Explanatory note

These Regulations amend the rules for the estimation and apportionment of surpluses and deficits in Schedule 2 to the Local Authorities (Funds) (England) Regulations 1992 (‘the 1992 Regulations’) and insert a new regulation into the 1992 Regulations as a consequence of changes made by the Local Government Finance Act 2012 introducing council tax reduction schemes.

The Local Government Finance Act 2012 introduced provisions to allow billing authorities and major precepting authorities to agree variations to precept payments within a financial year where the billing authority estimates that there will be a deficit to the collection fund for that year as a result of a council tax reduction scheme. These Regulations ensure that any such variations are properly taken into account in the formulae for calculating how the surplus or deficit estimates are to be shared among or borne between a billing authority and its relevant major precepting authorities and ensure that billing authorities repay precept payment variations where there is no surplus or deficit in the collection fund at the point at which the surplus and deficit calculations are made.

An impact assessment has not been produced for this instrument as no impact on the private, or voluntary sectors is foreseen and the impact on the public sector is minimal.