Local Government Finance Act 2012

Year2012


Local Government Finance Act 2012

2012 CHAPTER 17

An Act to make provision about non-domestic rating; to make provision about grants to local authorities; to make provision about council tax; to make provision about the supply of information for purposes relating to rates in Northern Ireland; and for connected purposes.

[31st October 2012]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

Non-domestic rating

Non-domestic rating

S-1 Local retention of non-domestic rates

1 Local retention of non-domestic rates

(1) The LGFA 1988 is amended in accordance with subsections (2) to (4).

(2) After section 59 insert-

"59A Local retention of non-domestic rates

Schedule 7B (local retention of non-domestic rates) has effect."

(3) In section 143 (orders and regulations)-

(a) in subsection (3) (application of negative Parliamentary procedure to orders and regulations under the Act), for "(9AA)" substitute "(9E)", and

(b) before subsection (10) insert-

"(9C) Any power to make regulations conferred by Schedule 7B (local retention of non-domestic rates) is exercisable by statutory instrument.

(9D)A statutory instrument containing regulations under any of the following provisions of that Schedule (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament-

(a) paragraph 9 (regulations about payments by billing authorities to major precepting authorities);

(b) paragraph 11 (regulations about payments by billing authorities to major precepting authorities out of deductions from central share payments);

(c) paragraph 22 (regulations about calculation of levy payments);

(d) paragraph 25 (regulations about calculation of safety net payments);

(e) paragraph 30 (regulations about distribution of remaining balance);

(f) paragraph 39 or 40 (regulations about designated areas or classes of hereditament), if the regulations contain provision within paragraph 41 (payments to relevant authorities).

(9E) Any other statutory instrument containing regulations under that Schedule is subject to annulment in pursuance of a resolution of either House of Parliament."

(4) Schedule 1 (which sets out the Schedule to be inserted as Schedule 7B to the LGFA 1988) has effect.

(5) In consequence of the amendment made by subsection (3)(a), in Schedule 7 to the Local Government Act 2003 omit paragraph 24(2).

(6) The amendments made by this section and Schedule 1 have effect in relation to the financial year beginning with 1 April 2013 and subsequent financial years.

(7) But the Secretary of State may by order made by statutory instrument amend subsection (6) by substituting a later financial year.

S-2 Revenue support grant

2 Revenue support grant

(1) Schedule 2 (amendment of provisions about revenue support grant) has effect.

(2) The amendments made by Schedule 2 have effect in relation to the financial year beginning with 1 April 2013 and subsequent financial years.

(3) But the Secretary of State may by order made by statutory instrument amend subsection (2) by substituting a later financial year.

S-3 Additional grant

3 Additional grant

(1) The LGFA 1988 is amended in accordance with subsections (2) to (4).

(2) In section 84Q(1) (application of Chapter dealing with grants other than revenue support grant) omit paragraph (a) (which refers to sections 85 and 86).

(3) Omit sections 85 and 86 (additional grant: England) and the italic heading preceding section 85.

(4) In section 141 (payments to and from authorities)-

(a) in subsection (5)(b) omit "and 86(2)", and

(b) in subsection (7) omit "and 86".

(5) The LGFA 1992 is amended in accordance with subsections (6) to (8).

(6) In section 52ZF (council tax referendums: billing authority's duty to make substitute calculations)-

(a) in subsection (3)(a) omit "additional grant,", and

(b) omit subsection (4).

(7) In section 52ZJ (council tax referendums: major precepting authority's duty to make substitute calculations)-

(a) in subsection (4)(a) omit "additional grant,", and

(b) omit subsection (5).

(8) In section 69(1) (interpretation of Part 1), in the definition of "additional grant", for "85(2)" substitute "86A(2)".

(9) The Greater London Authority Act 1999 is amended in accordance with subsections (10) and (11).

(10) In section 86 (calculation of component council tax requirement in relation to Mayor's Office for Policing and Crime)-

(a) in subsection (4D)-

(i) at the end of paragraph (b) insert "and", and

(ii) omit paragraph (d) (additional grant) and the "and" preceding that paragraph, and

(b) in subsection (4F)-

(i) at the end of paragraph (a) insert "and", and

(ii) omit paragraph (c) (report relating to additional grant) and the "and" preceding that paragraph.

(11) In section 102(2) (aggregate out of which payments to functional bodies are to be made) omit paragraph (b) (additional grant).

(12) In consequence of the amendments made by subsection (3)-

(a) in Schedule 10 to the LGFA 1992 omit paragraph 16, and

(b) in Schedule 7 to the Local Government Act 2003 omit paragraph 17.

(13) The amendments made by this section have effect in relation to the financial year beginning with 1 April 2013 and subsequent financial years.

(14) But the Secretary of State may by order made by statutory instrument amend subsection (13) by substituting a later financial year.

S-4 General GLA grant

4 General GLA grant

(1) Section 100 of the Greater London Authority Act 1999 (general GLA grant) is amended as follows.

(2) For subsection (1) (duty to pay general GLA grant to Greater London Authority for each financial year) substitute-

"(1) The Secretary of State may pay a grant (to be called "general GLA grant") to the Authority for a financial year."

(3) In subsection (3) (duty to make determination about general GLA grant for each financial year), after "year" insert "for which general GLA grant is to be paid".

(4) The amendments made by this section have effect in relation to the financial year beginning with 1 April 2013 and subsequent financial years.

(5) But the Secretary of State may by order made by statutory instrument amend subsection (4) by substituting a later financial year.

S-5 Local retention of non-domestic rates: further amendments

5 Local retention of non-domestic rates: further amendments

(1) Schedule 3 (local retention of non-domestic rates: further amendments) has effect.

(2) In that Schedule-

(a) Part 1 amends Schedule 8 to the LGFA 1988 so that it applies in relation to Wales only (and makes some related amendments), and

(b) Part 2 contains other amendments.

(3) The amendments made by that Schedule have effect for the financial year beginning with 1 April 2013 and subsequent financial years.

(4) But the Secretary of State may by order made by statutory instrument amend subsection (3) by substituting a later financial year.

S-6 Definition of domestic property

6 Definition of domestic property

(1) Section 66 of the LGFA 1988 (domestic property) is amended as follows.

(2) After subsection (2BB) insert-

"(2BC) For the purposes of subsection (2B) the relevant person is-

(a) where the building or self-contained part is not subject as a whole to a relevant leasehold interest, the person having the freehold interest in the whole of the building or self-contained part; and

(b) in any other case, any person having a relevant leasehold interest in the building or self-contained part which is not subject (as a whole) to a single relevant leasehold interest inferior to that interest."

(3) In subsection (2C) omit "subsection (2B) and".

(4) This section has effect in relation to liability to a non-domestic rate for the financial year beginning with 1 April 2013 and subsequent financial years.

S-7 Payments to and from authorities

7 Payments to and from authorities

(1) Section 141 of the LGFA 1988 (power to make regulations about set off of payments to and from receiving authorities) is amended as follows.

(2) In subsection (5)(b) (power to require provisions of the Act to be read subject to regulations), after "79(2)"...

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