The Local Government Changes for England (Capital Finance) (Amendment) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Local Government Changes for England (Capital Finance) Regulations 1995 (“the principal Regulations”) which make provision with respect to the application of Part IV of the Local Government and Housing Act 1989 (revenue accounts and capital finance of local authorities) for the purposes or in consequence of local government changes in England.

Regulations 3 and 4 amend Part III of the principal Regulations (Capital receipts) to make provision for the case where an abolished authority in relation to which there are two or more successor authorities, or a relinquishing authority, could before the reorganisation date have transferred, or applied towards expenditure for capital purposes, amounts set aside as provision to meet credit liabilities (“PCL”). Such usable PCL is taken into account, in the case of an abolished authority, by adjusting the usable capital receipts of the successor authorities, and in the case of a relinquishing authority, by adjusting the usable capital receipts of that authority and of the acquiring authorities. In the principal Regulations, the expressions “abolished authority” and “successor authority” have the same meaning as in Part III of the Local Government Changes for England (Finance) Regulations 1994 (S.I. 1995/2825), and any reference to a “relinquishing authority” is construed in accordance with regulation 2(3) of those Regulations.

Regulations 5 and 6 amend Part IV of the principal Regulations (Provision to meet credit liabilities) to provide for corresponding adjustments to the PCL of the designated authority. In the principal Regulations, any reference to a “designated authority” is construed, where there is one successor authority in relation to an abolished authority, as meaning that successor authority, and otherwise in accordance with regulation 13(1) of the Local Government Changes for England (Property Transfer and Transitional Payments) Regulations 1995 (S.I. 1995/402).

Regulation 7 amends Part V of the principal Regulations (Credit ceilings and minimum revenue provision) to provide for corresponding adjustments to the credit ceiling of the designated authority.