Explanatory note

Under Part VI of the Local Government Finance Act 1988 charging authorities are required to maintain collection funds. Into those funds must be paid receipts from community charges, from non-domestic rates and from revenue support grant. From those funds charging authorities must meet precepts from other authorities and their own demands, calculated under section 95 of the Act, in respect of their estimated expenses.

These Regulations, which are made under Part VI of the Local Government Finance Act 1988, make provision about the discharge by charging authorities of their liabilities in respect of precepts and in respect of transfers under section 97 of the Act to meet their estimated expenses.

Regulation 3 makes provision for a charging authority to make certain payments and transfers from its collection fund in accordance with a schedule of instalments and for the circumstances in which certain liabilities of the authority are to be treated as discharged.

Regulations 4 and 5, together with Schedule 1, provide that a charging authority shall determine a schedule of instalments, and make provision as to the rules in accordance with which it is normally to do so. Regulation 6 provides for schedules of instalments to be amended. Regulations 7 and 8 make provision as to the payment of interest where amounts payable in accordance with a schedule of instalments are not paid.

Regulations 9 to 12, together with Schedule 2, make provision as to certain transfers, as to the holding, investment and use of sums paid into a charging authority’s collection fund, and as to the payment into the fund of amounts representing interest on those sums.