Explanatory note

These Regulations make a number of amendments to the Local Authorities (Capital Finance) Regulations 1997 (“the 1997 Regulations”) resulting from the implementation of the Greater London Authority Act 1999.

Regulation 112 of the 1997 Regulations extends the description of private finance transactions under or in connection with which a local authority can dispose of property without having to set aside (as provision to meet credit liabilities) an amount in respect of the non-monetary consideration received for the disposal under the transaction pursuant to sections 59 and 61 of the Local Government and Housing Act 1989 (“the Act”). Part X of the 1997 Regulations makes provision in respect of a local authority’s credit ceiling, which is one of the components of the aggregate credit limit and is determined in accordance with paragraphs 11 to 14 of Schedule 3 to the Act. By virtue of regulation 123, no account is to be taken of certain credit arrangements in determining the credit ceiling. Part XII of the 1997 Regulations makes provision for determining a local authority’s minimum revenue provision—regulation 136 specifies the use of certain credit approvals in calculating that provision. Regulation 130 defines “relevant credit approval” for the purposes of Part XII.

Regulations 112, 123, 130 and 136 are amended so that they apply in a similar way to the Greater London Authority and functional bodies (as provided for in the Greater London Authority Act 1999) as they do to other authorities.