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The Local Authorities (Capital Finance) (Amendment) (England) Regulations 2000

S.I. 2000/1773 · Made 6 July 2000

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

LOCAL GOVERNMENT, ENGLAND

Made 6th July 2000

Laid before Parliament 14th July 2000

Coming into force 4th August 2000

The Secretary of State for the Environment, Transport and the Regions, in exercise of the powers conferred upon him by paragraphs 10 and 15(1) of Schedule 3 to the Local Government and Housing Act 1989f1 hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1989 c. 42.

Contents

  1. 1Citation, commencement and extent
  2. 2Amendment of Regulations
  3. 3Credit ceiling increased by use of amount set aside to pay premium
  4. 4Credit ceiling reduced by payment by the Secretary of State to the Public Works Loan Commissioners
  5. 5Determining the non-housing reduction
  6. 6Determining the non-housing increase
  7. Signature
  8. Explanatory note

1Citation, commencement and extent

These Regulations, which extend to England onlyf1, may be cited as the Local Authorities (Capital Finance) (Amendment) (England) Regulations 2000, and shall come into force on 4th August 2000.

2Amendment of Regulations

The Local Authorities (Capital Finance) Regulations 1997f1 shall be amended in accordance with regulations 3 to 6 of these Regulations.

3Credit ceiling increased by use of amount set aside to pay premium

Insert the following regulation after regulation 118—

“Credit ceiling increased by use of amount set aside to pay premium

118A
(1)

In this regulation “premium” means any amount payable to a lender by a borrower as a result of the repayment of a loan in advance of maturity other than an amount in respect of principal or interest.

(2)

If an amount set aside is applied by a local authority, under section 64(1)(a), to pay any premium, the local authority’s credit ceiling shall at the time that premium is paid be increased by an amount equal to the amount so applied.”.

4Credit ceiling reduced by payment by the Secretary of State to the Public Works Loan Commissioners

Insert the following regulation after regulation 119—

“Credit ceiling reduced by payment by the Secretary of State to the Public Works Loan Commissioners

119A
(1)

In this regulation “qualifying disposal” has the same meaning as in section 135 of the Leasehold Reform, Housing and Urban Development Act 1993f1.

(2)

Where, following a qualifying disposal of one or more dwelling houses by a local authority, the Secretary of State makes a payment, other than a payment under section 157, to the Public Works Loan Commissioners so as to reduce or extinguish such debt of that authority to those Commissioners as he thinks fit, that authority’s credit ceiling shall at that time be reduced by an amount equal to the reduction in the debt, or as the case may be, to the amount of the extinguished debt (and, by virtue of this regulation, the credit ceiling may, accordingly, be a negative amount).”.

5Determining the non-housing reduction

In regulation 148(1) at the end of sub-paragraph (a), insert “and under regulation 119A”.

6Determining the non-housing increase

In regulation 149(1)—

(a)

in sub-paragraph (b) omit the word “and”; and

(b)

after sub-paragraph (c), insert

“; and

(d)

under regulation 118A.”.

Signature

Signed by authority of the Secretary of State for the Environment, Transport and the Regions

Hilary Armstrong

Minister of State,

Department of the Environment, Transport and the Regions

6th July 2000

Explanatory note

(This note is not part of the Regulations)

These regulations further amend the Local Authorities (Capital Finance) Regulations 1997. Regulation 3 provides that when an authority uses an amount set aside as provision to meet credit liabilities to pay a premium to a lender on the early repayment of a loan, the credit ceiling shall be increased by the amount so used. Regulation 5 provides that this increase shall be taken into account in determining the non-housing amount in calculating the Minimum Revenue Provision (“MRP”) the authority shall make. Regulation 4 provides that the credit ceiling shall be reduced by the amount of any payment made by the Secretary of State to the Public Works Loan Commissioners (other than a commuted payment under s 157) following a large scale voluntary transfer of houses by the authority. Regulation 6 provides that this reduction in the credit ceiling shall be taken into account in determining the “non-housing reduction” in the calculation of MRP.