The Local Authorities (Capital Finance) (Rate of Discount for 2003/2004) (Wales) Regulations 2003

Welsh Statutory Instruments

2003 No. 894 (W.114)

LOCAL GOVERNMENT, WALES

The Local Authorities (Capital Finance) (Rate of Discount for 2003/2004) (Wales) Regulations 2003

Made

26th March 2003

Coming into force

1st April 2003

The National Assembly for Wales makes the following Regulations in exercise of the power given to the Secretary of State by section 49(2) of the Local Government and Housing Act 1989(1) which is now vested in the National Assembly for Wales so far as exercisable in Wales(2):

Name, commencement and application

1.—(1) The name of these Regulations is the Local Authorities (Capital Finance) (Rate of Discount for 2003/2004) (Wales) Regulations 2003 and they shall come into force on 1st April 2003.

(2) These Regulations apply to Wales only.

Rate of discount

2.  The percentage rate of discount prescribed for the financial year beginning on 1st April 2003 for the purposes of defining “r” in section 49(2) of the Local Government and Housing Act 1989 is 6.5 per cent.

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998(3)

D. Elis-Thomas

The Presiding Officer of the National Assembly

26th March 2003

Explanatory Note

(This note is not part of the Regulations)

Part IV of the Local Government and Housing Act 1989 (“the 1989 Act”) makes provision for the capital finance of local authorities.

Section 49(2) of the 1989 Act sets out a formula for determining, for the purposes of Part IV of that Act, the value of the consideration falling to be given by an authority under a credit arrangement in any financial year after the year in which the arrangement comes into being.

The percentage rate of discount prescribed for the financial year in which the credit arrangement came into being is one of the factors referred to in that formula.

For the financial year beginning on 1st April 2003 these Regulations prescribe the said percentage rate of discount of 6.5 per cent which is 0.2 per cent less than the rate of discount prescribed for 2002/2003.

(1)

1989 c. 42.

(2)

See article 2 of and Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672).

(3)

1998 c. 38.