{
  "url": "https://openlegislation.uk/local-government-act-2003/section-2",
  "json_url": "https://openlegislation.uk/local-government-act-2003/section-2.json",
  "legislation": "ukpga/2003/26",
  "legislation_title": "Local Government Act 2003",
  "legislation_url": "https://openlegislation.uk/local-government-act-2003",
  "path": "section/2",
  "kind": "section",
  "number": "2",
  "heading": "Control of borrowing",
  "text": "(1) A local authority may not borrow money if doing so would result in a breach of—\n(a) the limit for the time being determined by or for it under section 3, or\n(b) any limit for the time being applicable to it under section 4 , or\n(c) any limit for the time being applicable to it under section 12A.\n(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).\n(3) A local authority may not, without the consent of the Treasury, borrow otherwise than in sterling.\n(4) This section applies to borrowing under any power for the time being available to a local authority under any enactment, whenever passed.",
  "extent": "E+W",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "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)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "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)"
    },
    {
      "type": "I",
      "label": "I2",
      "text": "S. 2 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/26/section/2",
    "retrieved_at": "2026-10-29T09:18:07.059359+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."
}