Local Government Act 2003 - legislation

1 Local Government Act 2003 CHAPTER 26 CONTENTSPART 1 CAPITAL FINANCE ETC AND ACCOUNTSCHAPTER 1 CAPITAL FINANCE ETCB orrowing1 Power to borrow2 Control of borrowing3 Duty to determine affordable borrowing limit4 Imposition of borrowing limits5 Temporary borrowing6 Protection of lendersCredit arrangements7 Credit arrangements 8 Control of credit arrangementsCapital receipts9 Capital receipt 10 Non-money receipts11 Use of capital receiptsInvestment12 Power to investLocal Government Act 2003 (c. 26)ivMiscellaneous13 Security for money borrowed etc14 InformationSupplementary15 Guidance16 Capital expenditure 17 External funds18 Local authority companies etc19 Application to parish and community councils20 DirectionsCHAPTER 2 ACCOUNTS21 Accounting practices22 Revenue account CHAPTER 3 GENERAL23 Local authority 24 WalesPART 2 FINANCIAL ADMINISTRATION25 Budget calculations: report on robustness of estimates etc26 Minimum reserves27 Budget calculations: report on inadequacy of controlled reserve28 Budget monitoring: general29 Budget monitoring.

2 Greater London Authority30 Authorisation of agreements during the prohibition periodPART 3 GRANTS ETCCHAPTER 1 EXPENDITURE GRANT31 Power to pay grant32 Application to Greater London Authority33 Interpretation of Chapter 1 Local Government Act 2003 (c. 26)vCHAPTER 2 OTHER GRANTS ETC34 Best value grant: parishes35 Best value grant: communities36 Grants in connection with designation for service excellence37 Emergency financial assistance to combined fire authorities38 Loans by Public Works Loan Commissioners39 Payments towards Local authority indebtedness40 Local Government finance reports: WalesPART 4 BUSINESS IMPROVEMENT DISTRICTSBID arrangements41 Arrangements with respect to business improvement districts42 Joint arrangements43 Additional contributions and action44 Duty to comply with arrangementsBID levy45 BID levy46 Liability for BID levyAdministration etc47 BID Revenue Account48 Administration of BID levy etcProcedure49 BID proposals50 Approval in ballot51 Power of veto52 Appeal against veto53 Commencement of BID arrangementsMiscellaneous54 Duration of BID arrangements etc55 Regulations about ballots56 Power to make further provision57 Crown application58 Wales59 Interpretation of Part 4 Local Government Act 2003 (c.)

3 26)viPART 5 NON-DOMESTIC RATES60 Submission of proposed rating lists61 Small business relief62 Calculation of non-domestic rating multiplier63 Rural settlement lists etc64 Relief for registered community amateur sports clubs65 Transitional relief66 Rating of meters67 Exemptions for agricultural buildings68 Exemption for places of religious worship69 Removal of power to prescribe rateable values70 Local retention of rates71 Adjustments for hardship relief72 Provision of information73 Interpretation of Part 5 PART 6 COUNCIL TAXL iability and amount of tax74 Exception of students from joint and several liability75 Second and empty homes76 Billing authority s power to reduce amount of tax payableValuation lists and bands77 Statutory

4 Revaluation cycle78 Power to change number of valuation bands79 Transitional arrangementsEnforcement80 Amendments relating to distress81 Charging orders: aggregation82 Quashing of liability ordersOther83 Major precepting authorities: combined fire authorities84 Amendment of section 67 of the Local Government Finance Act 199285 Vacant dwellings: use of information obtained for council tax purposes86 Repeal of section 31 of the Local Government Act 1999 PART 7 HOUSING FINANCE ETC87 Housing strategies and statements88 Housing Revenue Account business plansLocal Government Act 2003 (c. 26)vii89 Housing Revenue Account subsidy: payment and calculation90 Housing Revenue Account subsidy: negative amounts91 Housing Revenue Accounts etc: adaptation of enactments92 Local housing authority houses.

5 RentsPART 8 MISCELLANEOUS AND GENERALCHAPTER 1 MISCELLANEOUSC harging and trading93 Power to charge for discretionary services94 Power to disapply section 93(1)95 Power to trade in function-related activities through a company96 Regulation of trading powers97 Power to modify enactments in connection with charging or trading98 Procedure for orders under section 97 Performance categories99 Categorisation of English Local authorities by reference to performance100 Exercise of powers by reference to authorities performance categoriesContracting-out101 Staff transfer matters: general102 Staff transfer matters: pensions2004 Local Government elections103 Power to change date of elections in England104 Power to change date of elections in WalesValuation Tribunal Service105 The Valuation Tribunal Service106 Transfer to Service of property, rights and liabilitiesAudit Commission107 Auditors public interest reports: time allowed for consideration108 Auditors public interest reports: publicity109 Registered social landlords110 Financial year111 DelegationOther112 Standards Board for England: delegation113 Standards committees and monitoring officers: delegationLocal Government Act 2003 (c.)

6 26)viii114 Paid time off for councillors not to be political donation115 Overview and scrutiny committees: voting rights of co-opted members116 Local polls117 Generally accepted accounting practice: power to amend enactments118 Appropriate sum under section 137(4) of the Local Government Act 1972119 Use of fixed penalties paid for litter and dog-fouling offences120 Regulation of cosmetic piercing and skin-colouring businesses121 Fire brigade establishment schemes: removal of Secretary of State s functions122 Repeal of prohibition on promotion of homosexualityCHAPTER 2 GENERAL123 Orders and regulations124 General interpretation125 Application to Isles of Scilly126 Financial provisions127 Minor and consequential amendments and repeals128 Commencement129 Short title and extentSchedule 1 Capital finance: parish and community councils and chartertrusteesSchedule 2 Welsh Local Government finance reportsSchedule 3 Amendment of powers exercisable in relation to localauthoritiesSchedule 4 The Valuation Tribunal ServiceSchedule 5 Transfer schemes: further provisionSchedule 6 Section 120.

7 TransitionSchedule 7 Minor and consequential amendmentsSchedule 8 Repeals and revocationsPart 1 RepealsPart 2 RevocationsELIZABETH IIc. 26 Local Government Act 20032003 CHAPTER 26An Act to make provision about finance, and other provision, in connectionwith Local and certain other authorities; to provide for changing the dates oflocal elections in 2004; to amend the Audit Commission Act 1998; and forconnected purposes.[18th September 2003 ]E IT ENACTED by the Queen s most Excellent Majesty, by and with the advice andconsent of the Lords Spiritual and Temporal, and Commons, in this presentParliament assembled, and by the authority of the same, as follows: PART 1 CAPITAL FINANCE ETC AND ACCOUNTSCHAPTER 1 CAPITAL FINANCE ETCB orrowing1 Power to borrowA Local authority may borrow money (a)for any purpose relevant to its functions under any enactment, or(b)for the purposes of the prudent management of its financial of borrowing(1)A Local authority may not borrow money if doing so would result in a breachof (a)the limit for the time being determined by or for it under section 3, or(b)any limit for the time being applicable to it under section Government Act 2003 (c.)

8 26)Part 1 Capital finance etc and accountsChapter 1 Capital finance etc2(2)The Secretary of State may, in relation to specific borrowing by a particularlocal authority, by direction disapply subsection (1)(b), so far as relating to anylimit for the time being applicable under section 4(1).(3)A Local authority may not, without the consent of the Treasury, borrowotherwise than in sterling.(4)This section applies to borrowing under any power for the time being availableto a Local authority under any enactment, whenever to determine affordable borrowing limit(1)A Local authority shall determine and keep under review how much money itcan afford to borrow.(2)In the case of the following authorities, namely (a)the Greater London Authority, and(b)a functional body,the Mayor shall determine and keep under review how much money theauthority can afford to borrow.

9 (3)Before making any determination under subsection (2), the Mayor shallconsult the London Assembly.(4)Before making a determination under subsection (2) for a functional body, theMayor shall consult that body.(5)The Secretary of State may by regulations make provision about theperformance of the duty under subsection (1) or (2).(6)Regulations under subsection (5) may, in particular (a)make provision about (i)when a determination under subsection (1) or (2) is to be made,(ii)how such a determination is to be made, and(iii)the period for which such a determination is to be made;(b)make provision about the monitoring of an amount determined undersubsection (1) or (2);(c)make provision about factors to which regard may be had in making adetermination under subsection (1) or (2) or in monitoring an amountdetermined under that subsection.

10 (7)Regulations under subsection (5) may include provision requiring a personmaking a determination under subsection (1) or (2) to have regard to one ormore specified codes of practice, whether issued by the Secretary of State oranother.(8)A Local authority s function under subsection (1) shall be discharged only bythe authority.(9)Section 38(1) of the Greater London Authority Act 1999 (c. 29) (delegation byMayor) does not apply in relation to functions under subsection (2).(10)The power under subsection (7) is not to be read as limited to the specificationof an existing document.(11)In this section Local Government Act 2003 (c. 26)Part 1 Capital finance etc and accountsChapter 1 Capital finance etc3 functional body has the same meaning as in the Greater LondonAuthority Act 1999 (c.)