LOCAL GOVERNMENT, ENGLAND AND WALES PART I Citation and commencement 1 This Order may be cited as the Local Government Reorganisation (Capital Money) (Greater London) Order 1988 and shall come into force on 1st April 1988. Interpretation 2 1 In this Order— “the abolished council” means the Greater London Council; “the 1980 Act ” means the Local Government, Planning and Land Act 1980 ; “the 1985 Act ” means the Local Government Act 1985; “the 1987 Order ” means the Local Government Reorganisation (Capital Money) (Greater London) Order 1987 ; “the closing accounts” means the accounts of the abolished council for the financial year ended 31st March 1986; “compensation payments” means any payment made under Part VI of the Employment Protection (Consolidation) Act 1978 , by section 1 of the Pensions (Increase) Act 1971 or by any order under section 2 of that Act or section 59 of the Social Security Pensions Act 1975 , the Local Government Reorganisation (Compensation) Regulations 1986 or the Local Government Reorganisation (Reduction of Redundancy Payments Cases) Scheme 1986 or made in satisfaction of contractual rights saved by section 53 of the 1985 Act, but excluding any part of any such payment which is recoverable from any person other than the recipient; and includes such administrative expenses of the Residuary Body as are properly attributable to such payments; “County Hall” means the buildings previously owned by the abolished council and known as the Main Building, the North Block, the South Block, the Island Block and the Addington Street Annexe, all ancillary service areas and car parks and the bridge which links the Island and South Blocks; “direct capital receipts” means such of the money described in paragraph (2)(a) below as remains after the deduction of any amount payable by the Residuary Body to the Exchequer or to the European Commission by virtue of the relevant land, other property, grant or advance having been financed either in whole or in part by grants from the Exchequer or the Commission; “disposal” means disposal by operation of law or otherwise; “housing advances” means sums advanced by the abolished council by way of loan for the purchase, construction, repair or improvement of dwellings; “housing assets” means relevant land held by the abolished council for the purposes of section 92 of the Housing Act 1957 ; “housing receipts” means those direct capital receipts which are attributable to the disposal of housing assets or the repayment of housing advances and grants for the purchase, construction, repair or improvement of dwellings; “other property” means any vehicle, vessel, movable and immovable plant, machinery and apparatus; “relevant land” means any land other than— land held as an investment of a superannuation fund maintained under regulations made under section 7 of the Superannuation Act 1972 ; and land in respect of which the Residuary Body is the mortgagee; “residual balances” means the money described in paragraph (2)(b) below; “the rating authorities” means the rating authorities in Greater London other than the Temples; “the Residuary Body” means the London Residuary Body. 2 For the purposes of section 77 of the 1985 Act and this Order, except article 8, “capital money” means— a money received by the Residuary Body— i which is attributable to the disposal of relevant land or other property by that Body; or ii which is attributable to amounts left outstanding in accordance with section 9 of the Housing Act 1980 in connection with the disposal of housing assets by the abolished council; or iii by way of repayments of grants and advances of a capital nature; b such amount of the money vested in the Residuary Body on the abolition date by virtue of section 62 of the 1985 Act as equals the aggregate of the amounts shown in the closing accounts as the abolished council’s revenue balances and funds, as adjusted to give effect to matters relevant to that aggregate which are recorded, in accordance with directions given by the Secretary of State under section 78 of that Act, in the accounts of that Body for the financial year ended 31st March 1987, less the aggregate of— i the part of that amount distributed by that Body before 1st April 1988 by virtue of section 77(4) of the 1985 Act or in accordance with the 1987 Order, or otherwise applied by that Body before that date; ii the part of that amount which is equal to the amount shown in the accounts of the Residuary Body for the financial year ended 31st March 1987 as attributable to the value of assets which vested on the abolition date in any person other than that Body; and iii the amount referred to in subparagraph (c); and c such amount of the money vested as mentioned in subparagraph (b) as equals the amount shown in the closing accounts as attributable to the Crystal Palace Fund maintained by the abolished council. 3 Where the amount vested as mentioned in paragraph (2)(b) is less than the aggregate of the amounts shown as revenue balances and funds in the closing accounts, the Residuary Body shall be deemed for the purposes of this Order to have had vested in it under section 62 such additional sums as makes that amount equal to that aggregate. PART II Additions to net capital receipts 3 1 For the purposes of section 72(3) of the 1980 Act, each rating authority’s net capital receipts for each financial year commencing with the financial year beginning 1st April 1988 shall be treated as if they included an amount which shall be determined in accordance with the formula mentioned in Part II of Schedule 1 to this Order. 2 Regulations under sections 72(3)(d) and 75 of the 1980 Act apply in relation to amounts to be included in the net capital receipts of any authority by virtue of this article as they apply to other receipts of the authority. PART III The Crystal Palace Fund 4 On or before 30th June 1988 the Residuary Body shall pay to the Council of the London Borough of Bromley the amount referred to in article 2(2)(c). Distribution of other capital money 5 1 On or before 31st March 1991 the Residuary Body shall pay to each rating authority and to the Temples an amount which shall be determined in accordance with Schedule 2. 2 In respect of each financial year commencing with the financial year beginning 1st April 1988 the Residuary Body shall pay to each rating authority an amount which shall be determined in accordance with Schedule 3. PART IV Administrative arrangements-notifications 6 1 On or before 31st October in each financial year commencing with the financial year beginning 1st April 1988 the Residuary Body shall notify each rating authority of its estimate of— a the amounts of capital money mentioned in article 2(2)(a), other than amounts attributable to the disposal of the whole or any part of County Hall, to be received in the current and next succeeding financial years; b the amount to be paid to that authority in those years in accordance with this Order; c the amounts which, in accordance with article 3(1), are to be treated as included in the authority’s net capital receipts for those years; and d the classes of disposals and repayments to which the amounts referred to in subparagraph (c) relate. 2 On or before 30th June in each financial year commencing with the financial year beginning 1st April 1989, the Residuary Body shall notify each rating authority of the amount determined for the preceding financial year in accordance with article 3(1) for that authority and shall indicate the classes of disposals and repayments to which that amount relates. 3 At the same time as it notifies an authority of any of the matters referred to in paragraphs (1) and (2) the Residuary Body shall send a copy of such notification to the Secretary of State. 4 For the purposes of paragraphs (1)(d) and (2), disposals and repayments shall be classified in accordance with Schedule 1 to the Local Government (Prescribed Expenditure) (Consolidation and Amendment) Regulations 1987 . Administrative arrangements-distribution of capital money 7 1 Within seven days of making any payment required by articles 4 or 5(1), the Residuary Body shall notify the Secretary of State of the amount paid. 2 The Residuary Body shall use its best endeavours to secure that payments required by article 5(2) are made on or before the last day of the financial year in question. Any part of a payment not so made (“the residual amount”) shall be paid no later than 30th June in the next financial year. 3 Residual amounts shall be deemed to vest in the rating authority entitled to them on the last day of the financial year in question and shall thereafter be regarded as interest-free loans to the Residuary Body by the relevant rating authorities. 4 On or before 1st July in each financial year commencing with the financial year beginning 1st April 1989 the Residuary Body shall notify the Secretary of State of the amounts paid in respect of the preceding financial year by virtue of article 5(2). Application of capital money 8 1 The amount referred to in article 4 shall be carried to the Crystal Palace Fund maintained by the Council of the London Borough of Bromley. 2 Money received by a rating authority by virtue of article 5(2) shall be applied for any purpose for which capital money received by a local authority on the disposal of land under Part VII of the Local Government Act 1972 may properly be applied. PART V Revocation and savings 9 1 Subject to paragraphs (2) to (4), the 1987 Order is hereby revoked. 2 Paragraphs (4) and (5) of article 7 of the 1987 Order shall continue to have effect in their application to amounts determined by the Residuary Body for the financial year ended 31st March 1988; and for the purposes of the said paragraph (4), disposals and repayments shall be classified in accordance with Schedule 1 to the Local Government (Prescribed Expenditure) (Consolidation and Amendment) Regulations 1987. 3 Paragraphs (4) to (6) of article 8 and paragraph (1) of article 9 of the 1987 Order shall continue to have effect in their application to residual amounts required to be paid by the Residuary Body and money received by a rating authority, respectively, for the financial year ended 31st March 1988. 4 Paragraphs (2) and (3) shall cease to have effect on 2nd July 1988. Nicholas Ridley Secretary of State for the Environment 2nd March 1988