(a) this section and sections 30, 36, 37, 72, 103, 104, 112, 117, 118 and 123;
(b) paragraphs 7, 9(1), 25(1), 28, 33(1), 34, 35, 40, 50(1) and 56 of Schedule 6,
and section 121(1) so far as relating thereto.
(2) The following provisions shall come into force at the end of the period of two
months beginning with the day on which this Act is passed—
(a) Chapter 1 of Part 3;
(b) sections 40 and 41, so far as relating to England;
(c) Part 6, except section 83;
(d) sections 87, 88, 91, 93 to 98 and 114;
(e) paragraphs 41 to 49, 51 to 53 and 75 of Schedule 6, and section 121(1) so
far as relating thereto;
(f) Schedule 7, so far as relating to—
(i) Part 4 of Schedule 4 to the Local Government and Housing Act
1989 (c. 42),
(ii) sections 22(2) and 25 of the Local Government Finance Act 1992
(iii) paragraphs 96 and 97 of Schedule 16 to the Local Government
(Wales) Act 1994 (c. 19), and
(iv) section 31 of the Local Government Act 1999 (c. 27) and section
136(1) of the Greater London Authority Act 1999 (c. 29),
and section 121(2) so far as relating thereto.
(3) The following provisions shall come into force on such day as the Secretary of
State may by order appoint—
(a) sections 64(2) and (11), 66, 83, 92(1), 99, 100(1), (2) and (4) to (8), 105 to
111, 113 and 119;
(b) section 101, so far as relating to England and so far as relating to a best
value authority in Wales mentioned in subsection (6) of that section;
(c) Schedules 4 and 5;
(d) paragraphs 1, 10, 11, 20, 21, 24(2), 25(4) to (6), 26(3), 27, 31, 33(2) and (4),
36 to 39, 61, 63 to 72 and 74 of Schedule 6, and section 121(1) so far as
(e) Schedule 7, so far as consequential on any of the provisions mentioned
in paragraphs (a) to (d), and section 121(2) so far as relating thereto.
(4) The following provisions shall come into force on such day as the National
Assembly for Wales may by order appoint—
(a) sections 40 and 41, so far as relating to Wales;
(b) sections 42, 63(6) and (7), 65 and 92(2);
(c) section 101, so far as relating to a best value authority in Wales, other
than one mentioned in subsection (6) of that section;
(d) Schedule 2;
(e) paragraphs 5, 9(2), 12 to 17, 22, 24(3), 25(2) and (3), 50(2), 54, 62 and 73
of Schedule 6, and section 121(1) so far as relating thereto;
(f) Schedule 7 so far as—
(i) relating to section 137(4C) of the Local Government Act 1972
(c. 70) and paragraph 30 of Schedule 15 to the Local
Government (Wales) Act 1994, or
(ii) consequential on any of the provisions mentioned in
paragraphs (a) to (e),
and section 121(2) so far as relating thereto.
(5) The remaining provisions of this Act—
(a) so far as relating to England, shall come into force on such day as the
Secretary of State may by order appoint, and
(b) so far as relating to Wales, shall come into force on such day as the
National Assembly for Wales may by order appoint.
(6) Power to make orders under this section is exercisable by statutory instrument.
(7) Orders under this section may make different provision for different purposes.
(8) A person who has power under this section to appoint a day for the coming
into force of a provision may by order make in connection with the coming into
force of that provision such transitional provision or saving as the person
considers necessary or expedient.
123 Short title and extent
(1) This Act may be cited as the Local Government Act 2003.
(2) Subject to the following provisions, this Act extends to England and Wales
(3) Section 83(2) extends also to Scotland.
(4) The following provisions extend also to Scotland, Northern Ireland and
(a) sections 103, 104 and 122,
(b) this section, and
(c) paragraph 7(2) of Schedule 6, and section 121(1) so far as relating
(5) Section 112 extends also—
(a) to Scotland, but only so far as (within the meaning of the Scotland Act
1998 (c. 46)) it confers or removes functions exercisable otherwise than
in or as regards Scotland, and
(b) to Northern Ireland.
(6) Each of sections 117 and 118, so far as relating to any other provision of this Act,
has the same extent as that other provision.
(7) Except as provided by subsection (8), any amendment, repeal or revocation
made by this Act has the same extent as the enactment or instrument to which
(8) Subsection (7) does not apply to—
(a) sections 85 and 112,
(b) paragraphs 8 and 52 of Schedule 6, and
(c) the entry in Schedule 7 relating to section 33 of the Local Government
Act 1988 (c. 9).
Capital finance: parish and community councils and charter trustees
1 The following are local authorities for the purposes of this Schedule—
(a) a parish council;
(b) a community council;
(c) charter trustees.
2 (1) Subject to sub-paragraph (2), a 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 affairs.
(2) A local authority may only borrow money (whether under sub-paragraph
(1) or otherwise)—
(a) for a purpose or class of purpose approved for the purposes of this
provision by the appropriate person, and
(b) in accordance with any conditions subject to which the approval is
(3) Sub-paragraph (2) does not apply—
(a) to borrowing by way of temporary loan or overdraft from a bank or
otherwise of sums which a local authority may temporarily
(i) for the purpose of meeting expenses pending the receipt of
revenues receivable by it in respect of the period of account
in which the expenses are chargeable, or
(ii) for the purpose of meeting expenses intended to be met by
means of borrowing in accordance with approval under sub-
paragraph (2), or
(b) to borrowing for the purpose of repaying money borrowed in
accordance with approval under sub-paragraph (2), where the new
borrowing takes place during the fixed period relating to the existing
(4) A local authority’s functions under this paragraph shall be discharged only
by the authority.
3 (1) Where a local authority meets any expenditure by borrowing, it shall in each
financial year debit the appropriate amount to the account from which that
expenditure would otherwise fall to be met; but that duty shall not prevent
the authority debiting a larger amount to that account.
(2) The appropriate amount for the purposes of sub-paragraph (1) is a sum
equivalent to an instalment of principal and interest combined such that if
paid annually it would secure the payment of interest at the due rate on the
outstanding principal together with the repayment of the principal not later
than the end of the fixed period.
(3) Sub-paragraph (1) has effect subject to sub-paragraph (4) if—
(a) a local authority makes an advance to any other person and the
expenditure incurred in making the advance is met by borrowing,
(b) the terms of that advance are such that repayment is to be made
otherwise than by equal instalments of principal and interest
(4) The local authority may debit to the account from which the expenditure
met by the borrowing would otherwise fall to be met sums of different
amounts (whether or not including instalments of principal) in respect of
different financial years in order to take account of the terms on which its
advance falls to be repaid.
4 (1) A local authority may lend to a qualifying local government body, on such
terms as they may agree, such sums as the body may require for any purpose
for which it is authorised by or under any enactment to borrow money.
(2) In sub-paragraph (1), “qualifying local government body” means a body
with local government functions which is specified for the purposes of this
paragraph by regulations made by the appropriate person.
5 In this Schedule, references to the fixed period, in relation to borrowing by a
local authority, are to the period within which the money borrowed is to be
repaid as determined by the local authority with the consent of the
Welsh local government finance reports
1 In Part 5 of the Local Government Finance Act 1988 (c. 41) (grants), after
section 84C there is inserted—
Revenue support grant: wales
84D Application of Chapter 3
This Chapter applies only in relation to Wales.