Law

Local Government Finance Act 1992

United Kingdom · statute

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In force since 2026-06-29, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 202 provisions
  1. Title and introductory text
  2. 1 Council tax in respect of dwellings.
  3. 2 Liability to tax determined on a daily basis.
  4. 3 Meaning of “dwelling".
  5. 4 Dwellings chargeable to council tax.
  6. 5 Different amounts for dwellings in different valuation bands.
  7. 6 Persons liable to pay council tax.
  8. 7 Liability in respect of caravans and boats.
  9. 8 Liability in prescribed cases.
  10. 9 Liability of spouses.
  11. 10 Basic amounts payable.
  12. 11 Discounts : England.
  13. 11A Discounts: special provision for England
  14. 11B Higher amount for long-term empty dwellings: England
  15. 11C Higher amount for dwellings occupied periodically: England
  16. 11D Section 11C: regulations
  17. 11E Discounts: Wales
  18. 11F Discounts: Wales (less discount or no discount)
  19. 12 Discounts: special provision for Wales.
  20. 12A Higher amount for long-term empty dwellings: Wales
  21. 12B Higher amount for dwellings occupied periodically: Wales
  22. 13 Reduced amounts.
  23. 13A Reductions by billing authority
  24. 13B Transitional arrangements
  25. 14 Administration, penalties and enforcement.
  26. 14A Regulations about powers to require information
  27. 14B Regulations about offences
  28. 14C Regulations about penalties
  29. 14D Sections 14A to 14C: supplementary
  30. 15 Valuation tribunals.
  31. 16 Appeals: general.
  32. 17 Completion of new dwellings.
  33. 18 Death of persons liable.
  34. 19 Exclusion of Crown exemption in certain cases.
  35. 20 Listing officers.
  36. 21 Valuations for purposes of lists.
  37. 22 Compilation and maintenance of lists.
  38. 22A Amalgamated valuation lists for Welsh billing authorities.
  39. 22B Compilation and maintenance of new lists
  40. 23 Contents of lists.
  41. 24 Alteration of lists.
  42. 25 Compilation and maintenance of new lists.
  43. 25A Powers of entry: England
  44. 26 Powers of entry: Wales
  45. 27 Information about properties.
  46. 28 Information about lists.
  47. 29 Information about proposals and appeals.
  48. 30 Amounts for different categories of dwellings.
  49. 31 Substituted amounts.
  50. 31A Calculation of council tax requirement by authorities in England
  51. 31B Calculation of basic amount of tax by authorities in England
  52. 32 Calculation of budget requirement by authorities in Wales.
  53. 33 Calculation of basic amount of tax by authorities in Wales.
  54. 34 Additional calculations where special items relate to part only of area.
  55. 35 Special items for purposes of section 34.
  56. 36 Calculation of tax for different valuation bands.
  57. 36A Substitute calculations: England
  58. 37 Substitute calculations.
  59. 38 Information for purposes of Chapter III.
  60. 39 Precepting and precepted authorities.
  61. 40 Issue of precepts by major precepting authorities.
  62. 41 Issue of precepts by local precepting authorities.
  63. 42 Substituted precepts.
  64. 42A Calculation of council tax requirement by authorities in England
  65. 42B Calculation of basic amount of tax by authorities in England
  66. 43 Calculation of budget requirement by authorities in Wales.
  67. 44 Calculation of basic amount of tax by authorities in Wales .
  68. 45 Additional calculations where special items relate to part only of area.
  69. 46 Special items for purposes of section 45.
  70. 47 Calculation of tax for different valuation bands.
  71. 48 Calculation of amount payable by each billing authority.
  72. 49 Substitute calculations.
  73. 49A Calculation of council tax requirement by authorities in England
  74. 49B Substitute calculations
  75. 50 Calculation of budget requirement by authorities in Wales .
  76. 51 Substitute calculations.
  77. 52 Information for purposes of Chapter IV.
  78. 52ZA Interpretation of Chapter
  79. 52ZB Duty to determine whether council tax excessive
  80. 52ZC Determination of whether increase is excessive
  81. 52ZD Approval of principles
  82. 52ZE Alternative notional amounts
  83. 52ZF Billing authority's duty to make substitute calculations
  84. 52ZG Arrangements for referendum
  85. 52ZH Effect of referendum
  86. 52ZI Failure to hold referendum
  87. 52ZJ Major precepting authority's duty to make substitute calculations
  88. 52ZK Major precepting authority's duty to notify appropriate billing authorities
  89. 52ZL Local precepting authority's duty to make substitute calculations
  90. 52ZM Local precepting authority's duty to notify appropriate billing authority
  91. 52ZN Arrangements for referendum
  92. 52ZO Effect of referendum
  93. 52ZP Failure to hold referendum
  94. 52ZQ Regulations about referendums
  95. 52ZR Direction that referendum provisions are not to apply
  96. 52ZS Directions to billing authorities
  97. 52ZT Directions to major precepting authorities
  98. 52ZU Directions to the Greater London Authority
  99. 52ZV Directions to local precepting authorities
  100. 52ZW Further provisions about directions
  101. 52ZX Meaning of relevant basic amount of council tax
  102. 52ZY Information for purposes of Chapter 4ZA
  103. 52A Interpretation.
  104. 52B Power to designate or nominate authorities.
  105. 52C Alternative notional amounts.
  106. 52D Designation or nomination.
  107. 52E Designation.
  108. 52F Challenge of maximum amount.
  109. 52G Acceptance of maximum amount.
  110. 52H No challenge or acceptance.
  111. 52I Duty of designated billing authority.
  112. 52J Duty of designated precepting authority.
  113. 52K Failure to substitute.
  114. 52L Nomination.
  115. 52M Designation after nomination.
  116. 52N No designation after nomination.
  117. 52P Designation after previous designation.
  118. 52Q Challenge of maximum amount.
  119. 52R Acceptance of maximum amount.
  120. 52S No challenge or acceptance.
  121. 52T Duty of designated billing authority.
  122. 52U Duty of designated precepting authority.
  123. 52V Failure to make or substitute calculations.
  124. 52W Meaning of budget requirement.
  125. 52X Calculations to be net of precepts.
  126. 52Y Information for purposes of Chapter IVA.
  127. 52Z Separate administration in England and Wales.
  128. 65 Duty to consult ratepayers.
  129. 66 Judicial review.
  130. 67 Functions to be discharged only by authority.
  131. 68 Information required by Secretary of State.
  132. 69 Interpretation etc. of Part I.
  133. 70 Council tax in respect of dwellings.
  134. 71 Liability to be determined on a daily basis.
  135. 72 Dwellings chargeable to council tax.
  136. 73 Alterations to valuation roll.
  137. 74 Different amounts for dwellings in different valuation bands.
  138. 75 Persons liable to pay council tax.
  139. 76 Liability in prescribed cases.
  140. 77 Liability of spouses.
  141. 77A Liability of civil partners
  142. 78 Basic amounts payable.
  143. 79 Discounts.
  144. 80 Reduced amounts.
  145. 80A Local authority's power to reduce amount of tax payable
  146. 81 Appeal to the First-tier Tribunal.
  147. 82 Appeal procedure.
  148. 83 Completion of new dwellings.
  149. 84 Compilation and maintenance of valuation lists.
  150. 85 Distribution of lists.
  151. 86 Valuation of dwellings.
  152. 87 Alteration of lists.
  153. 88 Compilation and maintenance of new lists.
  154. 89 Powers of entry.
  155. 90 Information about properties.
  156. 91 Information about lists.
  157. 92 Information about proposals and appeals.
  158. 93 Setting of council tax.
  159. 94 Substituted and reduced settings.
  160. 94A Transitional provisions.
  161. 95 District council tax: setting and collection.
  162. 96 Information.
  163. 97 Levying and collection of council tax.
  164. 98 Information required by Secretary of State.
  165. 99 Interpretation of Part II.
  166. 100 Abolition of community charges.
  167. 101 Transitory exemption for school leavers.
  168. 102 Transitory enforcement provisions for England and Wales.
  169. 103 Council tax benefit.
  170. 104 Non-domestic rating, grants and funds.
  171. 105 Grants to voluntary organisations.
  172. 106 Council tax and community charges: restrictions on voting.
  173. 107 Water and sewerage charges.
  174. 108 Payments to local authorities by Secretary of State.
  175. 108A Special grants.
  176. 109 Council tax grants.
  177. 110 Amendments to the 1975 Act in relation to non-domestic rates.
  178. 111 Statutory and other references to rateable values etc.
  179. 112 Council tax and community charges: restrictions on voting.
  180. 113 Orders and regulations.
  181. 114 Power to make supplementary provision.
  182. 115 Financial provisions.
  183. 116 Interpretation: general.
  184. 117 Minor and consequential amendments and repeals.
  185. 118 Savings and transitional provisions.
  186. 119 Short title, commencement and extent.
  187. SCHEDULE 1 Persons Disregarded for Purposes of Discount : England
  188. SCHEDULE 1A Council tax reduction schemes: England
  189. SCHEDULE 1B Council tax reduction schemes: Wales
  190. SCHEDULE 2 Administration
  191. SCHEDULE 3 Penalties
  192. SCHEDULE 4 Enforcement: England and Wales
  193. SCHEDULE 5 Part Residential Subjects: Scotland
  194. SCHEDULE 6 Completion of New Buildings: Scotland
  195. SCHEDULE 7 Reduction of Council Tax: Scotland
  196. SCHEDULE 8 Enforcement: Scotland
  197. SCHEDULE 9 Social Security: Council Tax Benefit
  198. SCHEDULE 10 Local Government Finance: England and Wales
  199. SCHEDULE 11 Water and Sewerage Charges: Scotland
  200. SCHEDULE 12 Payments to Local Authorities by Secretary of State: Scotland
  201. SCHEDULE 13 Minor and Consequential Amendments
  202. SCHEDULE 14 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

202 provisions

52ZD Approval of principles

(1) The principles for a financial year must be set out in a report which must be laid before the House of Commons. (2) If a report for a financial year is not laid before the specified date or, if so laid, is not approved by resolution of the House of Commons on or before the specified date— (a) no principles have effect for that year, and (b) accordingly, no authority's relevant basic amount of council tax for the year is capable of being excessive for the purposes of this Chapter. (3) If the Secretary of State does not propose to determine a set of principles for a financial year, the Secretary of State must lay a report before the House of Commons before the specified date giving the Secretary of State's reasons for not doing so. (4) In this section “the specified date”, in relation to a financial year, means the date on which the local government finance report for the year under paragraph 5(1) of Schedule 7B to the 1988 Act is approved by resolution of the House of Commons.

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52ZE Alternative notional amounts

(1) The Secretary of State may make a report specifying an alternative notional amount in relation to any year under consideration and any authority. (2) An alternative notional amount is an amount which the Secretary of State thinks should be used as the basis of any comparison in applying section 52ZC above in place of the authority's relevant basic amount of council tax for the preceding year. (3) A report under this section— (a) may relate to two or more authorities; (b) may be amended by a subsequent report under this section; (c) must contain such explanation as the Secretary of State thinks desirable of the need for the calculation of the alternative notional amount and the method for that calculation; (d) must be laid before the House of Commons. (4) Subsection (5) below applies if a report under this section for a financial year is approved by resolution of the House of Commons on or before the date on which the report under section 52ZD above for that year is approved by resolution of the House of Commons. (5) Section 52ZC above has effect, as regards the year under consideration and any authority to which the report relates, as if the reference in subsection (3) of that section to the authority's relevant basic amount of council tax for the financial year immediately preceding the year under consideration were a reference to the alternative notional amount for that year. (6) In this section “year under consideration” has the same meaning as in section 52ZC above.

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52ZF Billing authority's duty to make substitute calculations

(1) The billing authority must make substitute calculations for the financial year in compliance with this section; but those calculations do not have effect for the purposes of Chapter 3 above except in accordance with sections 52ZH and 52ZI below. (2) Substitute calculations for a financial year comply with this section if— (a) they are made in accordance with sections 31A, 31B and 34 to 36 above, ignoring section 31A(11) above for this purpose, (b) the relevant basic amount of council tax produced by applying section 52ZX below to the calculations is not excessive by reference to the principles determined by the Secretary of State under section 52ZC above for the year, and (c) they are made in accordance with this section. (3) In making the substitute calculations, the authority must— (a) use the amount determined in the previous calculation for the year under section 31A(3) above so far as relating to amounts which the authority estimates it will accrue in the year in respect of locally retained non-domestic rates, revenue support grant, ... special grant or (in the case of the Common Council only) police grant, and (b) use the amount determined in the previous calculation for the year for item T in section 31B(1) above and (where applicable) item TP in section 34(3) above. (3A) In this Chapter, “locally retained non-domestic rates”, in relation to a billing authority or a major precepting authority, means amounts received by the authority under, or under regulations under, Schedule 7B to the Local Government Finance Act 1988, or under regulations under section 99(3) of that Act in connection with the operation of that Schedule. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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52ZG Arrangements for referendum

(1) The billing authority must make arrangements to hold a referendum in relation to the authority's relevant basic amount of council tax for the financial year in accordance with this section. (2) Subject as follows, the referendum is to be held on a date decided by the billing authority. (3) That date must be not later than— (a) the first Thursday in May in the financial year, or (b) such other date in that year as the Secretary of State may specify by order. (4) An order under subsection (3) above must be made not later than— (a) 1 February in the financial year preceding the year mentioned in paragraph (b) of that subsection, or (b) in the case of an order affecting more than one financial year, 1 February in the financial year preceding the first of those years. (5) The persons entitled to vote in the referendum are those who, on the day of the referendum— (a) would be entitled to vote as electors at an election for members for an electoral area of the billing authority, and (b) are registered in the register of local government electors at an address within the billing authority's area. (5A) As soon as is reasonably practicable after determining that it is required to hold a referendum in relation to its relevant basic amount of council tax for the financial year, the billing authority must notify that fact in writing to any body that has issued a levy or a special levy to it for the financial year. (6) In this section— “electoral area” means— where the billing authority is a district council, a London borough council or the Common Council of the City of London, a ward; where the billing authority is a county council, an electoral division; where the billing authority is the Council of the Isles of Scilly, a parish; “register of local government electors” means the register of local government electors kept in accordance with the provisions of the Representation of the People Acts. (7) This section is subject to regulations under section 52ZQ below.

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52ZH Effect of referendum

(1) The billing authority must inform the Secretary of State, and any body the authority was required to notify under section 52ZG(5A), of the result of the referendum. (2) Subsection (3) below applies if the result is that the billing authority's relevant basic amount of council tax for the financial year is approved by a majority of persons voting in the referendum. (3) The authority's calculations from which that amount was derived continue to have effect for that year for the purposes of this Act. (4) Subsection (5) below applies if the result is that the billing authority's relevant basic amount of council tax for the financial year is not approved by a majority of persons voting in the referendum. (5) The substitute calculations made in relation to the year under section 52ZF above have effect in relation to the authority and the financial year.

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52ZI Failure to hold referendum

(1) If the billing authority fails to hold a referendum in accordance with this Chapter, the substitute calculations made in relation to the year under section 52ZF above have effect in relation to the authority and the financial year. (2) If the authority has not made those substitute calculations, during the period of restriction the authority has no power to transfer any amount from its collection fund to its general fund; and sections 97 and 98 of the 1988 Act have effect accordingly. (3) In subsection (2) above “the period of restriction” means the period— (a) beginning with the latest date on which the referendum could have been held, and (b) ending with the date (if any) when the billing authority makes the substitute calculations.

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52ZJ Major precepting authority's duty to make substitute calculations

(1) The major precepting authority must make substitute calculations for the financial year in compliance with this section. (2) Substitute calculations made for a financial year by a major precepting authority other than the Greater London Authority comply with this section if— (a) they are made in accordance with sections 42A, 42B and 45 to 48 above, (b) the relevant basic amount of council tax for the year produced by the calculations is not excessive by reference to the principles determined by the Secretary of State under section 52ZC above for the year, and (c) they are made in accordance with this section. (3) Substitute calculations made for a financial year by the Greater London Authority comply with this section if— (a) they are made by applying the relevant London provisions and sections 47 and 48 above to the Authority's substitute consolidated council tax requirement for the year, and (b) they are made in accordance with this section. (4) In making the substitute calculations, a major precepting authority other than the Greater London Authority must— (a) use the amount determined in the previous calculation under section 42A(3) above so far as relating to amounts which the authority estimates it will accrue in the year in respect of locally retained non-domestic rates, revenue support grant, ... special grant or police grant, and (b) use the amount determined in the previous calculation for item T in section 42B(1) above or (where applicable) item TP in section 45(3) above. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) In making the substitute calculations, the Greater London Authority must use any amount determined in the previous calculations for item T in section 88(2) of the Greater London Authority Act 1999 or for item TP2 in section 89(4) of that Act. (7) In this Chapter— “the relevant London provisions” means sections 88 and (where applicable) 89 of the Greater London Authority Act 1999; “the Authority's substitute consolidated council tax requirement”, in relation to a financial year, means the Authority's substitute consolidated council tax requirement— agreed under Schedule 6 to the Greater London Authority Act 1999, or set out in its substitute consolidated budget as agreed under that Schedule, as the case may be.

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52ZK Major precepting authority's duty to notify appropriate billing authorities

(1) The major precepting authority must notify each appropriate billing authority— (a) that its relevant basic amount of council tax for a financial year is excessive, and (b) that the billing authority is required to hold a referendum in accordance with this Chapter. (1A) As soon as is reasonably practicable after determining that its relevant basic amount of council tax for the financial year is excessive, the major precepting authority must also notify the matters mentioned in subsection (1) in writing to any body that— (a) has issued a levy to it for the financial year, or (b) in the case of the Greater London Authority, has issued a levy to any constituent body for the financial year. (2) A notification under subsection (1) must include a precept in accordance with the following provisions; but that precept does not have effect for the purposes of Chapters 3 and 4 above except in accordance with sections 52ZO and 52ZP below. (3) A precept issued to a billing authority under this section by a major precepting authority other than the Greater London Authority 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 by the precepting authority in accordance with sections 42A, 42B and 45 to 47 above as applied by section 52ZJ above, and (b) the amount which has been calculated by the precepting authority in accordance with section 48 above as applied by section 52ZJ above as the amount payable by the billing authority for the year. (4) Dwellings fall within different categories for the purposes of subsection (3) above according as different calculations have been made in relation to them as mentioned in paragraph (a) of that subsection. (5) A precept issued to a billing authority under this section by the Greater London Authority 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 by applying, in accordance with section 52ZJ above, the relevant London provisions and section 47 above to the Authority's substitute consolidated council tax requirement, and (b) the amount which has been calculated by the Authority in accordance with section 48 above as applied by section 52ZJ above as the amount payable by the billing authority for the year. (6) Dwellings fall within different categories for the purposes of subsection (5) above according as different calculations have been made in relation to them as mentioned in paragraph (a) of that subsection. (7) A major precepting authority must assume for the purposes of subsections (3) and (5) 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 made. (8) The Secretary of State must by regulations prescribe a date by which a notification under subsection (1) must be made. (9) This section does not require the Greater London Authority to notify a billing authority to which this subsection applies unless the Authority's unadjusted relevant basic amount of council tax for the year is excessive. (10) Subsection (9) above applies to a billing authority if the special item within the meaning of section 89(2) of the Greater London Authority Act 1999 does not apply to any part of the authority's area.

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52ZL Local precepting authority's duty to make substitute calculations

(1) The local precepting authority must make substitute calculations for the financial year in compliance with this section. (2) Substitute calculations for a financial year comply with this section if— (a) they are made in accordance with section 49A above, and (b) the relevant basic amount of council tax produced by applying section 52ZX below to the calculations is not excessive by reference to the principles determined by the Secretary of State under section 52ZC above for the year.

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52ZM Local precepting authority's duty to notify appropriate billing authority

(1) The local precepting authority must notify its appropriate billing authority— (a) that its relevant basic amount of council tax for a financial year is excessive, and (b) that the billing authority is required to hold a referendum in accordance with this Chapter. (2) A notification under this section must include a precept in accordance with subsection (3) below; but that precept does not have effect for the purposes of Chapters 3 and 4 above except in accordance with sections 52ZO and 52ZP below. (3) The precept must state, as the amount payable by the billing authority for the year, the amount which has been calculated by the local precepting authority under section 49A above as applied by section 52ZL above. (4) The Secretary of State must by regulations prescribe a date by which the notification must be made.

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52ZN Arrangements for referendum

(1) A billing authority that is notified under section 52ZK or 52ZM above must make arrangements to hold a referendum in relation to the precepting authority's relevant basic amount of council tax for the financial year in accordance with this section. (2) Where the referendum is one of two or more referendums required to be held in respect of the same calculation, it is to be held on— (a) the first Thursday in May in the financial year, or (b) such other date as the Secretary of State may specify by order. (3) Otherwise the referendum is to be held on a date decided by the billing authority; but this is subject to subsection (4) below. (4) That date must be not later than— (a) the first Thursday in May in the financial year, or (b) such other date in that year as the Secretary of State may specify by order. (5) An order under subsection (2) or (4) above must be made not later than— (a) 1 February in the financial year preceding the year mentioned in paragraph (b) of that subsection, or (b) in the case of an order affecting more than one financial year, 1 February in the financial year preceding the first of those years. (6) The persons entitled to vote in the referendum are those who, on the day of the referendum— (a) would be entitled to vote as electors at an election for members for an electoral area of the billing authority that falls wholly or partly within the precepting authority's area, and (b) are registered in the register of local government electors at an address that is within both— (i) the precepting authority's area, and (ii) the billing authority's area. (7) Subject to subsection (8) below, the billing authority may recover from the precepting authority the expenses that are incurred by the billing authority in connection with the referendum. (8) The Secretary of State may by regulations make provision for cases in which— (a) subsection (7) above does not apply, or (b) that subsection applies with modifications. (9) In this section— “electoral area” means— in relation to a district council, a London borough council or the Common Council of the City of London, a ward; in relation to a county council, an electoral division; in relation to the Council of the Isles of Scilly, a parish; “register of local government electors” means the register of local government electors kept in accordance with the provisions of the Representation of the People Acts. (10) This section is subject to regulations under section 52ZQ below.

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52ZO Effect of referendum

(1) The precepting authority must inform the Secretary of State, and any body the authority was required to notify under section 52ZK(1A), of the result of the referendum or (as the case may be) each of them. (2) Subsection (3) below applies if— (a) in a case where one referendum is held in respect of the precepting authority's relevant basic amount of council tax for the financial year, that amount is approved by a majority of persons voting in the referendum, or (b) in a case where two or more referendums are held in respect of that amount, that amount is approved by a majority of persons voting in all of those referendums taken together. (3) The precepting authority's calculations that include that amount or (as the case may be) from which that amount was derived continue to have effect for the year for the purposes of this Act. (4) Subsections (5) and (6) below apply if— (a) in a case where one referendum is held in respect of the precepting authority's relevant basic amount of council tax for a financial year, that amount is not approved by a majority of persons voting in the referendum, or (b) in a case where two or more referendums are held in respect of that amount, that amount is not approved by a majority of persons voting in all of those referendums taken together. (5) Any precept issued to a billing authority under section 52ZK or 52ZM above as part of a notification that triggered the referendum has effect as a precept issued to that billing authority for the year for the purposes of Chapter 3 above. (6) Where the precept was issued to a billing authority by a local precepting authority under section 52ZM above, section 36A above has effect in relation to the billing authority as if it required the authority to make calculations in substitution on the basis of the precept (rather than permitting it to do so). (7) In the case of a major precepting authority other than the Greater London Authority, section 30 above has effect by virtue of subsection (5) above in relation to that precept as if— (a) references to amounts calculated under Chapter 4 above were to amounts calculated as mentioned in section 52ZJ(2) above, and (b) the reference to the amount stated in accordance with section 40 above were to the amount stated in accordance with section 52ZK(3)(b) above. (8) In the case of the Greater London Authority, section 30 above has effect by virtue of subsection (5) above in relation to that precept as if— (a) references that are to be read as amounts calculated under Chapter 1 of Part 3 of the Greater London Authority Act 1999 were to amounts calculated as mentioned in section 52ZJ(3) above, and (b) the reference to the amount stated in accordance with section 40 above were to the amount stated in accordance with 52ZK(5)(b) above. (9) If the precepting authority has already issued a precept for the financial year (originally or by way of substitute) to the billing authority— (a) subsections (3) and (4) of section 42 above apply to the precept within subsection (5) above as they apply to a precept issued in substitution under that section, but (b) the references in those subsections to the amount of the new precept are to be read as references to the amount stated in the precept within subsection (5) above in accordance with section 52ZK(3)(b) or (5)(b) above.

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52ZP Failure to hold referendum

(1) This section applies if a billing authority that is required to be notified by a precepting authority under section 52ZK or 52ZM above fails to hold a referendum in accordance with this Chapter. (2) Subsections (3) to (6) below apply if the precepting authority has failed to notify the billing authority in accordance with section 52ZK or 52ZM above. (3) The precepting authority must issue a precept for the year to the billing authority in accordance with that section; and such a precept has effect for the purposes of Chapter 3 above. (4) During the period of restriction no billing authority to which the precepting authority has power to issue a precept has power to pay anything in respect of a precept issued by the precepting authority for the year. (5) In subsection (4) above “the period of restriction” means the period— (a) beginning with the date on which the referendum would have been required to be held or (as the case may be) the latest date on which it could have been held if the notification had been made, and (b) ending with the date (if any) when the precepting authority complies with subsection (3) above. (6) Where a precept under subsection (3) above is issued to a billing authority by a local precepting authority, section 36A above has effect in relation to the billing authority as if it required the authority to make calculations in substitution on the basis of the precept (rather than permitting it to do so). (7) If the precepting authority has notified the billing authority in accordance with section 52ZK or 52ZM above, the precept issued to the billing authority under section 52ZK or 52ZM above as part of the notification has effect as a precept issued to that billing authority for the year for the purposes of Chapter 3 above. (8) Where the precept was issued to a billing authority by a local precepting authority under section 52ZM above, section 36A above has effect in relation to the billing authority as if it required the authority to make calculations in substitution on the basis of the precept (rather than permitting it to do so). (9) Subsections (7) to (9) of section 52ZO above apply to a precept within subsection (3) or (7) above as they apply to a precept within subsection (5) of that section.

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52ZQ Regulations about referendums

(1) The Secretary of State ... may by regulations make provision as to the conduct of referendums under this Chapter. (2) The Secretary of State ... may by regulations make provision for— (a) the combination of polls at two or more referendums under this Chapter; (b) the combination of polls at referendums under this Chapter with polls at any elections or any referendums held otherwise than under this Chapter. (3) Regulations under this section may apply or incorporate, with or without modifications or exceptions, any provision of any enactment (whenever passed or made) relating to elections or referendums. (4) The provision which may be made under this section includes, in particular, provision— (a) as to the question to be asked in a referendum; (b) as to the publicity to be given in connection with a referendum (including the publicity to be given with respect to the consequences of the referendum and its result); (c) about the limitation of expenditure in connection with a referendum; (d) as to the conduct of the authority, members of the authority and officers of the authority in relation to a referendum (including provision modifying the effect of section 2 (prohibition of political publicity) of the Local Government Act 1986); (e) as to when, where and how voting in a referendum is to take place; (f) as to how the votes cast in a referendum are to be counted; (g) for disregarding alterations in a register of electors; (h) for the questioning of the result of a referendum by a court or tribunal. (5) But where the regulations apply or incorporate (with or without modifications) any provision that creates an offence, the regulations may not impose a penalty greater than is provided for in respect of that offence. (6) Before making any regulations under this section, the Secretary of State ... must consult the Electoral Commission. (7) No regulations under this section are to be made unless a draft of the regulations has been laid before and approved by resolution of each House of Parliament. (8) In this section “enactment” includes an enactment contained in a local Act or comprised in subordinate legislation (within the meaning of the Interpretation Act 1978).

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52ZR Direction that referendum provisions are not to apply

(1) The Secretary of State may give a direction under this section to an authority other than the Greater London Authority if it appears to the Secretary of State that, unless the authority's council tax calculations are such as to produce a relevant basic amount of council tax that is excessive by reference to the principles determined by the Secretary of State for the year— (a) the authority will be unable to discharge its functions in an effective manner, or (b) the authority will be unable to meet its financial obligations. (2) The Secretary of State may give a direction under this section to the Greater London Authority if it appears to the Secretary of State that, unless the Authority's council tax calculations are such as to produce a relevant basic amount of council tax that is excessive by reference to the principles determined by the Secretary of State for the year— (a) one or more of the Authority's constituent bodies will be unable to discharge its functions in an effective manner, or (b) one or more of those bodies will be unable to meet its financial obligations. (3) The effect of a direction under this section is that the referendum provisions do not apply for the financial year to, and no further step is to be taken for the financial year under the referendum provisions by— (a) the authority to whom it is made, and (b) where that authority is a precepting authority, a billing authority as a result of any notification under section 52ZK or 52ZM above by the precepting authority. (4) A direction under this section may be given to an authority other than the Greater London Authority— (a) whether or not the authority has carried out its council tax calculations for the financial year, and (b) in the case of a billing authority, whether or not the authority has set an amount of council tax for the financial year under section 30 above. (5) A direction under this section may be given to the Greater London Authority only if it has carried out its council tax calculations for the financial year. (6) But a direction under this section may not be given to an authority if— (a) a referendum has been held relating to the authority's relevant basic amount of council tax for the financial year, and (b) that amount has not been approved as mentioned in section 52ZH above (where the authority is a billing authority) or section 52ZO above (where the authority is a precepting authority). (7) The following sections make further provision about the effect of a direction under this section— (a) for a billing authority: section 52ZS below; (b) for a major precepting authority other than the Greater London Authority: section 52ZT below; (c) for the Greater London Authority: section 52ZU below; (d) for a local precepting authority: section 52ZV below. (8) In this Part— “constituent body” means— the Mayor of London, the London Assembly, or a functional body within the meaning of section 424 of the Greater London Authority Act 1999; “council tax calculations” means— in relation to a billing authority, calculations under sections 31A, 31B and 34 to 36 above, in relation to a major precepting authority other than the Greater London Authority, calculations under sections 42A, 42B and 45 to 48 above, in relation to the Greater London Authority, calculations under sections 85 to 90 of the Greater London Authority Act 1999 and sections 47 and 48 above, and in the case of a local precepting authority, calculations under section 49A above; “the referendum provisions” means— where the direction is given to a billing authority, sections 52ZB and 52ZF to 52ZI above, where the direction is given to a major precepting authority, sections 52ZB, 52ZJ, 52ZK and 52ZN to 52ZP above, and where the direction is given to a local precepting authority, sections 52ZB and 52ZL to 52ZP above.

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52ZS Directions to billing authorities

(1) This section applies if the Secretary of State gives a direction under section 52ZR above to a billing authority. (2) The direction must state the amount that is to be the amount of the billing authority's council tax requirement for the financial year. (3) If the direction is given before the billing authority has carried out its council tax calculations for the financial year, that amount is to be treated for all purposes as the amount calculated by the billing authority under section 31A above. (4) If the direction is given after the billing authority has carried out its council tax calculations for the financial year (whether or not it has set an amount of council tax for the year)— (a) those calculations are of no effect, and (b) the authority must make substitute calculations for the year in accordance with section 36A above. (5) For the purposes of those and any subsequent substitute calculations and the application of Chapter 3 above to them— (a) the amount stated in the direction as the amount of the billing authority's council tax requirement for the financial year is to be treated as the amount calculated by the billing authority under section 31A above, and (b) subsections (2)(a) and (4) of section 36A above are to be ignored.

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52ZT Directions to major precepting authorities

(1) This section applies if the Secretary of State gives a direction under section 52ZR above to a major precepting authority other than the Greater London Authority. (2) The direction must state the amount that is to be the amount of the major precepting authority's council tax requirement for the financial year. (3) If the direction is given before the major precepting authority has carried out its council tax calculations for the financial year, that amount is to be treated for all purposes as the amount calculated by the major precepting authority under section 42A above. (4) If the direction is given after the major precepting authority has carried out its council tax calculations for the financial year (whether or not it has issued a precept for the year)— (a) those calculations are of no effect, and (b) the authority must make substitute calculations for the year in accordance with section 49 above. (5) For the purposes of those and any subsequent substitute calculations and the application of Chapters 3 and 4 above to them— (a) the amount stated in the direction as the amount of the major precepting authority's council tax requirement for the financial year is to be treated as the amount calculated by the billing authority under section 42A above, and (b) subsection (2)(za) of section 49 above is to be ignored.

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52ZU Directions to the Greater London Authority

(1) This section applies if the Secretary of State gives a direction under section 52ZR above to the Greater London Authority. (2) The direction must specify the amount that is to be the component council tax requirement for the relevant constituent body for the year. (3) The Greater London Authority must make calculations in substitution in relation to the financial year under subsections (4) to (7) of section 85 of the Greater London Authority Act 1999 in relation to— (a) the relevant constituent body alone, or (b) the relevant constituent body and one or more other constituent bodies. (4) Subsection (5) below applies if the result of the substitute calculations is such that— (a) there is an increase in the Greater London Authority's consolidated council tax requirement for the year, or (b) there is no such increase, but the results of the calculations in substitution made in accordance with sections 85, 86 and 88 to 90 of and Schedule 7 to the Greater London Authority Act 1999 and sections 47 and 48 above would be different from the last relevant calculations in relation to the year. (5) The Greater London Authority must make calculations in substitution in accordance with the provisions mentioned in subsection (4)(b) above. (6) In subsection (4)(b) above “the last relevant calculations” means the last calculations made by the Greater London Authority in relation to the financial year in accordance with— (a) sections 85 to 90 of the Greater London Authority Act 1999 and sections 47 and 48 above, or (b) sections 85, 86 and 88 to 90 of and Schedule 7 to that Act and sections 47 and 48 above. (7) None of the substitute calculations is to have any effect if— (a) the amount calculated under section 85(6) or (7) of the Greater London Authority Act 1999 for the relevant constituent body is not in compliance with the direction, (b) there is an increase in the Greater London Authority's consolidated council tax requirement for the financial year (as last calculated) which exceeds the increase required to be made to the component council tax requirement for the relevant constituent body (as last calculated for the year) to comply with the direction, or (c) in making the calculations under section 88(2) or 89(3) of that Act, the Authority fails to comply with subsection (8) below. (8) In making substitute calculations under section 88(2) or 89(3) of the Greater London Authority Act 1999 the Greater London Authority must use any amount determined in the previous calculations for item T in section 88(2) of that Act or for item TP2 in section 89(4) of that Act. (9) Subsections (7)(c) and (8) above do 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. (10) For the purposes of subsection (9) 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. (11) Any substitute calculations under this section are to be made in accordance with Schedule 7 to the Greater London Authority Act 1999. (12) In this Part— “component council tax requirement” has the meaning given by section 85(6) of the Greater London Authority Act 1999; “consolidated council tax requirement” has the meaning given by section 85(8) of the Greater London Authority Act 1999; “the relevant constituent body”, in relation to a direction under section 52ZR above, means the constituent body by reference to which the direction was given (or, if there is more than one such body, each of them).

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52ZV Directions to local precepting authorities

(1) This section applies if the Secretary of State gives a direction under section 52ZR above to a local precepting authority. (2) The direction must state the amount that is to be the amount of the local precepting authority's council tax requirement for the financial year. (3) That amount is to be treated for all purposes as the amount calculated by the local precepting authority under section 49A above. (4) If the direction is given after the local precepting authority has issued a precept for the financial year, that amount is to be treated for all purposes as an amount calculated by the authority in substitution in relation to the year in accordance with that section (so that, in particular, section 42 above applies accordingly).

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52ZW Further provisions about directions

(1) An authority that is required to make substitute calculations for a financial year by virtue of any of sections 52ZS to 52ZU above— (a) must make the calculations, and (b) in the case of a major precepting authority, must issue any precepts in substitution required in consequence under section 42 above, before the end of the period mentioned in subsection (3) below. (2) A local precepting authority to which section 52ZV(4) above applies must issue any precepts in substitution required in consequence under section 42 above before the end of the period mentioned in subsection (3) below. (3) That period is— (a) the period of 35 days beginning with the day on which the authority receives the direction (where it is the Greater London Authority), or (b) the period of 21 days beginning with the day on which the authority receives the direction (in any other case). (4) In the case of a billing authority, the authority has no power during the period of restriction to transfer any amount from its collection fund to its general fund; and sections 97 and 98 of the 1988 Act have effect accordingly. (5) In the case of a precepting authority, no authority to which it has power to issue a precept has power during the period of restriction to pay anything in respect of a precept issued by the precepting authority for the financial year. (6) For the purposes of subsections (4) and (5) above “the period of restriction” is the period— (a) beginning at the end of the period mentioned in subsection (3) above, and (b) ending at the time (if any) when the authority complies with subsection (1) or (2) above (as the case may be). (7) The following provisions of this section apply to substitute calculations by the Greater London Authority other than those made pursuant to section 52ZU above. (8) Subject to variation or revocation, a direction under section 52ZR above has effect in relation to any substitute calculations made under any enactment by the Greater London Authority— (a) in accordance with sections 85, 86 and 88 to 90 of and Schedule 7 to the Greater London Authority Act 1999 and sections 47 and 48 above, (b) in relation to the financial year to which the direction relates, and (c) at any time after the direction is given. (9) Where a direction under section 52ZR above has effect in relation to any substitute calculations by virtue of subsection (8) above, none of the calculations have effect if the amount calculated under section 85(6) of the Greater London Authority Act 1999 for the relevant constituent body is not in compliance with the direction.

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52ZX Meaning of relevant basic amount of council tax

(1) Any reference in this Chapter to a billing authority's relevant basic amount of council tax for a financial year is a reference to the amount that would be calculated by it in relation to the year under section 31B(1) above if section 31A above did not require or permit it to take into account the amount of any precepts— (a) issued to it for the year by local precepting authorities, or (b) anticipated by it in pursuance of regulations under section 41 above. (2) In the case of a major precepting authority other than ... the Greater London Authority, any reference in this Chapter to the authority's relevant basic amount of council tax for a financial year is a reference to the amount calculated by it in relation to the year under section 42B(1) above. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In the case of a major precepting authority that is the Greater London Authority, any reference in this Chapter to the authority's relevant basic amount of council tax for a financial year is a reference to— (a) the amount calculated by it in relation to the year under section 88(2) of the Greater London Authority Act 1999 (referred to in this Chapter as the Greater London Authority's unadjusted relevant basic amount of council tax for the year), or (b) any amount calculated by it in relation to the year under section 89(3) of that Act (referred to in this Chapter as the Greater London Authority's adjusted relevant basic amount of council tax for the year). (5) Any reference in this Chapter to a local precepting authority's relevant basic amount of council tax for a financial year is a reference to the amount found by applying the formula— R T where— R is the amount calculated by the authority under section 49A(4) above as its council tax requirement for the year; T is the amount which is calculated by the billing authority to which the authority issues precepts (“the billing authority concerned”) as its council tax base for the year for the part of its area comprising the authority's area and is notified by it to the authority within the prescribed period. (6) Where the aggregate calculated by the authority for the year under subsection (2) of section 49A above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (5) above is to be nil. (7) The Secretary of State must make regulations containing rules for making for any year the calculation required by item T in subsection (5) above; and the billing authority 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. (8) Regulations prescribing a period for the purposes of item T in subsection (5) 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. (9) In the application of this section any calculation for which another has been substituted is to be disregarded.

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52ZY Information for purposes of Chapter 4ZA

(1) The Secretary of State may serve on an authority a notice requiring it to supply to the Secretary of State such information as is specified in the notice and required for the purposes of the performance of the Secretary of State's functions under this Chapter. (2) The authority must supply the information required if it is in its possession or control, and must do so in such form and manner and at such time as the Secretary of State specifies in the notice. (3) If an authority fails to comply with subsection (2) above, the Secretary of State may exercise the Secretary of State's functions on the basis of such assumptions and estimates as the Secretary of State thinks fit. (4) In exercising those functions, the Secretary of State may also take into account any other available information, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act.

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52A Interpretation.

(1) In this Chapter a reference to an authority is to— (a) a billing authority in Wales, or (b) a major precepting authority in Wales. (2) Sections 52W and 52X below contain other interpretative provisions for the purposes of this Chapter.

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52B Power to designate or nominate authorities.

(1) If in the Welsh Ministers' opinion the amount calculated by an authority as its budget requirement for a financial year (the year under consideration) is excessive, they may exercise their power to designate or nominate the authority under section 52D below. (2) The question whether the amount so calculated is excessive must be decided in accordance with a set of principles determined by the Welsh Ministers. (3) A set of principles— (a) may contain one principle or two or more principles; (b) must constitute or include a comparison falling within subsection (4) below or comparisons each of which falls within subsection (4). (4) A comparison falls within this subsection if— (a) it is between the amount calculated by the authority as its budget requirement for the year under consideration and the amount calculated by it as its budget requirement for a financial year falling before the year under consideration; (b) the earlier financial year in the comparison does not fall before that beginning with 1st April 1998. (5) If for the purposes of this section the Welsh Ministers determine categories of authorities for the year under consideration— (a) any principles determined for the year must be such that the same set is determined for all authorities (if more than one) falling within the same category; (b) as regards an authority which does not fall within any of the categories, the Welsh Ministers may not exercise their power to designate or nominate the authority under section 52D below by reference to the excessiveness of its budget requirement for the year. (6) If they do not determine such categories, any principles determined for the year under consideration must be such that the same set is determined for all authorities. (7) In determining categories of authorities for the year under consideration the Welsh Ministers shall take into account any information they think is relevant. (8) In applying this section the Welsh Ministers shall ignore any calculation for which another has been substituted at the time designation or nomination is proposed.

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52C Alternative notional amounts.

(1) The Welsh Ministers may make a report specifying in relation to— (a) any year under consideration (within the meaning of section 52B above), and (b) any authority, an amount which in their opinion should be used as the basis of any comparison in applying that section in place of the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration. (2) References in this section to the alternative notional amount are to the amount so specified. (3) A report under this section— (a) may relate to two or more authorities; (b) may be amended by a subsequent report under this section; (c) shall contain such explanation as the Welsh Ministers think desirable of the calculation by them of the alternative notional amount; (d) shall be laid before the National Assembly for Wales. (4) If a report under this section is approved by resolution of the National Assembly for Wales section 52B above shall have effect, as regards the year under consideration and any authority to which the report relates, as if the reference in subsection (4) to the amount calculated by the authority as its budget requirement for a financial year falling before the year under consideration were to the alternative notional amount for the year so falling.

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52D Designation or nomination.

(1) This section applies if in the Welsh Ministers' opinion (reached after applying section 52B above) the amount calculated by an authority as its budget requirement for the year under consideration is excessive. (2) In such a case they may— (a) designate the authority as regards the year under consideration, or (b) nominate the authority. (3) The Welsh Ministers may proceed under different paragraphs of subsection (2) above in relation to different authorities.

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52E Designation.

(1) This section applies if the Welsh Ministers designate an authority under section 52D(2)(a) above as regards the year under consideration. (2) They shall notify the authority in writing of— (a) the designation; (b) the set of principles determined for the authority under section 52B above; (c) the category in which the authority falls (if they determine categories under section 52B above); (d) the amount which they propose should be the maximum for the amount calculated by the authority as its budget requirement for the year; (e) the target amount for the year, that is, the maximum amount which they propose the authority could calculate as its budget requirement for the year without the amount calculated being excessive; (f) the financial year as regards which they expect the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year). (3) A designation under section 52D(2)(a) above— (a) is invalid unless subsection (2) above is complied with; (b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection. (4) If— (a) an authority has been designated under section 52D(2)(a) above, and (b) after the designation is made the authority makes substitute calculations in relation to the year, the substitute calculations shall be invalid unless they are made in accordance with section 52I or 52J below (as the case may be). (5) Before the end of the period of 21 days beginning with the day it receives a notification under this section, an authority may inform the Welsh Ministers by notice in writing that— (a) for reasons stated in the notice, it believes the maximum amount stated under subsection (2)(d) above should be such as the authority states in its notice, or (b) it accepts the maximum amount stated under subsection (2)(d) above.

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52F Challenge of maximum amount.

(1) This section applies if an authority designated under section 52D(2)(a) above informs the Welsh Ministers by notice in writing under section 52E(5)(a) above. (2) After considering any information falling within subsection (3) below the Welsh Ministers shall either— (a) proceed under subsection (4) below (in which case subsections (5) to (10) below shall also apply), or (b) proceed under subsection (11) below. (3) Information falling within this subsection is— (a) information which is supplied by the authority and is of a kind and provided in a form specified by the Welsh Ministers for the purposes of this section; (b) any other information they think is relevant. (4) If they proceed under this subsection the Welsh Ministers — (a) shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; (b) may alter the target amount for the year. (5) The following paragraphs apply for the purposes of subsection (4) above— (a) the amount stated under subsection (4)(a) above may not exceed the amount already calculated by the authority as its budget requirement for the year unless in the Welsh Ministers' opinion the authority failed to comply with section 32 or 43 above (as the case may be) in making the calculation; (b) subject to paragraph (a) above, the amount stated under subsection (4)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52E(2)(d) above; (c) the Welsh Ministers may alter the target amount for the year under subsection (4)(b) above only if the amount stated under subsection (4)(a) above is greater or smaller than that stated in the notice under section 52E(2)(d) above. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) An order under this section— (a) shall not be made unless a draft of it has been laid before and approved by resolution of the National Assembly for Wales; (b) may relate to two or more authorities. (8) As soon as is reasonably practicable after an order under this section is made the Welsh Ministers shall serve on the authority (or each authority) a notice stating— (a) the amount stated in the case of the authority concerned in the order; (b) the altered target amount for the year (if they alter it in the case of the authority concerned). (9) When they serve a notice under subsection (8) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept. (10) In applying subsection (5)(a) above the Welsh Ministers shall ignore any calculation for which another has been substituted at the time of designation. (11) If the Welsh Ministers proceed under this subsection they shall— (a) cancel the designation of the authority under section 52D(2)(a) above as regards the year and notify the authority in writing of the cancellation, and (b) nominate the authority under section 52D(2)(b) above; and in such a case the designation under section 52D(2)(a) above and the notification under section 52E above shall be treated as not having been made.

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52G Acceptance of maximum amount.

(1) This section applies if an authority designated under section 52D(2)(a) above informs the Welsh Ministers by notice in writing under section 52E(5)(b) above. (2) As soon as is reasonably practicable after they receive the notice the Welsh Ministers shall serve on the authority a notice stating the amount which the amount calculated by it as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52E(2)(d) above. (3) When they serve a notice under subsection (2) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

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52H No challenge or acceptance.

(1) This section applies if the period mentioned in section 52E(5) above ends without an authority designated under section 52D(2)(a) above informing the Welsh Ministers by notice in writing under paragraph (a) or (b) of section 52E(5). (2) As soon as is reasonably practicable after the period ends the Welsh Ministers shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52E(2)(d) above. (3) An order under this section— (a) shall not be made unless a draft of it has been laid before and approved by resolution of the National Assembly for Wales; (b) may relate to two or more authorities. (4) As soon as is reasonably practicable after an order under this section is made the Welsh Ministers shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority concerned in the order. (5) When they serve a notice under subsection (4) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

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52I Duty of designated billing authority.

(1) If a billing authority receives a notice under section 52F(8), 52G(2) or 52H(4) above it shall make substitute calculations in relation to the year in accordance with sections 32 to 36 above, ignoring section 32(10) above for this purpose. (2) The substitute calculations shall be made so as to secure— (a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and (b) that any amount calculated under section 33(1) or 34(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations. (3) Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year. (4) In making substitute calculations under section 33(1) or 34(3) above the authority must use any amount determined in the previous calculations for item P or T in section 33(1) or item TP in section 34(3). (5) For the purposes of subsection (4) above the authority may treat any amount determined in the previous calculations for item P in section 33(1) above as increased by the amount of any sum which— (a) it estimates will be payable for the year into its council fund in respect of additional grant, and (b) was not taken into account by it in making those calculations. (6) References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).

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52J Duty of designated precepting authority.

(1) If a major precepting authority receives a notice under section 52F(8), 52G(2) or 52H(4) above it shall make substitute calculations in relation to the year in accordance with— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) sections 43 to 48 above .... (2) The substitute calculations shall be made so as to secure— (a) that the amount calculated by the authority as its budget requirement for the year does not exceed that stated in the notice, and (b) that any amount calculated under section 44(1) or 45(2) or (3) above as the basic amount of council tax applicable to any dwelling does not exceed that so calculated in the previous calculations. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Subsection (2)(b) above does not apply in a case where the amount stated in the notice exceeds that already calculated by the authority as its budget requirement for the year. (5) In making substitute calculations under section 44(1) or 45(3) above the authority 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. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) For the purposes of subsection (5) 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. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) References in this section to the amount stated in the notice are, in the case of a notice under section 52F(8) above, to the amount stated under section 52F(8)(a).

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52K Failure to substitute.

(1) This section applies if an authority which has received a notice under section 52F(8), 52G(2) or 52H(4) above fails to comply with section 52I or 52J above (as the case may be) before the end of— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) the period of 21 days beginning with the day on which the authority receives the notice .... (2) In the case of a billing authority, the Welsh Ministers may direct the authority to comply with section 52I. (2A) A direction under this section is enforceable, on the application of the Welsh Ministers, by a mandatory order. (3) In the case of a major precepting authority, any authority to which it has power to issue a precept shall have no power during the period of restriction to pay anything in respect of a precept issued by it for the year. (4) For the purposes of this section 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 ... 52J above.

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52L Nomination.

(1) This section applies if the Welsh Ministers nominate an authority under section 52D(2)(b) above. (2) They shall notify the authority in writing of— (a) the nomination; (b) the set of principles determined for the authority under section 52B above; (c) the category in which the authority falls (if they determine categories under section 52B above); (d) the amount which they would have proposed as the target amount for the year under consideration if they had designated the authority as regards that year under section 52D(2)(a) above. (3) A nomination under section 52D(2)(b) above — (a) is invalid unless subsection (2) above is complied with; (b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection. (4) After nominating all the authorities they intend to nominate the Welsh Ministers — (a) shall decide, in the case of each authority nominated, whether to proceed under section 52M or under section 52N below in relation to it; (b) may decide to proceed under different sections in relation to different authorities.

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52M Designation after nomination.

(1) This section applies if the Welsh Ministers — (a) nominate an authority under section 52D(2)(b) above, and (b) decide to proceed under this section in relation to the authority. (2) They shall— (a) designate the authority as regards the financial year immediately following the year under consideration; (b) determine an amount which they propose should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made; (c) determine the target amount for the year as regards which the designation is made, that is, the maximum amount which they propose the authority could calculate as its budget requirement for the year without the amount calculated being excessive. (3) In making the determinations under subsection (2) above they shall take into account— (a) the amount which they would have proposed as the target amount for the year under consideration if they had designated the authority as regards that year under section 52D(2)(a) above, and (b) any information they think is relevant. (4) They shall notify the authority in writing of— (a) the designation; (b) the amount determined under subsection (2)(b) above; (c) the target amount determined under subsection (2)(c) above; (d) any information taken into account under subsection (3)(b) above; (e) the financial year as regards which they expect the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year); (f) the period within which the authority may inform the Welsh Ministers that it challenges or accepts the amount stated under paragraph (b) above. (5) A designation under this section— (a) is invalid unless subsection (4) above is complied with; (b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection. (6) If an authority has been designated under this section as regards a financial year the Welsh Ministers may not designate it under section 52D(2)(a) above as regards that year. (7) If— (a) an authority has been designated under this section as regards a financial year, and (b) after the designation is made the authority makes calculations or substitute calculations in relation to the year, the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be). (8) Before the end of the period notified under subsection (4)(f) above an authority may inform the Welsh Ministers by notice in writing that— (a) for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or (b) it accepts the maximum amount stated under subsection (4)(b) above. (9) The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above.

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52N No designation after nomination.

(1) This section applies if the Welsh Ministers — (a) nominate an authority under section 52D(2)(b) above, and (b) decide to proceed under this section in relation to the authority. (2) They shall determine an amount which they propose should be the notional amount calculated by the authority as its budget requirement for the year under consideration. (3) In making the determination they shall take into account— (a) the amount which they would have proposed as the maximum for the amount calculated by the authority as its budget requirement for the year under consideration if they had designated it as regards that year under section 52D(2)(a) above, and (b) any information they think is relevant. (4) They shall notify the authority in writing of— (a) the amount determined under subsection (2) above; (b) the amount mentioned in subsection (3)(a) above; (c) any information taken into account under subsection (3)(b) above. (5) Before the end of the period of 21 days beginning with the day it receives a notification under subsection (4) above an authority may inform the Welsh Ministers by notice in writing that, for reasons stated in the notice, it believes the notional amount stated under subsection (4)(a) above should be such as the authority states in its notice. (6) After the end of the period mentioned in subsection (5) above the Welsh Ministers — (a) shall, if they receive a notice under subsection (5) above, reconsider their determination under subsection (2) above (taking the notice into account); (b) shall notify the authority in writing of the amount which is to be the notional amount calculated by the authority as its budget requirement for the year under consideration. (7) A notification under subsection (6) above shall be treated as made at the beginning of the day on which the authority receives it. (8) In applying this Chapter at any time after a notification is made under subsection (6) above of the amount which is to be the notional amount calculated by the authority as its budget requirement for a financial year, the amount calculated by the authority as its budget requirement for that year shall be taken to be the notional amount notified.

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52P Designation after previous designation.

(1) This section applies if— (a) the Welsh Ministers designate an authority as regards a year under section 52D(2)(a) above or section 52M above or this section, and (b) the amount calculated by the authority as its budget requirement for the year exceeds the target amount for the year. (2) They may designate the authority as regards the financial year immediately following the year mentioned in subsection (1) above, and if they do so they shall— (a) determine an amount which they propose should be the maximum for the amount calculated by the authority as its budget requirement for the year as regards which the designation is made; (b) determine the target amount for the year as regards which the designation is made, that is, the maximum amount which they propose the authority could calculate as its budget requirement for the year without the amount calculated being excessive. (3) In making the determinations under subsection (2) above they shall take into account— (a) the amount calculated by the authority as its budget requirement for the year mentioned in subsection (1) above, (b) the target amount for that year, and (c) any information they think is relevant. (4) They shall notify the authority in writing of— (a) the designation; (b) the amount determined under subsection (2)(a) above; (c) the target amount determined under subsection (2)(b) above; (d) any information taken into account under subsection (3)(c) above; (e) the financial year as regards which they expect the amount calculated by the authority as its budget requirement for that year to be equal to or less than the target amount for that year (assuming one to be determined for that year); (f) the period within which the authority may inform the Welsh Ministers that it challenges or accepts the amount stated under paragraph (b) above. (5) A designation under this section— (a) is invalid unless subsection (4) above is complied with; (b) shall be treated as made at the beginning of the day on which the authority receives a notification under that subsection. (6) If an authority has been designated under this section as regards a financial year the Welsh Ministers may not designate it under section 52D(2)(a) above as regards that year. (7) If— (a) an authority has been designated under this section as regards a financial year, and (b) after the designation is made the authority makes calculations or substitute calculations in relation to the year, the calculations (or substitute calculations) shall be invalid unless they are made in accordance with section 52T or 52U below (as the case may be). (8) Before the end of the period notified under subsection (4)(f) above an authority may inform the Welsh Ministers by notice in writing that— (a) for reasons stated in the notice, it believes the maximum amount stated under subsection (4)(b) above should be such as the authority states in its notice, or (b) it accepts the maximum amount stated under subsection (4)(b) above. (9) The period notified under subsection (4)(f) above must be a period of at least 21 days beginning with the day the authority receives the notification under subsection (4) above. (10) In applying subsections (1)(b) and (3)(a) above the Welsh Ministers shall ignore any calculation for which another has been substituted at the time designation is proposed. (11) References in this section to the target amount for the year mentioned in subsection (1) above are to the amount stated (or last stated) as the target amount for the year under section 52E or 52F, or under section 52M or 52Q, or under this section or section 52Q, as the case may be.

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52Q Challenge of maximum amount.

(1) This section applies if— (a) an authority designated under section 52M above informs the Welsh Ministers by notice in writing under subsection (8)(a) of that section, or (b) an authority designated under section 52P above informs the Welsh Ministers by notice in writing under subsection (8)(a) of that section. (2) After considering any information falling within subsection (3) below the Welsh Ministers — (a) shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; (b) may alter the target amount for the year. (3) Information falling within this subsection is— (a) information which is supplied by the authority and is of a kind and provided in a form specified by the Welsh Ministers for the purposes of this section; (b) any other information they think is relevant. (4) The following paragraphs apply for the purposes of subsection (2) above— (a) if the authority has already calculated an amount as its budget requirement for the year, the amount stated under subsection (2)(a) above may not exceed the amount already calculated unless in the Welsh Ministers' opinion the authority failed to comply with section 32 or 43 above (as the case may be) in making the calculation; (b) subject to paragraph (a) above, the amount stated under subsection (2)(a) above may be the same as, or greater or smaller than, that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be); (c) the Welsh Ministers may alter the target amount for the year under subsection (2)(b) above only if the amount stated under subsection (2)(a) above is greater or smaller than that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be). (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) An order under this section— (a) shall not be made unless a draft of it has been laid before and approved by resolution of the National Assembly for Wales; (b) may relate to two or more authorities. (7) As soon as is reasonably practicable after an order under this section is made the Welsh Ministers shall serve on the authority (or each authority) a notice stating— (a) the amount stated in the case of the authority concerned in the order; (b) the altered target amount for the year (if they alter it in the case of the authority concerned). (8) When they serve a notice under subsection (7) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept. (9) In applying subsection (4)(a) above the Welsh Ministers shall ignore any calculation for which another has been substituted at the time of designation.

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52R Acceptance of maximum amount.

(1) This section applies if— (a) an authority designated under section 52M above informs the Welsh Ministers by notice in writing under subsection (8)(b) of that section, or (b) an authority designated under section 52P above informs the Welsh Ministers by notice in writing under subsection (8)(b) of that section. (2) As soon as is reasonably practicable after they receive the notice the Welsh Ministers shall serve on the authority a notice stating the amount which the amount calculated by it as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be). (3) When they serve a notice under subsection (2) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

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52S No challenge or acceptance.

(1) This section applies if— (a) the period mentioned in section 52M(8) above ends without an authority designated under section 52M above informing the Welsh Ministers by notice in writing under paragraph (a) or (b) of section 52M(8), or (b) the period mentioned in section 52P(8) above ends without an authority designated under section 52P above informing the Welsh Ministers by notice in writing under paragraph (a) or (b) of section 52P(8). (2) As soon as is reasonably practicable after the period ends the Welsh Ministers shall make an order stating the amount which the amount calculated by the authority as its budget requirement for the year is not to exceed; and the amount stated shall be that stated in the notice under section 52M(4)(b) or 52P(4)(b) above (as the case may be). (3) An order under this section— (a) shall not be made unless a draft of it has been laid before and approved by resolution of the National Assembly for Wales ; (b) may relate to two or more authorities. (4) As soon as is reasonably practicable after an order under this section is made the Welsh Ministers shall serve on the authority (or each authority) a notice stating the amount stated in the case of the authority concerned in the order. (5) When they serve a notice under subsection (4) above on a precepting authority the Welsh Ministers shall also serve a copy of it on each billing authority to which the precepting authority has power to issue a precept.

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Local Government Finance Act 1992