Local Government Finance Act 1992

Chapter IVE+W Precepts

PreliminaryE+W

39 Precepting and precepted authorities.E+W

(1)Each of the following is a major precepting authority for the purposes of this Part, namely—

(a)a county council [F1in England];

[F2(aa)the Greater London Authority;]

[F3(ab)a mayoral combined authority, as defined by section 107A(8) of the Local Democracy, Economic Development and Construction Act 2009;]

[F4(ac)a mayoral CCA, as defined by section 27(8) of the Levelling-up and Regeneration Act 2023 (mayoral combined county authorities);]

[F5(b)a police and crime commissioner;]

(d)a metropolitan county fire and civil defence authority;

[F6(da)a fire and rescue authority in England constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;]

[F7(db)a fire and rescue authority created by an order under section 4A of that Act;]

[F8(e)the London Fire and Civil Defence Authority; and]

[F9(f)the Receiver for the Metropolitan Police District.]

(2)Each of the following is a local precepting authority for the purposes of this Part, namely—

(a)the sub-treasurer of the Inner Temple;

(b)the under-treasurer of the Middle Temple;

(c)a parish or community council;

(d)the chairman of a parish meeting; and

(e)charter trustees.

(3)A precept may only be issued to an appropriate billing authority.

(4)If the whole or part of a billing authority’s area falls within a precepting authority’s area, it is an appropriate billing authority in relation to the precepting authority to the extent of the area which so falls.

[F10(5)In respect of the financial year beginning on 1st April 2000, and subsequent financial years, for the purposes of Chapter IV of this Part,

(a)the Receiver for the Metropolitan Police District’s area shall be the area of the Inner London boroughs;

(b)the Receiver shall only issue precepts to the councils of the Inner London boroughs.]

Issue of preceptsE+W

40 Issue of precepts by major precepting authorities.E+W

(1)For each financial year a major precepting authority shall issue a precept or precepts in accordance with this section.

(2)A precept issued to a billing authority under this section must state—

(a)the amount which, in relation to the year and each category of dwellings in the billing authority’s area, has been calculated (or last calculated) by the precepting authority in accordance with [F11—

(i)in the case of a precepting authority in England, sections 42A, 42B and 45 to 47 below, or

(ii)in the case of a precepting authority in Wales, sections 43 to 47 below;] and

(b)the amount which has been calculated (or last calculated) by the precepting authority in accordance with section 48 below as the amount payable by the billing authority for the year.

(3)Dwellings fall within different categories for the purposes of subsection (2) above according as different calculations have been made in relation to them in accordance with [F12—

(a)in the case of a precepting authority in England, sections 42A, 42B and 45 to 47 below, or

(b)in the case of a precepting authority in Wales, sections 43 to 47 below.]

(4)A major precepting authority shall assume for the purposes of subsection (2) above that each of the valuation bands is shown in the billing authority’s valuation list as applicable to one or more dwellings situated in its area or (as the case may be) each part of its area as respects which different calculations have been so made.

(5)A precept under this section must be issued before 1st March in the financial year preceding that for which it is issued, but is not invalid merely because it is issued on or after that date.

[F13(5A)No such precept may be issued by a precepting authority in England to a billing authority before the earlier of the following—

(a)the earliest date on which, for the financial year for which the precept is issued, each of the periods prescribed for the purposes of item T in section 31B(1) above, item T in section 42B(1) below and item TP in section 45(3) below has expired;

(b)the earliest date on which, for that year, each billing authority has notified its calculations for the purposes of those items to the precepting authority.]

(6)No such precept may be issued to a billing authority [F14in Wales] before the earlier of the following—

(a)the earliest date on which, for the financial year for which the precept is issued, each of the periods prescribed for the purposes of item T in section 33(1) above, item T in section 44(1) below and item TP in section 45(3) below has expired;

(b)the earliest date on which, for that year, each billing authority has notified its calculations for the purposes of those items to the precepting authority.

(7)No such precept may be issued unless the precepting authority has made in relation to the year the calculations required by this Chapter.

(8)A purported issue of such a precept, if done in contravention of subsection [F15(5A),] (6) or (7) above, shall be treated as not having occurred.

[F16(9)Where the precepting authority is the Greater London Authority, this section shall have effect with the following modifications—

(a)in subsection [F17(2)(a)(i)], for the reference to [F18sections 42A, 42B and 45 to 47] below there shall be substituted a reference to the appropriate Greater London provisions;

(b)in subsection [F19(3)(a)], for the reference to [F20sections 42A, 42B and 45 to 47] below there shall be substituted a reference to the appropriate Greater London provisions;

(c)in subsection [F21(5A)], for the reference to item T in section [F2242B(1)] below there shall be substituted a reference to item T in section 88(2) of the Greater London Authority Act 1999; and

(d)also in subsection [F23(5A)], for the reference to item TP in section 45(3) below there shall be substituted a reference to item TP2 in section 89(4) of that Act.

(10)In this section, “the appropriate Greater London provisions” means—

(a)sections 85 to 90 of the Greater London Authority Act 1999 and section 47 below; or

(b)in the case of calculations by way of substitute, sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and section 47 below.]

[F24(11)Where the precepting authority is a mayoral combined authority—

(a)a precept may be issued under this section only in relation to expenditure incurred by the mayor for the authority's area in, or in connection with, the exercise of mayoral functions (as defined by section 107G(7) of the Local Democracy, Economic Development and Construction Act 2009), and

(b)the issuing and calculation of a precept under this Chapter is subject to any provision made in an order under that section.]

[F25(12)Where the precepting authority is a mayoral CCA—

(a)a precept may be issued under this section only in relation to expenditure incurred by the mayor for the authority’s area in, or in connection with, the exercise of mayoral functions (as defined by section 41(8) of the Levelling-up and Regeneration Act 2023), and

(b)the issuing and calculation of a precept under this Chapter is subject to any provision made in regulations under that section.]

41 Issue of precepts by local precepting authorities.E+W

(1)For each financial year a local precepting authority may issue a precept in accordance with this section.

(2)A precept issued to a billing authority under this section must state, as the amount payable by that authority for the year, the amount which has been calculated (or last calculated) [F26—

(a)in the case of a precepting authority in England, by that authority under section 49A below as its council tax requirement for the year, and

(b)in the case of a precepting authority in Wales, by that authority under section 50 below as its budget requirement for the year.]

[F27(2A)The Secretary of State may by regulations make provision that a billing authority in England making calculations in accordance with section 31A above (originally or by way of substitute) may anticipate a precept under this section; and the regulations may include provision as to—

(a)the amounts which may be anticipated by billing authorities in pursuance of the regulations;

(b)the sums (if any) to be paid by such authorities in respect of amounts anticipated by them; and

(c)the sums (if any) to be paid by such authorities in respect of amounts not anticipated by them.]

(3)The [F28Welsh Ministers] may by regulations make provision that a billing authority [F29in Wales] making calculations in accordance with section 32 above (originally or by way of substitute) may anticipate a precept under this section; and the regulations may include provision as to—

(a)the amounts which may be anticipated by billing authorities in pursuance of the regulations;

(b)the sums (if any) to be paid by such authorities in respect of amounts anticipated by them; and

(c)the sums (if any) to be paid by such authorities in respect of amounts not anticipated by them.

[F30(3A)A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of Senedd Cymru.]

(4)A precept under this section must be issued before 1st March in the financial year preceding that for which it is issued, but is not invalid merely because it is issued on or after that date.

42 Substituted precepts.E+W

(1)Where—

(a)a precepting authority has issued a precept or precepts for a financial year (originally or by way of substitute); and

(b)at any later time it makes substitute calculations under section 49 [F31, [F3249A,] [F3352ZU,] 52J or 52U] or (as the case may be) section 51 below [F34or section 95 of the Greater London Authority Act 1999],

it shall as soon as reasonably practicable after that time issue a precept or precepts in substitution so as to give effect to those calculations.

(2)Any precept issued in substitution under subsection (1) above must be issued in accordance with section 40 or (as the case may be) section 41 above, but subsection (5) of section 40 and subsection (4) of section 41 shall be ignored for this purpose.

(3)Where a precepting authority issues a precept in substitution (a new precept) anything paid to it by reference to the precept for which it is substituted (the old precept) shall be treated as paid by reference to the new precept.

(4)If the amount stated in the old precept exceeds that of the new precept, the following shall apply as regards anything paid if it would not have been paid had the amount of the old precept been the same as that of the new precept—

(a)it shall be repaid if the billing authority by whom it was paid so requires;

(b)in any other case it shall (as the precepting authority determines) either be repaid or be credited against any subsequent liability of the billing authority in respect of any precept of the precepting authority.

(5)Any reference in subsection (4) above to the amount stated in a precept shall be construed, in relation to a precept issued by a major precepting authority, as a reference to the amount stated in the precept in accordance with section 40(2)(b) above.

Calculations by major precepting authoritiesE+W

[F3542ACalculation of council tax requirement by authorities in EnglandE+W

(1)In relation to each financial year a major precepting authority in England must make the calculations required by this section.

(2)The authority must calculate the aggregate of—

(a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year in accordance with proper practices,

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices,

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure, and

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

(3)The authority must calculate the aggregate of—

(a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account for the year in accordance with proper practices, other than income which it estimates will accrue to it in respect of any precept issued by it, and

(b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above.

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year.

(5)In making the calculation under subsection (2) above the authority must ignore payments which must be met from a trust fund.

(6)In estimating under subsection (2)(a) above an authority must take into account—

(a)the amount of any expenditure which it estimates it will incur in the year in making any repayments of grants or other sums paid to it by the Secretary of State, and

(b)in the case of an authority which is a county council, the amount of any levy issued to it for the year.

(7)But (except as provided by regulations under section 74 of the 1988 Act) the authority must not anticipate a levy not issued.

[F36(7A)In estimating under subsection (2)(a) above an authority must take into account the amount of expenditure which it estimates it will incur in the year in accordance with regulations under section 99(3) of the 1988 Act.]

(8)For the purposes of subsection (2)(c) above an authority's estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available—

(i)sums which will be payable to it for the year, and

(ii)sums in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices.

(9)In making the calculation under subsection (3) above the authority must ignore payments which must be made into a trust fund.

(10)In estimating under subsection (3)(a) above the authority must take into account the sums which the authority estimates will be paid to it in the year by billing authorities in accordance with regulations under section 99(3) of the 1988 Act.

(11)The Secretary of State may by regulations do one or both of the following—

(a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items);

(b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsections (5) to (10) above, or any of them, or by adding other provisions, or by a combination of those methods).

(12)This section is subject to section 52ZT below (which requires a direction to a major precepting authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority's council tax requirement for the year).

42BCalculation of basic amount of tax by authorities in EnglandE+W

(1)In relation to each financial year a major precepting authority in England must calculate the basic amount of its council tax by applying the formula—

(2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 42A above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above is to be nil.

(3)The Secretary of State must make regulations containing rules for making for any year the calculation required by item T in subsection (1) above; and the billing authorities concerned must make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

(4)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the precepting authority concerned within that period, that item must be determined in the prescribed manner by such authority or authorities as may be prescribed.

(5)The Secretary of State may by regulations do either or both of the following—

(a)alter the constituents of any calculation to be made under subsection (1) above (whether by adding, deleting or amending items);

(b)provide for rules governing the making of any calculation under that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).]

43 Calculation of budget requirement [F37by authorities in Wales].E+W

(1)In relation to each financial year a major precepting authority [F38 in Wales] shall make the calculations required by this section.

(2)The authority must calculate the aggregate of—

(a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year F39...;

[F40(aa)the expenditure that the authority estimates it will incur in the year in making repayments of—

(i)grant paid to it by the Secretary of State or the Welsh Ministers, or

(ii)amounts paid to it by the Welsh Ministers in respect of redistributed non-domestic rates;]

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure; and

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

(3)The authority must calculate the aggregate of—

(a)the sums which it estimates will be payable to it for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which it estimates will be so payable

[F41(aa)the sums that it estimates will be payable to it for an earlier financial year in respect of—

(i)redistributed non-domestic rates,

(ii)revenue support grant,

(iii)additional grant,

(iv)floor funding, or

(v)police grant;]

[F42(i)in respect of redistributed non-domestic rates, revenue support grant, additional grant, [F43special grant, floor funding] or police grant; [F44or]

(ii)in respect of any precept issued by it; F45...

F46(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above.

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated shall be its budget requirement for the year.

F47(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F48(5A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely, sums—

(i)which will be payable to it for the year; and

(ii)in respect of which amounts will be credited to a revenue account for the year; and

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

[F49(6A)In this section and section 44 below “police grant”, in relation to a major precepting authority and a financial year, means the total amount of grant payable to the authority in accordance with the police grant report for that year.

(6B)In subsection (6A) above “police grant report” means a police grant report approved by a resolution of the House of Commons pursuant to section 46 of the Police Act 1996.]

[F50(6C)In this section and section 44—

(a)references to sums payable for a financial year in respect of floor funding are to sums that are payable by the Secretary of State in the year to a major precepting authority in addition to the police grant referred to in subsection (6A), and

(b)references to sums payable for a financial year in respect of—

(i)redistributed non-domestic rates,

(ii)revenue support grant,

(iii)additional grant, or

(iv)special grant,

are to be construed in accordance with section 32(12).]

(7)The [F51Welsh Ministers] may by regulations do one or both of the following—

(a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items);

(b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending [F52subsection (6)], or by adding other provisions, or by a combination of those methods).

[F53(7A)A statutory instrument containing regulations under subsection (7) is subject to annulment in pursuance of a resolution of Senedd Cymru.]

(8)F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44 Calculation of basic amount of tax [F55by authorities in Wales] .E+W

(1)In relation to each financial year a major precepting authority [F56in Wales] shall calculate the basic amount of its council tax by applying the formula—

[F60(1A)In this section—

(a)references to sums payable for a financial year in respect of—

(i)redistributed non-domestic rates,

(ii)revenue support grant,

(iii)additional grant, and

(iv)special grant,

are to be construed in accordance with section 33(12); and

(b)references to sums payable for a financial year in respect of floor funding are to be construed in accordance with section 43(6C).]

(2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 43 above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above shall be nil.

F61(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Regulations under section 43(7) above may make such consequential alterations of the constituents of any calculation required by item P in subsection (1) above F62... (whether by adding, deleting or amending items) as appear to the [F63Welsh Ministers] to be necessary or expedient.

(5)The [F64Welsh Ministers] shall make regulations containing rules for making for any year the calculations required by item T in subsection (1) above; and the billing authorities concerned shall make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

[F65(5A)A statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of Senedd Cymru.]

(6)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the precepting authority within that period, that item shall be determined in the prescribed manner by such authority or authorities as may be prescribed.

(7)Any negative amount given by a calculation under subsection (1) above shall be assumed to be nil for the purposes of this Chapter.

45 Additional calculations where special items relate to part only of area.E+W

(1)This section applies where for any financial year an item mentioned in section 46(1) below relates to a part only of a major precepting authority’s area; and in this section “special item” means any such item which so relates and “the relevant part”, in relation to such an item, means the part concerned.

(2)The authority shall calculate the basic amount of its council tax for dwellings in a part of its area to which no special item relates by applying the formula—

(3)The authority shall calculate the basic amount of its council tax for dwellings in a part of its area to which one or more special items relate by adding to the amount given by the formula in subsection (2) above the aggregate of the amounts which, in relation to each of those special items, are given by the formula—

(4)The Secretary of State shall make regulations containing rules for making for any year the calculations required by item TP in subsection (3) above; and the billing authorities concerned shall make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

(5)Regulations prescribing a period for the purposes of item TP in subsection (3) above may provide that, in any case where a billing authority fails to notify its calculation to the precepting authority within that period, that item shall be determined in the prescribed manner by such authority or authorities as may be prescribed.

[F68(5A)Regulations under subsection (4) that apply to authorities in England may contain different rules for the purposes of calculating item TP in relation to different kinds of special item.

(5B)Regulations under subsection (4) that make provision by virtue of subsection (5A) may make consequential amendments to this Act.]

(6)Any negative amount given by a calculation under subsection (2) or (3) above shall be assumed to be nil for the purposes of this Chapter.

46 Special items for purposes of section 45.E+W

(1)The items referred to in section 45(1) above are any expenses of the major precepting authority which are its special expenses and were taken into account by it in making the calculation in relation to the year under [F69section 42A(2) above or] section 43(2) above.

(2)For the purposes of subsection (1) above—

F70(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)provided a resolution of a county council to the following effect is in force, the expenses of meeting a levy issued to or anticipated by it are its special expenses or (if the resolution relates to some only of those expenses) those to which the resolution relates are its special expenses;

F71(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F72(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For the purposes of section 45(1) above—

F73(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)expenses which are special by virtue of a resolution under subsection (2)(b) above relate to the part of the council’s area in which the levying body carries out functions;

F74(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F75(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F76(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47 Calculation of tax for different valuation bands.E+W

(1)The amount to be stated under section 40(2)(a) above for any financial year in respect of any category of dwellings listed in a particular valuation band shall be calculated by applying the formula—

[F78(1A)Where the precepting authority is the Greater London Authority, subsection (1) above shall have effect with the substitution of the following definition for the definition of A—

(2)Dwellings fall within different categories for the purposes of this section according as different calculations have been made in relation to them under section 45 above.

[F79(3)Where the precepting authority is the Greater London Authority, subsection (2) above shall have effect with the substitution for the reference to section 45 above of a reference to section 89 of the Greater London Authority Act 1999]

48 Calculation of amount payable by each billing authority.E+W

(1)This section makes provision for calculating the amount required by section 40(2)(b) above to be stated in a precept as the amount payable by a billing authority for any financial year [F80; and—

(a)subsection (1A) below applies in relation to a precept issued by the Greater London Authority; and

(b)subsections (2) to (6) below apply in relation to a precept issued otherwise than by the Greater London Authority.]

[F81(1A)Where an amount calculated (or last calculated) for the year under section 88(2) or 89(3) of the Greater London Authority Act 1999 applies to dwellings in the billing authority’s area, the amount payable by that authority shall be calculated by applying the formula—

(2)Where an amount calculated (or last calculated) for the year under section [F8342B(1) or (as the case may be) 44(1) above or under section] 45(2) or (3) above applies to dwellings in the whole of the billing authority’s area, the amount payable by that authority shall be calculated by applying the formula—

(3)Where an amount calculated (or last calculated) for the year under section [F85 42B(1) or 44(1) above or under section] 45(2) or (3) above applies to dwellings in a part of the billing authority’s area, the amount payable by that authority shall be calculated by applying the formula—

(4)Where different amounts calculated (or last calculated) for the year under section 45(2) or (3) above apply to dwellings in different parts of the billing authority’s area, the amount payable by that authority shall be the aggregate of the amounts which, in relation to each of the amounts so calculated, are given by the formula—

(5)The Secretary of State shall make regulations containing rules for making for any year the calculations required by item TP in subsection (3) or (4) above; and the billing authority shall make the calculations for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

(6)Regulations prescribing a period for the purposes of item TP in subsection (3) or (4) above may provide that, in any case where the billing authority fails to notify its calculation to the precepting authority within that period, that item shall be determined in the prescribed manner by such authority or authorities as may be prescribed.

49 Substitute calculations.E+W

[F86(1)A major precepting authority which has made calculations in relation to a financial year in accordance with—

[F87(za)sections 42A, 42B and 45 to 48 above (originally or by way of substitute),]

(a)sections 43 to 48 above (originally or by way of substitute),

(b)sections 85 to 90 of the Greater London Authority Act 1999 and sections 47 and 48 above, or

(c)sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and sections 47 and 48 above (by way of substitute),

may make calculations in substitution in relation to the year in accordance with the relevant provisions.

(1A)For the purposes of subsection (1) above, the relevant provisions are—

[F88(za)in a case falling within paragraph (za), the provisions specified in that paragraph;]

(a)in a case falling within paragraph (a), the provisions specified in that paragraph; and

(b)in a case falling within paragraph (b) or (c), the provisions specified in paragraph (c).]

(2)None of the substitute calculations shall have any effect if—

[F89(za)in the case of a major precepting authority in England other than the Greater London Authority, the amount under section 42A(4) above, or any amount calculated under section 42B(1) or 45(2) or (3) above as the basic amount of council tax applicable to any dwelling, would exceed that so calculated in the previous calculations; or]

(a)[F90in the case of a major precepting authority [F91in Wales] ,] the amount calculated under section 43(4) above, or any amount calculated under section 44(1) or 45(2) or (3) above as the basic amount of council tax applicable to any dwelling, would exceed that so calculated in the previous calculations; or

[F92(aa)in a case where the major precepting authority is the Greater London Authority—

(i)the amount of any component [F93council tax] requirement calculated under subsections (4) to (7) of section 85 of the Greater London Authority Act 1999,

(ii)the amount calculated under subsection (8) of that section, or

(iii)any amount calculated under section 88(2) or 89(3) of that Act as the basic amount of council tax applicable to any dwelling,

would exceed that so calculated in the previous calculations; or]

(b)the authority fails to comply with [F94whichever of subsections (2A), (3) and (3A) below is applicable to it] in making the substitute calculations.

[F95(2A)In making substitute calculations under section 42B(1) or 45(3) above, an authority in England other than the Greater London Authority must use any amount determined in the previous calculations for item T in section 42B(1) above or item TP in section 45(3) above.]

(3)In making substitute calculations under section 44(1) or 45(3) above, [F96an authority in Wales] must use any amount determined in the previous calculations for item P or T in section 44(1) above or item TP in section 45(3) above.

[F97(3A)In making substitute calculations under section 88(2) or 89(3) of the Greater London Authority Act 1999, the [F98Greater London Authority] must use any amount determined in the previous calculations for item F99... T in section 88(2) of that Act or for F99... item TP2 in section 89(4) of that Act.]

(4)For the purposes of subsection (3) above, the authority may treat any amount determined in the previous calculations for item P in section 44(1) above as increased by the amount of any sum which—

(a)it estimates will be payable to it for the year in respect of additional grant; and

(b)was not taken into account by it in making those calculations.

F100(4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F100(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F100(4C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F101(4D)Subsections (2) and (2A) above shall not apply if the previous calculations have been quashed because of a failure to comply with sections 42A, 42B and 45 to 48 above in making the calculations.]

(5)Subsections (2) and (3) above shall not apply if the previous calculations have been quashed because of a failure to comply with sections 43 to 48 above in making the calculations.

[F102(6)Subsections (2) and (3A) above shall not apply if the previous calculations have been quashed because of a failure to comply with the appropriate Greater London provisions in making the calculations.

(7)For the purposes of subsection (6) above, “the appropriate Greater London provisions” means—

(a)in the case of calculations required to be made in accordance with sections 85 to 90 of the Greater London Authority Act 1999 and sections 47 and 48 above, those provisions; and

(b)in the case of calculations required to be made in accordance with sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and sections 47 and 48 above, those provisions.

(8)Where the major precepting authority is the Greater London Authority, any substitute calculations under this section shall be made in accordance with Schedule 7 to the Greater London Authority Act 1999.]

Calculations by local precepting authoritiesE+W

[F10349ACalculation of council tax requirement by authorities in EnglandE+W

(1)In relation to each financial year a local precepting authority in England must make the calculations required by this section.

(2)The authority must calculate the aggregate of—

(a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year in accordance with proper practices,

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices,

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure, and

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

(3)The authority must calculate the aggregate of—

(a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account for the year in accordance with proper practices, other than income which it estimates will accrue to it in respect of any precept issued by it, and

(b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above.

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year.

(5)For the purposes of subsection (2)(c) above an authority's estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available, namely, sums—

(i)which will be payable to it for the year, and

(ii)in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices.

(6)This section is subject to section 52ZV below (which requires a direction to a local precepting authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority's council tax requirement for the year).

49BSubstitute calculationsE+W

(1)A local precepting authority which has made calculations in accordance with section 49A above in relation to a financial year (originally or by way of substitute) may make calculations in substitution in relation to the year in accordance with that section.

(2)None of the substitute calculations are to have any effect if the amount calculated under section 49A(4) above would exceed that so calculated in the previous calculations.

(3)Subsection (2) above does not apply if the previous calculation under subsection (4) of section 49A above has been quashed because of a failure to comply with that section in making the calculation.]

50 Calculation of budget requirement [F104by authorities in Wales] .E+W

(1)In relation to each financial year a local precepting authority [F105in Wales] shall make the calculations required by this section.

(2)The authority must calculate the aggregate of—

(a)the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year;

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure; and

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

(3)The authority must calculate the aggregate of—

(a)the sums which it estimates will be payable to it for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which it estimates will be so payable in respect of any precept issued by it; and

(b)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above.

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated shall be its budget requirement for the year.

(5)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely, sums—

(i)which will be payable to it for the year; and

(ii)in respect of which amounts will be credited to a revenue account for the year; and

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

(6)F106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51 Substitute calculations.E+W

(1)A local precepting authority which has made calculations in accordance with section 50 above in relation to a financial year (originally or by way of substitute) may make calculations in substitution in relation to the year in accordance with that section.

(2)None of the substitute calculations shall have any effect if the amount calculated under section 50(4) above would exceed that so calculated in the previous calculations.

(3)Subsection (2) above shall not apply if the previous calculation under subsection (4) of section 50 above has been quashed because of a failure to comply with that section in making the calculation.

SupplementalE+W

52 Information for purposes of Chapter IV.E+W

If the Secretary of State so requires by regulations, a billing authority shall supply prescribed information within a prescribed period to any precepting authority which has power to issue a precept to the billing authority.