# The Local Authorities (Capital Finance) Regulations 1997, Regulation 16: Meaning of private finance transaction

Extent: E+W
Status: prospective

(1) In this regulation, “relevant asset” means any non-housing land or any other asset (including works) which is not land.
(2) For the purposes of this Part, a transaction is a private finance transaction if—
(a) the consideration received by the authority under the transaction includes the provision—
(i) of a relevant asset for use for, or in connection with, the exercise of a function of the authority (“the relevant purpose”); and
(ii) of services in relation to the use of the asset for the relevant purpose;
(b) the authority do not give to any person any undertaking or guarantee in respect of any obligations or liabilities of the person with whom they enter into the transaction (whether incurred under the transaction or otherwise);
(c) the consideration given by the authority under the transaction includes the payment of fees by instalments at annual or more frequent intervals;
(d) the fees are determined in accordance with provisions relating to—
(i) standards attained in the performance of the services; or
(ii) the extent, rate or intensity of use of the asset for the relevant purpose;
(e) the first instalment of fees falls to be paid after the authority have begun to use the asset for the relevant purpose; and
(f) the terms agreed for the transaction do not provide for any variation in the amount of fees payable, other than variation under the provisions mentioned in sub-paragraph (d), and any provision agreed for increasing the fees by reference to—
(i) increases in heating costs attributable to increases in the price of gas, electricity or fuel; or
(ii) the figure in Table 2.1 of Economic Trends published by the Office for National Statistics as the most recent percentage change, quarter on corresponding quarter of previous year, of the implied gross domestic product deflator at market prices.

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Source: https://www.legislation.gov.uk/uksi/1997/319/regulation/16 (the official version)
Page: https://openlegislation.uk/local-authorities-capital-finance-regulations-1997/regulation-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.