Legalize / United Kingdom / Public General Act

Local Government Finance Act 2012

Type Public General Act

Publication 2012-10-31

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Non-domestic rating

Local retention of non-domestic rates

1

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

(2) After section 59 insert—

(59A) 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.

Revenue support grant

2

(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.

Additional grant

3

(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.

General GLA grant

4

(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.

Local retention of non-domestic rates: further amendments

5

(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.

Definition of domestic property

6

(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.

Payments to and from authorities

7

(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)” insert “, 84H(2) and 86B(2)”.

(3) In subsection (7) (payments to receiving authorities to which regulations may apply)—

(a) after “84C” insert “, 84K, 84N and 86B”, and

(b) for the words from “, paragraphs 12 and 15 of that Schedule” to the end substitute “and paragraphs 12 and 15 of that Schedule.”

(4) In subsection (8) (payments from receiving authorities to which regulations may apply), for “and 84C” substitute “, 84C, 84K and 84N”.

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

Provision of information about non-domestic rates

8

(1) In Schedule 9 to the LGFA 1988, paragraph 2 (collection and recovery) is amended as follows.

(2) After sub-paragraph (2)(ge) insert—

(gf) that the payee must publish prescribed information in the prescribed manner,

(3) In sub-paragraph (2)(h), after “when the payee serves a notice” insert “or on the request of the ratepayer”.

Council tax

Council tax reduction schemes: review

9

(1) The Secretary of State shall make provision for an independent review of all council tax reduction schemes made under the provisions of this Act—

(a) to consider their effectiveness, efficiency, fairness and transparency and their impact on the localism agenda, and

(b) to make recommendations as to whether such schemes should be brought within universal credit.

(2) A review under subsection (1) shall take place within three years after this Act comes into effect.

Council tax reduction schemes

10

(1) For section 13A of the LGFA 1992 (billing authority’s power to reduce amount of tax payable) substitute—

(13A) (1) The amount of council tax which a person is liable to pay in respect of any chargeable dwelling and any day (as determined in accordance with sections 10 to 13)— (a) in the case of a dwelling situated in the area of a billing authority in England, is to be reduced to the extent, if any, required by the authority’s council tax reduction scheme (see subsection (2)); (b) in the case of a dwelling situated in the area of a billing authority in Wales, is to be reduced to the extent, if any, required by any council tax reduction scheme made under regulations under subsection (4) that applies to that dwelling; (c) in any case, may be reduced to such extent (or, if the amount has been reduced under paragraph (a) or (b), such further extent) as the billing authority for the area in which the dwelling is situated thinks fit. (2) Each billing authority in England must make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings situated in its area, by— (a) persons whom the authority considers to be in financial need, or (b) persons in classes consisting of persons whom the authority considers to be, in general, in financial need. (3) Schedule 1A (which contains provisions about schemes under subsection (2)) has effect. (4) The Welsh Ministers may by regulations— (a) require a person or body specified in the regulations to make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings to which the scheme applies, by persons to whom the scheme applies, (b) impose requirements on that person or body regarding the matters which must be included in that scheme, and (c) make other provision for and in connection with such schemes. (5) Schedule 1B (which contains further provisions about regulations under subsection (4) and about schemes under those regulations) has effect. (6) The power under subsection (1)(c) includes power to reduce an amount to nil. (7) The power under subsection (1)(c) may be exercised in relation to particular cases or by determining a class of case in which liability is to be reduced to an extent provided by the determination. (8) No regulations under subsection (4) are to be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the National Assembly for Wales. (9) In this Part “council tax reduction scheme” means a scheme under subsection (2) or regulations under subsection (4).

(2) Schedule 4 (amendments relating to council tax reduction schemes) has effect.

(3) In that Schedule—

(a) Part 1 sets out the Schedules to be inserted as Schedules 1A and 1B to the LGFA 1992, and

(b) Part 2 contains other amendments.

(4) Each billing authority in England must make a council tax reduction scheme under section 13A(2) of the LGFA 1992 no later than 31 January 2013; and the first financial year to which that scheme relates must be the year beginning with 1 April 2013.

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

Power to determine further discounts for certain dwellings

11

(1) In section 11A of the LGFA 1992 (discounts: special provision for England), after subsection (4) insert—

(4A) For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in England may by determination provide— (a) in relation to all dwellings of that class in its area, or (b) in relation to such description of dwellings of that class as it may specify in the determination, that the discount under section 11(2)(a) shall not apply or shall be such percentage (which may be 100) as it may so specify. (4B) Where a class of dwellings is prescribed for the purposes of subsection (4A) by reference to the period of time for which a condition is met, a billing authority may not, under paragraph (b) of that subsection, specify a description of dwellings of that class by reference (wholly or partly) to a shorter such period.

(2) In subsections (1) and (5) of that section, for “or (4)” substitute “, (4) or (4A)”.

(3) Regulations may be made for the purposes of the subsection inserted by subsection (1) for a financial year beginning with or after 1 April 2013 (and, if a class of dwelling is prescribed by reference to a period of time for which a condition is met, it does not matter whether the period begins before this section comes into force).

Power to set higher amount for long-term empty dwellings

12

(1) The LGFA 1992 is amended as follows.

(2) After section 11A insert—

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