Section 43: Calculation of budget requirement by authorities in Wales., Local Government Finance Act 1992

In relation to each financial year a major precepting authority in Wales shall make the calculations required by this section.

The authority must calculate the aggregate of—

the expenditure the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year ...;

the expenditure that the authority estimates it will incur in the year in making repayments of—

grant paid to it by the Secretary of State or the Welsh Ministers, or

amounts paid to it by the Welsh Ministers in respect of redistributed non-domestic rates;

such allowance as the authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure; and

such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

The authority must calculate the aggregate of—

the sums which it estimates will be payable to it for the year and in respect of which amounts will be credited to a revenue account for the year, other than sums which it estimates will be so payable

the sums that it estimates will be payable to it for an earlier financial year in respect of—

redistributed non-domestic rates,

revenue support grant,

additional grant,

floor funding, or

police grant;

in respect of redistributed non-domestic rates, revenue support grant, additional grant, special grant, floor funding or police grant; or

in respect of any precept issued by it; ...

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the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) and (b) of subsection (2) above.

If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated shall be its budget requirement for the year.

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For the purposes of subsection (2)(c) above an authority's estimated future expenditure is—

that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely, sums—

which will be payable to it for the year; and

in respect of which amounts will be credited to a revenue account for the year; and

that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

In this section and section 44 below "police grant", in relation to a major precepting authority and a financial year, means the total amount of grant payable to the authority in accordance with the police grant report for that year.

In subsection (6A) above "police grant report" means a police grant report approved by a resolution of the House of Commons pursuant to section 46 of the Police Act 1996.

In this section and section 44—

references to sums payable for a financial year in respect of floor funding are to sums that are payable by the Secretary of State in the year to a major precepting authority in addition to the police grant referred to in subsection (6A), and

references to sums payable for a financial year in respect of—

redistributed non-domestic rates,

revenue support grant,

additional grant, or

special grant,

are to be construed in accordance with section 32(12).

The Welsh Ministers may by regulations do one or both of the following—

alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items);

alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsection (6), or by adding other provisions, or by a combination of those methods).

A statutory instrument containing regulations under subsection (7) is subject to annulment in pursuance of a resolution of Senedd Cymru.

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Section 43: Calculation of budget requirement by authorities in Wales.

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