{
  "url": "https://openlegislation.uk/local-government-act-2003/section-7",
  "json_url": "https://openlegislation.uk/local-government-act-2003/section-7.json",
  "legislation": "ukpga/2003/26",
  "legislation_title": "Local Government Act 2003",
  "legislation_url": "https://openlegislation.uk/local-government-act-2003",
  "path": "section/7",
  "kind": "section",
  "number": "7",
  "heading": "“Credit arrangements”",
  "text": "(1) For the purposes of this Chapter, a local authority shall be taken to have entered into a credit arrangement where—\n(a) it enters into a transaction which gives rise to a liability on its part, and\n(b) the liability is a qualifying liability.\n(2) A transaction entered into by a local authority is to be taken for the purposes of subsection (1) as giving rise to a liability on the part of the authority if—\n(a) it falls in accordance with proper practices to be treated for the purposes of the authority’s accounts as giving rise to such a liability, or\n(b) it falls in accordance with regulations made by the Secretary of State to be treated as falling within paragraph (a).\n(3) The reference in subsection (1)(b) to a qualifying liability is to any liability other than—\n(a) a liability to repay money,\n(b) a liability in respect of which the date for performance is less than 12 months after the date on which the transaction giving rise to the liability is entered into, and\n(c) a liability of a description specified for the purposes of this provision by regulations made by the Secretary of State.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "C",
      "label": "C1",
      "text": "S. 7 applied (with modifications) (8.5.2017) by The Greater Manchester Combined Authority (Transfer of Police and Crime Commissioner Functions to the Mayor) Order 2017 (S.I. 2017/470), art. 1(2), Sch. 1 para. 13(2)(a)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 7 modified (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 33(2), Sch. 5 para. 13(2)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "S. 7 modified (29.6.2026) by 2011 c. 13, Sch. 10A para. 36 (as inserted by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(5), Sch. 24 (with s. 102))"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "S. 7 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. 7(1)(2)(a)(3)(a)(3)(b) in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(b) (with art. 8, Sch.)"
    },
    {
      "type": "I",
      "label": "I3",
      "text": "S. 7(2)(b)(3)(c) in force at 18.11.2003 for E. by S.I. 2003/2938, art. 3(a) (with art. 8, Sch.)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/26/section/7",
    "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."
}