The Local Authorities (Capital Finance) (Amendment) Regulations 1998

• Citation: S.I. 1998/371
• Sections: 6

Section 1 Citation and commencement

These Regulations may be cited as the Local Authorities (Capital Finance) (Amendment) Regulations 1998 and shall come into force on 20th March 1998.

Section 2 Amendment of Regulations

The Local Authorities (Capital Finance) Regulations 1997 shall be amended in accordance with the following provisions of these Regulations.

Section 3 Credit arrangements – interpretation

In regulation 13, in paragraph (1), for the definition of “housing land” substitute the following definition–

“housing land” means any land, house or other building in respect of which sums fall to be credited or debited in accordance with section 74 (duty to keep Housing Revenue Account);

Section 4 Meaning of private finance transaction

For regulation 16 substitute the following regulation–

Meaning of private finance transaction

(16)

(1) In this regulation–

“asset” means–

any tangible asset, including (in particular) any land, house or other building, plant, machinery, vehicle, vessel, apparatus or equipment; or

any computer software; “relevant asset” means any asset apart from housing land; and

“works” means any works consisting of the construction, enhancement, replacement or installation of an asset, apart from works consisting of the construction of a house or other dwelling on housing land.

(2) For the purposes of this Part, a transaction is a private finance transaction if–

(a) the consideration received by the authority under the transaction includes–

(i) the provision or making available of a relevant asset or the carrying out of works for the purposes of, or in connection with, the discharge of a function of the authority; and

(ii) the provision of services for the purposes of, or in connection with, the discharge of the same function;

(b) the authority do not give to any person any undertaking or guarantee in respect of any obligations or liabilities of the person with whom they enter into the transaction (whether incurred under the transaction or otherwise);

(c) the consideration given by the authority under the transaction includes the payment of fees by instalments at annual or more frequent intervals;

(d) the fees are determined in accordance with provisions relating to–

(i) standards attained in the performance of the services; or

(ii) the extent, rate or intensity of use of the relevant asset, or, as the case may be, of the asset which is constructed, enhanced, replaced or installed under the transaction;

(e) the first instalment of fees falls to be paid after the services have started to be provided;

(f) the terms agreed for the transaction do not provide for an instalment of fees to be determined by reference to any factors other than–

(i) a specified sum or specified rate of payment;

(ii) a measure of the amount of work carried out under the transaction; and

(iii) the matters provided for in the provisions mentioned in sub-paragraph (d); and

(g) the terms agreed for the transaction do not provide for the specified sum or specified rate of payment to be increased by reference to any factors other than–

(i) a rise in costs attributable to a rise in the price of gas, electricity or fuel; and

(ii) the figure in Table 2.1 of Economic Trends published by the Office for National Statistics as the most recent percentage change, quarter on corresponding quarter of previous year, of the implied gross domestic product deflator at market prices.

Section 5 Disposal of unoccupied dwellings

In regulation 87, in sub-paragraph (c) of paragraph (2), for “Regeneration” substitute “Development”.

Section 6 Minimum revenue provision – use of certain credit approvals

(1) In regulation 130, for the definition of “relevant credit approval” substitute the following definition–

“relevant credit approval” means any supplementary credit approval other than one which is a credit approval within the meaning given to that expression in regulation 136;

(2) In regulation 136, in paragraph (1), for the definition of “credit approval” substitute the following definition–

“credit approval” means any supplementary credit approval which–

is issued to the authority in respect of expenditure which is treated as expenditure for capital purposes by virtue only of directions under section 40(6) (capital purposes); and

specifies an amortisation period.

(3) In regulation 153, in paragraph (a)(ii), for “supplementary credit approvals falling within section 54(5)” substitute “credit approval within the meaning given to that expression in regulation 136”.