
PART I
1 
This Order may be cited as the Local Government Reorganisation (Capital Money) (Greater London) Order 1989 and shall come into force on 1st April 1989.
2 

(1) In this Order –
 “the abolished council” means the Greater London Council;
 “the 1980 Act” means the Local Government, Planning and Land Act 1980;
 “the 1985 Act” means the Local Government Act 1985;
 “the 1988 Order” means the Local Government Reorganisation (Capital Money) (Greater London) Order 1988;
 “capitalised subsidies” means the money described in paragraph (2)(b) below;
 “compensation payments” means any payment made under Part VI of the Employment Protection (Consolidation) Act 1978, by section 1 of the Pensions (Increase) Act 1971 or by any order under section 2 of that Act or section 59 of the Social Security Pensions Act 1975, the Local Government Reorganisation (Compensation) Regulations 1986 or the Local Government Reorganisation (Reduction of Redundancy Payments Cases) Scheme 1986 or made in satisfaction of contractual rights saved by section 53 of the 1985 Act, but excluding any part of any such payment which is recoverable from any person other than the recipient; and includes such administrative expenses of the Residuary Body as are properly attributable to such payments;
 “County Hall” means the buildings previously owned by the abolished council and known as the Main Building, the North Block, the South Block, the Island Block and the Addington Street Annexe, all ancillary service areas and car parks and the bridge which links the Island and South Blocks;
 “direct capital receipts” means the money described in paragraph (2)(a) below;
 “disposal” means disposal by operation of law or otherwise;
 “other property” means any vehicle, vessel, movable and immovable plant, machinery and apparatus;
 “relevant land” means any land other than –
(a) land held as an investment of a superannuation fund maintained under regulations made under section 7 of the Superannuation Act 1972; and
(b) land in respect of which 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.
(2) For the purposes of section 77 of the 1985 Act and this Order, except article 8, “capital money” means –
(a) money received by the Residuary Body which is attributable to the disposal of relevant land or other property by that Body;
(b) such amount of any money paid by the Secretary of State to the Residuary Body pursuant to section 64(2) (commutation of housing payments) of the 1985 Act as is –
(i) attributable to any entitlement of the abolished council by virtue of section 245 (contributions towards environmental works in housing action areas), section 259 (contributions towards works, etc. in general improvement areas) or section 516 (contributions towards grants for works of improvement, repair and conversion) of the Housing Act 1985 or Schedule 19 to that Act (contributions under section 36 of the Housing (Financial Provisions) Act 1958 and section 16 of the Housing Act 1969); and
(ii) referable to the financial year beginning 1st April 1989 or any subsequent year; and
(c) an amount of the Residuary Body’s revenue balances equal to the amount specified in article 3(1).
PART II
3 

(1) On 3rd April 1989 the Residuary Body shall set aside from its revenue balances the sum of £1,105,188.
(2) On 4th April 1989 the Residuary Body shall pay that sum to the Inner London Education Authority.
4 

(1) On or before 31st March 1990 the Residuary Body shall pay to each rating authority an amount which shall be determined in accordance with Schedule 1 to this Order.
(2) In respect of each financial year commencing with the financial year beginning 1st April 1989 the Residuary Body shall pay to each rating authority an amount which shall be determined in accordance with Schedule 2.
PART III
5 

(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 1989 shall be treated as if they included 30% of the amount of distributable capital money paid to, or deemed to have vested in, that authority in that year.
(2) For the purposes of paragraph (1), “distributable capital money” shall be construed in accordance with paragraph 1 of Schedule 2.
PART IV
6 

(1) On or before 31st October in each financial year commencing with the financial year beginning 1st April 1989 the Residuary Body shall notify each rating authority of its estimate of –
(a) the amounts of direct capital receipts, other than amounts attributable to the disposal of the whole or any part of County Hall, to be received in the current and next succeeding financial years; and
(b) the amount to be paid to that authority in those years in accordance with article 4(2) of this Order.
(2) At the same time as it notifies an authority of either of the matters referred to in paragraph (1) the Residuary Body shall send a copy of such notification to the Secretary of State.
7 

(1) Within seven days of making any payment required by article 4(1) or (2), the Residuary Body shall notify the Secretary of State of the amount paid.
(2) The Residuary Body shall use its best endeavours to secure that payments required by article 4(2) 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.
(3) 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.
8 

(1) The sum referred to in article 3 shall be carried to the general fund kept by the Inner London Education Authority in accordance with section 72(1) of the 1985 Act.
(2) Money received by a rating authority by virtue of article 4(1) shall be applied for the repayment of money borrowed by the authority (but not to make any annual payment which the authority is required to make in respect of such money).
(3) Money received by a rating authority by virtue of article 4(2) 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.
PART V
9 

(1) Subject to paragraphs (2) to (4), the 1988 Order is hereby revoked.
(2) Paragraphs (2) and (3) of article 6 of the 1988 Order shall continue to have effect in their application to amounts determined by the Residuary Body for the financial year ended 31st March 1989.
(3) Paragraphs (2) to (4) of article 7 and paragraph (2) of article 8 of the 1988 Order shall continue to have effect in their application to residual amounts required to be paid by the Residuary Body and money received by a rating authority, respectively, for the financial year ended 31st March 1989.
(4) Paragraphs (2) and (3) of this article shall cease to have effect on 2nd July 1989.
Nicholas Ridley
Secretary of State for the Environment
24th February 1989
SCHEDULE 1
Article 4(1)
1 
The amount to be distributed to each rating authority shall be determined by applying the formula –ABCwhere –
 A is an amount equal to the amount of capitalised subsidies received by the Residuary Body in the financial year ending 31st March 1990;
 B equals the population of the area of the rating authority in question; and
 C equals the population of the area of all the rating authorities. 
2 
For the purposes of paragraph 1 the population of an area shall be taken to be the number estimated by the Registrar General and certified by him to the Secretary of State by reference to 30th June 1984.
SCHEDULE 2
Article 4(2)
PART I
1 
In this Schedule –
“distributable capital money” means the direct capital receipts of the Residuary Body in the financial year in question less the amount of such receipts –
(a) applied by that Body in that year –
(i) by way of advances of a capital nature;
(ii) by way of payments to Thamesmead Town in accordance with the provisions of an agreement dated 27th July 1987 and made between that Body and Thamesmead Town;
(iii) in facilitating the disposal of other property and relevant land;
(iv) in making compensation payments;
(v) in making repayments of grants (other than rate support grant) or subsidy to the Exchequer or to the European Commission;
(b) which is attributable to the disposal of the whole or any part of County Hall,except that, in respect of the financial year ending 31st March 1990, the direct capital receipts for that year shall be treated as augmented by the sum of £40,933,000.
2 
The reference in paragraph 1(a)(iii) to facilitating the disposal of property includes a reference to receipts applied in maintaining, managing and improving the property save that, in the case of relevant land which includes or comprises a building or other structure, it includes the application of such receipts only so far as is attributable to wholly unoccupied property or the unoccupied part of partially occupied property.
3 
For the purposes of this Schedule, 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.
PART II
4 
Subject to paragraph 5, the amount to be distributed to each rating authority shall be determined by applying the formula –RSTwhere –
 R is an amount equal to the distributable capital money for the financial year in question;
 S equals the population of the area of the rating authority in question; and
 T equals the population of the area of all the rating authorities. 
5 
In respect of the financial year ending 31st March 1990 the formula specified in paragraph 4 shall apply only to so much of the distributable capital money for that year as exceeds £10 millions; and the sum of £10 millions shall be apportioned among the councils of the inner London boroughs in accordance with Schedule 3.
SCHEDULE 3
Schedule 2


London Borough Council Apportionment (%)
Camden 7.2
Greenwich 12.2
Hackney 8.2
Hammersmith and Fulham 5.7
Islington 7.4
Kensington and Chelsea 3.7
Lambeth 9.2
Lewisham 10.8
Southwark 10.2
Tower Hamlets 9.8
Wandsworth 9.8
Westminster 5.8