POLICE Citation, commencement and interpretation 1 1 This Order may be cited as the Police Grant (Scotland) Order 1997 and shall come into force on 1st April 1997. 2 In this Order, unless the context otherwise requires– “ the Act ” means the Police (Scotland) Act 1967; “authority” means– a police authority (not being a constituent authority); or where the police area is amalgamated with another, the joint police board for the relevant combined area; “financial year” means the period of 12 months commencing on 1st April; “police grant” means sums payable under section 32(1) of the Act towards relevant expenses; “prescribed sum” means the sum calculated in relation to an authority in accordance with article 4 of this Order; “relevant expenses” means expenses of authorities for the purposes of the Act, other than those expenses which are excluded by section 32(1) of the Act. Amount of police grant payable in respect of the financial year 1997/98 2 1 Subject to the provisions of this Order, the amount of police grant payable to an authority in respect of the financial year commencing on 1st April 1997 shall be whichever is the lesser of– a a sum equal to 51 per centum of the net amount of relevant expenses for that year incurred by the authority; and b the prescribed sum applicable to that authority in respect of that financial year. 2 Subject to the provisions of this Order, police grant payable by virtue of paragraph (1) above shall, unless an amalgamation scheme otherwise provides, be paid to the authority incurring the relevant expenses in respect of which the grant is made. Calculation of the net amount of the relevant expenses of an authority 3 For the purposes of article 2(1)(a) above, the net amount of the relevant expenses of an authority shall be calculated by deducting from the gross amount of such expenses incurred during the financial year commencing on 1st April 1997 any sums received or withheld by the authority under the following heads:– a receipts for the services of constables employed at the expense of any person other than an authority; b receipts for the services of constables lent to other police forces; c deductions from the pay of constables; d fees and fines due under any enactment to be credited to the Police Account; e receipts from the disposal by sale, lease or otherwise of Police Account assets; f any sums received in connection with the functions of the authority under section 95 of the Road Traffic Regulation Act 1984 ; and g receipts of any other description in connection with any of the authority’s functions relating to police, other than any sums paid to the authority by the Secretary of State by virtue of the Act. Calculation of the prescribed sum 4 1 For the purposes of article 2(1)(b) above, the prescribed sum (S) in pounds applicable to an authority in respect of the financial year commencing on 1st April 1997 is given by the formula– S = A + B + C - D. 2 In the formula specified in paragraph (1) above– A shall be calculated in accordance with Schedules 1 and 2 to this Order; B represents the sum equal to 51 per centum of the total amount of charges incurred by an authority in the financial year commencing on 1st April 1997 in respect of loans obtained, or arrangements for leasing of moveable property entered into, in connection with any of the authority’s functions relating to police; C represents the sum equal to 51 per centum of the total amount of capital expenditure on functions relating to the police which an authority has incurred in the financial year commencing on 1st April 1997 other than such expenditure funded by loans or from the proceeds of sale of a capital asset; D represents the total of any expenses recoverable by the Secretary of State from an authority in respect of the financial year commencing on 1st April 1997 by virtue of articles 2 and 3 of the Common Police Services (Scotland) Order 1997 . Timing and manner of payment of police grant 5 1 The police grant payable to an authority in terms of article 2 above shall be paid at the times and in the manner and subject to the requirements specified in this article. 2 The Secretary of State may make to an authority from time to time during the financial year commencing on 1st April 1997 payments on account of police grant payable to that authority in respect of that year of a sum not exceeding a sum equal to 97.5 per centum of an estimate of police grant payable to the authority in terms of article 2(1) above which the Secretary of State may make for the purposes of that year. 3 The balance of any police grant payable to an authority in terms of article 2(1), after payment of sums on account in terms of paragraph (2) above, shall be determined by the Secretary of State after 31st March 1998 after examination of such audited financial statements and such books, records, documents and accounts relating thereto as he may require an authority to submit to him. 4 Where following such examination as is mentioned in paragraph (3) above– a the Secretary of State determines that a balance of the sums payable in terms of article 2(1) above is due to be paid to an authority, he shall make payment of that balance to the authority; or b the Secretary of State determines that sums paid to an authority in terms of paragraph (2) above exceed the amount of police grant payable in terms of article 2(1) above, he shall recover that excess from the authority. Conditions 6 1 The payment of police grant in terms of article 2(1) above shall be conditional upon the Secretary of State being satisfied that– a the police area or combined area in question is efficiently policed; b the police force maintained under the Act for the police area or combined area is co-operating with other police forces; c the police force is efficiently and properly maintained, equipped and administered; and d the rates of pay and allowances of constables are paid in accordance with regulations in force from time to time under section 26 of the Act. 2 If the Secretary of State is not satisfied as to any matter mentioned in paragraph (1) above, he may withhold the police grant in whole or in part and either permanently or for such period as he may specify. Revocation and savings 7 1 Subject to paragraph (2) below, the Police Grant (Scotland) Order 1996 is hereby revoked. 2 Notwithstanding paragraph (1) above, the Police Grant (Scotland) Order 1996 shall continue to apply in relation to any sums payable under section 32(1) of the Act and that Order in respect of the financial year ending on 31st March 1996. James Douglas-Hamilton Minister of State, Scottish Office St Andrew’s House, Edinburgh 7th March 1997 We approve, Patrick McLoughlin Richard Ottaway Two of the Lords Commissioners of Her Majesty’s Treasury 11th March 1997