Regulation 8 Aggregate credit limits

In the case of a successor authority or an acquiring authority, section 62 of the 1989 Act shall have effect at any time in the financial year beginning on the reorganisation date as if “relevant arrears” for the purposes of subsection (3)(b)(ii) included amounts in respect of income which—

(a)

were not received by the abolished authority or the relinquishing authority before the reorganisation date;

(b)

are payable after the reorganisation date to the successor authority or acquiring authority in question; and

(c)

if the order under section 17 of the Local Government Act 1992 in relation to the abolished authority or the relinquishing authority had not been made, would, as income, have fallen to be credited to a revenue account of that authority for the financial year beginning two years before the beginning of the current financial year;

and as if the reference in subsection (5) to expenditure defrayed by the authority for capital purposes included expenditure defrayed for such purposes by the abolished authority or the relinquishing authority.