Explanatory note

These Regulations apply where the Secretary of State is liable under the Local Government Finance Act 1988 (“the Act”) to make payments to a charging authority, and the charging authority, or a precepting authority which precepts on that charging authority (“an appropriate precepting authority”), is at the same time liable under the Act to make payments to the Secretary of State.

Part I of the Regulations applies to payments liable to be made under the provisions referred to in section 141(7) to (9) of the Act. It provides that where the Secretary of State and a charging authority are liable at the same time to make payments to each other under these provisions, the payer may set off against the amount he pays the amount which is liable to be paid to him.

Part II of these Regulations applies to payments liable to be made under the provisions referred to in section 141B(7) and (8) of the Act. It provides that where the Secretary of State and an appropriate precepting authority are each liable at the same time to make payments under those provisions, the Secretary of State may set off against the amount he pays the charging authority the amount which the appropriate precepting authority is liable to pay to him. The charging authority will recover from the appropriate precepting authority, either by payment by the precepting authority or by deduction from the amount payable to the precepting authority in respect of a precept, the amount set off.