Explanatory note

This Order gives effect to proposals submitted by the London Residuary Body (“the LRB”) under the Education Reform Act 1988 for the transfer to the council of the Royal Borough of Kensington and Chelsea (“Kensington and Chelsea”) of property, rights and liabilities.

Article 2 provides for the transfer to Kensington and Chelsea of the LRB’s rights and liabilities in relation to the Rates and Precepts (Final Adjustments) Order 1991 and of monies previously set aside from inner London revenue balances which the LRB could only use to defray expenditure in respect of those rights and liabilities. All other monies representing the LRB’s inner London revenue and capital accounts are also transferred to Kensington and Chelsea.

Article 3 amends the Local Government (Capital Money) (Greater London) Order 1991 by providing for a distribution to the councils of the outer London boroughs and to Kensington and Chelsea of money specified as capital money for the purposes of section 77 of the Local Government Act 1985.

Article 4 amends article 13 of the Education (London Residuary Body) (Transfer of Functions and Property) (No.2) Order 1992 (which provides for the apportionment of monies vested in Kensington and Chelsea and of expenditure which cannot be met from those monies) by inserting references to monies received by Kensington and Chelsea in consequence of this Order and by providing for apportionments to be made in proportions referable to the council tax bases of the authorities concerned instead of the previous population base.