Section 4 Imposition of borrowing limitsI1

I2(1)

The Secretary of State may for national economic reasons by regulations set limits in relation to the borrowing of money by local authorities.

(2)

The Secretary of State may by direction set limits in relation to the borrowing of money by a particular local authority for the purpose of ensuring that the authority does not borrow more than it can afford.

(3)

Different limits may be set under subsection (1) or (2) in relation to different kinds of borrowing.

I3(4)

A local authority subject to a limit set under subsection (1) may transfer any headroom it has in relation to the limit to another local authority subject to a corresponding limit.

(5)

The Secretary of State may by regulations make provision about the exercise of the right under subsection (4) and may, in particular, make provision about—

(a)

the circumstances in which a local authority is to be regarded as having headroom for the purposes of that subsection, and

(b)

the amount of headroom which it has for those purposes.

(6)

Where an amount is transferred under subsection (4), this Chapter shall have effect—

(a)

in relation to the transferor, as if the limit in relation to which the headroom exists were reduced by that amount, and

(b)

in relation to the transferee, as if the corresponding limit to which it is subject were increased by that amount.

Annotations

Commencement

I1: S. 4 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. 4(1)-(3) (5) in force at 18.11.2003 for E. by S.I. 2003/2938, art. 3(a) (with art. 8, Sch.)
I3: S. 4(4)(6) in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(b) (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)