Local Government Finance Act 1987 (repealed)

Every local authority shall keep for each year an account, to be known as—

In this Part of this Act “rate fund revenue account” means an account kept by virtue of subsection (1) above.

The items of account debited to the rate fund revenue account of an authority shall include all items of defined revenue expenditure, and the items of account credited to the rate fund revenue account of an authority shall include all items of defined revenue income; and the proper practices to be observed in compiling accounts shall have effect accordingly.

For the purposes of subsection (3) above defined revenue expenditure is all expenditure which is (or is to be) met by the authority concerned and which is of a revenue nature, other than—

For the purposes of subsection (3) above defined revenue income is all income which is (or is to be) received by the authority concerned and which is of a revenue nature, other than—

The accounts are the following accounts kept by the authority concerned—

Where the authority concerned is the Common Council expenditure does not fall within subsection (4) above unless (in addition to meeting the provisions of that subsection) it falls to be defrayed out of the general rate or out of income falling to be credited in aid of the general rate.

Where the authority concerned is the Common Council income does not fall within subsection (5) above unless (in addition to meeting the provisions of that subsection) it is income from the general rate or income falling to be credited in aid of the general rate.

This section shall have effect in relation to future years.

The practices to be observed in deciding as regards a particular year the matters mentioned in subsection (2) below shall be the practices mentioned in subsection (3) below.

The matters are—

The practices are the proper practices applicable to accounts (by whatever name known) kept by local authorities for the year beginning in 1986 for the entry of items of the same kind as those falling to be entered in rate fund revenue accounts, but taking into account variations of practice occurring from time to time.

The Secretary of State may specify in respect of any year kinds of expenditure or income which are to be regarded as of a revenue nature for the purpose of debiting or crediting items of account to a rate fund revenue account.

Before making a specification under subsection (4) above the Secretary of State shall consider the practices mentioned in subsection (3) above, but such a specification may override those practices.

Subsection (1) above shall have effect subject to section 1(3) above and to any specification under subsection (4) above.

For the purposes of Part VI of the 1980 Act relevant expenditure of a local authority in relation to any future year is the aggregate of the debit items of account for the year—

For the purposes of subsection (1) above the debit items of account for a year are the items of account (whether of expenditure or otherwise but excluding excepted items) debited to the authority’s rate fund revenue account for the year.

For the purposes of subsection (1) above the credit items of account for a year are the items of account (whether of income or otherwise but excluding excepted items) credited to the authority’s rate fund revenue account for the year.

For the purposes of subsection (2) above the following are excepted items—

For the purposes of subsection (3) above the following are excepted items—

Subsection (1) above shall have effect subject to any enactment (whenever passed) having the effect that anything is, or is not, to be treated for the purposes of Part VI of the 1980 Act as relevant expenditure of a local authority in relation to the year concerned.

For the purposes of Part VI of the 1980 Act the total expenditure of a local authority in relation to any future year is the expenditure which is for those purposes the authority’s relevant expenditure in relation to the year—

The Secretary of State may specify in respect of the year concerned the manner in which, and the factors by reference to which, the amount of any addition or subtraction specified under subsection (1) or (7) above shall be calculated; and an addition or subtraction specified under subsection (1) or (7) above may or may not represent an item of account debited or credited to the authority’s rate fund revenue account for the year.

In relation to any future year subsections (7) and (8) above shall have effect instead of the definition of “total expenditure” in section 56(8) of the 1980 Act.

For the purposes of subsections (5) and (7) above relevant grants are grants mentioned in section 54(2)(a), (b) or (c) of the 1980 Act other than those mentioned in sub-paragraph (i), (ii) or (iii) of section 54(2)(a).

Anything done by the Secretary of State before the passing of this Act for the purposes of the relevant provisions in relation to any of the initial years or intermediate years shall be deemed to have been done in compliance with those provisions.

In subsection (1) above “the relevant provisions” means Part VI of the 1980 Act, section 8 of and Schedule 2 to the Local Government Finance Act 1982, sections 2 and 3 of the Education Act 1986 and section 2 of the Rate Support Grants Act 1986.

Any basic block grant calculation made after the passing of this Act in relation to any of the initial years shall be made by reference to the contents of, and the information taken into account by the Secretary of State in making, the last supplementary report made for the year concerned before the passing of this Act; and this subsection shall be applied separately in England and Wales.

For the purposes of subsection (3) above a basic block grant calculation is a calculation made for the purposes of section 66(2) of the 1980 Act of an amount of block grant payable, without taking account of section 63 of and Schedule 10 to that Act (education adjustments).

In relation to any intermediate year—

Subsection (1) above shall have effect notwithstanding any decision of a court (whether before or after the passing of this Act) purporting to have a contrary effect.

Section 3 above shall apply in relation to intermediate years as it applies in relation to future years, and in its application by virtue of this section subsections (2) and (3) below shall apply.

In subsections (1), (7) and (9) the references to a future year shall be read as references to an intermediate year.

In subsections (2), (3), (7) and (8) the references to items debited (or credited) to the authority’s rate fund revenue account for the year shall be read as references to items which would by virtue of sections 1 and 2 above have been debited (or credited) to the account the authority would have been required to keep under those sections for the year if they had had effect in relation to the year.

In the application (by virtue of subsection (3) above) of sections 1 and 2 above in relation to an intermediate year, section 2 shall have effect as if for subsection (3) there were substituted—

In the application (by virtue of subsection (3) above) of sections 1 and 2 above in relation to an intermediate year beginning in 1983, 1984 or 1985, section 1 shall have effect as if for “a joint authority” in subsection (1)(c) there were substituted “the Greater London Council.”

This section shall have effect as regards anything falling to be done after (but not as regards anything done before) the passing of this Act.

For the purposes of any order made before the passing of this Act under section 2(3) of the 1984 Act any total of relevant expenditure there mentioned shall be deemed to have been estimated in compliance with the provisions of Part VI of the 1980 Act.

Anything done by the Secretary of State before the passing of this Act for the purposes of Part I of the 1984 Act in relation to the financial year beginning in 1985 or that beginning in 1986 shall be deemed to have been done in compliance with the provisions of that Part.

For the purposes of section 7 below and Schedule 2 to this Act— shall, if made before the passing of this Act, be deemed to have been made in compliance with the provisions of Part I of the 1984 Act.

This section shall have effect notwithstanding any decision of a court (whether before or after the passing of this Act) purporting to have a contrary effect.

This section applies to authorities designated before the passing of this Act under section 2 of the 1984 Act in relation to the financial year beginning in 1987, whether actually designated by the Secretary of State or deemed by virtue of section 68(6) of the Local Government Act 1985 (new authorities) to have been designated.

In relation to that financial year the powers and duties of such an authority (a designated authority) in respect of the making of a rate or issuing a precept for that year, as the case may be, shall have effect subject to section 8 below but not to the provisions of Part I of the 1984 Act.

Any duty of the Secretary of State under Part I of the 1984 Act shall not apply in relation to that financial year.

For the purposes of section 8 below the maximum limit in relation to a designated authority shall be determined in accordance with Schedule 2 to this Act.

As soon as is reasonably practicable after the Rate Support Grant Report for the financial year beginning in 1987 has been laid before the House of Commons, the Secretary of State shall serve on each designated authority a notice stating—

If a designated authority makes a rate, whether before or after the passing of this Act but before a notice has been served on it, and the amount in the pound of the rate (exclusive of any excluded part) exceeds the maximum limit, the authority shall make a substituted rate before the expiry of the permitted period.

If a designated authority issues a precept, whether before or after the passing of this Act but before a notice has been served on it, and the amount in the pound of the precept exceeds the maximum limit, the authority shall issue a substituted precept before the expiry of the permitted period.

If a designated authority fails to comply with subsection (1) or (2) above the rate made or precept issued before the service of the notice shall be deemed not to have been validly made or issued.

A rate made by a designated authority (under subsection (1) above or otherwise) after a notice has been served on it shall be invalid if the amount in the pound of the rate (exclusive of any excluded part) exceeds the maximum limit.

A precept issued by a designated authority (under subsection (2) above or otherwise) after a notice has been served on it shall be invalid if the amount in the pound of the precept exceeds the maximum limit.

A rate shall be invalid if any part of the rate is made for giving effect to a precept which is invalid under subsection (5) above.

In a case where a rate (or precept) is levied otherwise than at a uniform rate in the pound this section shall have effect as if—

For the purposes of subsection (1) above the permitted period is the period of 6 weeks beginning with the day on which a notice is served on the authority; and for the purposes of subsection (2) above the permitted period is the period of one month beginning with the day on which a notice is served on the authority.

For the purposes of this section an excluded part of a rate is any part made for giving effect to—

References in this section to a notice are to a notice served under section 7(5) above.

This section applies only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.

Subsections (2) to (5) below apply to any power to specify under section 1(6), 2(4) or 3(1), (7) or (8) above.

The power includes power to specify in respect of any of the intermediate years (in relation to which sections 1 to 3 above apply by virtue of section 5 above).

The power includes power to revoke or amend a specification made under the power.

Before exercising the power 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.

The power may be exercised differently for England and Wales.

Any power to specify under section 2(4) or 3(1), (7) or (8) above shall be exercised in accordance with principles to be applied to all local authorities.

Schedule 4 to this Act (which contains amendments) shall have effect.

The enactments mentioned in Schedule 5 to this Act are repealed to the extent specified in column 3, but subject to the provision at the end of the Schedule.

In this Part of this Act “the 1980 Act” means the Local Government, Planning and Land Act 1980 and “the 1984 Act” means the Rates Act 1984.

In this Part of this Act “joint authority”, “Rate Support Grant Report” and “supplementary report” have the same meanings as in Part VI of the 1980 Act, “local authority” means any body which is a local authority for the purposes of that Part, and “trading undertaking” has the same meaning as in section 72(3)(e) of that Act.

For the purposes of this Part of this Act as it applies in relation to an intermediate year beginning in 1983, 1984 or 1985—

In this Part of this Act “the Common Council” means the Common Council of the City of London and “the Receiver” means the Receiver for the Metropolitan Police District.

For the purposes of this Part of this Act—