Local Government Finance Act 1982
1982 CHAPTER 32
An Act to abolish supplementary rates and supplementary precepts; to require rates and precepts to be made or issued for complete financial years; to provide for the making of substituted rates and the issue of substituted precepts; to regulate proceedings for challenging the validity of rates and precepts; to make further provision with respect to the borrowing powers of local authorities and with respect to relief from rates in enterprise zones; to amend the provisions relating to block grant; to make new provision for auditing the accounts of local authorities and other public bodies; and for connected purposes.
[13th July 1982]

Part I Rates, Precepts and Borrowing

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 1 repealed by S.I. 1990/776, art. 3, Sch. 1

2 Limitation of precepting powers.
A precepting authority shall not have power—
(a) to issue a supplementary precept; or
(b) to issue a precept in respect of any period other than a financial year.

3 Substituted rates and precepts.
(1) Subject to subsection (2) below—
(a) a rating authority may make a rate for a financial year in substitution for a rate previously made by it for that year; and
(b) a precepting authority may issue a precept in respect of a financial year in substitution for a precept previously issued by it in respect of that year.
(2) The estimated product of a substituted rate or precept shall not exceed the estimated product of the rate or precept for which it is substituted (the “original” rate or precept); and for the purposes of this subsection the product of a substituted rate or precept shall be estimated by reference to the same gross rateable value as the product of the original rate or precept.
(3) Section 12(6) of the General Rate Act 1967 (which requires a precept to be issued or notified before the beginning of a financial year) shall not apply to a precept issued by virtue of subsection (1)(b) above.
1967 c. 9.
(4) Where a precept is substituted by virtue of this section any authority which has made a rate by reference to the original precept—
(a) shall under subsection (1)(a) above make a substituted rate by reference to the substituted precept; and
(b) shall be entitled to recover from the precepting authority—
(i) its administrative expenses in making repayments and allowing credits under subsections (5) and (6) below in respect of the original rate; and
(ii) any increase attributable to paragraph (a) above in its rate collection expenses for the financial year;
and in relation to the substituted rate made pursuant to paragraph (a) above the estimated product of the original rate shall for the purposes of subsection (2) above be treated as reduced by the difference (if any) between the estimated products of the original and the substituted precepts.
(5) Where a rate or precept is substituted by virtue of this section any sum paid to the rating or precepting authority in respect of the original rate or precept (including any sum paid by way of an instalment or other part payment) shall—
(a) to the extent to which it would have been payable if the original rate or precept had corresponded to the substituted rate or precept, be treated as paid in respect of the substituted rate or precept; and
(b) as to any excess, be repaid if the ratepayer by whom that sum was paid or, as the case may be, the authority to which the precept was issued so requires.
(6) Where repayment of any amount is not required under subsection (5)(b) above that amount shall, as the rating or precepting authority may determine, either be repaid or—
(a) in the case of an amount paid in respect of a rate, be credited against any subsequent liability of the ratepayer for rates in respect of the hereditament in question;
(b) in the case of an amount paid in respect of a precept, be credited against any subsequent liability of the authority to which the precept was issued in respect of precepts issued to it by the precepting authority.
(7) Where a person as tenant or licensee of any premises—
(a) is liable to make payments (whether as part of his rent or otherwise) which vary or may vary according to the rates chargeable in respect of those premises; or
(b) is entitled to make deductions from his rent in respect of those rates,
he shall, where a rate affecting those premises is substituted by virtue of this section, be entitled to recover or, as the case may be, liable to make good so much of any payment or deduction as he would not have been liable or entitled to make if the original rate had corresponded to the substituted rate; and any sum which he is entitled to recover as aforesaid may, without prejudice to any other method of recovery, be deducted by him from any rent payable by him to the person by whom that sum was received.
(8) This section applies whether or not the original rate or precept was validly made or issued but shall not be construed as authorising the substitution of a rate or precept for one made or issued after the passing of this Act in contravention of section 1 or 2 above.
(9) Where the original rate or precept has been quashed because it is insufficient to meet the expenditure required to be taken into account under section 2 or 11 of the said Act of 1967, subsection (2) above shall not prevent a substituted rate or precept being made or issued which is sufficient to meet that expenditure.
S. 3(9)(10) inserted by Rates Act 1984 (c. 33, SIF 103:1), s. 16(1), Sch. 1 para. 24
(10) Where, whether by virtue of this section or otherwise, a precept is issued to a rating authority after it has made a rate for the financial year to which the precept relates, subsection (2) above shall not prevent a substituted rate being made by the authority for giving effect to the precept; and a rating authority which makes a substituted rate by virtue of this subsection shall be entitled to recover from the precepting authority in question any increase in its administrative or rate collection expenses which is attributable to that rate.

4 Proceedings in respect of rates and precepts.
(1) The validity of a precept shall not be questioned except by an application for judicial review; and the validity of a rate shall not be questioned except as aforesaid on any of the grounds mentioned in subsection (2) below.
(2) The grounds referred to in subsection (1) above in the case of a rate are—
(a) that any part of it was made for financing expenditure which the rating authority could not lawfully incur;
(b) that it was made by reference to a precept which was wholly or partly invalid; or
(c) any other ground not based on facts relating to a particular hereditament or to the inclusion or exclusion of any particular person in or from the rate.
(3) If on an application for judicial review the court decides to grant relief in respect of a rate on any of the grounds mentioned in subsection (2) above or in respect of a precept it shall quash the rate or precept whether the ground of invalidity relates to the whole or only to a part of it.
(4) Subsection (1) above is without prejudice to the making of an application for judicial review in any case in which it could be made apart from that subsection.
(5) Section 7 of the General Rate Act 1967 (appeal against rate) shall have effect subject to the foregoing provisions of this section, and accordingly the court shall not under that section amend or quash a rate except in relation to a particular hereditament.
1967 c. 9.

5
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 5(1) repealed (with savings in S.I. 1990/431, Sch. 1 para. 1(a)) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), ss. 194(2), 195(2), Sch. 12 Pt. I
(2)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 5(2)(3) repealed by Local Government Act 1985 (c. 51, SIF 81:1), ss. 1, 102, Sch. 17

6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 6 repealed by S.I. 1990/776, art. 3, Sch. 1

7 Interpretation and commencement of Part I.
(1) In this Part of this Act—
“financial year” means a period of twelve months beginning with 1st April;
“gross rateable value”, in relation to a rating or precepting authority, means the aggregate of the rateable values of the hereditaments in the authority’s area;
“precepting authority” means an authority having power to issue a precept either to a rating authority or to a county council;
“rate” means a general rate except that—
(a) in the case of the City of London, it includes the poor rate; and
(b) in the case of the Inner Temple and the Middle Temple, it means any rate in the nature of a general rate levied in the Inner Temple or the Middle Temple, as the case may be;
“rating authority” means any authority having power to make a rate under section 1 of the General Rate Act 1967;
“supplementary precept” means a precept which is issued by a precepting authority—
(a) in respect of (or of part of) a financial year in respect of which it has already issued a precept; and
(b) by way of addition to and not in substitution for that previous precept.
1967 c. 9.
(2) Sections 1 to 3 and 6(1) and (3) above have effect in relation to any financial year beginning on or after 1st April 1982.
(3) Schedule 1 to this Act shall have effect in connection with the coming into force of sections 1 and 2 above.

Part II Block Grant

8 Adjustments of distribution of block grant.
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9 Information for purposes of block grant.
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10 Block grant for Receiver for the Metropolitan Police District.
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Pt. 2 repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 10 Group 2

Part III Accounts and Audit

The Audit Commission

11 .
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Ss. 11-36 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

Audit of accounts

12 .
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S. 12 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

13 .
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S. 13 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

14 .
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S. 14 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 15 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 16 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 17 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

18 .
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S. 18 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

18A Additional publicity for auditors’ immediate reports.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 18A repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

19 Declaration that item of account is unlawful.
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S. 19 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

20 Recovery of amount not accounted for etc.
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S. 20 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 21 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

22 Extraordinary audit.
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S. 22 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 23 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 24 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 25 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 25A repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25AA .
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S. 25AA repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25B .
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S. 25B repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25C .
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S. 25C repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

25D .
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S. 25D repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

Miscellaneous and supplementary

26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 26 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 27 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 28 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 28AA repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28AB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 28AB repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28AC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 28AC repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 28A inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 184(1) and fell upon the repeal of the said s. 184(1) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(2), Sch. 10 and expressed to be repealed (1.4.1996) by 1995 c. 17, ss. 2(1)(3), 5(1), Sch. 3 (with Sch. 2 para. 6) and expressed to be repealed (11.9.1998) by 1998 c. 18 ,ss. 54(3), 55(2), Sch. 5

28B General functions of Commission in relation to registered social landlords.
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Ss. 11-36 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28C Provisions supplementary to s.28B.
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Ss. 28B-28E repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ss. 28B-28E repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28E .
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Ss. 28B-28E repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

28F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ss. 11-36 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 29 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

30 .
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S. 30 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

30A .
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S. 30A repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 31 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 32 repealed by Water Act 1989 (c. 15, SIF 130), s. 190(3), Sch. 27 Pt. I (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 41(1), 57(6), 58) and expressed to be repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 33 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 34 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 35 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

36 .
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S. 36 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

Part IV Supplementary

37 Expenses.
There shall be paid out of moneys provided by Parliament—
(a) any expenses under this Act of the Secretary of State; and
(b) any increase attributable to this Act in the sums payable out of such moneys under any other Act.

38 Repeals.
(1) The enactments mentioned in Schedule 6 to this Act are hereby repealed to the extent specified in the third column of that Schedule.
(2) The repeals in Part I of that Schedule have effect for financial years beginning on or after 1st April 1982.
(3) The repeals in Part II of that Schedule have effect for financial years beginning on or after 1st April 1981.
(4) The repeals in Part III of that Schedule have effect for financial years beginning on or after 1st April 1983.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 38(5)(6) repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39 Short title and extent.
(1) This Act may be cited as the Local Government Finance Act 1982.
(2) This Act extends to England and Wales only.

SCHEDULES

SCHEDULE 1 Rates and Precepts: Transitional Provisions
Section 7(3).
1 The following provisions of this Schedule apply where before the passing of this Act and whether before or after 1st April 1982—
(a) a rating authority or precepting authority has made or issued—
(i) a supplementary rate or supplementary precept for or in respect of a period beginning on or after that date; or
(ii) a rate or precept for or in respect of any such period other than a financial year; or
(b) a rating authority has made a rate (other than a supplementary rate or rate falling within sub-paragraph (a) above) by reference to a supplementary precept or precept falling within that sub-paragraph.
2 No rate or precept shall by virtue of section 3 of this Act be substituted for a supplementary rate or precept falling within paragraph 1(a)(i) above.
3 Where a rating authority has made a supplementary rate falling within paragraph 1(a)(i) above any sum paid by a ratepayer to the rating authority in respect of the supplementary rate (or so much of any sum so paid in respect of rates generally as is attributable to the supplementary rate)—
(a) shall be repaid if the ratepayer so requires; or
(b) if repayment is not required shall, as the rating authority may determine, either be repaid to him or credited against any liability of his for rates in respect of the hereditament in question.
4 Where a person as tenant or licensee of any premises—
(a) is liable to make payments (whether as part of his rent or otherwise) which vary or may vary according to the rates chargeable in respect of those premises; or
(b) is entitled to make deductions from his rent in respect of those rates.
he shall, where a rating authority has made a supplementary rate falling within paragraph 1(a)(i) above which affects those premises, be entitled to recover or, as the case may be, liable to make good any payment or deduction which he would not have been liable or entitled to make if that rate had not been made; and any sum which he is entitled to recover as aforesaid may, without prejudice to any other method of recovery, be deducted by him from any rent payable by him to the person by whom that sum was received.
5 Where a precepting authority has issued a supplementary precept falling within paragraph 1(a)(i) above any sum paid to that authority in respect of the precept shall be repaid if the authority to which the precept was issued so requires or, if repayment is not required, credited or otherwise dealt with as may be agreed between those authorities.
6 A rating or precepting authority which has made a rate or issued a precept falling within paragraph 1(a)(ii) above shall under section 3 of this Act make a rate or issue a precept in substitution for that rate or precept as if it were a rate or precept for a financial year but the estimated product of that rate or precept shall for the purposes of subsection (2) of that section be adjusted in such manner as the Secretary of State may direct.
7 (1) A rating authority which has made a rate falling within paragraph 1(b) above shall under section 3 of this Act make a rate in substitution for the rate falling within that paragraph.
(2) Where the precept by reference to which the original rate was made fell within paragraph 1(a)(i) above, the estimated product of the original rate shall for the purposes of subsection (2) of that section be calculated without reference to the precept.
(3) Where the precept by reference to which the original rate was made fell within paragraph 1(a)(ii) above—
(a) the rate substituted under the said section 3 shall be made by reference to the precept substituted pursuant to paragraph 6 above; and
(b) the estimated product of the original rate shall for the purposes of subsection (2) of that section be adjusted in such manner as the Secretary of State may direct.
(4) Where the precept by reference to which the original rate was made fell within paragraph 1(a)(ii) above and was issued under section 150(4) of the Local Government Act 1972 (expenses of parish and community councils) sub-paragraph (1) above shall not require the rating authority to make a substituted rate unless it considers that a substituted rate will be required for meeting the precept substituted pursuant to paragraph 6 above.
1972 c. 70.
8 (1) Where a rating authority has made a supplementary rate falling within paragraph 1(a)(i) above by reference to a supplementary precept falling within that provision it shall be entitled to recover from the precepting authority—
(a) its administrative expenses in making repayments or allowing credits under paragraph 3 above in respect of the supplementary rate; and
(b) its rate collection expenses in respect of that rate.
(2) Where a rating authority has made a rate falling within sub-paragraph (a)(ii) or (b) of paragraph 1 above by reference to a supplementary precept or precept falling within sub-paragraph (1)(a) of that paragraph it shall be entitled to recover from the precepting authority—
(a) its administrative expenses in making repayments or allowing credits under section 3(5) and (6) of this Act in respect of that rate; and
(b) any increase attributable to paragraph 6 or 7(1) above in its rate collection expenses for the financial year.
9 In this Schedule any expression which is also used in Part I of this Act has the same meaning as in that Part.

SCHEDULE 2 Block Grant: Receiver for the Metropolitan Police District
Section 10.

Interpretation
1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment of block grant
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of block grant
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustment of distribution of block grant
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rate Support Grant Reports
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary Reports
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustment of block grant total
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimates and calculations
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 2 repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 10 Group 2
SCHEDULE 3

Status

1 The Commission shall be a body corporate.

2 The Commission shall not be regarded as acting on behalf of the Crown and neither the Commission nor its members, officers or servants shall be regarded as Crown servants.

Functions of Secretary of State in relation to Commission

3 (1) The Secretary of State may give the Commission directions as to the discharge of its functions and the Commission shall give effect to any such directions.
(2) The Commission shall furnish the Secretary of State with such information relating to the discharge of its functions as he may require and for that purpose shall permit any person authorised by him to inspect and make copies of any accounts or other documents of the Commission and shall afford such explanation of them as that person or the Secretary of State may require.
(3) No direction shall be given by the Secretary of State and no information shall be required by him under this paragraph in respect of any particular body whose accounts are required to be audited in accordance with Part III of this Act; and before giving any direction under this paragraph the Secretary of State shall consult the Commission, such associations of local authorities as appear to him to be concerned or, as the case may require, such organisations connected with the health service as appear to him to be appropriate and (in either case) such bodies of accountants as appear to him to be appropriate.
Words substituted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 20(1), Sch. 4 para. 24(1)
(4) The Secretary of State shall publish any direction given by him under this paragraph.

Tenure of office of members

4 (1) Subject to the provisions of this paragraph, every member of the Commission shall hold and vacate his office in accordance with the terms of his appointment.
(2) Any member may resign by notice in writing to the Secretary of State, and the chairman or deputy chairman may by a like notice resign his office as such.
(3) The Secretary of State may remove a member from office if that member—
(a) has become bankrupt or made an arrangement with his creditors;
(b) is incapacitated by physical or mental illness;
(c) has been absent from meetings of the Commission for a period of six months otherwise than for a reason approved by the Secretary of State; or
(d) is in the opinion of the Secretary of State otherwise unable or unfit to discharge the functions of a member.
(4) If the chairman or deputy chairman ceases to be a member he shall also cease to be chairman or deputy chairman.

Remuneration etc. of members

5 (1) The Commission shall pay to each member such remuneration and allowances (if any) as the Secretary of State may determine.
(2) As regards any member in whose case the Secretary of State may so determine, the Commission shall pay or make provision for the payment of such sums by way of pension, allowances and gratuities to or in respect of him as the Secretary of State may determine.
(3) Where a person ceases to be a member otherwise than on the expiration of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the Commission shall pay as compensation to that person such amount as the Secretary of State may determine.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 3 para. 5(4) omitted (29.6.1996) by virtue of 1996 c. 10, s. 6(1)(2) and repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

House of Commons disqualification

6 In Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (disqualifying offices) there shall be inserted at the appropriate place in alphabetical order—

“Any member of the Audit Commission for Local Authorities in England and Wales in receipt of remuneration”.

1975 c. 24.

Staff

7 (1) The Commission shall appoint a chief officer who shall be known as the Controller of Audit and his appointment shall require the approval of the Secretary of State.
(2) The Commission shall appoint such other officers and servants as it considers necessary for the discharge of its functions.
(3) The Commission’s officers and servants (in this paragraph referred to as employees) shall be appointed at such remuneration and on such other terms and conditions as the Commission may determine.
(4) The Commission may pay such pensions, allowances or gratuities as it may determine to or in respect of any of its employees, make such payments as it may determine towards the provision of pensions, allowances or gratuities to or in respect of any of its employees or provide and maintain such schemes as it may determine (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any of its employees.
(5) The references in sub-paragraph (4) above to pensions, allowances or gratuities to or in respect of any employees include references to pensions, allowances or gratuities by way of compensation to or in respect of employees who suffer loss of office or employment.
(6) If an employee becomes a member of the Commission and was by reference to his employment by the Commission a participant in a pension scheme maintained by the Commission for the benefit of any of its employees, the Commission may determine that his service as a member shall be treated for the purposes of the scheme as service as an employee of the Commission whether or not any benefits are payable to or in respect of him by virtue of paragraph 5 above.
(7) Notwithstanding sub-paragraphs (1) and (3) above, the first Controller of Audit shall be appointed by the Secretary of State who shall determine the terms and conditions on which he is to be employed by the Commission.

8 (1) It shall be the duty of the Commission to make, by such date as the Secretary of State may determine, an offer of employment by the Commission to each person employed in the civil service of the State as a district auditor, assistant to a district auditor or otherwise in the district audit service whose name is notified to the Commission by the Secretary of State for the purposes of this paragraph; and the terms of the offer must be such that they are, taken as a whole, not less favourable to the person to whom the offer is made than the terms on which he is employed on the date on which the offer is made.
(2) An offer made in pursuance of this paragraph shall not be revocable during the period of three months beginning with the date on which it is made.
(3) Where a person becomes an officer or servant of the Commission in consequence of this paragraph, then, for the purposes of the Employment Rights Act 1996, his period of employment in the civil service of the State shall count as a period of employment by the Commission and the change of employment shall not break the continuity of the period of employment.
Words in Sch. 3 para. 8(3) substituted (22.8.1996) by 1996 c. 18, ss. 240, 243, Sch. 1 para. 19 (with ss. 191-195, 202)
(4) Where a person ceases to be employed as mentioned in sub-paragraph (1) above—
(a) on becoming an officer or servant of the Commission in consequence of this paragraph; or
(b) having unreasonably refused an offer made to him in pursuance of this paragraph,
he shall not, on ceasing to be so employed, be treated for the purposes of any scheme under section 1 of the Superannuation Act 1972 as having been retired on redundancy.
1972 c. 11.

Financial provisions

9 Subject to sub-paragraph (2) below it shall be the duty of the Commission so to manage its affairs that its income from fees and otherwise will, taking one year with another, be not less than its expenditure properly chargeable to its income and expenditure account.
(2) Sub-paragraph (1) above shall apply separately with respect to—
(a) the functions of the Commission under section 28AA of this Act in relation to the discharge of social services functions;
(aza) its functions under section 28AB of this Act in relation to the discharge of housing benefit administration functions and council tax administration functions;
Sch. 3 para. 9(2)(aza) inserted (1.7.1997) by 1997 c.47, s. 32, Sch. 1 para. 1: S.I. 1997/1577, art. 2, Sch.
(aa) its functions under sections 28B and 28C relating to registered social landlords;
Sch. 3 paras. 9(2)(aa)(ab) inserted (1.10.1996) after sub-para. (a) by 1996 c.52, s. 55(1), Sch. 3 para. 2(2) (with s. 51(4)); S.I. 1996/2402, art. 3 (with Sch. para. 1)
(ab) its functions under section 28D relating to such landlords;
(ac) its functions under section 41 of the Education Act 1997 (inspections of local education authorities);
Sch. 3 para. 9(2)(ac) inserted (1.9.1997) by 1997 c. 44, s. 57(1), Sch. 7 para. 5; S.I. 1997/1468, art. 2, Sch. 1 Pt.II
(b) its functions in relation to health service bodies; and
(c) its other functions.
Sch. 3 para. 9(2) inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 20(1), Sch. 4 para. 24(2)
Sch. 3 para. 9(2)(a)-(c) and “-” immediately preceding it substituted for words in Sch. 3 para. 9(2) (29.4.1996) by 1996 c. 10, s. 2(2)
Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 20(1), Sch. 4 para. 24(2)

10 (1) The Commission may borrow—
(a) from the Secretary of State; or
(b) temporarily (by way of overdraft or otherwise) and with his consent, from any other person,
such sums as it may require for the purpose of meeting its obligations and discharging its functions.
(2) The aggregate amount outstanding in respect of the principal of any sums borrowed by the Commission under sub-paragraph (1) above shall not exceed £4 million or such greater sum, not exceeding £20 million, as the Secretary of State may from time to time by order specify; and no such order shall be made unless a draft of the order has been approved by a resolution of the House of Commons.
(3) The Secretary of State may lend to the Commission any sums which it has power to borrow under sub-paragraph (1)(a) above; and the Treasury may issue to the Secretary of State out of the National Loans Fund any sums necessary to enable him to make loans under this sub-paragraph.
(4) Loans made under sub-paragraph (3) above shall be repaid to the Secretary of State at such times and by such methods, and interest on the loans shall be paid to him at such times and at such rates, as he may from time to time determine.
(5) All sums received by the Secretary of State under sub-paragraph (4) above shall be paid into the National Loans Fund.
(6) The Secretary of State shall prepare, in respect of each financial year and in such form as the Treasury may direct, an account—
(a) of any sums issued to him under sub-paragraph (3) above or received by him under sub-paragraph (4) above; and
(b) of the disposal by him of any sums so received,
and shall send the account to the Comptroller and Auditor General not later than the end of the month of March following the financial year to which it relates; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.
Word in Sch. 3 para 10(6) substituted (29.4.1996 with effect as mentioned in s. 3(4) of the amending Act) by 1996 c. 10, s. 3(3)(a)(4)
(7) Any consent, loan or determination by the Secretary of State under this paragraph shall require the approval of the Treasury.

11 (1) The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of the payment of interest on and the discharge of any other financial obligation in connection with any sums which the Commission borrows from a person other than the Secretary of State.
Words substituted by Miscellaneous Financial Provisions Act 1983 (c. 29, SIF 99:1), s. 4(1), Sch. 2
(2) Immediately after a guarantee is given under this paragraph, the Treasury shall lay a statement of the guarantee before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given, the Treasury shall lay before each House of Parliament a statement relating to that sum as soon as possible after the end of each financial year beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal sum and in respect of interest on it is finally discharged.
(3) Any sums required by the Treasury for fulfilling a guarantee under this paragraph shall be charged on and issued out of the Consolidated Fund.
(4) If any sums are issued in fulfilment of a guarantee given under this paragraph, the Commission shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury so direct in or towards repayment of the sums so issued and payments of interest, at such rates as the Treasury so direct, on what is outstanding for the time being in respect of sums so issued.
(5) Any sums received by the Treasury in pursuance of sub-paragraph (4) above shall be paid into the Consolidated Fund.

12 (1) The Commission shall keep proper accounts and other records in relation to its accounts and shall prepare in respect of each financial year a statement of account in such form as the Secretary of State may, with the approval of the Treasury, direct.
(2) The statement of account prepared by the Commission in respect of each financial year shall be submitted to the Secretary of State before such date as he may, with the approval of the Treasury, direct.
(3) The Secretary of State shall, on or before 31st March in each year, transmit to the Comptroller and Auditor General the statement of account prepared by the Commission for the financial year last ended.
Words in Sch. 3 para. 12(3) substituted (29.4.1996 with effect as mentioned in s. 3(4) of the amending Act) by 1996 c. 10, s. 3(3)(b)(4)
(4) The Comptroller and Auditor General shall examine and certify the statement of account transmitted to him under sub-paragraph (3) above and shall lay before Parliament copies of that statement together with his report thereon.

Proceedings

13 (1) The Commission shall regulate its own proceedings.
(2) The validity of any proceedings of the Commission shall not be affected by any vacancy among its members or by any defect in the appointment of any of its members.

14 (1) The application of the seal of the Commission shall be authenticated by the signature of the chairman or of some other member authorised either generally or specially by the Commission for that purpose.
(2) Any document purporting to be a document duly executed under the seal of the Commission shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

Annual report

15 (1) The Commission shall publish an annual report on the discharge of its functions.
(2) Copies of each annual report shall be sent by the Commission to the Secretary of State who shall lay copies of it before each House of Parliament.
Sch. 3 repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

SCHEDULE 4 . . .
Sch. 4 repealed by Water Act 1989 (c. 15, SIF 130), ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 41(1), 57(6), 58, Sch. 27 Pt. I
Schedule 5

The Public Health Act 1875
1 In section 265 of the Public Health Act 1875, for the words from “make any payment” onwards there shall be substituted the words “ make any payment in pursuance of section 19 or 20 of the Local Government Finance Act 1982 ”.
1875 c. 55.

The Police Act 1964
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 5 para, 2 repealed (1.4.1995) by 1994 c. 29, s. 93, Sch. 9 Pt. I; S.I. 1994/3262, art. 4, Sch.

The Transport Act 1968
3 For section 14(3) of the Transport Act 1968 there shall be substituted—

“(3) As soon as the accounts of the Executive for any accounting period have been audited in accordance with Part III of the Local Government Finance Act 1982 they shall send a copy of any statement of accounts prepared by them for that period pursuant to regulations under section 23 of that Act to the Minister, to the Authority for the designated area and to each of the councils of the constituent areas, together with a copy of the auditor’s opinion on that statement.”

1968 c. 73.
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 5 para. 4 repealed by London Regional Transport Act 1984 (c. 32, SIF 126), s. 71(3)(b), Sch. 7

The Local Government Act 1972
5 (1) In section 80(1)(e) of the Local Government Act 1972, for the words “Part VIII below” there shall be substituted the words “ Part III of the Local Government Finance Act 1982 ”.
1972 c. 70.
(2) In section 86(b) of that Act, for the words “by virtue of an order under Part VIII below, a surcharge” there shall be substituted the words “ under Part III of the Local Government Finance Act 1982 or by virtue of ”.
(3) In section 87(1)(d) of that Act—
(a) for the words “by virtue of an order under Part VIII below or a surcharge or” there shall be substituted the words “ under Part III of the Local Government Finance Act 1982 or by virtue of a ”; and
(b) for the words “order, surcharge or” there shall be substituted the words “ relevant order or decision under that Part of that Act or (as the case may be) that ”.
(4) In section 137(7) of that Act, for the words from “and section” onwards there shall be substituted the words “ and section 24 of the Local Government Finance Act 1982 (rights of inspection) shall apply in relation to any such separate account of a local authority as it applies in relation to any statement of accounts prepared by them pursuant to regulations under section 23 of that Act. ”
(5) In section 246(15) of that Act, for the words “Sections 154 to 168 above” there shall be substituted the words “ Section 168 above ”.
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 5 para. 6 repealed by Water Act 1989 (c. 15, SIF 130), ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 41(1), 57(6), 58, Sch. 27 Pt. I

The Land Drainage Act 1976
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 5 para. 7 repealed (1.12.1991) by Water Consolidation (Consequential Provisions) Act 1991 (c. 60, SIF 130), ss. 3, 4(2), Sch. 3 PartI (with Sch. 2 paras. 10, 14(1), 15)

The Local Government, Planning and Land Act 1980
8 (1) In section 2(7) of the Local Government, Planning and Land Act 1980, for paragraph (b) there shall be substituted—

“(b) its inclusion in a statement of accounts prepared by an authority to which this section applies in accordance with regulations under section 23 of the Local Government Finance Act 1982 or in an abstract of accounts prepared by such an authority in accordance with regulations under section 105 of the Local Government (Scotland) Act 1973; or”.

1980 c. 65.
(2) In section 14(1) of that Act, for the words “section 166 of the Local Government Act 1972” there shall be substituted the words “ section 23 of the Local Government Finance Act 1982 ”.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sch. 5 para. 8(3) repealed by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(2), Sch. 12 Pt. I
Sch. 5. repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

Schedule 6 Repeals
Section 38.
Part I
Chapter	Short title	Extent of repeal
1967 c. 9.	The General Rate Act 1967.	In section 2(4)(b) the words “, or any part of the year”.
		In section 3, in subsection (3) the words “Subject to subsection (5) of this section” and the words from “and ending” onwards, in subsection (4) the words “Where a rate is made for a period exceeding three months” and subsection (5).
		In section 7, in subsection (5) the words from “but” onwards and subsection (6).
		in section 12, in subsections (6) and (9), the words “or half-year as the case may be,” wherever they occur and in subsection (9)(b) the words “or half-year” in the second place where they occur.
		Section 48(2).
		In section 115(1), in the definition of “rate period” the words “or part of a year, being a year or part”.
		In Schedule 6, in paragraph 10(b) the words “or comprising”.
		In Schedule 7, in paragraph 14(b) the words “or comprising”.
		In Schedule 10, in paragraph 5 the words from the beginning of sub-paragraph (a) to “in every case” in sub-paragraph (c).
1972 c. 70.	The Local Government Act 1972.	In section 149(1) the words from “and may at any time” onwards.
1976 c. 70.	The Land Drainage Act 1976.	Section 46(4).
		Section 49(4).
1980 c. 65.	The Local Government, Planning and Land Act 1980.	Section 33(3).
Part II
Chapter	Short title	Extent of repeal
1980 c. 65.	The Local Government, Planning and Land Act 1980.	In section 59, subsections (2) and (3) and in subsection (6)(c) the word “and”.
		In Schedule 11, paragraph 8(3) and (4).
Part III
Chapter	Short title	Extent of repeal
1980 c. 65.	The Local Government, Planning and Land Act 1980.	In section 56(8), in the definition of “grant-related poundage” the words “subject to paragraph 6 of Schedule 11 below”.
		Section 64.
		Schedule 11.
1982 c. 32.	The Local Government Finance Act 1982.	In section 8, in subsection (3) the words from “and by paragraph 8” to “District)”, in subsection (5) the words “and sub-pararaphs (3) and (4) of the said paragraph 8” and the words following the semi-colon, in subsection (6) the words “and paragraph 8” and “and sub-paragraphs (9) to (11) of that paragraph”, in subsection (7) the words “or paragraph 8” and subsection (11).
Part IV
Sch. 6 Pt. IV repealed (11.9.1998) by 1998 c. 18, ss. 54(3), 55(2), Sch. 5

Act wholly in force at Royal Assent.
S. 3(4): For the words “any authority” there is substituted “or section 8 of the Local Government Finance Act 1987, any authority to which the duty in section 8(1) of that Act does not apply and” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11, Sch. 4 paras. 6(1)(2), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.
S. 3(4)–(6) applied by Norfolk and Suffolk Broads Act 1988 (c. 4, SIF 81:1), ss. 14(12), 23(2), 27(2)
S. 3(5): After the words “this section” there is inserted the words “or section 8 of the Local Government Finance Act 1987” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11(1), Sch. 4 paras. 6(1)(3), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.
S. 3(7): After the words “this section” there is inserted the words “or section 8 of the Local Government Finance Act 1987” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11(1), Sch. 4 paras. 6(1)(3), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.
S. 4 extended by London Regional Transport Act 1984 (c. 32, SIF 126), s. 14(7)
S. 4 excluded by Airports Act 1986 (c. 31, SIF 9), ss. 34(2), 85(4)
Pt. III (ss. 11–36): certain functions transferred by S.I. 1989/814, art. 11(b), by S.I. 1989/1359, reg. 11(b) and by S.I. 1989/2470, art. 12(b)
Pt. III (ss. 11-36): certain functions transferred by S.I. 1991/517, arts. 2(d), 3 (b).
Pt. III (ss. 11–36) extended by Local Government Act 1985 (c. 51, SIF 81:1), ss. 63(1)(2), 79(1)(8)
Pt. III (ss. 11–36) amended by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 66(5)(b)
Pt. III (ss. 11-36) amended (29.4.1996) by 1996 c. 10, s. 3(5)(a)
Pt. III amended (28.11.1994) by S.I. 1994/2825, regs. 19, 23
Pt. III (ss. 11–36) modified (16.1.1990 to the extent mentioned in S.I. 1989/2445, art. 4, otherwise 7.10.1993) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 70(2)(4); S.I. 1993/2410, art.3
Pt. III (ss. 11-36) modified (3.4.1995) by 1994 c. 19, S. 66(7), Sch. 17 Pt. II para. 12(4); S.I. 1995/852, art. 9(1), Sch. 5
Pt. III (ss. 11-36) extended (6.3.1992) by Local Government Act 1992 (c. 19), s. 29(1).
Pt. III (ss. 11-36) extended (5.7.1994) by 1994 c. 19, s. 39, Sch. 13 para. 16(1)
Pt. III (ss. 11-36) extended (1.4.1995) by S.I. 1995/401, art. 12(1)
Pt. III (ss. 11-36) applied (4.5.1995 until 1.4.1996) by S.I.1995/1042, arts. 2,4(1)
Power to apply Pt. III (ss. 11-36) conferred (1.9.1997) by 1997 c. 50, s. 44(1), Sch. 4 para. (f); S.I. 1997/1930, art. 2(2)(m)
The text of Sch. 3 para. 6 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.
Sch. 3 para. 10(6) amended (29.4.1996) by 1996 c. 10, s. 3(5)(b)
Sch. 3 para. 12(3) amended (29.4.1996) by 1996 c. 10, s. 3(5)(c)
The text of Sch. 6 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.