The Local Government Changes for England (Capital Finance) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

Part II of the Local Government Act 1992 makes provision for local government changes in England. The Local Government Commission for England makes recommendations to the Secretary of State about such changes, and, where recommendations for change are made, the Secretary of State may make an order giving effect to those recommendations.

These Regulations make provision of general application for the purposes or in consequence of such orders with respect to the application of Part IV (“Part IV”) of the Local Government and Housing Act 1989 (“Part IV”) (revenue accounts and capital finance of local authorities) and the regulations made under Part IV (“the Capital Finance Regulations”).

Part II of the Regulations applies provisions of Part IV and the Capital Finance Regulations with modifications to local authorities affected by such changes. Regulations 3 and 4 make provision for things done by or in relation to an authority with respect to functions, property, rights and liabilities (“relevant matters”) which, by reason of the changes, are vested in another authority, to be treated as having been done by or in relation to that other authority.

Part III of the Regulations makes provision for adjusting the usable capital receipts of local authorities from whom and to whom relevant matters are transferred, and, in relation to the amount received by an authority for the disposal of land which is surplus to requirements, prescribes sums which are, and sums which are not, to be capital receipts.

Part IV of the Regulations makes provision for adjusting the amount for the time being set aside as provision to meet credit liabilities by local authorities from whom and to whom relevant matters are transferred.

Part V of the Regulations makes provision for the determination by local authorities from whom and to whom relevant matters are transferred of the amounts to be set aside from revenue as provision to meet credit liabilities. This Part prescribes the amount of, or adjustments to, the credit ceiling, adjusted credit ceiling and other amounts of an authority which are relevant for the determination of their minimum revenue provision in accordance with Part IV and the Capital Finance Regulations.

Part VI of the Regulations applies Schedule 6 to the 1990 Regulations with modifications to local authorities from whom and to whom relevant matters are transferred. That Schedule provides that an authority shall take account, in determining minimum revenue provision, of the effects of the commutation of contributions, grants and subsidies which took place on 1st October 1992 under section 157 of the 1989 Act.