Commentary on Sections Sections 26 to 28 – de-rating grant and rates support grant
Section 26 sets out the statutory formula for determining the amount of de-rating grant payable to councils.
Section 27 provides for the amount of rates support grant to be calculated in accordance with a formula prescribed in regulations subject to approval by a resolution of the Assembly. Provision has been made to ensure that once the amount of the rates support grant payable to a council for any financial year has been determined, it shall not be reduced during that financial year.
Under section 28, the Department retains its powers to reduce the amount payable to a council by way of the de-rating or rates support grants for a financial year in certain circumstances. This arises only in cases where a local government auditor’s report identifies that a council has failed to achieve or maintain a reasonable standard of economy, efficiency or effectiveness, or has spent excessively in relation to its financial resources or other relevant factors. The requirement for approval from the Assembly before any reduction proposed by the Department can take effect has been retained.