The Combined Authorities (Finance) Order 2017

The costs of a mayor^f1 F1... that are incurred in, or in connection with, the exercise of mayoral functions are to be met from precepts issued by the authority under section 40 of the 1992 Act (issue of precepts by major precepting authorities)^f2.

Paragraph (1) has effect subject to—

This article applies where a mayor exercises PCC functions.

The following provisions are modified in accordance with the Schedule to this Order—

Any monies paid to the mayor by a billing authority in respect of the PCC component of a precept^f4 issued to the billing authority must be paid by the mayor into the police fund kept by the mayor by virtue of section 21 of the Police Reform and Social Responsibility Act 2011^f5.

In paragraph (3) “PCC component of a precept” means the amounts stated in a precept in respect of the mayor’s PCC functions in accordance with section 40 of the 1992 Act as modified by the Schedule to this Order.

The mayor must, before 1st February in any financial year, notify the combined authority F1or CCA as the case may be of the mayor’s draft budget in relation to the following financial year.

The draft budget must—

In this Part references to “the combined authority" F2or to the CCA as the case may be are, except in article 8(7) and (8), to be construed as references to members of the authority other than F3a non-constituent member, an associate member or the mayor.

The combined authority F1or CCA as the case may be must review the mayor’s draft budget notified to it under article 5.

The combined authority F2or CCA as the case may be may make a report to the mayor on the draft budget.

Any report—

The mayor’s draft budget shall be deemed to be approved by the combined authority F4or CCA as the case may be unless the authority makes a report under paragraph (2) to the mayor before 8th February.

decide whether or not to make any revisions to the draft budget; and

notify the combined authority or CCA as the case may beof the reasons for that decision and, where revisions are made, the revised draft budget.

When any period specified under article 7 by the combined authority F1or CCA as the case may be has expired the authority must determine whether to—

The mayor’s draft budget (or revised draft budget) shall be deemed to be approved unless vetoed within the relevant period in accordance with this article.

In making a decision on a question under paragraph (1) the combined authority F3or CCA as the case may be must take into account the reasons given by the mayor under article 7.

Any decision to veto the mayor’s draft budget (or draft revised budget) and approve the mayor’s draft budget incorporating the F4recommendations of the combined authority or of the CCA as the case may be contained in the report to the mayor under article 6 must be decided by a two thirds majority of the members, or substitute members acting in their place, of the combined authority F5or CCA as the case may be, present and voting on the question at a meeting of the authority.

In paragraph (2) “relevant period” means the period of five working days beginning with the day after the date on which the period specified under article 7 expires.

Paragraph (7) applies in a case where the mayor has failed, in accordance with article 5(1), to notify the combined authority F6or CCA as the case may be of the mayor’s draft budget before 1st February.

Where this paragraph applies, the combined authority F7or CCA as the case may be must determine the relevant amounts and calculations that are to be used for the financial year.

Any decision under paragraph (7) must be decided by a two thirds majority of the members, or substitute members acting in their place, of the combined authority F8or CCA as the case may be present and voting on the question at a meeting of the authority.

Paragraphs (4) and (8) have effect subject to—

In paragraphs (4) and (8) “member” and “substitute member” does not include any person who is not a member of a constituent council.

In relation to the Tees Valley Combined Authority^f1, the reference in paragraphs (4) and (8) to a two thirds majority is to be read as a reference to a three fifths majority.

The relevant amounts and calculations which are approved by the combined authority F1or CCA as the case may be in accordance with article 8 shall be used in making a calculation (whether originally or by way of substitute)—

The provisions are—

The mayor must keep a fund (to be known as the mayor’s general fund) in relation to receipts arising, and liabilities incurred, in the exercise of the mayor’s general functions.

All of the mayor’s receipts in respect of the exercise of the mayor’s general functions must be paid into the mayor’s general fund.

All of the mayor’s expenditure in respect of the exercise of the mayor’s general functions must be paid out of the mayor’s general fund.

The mayor must keep accounts of payments made into or out of the mayor’s general fund.

Subject to article 13, the costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in the financial year commencing on 1st April 2017 are not to be met from precepts issued by the authority under section 40 of the 1992 Act (issue of precepts by major precepting authorities).

The costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in a financial year commencing on or after 1st April 2018 (“the relevant year”) are not to be met from precepts issued by the authority under section 40 of the 1992 Act if the first election of a mayor for the area of the combined authority occurs during the relevant year.

The costs of a mayor for the area of a combined authority that are incurred in, or in connection with, the exercise of mayoral functions in the financial year that immediately follows the relevant year are not to be met from precepts issued by the authority under section 40 of the 1992 Act if the first election of a mayor for the area of the combined authority occurs after 23rd January in the relevant year.

This article applies in relation to—

The costs of the mayor that are incurred in, or in connection with, the exercise of mayoral functions in the relevant year shall be met—

A billing authority that has been issued with a precept by the Police and Crime Commissioner for Greater Manchester in respect of the relevant year must, on and after 8th May 2017, pay to the mayor out of its collection fund^f3 the amounts owing in respect of that precept in accordance with the Local Authorities (Funds) (England) Regulations 1992^f4.

A billing authority that has been issued with a precept by the Greater Manchester Fire and Rescue Authority in respect of the relevant year must, on and after 8th May 2017, pay to the combined authority out of its collection fund the amounts owing in respect of that precept in accordance with the Local Authorities (Funds) (England) Regulations 1992.

A billing authority that is required to make payments out of its collection fund to the Greater Manchester Fire and Rescue Authority in respect of the relevant year must, on and after 8th May 2017 pay those amounts to the combined authority in accordance with the Non-Domestic Rating (Rates Retention) Regulations 2013^f5.

In paragraph (2)(b), “fire and rescue functions” means the functions conferred on the combined authority as a fire and rescue authority and exercisable by the Mayor in accordance with an order under sections 105A (other public authority functions) and 107D (functions of mayors: general) of the 2009 Act.

after subsection (3) there were inserted—

“(3A)

The calculation under subsections (2) and (3) above must be made separately in respect of the mayor’s PCC functions (“the PCC component”) and the mayor’s general functions (“the general component”).”

for subsection (4) there were substituted—

“(4)

If the aggregate calculated under subsection (2) above in respect of the PCC component exceeds that calculated under subsection (3) above in respect of the PCC component, the mayor must calculate the amount equal to the difference, and the amount so calculated is to be the authority’s PCC component council tax requirement for the year.

(4A)

If the aggregate calculated under subsection (2) above in respect of the general component exceeds that calculated under subsection (3) above in respect of the general component, the authority must calculate the amount equal to the difference, and the amount so calculated is to be its general component council tax requirement for the year.”

in subsection (1), in the definition of item R, for “section 42A(4) above as its council tax requirement” there were substituted “section 42A(4) or (4A) above as its PCC component council tax requirement or as its general component council tax requirement, as the case may be”;

after subsection (2) there were inserted—

“(2A)

The calculation under subsection (1) above must be made separately in respect of the authority’s PCC component council tax requirement in order to calculate its PCC component basic amount of council tax and in respect of its general component council tax requirement to calculate its general component basic amount of council tax.”

in paragraph (za) after “other than” there were inserted “a mayoral combined authority F1or a mayoral CCA or”;

after paragraph (aa) there were inserted—

“(ab)

in the case of a mayoral combined authority or a mayoral CCA—

(i)

the amount under section 42A(4) above as its PCC component council tax requirement, or any amount calculated under section 42B(1) above as its PCC component basic amount of council tax applicable to any dwelling, would exceed that calculated in the previous calculations;

(ii)

the amount under section 42A(4A) above as its general component council tax requirement, or any amount calculated under section 42B(1) above as its general component basic amount of council tax applicable to any dwelling, would exceed that calculated in the previous calculations.”

in regulation 2(1) (interpretation) there were inserted at the appropriate place the following definition—

• ““general component relevant basic amount of council tax” and “PCC component relevant basic amount of council tax” have the meaning given by section 52ZX of the 1992 Act;”

in regulation 3 (question to be asked in a referendum) after paragraph (3) there were inserted—

“(4)

Where a referendum is held in relation to a mayoral combined authority’s F1or a mayoral CCA’s PCC component relevant basic amount of council tax for a financial year, references to an authority’s relevant basic amount of council tax in Schedule 1 are to be interpreted as references to the authority’s PCC component relevant basic amount of council tax.

(5)

Where a referendum is held in relation to a mayoral combined authority’s or a mayoral CCA’s general component relevant basic amount of council tax for a financial year, references to an authority’s relevant basic amount of council tax in Schedule 1 are to be interpreted as references to the authority’s general component relevant basic amount of council tax.”

in regulation 5 (publicity and other information to be provided in connection with referendums by precepting authorities other than the Greater London authority—

after regulation 6 (publicity and other information to be provided in connection with referendums by the Greater London Authority) there were inserted—

“Publicity and other information to be provided in connection with referendums by a mayoral combined authorityF4or a mayoral CCA

6A.

(1)

This paragraph applies where a mayoral combined authority or a mayoral CCA has determined under section 52ZB(3) in relation to a financial year (“the relevant financial year”) that—

(a)

its PCC component or general component relevant basic amount of council tax is excessive; or

(b)

both of those components are excessive.

(2)

Where paragraph (1) applies, the authority must, as soon as is reasonably practicable, and not fewer than 28 days before the date on which the referendum will be held in accordance with sub-paragraph (c) below, publish in such a manner as it considers likely to bring to the attention of persons who live in the authority’s area, a notice which contains a statement—

(a)

that a referendum is required to be held on the authority’s council tax increase for the relevant financial year in accordance with Chapter 4ZA of Part 1 of the Local Government Finance Act 1992;

(b)

that arrangements to hold the referendum will be made by relevant billing authorities which are to be specified in the notice;

(c)

of the date on which the referendum will be held;

(d)

of the question to be asked in the referendum;

(e)

that the referendum will be conducted in accordance with procedures similar to those used at local government elections;

(f)

of the referendum expenses limit that will apply in relation to the referendum and the number of local government electors by reference to which that limit has been calculated;

(g)

of the authority’s PCC component relevant basic amount of council tax for the relevant financial year;

(h)

of the authority’s PCC component relevant basic amount of council tax for the financial year preceding the relevant financial year;

(i)

of the percentage change in the authority’s PCC component relevant basic amount of council tax from the preceding year to the relevant financial year expressed to one decimal place;

(j)

of what the amount calculated by the authority as its PCC component relevant basic amount of council tax for the relevant financial year would be if the authority’s relevant basic amount of council tax is not approved;

(k)

of what the percentage change in the authority’s PCC component relevant basic amount of council tax from the preceding financial year to the relevant financial year expressed to one decimal place would be if the authority’s relevant basic amount of council tax is not approved;

(l)

of the authority’s general component relevant basic amount of council tax for the relevant financial year;

(m)

of the authority’s general component relevant basic amount of council tax for the financial year preceding the relevant financial year;

(n)

of the percentage change in the authority’s general component relevant basic amount of council tax from the preceding financial year to the relevant financial year expressed to one decimal place;

(o)

of what the amount calculated by the authority as its general component relevant basic amount of council tax for the relevant financial year would be if the authority’s relevant basic amount of council tax is not approved;

(p)

of what the percentage change in the authority’s general component relevant basic amount of council tax from the preceding financial year to the relevant financial year expressed to one decimal place would be if the authority’s relevant basic amount of council tax is not approved;

(q)

that, not fewer than 28 days before the date on which the referendum will be held, the authority will publish a statement containing the matters referred to in regulation 7(3);

(r)

of the procedures for obtaining a copy of the statement referred to in sub-paragraph (q).

(3)

The notice published under paragraph (2) may also include—

(a)

any other factual information relating to the authority’s council tax or the referendum so far as it is presented fairly, or

(b)

details of the procedures for obtaining such other factual information.”