Local Government, Planning and Land Act 1980

Section 81.

SCHEDULE 13Expenditure of Greater London Council and London Transport Executive

PART IAmendments of Schedule 2 to London Government Act 1963

1The provisions of Schedule 2 to the London Government Act 1963 (constitution and general functions of Greater London Council) relating to the capital expenditure of and loans made by that Council and to borrowing by that Council shall be amended as follows.

2In paragraph 25, for the words " The expenditure by the Council on capital account or " there shall be substituted the words " Prescribed expenditure by the Council and expenditure by the Council ".

3The following paragraphs shall be inserted after that paragraph:

“25ASubject to paragraph 25B below, in paragraph 25 above and paragraphs 26 to 29 below " prescribed expenditure " has the meaning assigned to it for the purposes of Part VIII of the Local Government, Planning and Land Act 1980 by section 71(2) of that Act (by virtue of which any reference to prescribed expenditure in the said Part VIII is to be construed in accordance with Schedule 12 to the Act).

25BIn the application of the said Schedule 12 by virtue of paragraph 25A above—

(a)the following sub-paragraph shall be substituted for sub-paragraph (g):

“(g)the making of grants of a capital nature other than grants to local authorities or the London Transport Executive ;”and

(b)the following paragraph shall be substituted for paragraph 3:

“3The investment of a superannuation fund is not prescribed expenditure for the purposes of this Part of this Act.”

25CFor the purposes of paragraph 25 above and of paragraphs 26 and 28 below section 80 of the Local Government, Planning and Land Act 1980 shall apply to an acquisition of an interest in or right over property by the Council as it applies to such an acquisition by an authority to whom Part VIII of that Act applies.”.

4In paragraph 26(1) of that Schedule, for the words " on capital account" there shall be substituted the words " by way of prescribed expenditure ".

5The following sub-paragraphs shall be substituted for subparagraphs (1) and (2) of paragraph 28 of that Schedule: —

“(1)If the whole of the amount authorised by an annual money Act to be expended for any authorised purpose in the first twelve or last six months or the relevant financial period aforesaid is not required to be so expended, the Council may expend for any other authorised purpose in those twelve, or, as the case may be, six months (in addition to the amount authorised in relation to that other purpose) an amount not exceeding the unexpended portion of the first-mentioned amount.

(1A)Subject to sub-paragraphs (1B) and (1C) below, if—

(a)the annual money Act specifies for the first twelve months of a financial period (the relevant twelve months) an amount (the additional amount) which is stated by the Act to be a proportion of the amount authorised for the relevant twelve months to be expended by the Council in respect of prescribed expenditure and lending to other persons (the basic amount) and to be additional to that amount; and

(b)the Council expend for the relevant twelve months, in respect of prescribed expenditure and on lending to other persons, an amount exceeding the basic amount but not exceeding the aggregate of the basic amount and the additional amount,

the amount by which their expenditure exceeds the basic amount shall be treated as having been spent during the first twelve months of the financial period following the relevant twelve months.

(1B)Where, in the twelve months preceding the relevant twelve months (the previous twelve months) the Council have spent by way of prescribed expenditure or on lending to other persons an amount less than the aggregate of the basic amount for the previous twelve months and any amount authorised for those twelve months under sub-paragraph (2) below (the previously authorised aggregate), there shall be treated as having been spent during the first twelve months of the financial period following the relevant twelve months the amount which would have been so treated by virtue of sub-paragraph (1A) above subject to the appropriate deduction.

(1C)The appropriate deduction is a deduction of the lesser of the following amounts, namely—

(a)the amount by which the Council's expenditure for the previous twelve months fell short of the previously authorised aggregate ; and

(b)the amount (if any) which was specified as the additional amount for the relevant twelve months.

(2)If the amount authorised by an annual money Act to be expended in the first twelve or last six months of any financial period, other than any such additional amount as is mentioned in sub-paragraph (lA)(a) above, is found to be insufficient, the Treasury may on the application of the Council authorise the Council to expend such further sums as it is shown to the satisfaction of the Treasury to be necessary or desirable for the Council to expend, not exceeding in the aggregate such amount as may be specified by that Act for the purpose of this sub-paragraph in relation to those twelve or, as the case may be, six months.”.

6The following sub-paragraph shall be substituted for subparagraph (5)(a) of that paragraph:

“(a)by way of prescribed expenditure for a purpose mentioned in that Act; or”.

7The following paragraph shall be inserted after that paragraph:

“28A(1)The appropriate Minister may direct that—

(a)a specified part of the amount of expenditure authorised by an annual money Act may be spent only on a specified project;

(b)no part of that amount may be spent on a specified project.

(2)A project may only be specified under sub-paragraph (1) above if the appropriate Minister—

(a)is of opinion that the project is of national or regional importance, or

(b)is of opinion that the project, though not itself of national or regional importance, is part of a project which is of such importance.

(3)In this paragraph " the appropriate Minister " means the Secretary of State except in relation to expenditure for the purpose of functions the responsibility for which is vested in the Minister of Transport, and in respect of such expenditure, means that Minister.”.

8The following paragraph shall be substituted for paragraph 29 of that Schedule:

“29The Council may borrow money for the purpose of prescribed expenditure or for the purpose of lending it to other persons if, but only if, the expenditure or lending is authorised by an annual money Act.”.

9The following shall be added after that paragraph: —

“The London Transport Executive

29A(1)Subject to sub-paragraph (2) below, for the purposes of paragraphs 25 to 29 above prescribed expenditure of the London Transport Executive or of a wholly-owned subsidiary of that Executive shall be treated as if it were prescribed expenditure of the Council; and accordingly—

(a)any payment in respect of such expenditure by the Executive or by one of their wholly-owned subsidiaries shall be treated for the purposes of those paragraphs as a payment by the Council; and

(b)any acquisition by the Executive or by such a subsidiary shall be treated for those purposes as an acquisition by the Council.

(2)Subject to sub-paragraph (3) below, in sub-paragraph (1) above " prescribed expenditure" has the meaning assigned to it for the purposes of Part VIII of the Local Government, Planning and Land Act 1980 by section 71(2) of that Act.

(3)In the application of Schedule 12 to the Local Government, Planning and Land Act 1980 by virtue of sub-paragraph (2) above—

(a)the words " or Passenger Transport Executives" shall be omitted from paragraph 1(g); and

(b)the following paragraph shall be substituted for paragraph 3: —

“3The investment of a superannuation fund is not prescribed expenditure for the purposes of this Part of this Act.”.

(4)In this paragraph " wholly-owned subsidiary " has the meaning assigned to it by section 45(1) of the Transport (London) Act 1969.”.

PART IIAmendment of Transport (London) Act 1969

10The following subsections shall be inserted after section 11(2) of the [1969 c. 35.] Transport (London) Act 1969 (which among other things requires the London Transport Executive to submit to the Greater London Council and obtain the Council's approval of any proposal for expenditure by the Executive or any subsidiary of theirs which involves a substantial outlay on capital account): —

“(2A)Any proposal by the Executive or any subsidiary of theirs to acquire—

(a)an interest in or right over land, other than a freehold interest, where the interest or right confers a right to occupy the land ; or

(b)an interest in or right over goods other than the property in them,

shall be treated for the purposes of subsection (2)(c) above as being a proposal involving an outlay on capital account.

(2B)In subsection (2A) above "freehold interest" means the fee simple absolute in possession (subject to any existing rights other than rights under a mortgage or charge to secure the payment of money) and " property " (in relation to goods) means the general property in them and not merely a special property.”.