Explanatory note

Part V of the Local Authorities (Companies) Order 1995 (“the 1995 Order”) applies the provisions of Part IV of the Local Government and Housing Act 1989 (revenue accounts and capital finance of local authorities), subject to modifications, to companies subject to the influence or control of local authorities. Articles 13 and 14 make provision for treating things done by or to such a company as if they were done by or to the local authority concerned, and in respect of such things (other than a reduction made in the company’s liabilities) require the authority to have available an amount of credit cover.

This Order amends Part IV of the 1995 Order so that it applies to the Greater London Authority and functional bodies (as provided for in the Greater London Authority Act 1999) in a similar way as it applies to other authorities.