Local Government and Housing Act 1989

16 (1) Subject to sub-paragraphs (2) and (3) below, for the financial year beginning on 1st April 1990, a local authority’s minimum revenue provision shall be the aggregate of—

(a) an amount in respect of principal which, except in so far as regulations made by the Secretary of State otherwise provide, shall be the prescribed percentage of the authority’s adjusted initial credit ceiling; and

(b) an amount in respect of notional interest on each transitional credit arrangement entered into by the authority, other than an arrangement excluded by regulations under paragraph 11 above.

(2) If a local authority’s initial credit ceiling is nil or a negative amount, the authority’s minimum revenue provision for the financial year referred to in sub-paragraph (1) above shall be nil.

(3) In the case of a transitional credit arrangement falling within section 49(3) of this Act, the Secretary of State may by regulations provide that the amount referred to in sub-paragraph (1)(b) above is nil.