Explanatory note

These Regulations impose restrictions on the exercise by relevant authorities in England and Wales (London borough councils, county councils, district councils, the Common Council of the City of London and the Council of the Isles of Scilly) of powers to promote the economic development of their areas.

The Regulations have effect on and after 1st April 1990 where the power is that conferred by section 33(1) of the Local Government and Housing Act 1989. In other cases they have effect from 1st July 1990 except in relation to assistance provided pursuant to arrangements concluded before 1st April 1990 (regulation 3).

Regulation 4 provides that a relevant authority is to be treated as providing financial assistance under section 33(3)(f) of the 1989 Act if it provides or agrees to provide a person with property, services or other financial benefit for consideration less than the best reasonably obtainable.

Regulation 5 and Schedule 2 specify activities which may not be carried out by a relevant authority in the exercise of its economic development powers.

Regulations 6 and 7 prohibit the provision, in the exercise of economic development powers, of certain kinds of assistance. The prohibitions contained in regulation 7 do not apply to the authorities listed in Schedule 1, district and county councils in Wales and, to a limited extent, county councils in England.

Regulation 8 imposes on a relevant authority which proposes to provide training or education services as part of a programme, a requirement that the local education authority shall have approved that programme. In relation to assistance of certain kinds the regulation imposes a requirement to consult other authorities.

Regulation 9 requires a relevant authority which makes a loan at a rate of interest that is less than the market rate to keep a separate account showing the difference between the market rate and the rate actually charged.