Article 10 Funding

(1)

The constituent councils must ensure that the costs of the Combined Authority reasonably attributable to the exercise of the functions mentioned in article 3 are met.

(2)

Subject to paragraph (4), the constituent councils must meet the costs of the expenditure reasonably incurred by the Mayor in, or in connection with, the exercise of the functions specified in article 3, to the extent that the Mayor has not decided to meet these costs from other resources available to the Combined Authority.

(3)

Any amount payable by each of the constituent councils to ensure that the costs of the Combined Authority referred to in paragraphs (1) and (2) are met is to be determined by apportioning the costs of the Combined Authority referred to in paragraph (1) between the constituent councils in such proportions as they may agree or, in default of such agreement, in the following shares between the constituent councils—

Darlington 15.80%
Hartlepool 14.67%
Middlesbrough 20.89%
Redcar and Cleveland 20.97%
Stockton-on-Tees 27.67%.

(4)

In relation to the expenditure mentioned in paragraph (2)—

(a)

to the extent to which such expenditure is met by amounts payable under arrangements made under paragraph (3)—

(i)

the Mayor must agree with the Combined Authority the total expenditure mentioned in paragraph (2) in advance of incurring this expenditure; and

(ii)

in the absence of the agreement specified in paragraph (i), no such expenditure may be incurred;

(b)

any precept issued in relation to such expenditure under section 40 of the Local Government Finance Act 1992 (issue of precepts by major precepting authorities)^f1 is to be disregarded from any calculation of the costs of the expenditure.

(5)

For the purposes of this article the relevant date in relation to a payment for a financial year is 30th June in the financial year which commenced two years prior to the financial year in which such payment is made.

Annotations

Footnotes

f1: c. 14. Section 40 was amended by section 83 of the 1999 Act, section 79 of, and paragraph 7 of Schedule 17 to, the Localism Act 2011 and section 5 of the 2016 Act.