Sections 43 and 44 of the Local Government Finance Act 1992 (“the 1992 Act”) prescribe the rules according to which major precepting authorities must calculate their budget requirements and the basic amount of their council tax for each financial year. In making these calculations, authorities must take into account certain sums which they estimate will be payable to them in respect of the year.

These Regulations modify sections 43 and 44 of the 1992 Act such that police authorities in Wales (which are major precepting authorities for the purposes of the 1992 Act) must take into account any sums in the form of additional unhypothecated revenue payments which they may receive from the Home Office for the financial year 2004/5 (as well as the other sums referred to in these sections) when making their budget requirement calculations and council tax calculations for that year.