{
  "url": "https://openlegislation.uk/local-authorities-companies-amendment-order-1996/note",
  "json_url": "https://openlegislation.uk/local-authorities-companies-amendment-order-1996/note.json",
  "legislation": "uksi/1996/621",
  "legislation_title": "The Local Authorities (Companies) (Amendment) Order 1996",
  "legislation_url": "https://openlegislation.uk/local-authorities-companies-amendment-order-1996",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThe Local Authorities (Companies) Order 1995 provides for the regulation of companies which are subject to the influence or control of local authorities within the meaning of Part V of the Local Government and Housing Act 1989 (“regulated companies”). Part V of that Order (which is amended by this Order) applies the provisions of Part IV of the 1989 Act (revenue accounts and capital finance of local authorities), subject to modifications, to a regulated company and the local authority by whom the company is influenced or controlled (“the relevant authority”).\nArticle 4 amends article 14 of the principal Order which, in relation to things done by or to a regulated company, requires the relevant authority to have available an amount of credit cover. The amendment is made in consequence of the Local Authorities (Capital Finance and Approved Investments) (Amendment No. 2) Regulations (S.I. 1995/1982) under which a local authority with certain outstanding long-term borrowing may, notwithstanding that borrowing, have the benefit of certain regulations relating to an authority’s provision for credit liabilities.\nArticle 5 amends article 16 of the principal Order which makes provision for determining a regulated company’s liabilities. Article 16(1) is amended to provide that an amount of capital expenditure not exceeding the amount which the company reserved for such expenditure out of income (and was available on the date when the company became regulated) will not result in an increase in the company’s relevant liabilities.\nArticle 5 also amends the provision for determining in relation to a regulated company the amount to be treated as its relevant liabilities in the last financial year ending before it becomes regulated, and its relevant liabilities in the financial year in which it ceases to be a regulated company of a local authority.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/621/note",
    "retrieved_at": "2026-10-29T12:49:35.239474+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."
}