Explanatory note
(This note is not part of the Order)
The annual limit on the amount of expenditure which a local authority may incur for purposes not otherwise authorised is determined under section 137(4) of the Local Government Act 1972 by multiplying the relevant population of the authority’s area by the sum appropriate to the authority.
In article 2 of this order different sums are specified as appropriate to–
county and non-metropolitan district councils;
London borough councils, the Common Council of the City of London, and metropolitan district councils participating in a scheme under section 48 (grants to voluntary organisations) of the Local Government Act 1985;
other metropolitan district councils and (by virtue of article 3) the Council of the Isles of Scilly.
These sums have effect in place of the sums specified in section 137(4AA) of the Act, which continues to have effect in respect of the expenditure of parish and community councils.