Local Government Finance Act 1988

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82 Calculation of sums payable.

(A1) This section applies if— (a) in accordance with sections 78 and 78A above a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the House of Commons, (b) the determination provides for grant to be paid to receiving authorities, and (c) the report is approved by resolution of the House of Commons. (1) As soon as is reasonably practicable after the report has been approved, the Secretary of State shall calculate what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution specified in the report as so approved. (2) Subject to subsection (3) below, after making a calculation under subsection (1) above the Secretary of State may, at any time before the end of the financial year following the financial year concerned, make one further calculation of what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution so specified. (3) The power to make a calculation under subsection (2) above shall not be exercisable after the approval by resolution of the House of Commons of any amending report made under section 84A below in relation to the local government finance report. (4) If the Secretary of State decides that he will leave out of account information received by him after a particular date in making a calculation under subsection (1) or (2) above the calculation shall be made accordingly, and he may decide different dates for different kinds of information. (5) Subsection (4) above applies only if the Secretary of State informs each receiving authority in writing of his decision and of the date (or the dates and kinds of information) concerned; but he may do this at any time before the calculation is made under this section (whether before or after a determination is made for the year under section 78 above). (6) As soon as is reasonably practicable after making a calculation under subsection (1) or (2) above the Secretary of State shall, subject to subsection (7) below, inform each receiving authority of the sum he calculates falls to be paid to it by way of revenue support grant for the year. (7) If the Secretary of State calculates in the case of a particular receiving authority that no sum falls to be paid to it as mentioned in subsection (6) above, he shall inform the receiving authority of that fact.

83 Payment of sums.

(1) Where a calculation is made under section 82(1) above the Secretary of State shall pay to each receiving authority any sum calculated as falling to be paid to it. (2) The sum shall be paid in instalments of such amounts, and at such times in the financial year concerned, as the Secretary of State determines with the Treasury’s consent. (3) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority exceeds that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, the Secretary of State shall pay to the authority a sum equal to the difference. (4) The sum shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the financial year concerned. (5) Where a calculation is made under section 82(2) above and the sum it shows as falling to be paid to a receiving authority is less than that shown as falling to be paid to it by the calculation for the financial year concerned under section 82(1) above, a sum equal to the difference shall be paid by the authority to the Secretary of State on such day after the end of the financial year concerned as he may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction.

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84A Amending reports.

(1) Subject to subsection (6) below, after a local government finance report that contains a determination under section 78 above has been made the Secretary of State may, at any time before the end of the financial year following the financial year concerned, make in relation to the report one or more amending reports under this section. (2) An amending report under this section shall contain amendments to the basis of distribution specified in the local government finance report. (3) Before making the report the Secretary of State shall notify to such representatives of local government as appear to him to be appropriate the general nature of the amendments which he proposes to make. (4) The report shall be laid before the House of Commons. (5) As soon as is reasonably practicable after the report is laid before the House of Commons, the Secretary of State shall send a copy of it to each receiving authority. (6) Where an amending report under this section has been approved by resolution of the House of Commons, the Secretary of State may not make a subsequent amending report under this section in relation to the same local government finance report.

84B Calculation of sums payable under amending reports.

(1) As soon as is reasonably practicable after an amending report made under section 84A above has been approved by resolution of the House of Commons, the Secretary of State shall calculate what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the financial year concerned in accordance with the basis of distribution specified in the local government finance report as amended by the amending report. (2) Subject to subsection (3) below, after making a calculation under subsection (1) above the Secretary of State may make one further calculation of what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with that basis of distribution. (3) A calculation may not be made under subsection (2) above after whichever is the later of— (a) the end of the financial year following the financial year concerned, and (b) the end of the period of 3 months beginning with the day on which the amending report is approved by resolution of the House of Commons. (4) Subsections (4) to (7) of section 82 above apply in relation to calculations made under subsections (1) and (2) above as they apply in relation to calculations made under subsections (1) and (2) of that section.

84C Payment of sums under amending reports.

(1) This section applies where a calculation (the relevant calculation) is made under section 84B(1) or (2) above in relation to an amending report. (2) Where the sum shown by the relevant calculation as falling to be paid to a receiving authority for the financial year concerned exceeds that shown as falling to be paid to it by the relevant previous calculation, the Secretary of State shall pay to the authority a sum equal to the difference. (3) The sum shall be paid at such times, or in instalments of such amounts and at such times, as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the financial year in which the amending report was made. (4) Where the sum shown by the relevant calculation as falling to be paid to a receiving authority for the financial year concerned is less than that shown as falling to be paid to it by the relevant previous calculation, a sum equal to the difference shall be paid by the authority to the Secretary of State. (5) The sum shall be paid on such day after the end of the financial year in which the amending report was made as the Secretary of State may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction. (6) In this section “the relevant previous calculation” means— (a) in relation to a calculation made under section 84B(1) above, the calculation under section 82(1) above or, where a further calculation has been made under section 82(2) above, that further calculation; (b) in relation to a calculation made under section 84B(2) above, the calculation made under section 84B(1) above.

84D Application of Chapter 3

This Chapter applies only in relation to Wales.

84E Revenue support grant: Wales

(1) The Welsh Ministers shall pay a grant for each financial year to— (a) receiving authorities, and (b) specified bodies. (2) Grant under this section shall be known as revenue support grant. (3) Revenue support grant shall be payable in accordance with this Chapter.

84F Determination of grant

(1) The Welsh Ministers shall for each financial year make— (a) a determination under subsection (2), or (b) a determination under each of subsections (3) and (4). (2) A determination under this subsection shall state— (a) the total amount of revenue support grant for the year, (b) the amount of the grant the Welsh Ministers propose to pay to receiving authorities, and (c) the amount of the grant the Welsh Ministers propose to pay to each specified body. (3) A determination under this subsection shall state— (a) the total amount of revenue support grant for the year for— (i) receiving authorities other than police and crime commissioners, and (ii) specified bodies, (b) the amount of the grant the Welsh Ministers propose to pay to receiving authorities that are not police and crime commissioners, and (c) the amount of the grant the Welsh Ministers propose to pay to each specified body. (4) A determination under this subsection shall state the total amount of revenue support grant for the year for police and crime commissioners. (5) Before making a determination under this section, the Welsh Ministers shall consult such representatives of local government as appear to the Welsh Ministers to be appropriate. (6) Different amounts may be stated under subsection (2)(c) or (3)(c) in relation to different specified bodies. (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

84G Local government finance reports

(1) The Welsh Ministers shall specify a determination under section 84F in a report, to be called a local government finance report. (2) A local government finance report shall also specify the basis on which the Welsh Ministers propose to distribute among the receiving authorities to which the report relates the amount stated under section 84F(2)(b) or, as the case may be, section 84F(3)(b) or (4). (3) Before making a report under this section, the Welsh Ministers shall notify the general nature of the basis of distribution proposed to be specified in the report to such representatives of local government as appear to them to be appropriate. (4) A report made under this section shall be laid before the Assembly. (5) As soon as is reasonably practicable after a report is laid before the Assembly under subsection (4), the Welsh Ministers shall send a copy of the report to each of the receiving authorities to which the report relates.

84H Effect of report’s approval

(1) This section applies where in accordance with sections 84F and 84G a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the Assembly. (2) If the report is approved by resolution of the Assembly the Welsh Ministers shall pay the amount stated in the determination as the amount of revenue support grant for the year. (3) The amount of revenue support grant to be paid to receiving authorities in accordance with subsection (2) shall be distributed among, and paid to, them in accordance with sections 84J and 84K. (4) The amount of revenue support grant to be paid to a specified body in accordance with subsection (2) shall be paid at such time, or in instalments of such amounts and at such times, as the Welsh Ministers may determine. (5) The time of payment under subsection (4) may be during or after the financial year for which the grant is payable.

84J calculation of grant payable to receiving authorities

(1) As soon as is reasonably practicable after a local government finance report for a financial year has been approved by resolution of the Assembly, the Welsh Ministers shall calculate what sum, if any, falls to be paid to each receiving authority by way of revenue support grant for the year in accordance with the basis of distribution specified in the report as so approved. (2) The Welsh Ministers may carry out the subsection (1) calculation again at any time before the end of the financial year immediately following the one to which the report relates. (3) The power under sub-section (2) may only be exercised once and shall not be exercisable after the approval by resolution of the Assembly of any amending report made under section 84L in relation to the local government finance report. (4) As soon as is reasonably practicable after making a calculation under subsection (1) or by virtue of subsection (2), the Welsh Ministers shall inform each receiving authority to which the report relates of the outcome, so far as relating to it.

84K Payment of grant to receiving authorities

(1) The Welsh Ministers shall pay any sum calculated under section 84J(1) as falling to be paid by way of revenue support grant to a receiving authority in instalments of such amounts, and at such times in the financial year for which the grant is payable, as the Welsh Ministers may determine. (2) Where the Welsh Ministers make a calculation by virtue of section 84J(2) that shows an increase in the sum that falls to be paid to a receiving authority, the Welsh Ministers shall pay the authority a sum equal to the difference. (3) Payment under subsection (2) shall be at such time, or in instalments of such amounts and at such times, as the Welsh Ministers may determine, subject to subsection (4). (4) The time for payment under subsection (2) must be after the end of the financial year for which the grant is payable. (5) Where the Welsh Ministers make a calculation by virtue of section 84J(2) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay to the Welsh Ministers a sum equal to the difference. (6) The time for payment under subsection (5) shall be such day after the end of the financial year for which the grant is payable as the Welsh Ministers may specify.

84L Amending reports

(1) Where the Welsh Ministers have made a local government finance report for a particular financial year, the Welsh Ministers may, at any time before the end of the financial year following the financial year concerned, make a report (an “amending report”) containing amendments to the basis of distribution specified under section 84G(2) in the local government finance report. (2) Where the Welsh Ministers have made two local government finance reports relating to the same financial year, the power under subsection (1) may (in particular) be exercised by making a single amending report relating to both of the local government finance reports. (3) Before making an amending report, the Welsh Ministers shall notify to such representatives of local government as appear to the Welsh Ministers to be appropriate the general nature of the amendments they propose to make. (4) An amending report shall be laid before the Assembly. (5) As soon as is reasonably practicable after an amending report is laid before the Assembly, the Welsh Ministers shall send a copy of the amending report to each receiving authority to which the local government finance report relates. (6) Where an amending report has been approved by resolution of the Assembly, the Welsh Ministers may not make a subsequent amending report under this section in relation to the same local government finance report.

84M Recalculation of grant following amending report

(1) This section applies where the Assembly, by resolution, approves a report made under section 84L (“the amending report”) relating to a local government finance report (“the original report”). (2) As soon as is reasonably practicable after the Assembly has approved the amending report, the Welsh Ministers shall calculate in relation to each receiving authority to which the original report relates what sum, if any, falls to be paid to the authority by way of revenue support grant for the financial year to which the original report relates. (3) The calculation under subsection (2) shall be in accordance with the amended basis of distribution. (4) The Welsh Ministers may carry out the subsection (2) calculation again at any time before— (a) the end of the financial year immediately following the one to which the original report relates, or (b) if later, the end of the period of 3 months beginning with the day on which the Assembly approves the amending report. (5) The power under subsection (4) may only be exercised once. (6) As soon as is reasonably practicable after making a calculation under subsection (2) or by virtue of subsection (4), the Welsh Ministers shall inform each receiving authority to which the original report relates of the outcome, so far as relating to it.

84N Payment of grant following amending report

(1) Where the Welsh Ministers make a calculation under section 84M(2) or by virtue of section 84M(4) that shows an increase in the sum that falls to be paid to a receiving authority, they shall pay the authority a sum equal to the difference. (2) Payment under subsection (1) shall be at such time, or in instalments of such amounts and at such times, as the Welsh Ministers may determine, subject to subsection (3). (3) The time for payment under subsection (2) must be after the end of the financial year in which the report under section 84L was made. (4) Where the Welsh Ministers make a calculation under section 84M(2) or by virtue of section 84M(4) that shows a decrease in the sum that falls to be paid to a receiving authority, the authority shall pay a sum equal to the difference to the Welsh Ministers. (5) The time for payment under subsection (4) shall be such day after the end of the financial year in which the report under section 84L was made as the Welsh Ministers may specify.

84P Information deadlines

(1) The Welsh Ministers may set a deadline for the receipt of information to be taken into account by them when making a calculation — (a) under section 84J(1) or by virtue of section 84J(2), or (b) under section 84M(2) or by virtue of section 84M(4). (2) Different deadlines may be set under subsection (1) in relation to different kinds of information. (3) A deadline under subsection (1) shall have effect only if the Welsh Ministers notify each receiving authority concerned of the deadline and of the information to which it relates. (4) Notification under subsection (3) may be given at any time before the making of the calculation to which the deadline relates, including a time before the making of a determination under section 84F for the year concerned. (5) When making a calculation in relation to which a deadline under subsection (1) has effect, the Welsh Ministers shall leave information to which the deadline applies out of account if it is received after the passing of the deadline.

84Q Application of this Chapter etc

(1) The provisions of this Chapter apply as follows— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) sections 86A and 86B apply only in relation to Wales; (c) sections 87, 88, 88A and 88B apply in relation to England and Wales; (d) section 88C applies only in relation to Wales. (2) The following functions are exercisable concurrently so far as they relate to police and crime commissioners in Wales— (a) the functions of the Secretary of State under section 88B; (b) the functions of the Welsh Ministers under section 88C. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85 Additional grant.

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86 Effect of report’s approval.

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86A Additional grant: Wales

(1) This section applies where a local government finance report for a chargeable financial year has been approved by the Assembly and, before the year ends, the Welsh Ministers form the view that fresh circumstances affecting the finances of local authorities have arisen since the approval. (2) For the year concerned the Welsh Ministers may pay a grant (“additional grant”) to receiving authorities in accordance with this section and section 86B. (3) Where the Welsh Ministers propose to pay additional grant for a financial year they shall make a determination under this section. (4) A determination shall state— (a) the amount of grant for the year, and (b) the basis on which the Welsh Ministers propose to distribute it among receiving authorities. (5) A determination shall be specified in a report and the report shall be laid before the Assembly. (6) As soon as is reasonably practicable after the report is laid before the Assembly the Welsh Ministers shall send a copy of it to each receiving authority.

86B Effect of additional grant report’s approval: Wales

(1) This section applies where in accordance with section 86A a determination as regards additional grant has been made for a financial year and specified in a report which has been laid before the Assembly. (2) If the report is approved by resolution of the Assembly— (a) the Welsh Ministers shall pay the amount stated in the determination as the amount of the additional grant for the year, and (b) the amount shall be distributed on the basis stated in the determination. (3) Where a sum falls to be paid to a receiving authority by way of additional grant it shall be paid at such time, or in instalments of such amounts and at such times, as the Welsh Ministers determine; and any such time may fall within or after the financial year concerned.

87 Transport grants.

(1) The Secretary of State shall pay to a defined council a grant for a chargeable financial year if he accepts that at least some of its estimated relevant transport expenditure for the year is appropriate to be taken into account for the purposes of this section. (2) The amount of the grant shall be a proportion of so much of the council’s estimated relevant transport expenditure for the year as he accepts under subsection (1) above. (3) The proportion shall be such as is determined for the year by the Secretary of State and shall be the same as regards each council to which a grant is paid for the year under this section. (4) A grant under this section shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State thinks fit; and any such time need not fall within the financial year concerned. (5) In deciding whether to accept any of a council’s estimated relevant transport expenditure for a financial year under subsection (1) above, and how much of it to accept, the Secretary of State may have regard to the following matters (in addition to any other matters he thinks fit)— (a) whether the council’s relevant transport expenditure for any preceding financial year or years is greater or smaller than its estimated relevant transport expenditure for that year or those years; (b) the extent (if any) to which it is greater or smaller. (6) The total accepted under subsection (1) above as regards all defined councils for a particular financial year shall not exceed such amount as is approved by the Treasury for the year. (7) In the application of this section in relation to Wales, references to the Secretary of State are references to the Welsh Ministers.

88 Transport grants: supplementary.

(1) This section applies for the purposes of section 87 above. (2) Each of the following is a defined council— (a) a county council, (aa) a county borough council,and (b) a metropolitan district council, (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) A council’s relevant transport expenditure for a financial year is the expenditure it calculates it incurred in the year in connection with— (a) highways or the regulation of traffic (where the council is English), or (b) highways, the regulation of traffic or public transport (where the council is Welsh). (4) But in making the calculation expenditure shall be left out of account unless, at the time the calculation is made, it is capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance). (5) A council’s estimated relevant transport expenditure for a financial year is the expenditure it estimates it will incur in the year in connection with— (a) highways or the regulation of traffic (where the council is English), or (b) highways, the regulation of traffic or public transport (where the council is Welsh). (6) But in making the estimate expenditure shall be left out of account unless, at the time the estimate is made, it is capital expenditure for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance).

88A Council tax grants.

(1) If regulations under section 13 of the Local Government Finance Act 1992 (reduced amounts of tax) have effect as regards a financial year the Secretary of State may, with the consent of the Treasury, pay a grant to a billing authority as regards that financial year. (2) The amount of the grant shall be such as the Secretary of State may with the consent of the Treasury determine. (3) A grant under this section shall be paid at such time, or in instalments of such amounts and at such times, as the Secretary of State may with the consent of the Treasury determine. (4) In making any payment of grant under this section the Secretary of State may impose such conditions as he may with the consent of the Treasury determine; and the conditions may relate to the repayment in specified circumstances of all or part of the amount paid, or otherwise. (5) In deciding whether to pay a grant under this section, and in determining the amount of any such grant, the Secretary of State shall have regard to his estimate of any amount which, in consequence of the regulations, the authority might reasonably be expected to lose, or to have lost, by way of payments in respect of the council tax set by it for the financial year concerned. (6) In the application of this section in relation to Wales, references to the Secretary of State are references to the Welsh Ministers.

88B Special grants.

(1) The Secretary of State may, with the consent of the Treasury, pay a grant (in this section referred to as a special grant) in accordance with this section to a relevant authority. (2) Where the Secretary of State proposes to make one special grant he shall, before making the grant, make a determination stating with respect to the grant— (a) to which authority it is to be paid, (b) the purpose for which it is to be paid, and (c) the amount of the grant or the manner in which the amount is to be calculated. (3) Where the Secretary of State proposes to make two or more special grants to different authorities he shall, before making the grants, make a determination stating with respect to the grants— (a) to which authorities they are to be paid, (b) the purpose for which they are to be paid, and (c) either— (i) the amount of the grant which he proposes to pay to each authority or the manner in which the amount is to be calculated, or (ii) the total amount which he proposes to distribute among the authorities by way of special grants and the basis on which he proposes to distribute that amount. (4) A determination under subsection (2) or (3) above shall be made with the consent of the Treasury and shall be specified in a report (to be called a special grant report) which shall contain such explanation as the Secretary of State considers desirable of the main features of the determination. (5) A special grant report shall be laid before the House of Commons and, as soon as is reasonably practicable after the report has been so laid, the Secretary of State shall send a copy of it to any relevant authority to whom a special grant is proposed to be paid in accordance with the determination in the report. (6) No special grant shall be paid unless the special grant report containing the determination relating to the grant has been approved by a resolution of the House of Commons. (7) A special grant report may specify conditions which the Secretary of State, with the consent of the Treasury, intends to impose on the payment of (or of any instalment of) any special grant to which the report relates; and the conditions may— (a) require the provision of returns or other information before a payment is made to the relevant authority concerned, or (b) relate to the use of the amount paid, or to the repayment in specified circumstances of all or part of the amount paid, or otherwise. (8) Without prejudice to compliance with any conditions imposed as mentioned in subsection (7) above, a special grant shall be paid at such time or in instalments of such amounts and at such times as the Secretary of State may, with the consent of the Treasury, determine. (9) For the purposes of this section each of the following is a relevant authority— (a) a receiving authority; (b) an Integrated Transport Authority for an integrated transport area in England; (c) a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009; (d) a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023. (10) In the application of this section in relation to Wales, “relevant authority” means only a police and crime commissioner.

88C Special grants: Wales

(1) The Welsh Ministers may pay a grant (in this section referred to as a special grant) in accordance with this section to a receiving authority in Wales. (2) Where the Welsh Ministers propose to make one special grant they shall, before making the grant, make a determination stating with respect to the grant— (a) to which authority it is to be paid, (b) the purpose for which it is to be paid, and (c) the amount of the grant or the manner in which the amount is to be calculated. (3) Where the Welsh Ministers propose to make two or more special grants to different authorities they shall, before making the grants, make a determination stating with respect to the grants— (a) to which authorities they are to be paid, (b) the purpose for which they are to be paid, and (c) either— (i) the amount of the grant which they propose to pay to each authority or the manner in which the amount is to be calculated, or (ii) the total amount which they propose to distribute among the authorities by way of special grants and the basis on which they propose to distribute that amount. (4) A determination under subsection (2) or (3) above shall be specified in a report (to be called a special grant report) which shall contain such explanation as the Welsh Ministers consider desirable of the main features of the determination. (5) A special grant report shall be laid before the Assembly and, as soon as is reasonably practicable after the report has been so laid, the Welsh Ministers shall send a copy of it to any receiving authority to whom a special grant is proposed to be paid in accordance with the determination in the report. (6) No special grant shall be paid unless the special grant report containing the determination relating to the grant has been approved by a resolution of the Assembly. (7) A special grant report may specify conditions which the Welsh Ministers intend to impose on the payment of (or of any instalment of) special grant to which the report relates; and the conditions may— (a) require the provision of returns or other information before a payment is made to the receiving authority concerned, or (b) relate to the use of the amount paid, or to the repayment in specified circumstances of all or part of the amount paid, or otherwise. (8) Without prejudice to compliance with any conditions imposed as mentioned in subsection (7) above, a special grant shall be paid at such time or in instalments of such amounts and at such times as the Welsh Ministers may determine.

89 Collection funds.

(1) Every billing authority shall establish, and then maintain, a fund (to be called its collection fund) in accordance with this Part. (2) Subject to subsections (2A) to (2C) below,An authority’s collection fund must be established on 1 April 1990. (2A) In the case of a district council which is established for an area by an order under section 17 of the Local Government Act 1992 ..., the collection fund must be established on the date on which by virtue of the order the structural or boundary change affecting the area comes into force. (2B) In the case of— (a) a county council which is established by such an order and to which are transferred by or in consequence of the order the functions of district councils in relation to the county council’s area, or (b) an existing county council to which are transferred by or in consequence of such an order the functions of district councils in relation to the county council’s area, the collection fund must be established on the date on which by virtue of the order the structural change concerned comes into force. (2C) In the case of— (a) a district council or London borough council established by an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, or (b) a county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of such an order, the collection fund must be established on a date specified in the order or in regulations made under section 14 of that Act. (3) Section 101(1)(b) of the Local Government Act 1972 (delegation) shall not apply as regards the functions of an authority in relation to its collection fund. (4) Any sum paid into an authority’s collection fund shall be used in the making of payments which are to be met from that fund or of transfers which are to be made from it. (5) If not immediately required for the purpose of making those payments or transfers, the sum shall be held, invested or otherwise used in such manner as may be prescribed by regulations made by the Secretary of State.

89A Principal councils in Wales.

This Part does not apply to a Welsh county council or county borough council (for whom provision as to the establishment of a council fund is made by section 38 of the Local Government (Wales) Act 1994).

90 Payments to and from collection funds.

(1) The following shall be paid into the collection fund of a billing authority— (a) sums received by the authority in respect of council tax set by it in accordance with section 30 of the Local Government Finance Act 1992 (but not sums received by way of penalty), (b) sums received by the authority from any major precepting authority or the Secretary of State under regulations made under section 99(3) below, (c) sums received by the authority in respect of any non-domestic rate under this Act, (ca) sums received by the authority in respect of any business rate supplement, (d) sums received by the authority under any of the following provisions of Schedule 7B (local retention of non-domestic rates) that are of a kind specified by the Secretary of State as falling to be paid into a billing authority's collection fund— (i) paragraph 14(2) (payments by Secretary of State following local government finance report); (ii) paragraph 14(9) or (10) (payments by Secretary of State following revised calculation); (iii) paragraph 17(7) or (8) (payments by Secretary of State following amending report), (da) sums received by the authority— (i) under provision made by regulations under paragraph 7 of Schedule 7B (regulations about administration of payments in respect of the central share), (ii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments), (iii) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share), (iv) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments), (v) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or (vi) under provision made by regulations under paragraph 42 of that Schedule (payments by Secretary of State following estimates of amounts relating to designated areas or classes), and (e) any other sums which the Secretary of State specifies are to be paid into a billing authority’s collection fund. (1A) The reference in subsection (1)(ca) to sums received by a billing authority in respect of business rate supplements— (a) includes a reference to financial contributions made to it for the purpose of enabling the project to which a business rate supplement relates to be carried out, but (b) does not include a reference to sums returned or transferred to it by virtue of section 24(3)(b) of, or paragraph 3(2)(a) of Schedule 3 to, the Business Rate Supplements Act 2009. (2) The following payments shall be met from the collection fund of a billing authority— (a) payments to be made by the authority in respect of the amount of any precept issued by a major precepting authority under Part I of the Local Government Finance Act 1992 (but not payments to be so made in respect of interest on such an amount), (b) payments to be made by the authority to any major precepting authority or the Secretary of State under regulations made under section 99(3) below, (ba) payments to be made by the authority to a levying authority in accordance with provision made by or under the Business Rate Supplements Act 2009, (c) payments to be made by the authority under any of the following provisions of Schedule 7B that are of a kind specified by the Secretary of State as falling to be met from a billing authority's collection fund— (i) paragraph 14(1) (payments to Secretary of State following local government finance report); (ii) paragraph 14(6) or (7) (payments to Secretary of State following revised calculation); (iii) paragraph 17(4) or (5) (payments to Secretary of State following amending report), (ca) payments made by the authority— (i) under paragraph 6, or under provision made by regulations under paragraph 7, of Schedule 7B (payments in respect of the central share), (ii) under provision made by regulations under paragraph 9 of that Schedule (payments by billing authorities to major precepting authorities), (iii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments), (iv) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share), (v) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments), (vi) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or (vii) under provision made by regulations under paragraph 42 of that Schedule (payments to Secretary of State following estimates of amounts relating to designated areas or classes), (d) payments to be made by the authority to another person in repaying, under regulations under this Act or Part I of the Local Government Finance Act 1992, excess receipts by way of non-domestic rates or of council tax, and (e) any other payments which are to be made by the authority to another person and which the Secretary of State specifies are to be met from a billing authority’s collection fund. (3) The power to specify under this section— (a) includes power to revoke or amend a specification made under the power; (b) may be exercised differently in relation to different authorities.

91 General funds.

(1) For the purposes of this section each of the following is a relevant authority— (a) a district council, (aa) a county council to which have been transferred, by or in consequence of an order under section 17 of the Local Government Act 1992 ... or Part 1 of the Local Government and Public Involvement in Health Act 2007 , the functions of district councils in relation to the county council’s area, (ab) the Greater London Authority, (b) a London borough council, and (c) the Council of the Isles of Scilly. (2) Every relevant authority shall establish, and then maintain, a fund (to be called its general fund) in accordance with this Part. (3) Subject to subsections (3A) to (3D) below, An authority’s general fund must be established on 1 April 1990. (3A) In the case of a district council which is established for an area by an order under section 17 of the Local Government Act 1992 or section 17 of the Regional Assemblies (Preparations) Act 2003, the general fund must be established on the date on which by virtue of the order the structural or boundary change affecting the area comes into force. (3B) In the case of— (a) a county council which is established by such an order and to which are transferred by or in consequence of the order the functions of district councils in relation to the county council’s area, or (b) an existing county council to which are transferred by or in consequence of such an order the functions of district councils in relation to the county council’s area, the general fund must be established on the date on which by virtue of the order the structural change comes into force .... (3C) In the case of the Greater London Authority, the general fund must be established on a date specified in regulations. (3D) In the case of— (a) a district council or London borough council established by an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, or (b) a county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of such an order, the general fund must be established on a date specified in the order or in regulations made under section 14 of that Act. (4) Any sum received by a relevant authority on or after the date on which it is required by this section to establish its general fund shall be paid into that fund; but this does not apply to a sum which is to be paid into its collection fund or a trust fund. (5) Any payment to be made by a relevant authority on or after the date on which it is required by this section to establish its general fund shall be met from that fund; but this does not apply to a payment which is to be met from its collection fund or a trust fund. (6) After 31 March 1990 no district council or London borough council shall be required to keep a general rate fund; and the assets held in the general rate fund of such an authority immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred to its general fund on that date. (7) After 31 March 1990 the Council of the Isles of Scilly shall not be required to keep any fund known as its general fund and required (apart from this subsection) to be kept under any order made under section 265 of the Local Government Act 1972; and the assets held in that fund immediately before 1 April 1990 (other than assets forming part of a trust fund) shall be transferred on that date to the Council’s general fund established under this section. (8) The assets held in the county fund of a relevant county council immediately before the reorganisation date (other than assets forming part of a trust fund) shall be transferred on that date to its general fund established under this section. (9) In subsection (8)— “relevant county council” means— a county council such as is referred to in subsection (3B)(b) above, or an existing county council to which the functions of district councils in relation to the county council's area are transferred by or in consequence of an order under Part 1 of the Local Government and Public Involvement in Health Act 2007, and “the reorganisation date” means the date on which the council is required by this section to establish its general fund.

92 General funds: supplementary.

(1) In this section “relevant authority” has the same meaning as in section 91 above. (2) The Secretary of State may make regulations— (a) about the relationship of a relevant authority’s general fund to its other funds; (b) providing for assets falling within a relevant authority’s general fund to be held in separate funds within the general fund. (3) The regulations may provide that any fund established by a relevant authority on or after 1 April 1990, other than its collection fund or a trust fund, is to be maintained as a separate fund falling within its general fund. (4) The regulations may provide that such assets as are transferred to a relevant authority’s general fund under section 91(6), (7) or (8) above and fall within a prescribed description shall be held in separate funds falling within the general fund; and the number and composition of the separate funds shall be such as are prescribed.

93 The City fund.

(1) The Common Council shall establish, and then maintain, a fund (to be called the City fund) in accordance with this Part. (2) The City fund must be established on 1 April 1990. (3) Any sum received by the Common Council after 31 March 1990 shall be paid into the City fund if it is not a sum which is to be paid into its collection fund or a trust fund and— (a) it is received in respect of the general rate, the poor rate or the St. Botolph tithe rate, or (b) it would have fallen to be credited in aid of any of those rates had this Act not been passed. (4) Any payment to be made by the Common Council after 31 March 1990 shall be met from the City fund if it is not a payment which is to be met from its collection fund or a trust fund and if, had this Act not been passed, it would have fallen to be met out of— (a) the general rate, the poor rate or the St. Botolph tithe rate, or (b) sums which, had this Act not been passed, would have fallen to be credited in aid of any of those rates. (5) No sum shall be paid into, and no payment shall be met from, the City fund except in accordance with subsections (3) and (4) above. (6) The assets of the Common Council subsisting immediately before 1 April 1990 shall be transferred to the City fund on that date if they are assets— (a) subsisting in respect of the general rate, the poor rate or the St. Botolph tithe rate, or (b) representing sums credited in aid of any of those rates.

94 The City: further provisions.

(1) The Secretary of State may make regulations— (a) about the relationship of the City fund to other funds of the Common Council; (b) providing for assets falling within the City fund to be held in separate funds within the City fund; (c) prohibiting the Common Council from establishing funds. (2) The regulations may provide that any fund established by the Common Council on or after 1 April 1990, and falling within a prescribed description, is to be maintained as a separate fund falling within the City fund. (3) The regulations may provide that such assets as are transferred to the City fund under section 93(6) above and fall within a prescribed description shall be held in separate funds falling within the City fund; and the number and composition of the separate funds shall be such as are prescribed. (4) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund into which both the following must or may be paid— (a) sums which must be paid into the City fund under section 93(3) above, and (b) other sums. (5) The regulations may provide that the Common Council shall not establish or maintain on or after 1 April 1990 a fund from which both the following must or may be met— (a) payments which must be met from the City fund under section 93(4) above, and (b) other payments.

95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

97 Principal transfers between funds.

(1) Subject to subsection (2) below, a billing authority which has made calculations in accordance with sections 31A, 31B and 34 to 36 of the Local Government Finance Act 1992 (originally or by way of substitute) shall transfer from its collection fund to its general fund an amount which shall be calculated by applying the formula— B×T where— B is the amount calculated (or last calculated) by the authority under section 31B(1) of that Act as the basic amount of its council tax; T is the amount determined for item T in section 31B(1) of that Act. (2) Where the amount given by subsection (1) above is a negative amount, the authority shall transfer the equivalent positive amount from its general fund to its collection fund. (2A) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its collection fund to its general fund such amounts as may be specified in or determined in accordance with the regulations by reference to— (a) sums received by the authority in respect of non-domestic rates under this Act, and (b) sums received by the authority under or by virtue of Schedule 7B (local retention of non-domestic rates) and required to be paid into its collection fund by virtue of provision made by or under section 90(1)(d) or (da). (2B) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its general fund to its collection fund such amounts as may be specified in or determined in accordance with the regulations by reference to sums received by the authority in respect of non-domestic rates under this Act. (3) Where in accordance with regulations under section 99(3) below a billing authority has estimated that there is a surplus in its collection fund for the preceding year, it shall transfer from its collection fund to its general fund an amount equal to so much of the surplus as, in accordance with the regulations, the authority calculates to be its share. (4) Where in accordance with regulations under section 99(3) below a billing authority has estimated that there is a deficit in its collection fund for the preceding year, it shall transfer from its general fund to its collection fund an amount equal to so much of the deficit as, in accordance with the regulations, the authority calculates must be borne by it. (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) In this section and sections 98 and 99 below, any reference to a billing authority’s general fund shall be construed in relation to the Common Council as a reference to the City fund.

98 Other transfers between funds.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Regulations under section 89(5) above may include provision that— (a) any sum to which they relate shall be transferred from an authority’s collection fund to its general fund . . .; (b) the sum so transferred shall be held, invested or otherwise used in such manner as may be prescribed; (c) a sum equal to the sum transferred shall be transferred to the authority’s collection fund from its general fund . . .; (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) If the Secretary of State directs it to do so, a billing authority shall transfer from its collection fund to its general fund . . . such an amount as is specified in, or calculated in a manner specified in, the direction; and the transfer shall be made at such time as is specified in the direction. (5) If the Secretary of State directs it to do so, a billing authority shall transfer to its collection fund from its general fund . . . such an amount as is specified in, or calculated in a manner specified in, the direction; and the transfer shall be made at such time as is specified in the direction. (6) Different directions may be given to different authorities under subsection (4) or (5) above.

99 Regulations about funds.

(1) The Secretary of State may make regulations about the discharge of the following liabilities of a billing authority— (a) the liability to pay anything from its collection fund or its general fund in respect of any precept issued by a major or local precepting authority under Part I of the Local Government Finance Act 1992; (b) the liability to transfer anything from its collection fund under section 97(1) or (3) or regulations under section 97(2A) above; and (c) the liability to transfer anything from its general fund under section 97(2) or (4) above or regulations under section 97(2B) above. (2) The regulations may include provision— (a) that anything falling to be paid or transferred must be paid or transferred within a prescribed period; (b) that anything falling to be paid or transferred must be paid or transferred in instalments of such amounts, and at such times, as are determined by the billing authority in accordance with prescribed rules; (c) that the billing authority must inform any precepting authorities when instalments will be paid and how they are to be calculated; (d) that if an instalment is not paid to a precepting authority in accordance with the regulations, it is to be entitled to interest on the amount of the instalment; (e) as to the circumstances in which the billing authority is to be treated as having discharged the liabilities mentioned in subsection (1) above; (f) as to the recovery (by deduction or otherwise) of any excess amount paid by the billing authority to any precepting authority in purported discharge of the liability mentioned in subsection (1)(a) above; and (g) as to the transfer back of any excess amount transferred by the billing authority in purported discharge of the liability mentioned in subsection (1)(b) or (c) above. (3) The Secretary of State may by regulations make provision as regards any financial year— (a) that a billing authority must estimate at a prescribed time in the preceding financial year and in accordance with prescribed rules whether there is a deficit or surplus in its collection fund for that year and, if so, the amount of the deficit or surplus; (b) that any surplus or deficit so estimated shall in the financial year concerned— (i) be shared among, or be borne between, the billing authority and one or more relevant authorities in accordance with prescribed rules; or (ii) in the case of the financial year beginning in 1993, belong solely to, or be borne solely by, the billing authority; (c) that the billing authority must within a prescribed period inform prescribed relevant authorities of the effects of any estimates and rules mentioned in paragraphs (a) and (b) above; (d) as to the manner in which any payments which fall to be made by a billing authority or a relevant authority by virtue of any provision included in regulations under paragraph (a) or (b) above must be made; (e) as to the period within which, or time or times at which, any such payments or instalments of such payments must be made; and (f) as to the recovery (by deduction or otherwise) of any excess amount paid by a relevant authority or a billing authority in purported discharge of any liability arising by virtue of any provision included in regulations under paragraph (a) or (b) above. (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3C) In subsection (3) “relevant authority” means— (a) a major precepting authority, or (b) the Secretary of State. (3D) Regulations under subsection (3) may make separate provision in relation to council tax and non-domestic rates, with the effect that— (a) more than one estimate is to be made by a billing authority of whether there is a deficit or surplus in its collection fund for a financial year and, if so, of the amount of the deficit or surplus, (b) each estimate takes into account different amounts to be paid into or met from that fund, and (c) each estimate has different consequences as to the payments to be made, or other functions to be exercised, by the billing authority, major precepting authorities or the Secretary of State. (4) The Secretary of State may make regulations requiring transfers between funds, or adjustments or assumptions, to be made to take account of any substitute calculation under section 31A(4) of the Local Government Finance Act 1992. (5) The Secretary of State may make regulations providing that sums standing to the credit of a billing authority’s collection fund at any time in a financial year must not exceed a total to be calculated in such manner as may be prescribed. (6) Regulations under subsection (5) above in their application to a particular financial year (including regulations amending others) shall not be effective unless they come into force before 1 January in the preceding financial year; but this does not affect regulations which merely revoke others.