Rate Support Grants Act 1986

2Adjustment of block grant to limit effects of changes.

(1)As respects determinations made under section 59 of the said Act of 1980 after the passing of this Act the following provisions shall have effect instead of subsection (6)(a) of that section and section 8(3)(a) of the [1982 c. 32.] Local Government Finance Act 1982.

(2)The power conferred by section 59(1) may be exercised for title purpose of limiting or avoiding the effect on—

(a)the amount of block grant payable to a local authority for any year; or

(b)the contribution made or to be made by ratepayers in any year to the expenditure of the local authorities exercising functions in their area, of any difference or differences between that year and the previous year in any of the matters relevant to the calculation of block grant.

(3)The power may be exercised for the purpose mentioned in subsection (2) above in respect of such difference or differences and, in the case of a limitation, to such extent as the Secretary of State thinks desirable ; but he shall not exercise the power for that purpose so as to decrease the amount of block grant payable to a local authority for any year unless he is satisfied that it is necessary to do so in order to prevent the difference in question having an unreasonable effect on the way in which block grant for that year is distributed or on the contribution made or to be made by ratepayers in that year to the expenditure of local authorities.

(4)Where the Secretary of State decides to exercise the power for the purpose mentioned in subsection (2) above in respect of any difference, the effect that the difference would have had shall be calculated, and any limit imposed by him shall be determined, in such manner as he thinks appropriate.