# The Rate Limitation (Designation of Authorities) (Exemption) Order 1987, Note: Explanatory note


(This note is not part of the Order)
Section 2(1) of the Rates Act 1984 provides that an authority in whose case a maximum rate or precept is to be prescribed in any financial year is to be designated by the Secretary of State in the preceding financial year.
Section 2(2)(a) of the Act exempts an authority from designation in any financial year if its total expenditure for that financial year does not appear to the Secretary of State to be likely to exceed its grant-related expenditure, or £11.1 million, whichever is the greater.
Section 2(3) of the Act provides that, if the total of relevant expenditure (as estimated for the purposes of the Rate Support Grant Report for each financial year) changes from one year to the next, the Secretary of State shall substitute for the amount for the time being specified in section 2(2)(a) of the Act a proportionately greater or smaller amount, rounded to the nearest hundred thousand pounds.
The total of relevant expenditure for local authorities in England, as estimated for the purposes of the Rate Support Grant Report (England) 1987/88, is 9.542% greater than the corresponding figure estimated for the purposes of the Rate Support Grant Report (England) 1986/87.
This order, which applies to England only, substitutes an amount of £12.2 million for the amount of £11.1 million currently specified. It comes into force on 29th May 1987.

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Source: https://www.legislation.gov.uk/uksi/1987/785/note (the official version)
Page: https://openlegislation.uk/rate-limitation-designation-of-authorities-exemption-order-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.