Section 13 Power to borrowI1

Section 23 of the Local Government Act 2003 (meaning of “local authority” and application of provisions to combined authorities and CCAs) is amended in accordance with subsections (2) to (6).

In subsection (5), for “except that section 1 confers power on such a combined authority” substitute

“except that—

(a)

the power conferred by section 1 on a mayoral combined authority is subject to the requirements in subsection (9A) to obtain consent from the Secretary of State, and

(b)

section 1 confers power on a non-mayoral combined authority”.

In subsection (8), for “The reference in subsection (5)” substitute “A reference in subsection (5) or (9A)”.

In subsection (8A), for “except that section 1 confers power on a CCA” substitute

“except that—

(a)

the power conferred by section 1 on a mayoral CCA is subject to the requirements in subsection (9A) to obtain consent from the Secretary of State, and

(b)

section 1 confers power on a non-mayoral CCA”.

In subsection (8C), for “The reference in subsection (8A)” insert “A reference in subsection (8A) or (9A)”.

After subsection (9) insert—

“(9A)

These are the requirements to obtain consent from the Secretary of State which apply to the exercise of the power conferred by section 1 on a mayoral combined authority or mayoral CCA—

(a)

if the combined authority or CCA had the power to borrow under section 1 before the applicable commencement day, it does not need to obtain consent from the Secretary of State before any exercise of the power to borrow;

(b)

if the combined authority or CCA did not have the power to borrow under section 1 before the applicable commencement day—

(i)

it does not need to obtain consent from the Secretary of State before any exercise of the power to borrow money for a purpose relevant to its transport, police or fire and rescue functions;

(ii)

it must obtain consent from the Secretary of State before the first exercise of the power to borrow money for a purpose relevant to a function other than its transport, police or fire and rescue functions;

(iii)

once it has obtained consent in accordance with sub-paragraph (ii) (in relation to any kind of function), it does not need to obtain any further consent under that sub-paragraph (whether in relation to the same kind, or a different kind, of function).

(9B)

In this section—

• “applicable commencement day” means the day on which section 13 of the English Devolution and Community Empowerment Act 2026 comes into force;

• “non-mayoral CCA” means a CCA other than a mayoral CCA;

• “non-mayoral combined authority” means a combined authority other than a mayoral combined authority;

• “transport, police or fire and rescue functions”, in relation to a mayoral combined authority or mayoral CCA, means—

  1. (a)

     transport functions of the combined authority or CCA,

  2. (b)

     functions of a police and crime commissioner exercisable by the mayor for the area of the combined authority or CCA, and

  3. (c)

     functions of a fire and rescue authority exercisable by the mayor for the area of the combined authority or CCA.”

The coming into force of this section does not affect the validity of—