Citation, commencement, interpretation and extent

1.-(1) These Regulations may be cited as the Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2000 and shall come into force on 5th February 2000.

(2) In these Regulations, "the 1992 Act" means the Local Government Finance Act 1992.

(3) These Regulations have effect in relation to the financial year beginning on 1st April 2000 and in relation to authorities in England only(3).

Budget requirement (billing authorities)-calculation

2. Section 32 of the 1992 Act shall be read as if-�

(a)in paragraph (e) of subsection (2)(4), for the words from " pursuant to a direction under that subsection" to the end of that paragraph there were substituted the following-�

"either-�

(i)pursuant to a direction under that subsection relating to the difference between amounts in respect of community charges credited and charged to a revenue account for any earlier financial year, or

(ii)pursuant to the direction under that subsection which is contained in the Collection Fund (Council Tax Benefit) (England) Directions 2000 made by the Secretary of State on 2nd February 2000(5).";

(b)for subsection (12)(6) there were substituted the following subsection-�

"(12) In this section and section 33 below-�

"police grant" means so much of the grant payable in accordance with paragraph 3.1 of the relevant police grant report as excludes the amounts shown in column (b) of the Table set out below that paragraph;

"relevant special grant" means any of the following grants, that is to say-�

Basic amount of council tax (billing authorities)-calculation

3. Section 33(3)(9) of the 1992 Act shall be read as if-�

(a)there were substituted for the formula the following-�

(b)there were added after the definition of the figure Z the following-�

• "E is the same amount as it is in the direction mentioned in section 32(2)(e)(ii) above (being an amount representing the authority's contribution to council tax benefit resulting from the increase in its council tax)".

Budget requirement (major precepting authorities other than the Greater London Authority)-calculation

4. Paragraph (a) of section 43(2) of the 1992 Act(10) shall be read as if for the words from "other than expenditure which it estimates " to the end of that paragraph there were substituted the following-�

"other than-�

(i)expenditure which it estimates will be so incurred in pursuance of regulations under section 99(3) of the 1988 Act, and

(ii)expenditure which it estimates will be so incurred in making payments to billing authorities in accordance with section 31(3) of the Local Government Act 1999(11);".

Basic amount of council tax (major precepting authorities other than the Greater London Authority)-calculation

5. Section 44(3)(12) of the 1992 Act shall be read as if-�

(a)the word "and" at the end of paragraph (a) were omitted;

(b)there were added after paragraph (b) the following-�

"and

(c)reduced by the aggregate amount of any sums which the authority estimates will be paid by it in the year to billing authorities in accordance with section 31(3) of the Local Government Act 1999.".

Budget requirement (Greater London Authority)-calculations

6. Section 85 of the Greater London Authority Act 1999(13) shall be read as if after subsection (4) there were inserted the following subsection-�

"(4A) The expenditure aggregated under subsection (4) above shall not include expenditure that will be incurred in making payments to billing authorities in accordance with section 31(3) of the Local Government Act 1999.".

Basic amount of council tax (Greater London Authority)-calculations

7. Section 89 of the Greater London Authority Act 1999(14) shall be read as if after subsection (6) there were inserted the following subsection-�

"(6A) The aggregate of the sums mentioned in item P2 in subsection (4) shall be reduced by the aggregate amount of any sums which the Secretary of State (or where the calculation is made after 2nd July 2000, the Authority) estimates will be paid by the Authority in the year to billing authorities in accordance with section 31(3) of the Local Government Act 1999.".

Explanatory Note

(This note is not part of the Regulations)

Sections 32 and 43 of the Local Government Finance Act 1992 ("the 1992 Act") set out respectively how a billing authority and a major precepting authority other than the Greater London Authority are to calculate their budget requirements for a financial year, and sections 33 and 44 of that Act set out respectively how a billing authority and such a major precepting authority are to calculate the basic amount of their council tax. For the Greater London Authority, the budget requirement is calculated under section 85 of the Greater London Authority Act 1999 ("the 1999 Act") and the additional amount of council tax in respect of the Metropolitan Police Authority is calculated under section 89 of that Act.

These Regulations, which apply for the financial year beginning on 1st April 2000, modify these provisions as they apply to authorities in England in order to provide for the limitation of council tax benefit subsidy. The amount required to be transferred by a billing authority from its general fund to its collection fund (in accordance with a direction made under section 98(5) of the Local Government Finance Act 1988)-�

(a)is deducted from expenditure in the calculation of the budget requirement under section 32 (regulation 2), but

(b)increases the basic amount of council tax calculated under section 33 (regulation 3).

Similarly, an estimate of the payment that may be required from a precepting authority to a billing authority-�

(c)is excluded from the calculation of the budget requirement under section 43 of the 1992 Act and section 85 of the 1999 Act (regulations 4 and 6), but

(d)increases the basic amount of council tax under section 44 of the 1992 Act and the additional amount of council tax for the Metropolitan Police Authority under section 89 of the 1999 Act (regulations 5 and 7).

In addition, regulation 2(b) modifies for authorities in England the definitions in section 32 of the 1992 Act of "police grant" and "relevant special grant". The amended definitions apply to that section, and also to sections 33, 43 and 44 of the 1992 Act. The same definition of relevant special grant applies to the corresponding sections of the 1999 Act (under section 99 of that Act).

Copies of the Reports referred to in regulation 2(b) may be obtained from the Stationery Office as follows:

Special Grant Report (No. 52) approved on 3rd February 2000 ISBN 0 10 556653 5, price £4.70;

The Police Grant Report (England and Wales) 2000/2001 approved on 3rd February 2000 ISBN 0 10 556651 9, price £4.70.

The Collection Fund (Council Tax Benefit) (England) Directions 2000 which are referred to may be obtained from the Department of the Environment, Transport and the Regions, Eland House, Bressenden Place, London SW1E 5DU.