(This note is not part of the Regulations)
These Regulations amend the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 (“the 2003 Regulations”) and apply in relation to local authorities in Wales.
Regulation 3 substitutes new provisions for those in the 2003 Regulations which deal with the calculation of minimum revenue provision — the amount that a local authority charges to its revenue account in respect of the financing of capital expenditure. New regulation 22 replaces the requirement that local authorities undertake detailed calculations with a new duty to make prudent provision.
Regulation 4 amends certain provisions of regulation 24C of the 2003 Regulations, which is concerned with premiums and discounts on loans taken out by local authorities that are repaid early, so that they mirror equivalent provisions in regulation 24B.
Regulation 5 inserts new regulations 24E and 24F into Part 6 of the 2003 Regulations. The new regulations give local authorities some flexibility in the way they account for stepped interest rate loans entered into before 21 January 2008 and financial guarantees they gave before that date.