Part 3

Grants etc
Chapter 1

Expenditure grant

Power to pay grant
31
1
A Minister of the Crown may pay a grant to a local authority in England towards expenditure incurred or to be incurred by it.
2
A Minister of the Crown, or the National Assembly for Wales, may pay a grant to a local authority in Wales towards expenditure incurred or to be incurred by it.
3
The amount of a grant under this section and the manner of its payment are to be such as the person paying it may determine.
4
A grant under this section may be paid on such conditions as the person paying it may determine.
5
Conditions under subsection (4) may, in particular, include—
a
provision as to the use of the grant;
b
provision as to circumstances in which the whole or part of the grant must be repaid.
6
In the case of a grant to a local authority in England, the powers under this section are exercisable with the consent of the Treasury.

Application to Greater London Authority
32
1
For the purposes of section 31, expenditure of a functional body shall be treated as expenditure of the Greater London Authority.
2
The conditions on which grant under section 31 may be paid include, in the case of a grant to the Greater London Authority, a condition requiring the Mayor to transfer the grant to a functional body.
3
A decision to pay a grant under section 31 subject to such a condition as is mentioned in subsection (2) above shall be notified to the functional body concerned as well as to the Greater London Authority.
4
Where a grant paid under section 31 to the Greater London Authority is paid subject to such a condition as is mentioned in subsection (2) above, the Mayor must transfer the grant to the functional body concerned forthwith.
5
Where a grant paid under section 31 to the Greater London Authority is not paid subject to such a condition as is mentioned in subsection (2) above, the Mayor may transfer the grant to a functional body.
6
Where grant under section 31 is transferred under this section to a functional body, any conditions to which the grant is subject shall apply to the transferee instead of the transferor.
7
In this section, “Mayor” means Mayor of London.

Interpretation of Chapter 1
33
1
The following are local authorities for the purposes of this Chapter—
a
a county council;
b
a county borough council;
c
a district council;
d
the Greater London Authority;
e
a London borough council;
f
the Common Council of the City of London, in its capacity as a local authority, police authority or port health authority;
g
the Council of the Isles of Scilly;
h. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
an authority established under section 10 of the Local Government Act 1985 (c. 51) (waste disposal authorities);
j
a joint authority established by Part 4 of that Act (fire and rescue services and transport);
ja. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
jb
an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009;
jc
a combined authority established under section 103 of that Act;
jd
a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;
je
a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021;
k
a joint planning board constituted for an area in Wales outside a National Park by an order under section 2(1B) of the Town and Country Planning Act 1990 (c. 8);
l
a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;
la
a fire and rescue authority created by an order under section 4A of that Act;
m
a police and crime commissioner.
2
In this Chapter—
- “functional body” has the same meaning as in the Greater London Authority Act 1999 (c. 29);
- “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975 (c. 26).
Chapter 2

Other grants etc

Best value grant: parishes
34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Best value grant: communities
35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants in connection with designation for service excellence
36
1
The appropriate person may pay any of the following to a best value authority which, in relation to any of its functions, is subject to the duty in section 3(1) of the Local Government Act 1999 (best value duty) or to a relevant Welsh authority—
a
a grant towards expenditure incurred by the authority in applying for the award of a designation based on excellence in the provision of services, and
b
where the authority is awarded such a designation—
i
a grant as a reward for being awarded such a designation, and
ii
a grant towards expenditure incurred or to be incurred by the authority in disseminating information about best practices.
2
The amount of a grant under this section and the manner of its payment are to be such as the appropriate person may determine.
3
A grant under this section may be paid on such conditions as the appropriate person may determine as to the circumstances in which the whole or any part of the grant must be repaid.
4
In subsection (1) “relevant Welsh authority” means—
a
a county council or county borough council in Wales;
b
a National Park authority for a National Park in Wales;
c
a fire and rescue authority in Wales, constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.

Grants by Ministers of the Crown in respect of best value authorities etc
36A
1
A Minister of the Crown may pay a grant to a person for use in, or in connection with, promoting or facilitating the economic, efficient and effective exercise of functions by a best value authority or best value authorities
or a relevant Welsh authority or relevant Welsh authorities
.
2
The power to make a grant under this section is exercisable only with the consent of—
a
the Treasury, and
b
in the case of a grant in respect of the exercise of functions by a
relevant Welsh authority
, the Welsh Ministers.
3
The power to pay a grant under this section does not include power to pay a grant to a best value authority
or a relevant Welsh authority
.
4
The amount of a grant under this section, and the method of payment, are to be such as the Minister of the Crown may determine.
5
A grant under this section may be paid on such conditions as the Minister of the Crown may determine.
6
Conditions under subsection (5) may, in particular, include—
a
provision as to the use of the grant;
b
provision as to circumstances in which the whole or part of the grant must be repaid.
7
For the purposes of this section—
- “
best value authority
” includes the Greater London Authority, whether exercising its functions through the Mayor or otherwise;
- “
Minister of the Crown
” has the same meaning as in the Ministers of the Crown Act 1975;
- “relevant Welsh authority” means—
  1. a county council or county borough council in Wales;
  2. a National Park authority for a National Park in Wales;
  3. a fire and rescue authority in Wales, constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.

Grants by Welsh Ministers in respect of Welsh principal councils
36B
1
The Welsh Ministers may pay a grant to a person for use in, or in connection with, promoting or facilitating
compliance by a Welsh principal council or Welsh principal councils with the performance requirements set out in section 89 of the Local Government and Elections (Wales) Act 2021 or the requirements of, or any requirements imposed under, Chapter 1 of Part 6 of that Act
.
2
The power to pay a grant under this section does not include power to pay a grant to a best value authority
or Welsh principal council
.
3
The amount of a grant under this section, and the method of payment, are to be such as the Welsh Ministers may determine.
4
A grant under this section may be paid on such conditions as the Welsh Ministers may determine.
5
Conditions under subsection (4) may, in particular, include—
a
provision as to the use of the grant;
b
provision as to circumstances in which the whole or part of the grant must be repaid.
6
For the purposes of this section—
- “
best value authority
” includes the Greater London Authority, whether exercising its functions through the Mayor or otherwise;
- “Welsh principal council” means a county council or county borough council in Wales.

Emergency financial assistance to combined fire authorities
37
In section 155 of the Local Government and Housing Act 1989 (c. 42) (emergency financial assistance to local authorities), in subsection (4) (authorities that are local authorities for the purposes of that section), after paragraph (g) there is inserted
; or
h
a fire authority in England and Wales constituted by a combination scheme under the Fire Services Act 1947.

Local loans
38
1
The Secretary of State may, if he thinks it appropriate, make payments to the Treasury, in respect of local loans made under section 3 of the National Loans Act 1968, so as to reduce or extinguish such debt (whether then due or not) of a local authority in England to the Treasury as he thinks fit.
2
The National Assembly for Wales may, if it thinks it appropriate, make payments to the Treasury, in respect of local loans made under section 3 of the National Loans Act 1968, so as to reduce or extinguish such debt (whether then due or not) of a local authority in Wales to the Treasury as the Assembly thinks fit.
3
The amount—
a
required to extinguish a debt, or
b
by which a payment reduces a debt,
shall be such as may be determined by the Treasury.
4
The Treasury may refuse to accept a payment which the Secretary of State or the National Assembly for Wales proposes to make to them under this section.
5
In this section “local authority” means—
a
in relation to England—
i
a district council,
ii
a county council that is the council for a county in which there are no district councils,
iii
a London borough council,
iv
the Common Council of the City of London, or
v
the Council of the Isles of Scilly; and
b
in relation to Wales, a county council or a county borough council.

Payments towards local authority indebtedness
39
1
The Secretary of State may, if he thinks it appropriate, make payments to a local authority in England for application by the authority in reducing or extinguishing such debt (whether then due or not) of the authority as he thinks fit.
2
The National Assembly for Wales may, if it thinks it appropriate, make payments to a local authority in Wales for application by the authority in reducing or extinguishing such debt (whether then due or not) of the authority as the Assembly thinks fit.
3
The person making payments to a local authority under this section may specify how the payments are to be applied by the authority and may in particular specify—
a
the debt or debts to be extinguished, or
b
the debt or debts to be reduced.
4
A payment under this section may be made subject to conditions imposed by the person making the payment.
5
The conditions that may be imposed under subsection (4) include (in particular) conditions relating to the repayment in specified circumstances of all or part of the payment.
6
Payments made to a local authority under this section may not be applied in reducing or extinguishing any debt of the authority to the Treasury, in respect of local loans made under section 3 of the National Loans Act 1968.
7
In this section “local authority” means—
a
in relation to England—
i
a district council,
ii
a county council that is the council for a county in which there are no district councils,
iii
a London borough council,
iv
the Common Council of the City of London, or
v
the Council of the Isles of Scilly; and
b
in relation to Wales—
i
a county council,
ii
a county borough council, or
iii
a corporate joint committee established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021.

Local government finance reports: Wales
40
1
Schedule 2 (which makes provision for enabling the National Assembly for Wales to make two local government finance reports for a year, one dealing with police authorities and one dealing with other authorities and bodies) has effect.
2
This section applies in relation to the financial year beginning on 1st April 2004 and subsequent financial years.
S.39 partly in force; s. 39 in force for E. at 18.11.2003 see s. 128(2)(b)
S. 38 partly in force; s. 38 in force for E. at 18.11.2003 see s.128(2)(b)
Words in s. 36B(1) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(4)(a)
S. 31 functions made exercisable concurrently for specified purpose (8.5.2017) by The Cambridgeshire and Peterborough Combined Authority Order 2017 (S.I. 2017/251), arts. 1(3), 7
S. 37 in force at 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
S. 31(2)-(5) applied (1.4.2023 for specified purposes) by Police, Crime, Sentencing and Courts Act 2022 (c. 32), ss. 33, 34, 208(1); S.I. 2023/227, reg. 3(2)(d) (with reg. 4)
S. 32 applied (with modifications) (30.1.2021) by The West Yorkshire Combined Authority (Election of Mayor and Functions) Order 2021 (S.I. 2021/112), arts. 1(2), 16(3)
Words in s. 36B(6) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(4)(c)
S. 32 modified (8.5.2017) by The West Midlands Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/510), arts. 1(2), 16
Words in s. 36(1) substituted (1.4.2008) by Local Government and Public Involvement in Health Act 2007 (c. 28), s. 245(5), Sch. 8 para. 25(2); S.I. 2008/917, art. 2(1)(e)
S. 38 heading substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(2) (with art. 9)
S. 39(7)(b) substituted (25.3.2022) by The Corporate Joint Committees (General) (Wales) Regulations 2022 (S.I. 2022/372), regs. 1(2), 17
S. 33(1)(jb)(jc) inserted (17.12.2009) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), s. 148(6), Sch. 6 para. 117(3); S.I. 2009/3318, art. 2(c)
S. 31 modified (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 7(6)
S. 33(1)(l) substituted (1.10.2004 except in relation to W. otherwise 10.11.2004) by Fire and Rescue Services Act 2004 (c. 21), s. 61, Sch. 1 para. 101; S.I. 2004/2304, art. 2; S.I. 2004/2917, art. 2
Words in s. 38(3) substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(5) (with art. 9)
S. 40 in force W. at 27.11.2003 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
S. 31: functions made exercisable concurrently (30.1.2021) by The West Yorkshire Combined Authority (Election of Mayor and Functions) Order 2021 (S.I. 2021/112), arts. 1(2), 17
Words in s. 36A(1) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(3)(a)
S. 33(1)(jd) inserted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 151 (with s. 247)
S. 34 repealed (1.4.2008) by Local Government and Public Involvement in Health Act 2007 (c. 28), s. 245(5), Sch. 7 para. 3(2), Sch. 18 Pt. 8; S.I. 2008/917, art. 2(1)(a)(i)(v)
Words in s. 36A(3) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(3)(c)
S. 32 applied (with modifications) (8.5.2017) by The Greater Manchester Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/612), arts. 1(3), 7
S. 32 applied (with modifications (28.7.2020) by The Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Functions and Amendment) Order 2020 (S.I. 2020/806), arts. 1, 13(3)
Words in s. 38 substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(4) (with art. 9)
Words in s. 36(1) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(2)(a)
S. 32 applied (with modifications) (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 17(3) (with art. 28)
Words in s. 38(4) substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(6) (with art. 9)
S. 39 in force at 27.11.2003 for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
S. 35 repealed (1.4.2008) by Local Government and Public Involvement in Health Act 2007 (c. 28), s. 245(5), Sch. 7 para. 3(2), Sch. 18 Pt. 8; S.I. 2008/917, art. 2(1)(a)(i)(v)
S. 32 applied (with modifications) (8.5.2017) by The Liverpool City Region Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/430), arts. 1(3), 13
S. 31: functions made exercisable (7.5.2024) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(3), 27
Words in s. 33(1)(j) substituted (1.4.2005) by Civil Contingencies Act 2004 (c. 36), s. 34(1), Sch. 2 para. 10(3)(e); S.I. 2005/772, art. 2(b)
S. 32 applied (with modifications) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 13(3)
S. 36 in force at 18.11.2003 for E. by S.I. 2003/2938, art. 3(a) (with art. 8, Sch.)
S. 36(4) inserted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(2)(b)
S. 38 in force at 27.11.2003 for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
S. 31 modified (8.5.2017) by The Tees Valley Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/431), arts. 1(2), 3(6)
S. 31 functions made exercisable (8.5.2017) by The Liverpool City Region Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/430), arts. 1(3), 14(1)
S. 33(1)(la) inserted (31.1.2017 for specified purposes, 3.4.2017 in so far as not already in force) by Policing and Crime Act 2017 (c. 3), s. 183(1)(5)(e), Sch. 1 para. 83(3); S.I. 2017/399, reg. 2, Sch. para. 38
S. 31 modified (8.5.2017) by The Greater Manchester Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/612), arts. 1(3), 8(6)
S. 32 applied (with modifications) (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 12(3)
Words in s. 36A(2)(b) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(3)(b)
S. 33(1)(m) substituted (22.11.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), ss. 27(4), 157(1), Sch. 16 para. 319; S.I. 2012/2892, art. 2(a)(i)
Words in s. 38 substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(3) (with art. 9)
S. 31 functions made exercisable concurrently (28.7.2020) by The Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Functions and Amendment) Order 2020 (S.I. 2020/806), arts. 1, 4
S. 33(1)(h) omitted (1.4.2005) by virtue of Courts Act 2003 (Consequential Provisions) Order 2005 (S.I. 2005/886), art. 1, Sch. para. 96
S. 31 modified (8.5.2017) by The West Midlands Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/510), arts. 1(2), 3(6)
Ss. 36A, 36B inserted (30.12.2007) by Local Government and Public Involvement in Health Act 2007 (c. 28), ss. 143(1), 245(2) (with s. 143(2))
S. 32 applied (with modifications) (8.5.2017) by The West Midlands Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/510), arts. 1(2), 16
S. 31: functions made exercisable concurrently (with modifications) (7.5.2024) by The North East Mayoral Combined Authority (Establishment and Functions) Order 2024 (S.I. 2024/402), arts. 1(3), 27 (with art. 9)
S. 31 functions made exercisable concurrently (8.5.2017) by The Tees Valley Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/431), arts. 1(2), 3(1), (2)
S. 32 applied (with modifications) (8.5.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(4), 17
S. 31: functions made exercisable concurrently (with modifications) (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 22
Words in s. 36A(7) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(3)(d)
Words in s. 39(6) substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 83 (with art. 9)
Words in s. 36B heading substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(4)(d)
S. 32 applied (with modifications) (3.3.2017) by The Tees Valley Combined Authority (Functions) Order 2017 (S.I. 2017/250), arts. 1(2), 8
S. 33(1)(ja) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 13 para. 6(32)(b); S.I. 2015/994, art. 6(g)
S. 37 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)
S. 36 in force at 27.11.2003 for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I
Words in s. 36B(2) substituted (1.4.2021) by The Local Government and Elections (Wales) Act 2021 (Consequential Amendments) Regulations 2021 (S.I. 2021/296), regs. 1(2), 5(4)(b)
S. 31: functions made exercisable concurrently (with modifications) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 21
S. 32 applied (with modifications) (7.5.2024) by The North East Mayoral Combined Authority (Establishment and Functions) Order 2024 (S.I. 2024/402), arts. 1(3), 41(3) (with art. 9)
S. 31: functions made exercisable concurrently (with modifications) (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 12
S. 31: functions made exercisable concurrently (with modifications) (5.2.2025) by The Devon and Torbay Combined County Authority Regulations 2025 (S.I. 2025/115), regs. 1(2), 14
S. 31: functions made exercisable concurrently (with modifications) (5.2.2025) by The Greater Lincolnshire Combined County Authority Regulations 2025 (S.I. 2025/117), regs. 1(2), 20
S. 31: functions made exercisable concurrently (with modifications) (5.2.2025) by The Lancashire Combined County Authority Regulations 2025 (S.I. 2025/118), regs. 1(2), 15
S. 32 applied (with modifications) (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 20(3)
S. 32 applied (with modifications) (5.2.2025) by The Greater Lincolnshire Combined County Authority Regulations 2025 (S.I. 2025/117), regs. 1(2), 12(3)
S. 33(1)(je) inserted (W.) (20.10.2025) by The Corporate Joint Committees (Amendment to the Local Government Act 2003) (Wales) Regulations 2025 (S.I. 2025/1087), regs. 1, 2