18.This section modifies section 14 of the 2024 Act to make provision (in new subsections (3A) and (3B)) about when a significant modification of a VL scheme can take effect.
19.New subsection (3A) deals with a significant modification made after a VL scheme is in force. If the modification expands the scheme area or removes from the scheme any cases or circumstances in which the levy (or an equivalent sum) is not payable or may be reimbursed, the date on which the modification of the scheme is to take effect must be at least 18 months after the date on which the local authority publishes a report under section 13(1)(c) of the 2024 Act stating that it intends to proceed with the modification. This just restates the existing requirement for such modifications. For modifications that increase the percentage rate for, or the fixed amount of, the levy or changes the basis on which the levy is charged from a percentage rate to a fixed amount (or vice versa), the corresponding minimum period between the publication of a report under section 13(1)(c) of the 2024 Act and the modification taking effect is 6 months (rather than 18 months).
20.New subsection (3B) deals with a significant modification made to a VL scheme that is not yet in force. The date on which any such modification is to take effect must be at least 18 months after the date on which the local authority publishes a report under section 13(1)(c) of the 2024 Act stating that it intends to proceed with the modification.
21.These changes to section 14 of the 2024 Act relate only to significant modifications of a VL scheme as defined by section 14(4) of that Act. Any other modification of a VL scheme may come into force on a date specified after the local authority publishes a report under section 13(1)(c) stating that it intends to proceed with the modification (see section 14(5) of the 2024 Act). But see also the notes (below) on the transitional provisions in sections 7 and 8 of the 2026 Act.
The Act Significant modification of VL scheme: adjusted implementation periods Section 3 - Significant modification of VL scheme: adjusted implementation periods