The Local Authorities (Capital Finance) Regulations 1990

PART VIII MINIMUM REVENUE PROVISION

Interpretation

23.  In this Part–

“limited approval” means an approval given by the Secretary of State under paragraph 1(b) of Schedule 13 to the Local Government Act 1972(1) where the approval was given subject to a condition that any money borrowed by virtue of the approval was to be repaid by a particular date within 10 years from the date on which the approval was given;

“relevant period” in relation to any limited approval means the period commencing on 1st April 1990 and ending on the last day of the financial year in which the money borrowed by virtue of the approval is to be repaid;

“transitional credit arrangements” has the same meaning as in section 52.

Adjusted initial credit ceiling and adjusted credit ceiling

24.—(1) A local authority’s adjusted initial credit ceiling shall be their initial credit ceiling, determined in accordance with Part III of Schedule 3 to the Act, as modified for the purposes of Part IV of that Schedule in accordance with Part I of Schedule 4 to these Regulations.

(2) A local authority’s adjusted credit ceiling at any time shall be their credit ceiling at any such time, determined in accordance with Part III of Schedule 3 to the Act, as modified for the purposes of Part IV of that Schedule in accordance with Part II of Schedule 4 to these Regulations.

Minimum revenue provision for the financial year beginning on 1st April 1990

25.—(1) For the financial year beginning on 1st April 1990, the amount in respect of principal for the purposes of paragraph 16(1)(a) of Schedule 3 to the Act shall be the aggregate of–

(a) the percentages prescribed in paragraph (2) below of the amounts mentioned in that paragraph;

(b) an amount determined in accordance with paragraph (3) below in respect of any advances which were made before 1st April 1990 from a loans fund established by a local authority under paragraph 15 of Schedule 13 to the Local Government Act 1972 and which were made by virtue of a limited approval; and

(c) where any payments in respect of principal are required, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985(2), to be made by a local authority (“the designated authority”) into a fund in relation to a sum which, by virtue of the order, is to be treated as the designated authority’s transferred debt, an amount equal to the total of any such payments which fall to be made in the financial year beginning on 1st April 1990.

(2) The following percentages are prescribed for the purposes of paragraph 16(1)(a) of Schedule 3 to the Act in relation to amounts taken into account in determining a local authority’s adjusted initial credit ceiling–

(a) in the case of an authority who are required, under Part VI of the Act (housing finance), to keep a Housing Revenue Account for the financial year beginning on 1st April 1990, 2 per cent. of the housing amount and 4 per cent. of the non-housing amount where these amounts are determined in accordance with Part I of Schedule 5 to these Regulations;

(b) in the case of an authority not falling within sub-paragraph (a) above, 4 per cent. of the amount, if any, by which their adjusted initial credit ceiling exceeds the aggregate of–

(i) so much of the amount determined in accordance with paragraph 8(1)(a) of Schedule 3 to the Act as is in respect of advances falling within paragraph (1)(b) above; and

(ii) the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act; and

(c) 20 per cent. of the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act.

(3) For the purposes of sub-paragraph (b) of paragraph (1) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the financial year beginning on 1st April 1990 for the repayment of so much of the principal of any advance falling within that sub-paragraph as has not been repaid before 1st April 1990 if the repayment were to be made by way of equal annual sums during the relevant period in respect of the advance.

Minimum revenue provision for subsequent financial years

26.—(1) For any financial year (referred to in this regulation as “the current financial year”) other than that beginning on 1st April 1990, the amount in respect of principal for the purposes of paragraph 15(1)(a) of Schedule 3 to the Act shall be the aggregate of–

(a) the percentages prescribed in paragraph (2) below of the amounts mentioned in that paragraph;

(b) an amount determined in accordance with paragraph (3) below in respect of any advances which were made before 1st April 1990 from a loans fund established by a local authority under paragraph 15 of Schedule 13 to the Local Government Act 1972 and which were made by virtue of a limited approval;

(c) an amount determined in accordance with paragraph (4) below in relation to any supplementary credit approvals falling within section 54(5) issued to a local authority;

(d) where any payments in respect of principal are required, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985, to be made by a local authority (“the designated authority”) into a fund in relation to a sum which, by virtue of the order, is to be treated as the designated authority’s transferred debt, an amount equal to the total of any such payments which fall to be made in the current financial year; and

(e) the total of the amounts, if any, set aside by a local authority as provision to meet credit liabilities which were applied in the immediately preceding financial year in accordance with section 64(1)(b) in respect of any credit arrangement the initial cost of which was nil and which, at the time the amount was applied, had not been varied as mentioned in section 51(1).

(2) The following percentages are prescribed for the purposes of paragraph 15(1)(a) of Schedule 3 to the Act in relation to amounts taken into account in determining a local authority’s adjusted credit ceiling–

(a) in the case of an authority who are required, under Part VI of the Act, to keep a Housing Revenue Account for the current financial year, 2 per cent. of the authority’s housing amount and 4 per cent. of the authority’s non-housing amount where these amounts are determined in accordance with Part II of Schedule 5 to these Regulations;

(b) in the case of an authority not falling within sub-paragraph (a) above, 4 per cent. of the relevant amount where this amount is determined in accordance with Part III of Schedule 5 to these Regulations; and

(c) for any financial year beginning before 1st April 1995, 20 per cent. of the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act.

(3) For the purposes of sub-paragraph (b) of paragraph (1) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the current financial year for the repayment of so much of the principal of any advance falling within that sub-paragraph as has not been repaid before 1st April 1990 if the repayment were to be made by way of equal annual sums during the relevant period in respect of the advance.

(4) For the purposes of paragraph (1)(c) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the current financial year for the repayment of an amount equal to the extent to which any supplementary credit approval falling within section 54(5) has been used by the authority as mentioned in section 56(3) in any preceding financial year, if the repayment were to be made by way of equal annual sums over the amortisation period specified in the approval in question.

(1)

1972 c. 70. Part of paragraph 1(b) of Schedule 13 was repealed by Schedule 17 to the Local Government Act 1985 (c. 51).

(2)

1985 c. 51.