Local Government Reform Act 2014

58.

Amendment to Chapter 1 (financial procedures) of Part 12 of Principal Act

58. Chapter 1 of Part 12 of the Principal Act is amended—

(a) in section 97 by deleting subsection (2) (a),

(b) in section 97 by inserting in subsection (3) “(including by or on behalf of a successor authority in respect of a dissolved body to which the successor authority relates)” after “all money received by or on behalf of a local authority”,

(c) by deleting sections 100 and 101,

(d) in section 102 by substituting the following for subsection (3):

“(3) The draft local authority budget shall be prepared under the direction of the chief executive in the manner and in the format that may be prescribed by regulations made by the Minister showing the amounts necessary for the functional programmes of the authority.”,

(e) in section 102 by inserting the following after subsection (4):

“(4A) (a) In the case of a county council or a city and county council, the chief executive shall consult the municipal district members for each municipal district in the council’s functional area in the preparation of a draft local authority budget and, for that purpose, a draft budgetary plan for the municipal district shall be prepared under the direction of the chief executive and submitted for consideration by the municipal district members for each municipal district in the manner and in the format that may be prescribed by regulations made by the Minister.

(b) In determining the resources to be made available to each municipal district in the draft budgetary plan, the chief executive shall have regard to—

(i) the needs of, and the resources available or likely to be available to, the local authority, and

(ii) resource needs of each municipal district including, where appropriate, the population of each municipal district.

(c) Following consideration of a draft budgetary plan under paragraph (a), the municipal district members shall by resolution adopt the draft budgetary plan with or without amendment.

(d) The making of amendments under paragraph (b) by the municipal district members is a reserved function.

(e) The chief executive shall take account of any budgetary plan adopted by the municipal district members in preparing the draft local authority budget (in accordance with subsection (2)).”,

(f) in section 103 by substituting the following for subsection (2) (b):

“(b) which is held during the period directed by the Minister, and”,

(g) in section 103 by substituting the following for subsection (7) (b):

“(b) shall by resolution adopt the draft local authority budget with or without amendment, and—

(i) shall—

(I) subject to section 10 of the Local Government (Financial Provisions) Act 1978, by resolution determine in accordance with the local authority budget as so adopted, the annual rate on valuation to be levied, and

(II) where appropriate, have regard to the base year adjustment determined in accordance with section 29 of the Local Government Reform Act 2014,

or

(ii) where it is a joint body, shall prepare and by resolution adopt, in accordance with the local authority budget as so adopted, the demand by the joint body whereby the money to meet the expenses of the joint body, in the forthcoming local financial year is to be obtained.”,

(h) in section 103 by substituting the following for subsection (9):

“(9) Notwithstanding the other provisions of this section and section 102, a local authority budget may be adopted and the annual rate on valuation determined (including, where appropriate, having regard to the base year adjustment determined in accordance with section 29 of the Local Government Reform Act 2014) in the local financial year to which that budget or that rate applies, where this is in accordance with the period directed by the Minister for holding the local authority budget meeting.”,

(i) by inserting the following new section after section 103:

“Schedule of municipal district works

103A. (1) As soon as may be following the adoption of the local authority budget, a schedule of proposed works of maintenance and repair to be carried out during the financial year in each municipal district shall be prepared under the direction of the chief executive, having regard to the availability of resources, in the manner, format and within the timescale that may be prescribed by regulations made by the Minister.

(2) A schedule prepared for the purposes of subsection (1) shall be considered by the municipal district members concerned and be adopted by resolution, with or without amendment by it, within such time limit and in accordance with such conditions and requirements as may be prescribed by the regulations made by the Minister.

(3) In making an amendment under subsection (2) the municipal district members shall have due regard to the local authority budget adopted in accordance with section 103(9).

(4) If the schedule prepared for the purpose of subsection (1) is not adopted by the municipal district members in accordance with subsection (2) and any regulations made under that subsection, then the local authority concerned shall consider that schedule and by resolution adopt it with or without amendment (having due regard to the local authority budget adopted in accordance with section 103(9) ) within such time limit as may be prescribed by the regulations made by the Minister.”,

(j) in section 105 by substituting in subsection (2) “local authority” for “county council or city council” in both places where it occurs,

(k) in section 106 by deleting paragraph (6) (b),

(l) in section 110 by substituting in subsection (11) “the entire administrative area of a local authority” for “an entire county or city”,

(m) in section 111 by deleting paragraphs (c), (d) and (e) of subsection (1),

(n) in section 111 by substituting “local authority” for “county council or city council” in subsection (1) (f),

(o) in section 112 by inserting the following after subsection (1):

“(1A) In stating his or her opinion and preparing the report or special report, as the case may be, in accordance with section 120, the local government auditor shall take account of any objection and decision recorded in accordance with subsection (1).”,

and

(p) in section 112 by deleting subsection (2).