The Local Authorities (Capital Finance) Regulations 1990

Regulation 14

SCHEDULE 1RESERVED PART OF CAPITAL RECEIPTS

PART IENGLAND AND WALES

PART IIWALES

Regulation 18

SCHEDULE 2CAPITAL RECEIPTS TO BE TREATED AS REDUCED: REPLACEMENT OF ASSETS

PART INEW LAND OR BUILDING USED FOR SAME PURPOSE Use for any of the following purposes, namely–

1.  as a library,

2.  as local authority offices,

3.  as a fire station,

4.  as a community hall,

5.  as a training workshop,

6.  as a market,

7.  as a bus station,

8.  as a car park,

9.  for the disposal of controlled waste within the meaning of Part I of the Control of Pollution Act 1974(10) (waste on land),

10.  for the purposes of the local authority’s social services functions within the meaning of the Local Authority Social Services Act 1970(11),

11.  for the purposes of the police service, other than as a dwelling,

12.  for the purposes of the probation service,

13.  for the purposes of magistrates' court services,

14.  for the purposes of the local authority’s functions conferred on them under section 2 of the Civil Defence Act 1948,

15.  as a recreational facility or any other facility provided by the local authority pursuant to section 19 of the Local Government (Miscellaneous Provisions) Act 1976(12),

16.  as public open space.

PART IINEW LAND OR BUILDING USED FOR A CORRESPONDING PURPOSE

Regulation 21

SCHEDULE 3MODIFICATIONS OF INITIAL CREDIT CEILING AND CREDIT CEILING ON OR AFTER 1ST APRIL 1990

PART IINITIAL CREDIT CEILING

1.  The initial credit ceiling of a local authority (“the designated authority”) shall be increased by so much of the amounts, if any, of money which, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985(14), a local authority are deemed to have borrowed from the designated authority or is to be treated as the designated authority’s transferred debt, as–

(a)has not been repaid before 1st April 1990; and

(b)is not shown in the designated authority’s accounts as an advance from a loans fund established by the designated authority under paragraph 15 of Schedule 13 to the Local Government Act 1972(15).

2.  The initial credit ceiling of a local authority shall be reduced by an amount equal to the aggregate of the amounts, if any, falling within paragraph 8(1)(a) of Schedule 3 to the Act which relate to–

(a)money which the authority are deemed to have borrowed by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985;

(b)advances in respect of which sums fall to be paid by virtue of an order made under section 51(2), 58(2) or 67(4) of, or paragraph 7 or 9 of Schedule 10 to, the Local Government Act 1972, by virtue of regulations made under section 67(1) or (2) of that Act, or by virtue of an agreement made under section 68 of that Act, by the authority to any body in relation to any matter which has been transferred by virtue of the order, regulations or agreement, as the case may be, from that body to the authority;

(c)advances in respect of which sums fall to be paid by virtue of an order made under section 254(1) or (2)(a) or (d) of the Local Government Act 1972 by the authority to any body in relation to any matter which has been transferred by virtue of the Local Government Act 1972 or the order from that body to the authority; and

(d)advances in respect of which sums fall to be paid by virtue of an order made under section 23(3) or 84 of the London Government Act 1963(16) by the authority to any body in relation to any matter which has been transferred by virtue of the order from that body to the authority.

PART IICREDIT CEILING ON OR AFTER 1ST APRIL 1990

3.  The modification to be made in determining at any time on or after 1st April 1990 a local authority’s credit ceiling is that no account shall be taken of any amount set aside by the authority in accordance with regulation 26(1)(e).

Regulation 24

SCHEDULE 4ADJUSTED INITIAL CREDIT CEILING AND ADJUSTED CREDIT CEILING

PART IADJUSTED INITIAL CREDIT CEILING

The modifications to be made in determining a local authority’s adjusted initial credit ceiling are that no account shall be taken of–

(a)the amounts, if any, falling within paragraph 8(1)(a) of Schedule 3 to the Act which relate to advances in respect of which sums fall to be paid to the authority by any body by virtue of–

(i)an order made under section 51(2), 58(2) or 67(4) of, or paragraph 7 or 9 of Schedule 10 to, the Local Government Act 1972, regulations made under section 67(1) or (2) of that Act, or an agreement made under section 68 of that Act, in relation to any matter which has been transferred by virtue of the order, regulations or agreement, as the case may be, from the authority to the body;

(ii)an order made under section 254(1) or (2)(a) or (d) of the Local Government Act 1972 or under those provisions as extended by section 34(1) of, and paragraph 5(2)(b) of Schedule 6 to, the Water Act 1973(17), in relation to any matter which has been transferred by virtue of the Local Government Act 1972 or the order from the authority to the body; or

(iii)an order made under section 23(3) or 84 of the London Government Act 1963 in relation to any matter which has been transferred by virtue of the order from the authority to the body;

(b)the amounts, if any, falling within paragraph 8(1)(a) of Schedule 3 to the Act which are taken into account in determining the initial credit ceiling of the authority (“the designated authority”) and which relate to money which, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985, a local authority are deemed to have borrowed from the designated authority or is to be treated as the designated authority’s transferred debt;

(c)the amount, if any, by which the designated authority’s initial credit ceiling is increased in accordance with paragraph 1 of Schedule 3 to these Regulations; and

(d)the amounts, if any, falling within paragraph 8(1)(a) of Schedule 3 to the Act which relate to advances made by the authority on or before 30th September 1989 to a housing association (within the meaning of the Housing Associations Act 1985) in connection with expenditure in respect of which the association received or is to receive a grant made under section 50 of the Housing Act 1988, section 41(1) of the Housing Associations Act 1985 or section 29(1) of the Housing Act 1974.

PART IIADJUSTED CREDIT CEILING

The modifications to be made in determining at any time on or after 1st April 1990 a local authority’s adjusted credit ceiling are that the determination shall be on the basis of their adjusted initial credit ceiling and that no account shall be taken of–

(a)the reserved part of a capital receipt which is set aside under section 59(1) where the sum in question is a capital receipt in accordance with regulation 12;

(b)any amount set aside by virtue of regulations 25(1)(c) or 26(1)(d); and

(c)the reserved part of a capital receipt which is set aside under section 59(1) where the receipt is derived from the repayment of such an advance as is referred to in sub-paragraph (d) of Part I of this Schedule.

Regulations 25 and 26

SCHEDULE 5MINIMUM REVENUE PROVISION

PART IHOUSING AND NON-HOUSING AMOUNTS FOR INITIAL FINANCIAL YEAR

1.—(1) A local authority’s housing amount for the financial year beginning on 1st April 1990 shall be–

(a)if their total housing advances are equal to or less than their total housing receipts, nil; and

(b)if their total housing advances exceed their total housing receipts, the amount of any such excess less the amount, if any, by which their total non-housing receipts exceed their total non-housing advances, provided that the housing amount shall not thereby be less than nil.

(2) A local authority’s non-housing amount for the financial year beginning on 1st April 1990 shall be–

(a)if their total non-housing advances are equal to or less than their total non-housing receipts, nil; and

(b)if their total non-housing advances exceed their total non-housing receipts, the amount of any such excess less the amount, if any, by which their total housing receipts exceed their total housing advances, provided that the non-housing amount shall not thereby be less than nil.

2.  For the purposes of paragraph 1 above–

(a)any reference to a local authority’s total housing advances is a reference to the total of so much of any advances taken into account in determining the authority’s adjusted initial credit ceiling as has not been repaid before 1st April 1990 where such advances were made for the purpose of meeting expenditure which, if it had been charged on 1st April 1990 to a revenue account, would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account, other than any advances falling within regulation 25(1)(b);

(b)any reference to a local authority’s total housing receipts is a reference to the total of the receipts which the authority are required, in accordance with paragraph 9(1)(a) of Schedule 3 to the Act, to bring into account to determine their adjusted initial credit ceiling where such receipts were received in respect of the disposal of houses, dwellings or other property of the authority which, if they had been acquired on 1st April 1990, would have been houses, dwellings or other property to which section 74(1) applied on that date;

(c)any reference to a local authority’s total non-housing advances is a reference to the total of so much of any advances taken into account in determining the authority’s adjusted initial credit ceiling as has not been repaid before 1st April 1990 other than any advances falling within regulation 25(1)(b) or sub-paragraph (a) above; and

(d)any reference to a local authority’s total non-housing receipts is a reference to the total of the receipts which the authority are required to bring into account to determine their adjusted initial credit ceiling other than any receipts falling within sub-paragraph (b) above.

PART IIHOUSING AND NON-HOUSING AMOUNTS FOR SUBSEQUENT FINANCIAL YEARS

3.—(1) A local authority’s housing amount for any financial year other than that beginning on 1st April 1990 shall be–

(a)if the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is nil or is less than nil, nil; and

(b)if the authority’s housing component is greater than nil an amount equal to the housing component less the amount, if any, by which the non-housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is less than nil, provided that the authority’s housing amount shall not thereby be less than nil;

and for the purposes of paragraph (b) above the authority’s non-housing component is the amount determined by the authority in accordance with paragraph 5 below.

(2) In relation to a local authority’s housing amount for the financial year beginning on 1st April 1991, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall, subject to sub-paragraph (4) below, be the amount by which the total of–

(a)the housing component of the authority’s adjusted initial credit ceiling, and

(b)the amount of any housing increase in the authority’s adjusted credit ceiling in the financial year beginning on 1st April 1990,

exceeds the amount of any housing reduction of the authority’s adjusted credit ceiling in that year, and if there is no such excess, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be nil, or, as the case may be, a negative amount.

(3) In sub-paragraph (2) above, the reference to the housing component of the authority’s adjusted initial credit ceiling is a reference to the amount by which the authority’s total housing advances exceeds their total housing receipts determined in accordance with sub-paragraphs (a) and (b) respectively of paragraph 2 above, or if there is no such excess, nil or, as the case may be, a negative amount.

(4) If, by virtue of paragraph 16(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the financial year beginning on 1st April 1990 is nil, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in that year by virtue of regulation 25(1)(b) and (2)(c) in respect of–

(a)any advances which were made for the purpose of meeting expenditure which, if it had been charged on 1st April 1990 to a revenue account, would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account; and

(b)any transitional credit arrangements for any purpose for which, if expenditure had been incurred and charged to a revenue account on 1st April 1990, it would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account; if the authority’s initial credit ceiling had been greater than nil.

(5) In relation to a local authority’s housing amount for a financial year beginning on or after 1st April 1992 (referred to in this sub-paragraph and sub-paragraph (6) below as “the current year”), the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year (referred to in this sub-paragraph and sub-paragraph (6) below as “the preceding year”) shall, subject to sub-paragraph (6) below, be the amount by which the total of–

(a)the housing component of the authority’s adjusted credit ceiling on the last day of the financial year beginning two years before the beginning of the current year, and

(b)the amount of any housing increase in the authority’s adjusted credit ceiling in the preceding year,

exceeds the amount of any housing reduction of the authority’s adjusted credit ceiling in the preceding year, and if there is no such excess, the housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be nil, or, as the case may be, a negative amount.

(6) If, by virtue of paragraph 15(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the preceding year is nil, the housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in the preceding year by virtue of regulation 26(1)(b) and (c) and (2)(c) in respect of–

(a)any advances falling within paragraph (a) of sub-paragraph (4) above;

(b)the housing use of any supplementary credit approvals; and

(c)any transitional credit arrangements falling within paragraph (b) of sub-paragraph (4) above;

if the authority’s credit ceiling on the last day of the financial year beginning two years before the beginning of the current year had been greater than nil.

4.  For the purposes of paragraph 3(2) and (5) above,–

(a)the amount of any housing increase in a local authority’s adjusted credit ceiling in a financial year shall be the amount, if any, by which their adjusted credit ceiling is increased during that year in accordance with paragraph 11(1) of Schedule 3 to the Act in respect of the housing use of any credit approvals other than credit approvals which fall within section 54(5); and

(b)the amount of any housing reduction of a local authority’s adjusted credit ceiling in a financial year (“the year”) shall be the aggregate of–

(i)either–

(a)if the year begins on 1st April 1990 and the housing component of the authority’s adjusted initial credit ceiling is a positive amount, 2 per cent. of that amount; or

(b)if the year begins on or after 1st April 1991 and the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is a positive amount, 2 per cent. of that amount; and

(ii)the amount, if any, by which their adjusted credit ceiling is reduced during the year in accordance with paragraph 12(1) of Schedule 3 to the Act in respect of any amounts set aside which–

(a)fall to be set aside under section 59(1) or 61(4) or under paragraph 7(2) of Schedule 3 to the Act in relation to the disposal of houses, dwellings or other property of the authority to which section 74(1) applied immediately before the disposal, or in the case of a disposal before 1st April 1990, to which section 74(1) would have applied if the disposal had been made on 1st April 1990; or

(b)are set aside in accordance with a determination under section 50(3)(c) or 60(2) referring to a credit arrangement which is excluded for the purposes of paragraph 11(2) of Schedule 3 to the Act by virtue of regulation 22 and which is for a purpose for which, if expenditure had been incurred and charged to a revenue account, it would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account.

5.—(1) A local authority’s non-housing amount for any financial year other than that beginning on 1st April 1990 shall be–

(a)if the non-housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is nil or is less than nil, nil; and

(b)if the authority’s non-housing component is greater than nil an amount equal to the non-housing component less the amount, if any, by which the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is less than nil, provided that the authority’s non-housing amount shall not thereby be less than nil;

and for the purposes of paragraph (b) above the authority’s housing component is the amount determined by the authority in accordance with paragraph 3 above.

(2) In relation to a local authority’s non-housing amount for the financial year beginning on 1st April 1991, the non-housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall, subject to sub-paragraph (4) below, be the amount by which the total of–

(a)the non-housing component of the authority’s adjusted initial credit ceiling, and

(b)the amount of any non-housing increase in the authority’s adjusted credit ceiling in the financial year beginning on 1st April 1990,

exceeds the amount of any non-housing reduction of the authority’s adjusted credit ceiling in that year, and if there is no such excess, the non-housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be nil, or, as the case may be, a negative amount.

(3) In sub-paragraph (2) above, the reference to the non-housing component of the authority’s adjusted initial credit ceiling is a reference to the amount by which the authority’s total non-housing advances exceeds their total non-housing receipts determined in accordance with sub-paragraphs (c) and (d) respectively of paragraph 2 above, or if there is no such excess, nil or, as the case may be, a negative amount.

(4) If, by virtue of paragraph 16(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the financial year beginning on 1st April 1990 is nil, the non-housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in that year by virtue of regulation 25(1)(b) and (2)(c) in respect of–

(a)any advances other than advances falling within paragraph 3(4)(a) above; and

(b)any transitional credit arrangements other than transitional credit arrangements falling within paragraph 3(4)(b) above;

if the authority’s initial credit ceiling had been greater than nil.

(5) In relation to a local authority’s non-housing amount for a financial year beginning on or after 1st April 1992 (referred to in this sub-paragraph and sub-paragraph (6) below as “the current year”), the non-housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year (referred to in this sub-paragraph and sub-paragraph (6) below as “the preceding year”) shall, subject to sub-paragraph (6) below, be the amount by which the total of–

(a)the non-housing component of the authority’s adjusted credit ceiling on the last day of the financial year beginning two years before the beginning of the current year; and

(b)the amount of any non-housing increase in the authority’s adjusted credit ceiling in the preceding year,

exceeds the amount of any non-housing reduction of the authority’s adjusted credit ceiling in the preceding year, and if there is no such excess, the non-housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be nil, or, as the case may be, a negative amount.

(6) If, by virtue of paragraph 15(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the preceding year is nil, the non-housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in the preceding year by virtue of regulation 26(1)(b) and (c) and (2)(c) in respect of–

(a)any advances other than advances falling within paragraph 3(4)(a) above;

(b)the non-housing use of any supplementary credit approvals; and

(c)any transitional credit arrangements other than transitional credit arrangements falling within paragraph 3(4)(b) above;

if the authority’s credit ceiling on the last day of the financial year beginning two years before the beginning of the current year had been greater than nil.

6.  For the purposes of paragraph 5(2) and (5) above,–

(a)the amount of any non-housing increase in a local authority’s adjusted credit ceiling in a financial year shall be the aggregate of–

(i)the amount, if any, by which their adjusted credit ceiling is increased during that year in accordance with paragraph 11(1) of Schedule 3 to the Act in respect of any credit approvals other than credit approvals which fall within section 54(5) or in accordance with paragraph 14(2) of Schedule 3 to the Act provided that no account is taken for this purpose of any increase in the authority’s adjusted credit ceiling falling within paragraph 4(a) above; and

(ii)the excess amount;

(b)the amount of any non-housing reduction of a local authority’s adjusted credit ceiling in a financial year (“the year”) shall be the amount, if any, by which–

(i)the amount, if any, by which their adjusted credit ceiling is reduced during that year in accordance with paragraph 12(1) or 14(1) of Schedule 3 to the Act provided that no account is taken for this purpose of any reduction in respect of amounts set aside by virtue of regulation 25(1)(b) and (2)(c) or, as the case may be, regulation 26(1)(b) and (c) and (2)(c),

exceeds

(ii)the amount of any housing reduction of the authority’s adjusted credit ceiling in the year by virtue of paragraph 4(b) above;

(c)in sub-paragraph (a) above, the excess amount is the amount, if any, by which the amount falling within paragraph (ii) of sub-paragraph (b) above exceeds the amount falling within paragraph (i) of that sub-paragraph.

7.  In this Part of this Schedule,–

(a)“housing use” in relation to a credit approval means the extent to which a credit approval is used by a local authority as mentioned in section 56(3) where in reliance on the credit approval–

(i)expenditure is defrayed, which, if it had been charged to a revenue account, would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account, or

(ii)the authority enter into, or agree to a variation of, a credit arrangement for any purpose for which, if expenditure had been incurred and charged to a revenue account, it would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account;

(b)“non-housing use” in relation to a credit approval means the extent to which a credit approval is used by a local authority as mentioned in section 56(3) other than as described in sub-paragraph (a) above.

PART IIITHE RELEVANT AMOUNT

8.—(1) A local authority’s relevant amount shall be the amount, if any, by which the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year exceeds the amount, if any, by which amount A exceeds amount B.

(2) Amount A is the aggregate of–

(a)so much of the amount determined in accordance with paragraph 8(1)(a) of Schedule 3 to the Act as is in respect of advances falling within regulation 25(1)(b);

(b)the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act; and

(c)so much of the amount of any supplementary credit approvals falling within section 54(5) as has been used by the authority as mentioned in section 56(3) in any financial year preceding the current financial year.

(3) Amount B is the aggregate of–

(a)any amounts set aside in any financial year preceding the current financial year by the authority by virtue of regulations 25(1)(b) and (2)(c) and 26(1)(b) and (c) and (2)(c); and

(b)if, by virtue of paragraph 15(2) or 16(2) of Schedule 3 to the Act, the authority’s minimum revenue provision for any financial year preceding the current financial year is nil, any amounts which would have been set aside by the authority in such a year by virtue of regulations 25(1)(b) and (2)(c) and 26(1)(b) and (c) and (2)(c) if the authority’s initial credit ceiling or, as the case may be, the authority’s credit ceiling had been greater than nil.