The Local Authority (Capital Finance and Accounting) (Scotland) Regulations 2016

Borrowing of money by a local authority

2.—(1) A local authority may borrow money—

(a) for financing capital expenditure of the local authority;

(b) to give a grant to any person, whether for use by that person or by a third party, towards expenditure which would be capital expenditure of the local authority if incurred by it;

(c) for expenditure incurred on works to any land or building in which the local authority does not have an interest, which would be capital expenditure of the local authority if it had an interest in that land or building;

(d) for treasury management activities;

(e) to lend to other statutory bodies and its common good funds, all as set out in Part 3; and

(f) for any other purpose for which the local authority is authorised under any enactment to borrow.

(2) A local authority may borrow money for a purpose other than those described in paragraph (1), but only—

(a) with the consent of the Scottish Ministers;

(b) for expenditure or lending that the authority has power to incur in the exercise of any of its functions;

(c) for expenditure or lending of such a nature that the Scottish Ministers are satisfied should be met by such borrowing; and

(d) on such terms and conditions as to repayment as the Scottish Ministers allow.

(3) A local authority may not borrow otherwise than in sterling, except with the consent of the Scottish Ministers.