Local receipts and taxes

36.17The rules of financial procedure do not apply to the receipts of local authorities, when they form the subject of legislation, unless, of course, they are in the form of grants from the Consolidated Fund. Provisions in bills dealing with local loans do not require authorisation by Ways and Means resolution; nor do bills empowering local authorities to levy charges, rates or taxes, even if the proceeds of a charge collected by a local authority are distributed to other public authorities.1 Likewise, Ways and Means authorisation was not required for provisions giving power to require applications for licences to be accompanied by a fee, payable to local authorities in their capacity as licensing authorities and not paid into the Consolidated Fund, even though the power was conferred on, and the level of fees was determined by, the Secretary of State.2 On the other hand, because some of the proceeds of non-domestic rates pass through the Consolidated Fund, the imposition of a liability to such rates requires Ways and Means authorisation.3


  1. 1. Violent Crime Reduction Bill (2005–06).
  2. 2. Licensing Bill [Lords] (2002–03).
  3. 3. See ss 54 and 148 of, and sch 7B to, the Local Government Finance Act 1988 and Caldey Island Bill [Ways and Means], CJ (1989–90) 472. See also Local Government Finance Bill [Ways and Means], ibid (1987–88) 459 (authorising the payment of sums to the Secretary of State in respect of non-domestic rating and the payment of those sums into the Consolidated Fund); and Local Government and Rating Bill [Ways and Means], ibid (1996–97) 31 (authorising any increase in the sums payable into the Consolidated Fund resulting from the imposition of liability for non-domestic rates on the Crown).