Explanatory note

The Local Government Changes for England (Collection Fund Surpluses and Deficits) Regulations 1995 (“the principal Regulations”) make consequential and transitional provisions in relation to the surplus or deficit in the collection fund of a billing authority where that authority, or a major precepting authority in relation to that authority, is subject to a reorganisation order made under section 17 of the Local Government Act 1992.

Regulation 2 substitutes a new paragraph (2) in regulation 3 of the principal Regulations (which modifies the Local Authorities (Funds) (England) Regulations 1992 (S.I. 1992/2428)) to provide that what is to be excluded from the calculation of the estimate of the surplus or deficit in the collection fund for the first year of reorganisation and subsequent years is a billing authority’s share in its own collection fund, as calculated under regulations 4, 5, 6 or 7 of the principal Regulations.

Regulation 3 substitutes a new definition of “final surplus or deficit” which appears in regulation 5(1)(b) of the principal Regulations and is also used in regulation 7 of those Regulations, in order to provide that the final surplus or deficit is calculated in the same way as the estimated surplus or deficit.