Abolition of Domestic Rates Etc. (Scotland) Act 1987 (repealed)

Section 22.

SCHEDULE 3F1 S Reduction of Community Charges

Textual Amendments applied to the whole legislation

F1 Act repealed (prosp.) by Local Government Finance Act 1992 (c. 14), ss. 117(2), 119(2)(e), Sch.14 (with s. 118(1)(2)(4) and saving in s. 118(3) and subject to a saving for Sch. 2 para. 7A (16.8.1993) by S.I. 1993/1780, art. 2 and subject to amendments (11.6.1996) by 1995 c. 18, s. 41(4), Sch. 2 para. 10; S.I. 1996/1509, art. 2, Sch. and (29.11.1999 for specified purposes, otherwise prosp.) by 1998 c. 14, ss. 86(1), 87(2), Sch. 7 para. 15; S.I. 1999/3178, art. 2(1)(a)(2) (subject to transitional provisions in Schs. 21-23)

The repeal of the Act by Local Government Finance Act 1992 (c. 14) was brought into force (1.4.1992) as regards Sch. 1 para. 19 by S.I. 1992/818, para. 2(b), Sch.

The repeal of the Act by Local Government Finance Act 1992 (c. 14) was brought into force (1.10.1992) as regards ss. 3A, 9, 10(7A), 11B, 28, Sch. 2 paras. 1(2), 2(1), Sch. 5 paras. 2-5, 9, 10, 14, 15, 17, 18, 19, 21, 25 by S.I. 1992/2183, art. 2(d), Sch. (with savings in art. 3)

The repeal of the Act by Local Government Finance Act 1992 (c. 14) was brought into force (1.4.1993) as regards ss. 1-7, 14, 18(2A), 20(10), 25(1)(3), words in s. 26(1), ss. 26(2), 27, 33, Sch. 1, Sch. 3 paras. 1-4, 5(1), 7, Sch. 5 paras. 1, 6, 12, 13, 16, 19A, 20, 22-24, 26-49 by S.I. 1993/575, art. 2, Sch. (with savings in arts. 4, 5(b))

Parliamentary proceedings for reduction of personal community chargesF1 S

1 (1) If the Secretary of State is satisfied that the total estimated expenses mentioned in section 9(2) of this Act of a local authority in respect of any financial year are excessive and unreasonable, he may make and cause to be laid before the Commons House of Parliament a report proposing a reduction in the amount of the personal community charge determined by the authority in respect of that year and stating—

(a) the amount of the reduction so proposed; and

(b) his reasons for proposing that reduction.

(2) A report under sub-paragraph (1) above shall set out any representations made by the local authority to which it relates with respect to the matters referred to in the report or a summary of these representations.

(3) In determining, for the purposes of sub-paragraph (1) above, whether, in relation to any financial year, the total estimated expenses of a local authority are excessive and unreasonable, the Secretary of State—

(a) shall have regard to the financial and other relevant circumstances of the area of the authority;

(b) may take into account the transfer of any sum between the local authority’s general fund and any special fund or account maintained by them under any enactment;

(c) may have regard—

(i) to the expenditure or estimated expenses, in that or any preceding year, of other local authorities which the Secretary of State is satisfied are comparable with the local authority concerned;

(ii) to general economic conditions; and

(iii) to such other financial, economic, demographic, geographical and like criteria as he considers appropriate; and

(d) may leave out of account such categories of estimated expenses as he thinks fit.

(4) In determining what amount to state under sub-paragraph (1)(a) above, the Secretary of State may have regard to any balances in the general fund of the local authority.

Procedure prior to Parliamentary proceedingsF1 S

2 The Secretary of State shall not make and cause to be laid a report under paragraph 1 above without having afforded to the local authority to which the report relates an opportunity of making representations on—

(a) whether the total estimated expenses of the authority are excessive and unreasonable;

(b) the amount of the reduction proposed in the personal community charge; and

(c) his reasons for proposing that reduction,

but need not afford them such an opportunity where he has, in proposing the reduction, taken account of representations made by the authority in relation to a reduction previously proposed by him in that personal community charge.

Effect of approval of reportF1 S

3 (1) If a report under paragraph 1 above is approved by the Commons House of Parliament, the local authority to which it relates shall forthwith determine under this sub-paragraph a new personal community charge less, by the amount of the reduction proposed in the report or by such smaller amount as the Secretary of State may agree, than the personal community charge determined by them under section 9(2) of this Act.

(2) Where, for any reason whatsoever, by the twenty-eighth day after the Commons House of Parliament approve a report, the local authority to whom the report relates have not made a determination required by sub-paragraph (1) above, the authority shall be deemed to have determined on that day a personal community charge under sub-paragraph (1) above such that the reduction proposed in the report is effected.

(3) If a local authority determine, or are deemed to have determined, a personal community charge under sub-paragraph (1) above—

(a) the amount of that personal community charge and not the amount determined by them under section 9 of this Act shall be the amount of their personal community charge;

(b) the amounts of their standard and collective community charges shall be recalculated accordingly and these amounts, as so recalculated, and not the amounts calculated respectively under sections 10 and 11 of this Act shall be the respective amounts of their standard and collective community charges; and

(c) their community charges shall be levied (and the rights and liabilities of persons liable to those charges shall be construed) accordingly.

Provisions supplementary to paragraphs 1 to 3F1 S

4 (1) A report under paragraph 1 above may relate to more than one local authority and, if a report so relating is approved by a resolution of the Commons House of Parliament, paragraph 3 above shall apply in relation to each of the authorities to which the report relates.

(2) Any reference in this Act (except in paragraph 3 above and paragraphs 6 and 7 below) and in any other enactment, whether passed before or after the passing of this Act, to such community charge as is determined under section 9 or calculated under section 10 or 11 of this Act shall be construed as respectively including a reference to such community charge as has been determined, or is deemed to have been determined, under sub-paragraph (1) of paragraph 3 above or has been recalculated under sub-paragraph (3) of that paragraph.

(3) Paragraph 6 of Schedule 4 to this Act shall apply for the purposes of the Secretary of State’s functions under this Schedule as it applies under that paragraph for the purposes of his functions in relation to revenue support grants.

Redetermination of personal community chargeF1 S

5 (1) Where a local authority have, in respect of any financial year, determined a personal community charge under section 9 of this Act but the Secretary of State, under paragraph 1 above, makes and causes to be laid before the Commons House of Parliament, a report as regards them or they have reason to believe that such report may be so laid, they may, at any time before such report is approved by the Commons House of Parliament, reassess the total estimated expenses mentioned in subsection (2) of that section and, subject to that subsection, determine under this paragraph in respect of the financial year such personal community charge, lower than that determined under that subsection, as the Secretary of State may agree.

(2) If a local authority determine a personal community charge under sub-paragraph (1) above—

(a) the amount of that personal community charge and not the amount determined by them under section 9 of this Act shall be the amount of their personal community charge:

(b) the amounts of their standard and collective community charges shall be recalculated accordingly and these amounts, as so recalculated, and not the amounts calculated respectively under sections 10 and 11 of this Act shall be the respective amounts of their standard and collective community charges; and

(c) their community charges shall be levied (and the rights and liabilities of persons liable to those charges shall be construed) accordingly.

(3) Any reference in this Act (except in this paragraph and paragraphs 6 and 7 below) and in any other enactment to such community charge as is determined under section 9 or calculated under section 10 or 11 of this Act shall be construed as including a reference to such community charge as is determined under sub-paragraph (1) above or recalculated under sub-paragraph (2) above.

SupplementaryF1 S

6 S Where a local authority have determined or are deemed to have determined their personal community charge under paragraph 3(1) above or determine their personal community charge under paraagraph 5(1) above, they shall, to such extent and in accordance with such procedure as may be prescribed—

(a) repay sums paid by way of any community charge for which any person was liable while their personal community charge remained as determined by them under section 9 of this Act or for which he would have been liable had it so remained; and

(b) pay the cost of levying and collecting the community charges levied in consequence of the determination or deemed determination of their personal community charge under paragraph 3(1) or 5(1) above.

Prohibition of using loans fund to offset reduced personal community chargeF1 S

7 (1) A local authority who, in respect of any financial year—

(a) determine or are deemed to have determined, or anticipate that they will be required to determine, a personal community charge under paragraph 3(1) of this Schedule; or

(b) determine a personal community charge under paragraph 5(1) of this Schedule,

shall neither wholly nor partially offset the difference between—

(i) the amount produced by their community charges in respect of that year; and

(ii) the amount which would have been so produced had their personal community charge been determined by them under section 9 of this Act,

with sums advanced from their loans fund:

Provided that such offsetting may nevertheless be permitted by the Secretary of State in any case on such terms and conditions as he considers appropriate.

(2) if the Secretary of State is of the opinion that sub-paragraph (1) above, or any term or condition imposed under the proviso thereto, has been contravened, the local authority shall, on such opinion being intimated to them, reimburse their loans fund forthwith or within such time as the Secretary of State may allow.

(3) In this paraagraph “loans fund” means the loans fund established under Schedule 3 to the Local M1 Government (Scotland) Act 1975.

Marginal Citations

M1 1975 c. 30.