Explanatory note

This Order amends the definition of capital expenses in section 94 of the Local Government (Scotland) Act 1973. Under that section, it is not lawful for a local authority to incur any liability to meet capital expenses without the consent of the Secretary of State.

Capital expenses is at present defined in section 94(2) of the 1973 Act as meaning–

“any expenses which are to be charged to a capital or borrowing account or which, being of a capital nature, are to be met otherwise than out of current revenue.”

This definition is amended in order to include what was formerly excluded, namely any expenses which are of a capital nature which are met out of current revenue. It also removes the reference to expenses which are charged to a borrowing account which has become unnecessary in practice.