The Local Authorities (Capital Finance, Approved Investments and Contracts—Amendment) (England) Regulations 2001
S.I. 2001/723 · Made 5 March 2001
LOCAL GOVERNMENT, ENGLAND
Made 5th March 2001
Laid before Parliament 9th March 2001
Coming into force 1st April 2001
The Secretary of State for the Environment, Transport and the Regions, in exercise of the powers conferred upon him by sections 48(5), 49(3) and 66(1)(a) of and paragraphs 10 and 15(1) of Schedule 3 to the Local Government and Housing Act 1989f1 and sections 3(2)(e) and (f) and 3(3) of the Local Government (Contracts) Act 1997f2 hereby makes the following Regulations:
Annotations to the whole text
Footnotes
- f1
- f2
Contents
- 1Citation, commencement and extent
- 2The Local Authorities (Capital Finance) Regulations 1997
- 3Other leases excluded from section 48
- 4Excluded private finance transactions
- 5Credit ceiling increased by amount of debt transferred from another authority
- 6Credit ceiling reduced by amount of debt transferred to another authority
- 7Determining the non-housing reduction
- 8Determining the non-housing increase
- 9The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990
- 10The Local Authorities (Contracts) Regulations 1997
- Signature
- Explanatory note
1Citation, commencement and extent
These Regulations, which extend to England onlyf1, may be cited as the Local Authorities (Capital Finance, Approved Investments and Contracts—Amendment) (England) Regulations 2001.
These Regulations shall come into force on 1st April 2001.
2The Local Authorities (Capital Finance) Regulations 1997
The Local Authorities (Capital Finance) Regulations 1997f1 shall be amended in accordance with regulations 3 to 8 below.
3Other leases excluded from section 48
In regulation 24(2) after sub-paragraph (g)f1 insert:
“; or (h) any scheme under paragraph 33 of Schedule 14 to the Access to Justice Act 1999f2; or
- (i)
regulations under paragraph 35 of Schedule 14 to the Access to Justice Act 1999, to the extent that where accommodation is provided to the Greater London Magistrates' Courts Authority under regulations under that paragraph, it is leased to that authority.”.
4Excluded private finance transactions
In regulation 40(1)f1 for the words “for the financial year in which the credit arrangement comes into being” substitute “for any financial year during the term of the credit arrangement”.
5Credit ceiling increased by amount of debt transferred from another authority
After regulation 118Af1 insert the following regulation:
“118BWhere an authority transfer some or all of their debt to another authority (“the transferee”), the credit ceiling of the transferee shall be increased by the amount of debt so transferred.”.
6Credit ceiling reduced by amount of debt transferred to another authority
After regulation 119Af1 insert the following regulation:
“119BWhere an authority (“the transferor”) transfer some or all of their debt to another authority, the credit ceiling of the transferor shall be reduced by the amount of debt so transferred.”.
7Determining the non-housing reduction
In regulation 148(1)f1 in sub-paragraph (a) for “regulation 119A” substitute “regulations 119A and 119B”.
8Determining the non-housing increase
In regulation 149(1):
at the end of sub-paragraph (c) omit the word “and”;
after sub-paragraph (d)f1 add:
“; and
- (e)
under regulation 118B.”.
9The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990
The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990f1 shall be amended as follows.
In regulation 1(2), in the definition of “relevant lender”f2, for “28 to 35” substitute “28 to 36”.
At the end of Part II of the Schedulef3, add—
“36The Greater London Magistrates' Courts Authority.”.
10The Local Authorities (Contracts) Regulations 1997
The Local Authorities (Contracts) Regulations 1997f1 shall be amended as follows.
In regulation 5(1), at the end of sub-paragraph (g) omit “and” and after sub-paragraph (h)16 221 (j) insert—
“; and (i) the Greater London Magistrates' Courts Authority.”.
In regulation 6(1)—
after “Schedule 10 to the Greater London Authority Act” insert “1999 or, in the case of the Greater London Magistrates' Courts Authority, section 59A(2) of the Justices of the Peace Act 1997”f2; and
in sub-paragraph (b), after “Schedule 10 to the Greater London Authority Act” insert “1999 or, in the case of the Greater London Magistrates' Courts Authority, section 59A(2) of the Justices of the Peace Act 1997.”.
Signature
Signed by authority of the Secretary of State for the Environment, Transport and the Regions
Hilary Armstrong
Minister of State,
Department of the Environment, Transport and the Regions
5th March 2001
Explanatory note
(This note is not part of the Regulations)
These Regulations further amend the Local Authorities (Capital Finance) Regulations 1997, and make a number of consequential amendments to the capital finance system resulting from the implementation of the Access to Justice Act 1999 which establishes the Greater London Magistrates' Courts Authority (“GLMCA”).
GLMCA amendments
Regulation 3 further amends the Local Authorities (Capital Finance) Regulations 1997 by excluding from being a credit arrangement under section 48 of the Local Government and Housing Act 1989 any lease where the GLMCA became lessee by virtue of a scheme under paragraph 33 of, or regulations under paragraph 35 of, Schedule 14 to the Access to Justice Act 1999.
Regulation 9 further amends the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990, by specifying the GLMCA as a person or body advances to whom, or loan instruments issued by whom, are approved investments for the purposes of Part IV of the Local Government and Housing Act 1989.
Regulation 10 further amends the Local Authorities (Contracts) Regulations 1997 to bring the GLMCA within their ambit. Regulation 5 of the Local Authorities (Contracts) Regulations 1997 is amended to require the GLMCA to provide to its auditor a copy of every certificate issued by it under those Regulations. Regulation 6(1) of those Regulations is amended so that where the GLMCA relies on section 59A(2) of the Justices of the Peace Act 1997 (a power to do anything calculated to facilitate, or which is conducive or incidental to the exercise of its function to provide courthouses, accommodation, goods and services for the performance of its functions) as giving it power to enter into a contract, it must specify the statutory provision conferring the main relevant functions in the certificate.
Other amendments
Regulation 4 further amends regulation 40 of the Local Authorities (Capital Finance) Regulations 1997 which defines private finance transactions whose initial cost is nil. As amended, regulation 40 of those Regulations will provide that a private finance transaction shall have a nil initial cost if the authority determine that no item, other than one specified in regulation 40(2), is required to be recognised as an asset in any balance sheet the authority are required to prepare for any financial year during the term of the contract with respect to property provided, made available, constructed, enhanced, replaced or installed under the transaction.
Regulations 5 and 6 amend the Local Authorities (Capital Finance) Regulations 1997 so that the transferor authority’s credit ceiling is reduced, and the transferee authority’s credit ceiling is increased when debt is transfered from one authority to another. Regulations 7 and 8 amend regulations 148 and 149 of the Local Authorities (Capital Finance) Regulations 1997 so that the reduction and increase in the transferor and transferee’s credit ceilings are taken into account when calculating the Minimum Revenue Provision the authority is required to make (i.e. the minimum amount it must set aside from revenue as provision to meet credit liabilities).