PART III continued CHAPTER IV continued
(1) In determining any amount to be specified in an aggregate credit approval or an additional credit approval, the Secretary of State or other Minister may have regard, subject to the following provisions of this section, to such factors as appear to him to be appropriate.
(2) Without prejudice to the generality of subsection (1) above, the Secretary of State or other Minister may, in particular, have regard—
(a) to the amount of any grants or contributions which it appears to him that a relevant authority has received and is likely to receive from any person in respect of expenditure incurred by the authority or to be incurred by the authority before the expiry of the period for which the credit approval is to have effect; and
(b) subject to subsection (3) below, to the amount of capital receipts which it appears to him that any relevant authority has received, might reasonably be expected to have received or to receive or is likely to receive before the expiry of the period for which the credit approval is to have effect.
(3) In determining any amount to be specified in an aggregate credit approval or an additional credit approval, the Secretary of State or other Minister shall not take account of capital receipts—
(a) to the extent that a relevant authority is required to set aside the receipts as provision for credit liabilities;
(b) to the extent that they are received as mentioned in subsection (7) of section 59 of the [1989 c. 42.] Local Government and Housing Act 1989; or
(c) to the extent that their amount falls to be treated as reduced for any purpose under subsection (8) or (9) of that section.
(4) In determining any amount to be specified in the aggregate credit approval or in an additional credit approval to be issued to the Mayor in any financial year, the Secretary of State or other Minister shall not take account of the extent to which it appears to him that any relevant authority is, or is likely to be, in a position to finance expenditure for capital purposes from a revenue account.
(5) In this section “relevant authority”, in the case of any credit approval, means—
(a) as respects a category A or B amount, the authority for which the amount is to be specified, and
(b) as respects a category C or D amount, any authority to which an allocation from that amount may be made by the Mayor in accordance with the approval.
(1) Where a category A or B amount is specified for an authority in an aggregate credit approval or an additional credit approval, so much of the approval as relates to that amount shall be treated for the purposes of Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued to that authority under that Part.
(2) Where an allocation from a category C or D amount specified in an aggregate credit approval or an additional credit approval is made by the Mayor—
(a) to the Authority, or
(b) to a functional body,
the notice of the allocation (read with so much of the credit approval as relates to the allocation) shall be treated for the purposes of Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued under that Part to the Authority or, as the case may be, to the functional body.
(3) Section 56 of the [1989 c. 42.] Local Government and Housing Act 1989 (use of basic credit approvals and supplementary credit approvals) shall apply in relation to a credit approval treated by virtue of subsection (1) or (2) above as issued under Part IV of that Act as it applies in relation to a basic credit approval or a supplementary credit approval.
(4) Any reference in this Chapter to the use of an aggregate credit approval or an additional credit approval is a reference to the use, under Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 or any other enactment, of any credit approvals treated as issued under that Part by virtue of the application of subsection (1) or (2) above in relation to the aggregate credit approval or, as the case may be, the additional credit approval (and related expressions shall be construed accordingly).
(1) The Secretary of State may make regulations for and in connection with conferring on the Mayor power to direct any functional body to pay to the Authority such percentage as may be specified in the direction of so much of the usable part of the body’s capital receipts as may be so specified.
(2) The power conferred on the Mayor must be exercisable only for the purpose of enabling the amount paid under such a direction (the “relevant amount”) to be applied towards meeting expenditure for capital purposes of another functional body or of the Authority (“the assisted body”).
(3) The provision that may be made by regulations under subsection (1) above includes provision—
(a) with respect to the percentage or maximum percentage that may be specified in a direction;
(b) with respect to the portion of the usable part of a functional body’s capital receipts in respect of which a direction may be issued;
(c) requiring a direction to be complied with before the expiration of a prescribed period;
(d) requiring the Mayor, within such time or in such manner as may be prescribed, to notify the functional bodies of decisions taken with respect to the exercise of powers conferred by the regulations;
(e) for and in connection with enabling the Mayor to permit the relevant amount to be applied towards meeting expenditure for capital purposes of the assisted body generally or to require it to be applied towards meeting only such expenditure of a particular description;
(f) for and in connection with treating the whole or a prescribed part of the relevant amount as added to the usable part of the capital receipts of the assisted body, for the purposes of Part IV of the [1989 c. 42.] Local Government and Housing Act 1989;
(g) for and in connection with requiring an assisted body to apply the relevant amount only for the purposes for which it was paid to the body.
(4) In this section “prescribed” means prescribed by regulations.
(1) The Authority may pay grants towards meeting expenditure for capital purposes incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
(2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure for capital purposes incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
(3) A grant under this section must not be made subject to any limitation in respect of the expenditure for capital purposes which it may be applied towards meeting.
(4) A grant under this section must be applied by the recipient body solely towards meeting expenditure for capital purposes incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions.
(1) The Authority may pay grants towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
(2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
(3) A grant under this section must not be made subject to any limitation in respect of the expenditure which it may be applied towards meeting (other than that the expenditure must not be expenditure for capital purposes).
(4) A grant under this section must be applied by the recipient body solely towards meeting expenditure incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions, other than expenditure for capital purposes.
(1) The Mayor shall, in accordance with the following provisions of this section and sections 123 and 124 below, prepare for each financial year a capital spending plan for the functional bodies.
(2) A capital spending plan shall consist of the sections described in subsections (3) to (6) below.
(3) Section A of a capital spending plan shall consist of a statement for each functional body of the Mayor’s estimates of the following amounts—
(a) the total amount of capital grants likely to be paid to the body during the year by any person other than the Authority;
(b) the amount, at the beginning of the year, of the usable part of the body’s capital receipts; and
(c) the amount by which the usable part of the body’s capital receipts is likely to be increased by capital receipts which it appears to the Mayor the functional body might reasonably be expected to receive, or is likely to receive, during the year.
(4) Section B of a capital spending plan shall consist of a statement for each functional body of the following amounts—
(a) if the Mayor has decided a minimum amount of grant which the Authority is to pay to the body for the year under section 120(1) above, that minimum amount;
(b) the total amount of category A amounts specified for the body in the aggregate credit approval for the year;
(c) the total amount of category B amounts specified for the body in the aggregate credit approval for the year; and
(d) each amount which the Mayor has decided to allocate to the body out of the category C and D amounts specified in the aggregate credit approval for the year (together with a statement of the purposes for which the amount is allocated).
(5) Section C of a capital spending plan shall consist of a statement for each functional body of the total of the following amounts—
(a) the total amount of expenditure for capital purposes which the Mayor expects the body to incur during the year; and
(b) the total amount of credit cover which the Mayor expects the body to have available under sections 50(2) and 51(4) of the [1989 c. 42.] Local Government and Housing Act 1989 with respect to credit arrangements entered into or varied during the year;
and in this section the total of those amounts is referred to as the body’s “total capital spending” for the year.
(6) Section D of a capital spending plan shall consist of an analysis of each functional body’s total capital spending for the year showing—
(a) the amount which the Mayor expects the body to meet out of capital grants;
(b) the amount which he expects the body to meet out of the usable part of its capital receipts;
(c) the amount which he expects the body to meet by using the aggregate credit approval for the year;
(d) the amount which he expects the body to meet by making a charge to a revenue account.
(1) After the Secretary of State has issued the aggregate credit approval for a financial year, the Mayor shall prepare a draft of the capital spending plan for the year.
(2) Before 15th January in the financial year preceding that to which the capital spending plan relates, the Mayor shall—
(a) send a copy of the draft to the Assembly and to each functional body; and
(b) invite them to submit their comments on the draft to him in writing within 21 days.
(3) Before finally determining the contents of the capital spending plan, the Mayor shall consider any comments submitted in accordance with the invitation under subsection (2)(b) above and make such revisions of the draft as he thinks fit, having regard to those comments.
(4) Before 28th February in the financial year preceding that to which the capital spending plan relates, the Mayor shall—
(a) send the plan to the Secretary of State; and
(b) send a copy of the plan to the Assembly and to each functional body.
(5) A copy of the capital spending plan shall be kept available for the appropriate period by the Mayor for inspection by any person on request free of charge at the principal offices of the Authority at reasonable hours.
(6) A copy of the capital spending plan, or any part of it, shall be supplied to any person on request during the appropriate period for such reasonable fee as the Mayor may determine.
(7) In this section “the appropriate period” in the case of a capital spending plan is the period of six years beginning with the date of publication of that plan pursuant to this section.
(1) In preparing a capital spending plan for any financial year, the Mayor may take account of such factors as appear to him to be appropriate.
(2) The reference in subsection (1) above to preparing a capital spending plan for a financial year includes a reference to deciding, in the case of each of the functional bodies,—
(a) the minimum amount of grant which the Authority is to pay to the body for the year under section 120 above; and
(b) the amounts to be allocated to the body out of the category C and D amounts specified in the aggregate credit approval for the year.
(3) Without prejudice to the generality of subsection (1) above, the Mayor may in particular take account of—
(a) the capital spending plans for such financial years which have ended as he may determine; and
(b) the amounts of each functional body’s total capital spending specified in section C of each of those plans which have been met as described in each of the paragraphs of subsection (4) below.
(4) Those amounts are—
(a) the amount met out of capital grants made to the body;
(b) the amount met out of the usable part of the body’s capital receipts;
(c) the amount met by using the aggregate credit approval or any additional credit approvals;
(d) the amount met by making a charge to a revenue account.
(1) The Mayor may serve on a functional body a notice requiring the body to supply to him such information as is specified in the notice and required by him for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Chapter.
(2) If the information specified in a notice under this section is in the possession or under the control of the functional body on which the notice is served, the body shall supply the information required in such form and manner, and at such time, as is specified in the notice and, if the notice so requires, the information shall be certified (according as is specified in the notice) in one or both of the following ways—
(a) by the chief finance officer of the body, within the meaning of section 127 below, or by such other person as may be specified in the notice; and
(b) under arrangements made by the Audit Commission for Local Authorities and the National Health Service in England and Wales.
(3) If a functional body fails to comply with subsection (2) above, the Mayor may decide—
(a) whether to exercise his powers, and how to perform his functions, under this Chapter, or
(b) whether the body has acted, or is likely to act, in accordance with this Chapter,
on the basis of such assumptions and estimates as he thinks fit.
(4) In deciding—
(a) whether to exercise his powers, and how to perform his functions, under this Chapter, or
(b) whether a functional body has acted, or is likely to act, in accordance with this Chapter,
the Mayor may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other enactment.
(1) In this Chapter, unless the context otherwise requires—
“additional credit approval” shall be construed in accordance with section 114 above;
“aggregate credit approval” shall be construed in accordance with section 113 above;
“capital receipts” has the same meaning as in Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (see section 58 of that Act);
“capital spending plan” means a capital spending plan under section 122 above;
“category”, denoted by a following capital letter and used in relation to an amount, shall be construed in accordance with section 113(5) above;
“expenditure for capital purposes” has the same meaning as in Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (see section 40 of that Act);
“notice”, in relation to an allocation from a category C or D amount, shall be construed in accordance with section 115(3) above;
“the usable part”, in relation to capital receipts, has the same meaning as in Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (see section 60 of that Act);
“use”, in relation to an aggregate credit approval or an additional credit approval, shall be construed in accordance with section 118(4) above.
(2) References in this Chapter to credit arrangements, or to entering into credit arrangements, shall be construed in accordance with Part IV of the [1989 c. 42.] Local Government and Housing Act 1989 (see section 48 of that Act).
(1) In this section “relevant authority” means—
(a) the Authority; or
(b) a functional body.
(2) Every relevant authority—
(a) shall make arrangements for the proper administration of its financial affairs; and
(b) shall secure that one of its officers (its “chief finance officer”) has responsibility for the administration of those affairs.
(3) No person may be the chief finance officer of two or more relevant authorities at the same time.
(4) In subsection (2)(b) above, the reference to officers includes a reference to employees or members of staff and, in the case of Transport for London and the London Development Agency, includes a reference to members of the relevant authority.
(5) The chief finance officer of the Authority must be a member of staff appointed under section 67(2) above.
(6) The function of appointing the Authority’s chief finance officer under subsection (2)(b) above shall be a function of the Authority which is exercisable on behalf of the Authority by the Assembly after consultation with the Mayor.
(7) If the Mayor is a member of Transport for London, he must not be its chief finance officer.
(8) In section 2 of the [1989 c. 42.] Local Government and Housing Act 1989 (politically restricted posts) in subsection (6)(d) (the effect of which is that the chief finance officer appointed under certain provisions is included among “the chief statutory officers” for the purposes of that section) after “section 112 of the [1988 c. 41.] Local Government Finance Act 1988” there shall be inserted “, section 127(2) of the Greater London Authority Act 1999”.
(1) Section 111 of the [1988 c. 41.] Local Government Finance Act 1988 (interpretation of Part VIII (financial administration)) shall be amended as follows.
(2) In subsection (2) (which specifies the bodies which are relevant authorities for the purposes of Part VIII) after paragraph (b) there shall be inserted—
“(bb) the Greater London Authority;
(bc) a functional body, within the meaning of the 1999 Act;
(bd) the London Pensions Fund Authority;”.
(3) In subsection (3) (meaning of “1972 Act” etc) at the end there shall be added “and the 1999 Act is the Greater London Authority Act 1999”.
In section 113(1) of the [1988 c. 41.] Local Government Finance Act 1988 (requirements to be fulfilled by person having responsibility for administration of financial affairs under certain provisions) after “section 73 of the 1985 Act” there shall be inserted “, section 127 of the 1999 Act”.
(1) Section 114 of the [1988 c. 41.] Local Government Finance Act 1988 (functions of responsible officer as regards reports) shall be amended as follows.
(2) In subsection (1) (person having responsibility for administration of financial affairs under certain provisions to have functions as regards reports) after “section 73 of the 1985 Act” there shall be inserted “, section 127 of the 1999 Act”.
(3) After subsection (3A) (preparation of report: duty to consult head of paid service and monitoring officer) there shall be inserted—
“(3B) Subsection (3A) above shall have effect in relation to the London Development Agency with the substitution for paragraphs (a) and (b) of the words “with the person who is for the time being appointed under paragraph 4(2) of Schedule 2 to the [1998 c. 45.] Regional Development Agencies Act 1998 as the chief executive of the London Development Agency”.
(3C) Subsection (3A) above shall have effect in relation to Transport for London with the substitution for paragraphs (a) and (b) of the words “with the person who is for the time being designated for the purpose under subsection (3D) below”.
(3D) Transport for London shall designate a member of Transport for London, or a member of the staff of Transport for London, as the person who is to be consulted under subsection (3A) above.”
(4) After subsection (4) (duty to send copy of report to each member of the authority etc) there shall be inserted—
“(4A) The duty under subsection (4)(b) above—
(a) in a case where the relevant authority is the Greater London Authority, is to send a copy of the report to the Mayor of London and to each member of the London Assembly; and
(b) in a case where the relevant authority is a functional body, within the meaning of the 1999 Act, includes a duty to send a copy of the report to the Mayor of London and to the Chair of the Assembly, within the meaning of that Act.”
(1) Section 115 of the [1988 c. 41.] Local Government Finance Act 1988 (authority’s duties as regards reports) shall be amended as follows.
(2) After subsection (1) there shall be inserted—
“(1A) Where the report under section 114 above is a report by the chief finance officer of the Greater London Authority, section 115A below shall have effect in place of subsections (2) and (3) below.”
(3) After subsection (3) there shall be inserted—
“(3A) In the case of the London Development Agency or Transport for London, Part VA of the 1972 Act (access to meetings etc) shall have effect in relation to the meeting as if that authority were a principal council.”
(4) After subsection (4) (which prevents delegation under section 101(2) of the [1972 c. 70.] Local Government Act 1972) there shall be inserted—
“(4A) In the case of the London Development Agency or Transport for London, neither—
(a) paragraph 7 of Schedule 2 to the [1998 c. 45.] Regional Development Agencies Act 1998 (delegation by London Development Agency etc), nor
(b) paragraph 7 of Schedule 10 to the 1999 Act (delegation by Transport for London),
shall apply to the duty under subsection (2) above.”
(5) After subsection (9) (the prohibition period) there shall be inserted—
“(9A) In the application of this section where the report under section 114 above is a report by the chief finance officer of the Greater London Authority, subsection (9) above shall have effect with the substitution for paragraph (b) of—
“(b) ending with the first business day to fall after the day (if any) on which the Mayor makes the decisions under section 115A(6) below”.”
(6) In subsection (10) (immaterial for subsection (9)(b) that subsection (3) is not complied with) after “subsection (3) above” there shall be inserted “, or, where section 115A below applies, subsection (4) or (8) of that section,”.
(7) In subsection (11) (nature of decisions at meeting immaterial for subsection (9)(b)) after “decisions made at the meeting” there shall be inserted “, or, where section 115A below applies, by the Mayor under subsection (6) of that section,”.
(8) After subsection (12) there shall be added—
“(13) In the application of this section in relation to the Greater London Authority, the references to the authority in subsections (5) to (12) above shall be taken as references to the Greater London Authority whether acting by the Mayor, the Assembly or the Mayor and Assembly acting jointly.
(14) In this section—
“the Assembly” means the London Assembly;
“the Mayor” means the Mayor of London.”
(9) After section 115 of the [1988 c. 41.] Local Government Finance Act 1988 there shall be inserted—
(1) This section applies where copies of a report under section 114 above by the chief finance officer of the Greater London Authority have been sent under section 114(4) above.
(2) The Mayor shall consider the report preparatory to making the decisions under subsection (6) below.
(3) The Assembly shall consider the report at a meeting where it shall decide—
(a) whether it agrees or disagrees with the views contained in the report; and
(b) what action (if any) it recommends that the Mayor should take in consequence of it.
(4) The meeting must be held not later than the end of the period of 21 days beginning with the day on which the copies of the report are sent.
(5) The Mayor must attend the meeting.
(6) After the meeting, the Mayor shall decide—
(a) whether he agrees or disagrees with the views contained in the report; and
(b) what action (if any) he proposes to take in consequence of it.
(7) In making any decision under subsection (6) above, the Mayor shall take account of any views or recommendations of the Assembly at the meeting.
(8) The Mayor must make the decisions under subsection (6) above before the end of the period of 14 days beginning with the day on which the meeting of the Assembly concludes.
(9) Any functions of the Mayor under this section must be exercised by the Mayor personally.
(10) Section 54 of the 1999 Act (discharge of Assembly functions by committees etc) shall not apply in relation to any function of the Assembly under this section.
(11) In this section—
“the Assembly” means the London Assembly;
“the Mayor” means the Mayor of London.”
(1) Section 5 of the [1989 c. 42.] Local Government and Housing Act 1989 (designation and reports of monitoring officer) shall be amended as follows.
(2) In subsection (8) (interpretation) in the [1988 c. 41.] definition of “chief finance officer” after “Local Government Finance Act 1988” there shall be inserted “, section 127(2) of the Greater London Authority Act 1999”.
(1) In Schedule 2 to the [1998 c. 18.] Audit Commission Act 1998 (accounts subject to audit) in paragraph 1 (bodies to whose accounts section 2 applies) after paragraph (b) there shall be inserted—
“(bb) the Greater London Authority;
(bc) a functional body;
(bd) the London Pensions Fund Authority;”.
(2) Schedule 8 to this Act (which makes further amendments of the [1998 c. 18.] Audit Commission Act 1998) shall have effect.
(1) For each financial year the Authority shall prepare a summary statement of accounts.
(2) The summary statement of accounts shall be in respect of the Authority, the functional bodies and the London Pensions Fund Authority.
(3) Subsection (1) above is without prejudice to any other duty of the Authority, a functional body or the London Pensions Fund Authority to prepare accounts or statements of accounts.
(4) Section 14 of the [1998 c. 18.] Audit Commission Act 1998 (inspection of statements of accounts and auditors' reports) shall apply in relation to a summary statement of accounts required to be prepared under this section as it applies in relation to a statement of accounts prepared by the Authority under regulations under section 27 of that Act.
(5) Sections 15 to 24 of the [1998 c. 18.] Audit Commission Act 1998 (public inspection etc and action by the auditor, and prevention of unlawful expenditure) shall not apply in relation to a summary statement of accounts required to be prepared under this section.
(6) Section 27 of the [1998 c. 18.] Audit Commission Act 1998 (accounts and audit regulations) shall apply in relation to a summary statement of accounts required to be prepared under this section as it applies in relation to accounts or statements of accounts.