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 1987 and shall come into force on 27th February 1987. Interpretation 2 1 In this Order except where the context otherwise requires— “the abolished council” means the Greater London Council; “the 1985 Act ” means the Local Government Act 1985; “the 1980 Act ” means the Local Government, Planning and Land Act 1980 ; “direct capital receipts” means monies described in paragraph (2)(a); “disposal” means disposal by operation of law or otherwise; “education balances” means those transferred capital receipts which are not attributable to sums received by the abolished council from the disposal of land or other property or by way of repayment of grants and advances of a capital nature which remained unapplied immediately before 1st April 1986; “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; “reimbursable capital money” means capital money as defined in paragraph (2) which is 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; “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 a housing association is the mortgagor and the Residuary Body is the mortgagee; “the rating authorities” means the rating authorities in Greater London other than The Temples; “the Residuary Body” means the London Residuary Body; “transferred capital receipts” means monies described in paragraph (2)(b). 2 For the purposes of section 77 of the 1985 Act and this order, except article 9, “capital money” means— money received by the Residuary Body— which is attributable to the disposal of relevant land or other property by that Body; 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; and by way of repayments of grants and advances of a capital nature; and such amount of the monies vested in the Residuary Body on the abolition date by virtue of section 62 of the 1985 Act as equals the aggregate of— the net aggregate of those parts of the amounts shown as cash (whether credit or debit) in the accounts of the abolished council referred to in paragraph (3) for the financial year ended 31st March 1986, made up and balanced in accordance with regulation 6 of the Accounts and Audit Regulations 1983 , which are attributable to the functions of the abolished council as a local education authority; and the amount shown as cash in the abolished council’s Supplies Reserve Fund for that financial year. 3 The accounts referred to in paragraph (2)(b) are— a the Direct Labour Operation of the Architect’s Department Account; b the Inner London Education Authority Building and Equipment Renewal and Repair Fund; c the Insurance Fund; d the Insurance Reserve Fund; e the Mechanical and Electrical Engineering Maintenance Direct Labour Organisation Account; and f the Special No. 1 Precept Account. 4 Where the amount vested as mentioned in paragraph (2)(b) is less than the aggregate of the amounts shown as cash in the accounts of the abolished council for the financial year ended 31st March 1986 the Residuary Body shall be deemed for the purposes of this order to have had vested in it under section 62 such additional sum as makes that amount equal to that aggregate. PART II Interpretation 3 1 In this Part— “net capital residue” means the direct capital receipts of the Residuary Body in the financial year in question other than those receipts which are attributable to— a the disposal of relevant land or other property purchased by that Body; or b repayments of grants and advances of a capital nature in respect of— i grants or advances made by that Body; and ii grants or advances made to authorities to whom Part VIII of the 1980 Act applies or to the London Transport Executive, less the amount payable in that year by way of reimbursable capital money. 2 For the purposes of this Part, the population of the area of a rating authority shall be taken to be the number estimated by the Registrar General and certified by him to the Secretary of State by reference to the 30th June which falls 21 months before the beginning of the financial year in question. Additions to net capital receipts 4 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 1986 shall be treated as if they included an amount determined in accordance with the formula— SA T + YB Z where— S equals the population of the area of the rating authority in question; T equals the population of the area of all the rating authorities; A equals that part of the net capital residue for the financial year in question which does not consist of housing receipts; Y equals that part of the amount of prescribed expenditure first specified for that year in accordance with section 72(1) of the 1980 Act in relation to the rating authority in question which is referable to the Housing Investment Programme; Z equals the aggregate of those parts of the amounts of prescribed expenditure so specified in relation to each of the rating authorities which are referable to the Housing Investment Programme; and B equals that part of the net capital residue for that year which consists of housing receipts. 2 For the purposes of section 72(3) of the 1980 Act, each rating authority’s net capital receipts for the financial year ending 31st March 1987 shall be treated as if they included (in addition to any amount ascertained in accordance with paragraph (1)) an amount determined in accordance with the formula— SC T where— S and T have the same values as in paragraph (1) and C is an amount equal to that which, if the abolished council had been an authority to whom Part VIII of the 1980 Act applied, would have been regarded as capital receipts for the purposes of that Part of that Act; and immediately before 1st April 1986 remained unused for the purpose of authorising prescribed expenditure by that council, less the amount which would have been attributable to the functions of the abolished council as a local education authority. 3 For the purposes of section 72(3) of the 1980 Act, the net capital receipts of the Inner London Education Authority for the financial year ending 31st March 1987 shall be treated as if they included the amount last mentioned in paragraph (2). 4 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 Grant to The Trust for London 5 On or before 31st March 1987 the Residuary Body shall pay by way of grant to The Trust for London (an eligible charity for the purposes of section 49 of the 1985 Act) the sum of ten million pounds. Distribution of other capital money 6 1 In respect of each financial year commencing with the financial year beginning 1st April 1986 the Residuary Body shall pay to each rating authority an amount which shall be determined in accordance with the Schedule to this order. 2 The Residuary Body shall pay to the Inner London Education Authority— a the transferred capital receipts; and b an amount which shall be calculated by applying to the transferred capital receipts the rate agreed between the Residuary Body and the Authority on 28th April 1986 as if those receipts were an amount of principal and the rate were a weekly rate of interest in respect of the period beginning on 1st April 1986 and ending on the day on which the payment required by subparagraph (a) is made. PART IV Administrative arrangements—notifications 7 1 Subject to paragraph (2), on or before 30th June and on or before 31st December in each financial year beginning with the financial year commencing 1st April 1986 the Residuary Body shall notify each rating authority of its estimate and revised estimate, respectively, of— a the amounts of capital money to be received in the current and next succeeding financial years; b the amounts to be paid to that authority in those years in accordance with this order; c the amounts which, in accordance with article 4(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 Paragraph (1) shall apply to the financial year ending 31st March 1987 with the omission of any reference to 30th June and revised estimates and with the substitution of 28th February for 31st December. 3 On or before 28th February 1987 the Residuary Body shall notify each rating authority and the Inner London Education Authority of its estimate of the amount which, in accordance with article 4(2) and (3), respectively, is to be treated as included in the authority’s net capital receipts and of the classes of disposals and repayments to which that amount relates. 4 On or before 30th June in each financial year commencing with the financial year beginning 1st April 1987, the Residuary Body shall notify each rating authority of the amount determined for the preceding financial year in accordance with article 4(1) for that authority and on or before 30th June 1987 that Body shall notify each rating authority and the Inner London Education Authority of the amount determined in its case for the preceding financial year in accordance with article 4(2) and (3), respectively, together with an indication of the classes of disposals and repayments to which that amount relates. 5 At the same time as it notifies an authority of any of the matters referred to in paragraphs (1), (3) and (4) the Residuary Body shall send a copy of such notification to the Secretary of State. 6 For the purposes of paragraphs (1), (3) and (4), disposals and repayments shall be classified in accordance with Schedule 1 to the Local Government (Prescribed Expenditure) Regulations 1983 , Administrative arrangements—distribution of capital money 8 1 The payment required by article 6(2) shall be made no later than 28 days after the date upon which the accounts of the abolished council for the financial year ended 31st March 1986 are made up and balanced in accordance with regulation 6 of the Accounts and Audit Regulations 1983 or 14 days after this order comes into force, whichever is the later. 2 The Residuary Body shall notify the Inner London Education Authority of the amount of the parts of that payment which are referable to the education balances and to the amount referred to in article 6(2)(b) and shall send a copy of such notification to the Secretary of State. 3 Within seven days of making any payment in accordance with article 6(2), the Residuary Body shall notify the Secretary of State of the amount paid. 4 The Residuary Body shall use its best endeavours to secure that payments required by article 6(1) 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. 5 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. 6 On or before 1st July in each financial year commencing with the financial year beginning 1st April 1987 the Residuary Body shall notify the Secretary of State of the amounts paid in respect of the preceding financial year by virtue of article 6(1). Application of capital money 9 1 Subject to paragraph (2), money received by an authority by virtue of this order 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. 2 The education balances and the amount referred to in article 6(2)(b) shall be carried to the general fund kept by the Inner London Education Authority in accordance with section 72(1) of the 1985 Act. Nicholas Ridley, Secretary of State for the Environment 2nd February 1987