Local Government (Miscellaneous Provisions) Act 1953

2 Capital funds

(1) Subject to the provisions of this section, a local authority by whom a capital fund is established under section one of this Act may pay into that fund—

(a) any sums derived from the sale of any property of the local authority, not being property held by them for any such purposes as are mentioned in subsection (2) of section one of this Act;

(b) the whole or any part of the surplus of the revenue income over the revenue expenditure of the county fund or the general rate fund, as the case may be, on the thirty-first day of March in any year, except so far as required by law to be applied to or carried forward for any other purpose ; and

(c) such other sums from the county fund or the general rate fund, as the case may be, as the local authority may by resolution direct;

and shall pay into that fund a sum equal to the amount of any income arising from the fund which is carried to the county fund or the general rate fund, as the case may be, under subsection (3) of section one of this Act.

(2) The aggregate amount paid by a local authority into a capital fund under paragraphs (b) and (c) of subsection (1) of this section shall not, except with the consent of the Minister, exceed in any year the equivalent of the product of a rate in the pound for the area of the authority (as defined by subsections (3) and (4) of section one hundred and forty-four of the Local Government Act, 1948) of the following sum, that is to say—

(a) in the case of a local authority being the council of a county borough, four pence;

(b) in the case of a local authority being the council of a county, threepence;

(c) in the case of a local authority being the council of a metropolitan borough or county district, and in the case of the Common Council of the City of London, twopence ;

and no payment shall be made by the local authority into such a fund so as to make that fund exceed such sum as the Minister may from time to time determine either generally or in any particular case.

(3) In the case of an application of moneys in any such capital fund, the amount to be applied shall not in any one transaction exceed such sum as the Minister may from time to time determine as aforesaid.

(4) Except as provided by this section, all moneys derived from the sale of land which are applied from any such capital fund shall, and all other moneys applied from any such fund may if the local authority think fit, be repaid from ,the account to which those moneys are advanced by such annual instalments (with or without interest) and within such period as the local authority may determine.

(5) Except with the consent of the Minister, moneys comprised in any such capital fund which are derived from the sale of corporate land within the meaning of the Local Government Act, 1933, shall not be applied otherwise than in the acquisition of other corporate land; and subsection (4) of this section shall not apply to any such moneys which are applied in the acquisition of such land.