The Local Government (Structural Changes) (Further Financial Provisions and Amendment) Regulations 2009

• Citation: S.I. 2009/5
• Sections: 10

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Local Government (Structural Changes) (Further Financial Provisions and Amendment) Regulations 2009 and shall come into force on 29th January 2009.

(2) These Regulations, which are of general application, do not affect—

(a) any provision included in other regulations under Chapter 1 of Part 1 of the Local Government and Public Involvement in Health Act 2007 (structural and boundary change); or

(b) any matter for which provision is made in an agreement under section 16 of the Local Government and Public Involvement in Health Act 2007 (agreements about incidental matters).

Section 2 Interpretation

(1) In these Regulations—

“the 1988 Act ” means the Local Government Finance Act 1988 ;

“the 1992 Act ” means the Local Government Finance Act 1992 ;

“predecessor council” means a local authority which, by or in consequence of a section 7 order, ceases to exist on the reorganisation date;

“preparing council” means a local authority which, in accordance with a section 7 order, becomes a single tier council on the reorganisation date;

“reorganisation date”, in relation to a single tier council, means the date specified in the section 7 order as that on which a structural change comes into effect;

“section 7 order” means an order under section 7 of the 2007 Act;

“shadow council” means an authority (not being a local authority) which, in accordance with a section 7 order, becomes a single tier council on the reorganisation date; and

“single tier council” means a local authority which on and after the reorganisation date is the sole principal authority for an area.

(2) For the purposes of these Regulations—

(a) a single tier council is related to a predecessor council if on the reorganisation date the area of the single tier council includes that of the predecessor council; and

(b) where on the reorganisation date the area of a predecessor council comprises the areas of two or more single tier councils taken together, both or all of those single tier councils are related to the predecessor council.

Section 3 Establishment of collection funds

As regards a single tier council that is related to a predecessor council which is—

(a) a shadow council, or

(b) a preparing council which is a county council,

the date specified for the purposes of subsection (2C) of section 89 of the 1988 Act (collection funds) is the date that falls one day after the date on which the predecessor council makes its calculation under section 32 (calculation of budget requirement) of the 1992 Act for the financial year beginning on the reorganisation date.

Section 4 Establishment of general funds

1st April 2009 is the date specified for the purposes of subsection (3D) of section 91 of the 1988 Act (general funds) as regards a single tier council that is related to a predecessor council which is—

(a) a shadow council, or

(b) a preparing council which is a county council.

Section 5 Treatment of collection fund surpluses and deficits

The Local Authorities (Funds) (England) Regulations 1992 (“the Funds Regulations”) shall have effect with the modifications specified in the Schedule to these Regulations.

Section 6 Anticipation of amounts required to discharge functions of charter trustees

(1) Section 32 of the 1992 Act (calculation of budget requirement) shall have effect in relation to—

(a) a preparing or shadow council which, by virtue of regulation 8 of the Local Government (Structural Changes)(Finance) Regulations 2008 , is the billing authority for an area for any part of which charter trustees are likely to be established on the reorganisation date; and

(b) the financial year beginning on that date,

as if, notwithstanding subsection (6), it required the authority, in making calculations under that section (whether originally of by way of substitute ), to anticipate the amount likely to be required in that financial year for the discharge of the charter trustees’ functions.

(2) An amount anticipated as mentioned in paragraph (1) shall be treated for the purposes of section 34 of the 1992 Act (additional calculations where special items relate to part only of area) as if it were an item mentioned in section 35(1) of that Act (special items for purposes of section 34) relating to the area for which the charter trustees are to act.

(3) Where paragraph (1) applies—

(a) section 37(1) of the 1992 Act (substitute calculations) shall have effect as if after “purpose” there were inserted “and taking into account the modification of that section by regulation 6(1) of the Local Government (Structural Changes) (Further Financial Provisions and Amendment) Regulations 2008”; and

(b) subsection (1)(b) of section 52X of the 1992 Act (calculations to be net of precepts) and subsection (2) of section 52Y of that Act (information for the purposes of Chapter 4A) shall have effect as if references to the aggregate amount of precepts anticipated by a billing authority in pursuance of regulations under section 41 of that Act included references to an amount anticipated under paragraph (1) of this regulation .

Section 7 Amendment of the Local Government (Structural Changes) (Transfer of Functions, Property, Rights and Liabilities) Regulations 2008

The Local Government (Structural Changes) (Transfer of Functions, Property, Rights and Liabilities) Regulations 2008 are amended, in regulation 6 (interpretation and application of Part 3), in paragraph (1), by the substitution for the definition of “financial reserves” of—

“financial reserves”, in relation to a predecessor council and any successor council, means—

the total of such amounts of a description contained in section 69(2A)(b) of the Local Government Finance Act 1992 (construction of references to expenditure incurred by a billing authority, major precepting authority or local precepting authority); and

the total of the amount of the predecessor council’s capital receipts, as defined for the purposes of Chapter 1 of the Local Government Act 2003

Section 1

In regulation 2 (interpretation)—

(a) in paragraph (1) insert the following definitions—

“preceding financial year” means the financial year that precedes the relevant year;

“predecessor billing authority” means a predecessor council which, as regards the preceding financial year, is a billing authority for the purposes of Part 1 of the 1992 Act;

“predecessor council” means a local authority which, by or in consequence of a section 7 order, ceases to exist on the reorganisation date;

“predecessor county council” means a predecessor council which is a county council;

“relevant year” means the financial year beginning on the reorganisation date;

“reorganisation date”, in relation to a council, means the date specified in the section 7 order as that on which a structural change comes into effect;

“section 7 order” means an order under section 7 of the 2007 Act;

“single tier council” means a local authority which on and after the reorganisation date is the sole principal authority for an area;

“successor council”—

in relation to a predecessor council whose area is to become part of the area of a sole single tier council on the reorganisation date, means the preparing or shadow council which will become that single tier council;

in relation to a predecessor council whose area is to become the area of more than one single tier council on the reorganisation date, means the preparing or shadow councils which will become those single tier councils;

(b) After paragraph (3) insert—

(4) For the purposes of these Regulations—

(a) a single tier council is related to a billing authority (whether or not a predecessor billing authority) and to a predecessor county council if on the reorganisation date the area of the single tier council includes that of the billing authority or county council; and

(b) where on the reorganisation date the area of a billing authority (whether or not a predecessor billing authority) or a predecessor county council is comprised in the areas of two or more single tier councils taken together, both or all of those single tier councils are related to the authority.

Section 2

In regulation 5 (information on schedules of instalments), omit paragraph (1)

Section 3

In regulation 11 (apportionment of and liability for surpluses and deficits)—

(a) in paragraph (2), for “Any” substitute “Subject to paragraphs (2A) to (2C), any”;

(b) after paragraph (2), insert—

(2A) The amounts estimated by a shadow council, or a preparing council which is a county council, as the aggregate of—

(a) the amounts that, but for the section 7 order, would have belonged to each of its predecessor billing authorities as the billing authority’s share of any surplus in its collection fund as regards the preceding financial year; and

(b) the amounts that, but for the section 7 order, would have been borne by each of its predecessor billing authorities as the billing authority’s share of any deficit in its collection fund as regards the preceding financial year,

shall be treated, as regards the relevant year, as amounts estimated as belonging to or to be borne by the related single tier council.

(2B) The amount of any surplus or deficit in its collection fund estimated by a council which is both—

(a) a billing authority as regards the preceding financial year, and

(b) a single tier council as regards the relevant year,

(a “continuing council”) as an amount that, but for the section 7 order relevant to the continuing council, the continuing council would have been required to treat as the amount of the surplus or deficit estimated as belonging to or to be borne by its related predecessor county council as regards the relevant year, shall be treated, as regards that year, as the amount of the surplus or deficit estimated as belonging to or to be borne by the continuing council (in addition to any amount that it is entitled, in accordance with paragraph (2), to treat as belonging to or to be borne by it).

(2C) The amount estimated by a shadow council, or a preparing council which is a county council, to be the amount of any surplus or deficit in the collection fund of each of its predecessor billing authorities that, but for the section 7 order relevant to its related predecessor county council, the predecessor billing authority would have been required to treat as the amount estimated as belonging to or to be borne by its related predecessor county council as regards the relevant year, shall be treated, as regards that year, as the amount of the surplus or deficit estimated as belonging to or to be borne by the related single tier council.

(c) After paragraph (3) insert—

(4) Each predecessor billing authority shall, at the same time as it informs its relevant major precepting authorities by notice in accordance with paragraph (3) (a “paragraph (3) notice”), send a copy of the paragraph (3) notice to its related successor council.

(5) As soon as practicable after a shadow council or a preparing council which is a county council receives a copy of a paragraph (3) notice, it shall prepare a schedule of instalments of amounts payable in the relevant year—

(a) on the basis of the information contained in the paragraph (3) notice, and

(c) in accordance with regulation 4.