Capital expenditure, loans and borrowing by the Council
25The expenditure by the Council on capital account or on lending to other persons shall be regulated by annual money Acts, the Bills for which shall be promoted by the Council and each of which shall make provision for a financial period consisting of a financial year (that is to say, a period of twelve months ending on the thirty-first day of March) and the immediately following six months.
26(1)During any such financial period as aforesaid, the Council may expend on capital account for such purposes as may be mentioned in the relevant annual money Act such sums as the Council think fit not exceeding the amounts specified in that Act in relation to those purposes for the first twelve months and the last six months respectively of that period.
(2)In addition to any other money which the Council are authorised by any such Act to expend for any purpose in the last six months of the relevant financial period, the Council may also expend for that purpose during those last six months any money which they are by that Act authorised to expend but have not expended for that purpose in the first twelve months of that period.
(3)Any money expended in the last six months of a financial period shall be treated as expenditure on account of the financial year comprising those six months.
27(1)During any such financial period as aforesaid the Council may lend to persons of any class mentioned in the next following sub-paragraph such sums as the Council think fit not exceeding the amounts specified in the relevant annual money Act in relation to loans to persons of that class for the first twelve months and the last six months respectively of that period.
(2)The classes of persons referred to in the foregoing sub-paragraph are—
(a)the London borough councils ;
(b)any other persons having power to levy or to issue a precept for a rate within Greater London or to make any charge on a rate leviable within Greater London or to take or charge within Greater London any due or imposition in the nature of a rate ;
(c)the governors or managers of educational institutions, including special or approved schools ;
(d)committees of school treatment centres ;
(e)the governors or committees of voluntary hostels, homes or other establishments ;
(f)persons desiring to borrow money under the Small Dwellings Acquisition Acts 1899 to 1923 or the Housing (Financial Provisions) Act 1958 ;
(g)persons of any other class specified in the relevant annual money Act.
(3)In addition to any other money which the Council are authorised by an annual money Act to lend to any class of persons in the last six months of a financial period, the Council may also lend to any persons of that class during those six months any money which the Council are by that Act authorised to lend but have not lent to persons of that class in the first twelve months of that period.
(4)A loan made under this paragraph during the last six months of a financial period shall be treated as a loan made on account of the financial year comprising those six months.
(5)Subject to the provisions of any enactment relating to the borrowing powers of the person concerned, any person shall have power to borrow from the Council any money which the Council are by virtue of the foregoing provisions of this paragraph authorised to lend to that person.
(6)Money lent under this paragraph shall be repaid to the Council with interest within such period as the borrower (with the consent of the Minister where his consent is necessary to the borrowing) and the Council may agree, but the period shall not exceed—
(a)in the case of money lent to a person borrowing as mentioned in sub-paragraph (2)(f) of this paragraph, eighty years ;
(b)in any other case, sixty years.
(7)Money lent under this paragraph may be made repayable either in one sum or by instalments or by a series of equal annual or other instalments comprising both principal and interest or otherwise as may be agreed between the Council and the borrower.
(8)Where the Council lend money to a person whose power to borrow is subject to the consent of the Minister, the consent of the Minister to the borrowing of the money shall be conclusive evidence that that person had power to borrow the money at the time when the consent was given.
28(1)If the whole of the amount authorised by an annual money Act to be expended for any authorised purpose in the first twelve or last six months of the relevant financial period aforesaid is not required to be so expended, the Council may with the approval of the Treasury expend for any other authorised purpose in those twelve or, as the case may be, six months (in addition to the amount authorised in relation to that other purpose) an amount not exceeding the unexpended portion of the first-mentioned amount.
(2)If by reason of unforeseen circumstances the amount authorised by an annual money Act to be expended for any authorised purpose in the first twelve or last six months of the relevant financial period aforesaid is found to be insufficient, the Treasury may on the application of the Council authorise the Council to expend for that purpose such further sums as it is shown to the satisfaction of the Treasury to be necessary or desirable for the Council so to expend, not exceeding in the aggregate such amount as may be authorised in that behalf by that Act in relation to those twelve or, as the case may be, six months.
(3)In ascertaining for the purposes of paragraph 26(2) or 27(3) of this Schedule the amount which may be expended for any authorised purpose in the last six months of the financial period aforesaid to which an annual money Act relates, there shall be taken into account the extent to which the sum authorised to be expended for that purpose in the first twelve months of that period has been expended under sub-paragraph (1) of this paragraph for any other authorised purpose.
(4)The provisions of paragraph 27(6) to (8) of this Schedule shall apply to any loan under this paragraph as they apply to any loan under that paragraph.
(5)In this paragraph references in connection with an annual money Act to expenditure for an authorised purpose are references to expenditure—
(a)on capital account for a purpose mentioned in that Act; or
(b)on loans to persons of a class either mentioned in paragraph 27(2)(a) to (f) of this Schedule or specified in that Act.
29Notwithstanding anything in section 195 of the Local Government Act 1933, the Council may borrow money for the purpose of expenditure on capital account or on lending if, but only if, the expenditure is authorised by an annual money Act; and where any such expenditure is so authorised the consent of the sanctioning authority within the meaning of Part IX of the said Act of 1933 shall not be required to any borrowing for the purpose thereof.