Regulation 2

The Local Authorities (Capital Finance) Regulations 1990^f1 shall be amended in regulation 2 by the addition after paragraph (6) of the following paragraph—

“(7)

Where a local authority—

(a)

have at any time received a grant or any other financial assistance from a Minister of the Crown or Community institution towards expenditure incurred by the authority for capital purposes, and

(b)

subsequently are required to repay the grant or assistance or make a payment in respect of it,

then the expenditure of the authority incurred in making that repayment or payment shall be expenditure for capital purposes.”.