House of Commons
Other Bills before Parliament
|Local Government Finance (Supplementary Credit Approvals) Bill
|EXPLANATORY AND FINANCIAL MEMORANDUM
| The Bill makes two changes in the law relating to supplementary credit approvals issued by Ministers to local authorities in England and Wales under Part IV of the Local Government and Housing Act 1989. A supplementary credit approval authorises a local authority to incur capital expenditure for specified purposes.
| Clause 1 secures that, in determining the amount of such an approval, account may be taken of capital receipts which have been required to be set aside. This will, in particular, allow the controlled release of reserved receipts from the sale of council houses.
| Clause 2 secures that Ministers will no longer be required, when issuing an approval to an authority in respect of certain sorts of capital expenditure, to specify a period during which the authority must set aside sums from revenue to meet the expenditure for which the authority use the approval.
|Financial effects of the Bill
| It is intended to issue, in reliance on the power to take account of set aside capital receipts, supplementary credit approvals which will lead to an increase in the expenditure of local authorities.
| In the event of an approval being issued to a local authority to authorise housing expenditure, there could be an increase in the amount of Housing Revenue Account subsidy payable to the authority by the Secretary of State.
|Effects of the Bill on public service manpower
| It is possible that the Bill will lead to some increase in the number of local authority employees but it is not likely to affect central government staff numbers.
|Business compliance cost assessment
| The Bill's provisions will not give rise to any costs for business.
|© Parliamentary copyright 1997
|Prepared 22 May 1997