Explanatory note

Sections 32 and 43 of the Local Government Finance Act 1992 (“the 1992 Act”) set out respectively how a billing authority and a major precepting authority are to calculate their budget requirements for the financial year. Sections 33 and 44 of that Act set out respectively how a billing authority and a major precepting authority are to calculate the basic amount of their council tax.

Regulations 2(a), 3, 4(a)(i) and 5(a) of these Regulations omit references to “relevant special grant” from sections 32, 33, 43 and 44 of the 1992 Act for the financial year beginning on 1 April 2006 since no special grants are being defined as relevant special grants for that financial year.

Regulations 2(b) and 4(b) insert for billing authorities and major precepting authorities in Wales definitions of sums payable in respect of redistributed non-domestic rates and revenue support grant in sections 32 and 43 of the 1992 Act for the financial year beginning on 1 April 2006 to ensure that the amounts of redistributed non-domestic rates and revenue support grant excluded from the budget requirement calculation in that section relate only to such amounts payable under the respective Local Government Finance Reports for the year 2006 — 2007. The same definitions also apply to sections 33 and 44 of the 1992 Act. Regulation 4(b) also inserts a definition of “floor funding” in section 43 by inserting a subsection (6F).

Regulations 4(a)(ii) and 5(b) further amend sections 43 and 44 of the 1992 Act, such that major precepting authorities in Wales must take into account any floor funding received from the Secretary of State for the financial year 2006-2007 when making the required calculations for that year.