Explanatory note

These Regulations amend the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990, which contain a list of investments approved by the Secretary of State for the purposes of Part IV of the Local Government and Housing Act 1989 (revenue accounts and capital finance of local authorities).

The principal amendment provides for longer-term investments, subject to certain limits, to be approved investments in the case of authorities which have a nil or negative credit ceiling and no outstanding debt other than short-term borrowing.

Additions are also made to the lists in the Schedule to the 1990 Regulations. The European Bank for Reconstruction and Development is added to the bodies whose listed securities are approved investments. Nuclear Electric PLC, Scottish Nuclear Limited and the United Kingdom Atomic Energy Authority are included among the persons and bodies mentioned in Part II of the Schedule so that advances to them and loan instruments issued by or to them are approved investments.