Local Government and Housing Act 1989

33Promotion of economic development

(1)Subject to sections 34 and 35 below, the functions of every relevant authority shall include the taking of such steps as they may from time to time consider appropriate for promoting the economic development of their area.

(2)Subject to those sections and without prejudice to any other provision made by or under this Act, those steps may include participation in and the encouragement of, and provision of financial and other assistance for—

(a)the setting up or expansion of any commercial, industrial or public undertaking—

(i)which is to be or is situated in the authority’s area; or

(ii)the setting up or expansion of which appears likely to increase the opportunities for employment of persons living in that area;

and

(b)the creation or protection of opportunities for employment with any such undertaking or with any commercial, industrial or public undertaking opportunities for employment with which have been or appear likely to be made available to persons living in that area.

(3)For the purposes of this section a relevant authority shall be treated as providing financial assistance to any person if they do or agree to do any of the following, that is to say—

(a)make a grant to that person;

(b)make a loan to that person or provide him with any other form of credit;

(c)guarantee the performance of any of that person’s obligations;

(d)indemnify that person in respect of any liability, loss or damage;

(e)invest in that person’s undertaking, in the case of a body corporate, by acquiring share or loan capital in that body or otherwise;

(f)provide that person with any property, services or other financial benefit (including the remission in whole or in part of any liability or obligation) for no consideration or for a consideration which does not satisfy such conditions as may be specified in regulations made by the Secretary of State;

(g)join with any other person in doing anything falling within paragraphs (a) to (f) above;

(h)enter into such other transaction, in the nature of anything falling within paragraphs (a) to (g) above, as may be specified in regulations made by the Secretary of State.

(4)Regulations under this section may contain such incidental provision and such supplemental, consequential and transitional provision in connection with their other provisions as the Secretary of State considers appropriate.

(5)In this section and sections 34 and 35 below—

• “financial year” means the twelve months ending with 31st March;

• “relevant authority” means the council of any county, district or London borough, the Common Council of the City of London in its capacity as a local authority or the Council of the Isles of Scilly.