Section 2 Control of borrowingI1 I2

England and Wales

(1)

A local authority may not borrow money if doing so would result in a breach of—

(a)

the limit for the time being determined by or for it under section 3, or

(b)

any limit for the time being applicable to it under section 4 F1, or

F2(c)

any limit for the time being applicable to it under section 12A.

(2)

The Secretary of State may, in relation to specific borrowing by a particular local authority, by direction disapply subsection (1)(b), so far as relating to any limit for the time being applicable under section 4(1).

(3)

A local authority may not, without the consent of the Treasury, borrow otherwise than in sterling.

(4)

This section applies to borrowing under any power for the time being available to a local authority under any enactment, whenever passed.

Annotations

Textual amendments

F1: Word in s. 2(1) inserted (31.1.2024) by Levelling-up and Regeneration Act 2023 (c. 55), ss. 78(3)(a), 255(2)(p) (with s. 247); S.I. 2024/92, reg. 2(a)
F2: S. 2(1)(c) inserted (31.1.2024) by Levelling-up and Regeneration Act 2023 (c. 55), ss. 78(3)(b), 255(2)(p) (with s. 247); S.I. 2024/92, reg. 2(a)

Commencement

I1: S. 2 in force at 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I (with Sch. 2 para. 3)
I2: S. 2 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)

Notes on Part 1

Modifications

C1: Meaning of “local authority” in Pt. 1 modified (5.3.2008) by Cheshire (Structural Changes) Order 2008 (S.I. 2008/634), arts. 1, 9(9)(c)
C2: Meaning of “local authority” in Pt. 1 modified (28.3.2008) by Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 20(7)(c)
C3: Pt. 1 applied (15.1.2014) by Humber Bridge Act 2013 (c. vi), ss. 1(1), 8(4)
C4: Pt. 1 applied in part (with modifications) by Police Reform and Social Responsibility Act 2011 (c. 13), Sch. 2 para. 7A(4)(7)(8), Sch. 4 para. 4A(4)(5) (as inserted (13.5.2014) by Anti-social Behaviour, Crime and Policing Act 2014 (c. 12), ss. 141(1)(2), 185(1))
C5: Pt. 1 modified (25.5.2018) by The East Suffolk (Local Government Changes) Order 2018 (S.I. 2018/640), arts. 1, 17(2)(c)
C6: Pt. 1 modified (25.5.2018) by The West Suffolk (Local Government Changes) Order 2018 (S.I. 2018/639), arts. 1, 17(2)(c)
C7: Pt. 1 modified (26.5.2018) by The Somerset West and Taunton (Local Government Changes) Order 2018 (S.I. 2018/649), arts. 1, 17(2)(c)
C8: Pt. 1 modified (26.5.2018) by The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 (S.I. 2018/648), arts. 1, 21(2)(c), 36(2)(c)
C9: Pt. 1 modified (23.5.2019) by The Buckinghamshire (Structural Changes) Order 2019 (S.I. 2019/957), arts. 1, 15(2)
C10: Pt. 1 modified (14.2.2020) by The Northamptonshire (Structural Changes) Order 2020 (S.I. 2020/156), arts. 1, 17(2)(c)
C11: Pt. 1 applied (18.3.2022) by The Cumbria (Structural Changes) Order 2022 (S.I. 2022/331), arts. 1(1), 18(2)(c)
C12: Pt. 1 modified (10.3.2026) by The Surrey (Structural Changes) Order 2026 (S.I. 2026/264), arts. 1(1), 28(2)(c), 40(2)(c)

Section 2 Control of borrowingI1I2