Legalize / United Kingdom / Public General Act

Local Government Finance Act 1988

Type Public General Act

Publication 1988-07-29

Last updated 2026-04-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(10) Regulations under this section by virtue of subsection (8) may only make provision in relation to the expenses of a combined authority that are reasonably attributable—

(a) to the exercise of its functions relating to transport , or

(b) subject to subsection (11), to the exercise of any other functions.

(11) Regulations under this section by virtue of subsection (8) that include provision within subsection (10)(b) may be made only with the consent of—

(a) the constituent councils, and

(b) in the case of regulations in relation to an existing combined authority, the combined authority.

(12) Subsection (11) is subject to section 106A of the Local Democracy, Economic Development and Construction Act 2009 (which enables regulations to be made without the consent of all the constituent councils in certain circumstances).

(13) Regulations under this section by virtue of subsection (8) may not make provision in relation to expenses of a combined authority that are attributable to the exercise of mayoral functions.

(14) In subsections (8) to (13)—

“constituent council” means—a county council the whole or any part of whose area is within the area of the combined authority, ora district council whose area is within the area of the combined authority;

“mayoral functions” has the meaning given by section 107G(7) of the Local Democracy, Economic Development and Construction Act 2009.

(15) For the purposes of this section—

(a) a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023 is to be treated as a levying body with respect to which regulations may be made under subsection (2), and

(b) the reference in that subsection to the council concerned shall be treated as a reference to the combined county authority’s constituent councils.

(16) Regulations under this section by virtue of subsection (15) may be made only with the consent of—

(a) the constituent councils, and

(b) in the case of regulations in relation to an existing combined county authority, that authority.

(17) Regulations under this section by virtue of subsection (15) may not make provision in relation to expenses of a combined county authority that are attributable to the exercise of mayoral functions.

(18) In subsections (15) to (17)—

“constituent council” has the meaning given by section 10(11) of the Levelling-up and Regeneration Act 2023;

“mayoral function” has the meaning given by section 41(8) of that Act.

Special levies

75

(1) This section applies as regards any body—

(a) which has no power to levy a rate by virtue of regulations under section 118 below, or

(b) whose power to levy a rate is modified by regulations under that section.

(2) The appropriate Minister may make regulations conferring on any such body power to issue in respect of prescribed chargeable financial years and in accordance with the regulations—

(a) a special levy (to be so called) to such billing authority as is prescribed as regards the body concerned, or

(b) special levies (to be so called) to such billing authorities as are prescribed as regards the body concerned.

(3) The regulations may include provision as to the body’s expenditure, or the proportion of its expenditure, which may be met from the proceeds of a special levy or special levies.

(4) The regulations may include provision_

(a) as to when special levies are to be issued;

(b) imposing a maximum limit on special levies;

(d) conferring a power to issue special levies by way of substitute for others;

(e) as to the payment (in instalments or otherwise) of amounts in respect of which special levies are issued;

(f) conferring a right to interest on anything unpaid.

(5) The regulations may include provision requiring a billing authority to treat as special expenses any expenses needed to meet a special levy issued to it.

(6) The regulations may include provision—

(a) that a billing authority making calculations in accordance with section 31A or 32 of the Local Government Finance Act 1992 (originally or by way of substitute) may anticipate a special levy;

(b) as to the treatment as special expenses of amounts so anticipated;

(7) The regulations may include—

(a) provision equivalent to anything in Chapter III or IV of Part I of the Local Government Finance Act 1992 or regulations made under either Chapter (subject to such modifications as the appropriate Minister thinks fit);

(b) provision amending or adapting any provision of that Act in consequence of any provision included under subsection (6) above.

(7A) Regulations made by the Welsh Ministers may include provision for appeals to be made to the Welsh Ministers from special levies issued to meet expenses incurred in the exercise of functions relating to land drainage.

(8) In this section “the appropriate Minister” has the same meaning as in section 118 below.

Part V — Grants

Introduction

Interpretation

76

(1) This section applies for the purposes of this Part.

(2) A receiving authority is any billing authority or major precepting authority.

(4) A specified body is any body which provides services for local authorities and is specified in regulations made by the Secretary of State under this subsection; but a body is not a specified body as regards a financial year unless the regulations specifying it are in force before the year begins.

(5) Before exercising the power to make regulations under subsection (4) above the Secretary of State shall consult such representatives of local government as appear to him to be appropriate.

(6) Any regulations made under section 2(7) of the Local Government Act 1974 or section 56(9) of the Local Government, Planning and Land Act 1980 shall have effect for the purposes of subsection (4) above as if they had been made under it.

(7) “The Assembly” means the National Assembly for Wales.

Information

77

Revenue support grant

78

(1) The Secretary of State may pay a grant (to be called revenue support grant) in accordance with this Chapter for a chargeable financial year—

(a) to receiving authorities,

(b) to specified bodies, or

(2) For each chargeable financial year for which revenue support grant is to be paid the Secretary of State shall make a determination under this section.

(3) A determination shall state—

(a) the amount of the grant for the year,

(aa) whether the Secretary of State proposes to pay grant to receiving authorities,

(b) if so, what amount of the grant he proposes to pay to receiving authorities,

(ba) whether the Secretary of State proposes to pay grant to specified bodies, and

(4) Different amounts may be stated under subsection (3)(c) above in relation to different specified bodies.

(5) Before making a determination the Secretary of State shall—

(a) consult such representatives of local government as appear to him to be appropriate, and

(b) obtain the Treasury’s consent.

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

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of report’s approval

79

(1) This section applies where in accordance with sections 78 and 78A above a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the House of Commons.

(2) If the report is approved by resolution of the House of Commons the Secretary of State shall pay the amount stated in the determination as the amount of the revenue support grant for the year.

(3) If the determination provides for grant to be paid to receiving authorities, the Secretary of State shall pay to receiving authorities the amount stated in the determination under section 78(3)(b) above, and, if the determination provides for grant to be paid to specified bodies, the Secretary of State shall pay to specified bodies the aggregate of the amounts stated in the determination under section 78(3)(c) above.

(4) Any amount falling to be paid to receiving authorities shall be distributed among and paid to them in accordance with sections 82 and 83 below.

(5) Any amount to be paid to a particular specified body shall be the amount stated in relation to it under section 78(3)(c) above.

(6) Where a sum falls to be paid to a specified body by way of revenue support grant it shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; and any such time may fall within or after the financial year concerned.

Distribution reports

80

Effect of distribution reports

81

Calculation of sums payable

82

(A1) This section applies if—

(a) in accordance with sections 78 and 78A above a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the House of Commons,

(b) the determination provides for grant to be paid to receiving authorities, and

(1) As soon as is reasonably practicable after the report has been approved, the Secretary of State shall calculate what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution specified in the report as so approved.

(2) Subject to subsection (3) below, after making a calculation under subsection (1) above the Secretary of State may, at any time before the end of the financial year following the financial year concerned, make one further calculation of what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution so specified.

(3) The power to make a calculation under subsection (2) above shall not be exercisable after the approval by resolution of the House of Commons of any amending report made under section 84A below in relation to the local government finance report.

(4) If the Secretary of State decides that he will leave out of account information received by him after a particular date in making a calculation under subsection (1) or (2) above the calculation shall be made accordingly, and he may decide different dates for different kinds of information.

(5) Subsection (4) above applies only if the Secretary of State informs each receiving authority in writing of his decision and of the date (or the dates and kinds of information) concerned; but he may do this at any time before the calculation is made under this section (whether before or after a determination is made for the year under section 78 above).

(6) As soon as is reasonably practicable after making a calculation under subsection (1) or (2) above the Secretary of State shall, subject to subsection (7) below, inform each receiving authority of the sum he calculates falls to be paid to it by way of revenue support grant for the year.

(7) If the Secretary of State calculates in the case of a particular receiving authority that no sum falls to be paid to it as mentioned in subsection (6) above, he shall inform the receiving authority of that fact.

Payment of sums

83

(1) Where a calculation is made under section 82(1) above the Secretary of State shall pay to each receiving authority any sum calculated as falling to be paid to it.

(2) The sum shall be paid in instalments of such amounts, and at such times in the financial year concerned, as the Secretary of State determines with the Treasury’s consent.

(3) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority exceeds that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, the Secretary of State shall pay to the authority a sum equal to the difference.

(4) The sum shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the financial year concerned.

(5) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority is less than that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, a sum equal to the difference shall be paid by the authority to the Secretary of State on such day after the end of the financial year concerned as he may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction.

Special provision for transitional years

84

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Additional grant

85

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Effect of report’s approval

86

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Transport grants

87

(1) The Secretary of State shall pay to a defined council a grant for a chargeable financial year if he accepts that at least some of its estimated relevant transport expenditure for the year is appropriate to be taken into account for the purposes of this section.

(2) The amount of the grant shall be a proportion of so much of the council’s estimated relevant transport expenditure for the year as he accepts under subsection (1) above.

(3) The proportion shall be such as is determined for the year by the Secretary of State and shall be the same as regards each council to which a grant is paid for the year under this section.

(4) A grant under this section shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State thinks fit; and any such time need not fall within the financial year concerned.

(5) In deciding whether to accept any of a council’s estimated relevant transport expenditure for a financial year under subsection (1) above, and how much of it to accept, the Secretary of State may have regard to the following matters (in addition to any other matters he thinks fit)—

(a) whether the council’s relevant transport expenditure for any preceding financial year or years is greater or smaller than its estimated relevant transport expenditure for that year or those years;

(b) the extent (if any) to which it is greater or smaller.

(6) The total accepted under subsection (1) above as regards all defined councils for a particular financial year shall not exceed such amount as is approved by the Treasury for the year.

(7) In the application of this section in relation to Wales, references to the Secretary of State are references to the Welsh Ministers.

Transport grants: supplementary

88

(1) This section applies for the purposes of section 87 above.

(2) Each of the following is a defined council—

(a) a county council,

(aa) a county borough council,and

(b) a metropolitan district council,

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

(3) A council’s relevant transport expenditure for a financial year is the expenditure it calculates it incurred in the year in connection with—

(a) highways or the regulation of traffic (where the council is English), or

(b) highways, the regulation of traffic or public transport (where the council is Welsh).

(4) But in making the calculation expenditure shall be left out of account unless, at the time the calculation is made, it is capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance).

(5) A council’s estimated relevant transport expenditure for a financial year is the expenditure it estimates it will incur in the year in connection with—

(a) highways or the regulation of traffic (where the council is English), or

(b) highways, the regulation of traffic or public transport (where the council is Welsh).

(6) But in making the estimate expenditure shall be left out of account unless, at the time the estimate is made, it is capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance).

Part VI — Funds

Funds

Collection funds

89

(1) Every billing authority shall establish, and then maintain, a fund (to be called its collection fund) in accordance with this Part.

(2) Subject to subsections (2A) to (2C) below,An authority’s collection fund must be established on 1 April 1990.

(2A) In the case of a district council which is established for an area by an order under section 17 of the Local Government Act 1992 ..., the collection fund must be established on the date on which by virtue of the order the structural or boundary change affecting the area comes into force.

(2B) In the case of—

(a) a county council which is established by such an order and to which are transferred by or in consequence of the order the functions of district councils in relation to the county council’s area, or

(b) an existing county council to which are transferred by or in consequence of such an order the functions of district councils in relation to the county council’s area,

the collection fund must be established on the date on which by virtue of the order the structural change concerned comes into force.

(2C) In the case of—

(a) a district council or London borough council established by an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, or

(b) a county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of such an order,

the collection fund must be established on a date specified in the order or in regulations made under section 14 of that Act.

(3) Section 101(1)(b) of the Local Government Act 1972 (delegation) shall not apply as regards the functions of an authority in relation to its collection fund.

(4) Any sum paid into an authority’s collection fund shall be used in the making of payments which are to be met from that fund or of transfers which are to be made from it.

(5) If not immediately required for the purpose of making those payments or transfers, the sum shall be held, invested or otherwise used in such manner as may be prescribed by regulations made by the Secretary of State.

Payments to and from collection funds

90

(1) The following shall be paid into the collection fund of a billing authority—

(a) sums received by the authority in respect of council tax set by it in accordance with section 30 of the Local Government Finance Act 1992 (but not sums received by way of penalty),

(b) sums received by the authority from any major precepting authority or the Secretary of State under regulations made under section 99(3) below,

(ca) sums received by the authority in respect of any business rate supplement,

(d) sums received by the authority under any of the following provisions of Schedule 7B (local retention of non-domestic rates) that are of a kind specified by the Secretary of State as falling to be paid into a billing authority's collection fund—

(i) paragraph 14(2) (payments by Secretary of State following local government finance report);

(ii) paragraph 14(9) or (10) (payments by Secretary of State following revised calculation);

(iii) paragraph 17(7) or (8) (payments by Secretary of State following amending report),

(da) sums received by the authority—

(i) under provision made by regulations under paragraph 7 of Schedule 7B (regulations about administration of payments in respect of the central share),

(ii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments),

(iii) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share),

(iv) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments),

(v) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or

(vi) under provision made by regulations under paragraph 42 of that Schedule (payments by Secretary of State following estimates of amounts relating to designated areas or classes), and

(e) any other sums which the Secretary of State specifies are to be paid into a billing authority’s collection fund.

(1A) The reference in subsection (1)(ca) to sums received by a billing authority in respect of business rate supplements—

(a) includes a reference to financial contributions made to it for the purpose of enabling the project to which a business rate supplement relates to be carried out, but

(b) does not include a reference to sums returned or transferred to it by virtue of section 24(3)(b) of, or paragraph 3(2)(a) of Schedule 3 to, the Business Rate Supplements Act 2009.

(2) The following payments shall be met from the collection fund of a billing authority—

(a) payments to be made by the authority in respect of the amount of any precept issued by a major precepting authority under Part I of the Local Government Finance Act 1992 (but not payments to be so made in respect of interest on such an amount),

(b) payments to be made by the authority to any major precepting authority or the Secretary of State under regulations made under section 99(3) below,

(ba) payments to be made by the authority to a levying authority in accordance with provision made by or under the Business Rate Supplements Act 2009,

(c) payments to be made by the authority under any of the following provisions of Schedule 7B that are of a kind specified by the Secretary of State as falling to be met from a billing authority's collection fund—

(i) paragraph 14(1) (payments to Secretary of State following local government finance report);

(ii) paragraph 14(6) or (7) (payments to Secretary of State following revised calculation);

(iii) paragraph 17(4) or (5) (payments to Secretary of State following amending report),

(ca) payments made by the authority—

(i) under paragraph 6, or under provision made by regulations under paragraph 7, of Schedule 7B (payments in respect of the central share),

(ii) under provision made by regulations under paragraph 9 of that Schedule (payments by billing authorities to major precepting authorities),

(iii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments),

(iv) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share),

(v) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments),

(vi) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or

(vii) under provision made by regulations under paragraph 42 of that Schedule (payments to Secretary of State following estimates of amounts relating to designated areas or classes),

(d) payments to be made by the authority to another person in repaying, under regulations under this Act or Part I of the Local Government Finance Act 1992, excess receipts by way of non-domestic rates or of council tax, and

(e) any other payments which are to be made by the authority to another person and which the Secretary of State specifies are to be met from a billing authority’s collection fund.

(3) The power to specify under this section—

(a) includes power to revoke or amend a specification made under the power;

(b) may be exercised differently in relation to different authorities.

General funds

91

(1) For the purposes of this section each of the following is a relevant authority—

(a) a district council,

(aa) a county council to which have been transferred, by or in consequence of an order under section 17 of the Local Government Act 1992 ... or Part 1 of the Local Government and Public Involvement in Health Act 2007 , the functions of district councils in relation to the county council’s area,

(ab) the Greater London Authority,

(b) a London borough council, and

(2) Every relevant authority shall establish, and then maintain, a fund (to be called its general fund) in accordance with this Part.

(3) Subject to subsections (3A) to (3D) below, An authority’s general fund must be established on 1 April 1990.

(3A) In the case of a district council which is established for an area by an order under section 17 of the Local Government Act 1992 or section 17 of the Regional Assemblies (Preparations) Act 2003, the general fund must be established on the date on which by virtue of the order the structural or boundary change affecting the area comes into force.

(3B) In the case of—

(a) a county council which is established by such an order and to which are transferred by or in consequence of the order the functions of district councils in relation to the county council’s area, or

(b) an existing county council to which are transferred by or in consequence of such an order the functions of district councils in relation to the county council’s area,

the general fund must be established on the date on which by virtue of the order the structural change comes into force ....

(3C) In the case of the Greater London Authority, the general fund must be established on a date specified in regulations.

(3D) In the case of—

(a) a district council or London borough council established by an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, or

(b) a county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of such an order,

the general fund must be established on a date specified in the order or in regulations made under section 14 of that Act.

(4) Any sum received by a relevant authority on or after the date on which it is required by this section to establish its general fund shall be paid into that fund; but this does not apply to a sum which is to be paid into its collection fund or a trust fund.

(5) Any payment to be made by a relevant authority on or after the date on which it is required by this section to establish its general fund shall be met from that fund; but this does not apply to a payment which is to be met from its collection fund or a trust fund.

(6) After 31 March 1990 no district council or London borough council shall be required to keep a general rate fund; and the assets held in the general rate fund of such an authority immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred to its general fund on that date.

(7) After 31 March 1990 the Council of the Isles of Scilly shall not be required to keep any fund known as its general fund and required (apart from this subsection) to be kept under any order made under section 265 of the Local Government Act 1972; and the assets held in that fund immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred on that date to the Council’s general fund established under this section.

(8) The assets held in the county fund of a relevant county council immediately before the reorganisation date (other than assets forming part of a trust fund) shall be transferred on that date to its general fund established under this section.

(9) In subsection (8)—

“relevant county council” means—a county council such as is referred to in subsection (3B)(b) above, oran existing county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, and

“the reorganisation date” means the date on which the council is required by this section to establish its general fund.

General funds: supplementary

92

(1) In this section “relevant authority” has the same meaning as in section 91 above.

(2) The Secretary of State may make regulations—

(a) about the relationship of a relevant authority’s general fund to its other funds;

(b) providing for assets falling within a relevant authority’s general fund to be held in separate funds within the general fund.

(3) The regulations may provide that any fund established by a relevant authority on or after 1 April 1990, other than its collection fund or a trust fund, is to be maintained as a separate fund falling within its general fund.

(4) The regulations may provide that such assets as are transferred to a relevant authority’s general fund under section 91(6), (7) or (8) above and fall within a prescribed description shall be held in separate funds falling within the general fund; and the number and composition of the separate funds shall be such as are prescribed.

The City fund

93

(1) The Common Council shall establish, and then maintain, a fund (to be called the City fund) in accordance with this Part.

(2) The City fund must be established on 1 April 1990.

(3) Any sum received by the Common Council after 31 March 1990 shall be paid into the City fund if it is not a sum which is to be paid into its collection fund or a trust fund and—

(a) it is received in respect of the general rate, the poor rate or the St. Botolph tithe rate, or

(b) it would have fallen to be credited in aid of any of those rates had this Act not been passed.

(4) Any payment to be made by the Common Council after 31 March 1990 shall be met from the City fund if it is not a payment which is to be met from its collection fund or a trust fund and if, had this Act not been passed, it would have fallen to be met out of—

(a) the general rate, the poor rate or the St. Botolph tithe rate, or

(b) sums which, had this Act not been passed, would have fallen to be credited in aid of any of those rates.

(5) No sum shall be paid into, and no payment shall be met from, the City fund except in accordance with subsections (3) and (4) above.

(6) The assets of the Common Council subsisting immediately before 1 April 1990 shall be transferred to the City fund on that date if they are assets—

(a) subsisting in respect of the general rate, the poor rate or the St. Botolph tithe rate, or

(b) representing sums credited in aid of any of those rates.

The City: further provisions

94

(1) The Secretary of State may make regulations—

(a) about the relationship of the City fund to other funds of the Common Council;

(b) providing for assets falling within the City fund to be held in separate funds within the City fund;

(2) The regulations may provide that any fund established by the Common Council on or after 1 April 1990, and falling within a prescribed description, is to be maintained as a separate fund falling within the City fund.

(3) The regulations may provide that such assets as are transferred to the City fund under section 93(6) above and fall within a prescribed description shall be held in separate funds falling within the City fund; and the number and composition of the separate funds shall be such as are prescribed.

(4) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund into which both the following must or may be paid—

(a) sums which must be paid into the City fund under section 93(3) above, and

(b) other sums.

(5) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund from which both the following must or may be met—

(a) payments which must be met from the City fund under section 93(4) above, and

(b) other payments.

Calculations

Calculations to be made by authorities

95

Substitute calculations

96

Transfers between funds

Principal transfers between funds

97

(1) Subject to subsection (2) below, a billing authority which has made calculations in accordance with sections 31A, 31B and 34 to 36 of the Local Government Finance Act 1992 (originally or by way of substitute) shall transfer from its collection fund to its general fund an amount which shall be calculated by applying the formula—

$$B×T$where—B is the amount calculated (or last calculated) by the authority under section 31B(1) of that Act as the basic amount of its council tax;T is the amount determined for item T in section 31B(1) of that Act.$

(2) Where the amount given by subsection (1) above is a negative amount, the authority shall transfer the equivalent positive amount from its general fund to its collection fund.

(2A) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its collection fund to its general fund such amounts as may be specified in or determined in accordance with the regulations by reference to—

(a) sums received by the authority in respect of non-domestic rates under this Act, and

(b) sums received by the authority under or by virtue of Schedule 7B (local retention of non-domestic rates) and required to be paid into its collection fund by virtue of provision made by or under section 90(1)(d) or (da).

(2B) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its general fund to its collection fund such amounts as may be specified in or determined in accordance with the regulations by reference to sums received by the authority in respect of non-domestic rates under this Act.

(3) Where in accordance with regulations under section 99(3) below a billing authority has estimated that there is a surplus in its collection fund for the preceding year, it shall transfer from its collection fund to its general fund an amount equal to so much of the surplus as, in accordance with the regulations, the authority calculates to be its share.

(4) Where in accordance with regulations under section 99(3) below a billing authority has estimated that there is a deficit in its collection fund for the preceding year, it shall transfer from its general fund to its collection fund an amount equal to so much of the deficit as, in accordance with the regulations, the authority calculates must be borne by it.

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

(5) In this section and sections 98 and 99 below, any reference to a billing authority’s general fund shall be construed in relation to the Common Council as a reference to the City fund.

Other transfers between funds

98

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Regulations under section 89(5) above may include provision that—

(a) any sum to which they relate shall be transferred from an authority’s collection fund to its general fund . . .;

(b) the sum so transferred shall be held, invested or otherwise used in such manner as may be prescribed;

(c) a sum equal to the sum transferred shall be transferred to the authority’s collection fund from its general fund . . .;

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

(4) If the Secretary of State directs it to do so, a billing authority shall transfer from its collection fund to its general fund . . . such an amount as is specified in, or calculated in a manner specified in, the direction; and the transfer shall be made at such time as is specified in the direction.

(5) If the Secretary of State directs it to do so, a billing authority shall transfer to its collection fund from its general fund . . . such an amount as is specified in, or calculated in a manner specified in, the direction; and the transfer shall be made at such time as is specified in the direction.

(6) Different directions may be given to different authorities under subsection (4) or (5) above.

Regulations about funds

99

(1) The Secretary of State may make regulations about the discharge of the following liabilities of a billing authority—

(a) the liability to pay anything from its collection fund or its general fund in respect of any precept issued by a major or local precepting authority under Part I of the Local Government Finance Act 1992;

(b) the liability to transfer anything from its collection fund under section 97(1) or (3) or regulations under section 97(2A) above; and

(c) the liability to transfer anything from its general fund under section 97(2) or (4) above or regulations under section 97(2B) above.

(2) The regulations may include provision—

(a) that anything falling to be paid or transferred must be paid or transferred within a prescribed period;

(b) that anything falling to be paid or transferred must be paid or transferred in instalments of such amounts, and at such times, as are determined by the billing authority in accordance with prescribed rules;

(c) that the billing authority must inform any precepting authorities when instalments will be paid and how they are to be calculated;

(d) that if an instalment is not paid to a precepting authority in accordance with the regulations, it is to be entitled to interest on the amount of the instalment;

(e) as to the circumstances in which the billing authority is to be treated as having discharged the liabilities mentioned in subsection (1) above;

(f) as to the recovery (by deduction or otherwise) of any excess amount paid by the billing authority to any precepting authority in purported discharge of the liability mentioned in subsection (1)(a) above; and

(g) as to the transfer back of any excess amount transferred by the billing authority in purported discharge of the liability mentioned in subsection (1)(b) or (c) above.

(3) The Secretary of State may by regulations make provision as regards any financial year—

(a) that a billing authority must estimate at a prescribed time in the preceding financial year and in accordance with prescribed rules whether there is a deficit or surplus in its collection fund for that year and, if so, the amount of the deficit or surplus;

(b) that any surplus or deficit so estimated shall in the financial year concerned—

(i) be shared among, or be borne between, the billing authority and one or more relevant authorities in accordance with prescribed rules; or

(ii) in the case of the financial year beginning in 1993, belong solely to, or be borne solely by, the billing authority;

(c) that the billing authority must within a prescribed period inform prescribed relevant authorities of the effects of any estimates and rules mentioned in paragraphs (a) and (b) above;

(d) as to the manner in which any payments which fall to be made by a billing authority or a relevant authority by virtue of any provision included in regulations under paragraph (a) or (b) above must be made;

(e) as to the period within which, or time or times at which, any such payments or instalments of such payments must be made; and

(f) as to the recovery (by deduction or otherwise) of any excess amount paid by a relevant authority or a billing authority in purported discharge of any liability arising by virtue of any provision included in regulations under paragraph (a) or (b) above.

(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3C) In subsection (3) “relevant authority” means—

(a) a major precepting authority, or

(b) the Secretary of State.

(3D) Regulations under subsection (3) may make separate provision in relation to council tax and non-domestic rates, with the effect that—

(a) more than one estimate is to be made by a billing authority of whether there is a deficit or surplus in its collection fund for a financial year and, if so, of the amount of the deficit or surplus,

(b) each estimate takes into account different amounts to be paid into or met from that fund, and

(c) each estimate has different consequences as to the payments to be made, or other functions to be exercised, by the billing authority, major precepting authorities or the Secretary of State.

(4) The Secretary of State may make regulations requiring transfers between funds, or adjustments or assumptions, to be made to take account of any substitute calculation under section 31A(4) of the Local Government Finance Act 1992.

(5) The Secretary of State may make regulations providing that sums standing to the credit of a billing authority’s collection fund at any time in a financial year must not exceed a total to be calculated in such manner as may be prescribed.

(6) Regulations under subsection (5) above in their application to a particular financial year (including regulations amending others) shall not be effective unless they come into force before 1 January in the preceding financial year; but this does not affect regulations which merely revoke others.

Part VII

Power to designate authorities

100

(1) As regards a chargeable financial year the Secretary of State may designate a charging authority if in his opinion—

(a) the amount calculated by it in relation to the year under section 95(4) above is excessive, or

(b) there is an excessive increase in the amount so calculated over the amount calculated by it in relation to the preceding financial year under section 95(4).

(2) As regards a chargeable financial year the Secretary of State may designate a relevant precepting authority if in his opinion—

(a) the aggregate amount of precepts issued by it for the year is excessive, or

(b) there is an excessive increase in that aggregate over the aggregate amount of precepts issued by it for the preceding financial year.

(3) For the purposes of this Part each of the following is a relevant precepting authority—

(a) a county council,

(b) a metropolitan county police authority,

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

(e) the London Fire and Civil Defence Authority.

(4) A decision whether to designate an authority shall be made in accordance with principles determined by the Secretary of State and, in the case of an authority falling within any of the classes specified in subsection (5) below, those principles shall be the same either for all authorities falling within that class or for all of them which respectively have and have not been designated under this Part as regards the preceding financial year.

(5) The classes are—

(a) county councils,

(b) councils of metropolitan districts,

(d) councils of inner London boroughs,

(e) councils of outer London boroughs,

(f) metropolitan county police authorities and the Northumbria Police Authority, and

(g) metropolitan county fire and civil defence authorities.

(6) In construing subsection (1) above any calculation for which another has been substituted at the time designation is proposed shall be ignored.

(7) In construing subsection (2) above any precept for which another has been substituted at the time designation is proposed shall be ignored.

Restriction on power to designate

101

Designation of authorities

102

(1) If the Secretary of State decides under section 100 above to designate an authority he shall notify it in writing of—

(a) his decision,

(b) the principles determined under section 100(4) above in relation to it, and

(c) the amount which he proposes should be the maximum for the amount calculated by it in relation to the year under section 95(4) above or the maximum for the aggregate amount of precepts issued by it for the year (as the case may be).

(2) A designation—

(a) is invalid unless subsection (1) above is complied with, and

(b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection.

(3) Where a charging authority has been designated under this section, and after the designation is made the authority makes substitute calculations in relation to the year in accordance with section 95 above, the substitute calculations shall be invalid unless they are made under section 107(1) below.

(4) Where a precepting authority has been designated under this section, and after the designation is made the authority issues any substitute precept for the year, the substitute precept shall be invalid unless it is issued under section 107(2) below.

(5) Before the end of the period of 28 days beginning with the day it receives a notification under this section, an authority may inform the Secretary of State by notice in writing that—

(a) for reasons stated in the notice, it believes the maximum amount stated under subsection (1)(c) above should be such as the authority states in its notice, or

(b) it accepts the maximum amount stated under subsection (1)(c) above.

(6) References in the following provisions of this Part to a designated authority are to an authority designated under this section.

Transitional years: special provisions

103

(1) In relation to the power to designate under section 100 above as regards the financial year beginning in 1990, that section shall have effect as if subsection (1)(b) read—

(b) there is an excessive increase in the amount so calculated over the relevant notional amount, that is, the amount which would in the Secretary of State’s opinion have been calculated by the authority in relation to the preceding financial year under section 95(4) on the assumption that that year was a chargeable financial year and on such additional assumptions as he thinks fit.

(2) In relation to the power to designate under section 100 above as regards the financial year beginning in 1990, that section shall have effect as if subsection (2)(b) read—

(b) there is an excessive increase in that aggregate over the relevant notional aggregate, that is, the amount which would in the Secretary of State’s opinion have been the aggregate amount of precepts issued by the authority for the preceding financial year on the assumption that that year was a chargeable financial year and on such additional assumptions as he thinks fit.

(3) In relation to the power to designate under section 100 above as regards the financial year beginning in 1990, that section shall have effect as if in subsection (4) “this Part” read “Part I of the Rates Act 1984”.

(4) Where the Secretary of State decides under section 100 above to designate an authority as regards the financial year beginning in 1990, subsections (5) and (6) below shall apply.

(5) Where this subsection applies, section 102 above shall have effect as if the following appeared after subsection (1)(a)—

(aa) where subsection (1A) below applies, the matters there mentioned,

(6) Where this subsection applies, section 102 above shall have effect as if the following appeared after subsection (1)—

(1A) This subsection applies if the decision to designate is made under section 100(1)(b) or (2)(b) above; and the matters referred to in subsection (1)(aa) above are— (a) the relevant notional amount or the relevant notional aggregate (as the case may be), and (b) the additional assumptions made in arriving at that amount or aggregate.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Challenge of maximum amount

104

(1) This section applies where a designated authority informs the Secretary of State by notice in writing under section 102(5)(a) above.

(2) If the authority is a charging authority, after considering any information he thinks is relevant the Secretary of State shall (subject to subsection (8) below) make an order stating the amount which the amount calculated by it in relation to the year under section 95(4) above is not to exceed.

(3) Subject to subsection (4) below, the amount stated under subsection (2) above may be the same as, or greater or smaller than, that stated in the notice under section 102(1)(c) above.

(4) The amount stated under subsection (2) above may not exceed the amount already calculated by the authority in relation to the year under section 95(4) above unless, in the Secretary of State’s opinion, the authority failed to comply with section 95 above in making the calculation.

(5) If the authority is a precepting authority, after considering any information he thinks is relevant the Secretary of State shall (subject to subsection (8) below) make an order stating the amount which the aggregate amount of precepts issued by it for the year is not to exceed.

(6) Subject to subsection (7) below, the amount stated under subsection (5) above may be the same as, or greater or smaller than, that stated in the notice under section 102(1)(c) above.

(7) The amount stated under subsection (5) above may not exceed the aggregate amount of precepts already issued by the authority for the year unless, in the Secretary of State’s opinion, the authority failed to fulfil section 68(3) or 69(3) or (4) above in issuing any precept.

(8) The power to make an order under this section shall be exercisable by statutory instrument, and no such order shall be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(9) An order under this section may relate to two or more authorities.

(10) As soon as is reasonably practicable after an order under this section is made the Secretary of State shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority in the order.

(11) When he serves a notice under subsection (10) above on a precepting authority the Secretary of State shall also serve a copy of it on each charging authority to which the precepting authority has power to issue a precept.

(12) In construing subsection (4) above any calculation for which another has been substituted at the time of designation shall be ignored.

(13) In construing subsection (7) above any precept for which another has been substituted at the time of designation shall be ignored.

Acceptance of maximum amount

105

(1) This section applies where a designated authority informs the Secretary of State by notice in writing under section 102(5)(b) above.

(2) If the authority is a charging authority, as soon as is reasonably practicable after he receives the notice the Secretary of State shall serve on the authority a notice stating the amount which the amount calculated by it in relation to the year under section 95(4) above is not to exceed; and the amount stated shall be that stated in the notice under section 102(1)(c) above.

(3) If the authority is a precepting authority, as soon as is reasonably practicable after he receives the notice the Secretary of State shall serve on the authority a notice stating the amount which the aggregate amount of precepts issued by it for the year is not to exceed; and the amount stated shall be that stated in the notice under section 102(1)(c) above.

(4) When he serves a notice under subsection (3) above the Secretary of State shall also serve a copy of it on each charging authority to which the precepting authority has power to issue a precept.

No challenge or acceptance

106

(1) This section applies where the period mentioned in section 102(5) above ends without a designated authority informing the Secretary of State by notice in writing under section 102(5)(a) or (b) above.

(2) If the authority is a charging authority, as soon as is reasonably practicable after the period ends the Secretary of State shall (subject to subsection (4) below) make an order stating the amount which the amount calculated by it in relation to the year under section 95(4) above is not to exceed; and the amount stated shall be that stated in the notice under section 102(1)(c) above.

(3) If the authority is a precepting authority, as soon as is reasonably practicable after the period ends the Secretary of State shall (subject to subsection (4) below) make an order stating the amount which the aggregate amount of precepts issued by it for the year is not to exceed; and the amount stated shall be that stated in the notice under section 102(1)(c) above.

(4) The power to make an order under this section shall be exercisable by statutory instrument, and no such order shall be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(5) An order under this section may relate to two or more authorities.

(6) As soon as is reasonably practicable after an order under this section is made the Secretary of State shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority in the order.

(7) When he serves a notice under subsection (6) above on a precepting authority the Secretary of State shall also serve a copy of it on each charging authority to which the precepting authority has power to issue a precept.

Substituted calculations and precepts

107

(1) A charging authority which has received a notice under section 104(10), 105(2) or 106(6) above shall make substitute calculations in relation to the year in accordance with section 95 above, but—

(a) section 95(9) shall be ignored for this purpose, and

(b) the calculations shall be made so as to secure that the amount calculated under section 95(4) does not exceed that stated in the notice.

(2) A precepting authority which has received a notice under section 104(10), 105(3) or 106(6) above shall issue, in substitution for any precept or precepts previously issued by it for the year, a precept or precepts in accordance with sections 68 to 70 above, but—

(a) section 68(2) shall be ignored for this purpose, and

(b) the amount of the precept, or the aggregate amount of the precepts, issued by the authority for the year under this section shall not exceed that stated in the notice.

(3) Where calculations are made under subsection (1) above the following provisions apply accordingly—

(a) Part II,

(b) sections 74, 75, 97, 99 and 100(1)(b) and (6) above, and

(4) Where a precept is issued under subsection (2) above the following provisions apply accordingly—

(a) sections 32(4) and (5), 33(3) and (11), 35(1) . . ., 71(5) and (6), 72, 74, 99 and 100(2)(b) and (7) above, and

(b) sections 110(2), 138(2)(d) and 139(2)(b) below.

Failure to substitute

108

(1) Subsection (2) below applies if a charging authority which has received a notice under section 104(10), 105(2) or 106(6) above fails to comply with section 107(1) above before the end of the period of 21 days beginning with the day on which it receives the notice.

(2) During the period of restriction the authority shall have no power to transfer any amount from its collection fund to its general fund or to the City fund (as the case may be) and sections 97 and 98 above shall have effect accordingly.

(3) For the purposes of subsection (2) above the period of restriction is the period which—

(a) begins at the end of the period mentioned in subsection (1) above, and

(b) ends at the time (if any) when the authority complies with section 107(1) above.

(4) Subsection (5) below applies if a precepting authority which has received a notice under section 104(10), 105(3) or 106(6) above fails to comply with section 107(2) above before the end of the period of 21 days beginning with the day on which it receives the notice.

(5) During the period of restriction any authority to which the precepting authority has power to issue a precept shall have no power to pay anything in respect of a precept issued by the precepting authority for the year.

(6) For the purposes of subsection (5) above the period of restriction is the period which—

(a) begins at the end of the period mentioned in subsection (4) above, and

(b) ends at the time (if any) when the precepting authority complies with section 107(2) above.

Other financial requirements

109

(1) This section applies where an order under section 104 above states in the case of an authority an amount greater than that stated in the notice under section 102(1)(c) above.

(2) The Secretary of State may decide to impose on the authority concerned such requirements relating to its expenditure or financial management as he thinks appropriate.

(3) If he does so decide he shall include a statement of his decision and of the requirements in the notice served on the authority under section 104(10) above.

(4) The authority shall comply with any such requirements, and shall report to the Secretary of State whenever he directs it to do so on the extent to which they have been complied with.

Information

110

(1) A charging authority shall notify the Secretary of State in writing of any amount calculated by it under section 95(4) above, whether originally or by way of substitute.

(2) A relevant precepting authority shall notify the Secretary of State in writing of the amount of any precept issued by it under this Act, whether originally or by way of substitute.

(3) A notification under subsection (1) or (2) above must be given before the end of the period of seven days beginning with the day on which the calculation is made or the precept is issued (as the case may be).

(4) The Secretary of State may serve on a charging authority or relevant precepting authority a notice requiring it to supply to him such other information as is specified in the notice and required by him for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part.

(5) The authority shall supply the information required if it is in its possession or control, and shall do so in such form and manner, and at such time, as the Secretary of State specifies in the notice.

(6) An authority may be required under subsection (4) above to supply information at the same time as it gives a notification under subsection (1) or (2) above or at some other time.

(7) If an authority fails to comply with subsection (1) or (2) above, or with subsection (5) above, the Secretary of State may decide whether to exercise his powers, and how to perform his functions, under this Part on the basis of such assumptions and estimates as he sees fit.

(8) In deciding whether to exercise his powers, and how to perform his functions, under this Part the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act.

Part VIII — Financial Administration

Interpretation

111

(1) This section applies for the purposes of this Part.

(2) Each of the following is a relevant authority

(a) a county council,

(aa) a county borough council,

(b) a district council,

(bb) the Greater London Authority;

(bc) a functional body, within the meaning of the 1999 Act;

(bd) the London Pensions Fund Authority;

(d) . . .

(e) a police and crime commissioner,

(ea) a chief officer of police (which, for this purpose, means a chief constable of a police force maintained under section 2 of the Police Act 1996 or the Commissioner of Police of the Metropolis),

(ea) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) a metropolitan county fire and civil defence authority,

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) an Integrated Transport Authority for an integrated transport area in England,

(ia) an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009,

(ib) a combined authority established under section 103 of that Act,

(ic) a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023,

(j) a waste disposal authority,

(k) the Council of the Isles of Scilly,

(l) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(m) a combined fire and rescue authority,

(n) a section 4A fire and rescue authority,

(o) a corporate joint committee

(3) The 1972 Act is the Local Government Act 1972 and the 1985 Act is the Local Government Act 1985 and the 1999 Act is the Greater London Authority Act 1999 and the 2004 Act is the Fire and Rescue Services Act 2004 and the 2011 Act is the Police Reform and Social Responsibility Act 2011.

(3A) In this Part, “council manager”, “elected mayor”, “executive”, “executive arrangements”, “executive leader”, ... “mayor and cabinet executive” and “mayor and council manager executive” have the same meaning as in Part II of the Local Government Act 2000.

(3B) In this Part, “leader and cabinet executive” means—

(a) in relation to England: a leader and cabinet executive (England);

(b) in relation to Wales: a leader and cabinet executive (Wales);

and for this purpose “leader and cabinet executive (England)” and “leader and cabinet executive (Wales)” have the same meanings as in Part 2 of the Local Government Act 2000.

(3C) In this Part—

“section 4A fire and rescue authority” means a fire and rescue authority created by an order under section 4A of the 2004 Act;

“fire and rescue functions”, in relation to a chief officer of police, means—functions which are delegated to the chief officer under provision made under section 4H of the 2004 Act; andfunctions relating to fire and rescue services which are conferred on the chief officer by or by virtue of any enactment;

“policing functions”, in relation to a person who is a chief officer of police, means functions of that person relating to the police force of which that person is the chief officer;

“relevant police and crime commissioner”, in relation to a section 4A fire and rescue authority, means the police and crime commissioner for the police area—which corresponds to the area of the fire and rescue authority, orwithin which the area of the fire and rescue authority falls;

“relevant police and crime panel”, in relation to a section 4A fire and rescue authority, means the police and crime panel for the police area—which corresponds to the area of the fire and rescue authority, orwithin which the area of the fire and rescue authority falls;

“relevant section 4A fire and rescue authority”, in relation to a chief officer of police, means a section 4A fire and rescue authority some of whose functions have been delegated to the chief officer under provision made under section 4H of the 2004 Act.

(3D) In this Part “corporate joint committee” means a corporate joint committee established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021.

(4) The commencement day is the day on which this Part comes into force.

(5) This Part shall come into force at the end of the period of 2 months beginning with the day on which this Act is passed.

Financial administration as to certain authorities

112

(1) On and after the commencement day each authority mentioned in subsection (2) below shall make arrangements for the proper administration of its financial affairs and shall secure that one of its officers has responsibility for the administration of those affairs.

(2) The authorities are—

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

(ab) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any combined fire and rescue authority.,

(c) any economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009.

Qualifications of responsible officer

113

(1) On and after the commencement day the person having responsibility for the administration of the financial affairs of a relevant authority under section 151 of the 1972 Act, section 73 of the 1985 Act section 127 of the 1999 Act or section 112 above shall fulfil the requirement in one (or the requirements in each) of the paragraphs of subsection (2) below.

(2) The requirements are that—

(a) he is a member of one or more of the bodies mentioned in subsection (3) below;

(b) immediately before the commencement day he had responsibility for the administration of the financial affairs of any of the authorities mentioned in section 111(2)(a) to (k) above under section 151 of the 1972 Act or section 73 of the 1985 Act.

(3) The bodies are—

(a) the Institute of Chartered Accountants in England and Wales,

(b) the Institute of Chartered Accountants of Scotland,

(d) the Chartered Institute of Public Finance and Accountancy,

(e) the Institute of Chartered Accountants in Ireland,

(f) the Chartered Institute of Management Accountants, and

(g) any other body of accountants established in the United Kingdom and for the time being approved by the Secretary of State for the purposes of this section.

(4) The authority mentioned in subsection (2)(b) above need not be the same as that under consideration for the purpose of applying subsection (1) above.

Functions of responsible officer as regards reports

114

(1) On and after the commencement day the person having responsibility for the administration of the financial affairs of a relevant authority under section 151 of the 1972 Act, section 73 of the 1985 Act section 127 of the 1999 Act, section 4D or 4I of the 2004 Act , or Schedule 1, 2 or 4 to the 2011 Act or section 112 above shall have the duties mentioned in this section, without prejudice to any other functions; and in this section he is referred to as the chief finance officer of the authority.

(2) Subject to subsection (2A), the chief finance officer of a relevant authority shall make a report under this section if it appears to him that the authority, a committee of the authority, a person holding any office or employment under the authority, a member of the relevant police force,, or a joint committee on which the authority is represented—

(a) has made or is about to make a decision which involves or would involve the authority incurring expenditure which is unlawful,

(b) has taken or is about to take a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency on the part of the authority, or

(2ZA) In the case of a section 4A fire and rescue authority the reference to a person holding any office or employment under the authority includes a member of staff of the relevant police and crime commissioner who is exercising functions of that authority by virtue of an order under section 4A of the 2004 Act.

(2A) Where a relevant authority is operating executive arrangements, the chief finance officer of the relevant authority shall not make a report under subsection (2) in respect of any action referred to in paragraph (a), (b) or (c) of that subsection unless it is action taken otherwise than by or on behalf of the relevant authority’s executive.

(3) The chief finance officer of a relevant authority shall make a report under this section if it appears to him that the expenditure of the authority incurred (including expenditure it proposes to incur) in a financial year is likely to exceed the resources (including sums borrowed) available to it to meet that expenditure.

(3A) It shall be the duty of the chief finance officer of a relevant authority (except where the relevant authority is a chief officer of police), in preparing a report in pursuance of subsection (2) above, to consult so far as practicable—

(a) with—

(i) in the case of a Welsh county council or county borough council, the person who is for the time being appointed as the authority’s chief executive under section 54 of the Local Government and Elections (Wales) Act 2021;

(ii) in the case of a corporate joint committee, the person who is for the time being appointed as the authority’s chief executive;

(iii) in any other case, the person who is for the time being designated as the head of the authority’s paid service under section 4 of the Local Government and Housing Act 1989; and

(b) with the person who is for the time being responsible for performing the duties of the authority’s monitoring officer under section 5 of the Local Government and Housing Act 1989.

(3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3C) Subsection (3A) above shall have effect in relation to Transport for London with the substitution for paragraphs (a) and (b) of the words “with the person who is for the time being designated for the purpose under subsection (3D) below”.

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