Part 3

Grants etc
Chapter 2

Other grants etc

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 Public Works Loan Commissioners.
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, a county council or a county borough council.