Citation and commencement

1.  This Order may be cited as the London Regional Transport (Levy) Order 1987 and shall come into force on the day after it is made.

Interpretation

2.  In this Order-

"the 1984 Act" means the London Regional Transport Act 1984;

"the year 1987/8" means the period of twelve months beginning with 1st April 1987;

"the estimated grant" means the Secretary of State's estimated expenditure in the year 1987/8 on grants to London Regional Transport under section 12 of the 1984 Act;

"the ratepayer proportion" means the proportion of the estimated grants which it appears to the Secretary of State appropriate to recover from the ratepayers of Greater London;

"the estimated penny rate product of a rating area" means, in relation to the rating areas listed in the left hand column of the Schedule (which are the rating areas comprised in Greater London) an estimate of the amount, calculated as provided in section 12(4) of the General Rate Act 1967(2), which would be produced by a rate of a penny in the pound levied in the rating area in question and each such estimate (which has been transmitted to the Secretary of State pursuant to section 12(4) of that Act) is shown in the right hand column of the Schedule opposite the rating area to which it relates; and

"the estimated penny rate product of Greater London" means the total of the estimated penny rate products of the rating areas comprised in Greater London (shown at the bottom of the right hand column of the Schedule).

Amount in the pound

3.  The amount in the pound for the purpose of section 13(4) of the 1984 Act in respect of the year 1987/8 shall be 7·77 pence.

Factors taken into account

4.  The factors taken into account in determining the amount in the pound specified in article 3 are as follows-

(1) the estimated grant which is £239 million;

(2) the ratepayer proportion which is 65·63%; and

(3) the estimated penny rate product of Greater London which is £20,186,201.

Method of calculation

5.  The method of calculation employed in determining the amount in the pound specified in article 3 is as follows-

(1) the unrounded amount in the pound is obtained by the formula

and accordingly the calculation is-

(2) the unrounded amount in the pound is rounded to two places of decimals to give 7·77 pence.

Article 2

SCHEDULE

Explanatory Note

(This note is not part of the Order)

Section 13 of the London Regional Transport Act 1984 provides that the Secretary of State may, in respect of any year, make a levy on the rating authorities for all the rating areas in Greater London to recover a contribution from Greater London ratepayers towards his estimated expenditure in that year on grants to London Regional Transport, and for the purpose of raising the levy the Secretary of State may issue a demand for payments to the rating authorities. Such a demand shall require the rating authorities to levy as part, or as an additional item of the rate, a rate of an amount in the pound specified by Order in respect of the year to which the demand relates.

This Order specifies an amount of 7·77 pence in the pound in respect of the year 1987/8 (article 3). As required by section 13(7) of the London Regional Transport Act 1984 this Order sets out the factors taken into account (article 4) and the method of calculation employed (article 5) in determining the amount in the pound.