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(5) After paragraph 5 insert—

“Limit on Assembly’s powers to amend Mayor’s draft budget for the Assembly

5A (1) In exercising its powers of amendment under paragraph 5(3) above, the Assembly must not make amendments affecting the amount of the draft component budget requirement for the Assembly if those amendments, taken together, contravene sub-paragraph (2) below.

(2) Amendments contravene this sub-paragraph if—

(a) the effect of implementing the amendments is to increase the amount of the draft component budget requirement for the Assembly, and

(b) the condition in sub-paragraph (3) below is met.

(3) The condition is that—

(a) the draft component budget requirement for the Assembly, after implementing the amendments,

exceeds

(b) the adjusted previous component budget requirement for the Assembly.

(4) Find the adjusted previous component budget requirement for the Assembly as follows.

(5) Find NM and OM, where—

• NM is the draft component budget requirement for the Mayor, before implementing any amendments under paragraph 5(3) above;

• OM is the component budget requirement for the Mayor for the previous financial year.

(6) If NM is greater than OM—

(a) find the percentage by which NM is greater than OM, and

(b) increase the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(7) If NM is less than OM—

(a) find the percentage by which NM is less than OM, and

(b) reduce the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(8) If NM equals OM, then—

(a) the adjusted previous component budget requirement for the Assembly,

equals

(b) the amount of the component budget requirement for the Assembly for the previous financial year.

(9) The Authority’s chief finance officer may direct that such amounts as he may specify in the direction are to be left out of account for the purpose of determining the adjusted previous component budget requirement for the Assembly.

(10) The Secretary of State may give the chief finance officer guidance with respect to the exercise of the power to give a direction under sub-paragraph (9) above.

(11) The chief finance officer must have regard to any such guidance.

(12) For the purposes of this Schedule the “draft component budget requirement” for any constituent body is the component budget requirement for the body as stated in the draft component budget for the body.”.

(6) In paragraph 8 (approval of Mayor’s draft budget by Assembly) in sub-paragraph (3) (Assembly to approve final draft budget with or without amendment) after “with or without amendment” insert “(but see paragraph 8A below)”.

(7) After paragraph 8 insert—

“Limit on Assembly’s power to amend Mayor’s final draft budget for the Assembly

8A (1) In exercising its powers of amendment under paragraph 8 above, the Assembly must not make amendments affecting the amount of the final draft component budget requirement for the Assembly if those amendments, taken together, contravene sub-paragraph (2) below.

(2) Amendments contravene this sub-paragraph if—

(a) the effect of implementing the amendments is to increase the amount of the final draft component budget requirement for the Assembly, and

(b) the condition in sub-paragraph (3) below is met.

(3) The condition is that—

(a) the final draft component budget requirement for the Assembly, after implementing the amendments,

exceeds

(b) the adjusted previous component budget requirement for the Assembly.

(4) Find the adjusted previous component budget requirement for the Assembly as follows.

(5) Find NM and OM, where—

• NM is the final draft component budget requirement for the Mayor, before implementing any amendments under paragraph 8(3) above;

• OM is the component budget requirement for the Mayor for the previous financial year.

(6) If NM is greater than OM—

(a) find the percentage by which NM is greater than OM, and

(b) increase the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(7) If NM is less than OM—

(a) find the percentage by which NM is less than OM, and

(b) reduce the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(8) If NM equals OM, then—

(a) the adjusted previous component budget requirement for the Assembly,

equals

(b) the amount of the component budget requirement for the Assembly for the previous financial year.

(9) Sub-paragraphs (9) to (11) of paragraph 5A above (power of chief finance officer to direct amounts to be left out of account) also have effect for the purposes of this paragraph.

(10) For the purposes of this Schedule the “final draft component budget requirement” for any constituent body is the component budget requirement for the body as stated in the final draft budget.”.

14 Substitute calculations

(1) Schedule 7 to the GLA Act 1999 (procedure for making of substitute calculations by the Authority) is amended as follows.

(2) After paragraph 4 (Assembly consideration of Mayor’s first draft) insert—

“Limit on Assembly’s powers to amend Mayor’s first draft budget for the Assembly

4A (1) In exercising its powers of amendment under paragraph 4(3) above, the Assembly must not make amendments affecting the amount of the first draft component budget requirement for the Assembly if those amendments, taken together, contravene sub-paragraph (2) below.

(2) Amendments contravene this sub-paragraph if—

(a) the effect of implementing the amendments is to increase the amount of the first draft component budget requirement for the Assembly, and

(b) the condition in sub-paragraph (3) below is met.

(3) The condition is that—

(a) the first draft component budget requirement for the Assembly, after implementing the amendments,

exceeds

(b) the adjusted previous component budget requirement for the Assembly (see sub-paragraph (5)).

(4) This paragraph is without prejudice to section 49(2) of the Local Government Finance Act 1992 (substitute amount not to exceed previous amount (but see section 49(6) of that Act)).

(5) Find the adjusted previous component budget requirement for the Assembly as follows.

(6) Find NM and OM, where—

• NM is the first draft component budget requirement for the Mayor, before implementing any amendments under paragraph 4(3) above;

• OM is the component budget requirement for the Mayor for the previous financial year.

(7) If NM is greater than OM—

(a) find the percentage by which NM is greater than OM, and

(b) increase the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(8) If NM is less than OM—

(a) find the percentage by which NM is less than OM, and

(b) reduce the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(9) If NM equals OM, then—

(a) the adjusted previous component budget requirement for the Assembly,

equals

(b) the amount of the component budget requirement for the Assembly for the previous financial year.

(10) Sub-paragraphs (9) to (11) of paragraph 5A of Schedule 6 to this Act (power of chief finance officer to direct amounts to be left out of account) also have effect for the purposes of this paragraph.

(11) For the purposes of this Schedule—

(a) “component budget” has the same meaning as in Schedule 6 to this Act;

(b) the “first draft component budget” for any constituent body is the draft component budget for that body comprised in the first draft;

(c) the “first draft component budget requirement” for any constituent body is the component budget requirement for the body as stated in the first draft component budget for the body.”.

(3) After paragraph 7 (approval of Mayor’s final draft by Assembly) insert—

“Limit on Assembly’s power to amend Mayor’s final draft budget for the Assembly

7A (1) In exercising its powers of amendment under paragraph 7 above, the Assembly must not make amendments affecting the amount of the final draft component budget requirement for the Assembly if those amendments, taken together, contravene sub-paragraph (2) below.

(2) Amendments contravene this sub-paragraph if—

(a) the effect of implementing the amendments is to increase the amount of the final draft component budget requirement for the Assembly, and

(b) the condition in sub-paragraph (3) below is met.

(3) The condition is that—

(a) the final draft component budget requirement for the Assembly, after implementing the amendments,

exceeds

(b) the adjusted previous component budget requirement for the Assembly (see sub-paragraph (5)).

(4) This paragraph is without prejudice to section 49(2) of the Local Government Finance Act 1992 (substitute amount not to exceed previous amount (but see section 49(6) of that Act)).

(5) Find the adjusted previous component budget requirement for the Assembly as follows.

(6) Find NM and OM, where—

• NM is the final draft component budget requirement for the Mayor, before implementing any amendments under paragraph 7(3) above;

• OM is the component budget requirement for the Mayor for the previous financial year.

(7) If NM is greater than OM—

(a) find the percentage by which NM is greater than OM, and

(b) increase the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(8) If NM is less than OM—

(a) find the percentage by which NM is less than OM, and

(b) reduce the amount of the component budget requirement for the Assembly for the previous financial year by the same percentage.

The result is the adjusted previous component budget requirement for the Assembly.

(9) If NM equals OM, then—

(a) the adjusted previous component budget requirement for the Assembly,

equals

(b) the amount of the component budget requirement for the Assembly for the previous financial year.

(10) Sub-paragraphs (9) to (11) of paragraph 5A of Schedule 6 to this Act (power of chief finance officer to direct amounts to be left out of account) also have effect for the purposes of this paragraph.

(11) For the purposes of this Schedule the “final draft component budget requirement” for any constituent body is the component budget requirement for that body as stated in the final draft.”.

15 Deemed component budget requirements for last old financial year

(1) This section has effect for the purpose of implementing Schedules 6 and 7 to the GLA Act 1999 in the first new financial year.

(2) The Authority’s chief finance officer must for that purpose designate for the last old financial year amounts which are respectively to be regarded as—

(a) the component budget requirement for the Mayor for that year, and

(b) the component budget requirement for the Assembly for that year.

(3) The chief finance officer must consult the Mayor and the Assembly before making any such designation.

(4) The chief finance officer must make the designations required by this section no later than 31st December in the last old financial year.

(5) For the purposes of this section—

• “the first new financial year” is the first financial year in relation to which paragraph 5A or 8A of Schedule 6 to the GLA Act 1999 (see section 13) has effect;

• “the last old financial year” is the financial year immediately preceding the first new financial year.

16 Exercise of Mayor’s functions when temporarily unable to act

(1) Part 3 of Schedule 4 to the GLA Act 1999 (exercise of functions when Mayor temporarily unable to act etc) is amended as follows.

(2) In paragraph 15(1) (exceptions to rule that Deputy Mayor is to exercise Mayor’s functions) omit paragraph (a) (functions under Schedule 6 or 7).

(3) For paragraph 16 (setting the budget during the period) substitute—

“16 If and so long as any functions of the Mayor under Schedule 6 or 7 to this Act are exercisable by the Deputy Mayor pursuant to paragraph 14 above, the Deputy Mayor shall not act as an Assembly member in relation to any functions of the Assembly under either of those Schedules.”.

(4) Paragraph 18 (exercise of Deputy Mayor’s functions by Chair) is amended as follows.

(5) In sub-paragraph (2)(a) (which provides for paragraphs 14 and 15 to have effect with the substitution of references to the Chair of the Assembly) after “Chair of the Assembly” insert “(but see sub-paragraph (2A) below)”.

(6) After sub-paragraph (2) insert—

“(2A) The Chair of the Assembly shall not by virtue of sub-paragraph (2)(a) above exercise any functions of the Mayor under Schedule 6 or 7 to this Act.”.