Local Government Finance Act 1988
|Long title||An Act to create community charges in favour of certain authorities, to create new rating systems, to provide for precepting by certain authorities and levying by certain bodies, to make provision about the payment of grants to certain authorities, to require certain authorities to maintain certain funds, to make provision about the capital expenditure and the administration of the financial affairs of certain authorities, to abolish existing rates, precepts and similar rights, to abolish rate support grants and supplementary grants for transport purposes, to make amendments as to rates and certain grants, to make certain amendments to the law of Scotland as regards community charges, rating and valuation, to provide for the establishment of valuation and community charge tribunals, and for connected purposes.|
|Citation||1988 Chapter 41|
|Territorial extent||UK, except Northern Ireland|
|Royal assent||29 July 1988|
|Commencement||1 April 1989|
|Text of statute as originally enacted|
|Revised text of statute as amended|
The Local Government Finance Act 1988 introduced significant reforms to local taxation in the United Kingdom (except Northern Ireland). The old systems of rates were replaced by the Community Charge (for individuals) and business rates (for businesses). The Community Charge was extremely unpopular, leading to the poll tax riots of 1990, and contributing to the resignation of Margaret Thatcher as Prime Minister later that year.
A Section 114 Notice is issued by a public body's Chief Finance Officer (or Section 151 officer) to prevent any new expenditure, other than funding statutory services. It takes its name from Section 114(3) of the act. Section 114 notices have been issued by Hackney Council in 2000, Northamptonshire Council twice in 2018, Croydon Council in 2020 and Slough Council in 2021.
- "1990: Violence flares in poll tax demonstration". On This Day. BBC News. Retrieved 13 December 2020.
- "1991: Heseltine unveils new property tax". On This Day. BBC News. Retrieved 13 December 2020.
- "Local Government Finance Act 1988: Section 114", legislation.gov.uk, The National Archives, 1988 c. 41 (s. 114), retrieved 27 November 2021
- Statement of the Chief Financial Officer on Reserves, Robustness of Estimates and Affordability and Prudence of Capital Investments (PDF) (Report). Oldham Council. 26 February 2020. p. 28. Retrieved 27 November 2021.
- Brady, Dominic (24 July 2018). "Northamptonshire issues second section 114 notice". Public Finance. Retrieved 13 April 2022.
- "Croydon Council bans new spending under Section 114 notice". BBC News. 11 November 2020. Retrieved 27 November 2021.
- Local authority financial sustainability and the section 114 regime (pdf) (Report). Vol. 2. Housing, Communities and Local Government Committee. 14 July 2021. p. 31.
- Text of the Local Government Finance Act 1988 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.