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PART I
GENERAL
Citation, commencement and interpretation
1
1
These Regulations may be cited as the Local Authorities (Capital Finance) Regulations 1990 and shall come into force on 1st April 1990.
2
In these Regulations, “ the Act ” means the Local Government and Housing Act 1989; and except where the context otherwise requires any reference in these Regulations to a section is a reference to a section of the Act.
PART II
EXPENDITURE FOR CAPITAL PURPOSES
Expenditure to be expenditure for capital purposes
2
1
Expenditure incurred by a local authority in the issue of a relevant loan instrument shall be expenditure for capital purposes.
2
In paragraph (1) above, a “relevant loan instrument” means a loan instrument issued in relation to any loan other than a loan in respect of which all payments or repayments by the authority are to be made not later than one year after the loan instrument is issued.
Expenditure not to be expenditure for capital purposes
3
Expenditure by a local authority pursuant to section 112 of the Local Government Act 1972 on the making of advances, grants or other financial assistance to an officer of the authority or to a person whom the authority intend to appoint as an officer shall not be expenditure for capital purposes.
PART III
CHARGE OF EXPENDITURE TO REVENUE ACCOUNTS
Expenditure excluded from section 41(1)
4
Expenditure in respect of which a local authority have made a determination under section 42(2)(g) shall not be expenditure falling within section 42(2) where the expenditure is, or is to be, met out of a contribution made, or to be made, under section 516(1) of the Housing Act 1985 and the contribution is, or is to be, paid–
a
in annual sums payable in respect of a period of ten years or more; or
b
by way of commuted payments within the meaning of section 157.
PART IV
CREDIT ARRANGEMENTS
Interpretation
5
1
In this Part, references to the capital cost of a lease are references to the amount which, at the time a local authority become the lessees, the authority estimate will be the aggregate of–
a
any consideration which has been or falls to be given by the authority in respect of the lease before or during the financial year in which they become the lessees; and
b
the value of any consideration which falls to be given by the authority in respect of the lease in any subsequent financial year.
2
For each subsequent financial year referred to in paragraph (1)(b) above, the value of the consideration falling to be given in that year shall be determined by the formula–
x
{ 1 + r 100
} n
where–
“x” is the amount of the consideration which the authority estimate will be given by them in respect of the lease in that financial year;
“r” is the percentage rate of discount prescribed for the financial year in which the authority became the lessees by regulations made by the Secretary of State for the purposes of section 49; and
“n” is the financial year in which the consideration falls to be given expressed as a year subsequent to the financial year in which the authority became the lessees (so that the first of the subsequent financial years is 1, the next financial year is 2, and so on).
3
For the purposes of this regulation, and the following provisions of this Part, in any case where the consideration in respect of a lease consists, in whole or in part,–
a
of an undertaking to do or to refrain from doing something at a future time (whether specified or not), or
b
of a right to do or to refrain from doing something at such a future time,
that consideration shall be regarded as neither given nor received until the undertaking is performed or, as the case may be, the right is exercised.
Leases and contracts which are not credit arrangements
6
1
A lease is excluded from section 48 if–
a
at the time the local authority become the lessees, they estimate that the consideration which has been or falls to be given by them in respect of the lease at or before that time, or within one year thereafter, is not less than 90 per cent. of the capital cost of the lease;
b
it is an operating lease of any vehicle, vessel, plant, machinery or apparatus;
c
the local authority become the lessees by virtue of an order made under section 168 of the Education Reform Act 1988 ;
d
it is a lease of land which is part of the housing stock of a new town corporation; or
e
it is granted to the local authority in accordance with regulations made under section 100 of the Housing Act 1988 .
2
For the purposes of paragraph (1)(b) above, an operating lease of any vehicle, vessel, plant, machinery or apparatus (“the asset”) is any lease where–
a
the lease or any arrangement (whether a credit arrangement or not) entered into in connection with the lease does not provide or do not together provide for–
i
the property in the asset to transfer to the local authority under the lease or arrangement or any renewal or continuation of the lease or arrangement; or
ii
the renewal or continuation of the lease or arrangement for a further period for a consideration which is materially less than what would be regarded, on the date on which the authority become the lessees or, if earlier, the arrangement is made (“the commencement date”) as the open market rent for that further period; or
iii
the value of the asset at the time of the expiry or termination of the lease or arrangement or of the period of any renewal or continuation of the lease or arrangement to accrue directly or indirectly to the authority; and
b
the termination value of the asset is equal to or exceeds 10 per cent. of its value on the commencement date.
3
In paragraph (2)(b) above, “termination value” means the value, as estimated by the authority on the commencement date, of the asset on the date on which the lease or arrangement is due to expire or terminate or, where provision is made for the renewal or continuation of the lease or arrangement, on the latest date on which it would expire or terminate if any right to renew or continue it were exercised.
4
A contract is excluded from section 48 if–
a
it is a contract entered into by a local authority and a new town corporation which–
i
provides for the transfer to the authority of all or part of the housing stock of a new town corporation; and
ii
is entered into by the new town corporation by virtue of section 36 of the New Towns Act 1981 or in accordance with regulations made under section 172(1);
b
it would not constitute a credit arrangement were the authority to make the estimate required by section 48(1)(b) in respect of each relevant financial year leaving out of account an amount of consideration equal to three per cent. of the value of all the consideration which has been or falls to be given under the contract by the authority; and, for this purpose, a “relevant financial year” is any relevant financial year (within the meaning of section 48(1)(b)) up to and including the last financial year during which the authority are to receive any consideration under the contract and the immediately following financial year; or
c
it is a licensing contract.
5
For the purposes of paragraph (4)(c) above, a licensing contract is any contract under which–
a
the construction or enhancement of a dwelling or the provision of a dwelling by the conversion of a building or part of a building is carried out for a local authority on land the freehold of which or a leasehold interest in which is owned by the authority; and
b
the authority are required, after the carrying out of the works,–
i
to dispose of the freehold or grant a long lease of the dwelling to a person other than a public body or a company which, for the purposes of Part V of the Act (companies in which local authorities have interests), is under the control or subject to the influence of a local authority, or
ii
to grant a shared ownership lease of the dwelling.
6
In paragraph (5) above,–
“dwelling” means any building or part of a building which is occupied as a dwelling or which is a hostel providing accommodation for persons who are homeless within the meaning of Part III of the Housing Act 1985 (housing the homeless) or who have a special need for accommodation arising from physical or mental disability, age, infirmity, or other special social disability or disadvantage;
“long lease” means a lease creating a long tenancy within the meaning of section 115 of the Housing Act 1985;
“shared ownership lease” means a lease granted at a premium, calculated by reference to the value of the dwelling or the cost of providing it, of not less than 25 per cent. of the figure by reference to which it was calculated;
“public body” means a local authority, a new town corporation or an urban development corporation established under Part XVI of the Local Government, Planning and Land Act 1980 (urban development).
7
Any lease or contract is excluded from section 48 if–
a
it is entered into by a local authority as an investment for the purposes of a superannuation fund which the authority are required to keep by virtue of the Superannuation Act 1972 ; or
b
the local authority estimate, at the time they become the lessees or enter into the contract, that the value of all the consideration which has been or falls to be given by them in respect of the lease or contract does not exceed £10,000.
8
In this regulation,
a
“new town corporation” and “housing stock” have the same meaning as in section 172; and
b
any reference to a contract is a reference to a single contract or, where two or more contracts taken together would constitute a credit arrangement, a reference to the two or more contracts taken together.
Initial and subsequent cost of leases
7
1
Any credit arrangement which is a lease shall be excluded from section 49(2), and in relation to any such credit arrangement, the initial cost and the cost of the arrangement at any time shall be calculated in accordance with paragraphs (2) to (11) below.
2
The initial cost and cost at any time shall be nil in relation to any lease to which paragraph (3) or paragraph (4) below applies.
3
This paragraph applies to a lease of land (“the lease”) where the term of the lease does not exceed three years, unless–
a
the local authority who become the lessees had, at any time within the period of ten years preceding the date on which they become the lessees, been entitled to the rents and profits of the whole or part of the land in question (an “initial interest”); or
b
any other local authority had, at any time within the period referred to in sub-paragraph (a) above, a leasehold interest in the whole or part of the land in question (an “earlier leasehold interest”); and the term of the lease, when added to the length of the period of any initial interests or earlier leasehold interests falling within the period referred to in sub-paragraph (a) above, exceeds three years.
4
This paragraph applies to a lease of land (“the lease”) where–
a
the lease is of a qualifying dwelling;
b
the term of the lease does not exceed three years and ends on a date not later than six years after the initial date;
c
a local authority become the lessees on the expiry of another leasehold interest in the qualifying dwelling (in this regulation referred to as “the former interest”) or not later than seven days thereafter; and
d
the former interest was acquired on or before 23rd November 1989 by the local authority referred to in sub-paragraph (c) above or any other local authority.
5
In paragraph (4) above–
“qualifying dwelling” means a dwelling-house which was let or occupied at any time during the period beginning on 23rd November 1989 and ending on 22nd February 1990 under a tenancy or a licence to occupy which was not a secure tenancy by virtue of paragraph 4 or paragraph 6 of Schedule 1 to the Housing Act 1985, and for this purpose, “dwelling-house” and “secure tenancy” have the same meaning as in Part IV of that Act (secure tenancies and the rights of secure tenants);
“the initial date” means the earliest date, during a period of ten years ending on the date on which the local authority referred to in paragraph (4)(c) above become the lessees, on which a leasehold interest (whether or not the former interest) in or the freehold of the qualifying dwelling was owned by a local authority.
6
The initial cost in relation to a lease of land (“the lease”) where–
a
the lease does not fall within paragraph (3) or paragraph (4) above;
b
the local authority who become the lessees had, at any time preceding the date on which they become the lessees, but on or after 1st April 1990, acquired a leasehold interest in the whole or part of the land in question (an “earlier leasehold interest”); and
c
any earlier leasehold interests were granted by a lease falling within paragraph (3) or paragraph (4) above;
shall be the total of the capital cost of the lease and any consideration given by the authority in respect of any earlier leasehold interests.
7
The initial cost in relation to a lease of land not falling within paragraphs (3), (4) or (6) above shall be the capital cost of the lease.
8
The initial cost in relation to a lease of goods shall be the capital cost of the lease.
9
The cost at any time in relation to a lease falling within paragraphs (6) to (8) above shall be calculated in like manner as the calculation of the capital cost of the lease but on the basis of an estimate made at the time in question and leaving out of account any consideration which has been given by the authority in respect of the lease before that time.
10
For the purposes of this regulation, no account shall be taken of any consideration given by a local authority in respect of a lease–
a
if the lease is not a credit arrangement;
b
before the authority become the lessees;
c
during the period of three months beginning on the date on which they become the lessees in the case of a credit arrangement which is a lease excluded for the purposes of paragraph 11(2) of Schedule 3 to the Act by virtue of regulation 22; or
d
which is wholly in money and which is, or is to be, met out of a grant made under section 3 of the Civil Defence Act 1948 , section 31 of the Police Act 1964 , section 51 of the Powers of the Criminal Courts Act 1973 , section 63(6) of the Rent Act 1977 or section 59 of the Justices of the Peace Act 1979 .
11
In this regulation, “the term of the lease” means the period unexpired at the date the local authority become the lessees.
Variation of credit arrangements
8
1
In relation to any credit arrangement which is a lease, the adjusted cost and the cost of the arrangement at any time after a variation as mentioned in section 51(1) shall be determined in accordance with paragraphs (2) to (8) below.
2
Subject to paragraphs (4) to (6) below, the adjusted cost in relation to any credit arrangement which is a lease shall be the aggregate of–
a
the consideration which, in the financial year in which the arrangement is varied and in any earlier financial year, has been or falls to be given by the local authority under the arrangement; and
b
the amount which, at the time of the variation, the authority estimate will be the cost of the arrangement, as varied, in each subsequent financial year.
3
For each subsequent financial year referred to in paragraph (2)(b) above, the cost of the arrangement as varied shall be the amount determined by the formula in regulation 5(2) but, for this purpose–
“x” is the amount of the consideration which the authority estimate will be given by them in that financial year under the arrangement as varied;
“r” is the percentage rate of discount for the financial year in which the arrangement is varied, as prescribed by regulations made by the Secretary of State for the purposes of section 49; and
“n” is the financial year in which the consideration falls to be given, expressed as a year subsequent to the financial year in which the arrangement is varied (so that the first of the subsequent financial years is 1, the next is 2, and so on).
4
The adjusted cost in relation to a credit arrangement which is a lease of land (“the lease”) where–
a
the initial cost of the arrangement was nil;
b
the arrangement is varied by an extension of the term of the lease;
c
the local authority who are the lessees had, at any time preceding the date on which they became the lessees, but on or after 1st April 1990, acquired a leasehold interest in the whole or part of the land in question (an “earlier leasehold interest”); and
d
any earlier leasehold interests were granted by a lease falling within regulation 7(3) or (4);
shall be the aggregate of an amount determined in accordance with paragraph (2) above and the amount of any consideration given by the authority in respect of any earlier leasehold interests.
5
The adjusted cost in relation to a credit arrangement which is a lease of land (“the lease”) where the initial cost of the arrangement was calculated in accordance with regulation 7(6) shall be the aggregate of an amount determined in accordance with paragraph (2) above and the amount of any consideration given by the authority in respect of any earlier leasehold interests falling within regulation 7(6)(b).
6
The adjusted cost in relation to a credit arrangement which is a lease of land (“the lease”) where–
a
the lease creates a tenancy to which Part II of the Landlord and Tenant Act 1954 (security for business and professional tenants) applies; and
b
the arrangement is varied by the continuation of the tenancy by virtue of section 24 of that Act;
shall be determined in accordance with, as the case may be, paragraph (2) or (5) above, or, if sub-paragraphs (a), (c) and (d) of paragraph (4) above apply, in accordance with that paragraph.
7
Where a credit arrangement which is a lease is varied as mentioned in section 51(1), the cost at any time after the variation shall be determined in like manner as the determination in accordance with paragraph (2) above of the adjusted cost of the arrangement but on the basis of an estimate made at the time in question and leaving out of account any consideration which has been given by the authority in respect of the lease before that time.
8
Regulation 7(10) shall apply for the purposes of this regulation as it applies for the purposes of regulation 7.
PART V
CREDIT APPROVALS
Specified capital grants
9
1
In respect of local authorities in England, the following grants, contributions and subsidies are specified for the purposes of section 57–
a
grants, contributions and subsidies paid under the following powers–
i
section 522(1) and (5) of the Housing Act 1985 (finance for grants for thermal insulation and payments in respect of administrative expenses);
ii
section 429(1) of the Housing Act 1985 (contributions to improvement for sale schemes);
iii
section 96(1) (contributions towards expenditure under Part VII of the Act) (renewal areas);
iv
section 132(1) (contributions towards expenditure under Part VIII of the Act) (grants towards cost of improvements and repairs etc. );
v
section 165(4) (slum clearance subsidy);
b
contributions and subsidies paid under the following powers, except to the extent that they are paid in annual sums payable in respect of a period of ten years or more–
i
section 245(1) of the Housing Act 1985 (contributions towards expenditure relating to environmental works in housing action areas);
ii
section 259(1) of the Housing Act 1985 (contributions towards expenditure relating to general improvement areas);
iii
section 312 of the Housing Act 1985 (slum clearance subsidy);
iv
section 516(1) of the Housing Act 1985 (contributions towards expense of grants under Part XV of that Act) (grants for works of improvement, repair and conversion);
v
section 569(1) of the Housing Act 1985 (contributions to certain expenses under Part XVI of that Act) (assistance for owners of defective housing).
2
In respect of local authorities in Wales, the following contributions and subsidies are specified for the purpose of section 57–
a
contributions and subsidies paid under the powers mentioned in paragraph (1)(a)(ii) to (v) above;
b
contributions and subsidies paid under the powers mentioned in paragraph (1)(b)(i) to (iii) and (v) above, except to the extent that they are paid in annual sums payable in respect of a period of ten years or more.
PART VI
CAPITAL RECEIPTS
Interpretation
10
1
In this Part, references to the capital value of a lease are references to the amount which, at the time of the disposal by a local authority of the lease, the authority estimate will be the aggregate of–
a
any consideration which has been or falls to be received by the authority in respect of the disposal of the lease in the financial year in which they dispose of the lease or at any time before the beginning of that year; and
b
the value of any consideration which falls to be received by the authority in respect of the disposal of the lease in any subsequent financial year.
2
For each subsequent financial year referred to in paragraph (1)(b) above, the value of the consideration falling to be received in that year shall be determined by the formula–
x
{ 1 + r 100
} n
where–
“x” is the amount of the consideration which the authority estimate will be received by them in respect of the lease in that financial year;
“r” is the percentage rate of discount prescribed for the financial year in which the authority disposed of the lease by regulations made by the Secretary of State for the purposes of section 49; and
“n” is the financial year in which the consideration falls to be received expressed as a year subsequent to the financial year in which the authority disposed of the lease (so that the first of the subsequent financial years is 1, the next financial year is 2, and so on).
3
Regulation 5(3) applies in relation to any consideration in respect of a lease or under a contract for the purposes of this regulation, and the following provisions of this Part, as it applies in relation to any consideration in respect of a lease for the purposes of Part IV of these Regulations.
1980 Act receipts
11
The following sums are specified for the purposes of section 58(4), namely, sums received by a local authority before 1st April 1990 in respect of the disposal of any interest in–
a
land held for the purposes of, or in connection with, the Central Criminal Court, the police, probation or magistrates' court services; and
b
vehicles or vessels, movable or immovable plant, machinery or apparatus held for the purposes of, or provided in connection with, the Central Criminal Court, the police, probation or magistrates' court services.
Sums to be capital receipts
12
The following sums received by a local authority shall be capital receipts–
a
any sums in respect of principal which 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 , 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; and
b
any sums received by the authority (“the designated authority”) in respect of repayments of principal in relation 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.
Sums not to be capital receipts
13
Any sums received by a local authority in respect of a payment such as is mentioned in section 58(1)(c) shall not be capital receipts unless the payment is made by the person to whom a grant or financial assistance is or was made by the local authority.
Reserved part of capital receipts
14
1
In respect of local authorities in England, the reserved part of a capital receipt for the purposes of section 59(3) shall, in the case of capital receipts of a description mentioned in column 1 of Part I of Schedule 1 to these Regulations, be the percentage specified in column 2 of Part I of that Schedule.
2
In respect of local authorities in Wales, the reserved part of a capital receipt for the purposes of section 59(3) shall, in the case of capital receipts of a description mentioned in column 1 of Parts I and II of Schedule 1, be the percentage specified in column 2 of Parts I and II of that Schedule.
Capital receipts to be treated as reduced: disposal of recently acquired interest
15
1
Capital receipts of a description specified in paragraph (2) below shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (4) to (6) below.
2
For the purposes of paragraph (1) above, capital receipts derived from a disposal of an interest in land, other than capital receipts of a description specified in regulation 16(2), are specified where–
a
the disposal takes place either not later than two years after the date on which the local authority disposing of the interest acquired an interest in the land or, if the authority entered into a contract for the disposal within that period, not later than three years after that interest was acquired;
b
the acquired interest referred to in sub-paragraph (a) above was either the freehold or a lease which was acquired on or after 1st January 1989;
c
if the acquired interest was the freehold, the disposal is of that freehold or is of a lease to which paragraph (3) below applies and which at the time of the disposal is for a term of which 125 years or more are unexpired; and
d
if the acquired interest was a lease, the disposal is of–
i
the freehold;
ii
the acquired interest; or
iii
a lease to which paragraph (3) below applies and which at the time of the disposal is for an unexpired term of 125 years or more or for an unexpired term greater than the unexpired term of the acquired interest.
3
This paragraph applies to any lease where, at the time of the disposal of the lease, the local authority estimate that not less than 90 per cent. of the capital value of the lease has been or is to be received by the authority within one year of the date of the disposal.
4
For the purposes of paragraph (1) above, the amount of the reduction is the aggregate of–
a
if the local authority entered into a credit arrangement for the purpose only of acquiring the interest referred to in paragraph (2)(a) above, the initial cost of the credit arrangement;
b
the amount of any consideration given by the authority in respect of the acquisition of that interest other than any consideration taken into account by virtue of sub-paragraph (a) above; and
c
the amount of any costs incurred by the authority in connection with that acquisition or the disposal, other than the amount of any costs taken into account by virtue of sub-paragraph (a) above.
5
Where an authority dispose successively of two or more interests in the relevant land, the amount of the reduction under this regulation may be applied as respects the receipts derived from any of those disposals.
6
If–
a
before the time any receipt is received, an amount falls to be set aside by the authority under section 61(4) or paragraph 7(2) of Schedule 3 to the Act in respect of any disposal of any interest in the relevant land; and
b
in accordance with regulation 20(7), the amount of the notional capital receipt is treated as reduced by an amount determined by reference to this regulation;
there shall be deducted from the amount which, apart from this paragraph, would be the amount of the reduction determined in accordance with this regulation, the amount by which the notional capital receipt is so treated as reduced.
Capital receipts to be treated as reduced: disposal of certain dwellings
16
1
As respects local authorities in England, capital receipts of a description specified in paragraph (2) below shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (3) to (5) below.
2
For the purposes of paragraph (1) above, capital receipts derived from a disposal of an interest in a dwelling are specified where the disposal is of–
a
the freehold;
b
a lease to which regulation 15(3) applies and which at the time of the disposal is for a term of which 125 years or more are unexpired;
c
a shared ownership lease; or
d
if at the time of the disposal the authority do not own the freehold of the dwelling or a lease of the dwelling for a term of which 125 years or more are unexpired, the authority’s interest in the dwelling;
provided that the authority have not at any time before the disposal granted a lease of the dwelling, other than a shared ownership lease, and that the dwelling has not been occupied under a secure tenancy.
3
For the purposes of paragraph (1) above, the amount of the reduction is the aggregate of–
a
where the dwelling was acquired by the authority, the cost of the acquisition of the interest or interests in the dwelling;
b
where the dwelling was constructed by or for the authority,–
i
the cost of its construction; and
ii
if the land on which the dwelling was constructed was acquired by the authority on or after the relevant date, the cost of the acquisition of the land;
c
where the dwelling was provided by the conversion by or for the authority of a building or part of a building,–
i
the cost of the conversion; and
ii
if the building or part of the building was acquired by the authority on or after the relevant date, the cost of the acquisition of the building or part of the building;
d
the cost of any enhancement of the dwelling after its acquisition, construction or provision, as the case may be, by or for the authority; and
e
the amount of any costs incurred by the authority in connection with the disposal.
4
In paragraph (3) above, the cost of the acquisition, construction, conversion or enhancement, as the case may be, is the aggregate of–
a
if the authority entered into a credit arrangement for the purposes only of the acquisition, construction, conversion or enhancement, as the case may be, the initial cost of the credit arrangement; and
b
the amount of any consideration given or costs incurred by the authority in respect of the acquisition, construction, conversion or enhancement, as the case may be, other than any consideration taken into account by virtue of sub-paragraph (a) above.
5
Paragraphs (5) and (6) of regulation 15 shall apply in relation to the amount of any reduction determined in accordance with this regulation as they apply in relation to the amount of any reduction determined in accordance with regulation 15.
6
In this regulation,–
“dwelling” and “shared ownership lease” have the meaning given by regulation 6(6);
“relevant date” means the date three years before the date of the disposal or, if there is more than one disposal falling within paragraph (2) above relating to a dwelling, the first such disposal;
“secure tenancy” has the same meaning as in Part IV of the Housing Act 1985.
Capital receipts to be treated as reduced: disposal of recently improved land
17
1
Capital receipts of a description specified in paragraph (2) below shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (3) and (4) below.
2
For the purposes of paragraph (1) above, capital receipts derived from a disposal by a local authority of an interest in land, other than any 1980 Act receipts and any capital receipts of a description specified, as respects local authorities in England, in regulation 16(2), are specified where–
a
the interest is of a description mentioned in sub-paragraph (a), (b), (c) or (d), as the case may be, of regulation 16(2), but, for the purposes of this regulation, the references in sub-paragraph (d) to the dwelling are to be construed as references to the land; and
b
the authority have incurred expenditure on the enhancement of the land at any time during the relevant financial years.
3
For the purposes of paragraph (1) above, the amount of the reduction is the aggregate of–
a
if during the relevant financial years the authority entered into a credit arrangement for the purpose only of the enhancement of the land, the initial cost of the credit arrangement; and
b
the amount of any expenditure incurred by the authority on the enhancement of the land during the relevant financial years, other than any expenditure taken into account by virtue of sub-paragraph (a) above.
4
Paragraph (5) of regulation 15 shall apply in relation to the amount of any reduction determined in accordance with this regulation as it applies in relation to the amount of any reduction determined in accordance with regulation 15.
5
Any reference in this regulation to the enhancement of land does not include–
a
the reclamation or laying out of the land; or
b
the construction, preparation or replacement of roads, buildings or other structures.
6
In this regulation, the “relevant financial years” means the financial year in which the disposal of the interest in the land, or if there is more than one disposal falling within paragraph (2) above relating to the land, the first such disposal, takes place, and the two financial years preceding that year.
Capital receipts to be treated as reduced: replacement of assets
18
1
Capital receipts of a description specified in paragraph (2) below shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (4) to (10) below.
2
For the purposes of paragraph (1) above, capital receipts derived from a disposal by a local authority of an interest in land are specified where–
a
the interest is of a description mentioned in sub-paragraph (a), (b) or (d), as the case may be, of regulation 16(2) but, for the purposes of this regulation, the references in sub-paragraph (d) to the dwelling are to be construed as references to the land;
b
either–
i
the land, immediately before its disposal, is used for a purpose mentioned in Part I of Schedule 2 to these Regulations, or is of a description mentioned in column 1 of Part II of that Schedule; or
ii
if the disposal is made pursuant to a compulsory purchase order, the land has been held for the purposes of Part II of the Housing Act 1985 (provision of housing) for a period of two years or more ending at the time of the disposal or the time of entry by the acquiring authority, whichever is the earlier; and
c
paragraph (3) below applies.
3
This paragraph applies where on or after 1st January 1989 the authority decided, at any time during the period of three years ending at the time of the disposal or, if it is earlier, the time at which the capital receipts are received,–
a
to dispose of the interest in the land;
b
either to acquire another interest in land (referred to in this regulation as “the new land”) or to carry out works to a building (referred to in this regulation as “the new building”), or both; and
c
either–
i
in the case of land used for a purpose mentioned in Part I of Schedule 2 to the Regulations, to use the new land or the new building for the same purpose as the land disposed of by the authority; or
ii
in the case of land which is of a description mentioned in column 1 of Part II of Schedule 2 to the Regulations, to use the new land or the new building for the corresponding purpose or one of the corresponding purposes mentioned in column 2 of Part II of that Schedule in respect of land of that description; or
iii
in the case of land of a description mentioned in paragraph 2(b)(ii) above, to use the new land or the new building for the purposes of Part II of the Housing Act 1985.
4
For the purposes of paragraph (1) above, the amount of the reduction, is subject to paragraph (9) below, the aggregate of–
a
where the local authority acquire an interest in the new land, the cost of the new land; and
b
where–
i
the local authority carry out works to the new building or the whole or part of the consideration received by the authority for the disposal is the carrying out of works to the new building, and
ii
there was a building on the land disposed of by the authority at the time of the disposal,
the cost of the new building.
5
For the purposes of paragraph (4) above, the cost of the new land or the new building is, subject to paragraphs (7) to (9) below, the aggregate of–
a
if the authority, in accordance with their decision referred to in paragraph (3) above, have entered into a credit arrangement for the purposes only of the acquisition of an interest in the new land or the carrying out of works to the new building, the initial cost of the credit arrangement; and
b
the amount of any consideration given or which falls to be given or costs incurred by the authority, in accordance with their decision referred to in paragraph (3) above, in respect of the acquisition of an interest in the new land or the carrying out of works to the new building, other than any consideration taken into account by virtue of sub-paragraph (a) above.
6
In paragraph (5)(b) above, the amount of any consideration which falls to be given by the authority in any financial year beginning after the time of the disposal shall be determined by the formula in regulation 5(2) as if–
a
the references to consideration were references to consideration which falls to be given by the authority; and
b
the references to the lease and the financial year in which the authority became the lessees were references to the acquisition of an interest in the new land or the carrying out of works to the new building and to the financial year in which the disposal of the interest in the land, or if there is more than one disposal falling within paragraph (2) above relating to the land, the first such disposal, took place.
7
If there is a building on the new land, there shall be excluded from the cost of the new land such part of the cost as is referable to the building unless there was a building on the land disposed of by the authority at the time of the disposal.
8
If the cost of the new building and such part of the cost of the new land as is referable to an existing building is or will exceed the reasonable cost of an equivalent replacement of a building or buildings (“the former building”) on the land disposed of by the authority at the time of the disposal, the cost of the new land or the new building shall be the aggregate of the amounts described in paragraph (5) above, but calculated on the basis of an estimate of the consideration or costs which would have been given or incurred by the authority if the cost of the new building and such part of the cost of the new land as is referable to an existing building had been equal to the reasonable cost of an equivalent replacement of the former building.
9
Paragraphs (4)(b)(ii), (7) and (8) above shall not apply in the case of capital receipts derived from the disposal of an interest in land where the land is used immediately before its disposal for the purpose mentioned in paragraph 9 of Part I of Schedule 2 to these Regulations.
10
Paragraphs (5) and (6) of regulation 15 shall apply in relation to the amount of any reduction determined in accordance with this regulation as they apply in relation to the amount of any reduction determined in accordance with regulation 15.
11
For the purposes of this regulation,–
a
any reference to the carrying out of works to a building includes the construction of the building; and
b
land or a building is not used for the same or a corresponding purpose unless it is used for the benefit of the inhabitants of all or part of the same area as the land disposed of by the local authority.
12
In this regulation, the “time of the disposal” means the time at which the disposal of the interest in the land, or if there is more than one disposal falling within paragraph (2) above relating to the land, the first such disposal, takes place.
Capital receipts to be treated as reduced: disposal of former new town assets
19
1
Capital receipts of a description specified in paragraph (2) below shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (4) and (5) below.
2
For the purposes of paragraph (1) above, capital receipts derived from a disposal by a local authority of any dwelling are specified where–
a
the dwelling was acquired by the authority from a new town corporation;
b
the dwelling was disposed of by the new town corporation to the authority by virtue of section 36 of the New Towns Act 1981 or in pursuance of any regulations made under section 172(1); and
c
the whole or part of the consideration falling to be given by the authority to the new town corporation in respect of the acquisition falls to be given on the disposal by the authority of the dwelling.
3
In paragraph (2) above, “new town corporation” and “dwelling” have the same meaning as in section 172.
4
For the purposes of paragraph (1) above, the amount of the reduction in the case of capital receipts derived from any disposal shall be the amount of any consideration which falls to be given by the authority as mentioned in paragraph (2)(c) above.
5
Paragraphs (5) and (6) of regulation 15 shall apply in relation to the amount of any reduction determined in accordance with this regulation as they apply in relation to the amount of any reduction determined in accordance with regulation 15.
Capital receipts not wholly in money paid to the authority
20
1
In this regulation, subject to paragraphs (7) and (8) below, “the notional capital receipt” means–
a
in relation to any consideration to which section 61 applies, the amount of the notional capital receipt determined in accordance with subsection (2) of that section; and
b
in relation to any consideration falling within paragraph 6 of Schedule 3 to the Act, the amount of the capital receipt referred to in paragraph 7(3) of that Schedule.
2
Where a local authority receive consideration to which section 61 applies or which falls within paragraph 6 of Schedule 3 to the Act (referred to in this regulation as “non-monetary consideration”), the authority shall set aside an amount which, subject to paragraphs (3), (4) and (6) below, is equal to the amount which, under section 59, would be the reserved part of the notional capital receipt.
3
In the case of non-monetary consideration which is–
a
received by a local authority in respect of a disposal of land which immediately before the disposal had not been used for a period of two years for the purpose for which it was held by the authority; and
b
consists of land which immediately before it is received is land on which there are no buildings or other structures;
the reserved part of the notional capital receipt shall be nil.
4
In the case of non-monetary consideration which is received by a local authority in respect of the disposal of an area of land and which consists of–
a
the grant of a right to nominate persons either to acquire the freehold of or a leasehold interest in dwellings on land within that area or to occupy such dwellings; or
b
an obligation to restrict the acquisition of the freehold of or a leasehold interest in dwellings on land within that area or the occupation of such dwellings to persons of a particular description;
the reserved part of the notional capital receipt shall be nil.
5
In paragraph (4) above, “dwelling” has the meaning given by regulation 6(6).
6
In the case of non-monetary consideration which is received by a local authority in respect of the assignment or surrender of a leasehold interest in any land and which consists of a promise not to sue for breach of a repairing covenant in the lease, the reserved part of the notional capital receipt shall be nil.
7
The amount of the notional capital receipt shall be treated as reduced for the purposes of section 61(4) or, as the case may be, paragraph 7(3) of Schedule 3 to the Act by an amount which, subject to paragraph (8) below is the amount which, if the consideration had been wholly in money paid to the authority, would be determined in accordance with regulation 15, 16, 18 or 19, as the case may be, as the amount of any reduction of the capital receipt.
8
Where the reserved part of a capital receipt falls to be set aside in respect of a disposal under section 59(1) at or before the time at which an amount falls to be set aside in respect of that disposal under section 61(4) or, as the case may be, paragraph 7(2) of Schedule 3 to the Act, there shall be deducted from the amount which, apart from this paragraph, would be the amount of the reduction in accordance with paragraph (7) above, the amount of any reduction determined in accordance with regulation 15, 16, 18 or 19, as the case may be, in relation to that capital receipt.
PART VII
CREDIT CEILING
Modifications of initial credit ceiling and credit ceiling on or after 1st April 1990
21
1
The modifications of a local authority’s initial credit ceiling mentioned in Part I of Schedule 3 to these Regulations are prescribed for the purposes of paragraph 8 of Schedule 3 to the Act.
2
A local authority’s credit ceiling shall be determined at any time on or after 1st April 1990 in accordance with paragraphs 11 to 14 of Schedule 3 to the Act subject to the modification which is mentioned in Part II of Schedule 3 to these Regulations and which is prescribed for the purposes of paragraph 10 of Schedule 3 to the Act.
Excluded credit arrangements
22
1
Any credit arrangement which is a lease of land shall be excluded for the purposes of paragraph 11(2) of Schedule 3 to the Act where, at the time a local authority become the lessees, they estimate that the value of the consideration which they will have given in respect of the lease by the end of each relevant financial year will be equal to or more than the relevant amount at that date.
2
For the purposes of paragraph (1) above, “the relevant amount” is the total amount of consideration which would have fallen to have been given by the local authority in respect of the lease at or before the end of a relevant financial year if the consideration to be given by the authority in respect of the lease had been wholly in money and consisted of a single annual payment of rent to be paid in the year equal to the amount estimated by the authority as the open market rent for the lease on the assumption that no premium fell to be paid in respect of the grant or assignment of the lease.
3
In this regulation, the reference to a relevant financial year is a reference to a financial year which begins after the local authority become the lessees.
4
Regulation 5(3) applies for the purposes of this regulation as it applies for the purposes of Part IV of these Regulations.
PART VIII
MINIMUM REVENUE PROVISION
Interpretation
23
In this Part–
“limited approval” means an approval given by the Secretary of State under paragraph 1(b) of Schedule 13 to the Local Government Act 1972 where the approval was given subject to a condition that any money borrowed by virtue of the approval was to be repaid by a particular date within 10 years from the date on which the approval was given;
“relevant period” in relation to any limited approval means the period commencing on 1st April 1990 and ending on the last day of the financial year in which the money borrowed by virtue of the approval is to be repaid;
“transitional credit arrangements” has the same meaning as in section 52.
Adjusted initial credit ceiling and adjusted credit ceiling
24
1
A local authority’s adjusted initial credit ceiling shall be their initial credit ceiling, determined in accordance with Part III of Schedule 3 to the Act, as modified for the purposes of Part IV of that Schedule in accordance with Part I of Schedule 4 to these Regulations.
2
A local authority’s adjusted credit ceiling at any time shall be their credit ceiling at any such time, determined in accordance with Part III of Schedule 3 to the Act, as modified for the purposes of Part IV of that Schedule in accordance with Part II of Schedule 4 to these Regulations.
Minimum revenue provision for the financial year beginning on 1st April 1990
25
1
For the financial year beginning on 1st April 1990, the amount in respect of principal for the purposes of paragraph 16(1)(a) of Schedule 3 to the Act shall be the aggregate of–
a
the percentages prescribed in paragraph (2) below of the amounts mentioned in that paragraph;
b
an amount determined in accordance with paragraph (3) below in respect of any advances which were made before 1st April 1990 from a loans fund established by a local authority under paragraph 15 of Schedule 13 to the Local Government Act 1972 and which were made by virtue of a limited approval; and
c
where any payments in respect of principal are required, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985 , to be made by a local authority (“the designated authority”) into a fund in relation to a sum which, by virtue of the order, is to be treated as the designated authority’s transferred debt, an amount equal to the total of any such payments which fall to be made in the financial year beginning on 1st April 1990.
2
The following percentages are prescribed for the purposes of paragraph 16(1)(a) of Schedule 3 to the Act in relation to amounts taken into account in determining a local authority’s adjusted initial credit ceiling–
a
in the case of an authority who are required, under Part VI of the Act (housing finance), to keep a Housing Revenue Account for the financial year beginning on 1st April 1990, 2 per cent. of the housing amount and 4 per cent. of the non-housing amount where these amounts are determined in accordance with Part I of Schedule 5 to these Regulations;
b
in the case of an authority not falling within sub-paragraph (a) above, 4 per cent. of the amount, if any, by which their adjusted initial credit ceiling exceeds the aggregate of–
i
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 paragraph (1)(b) above; and
ii
the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act; and
c
20 per cent. of the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act.
3
For the purposes of sub-paragraph (b) of paragraph (1) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the financial year beginning on 1st April 1990 for the repayment of so much of the principal of any advance falling within that sub-paragraph as has not been repaid before 1st April 1990 if the repayment were to be made by way of equal annual sums during the relevant period in respect of the advance.
Minimum revenue provision for subsequent financial years
26
1
For any financial year (referred to in this regulation as “the current financial year”) other than that beginning on 1st April 1990, the amount in respect of principal for the purposes of paragraph 15(1)(a) of Schedule 3 to the Act shall be the aggregate of–
a
the percentages prescribed in paragraph (2) below of the amounts mentioned in that paragraph;
b
an amount determined in accordance with paragraph (3) below in respect of any advances which were made before 1st April 1990 from a loans fund established by a local authority under paragraph 15 of Schedule 13 to the Local Government Act 1972 and which were made by virtue of a limited approval;
c
an amount determined in accordance with paragraph (4) below in relation to any supplementary credit approvals falling within section 54(5) issued to a local authority;
d
where any payments in respect of principal are required, by virtue of an order made under section 66(1) or 67(3) of the Local Government Act 1985, to be made by a local authority (“the designated authority”) into a fund in relation to a sum which, by virtue of the order, is to be treated as the designated authority’s transferred debt, an amount equal to the total of any such payments which fall to be made in the current financial year; and
e
the total of the amounts, if any, set aside by a local authority as provision to meet credit liabilities which were applied in the immediately preceding financial year in accordance with section 64(1)(b) in respect of any credit arrangement the initial cost of which was nil and which, at the time the amount was applied, had not been varied as mentioned in section 51(1).
2
The following percentages are prescribed for the purposes of paragraph 15(1)(a) of Schedule 3 to the Act in relation to amounts taken into account in determining a local authority’s adjusted credit ceiling–
a
in the case of an authority who are required, under Part VI of the Act, to keep a Housing Revenue Account for the current financial year, 2 per cent. of the authority’s housing amount and 4 per cent. of the authority’s non-housing amount where these amounts are determined in accordance with Part II of Schedule 5 to these Regulations;
b
in the case of an authority not falling within sub-paragraph (a) above, 4 per cent. of the relevant amount where this amount is determined in accordance with Part III of Schedule 5 to these Regulations; and
c
for any financial year beginning before 1st April 1995, 20 per cent. of the amount determined in accordance with paragraph 8(1)(b) of Schedule 3 to the Act.
3
For the purposes of sub-paragraph (b) of paragraph (1) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the current financial year for the repayment of so much of the principal of any advance falling within that sub-paragraph as has not been repaid before 1st April 1990 if the repayment were to be made by way of equal annual sums during the relevant period in respect of the advance.
4
For the purposes of paragraph (1)(c) above, the amount shall be equal to the total of the amounts, if any, which would fall to be provided by the authority in the current financial year for the repayment of an amount equal to the extent to which any supplementary credit approval falling within section 54(5) has been used by the authority as mentioned in section 56(3) in any preceding financial year, if the repayment were to be made by way of equal annual sums over the amortisation period specified in the approval in question.
PART IX
SUPPLEMENTARY
Interpretation of Part IV of the Act
27
1
Any reference in Part IV of the Act to a loan to or borrowing (or money borrowed) by a local authority (“the current authority”) includes a reference to the loans to or borrowing (or money borrowed) by another authority in respect of which the liabilities have become those of the current authority under or by virtue of–
a
an order made under section 66(1) or 67(3) of the Local Government Act 1985;
b
section 25(6) of the Local Government Act 1985;
c
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 or regulations made under section 67(1) or (2) of that Act;
d
an order made under section 254(1) or (2)(a) or (d) of the Local Government Act 1972; or
e
an order made under section 23(3) or 84 of the London Government Act 1963.
2
Any reference in Part IV of the Act to a loan to or borrowing (or money borrowed) by a local authority excludes a reference to the loans to or borrowing (or money borrowed) by that authority in respect of which the liabilities have become those of another authority 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 or regulations made under section 67(1) or (2) of that Act.
Chris Patten
Secretary of State for the Environment
2nd March 1990
Peter Walker
Secretary of State for Wales
28th February 1990


type: legislation

jurisdiction: UK

text:
Citation and commencement
1
These Regulations may be cited as the Banking Act 1987 (Exempt Transactions) (Amendment No. 2) Regulations 1990 and shall come into force on 30th May 1990.
Amendment of principal Regulations
2
Regulation 7(2)(b) of the Banking Act (Exempt Transactions) Regulations 1988 shall be amended by deleting the word “either”, substituting the word “or” for the word “and” at the end of paragraph (ii) and inserting the following new paragraph —
iii
the principal business of the society is the sale of goods or the provision of services to societies fulfilling the requirements of paragraph (i) above, and
.
John Taylor
Kenneth Carlisle
Two of the Lords Commissioners of Her Majesty’s Treasury
3rd May 1990


text:
1
This Order may be cited as the Police and Criminal Evidence Act 1984 (Application to Armed Forces) (Amendment) Order 1990 and shall come into force on 13th August 1990.
2
The Police and Criminal Evidence Act 1984 (Application to Armed Forces) Order 1985 shall be amended as follows. In article 2 (Interpretation) in the definition of “service policeman”, for the words “Special Investigation” there shall be substituted the word “Regulating”.
Tom King
One of Her Majesty’s Principal Secretaries of State
6th July 1990


text:
Title and commencement
1
This Scheme may be cited as the Plant Breeders' Rights (Miscellaneous Ornamental Plants) (Variation) Scheme 1990 and shall come into force on 17th January 1991.
Variation of principal Scheme
2
The Schedule to the Plant Breeders' Rights (Miscellaneous Ornamental Plants) Scheme 1990 (which prescribes the genera or species of miscellaneous ornamental plants of which varieties may be the subject of plant breeders' rights) shall be varied as follows —
i
in column 1, after “ Kalanchoe Adans.” insert “ Osteospermum L.”, and
ii
in column 2, after “ Kalanchoe ” insert “ Osteospermum ”.
In witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 13th December 1990.
John Selwyn Gummer
Minister of Agriculture, Fisheries and Food
Strathclyde
Parliamentary Under Secretary of State, Scottish Office
12th December 1990
David Hunt
Secretary of State for Wales
14th December 1990
Peter Brooke
Secretary of State for Northern Ireland
21st December 1990
Home Office
Kenneth Baker
Secretary of State for the Home
Department (being the Secretary of State concerned with matters relating to the Isle of Man)
19th December 1990


text:
Citation, commencement and application
1
These Regulations may be cited as the Local Government Finance (Payments) (Welsh Authorities) Regulations 1990 and shall come into force on 6th April 1990. They apply to Wales only.
Interpretation
2
In these Regulations —
“ the Act ” means the Local Government Finance Act 1988;
“receiving authority” means a charging authority or a county council;
“the first relevant provisions” means sections 83 and 86 of the Act, paragraph 5(10) of Schedule 8 to the Act, regulations made under paragraph 6(5) of that Schedule, and paragraphs 12 and 13 of that Schedule;
“the second relevant provisions” means section 83 of the Act and paragraph 5 of Schedule 8 to the Act.
3
1
Paragraphs (2) to (4) below apply in any case where —
a
the Secretary of State is liable to pay to a receiving authority at any time an amount or amounts under one or more of the first relevant provisions, and
b
that receiving authority is liable to pay to him at the same time an amount or amounts under one or more of the second relevant provisions.
2
If the total of the amount or amounts mentioned in paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in paragraph (1)(b) above, the Secretary of State may set off the latter in paying the former.
3
If the total of the amount or amounts mentioned in paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in paragraph (1)(a) above, the receiving authority shall set off the latter in paying the former.
4
If the total of the amount or amounts mentioned in paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in paragraph (1)(b) above, no payment need be made in respect of the former or the latter.
4
1
Where the Secretary of State exercises his powers under paragraph (2) of regulation 3, any liability of the receiving authority which has been set off in accordance with that paragraph and the part of the liability of theSecretary of State against which that liability has been set off, shall be treated as discharged.
2
Where a receiving authority sets off any amount in accordance with paragraph (3) of regulation 3, any liability of the Secretary of State which has been set off in accordance with that paragraph and the part of the liability of the authority against which that liability has been set off, shall be treated as discharged.
5
1
The following provisions of the Act shall be read subject to these Regulations —
section 79(2) and (3) section 83 section 86(2) and (3) paragraph 5(4), (5), (7), (9) and (10) of Schedule 8 paragraph 12(8) and (9) of Schedule 8 paragraph 13(6) and (7) of Schedule 8 paragraph 16 of Schedule 8.
2
The following provisions of the Act shall be read as if references to sums received or payments made were to sums or payments which would have been received or made apart from these Regulations —
paragraph 2 of Schedule 8.
Peter Walker
Secretary of State for Wales
14th March 1990


text:
PART I
GENERAL
Citation, commencement and interpretation
1
1
These Regulations may be cited as the Regional and District Health Authorities (Membership and Procedure) Regulations 1990 and —
a
shall come into force in relation to Regional Health Authorities except for regulations 2(2), 11(7) and 13(1)(f)(ii) on 26th July 1990;
b
shall come fully into force on 17th September 1990.
2
In these Regulations, unless the context otherwise requires —
“the 1977 Act ” means the National Health Service Act 1977;
“the 1990 Act ” means the National Health Service and Community Care Act 1990;
“appointing authority” means —
in relation to the chairman of an Authority , the Secretary of State; and
in relation to a member of an Authority, the person or persons responsible for his appointment in accordance with the Schedule;
“Authority” means a Regional or District Health Authority;
“health service body” means —
a health authority, a Family Health Services Authority or an NHS trust;
a Health Board, a Special Health Board, the Common Services Agency for the Scottish Health Service or an NHS trust respectively constituted under sections 2, 10, and 12A of the National Health Service (Scotland) Act 1978 ;
a State Hospital Management Committee constituted under section 91 of the Mental Health (Scotland) Act 1984 ;
The Dental Practice Board or Scottish Dental Practice Board;
The Public Health Laboratory Service Board; and
the National Radiological Protection Board established by section 1 of the Radiological Protection Act 1970 ;
“member” in relation to a health authority does not include its chairman and “members” and “membership” shall be construed accordingly;
“non-officer member” means a member who is not an officer member and who is appointed under paragraph 1(1)(b), 2(1)(b) or 3(1)(b) of the Schedule;
“officer member” means a member of a health authority who is a member by virtue of or appointed under paragraph 1(1)(c), (d) or (e), 2(1)(c), (d) or (e) or 3(1)(c), (d) or (e) of the Schedule;
“relevant Regional Health Authority” means the Regional Health Authority of which the region includes the district of the District Health Authority in question;
“the Schedule” means Part I of Schedule 1 to the 1990 Act;
“trade union” has the meaning assigned to it in section 28 of the Trade Union and Labour Relations Act 1974 .
3
In regulation 20 —
“public body” includes any body established for the purpose of carrying on, under national ownership, any industry or part of any industry or undertaking, the governing body of any university, university college or college, school or hall of a university and the National Trust for Places of Historic Interest or Natural Beauty incorporated by the National Trust Act 1907 .
“securities” means —
shares or debentures, whether constituting a charge on the assets of the Company or other body or not, or rights or interests in any shares or such debentures, or
rights (whether actual or contingent) in respect of money lent to or deposited with, any industrial and provident society or building society.
“shares” means shares in the share capital of a company or other body or the stock of a company or other body.
4
Unless the context otherwise requires, any reference in these Regulations to a numbered regulation or a numbered Schedule is a reference to the regulation or Schedule bearing that number in these regulations, and any reference in a regulation to a numbered paragraph is a reference to the paragraph bearing that number in that regulation.
PART II
MEMBERSHIP
Membership of Authorities in England
2
1
The number of non-officer members to be appointed to an Authority in England shall be 5.
2
One of those 5 shall, in the case of a Regional Health Authority, be the chairman of a Family Health Services Authority.
3
The prescribed officer member of an Authority in England, for the purposes of paragraphs 1(1)(d) and 2(1)(d) of the Schedule, shall be the chief finance officer.
4
The prescribed maximum number of officer members of an Authority in England other than the chief officer and the chief finance officer, for the purposes of paragraphs 1(1)(e) and 2(1)(e) of the Schedule, shall be 3.
Membership of District Health Authorities in Wales
3
1
The number of non-officer members of a District Health Authority in Wales shall be 5 except that, in the case of South Glamorgan Health Authority, it shall be 6.
2
One of these 6, in the case of South Glamorgan Health Authority, shall be a second member who holds a post in a university with a medical or dental school.
3
The prescribed officer members of a District Health Authority in Wales, for the purposes of paragraph 3(1)(d) of the Schedule, shall be —
a
the chief finance officer;
b
the chief administrative medical officer and director of public health medicine;
c
the chief administrative nursing officer.
4
The prescribed maximum number of officer members of a District Health Authority in Wales, for the purposes of paragraph 3(1)(e) of the Schedule, other than the chief officer and those specified in paragraph (3) shall be 1.
University non-officer members of District Health Authorities
4
The prescribed District Health Authorities for the purposes of paragraph 2(3) of the Schedule or paragraph 2(3) of the Schedule as applied by paragraph 3(2) of the Schedule, shall be those specified in Schedule 1, Part I of which relates to England and Part II of which relates to Wales.
Persons to be regarded as non-officers
5
Where a person —
a
holds a post in a university with a medical or dental school;
b
would also, apart from this sub-paragraph, be regarded as an officer of an Authority; or
c
is employed by a Regional Health Authority as a Consultant, but works in one or more District Health Authorities,
his employment as an officer of the Authority shall not prevent him being appointed as a non-officer member of that Authority.
Joint members
6
Where more than one person is appointed jointly to a post in an Authority which qualifies the holder for officer membership or in relation to which an officer member is to be appointed, those persons shall become or be appointed as an officer member jointly, and shall count for the purposes of regulations 2 and 3 as one person.
Period of tenure of office of members
7
1
Subject to regulation 11, the tenure of office of a chairman or non-officer member of an Authority shall be for such period, not exceeding 4 years, as the appointing authority may specify on making the appointment.
2
Subject to regulation 8 the tenure of office of an officer member of an Authority who is appointed shall be for such period as the appointing authority may specify on making the appointment.
Termination and suspension of tenure of office of officer members
8
1
An officer member of an Authority shall cease to hold office as member where he ceases to hold a post in the Authority or hold the same post in it as when he commenced his term of office.
2
If the appointing authority is of the opinion that it is not in the interest of the Authority that an appointed officer member of an Authority should continue to hold office as member, the appointing authority shall forthwith terminate his tenure of office.
3
If an officer member of an Authority is suspended from his post in the Authority he shall be suspended from performing his functions as member for the period of his suspension.
Eligibility for reappointment of officer members
9
An officer member of an Authority who has been appointed shall on the termination of the period of his tenure of office be eligible for reappointment.
Application of regulations 11 to 14
10
The provisions of regulations 11 to 14 shall not apply to officer members of an Authority.
Termination of tenure of office
11
1
The chairman or a member of an Authority may resign his office at any time during the period for which he was appointed by giving notice in writing to the appointing authority by which he was appointed.
2
Where during his period of membership a member of an Authority is appointed to be the chairman of that Authority, his tenure of office as a member shall terminate when his appointment as chairman takes effect.
3
If an appointing authority is of the opinion that it is not in the interests of the health service in the region or district of an Authority that a person whom it has appointed as the chairman or a member of that Authority should continue to hold that office, that appointing authority may, subject, if it is a relevant Regional Health Authority, to the consent of the Secretary of State, forthwith terminate his tenure of office.
4
If a chairman or member of an Authority has not attended a meeting of that Authority for a period of six months, the Secretary of State shall forthwith terminate the tenure of office of that chairman or member unless he is satisfied that —
a
the absence was due to a reasonable cause, and
b
the chairman or member will be able to attend meetings of that Authority within such period as the Secretary of State considers reasonable.
5
Where a person has been appointed to be the chairman or a member of an Authority —
a
if he becomes disqualified for appointment under regulation 13 the appointing authority shall forthwith notify him in writing of such disqualification; or
b
if it comes to the notice of the appointing authority that at the time of his appointment he was so disqualified, it shall forthwith declare that he was not duly appointed and so notify him in writing,
and, upon receipt of any such notification, his tenure of office, if any, shall be terminated and he shall cease to act as such chairman or member.
6
If it appears to the Secretary of State that the chairman or a member of an Authority has failed to comply with regulation 20(1) (disclosure etc. on account of pecuniary interest) he may forthwith terminate that person’s tenure of office.
7
Where a member of a Regional Health Authority, who was appointed by virtue of regulation 2(2), ceases to be the chairman of a Family Health Services Authority the Secretary of State may terminate his appointment as a member of the Regional Health Authority.
8
Where a member of a Regional or District Health Authority who was appointed by virtue of regulation 3(2) or paragraphs 1(2)(a) or 2(3) of the Schedule or paragraph 2(3) of the Schedule as applied by paragraph 3(2) of the Schedule ceases to hold a post in a university with a medical or dental school the appointing authority may, with the consent of the Secretary of State (unless he is the appointing authority), terminate his appointment as a member of the District Health Authority.
Eligibility for reappointment
12
Subject to regulation 13, the chairman or a member of an Authority shall, on the termination of his tenure of office, be eligible for reappointment.
Disqualification for appointment
13
1
Subject to regulation 14, a person shall be disqualified for appointment as the chairman or a member of an Authority if —
a
he has within the preceding five years been convicted in the United Kingdom, the Channel Islands or the Isle of Man of any offence and has had passed on him a sentence of imprisonment (whether suspended or not) for a period of not less than three months without the option of a fine; or
b
he has been adjudged bankrupt or has made a composition or arrangement with his creditors; or
c
he has been dismissed, otherwise than by reason of redundancy, from any paid employment with a health service body;
d
he has had his name removed, by a direction under section 46 of the 1977 Act, from any list prepared under Part II of the Act and has not subsequently had his name included in such a list; or
e
he is a person whose tenure of office as the chairman or a member of an Authority has been terminated pursuant to paragraph (3), (4) or (6) of regulation 11;
f
he is a chairman or a member of —
i
any other Authority;
ii
except in so far as regulation 2(2) provides to the contrary, any Family Health Services Authority;
iii
any of the special health authorities established by virtue of the Authorities for London Post-Graduate Teaching Hospitals (Establishment and Constitution) Order 1982 and the Board of Governors of the Eastman Dental Hospital (Establishment and Constitution) Order 1984 ;
g
he is a chairman or director of an NHS trust;
h
he holds any paid appointment or office with a trade union which represents the interests of members who are employed by a health service body.
i
he is a member of a fund-holding practice recognised under section 14 of the 1990 Act.
2
For the purposes of paragraph (1)(a) the date of conviction shall be deemed to be the date on which the ordinary period allowed for making an appeal or application with respect to the conviction expiries or, if such an appeal or application is made, the date on which the appeal or application is finally disposed of or abandoned or fails by reason of its not being prosecuted.
3
For the purposes of paragraph (1)(c) a person shall not be treated as having been in paid employment by reason only of his chairmanship or membership of a health service body.
Cessation of disqualification
14
1
Where a person is disqualified under regulation 13(1)(b) by reason of having been adjudged bankrupt —
a
if the bankruptcy is annulled on the ground that he ought not to have been adjudged bankrupt or on the ground that his debts have been paid in full, the disqualification shall cease on the date of the annulment;
b
if he is discharged the disqualification shall cease on the date of his discharge.
2
Where a person is disqualified under regulation 13(1)(b) by reason of his having made a composition or arrangement with his creditors, if he pays his debts in full the disqualification shall cease on the date on which the payment is completed and in any other case it shall cease on the expiry of five years from the date on which the terms of the deed of composition or arrangement are fulfilled.
3
Subject to paragraph (4), where a person is disqualified under regulation 13(1)(c) (dismissed employees) he may, after the expiry of a period of not less than two years, apply in writing to the Secretary of State to remove the disqualification, and the Secretary of State may direct that the disqualification shall cease.
4
Where the Secretary of State refuses an application to remove a disqualification no further application may be made by that person until the expiration of two years from the date of the application and this paragraph shall apply to any subsequent application.
5
Where a person is disqualified under regulation 13(1)(e) (certain chairmen and members whose appointments have been terminated), the disqualification shall cease on the expiry of a period of two years or such longer period as the appointing authority specifies when terminating his period of office but the Secretary of State may, on application being made to him by that person or by that appointing authority, reduce the period of disqualification.
PART III
CONSTITUTION AND PROCEEDINGS
Appointment of vice-chairman
15
1
Subject to paragraph (2), the chairman and members of an Authority may appoint one of their number, who is not also an officer member of the Authority, to be vice-chairman, for such period, not exceeding the remainder of his term as a member of the Authority, as they may specify on appointing him.
2
Any member so appointed may at any time resign from the office of vice-chairman by giving notice in writing to the chairman.
Powers of vice-chairman
16
Where the chairman of an Authority has died or has ceased to hold office, or where he has been unable to perform his duties as chairman owing to illness, absence from England and Wales or any other cause, references to the chairman in Schedule 2 shall, so long as there is no chairman able to perform his duties, be taken to include references to the vice-chairman.
Appointment of committees and sub-committees
17
1
Subject to such directions as may be given by the Secretary of State, an Authority may and, if directed by him, shall appoint committees of the Authority, or together with one or more other health authorities appoint joint committees consisting, in either case, wholly or partly of the chairman and members of the Authority or Authorities or wholly of persons who are not members of the Authority or Authorities in question.
2
A committee or joint committee appointed under this regulation may, subject to such directions as may be given by the Secretary of State or the Authority or Authorities, appoint sub-committees consisting wholly or partly of members of the committee or joint committee (whether or not they are members of the Authority or Authorities in question) or wholly of persons who are not members of the Authority or Authorities or the committee of the Authority or Authorities in question.
Arrangements for the exercise of functions
18
Subject to such directions as may be given by the Secretary of State and, in the case of a District Health Authority in England by the relevant Regional Health Authority, an Authority may make arrangements for the exercise, on behalf of the Authority, of any of its functions by a committee, sub-committee or joint committee appointed by virtue of regulation 17 or by an officer of the Authority, in each case subject to such restrictions and conditions as the Authority thinks fit.
Meetings and proceedings
19
1
The meetings and proceedings of an Authority shall be conducted in accordance with the rules set out in Schedule 2 and with Standing Orders made under paragraph (2).
2
Subject to those rules, to regulation 20 and to such directions as may be given by the Secretary of State and, in the case of a District Health Authority in England, by the relevant Regional Health Authority, an Authority shall make, and may vary or revoke, Standing Orders for the regulation of its proceedings and business and provision may be made in such Standing Orders for the suspension of them.
3
Subject to such directions as may be given by the Secretary of State, an Authority may, on its own in the case of a committee or sub-committee of the Authority or jointly with other Authorities in the case of a joint committee or sub-committee thereof, make, vary and revoke Standing Orders relating to the quorum, proceedings and place of meeting of such committee, joint committee or sub-committee but, subject to any such Standing Order, the quorum, proceedings and place of meeting shall be such as the committee, joint committee or sub-committee may determine.
Disability of chairman and members in proceedings on account of pecuniary interest
20
1
Subject to the following provisions of this regulation, if the chairman or a member has any pecuniary interest, direct or indirect, in any contract, proposed contract or other matter and is present at a meeting of the Authority at which the contract or other matter is the subject of consideration, he shall at the meeting and as soon as practicable after its commencement disclose the fact and shall not take part in the consideration or discussion of the contract or other matter or vote on any question with respect to it.
2
The Secretary of State may, subject to such conditions as he may think fit to impose, remove any disability imposed by this regulation in any case in which it appears to him in the interests of the health service that the disability shall be removed.
3
An Authority may, by Standing Orders made under regulation 19(2), provide for the exclusion of the chairman or a member from a meeting of the Authority while any contract, proposed contract or other matter in which he has a pecuniary interest, direct or indirect, is under consideration.
4
Any remuneration, compensation or allowances payable to the chairman or a member by virtue of paragraph 9 of Schedule 5 to the 1977 Act (pay and allowances) shall not be treated as a pecuniary interest for the purpose of this regulation.
5
Subject to paragraphs (2) and (6), the chairman or a member shall be treated for the purposes of this regulation as having indirectly a pecuniary interest in a contract, proposed contract or other matter if —
a
he, or a nominee of his, is a director of a company or other body, not being a public body, with which the contract was made or is proposed to be made or which has a direct pecuniary interest in the other matter under consideration; or
b
he is a partner of, or is in the employment of, a person with whom the contract was made or is proposed to be made or who has a direct pecuniary interest in the other matter under consideration;
and in the case of married persons living together the interest of one spouse shall, if known to the other, be deemed for the purpose of this regulation to be also an interest of the other.
6
The chairman or a member shall not be treated as having a pecuniary interest in any contract, proposed contract or other matter by reason only —
a
of his membership of a company or other body if he has no beneficial interest in any securities of that company or other body;
b
of an interest in any company, body or person with which he is connected as mentioned in paragraph (5) which is so remote or insignificant that it cannot reasonably be regarded as likely to influence a member in the consideration or discussion of or in voting on, any question with respect to that contract or matter.
7
Where the chairman or a member has an indirect pecuniary interest in a contract, proposed contract or other matter by reason only of a beneficial interest in securities of a company or other body, and the total nominal value of those securities does not exceed £5,000 or one-hundredth of the total nominal value of the issued share capital of the company or body, whichever is the less, and if the share capital is of more than one class, the total nominal value of shares of any one class in which he has a beneficial interest does not exceed one-hundreth of the total issued share capital of that class, this regulation shall not prohibit him from taking part in the consideration or discussion of the contract or other matter or from voting on any question with respect to it, without prejudice however to his duty to disclose his interest.
8
This regulation applies to a committee or sub-committee and to a joint committee or sub-committee as it applies to an Authority and applies to a member of any such committee or sub-committee (whether or not he is also a member of an Authority) as it applies to a member of an Authority.
Revocation and amendment of Regulations
21
1
The National Health Service (Regional and District Health Authorities: Membership and Procedure) Regulations 1983 are hereby revoked.
2
The regulations specified in Schedule 3 shall have effect subject to the amendments specified in that Schedule.
K. Clarke
Secretary of State for Health
2nd July 1990
David Hunt
Secretary of State for Wales
2nd July 1990


text:
Citation and commencement
1
1
This Order may be cited as the Gloucestershire and Wiltshire (County Boundaries) Order 1990.
2
This Order shall come into force on 7th March 1990 for any purpose set out in regulation 4(1) (coming into operation of order) of the Local Government Area Changes Regulations 1976 .
3
For all other purposes this Order shall come into force on 1st April 1990.
Interpretation
2
In this Order “boundary map” means one of the 2 maps prepared by the Department of the Environment, marked “Maps of the Gloucestershire and Wiltshire (County Boundaries) Order 1990”, duly numbered for reference, and deposited in accordance with regulation 5 of the Local Government Area Changes Regulations 1976.
Transfers from Wiltshire to Gloucestershire
3
1
The part of the county of Wiltshire, the district of North Wiltshire and the parish of Marston Maisey marked A1 on boundary map 1 shall be transferred to–
a
the county of Gloucestershire and the East Cotswold electoral division of that county;
b
the district of Cotswold and the Hampton ward of that district;
c
the parish of Maiseyhampton;
d
the Cirencester, Fairford and Tetbury petty sessional division;
e
the Cheltenham Coroner’s district.
2
The part of the county of Wiltshire, the district of North Wiltshire and the parish of Oaksey marked A2 on boundary map 2 shall be transferred to–
a
the county of Gloucestershire and the South Cotswold electoral division of that county;
b
the district of Cotswold and the Thames Head ward of that district;
c
the parish of Kemble;
d
the Cirencester, Fairford and Tetbury petty sessional division;
e
the Cheltenham Coroner’s district.
Town and country planning
4
Any provisions of a structure plan, an old development plan (within the meaning of paragraph 2 of Schedule 7 to the Town and Country Planning Act 1971 ) or a local plan made or adopted by a county or district council which apply immediately before 1st April 1990 to an area transferred by this Order shall continue to have effect in relation to that area as if they were part of such a plan made or adopted by the council of the county or district to which that area is transferred.
Signed by authority of the Secretary of State for the Environment
David Heathcoat-Amory
Parliamentary Under Secretary of State,
Department of the Environment
5th February 1990