Regulation 21 Credit ceiling and adjusted credit ceiling on the last day of a financial year

In this regulation, “the relevant day” means the last day of the financial year immediately preceding the financial year beginning on the reorganisation date.

In Part IV of the 1989 Act and the 1990 Regulations, any reference to a local authority’s credit ceiling or adjusted credit ceiling on the last day of a financial year shall, in relation to the credit ceiling or adjusted credit ceiling of a designated authority or participant authority on the relevant day, be construed as a reference to the credit ceiling or, as the case may be, adjusted credit ceiling of the authority in question on the reorganisation date.

For the purposes of paragraph (2) above, the credit ceiling or adjusted credit ceiling on the relevant day of a newly-established authority means the credit ceiling or adjusted credit ceiling on that day of the shadow authority which has become the newly-established authority.