Explanatory note

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.