OpenLegislation

Local Government Act 2003

2003 c. 26 · Enacted 18 September 2003 · Extends to United Kingdom

Not fully up to date. 18 changes made by later legislation have not yet been written into this text, which is revised to 5 October 2026.

See the changes not yet applied
ProvisionChangeMade by
s. 72(2)omittedLocal Government Finance (Wales) Act 2024 Sch. para. 15(2)
s. 33(1)(k)words substitutedPlanning (Consequential Provisions) (Wales) Act 2026 Sch. 2 para. 341
s. 23(1)(l)words substitutedPlanning (Consequential Provisions) (Wales) Act 2026 Sch. 2 para. 340
s. 24(1)s. 24 renumbered as s. 24(1)Local Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(3)
s. 24(2)insertedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(3)
s. 95(4)words repealedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(4)(a) Sch. 18 Pt. 16
s. 95(5)(6)substitutedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(4)(b)
s. 95(7)words insertedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(4)(c)
s. 96(5)words substitutedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(5)
s. 18(2)(a)word insertedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(2)(a)
s. 100(2)(a)words substitutedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(6)
s. 18(2)(b)substituted for s. 18(2)(b)(c)Local Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(2)(a)
s. 18(2A)insertedLocal Government and Public Involvement in Health Act 2007 Sch. 14 para. 5(2)(b)
s. 89(4)repealedLocalism Act 2011 Sch. 25 Pt. 24
Sch. 7 para. 34-39repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
s. 31functions made exercisable concurrently (with modifications)The Cumbria Combined Authority Order 2026 art. 11
s. 31functions made exercisableThe Cheshire and Warrington Combined Authority Order 2026 art. 12
s. 31functions made exercisable only by mayorThe Hampshire and the Solent Combined County Authority Regulations 2026 reg. 11
An Act to make provision about finance, and other provision, in connection with local and certain other authorities; to provide for changing the dates of local elections in 2004; to amend the Audit Commission Act 1998; and for connected purposes. [18th September 2003]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1C2

Annotations to the whole text

Modifications

C1

Act applied (with modifications) (10.5.2021) by The West Yorkshire Combined Authority (Election of Mayor and Functions) Order 2021 (S.I. 2021/112), arts. 1(4), 35(1)(2), Sch. 5 para. 13

C2

Act applied (with modifications) (21.3.2024) by The South Yorkshire Mayoral Combined Authority (Election of Mayor and Transfer of Police and Crime Commissioner Functions) Order 2024 (S.I. 2024/414), arts. 1(2), 5, Sch. 1 para. 13

Contents

  1. Part 1: Capital finance etc and accounts
  2. Chapter 1: Capital finance etc
  3. Borrowing
  4. 1Power to borrow
  5. 2Control of borrowing
  6. 3Duty to determine affordable borrowing limit
  7. 4Imposition of borrowing limits
  8. 5Temporary borrowing
  9. 6Protection of lenders
  10. Credit arrangements
  11. 7“Credit arrangements”
  12. 8Control of credit arrangements
  13. Capital receipts
  14. 9“Capital receipt”
  15. 10Non-money receipts
  16. 11Use of capital receipts
  17. Investment
  18. 12Power to invest
  19. Risk management: England
  20. 12ARisk-mitigation directions
  21. 12BRisk thresholds
  22. 12CRestriction of power to give risk-mitigation directions
  23. 12DDuty to cooperate with independent expert
  24. Miscellaneous
  25. 13Security for money borrowed etc
  26. 14Information
  27. Supplementary
  28. 15Guidance
  29. 16“Capital expenditure”
  30. 17External funds
  31. 18Local authority companies etc
  32. 19Application to parish and community councils
  33. 20Directions
  34. Chapter 2: Accounts
  35. 21Accounting practices
  36. 22“Revenue account”
  37. Chapter 3: General
  38. 23“Local authority”
  39. 24Wales
  40. Part 2: Financial administration
  41. 25Budget calculations: report on robustness of estimates etc
  42. 26Minimum reserves
  43. 27Budget calculations: report on inadequacy of controlled reserve
  44. 28Budget monitoring: general
  45. 29Budget monitoring: Greater London Authority
  46. 30Authorisation of agreements during the prohibition period
  47. Part 3: Grants etc
  48. Chapter 1: Expenditure grant
  49. 31Power of Ministers to pay grant
  50. 32Application to Greater London Authority
  51. 32APower to pay grant to joint committees of London councils
  52. 32APower of strategic authorities to pay grant
  53. 32BApplication to Mayoral development corporations outside London
  54. 33Interpretation of Chapter 1
  55. Chapter 2: Other grants etc
  56. 34Best value grant: parishes Repealed
  57. 35Best value grant: communities Repealed
  58. 36Grants in connection with designation for service excellence
  59. 36AGrants by Ministers of the Crown in respect of best value authorities etc
  60. 36BGrants by Welsh Ministers in respect of Welsh principal councils
  61. 37Emergency financial assistance to combined fire authorities
  62. 38Local loans
  63. 39Payments towards local authority indebtedness
  64. 40Local government finance reports: Wales
  65. Part 4: Business improvement districts
  66. BID arrangements
  67. 41Arrangements with respect to business improvement districts
  68. 42Joint arrangements
  69. 43Additional contributions and action
  70. 44Duty to comply with arrangements
  71. BID levy
  72. 45BID levy
  73. 46Liability for BID levy
  74. Administration etc
  75. 47BID Revenue Account
  76. 48Administration of BID levy etc
  77. Procedure
  78. 49BID proposals
  79. 50Approval in ballot
  80. 51Power of veto
  81. 52Appeal against veto
  82. 53Commencement of BID arrangements
  83. Miscellaneous
  84. 54Duration of BID arrangements etc
  85. 55Regulations about ballots
  86. 56Power to make further provision
  87. 57Crown application
  88. 58Wales
  89. 59Interpretation of Part 4
  90. Part 5: Non-domestic rates
  91. 60Submission of proposed rating lists
  92. 61Small business relief Repealed
  93. 62Calculation of non-domestic rating multiplier
  94. 63Rural settlement lists etc
  95. 64Relief for registered community amateur sports clubs
  96. 65Transitional relief
  97. 66Rating of meters
  98. 67Exemptions for agricultural buildings
  99. 68Exemption for places of religious worship Not yet in force
  100. 69Removal of power to prescribe rateable values Not yet in force
  101. 70Local retention of rates
  102. 71Adjustments for hardship relief
  103. 72Provision of information
  104. 73Interpretation of Part 5
  105. Part 6: Council tax
  106. Liability and amount of tax
  107. 74Exception of students from joint and several liability
  108. 75Second and empty homes
  109. 76Billing authority’s power to reduce amount of tax payable Repealed
  110. Valuation lists and bands
  111. 77Statutory revaluation cycle
  112. 78Power to change number of valuation bands
  113. 79Transitional arrangements
  114. Enforcement
  115. 80Amendments relating to distress
  116. 81Charging orders: aggregation
  117. 82Quashing of liability orders
  118. Other
  119. 83Major precepting authorities: combined fire authorities
  120. 84Amendment of section 67 of the Local Government Finance Act 1992
  121. 85Vacant dwellings: use of information obtained for council tax purposes
  122. 86Repeal of section 31 of the Local Government Act 1999
  123. Part 7: Housing finance etc
  124. 87Housing strategies and statements
  125. 88Housing Revenue Account business plans
  126. 89Housing Revenue Account subsidy: payment and calculation
  127. 90Housing Revenue Account subsidy: negative amounts
  128. 91Housing Revenue Accounts etc: adaptation of enactments
  129. 92Local housing authority houses: rents
  130. Part 8: Miscellaneous and general
  131. Chapter 1: Miscellaneous
  132. Charging and trading
  133. 93Power to charge for discretionary services
  134. 94Power to disapply section 93(1)
  135. 95Power to trade in function-related activities through a company
  136. 96Regulation of trading powers
  137. 97Power to modify enactments in connection with charging or trading
  138. 98Procedure for orders under section 97: England
  139. 98AProcedure for orders under section 97: Wales
  140. Performance categories
  141. 99Categorisation of English local authorities by reference to performance Repealed
  142. 100Exercise of powers by reference to authorities' performance categories
  143. Contracting-out
  144. 101Staff transfer matters: general
  145. 102Staff transfer matters: pensions
  146. 2004 local government elections
  147. 103Power to change date of elections in England
  148. 104Power to change date of elections in Wales
  149. Valuation Tribunal Service
  150. 105The Valuation Tribunal Service
  151. 106Transfer to Service of property, rights and liabilities
  152. Audit Commission
  153. 107Auditors' public interest reports: time allowed for consideration Repealed
  154. 108Auditors' public interest reports: publicity Repealed
  155. 109Registered social landlords Repealed
  156. 110Financial year Repealed
  157. 111Delegation Repealed
  158. Other
  159. 112Standards Board for England: delegation Repealed
  160. 113Standards committees and monitoring officers: delegation
  161. 114Paid time off for councillors not to be political donation
  162. 115Overview and scrutiny committees: voting rights of co-opted members Repealed
  163. 116Local polls
  164. 117Generally accepted accounting practice: power to amend enactments
  165. 118Appropriate sum under section 137(4) of the Local Government Act 1972
  166. 119Use of fixed penalties paid for litter and dog-fouling offences Repealed
  167. 120Regulation of cosmetic piercing and skin-colouring businesses
  168. 121Fire brigade establishment schemes: removal of Secretary of State’s functions Repealed
  169. 122Repeal of prohibition on promotion of homosexuality
  170. Chapter 2: General
  171. 123Orders and regulations
  172. 124General interpretation
  173. 125Application to Isles of Scilly
  174. 126Financial provisions
  175. 127Minor and consequential amendments and repeals
  176. 128Commencement
  177. 129Short title and extent
  178. Schedule 1: Capital finance: parish and community councils and charter trustees
  179. Introductory
  180. 1Paragraph 1
  181. Borrowing
  182. 2Paragraph 2
  183. 3Paragraph 3
  184. Loans
  185. 4Paragraph 4
  186. “Fixed period”
  187. 5Paragraph 5
  188. Schedule 2: Welsh local government finance reports
  189. 1Paragraph 1
  190. 2Paragraph 2
  191. Schedule 3: Amendment of powers exercisable in relation to local authorities
  192. Local Government and Housing Act 1989 (c. 42)
  193. 1Paragraph 1
  194. 2Paragraph 2
  195. 3Paragraph 3
  196. Local Government Act 1999 (c. 27)
  197. 4Paragraph 4
  198. 5Paragraph 5
  199. 6Paragraph 6
  200. 7Paragraph 7
  201. 8Paragraph 8
  202. 9Paragraph 9
  203. 10Paragraph 10
  204. Local Government Act 2000 (c. 22)
  205. 11Paragraph 11
  206. 12Paragraph 12
  207. 13Paragraph 13
  208. 14Paragraph 14
  209. Schedule 4: The Valuation Tribunal Service
  210. Membership, chairman and deputy chairman
  211. 1Paragraph 1
  212. Disqualification
  213. 2Paragraph 2
  214. Tenure of office
  215. 3Paragraph 3
  216. 4Paragraph 4
  217. 5Paragraph 5
  218. Remuneration, pensions, etc of members
  219. 6Paragraph 6
  220. Staff
  221. 7Paragraph 7
  222. 8Paragraph 8
  223. 9Paragraph 9
  224. Committees
  225. 10Paragraph 10
  226. Proceedings
  227. 11Paragraph 11
  228. Delegation
  229. 12Paragraph 12
  230. Members' interests
  231. 13Paragraph 13
  232. 14Paragraph 14
  233. Vacancies and defective appointments
  234. 15Paragraph 15
  235. Minutes
  236. 16Paragraph 16
  237. Execution and proof of instruments
  238. 17Paragraph 17
  239. Money
  240. 18Paragraph 18
  241. 19Paragraph 19
  242. 20Paragraph 20
  243. The Public Records Act 1958 (c. 51)
  244. 21Paragraph 21
  245. The Parliamentary Commissioner Act 1967 (c. 13)
  246. 22Paragraph 22
  247. The House of Commons Disqualification Act 1975 (c. 24)
  248. 23Paragraph 23
  249. The Freedom of Information Act 2000 (c. 36)
  250. 24Paragraph 24
  251. The Enterprise Act 2002 (c. 40)
  252. 25Paragraph 25
  253. Status
  254. 26Paragraph 26
  255. Interpretation
  256. 27Paragraph 27
  257. Schedule 5: Transfer schemes: further provision
  258. Contents of transfer scheme
  259. 1Paragraph 1
  260. 2Paragraph 2
  261. 3Paragraph 3
  262. 4Paragraph 4
  263. Effect of transfers
  264. 5Paragraph 5
  265. 6Paragraph 6
  266. 7Paragraph 7
  267. Continuity of employment, etc of transferred employees
  268. 8Paragraph 8
  269. Modification of transfer scheme after appointed day
  270. 9Paragraph 9
  271. Provision of information to Secretary of State
  272. 10Paragraph 10
  273. Consultation
  274. 11Paragraph 11
  275. Stamp duty
  276. 12Paragraph 12
  277. Schedule 6: Section 120: transition
  278. Commencement not to affect existing application of section 15 of the 1982 Act
  279. 1Paragraph 1
  280. Commencement not to affect pending resolutions about the application of section 15 of the 1982 Act
  281. 2Paragraph 2
  282. Additional powers of commencement in relation to section 15 of the 1982 Act as amended
  283. 3Paragraph 3
  284. Effect of existing ear-piercing registrations following extension of control to cosmetic piercing
  285. 4Paragraph 4
  286. Interpretation
  287. 5Paragraph 5
  288. Schedule 7: Minor and consequential amendments
  289. Fire Services Act 1947 (c. 41)
  290. 1Paragraph 1 Repealed
  291. Public Works Loans Act 1965 (c. 63)
  292. 2Paragraph 2
  293. Public Works Loans Act 1967 (c. 61)
  294. 3Paragraph 3
  295. Local Government Act 1972 (c. 70)
  296. 4Paragraph 4
  297. Local Government Act 1974 (c. 7)
  298. 5Paragraph 5
  299. Stock Transfer Act 1982 (c. 41)
  300. 6Paragraph 6
  301. Representation of the People Act 1985 (c. 50)
  302. 7Paragraph 7
  303. Local Government Act 1988 (c. 9)
  304. 8Paragraph 8
  305. Local Government Finance Act 1988 (c. 41)
  306. 9Paragraph 9
  307. 10Paragraph 10
  308. 11Paragraph 11
  309. 12Paragraph 12
  310. 13Paragraph 13
  311. 14Paragraph 14
  312. 15Paragraph 15
  313. 16Paragraph 16
  314. 17Paragraph 17 Repealed
  315. 18Paragraph 18
  316. 19Paragraph 19
  317. 20Paragraph 20
  318. 21Paragraph 21
  319. 22Paragraph 22
  320. 23Paragraph 23
  321. 24Paragraph 24
  322. 25Paragraph 25
  323. 26Paragraph 26
  324. 27Paragraph 27
  325. Local Government and Housing Act 1989 (c. 42)
  326. 28Paragraph 28
  327. 29Paragraph 29
  328. 30Paragraph 30
  329. 31Paragraph 31
  330. 32Paragraph 32
  331. 33Paragraph 33
  332. Social Security Administration Act 1992 (c. 5)
  333. 34Paragraph 34
  334. 35Paragraph 35
  335. 36Paragraph 36
  336. 37Paragraph 37
  337. 38Paragraph 38
  338. 39Paragraph 39
  339. Local Government Finance Act 1992 (c. 14)
  340. 40Paragraph 40
  341. 41Paragraph 41
  342. 42Paragraph 42
  343. 43Paragraph 43
  344. 44Paragraph 44
  345. 45Paragraph 45
  346. 46Paragraph 46
  347. 47Paragraph 47
  348. 48Paragraph 48
  349. 49Paragraph 49
  350. 50Paragraph 50
  351. 51Paragraph 51
  352. 52Paragraph 52
  353. 53Paragraph 53
  354. 54Paragraph 54
  355. 55Paragraph 55
  356. Local Government (Wales) Act 1994 (c. 19)
  357. 56Paragraph 56
  358. 57Paragraph 57 Repealed
  359. 58Paragraph 58
  360. Deregulation and Contracting Out Act 1994 (c. 40)
  361. 59Paragraph 59
  362. Housing Act 1996 (c. 52)
  363. 60Paragraph 60
  364. Justices of the Peace Act 1997 (c. 25)
  365. 61Paragraph 61
  366. 62Paragraph 62
  367. 63Paragraph 63
  368. Local Government (Contracts) Act 1997 (c. 65)
  369. 64Paragraph 64
  370. Audit Commission Act 1998 (c. 18)
  371. 65Paragraph 65 Repealed
  372. School Standards and Framework Act 1998 (c. 31) and Education Act 2002 (c. 32)
  373. 66Paragraph 66 Repealed
  374. Government of Wales Act 1998 (c. 38)
  375. 67Paragraph 67 Repealed
  376. Greater London Authority Act 1999 (c. 29)
  377. 68Paragraph 68
  378. 69Paragraph 69
  379. 70Paragraph 70 Repealed
  380. 71Paragraph 71
  381. 72Paragraph 72
  382. 73Paragraph 73
  383. 74Paragraph 74
  384. 75Paragraph 75
  385. 76Paragraph 76
  386. 77Paragraph 77
  387. 78Paragraph 78
  388. National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672)
  389. 79Paragraph 79
  390. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  391. 80Paragraph 80 Repealed
  392. Homelessness Act 2002 (c. 7)
  393. 81Paragraph 81
  394. Schedule 8: Repeals and revocations
  395. 1Repeals
  396. 2Revocations