payable to the authority for that year shall be recalculated in accordance with the following provisions of this section and a further payment on account of that grant shall be made to the local authority accordingly.

(3)The power to specify a percentage for the purposes of paragraph (b) of subsection (1) above includes power to specify, in relation to the second and subsequent notices given by a local authority in respect of any year, percentages higher than that specified in relation to the first notice given by the authority in respect of that year.

(4)Where subsection (1) above applies, the amount of the block grant payable to the authority for the year shall be recalculated by treating the gross rateable value of the hereditaments in their area as reduced by the difference between the reduction referred to in subsection (1)(b) above and the percentage specified for the purpose of that paragraph or, where more than one percentage is so specified, the lowest of them.

(5)The further payment shall be an amount equal to the difference between the amount previously paid to the authority for the year concerned on account of block grant and the amount recalculated as specified in subsection (2) above.

(6)Any amount payable under this section shall be payable without the making of any report under this Part of this Act and notwithstanding the contents of any such report previously made in respect of the year for which the grant is payable.

(7)Before making regulations under this section the Secretary of State shall consult such associations of local authorities as appear to him to be concerned and any local authority with whom consultation appears to him to be desirable.

(8)The power to make such regulations shall be exercisable by statutory instrument.

(9)A stautory instrument containing any such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

68 Rate support grant– supplementary.E+W

(1)In this Part of this Act “year” means a period of twelve months beginning with 1st April [F42and “joint authority” means a joint authority established by Part IV of the M14Local Government Act 1985]

(2)In section 10(2) of the M15Local Government Act 1974 the following definition shall be substituted for the definition of “prescribed":—

prescribed” means precribed by a Rate Support Grant Report made under section 60 of the Local Government, Planning and Land Act 1980 or by a supplementary report made under section 61 of that Act ;.

(3)

F43(4)

F44(5)

F45(6)

F43(7)Any power to amend regulations made under Part I of the M16Local Government Act 1974 or section 32 of the Education Act 1980 shall include power to make any such amendments in the regulations as appear to the Secretary of State to be necessary or expedient in consequence of the provisions of sections 53 to 68 above.

(8)The amendments made by subsections (2) to (6) above shall come into force on such date as teh Secretary of State may by order made by statutory instrument appoint.

(9)This Part of this Act extends to England and Wales only.

Textual Amendments

Modifications etc. (not altering text)

C45The text of ss. 24, 25(1)–(3)(5), 26(4), 27, 32, 46 61(4A), 68(2), 69(3), 92(1)—(4)(6)—(8), 112, 114, 118, 131(3), 145, 155(1), 173, 174, 175(1), 176, 180, 181(1)–(3), 183, 92(1)–(4)(6)–(8), 184(1)(2), 186, 191, 193, 194 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

C4611.12.1980 appointed under s. 68(8) by S.I. 1980/1893, art. 4

Marginal Citations

M141985 c. 51 (81:1).

M151974 c. 7 (81:1).

M161974 c. 7 (81:1).