{
  "url": "https://openlegislation.uk/local-authorities-capital-finance-approved-investments-and-contractsamendment-england-regulations-2001/note",
  "json_url": "https://openlegislation.uk/local-authorities-capital-finance-approved-investments-and-contractsamendment-england-regulations-2001/note.json",
  "legislation": "uksi/2001/723",
  "legislation_title": "The Local Authorities (Capital Finance, Approved Investments and Contracts—Amendment) (England) Regulations 2001",
  "legislation_url": "https://openlegislation.uk/local-authorities-capital-finance-approved-investments-and-contractsamendment-england-regulations-2001",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations further amend the Local Authorities (Capital Finance) Regulations 1997, and make a number of consequential amendments to the capital finance system resulting from the implementation of the Access to Justice Act 1999 which establishes the Greater London Magistrates' Courts Authority (“GLMCA”).\nGLMCA amendments\nRegulation 3 further amends the Local Authorities (Capital Finance) Regulations 1997 by excluding from being a credit arrangement under section 48 of the Local Government and Housing Act 1989 any lease where the GLMCA became lessee by virtue of a scheme under paragraph 33 of, or regulations under paragraph 35 of, Schedule 14 to the Access to Justice Act 1999.\nRegulation 9 further amends the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990, by specifying the GLMCA as a person or body advances to whom, or loan instruments issued by whom, are approved investments for the purposes of Part IV of the Local Government and Housing Act 1989.\nRegulation 10 further amends the Local Authorities (Contracts) Regulations 1997 to bring the GLMCA within their ambit. Regulation 5 of the Local Authorities (Contracts) Regulations 1997 is amended to require the GLMCA to provide to its auditor a copy of every certificate issued by it under those Regulations. Regulation 6(1) of those Regulations is amended so that where the GLMCA relies on section 59A(2) of the Justices of the Peace Act 1997 (a power to do anything calculated to facilitate, or which is conducive or incidental to the exercise of its function to provide courthouses, accommodation, goods and services for the performance of its functions) as giving it power to enter into a contract, it must specify the statutory provision conferring the main relevant functions in the certificate.\nOther amendments\nRegulation 4 further amends regulation 40 of the Local Authorities (Capital Finance) Regulations 1997 which defines private finance transactions whose initial cost is nil. As amended, regulation 40 of those Regulations will provide that a private finance transaction shall have a nil initial cost if the authority determine that no item, other than one specified in regulation 40(2), is required to be recognised as an asset in any balance sheet the authority are required to prepare for any financial year during the term of the contract with respect to property provided, made available, constructed, enhanced, replaced or installed under the transaction.\nRegulations 5 and 6 amend the Local Authorities (Capital Finance) Regulations 1997 so that the transferor authority’s credit ceiling is reduced, and the transferee authority’s credit ceiling is increased when debt is transfered from one authority to another. Regulations 7 and 8 amend regulations 148 and 149 of the Local Authorities (Capital Finance) Regulations 1997 so that the reduction and increase in the transferor and transferee’s credit ceilings are taken into account when calculating the Minimum Revenue Provision the authority is required to make (i.e. the minimum amount it must set aside from revenue as provision to meet credit liabilities).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2001/723/note",
    "retrieved_at": "2026-10-29T07:59:38.042572+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}