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The Local Government Act 2003 (Commencement No. 1 and Transitional Provisions and Savings) Order 2003

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3.  Any direction made under section 40(6) of the 1989 Act (capital purposes)—

(a)in respect of expenditure which may be treated by the authority concerned as expenditure for capital purposes; and

(b)in which the period specified under section 40(6)(d) ends on or after 1st April 2004,

shall continue to have effect on and after 1st April 2004 as if it were a direction made under section 16(2)(b) of the Act (“capital expenditure”), and accordingly the expenditure referred to in the direction may be treated by the authority concerned as capital expenditure for the purposes of Chapter 1 of Part 1 of the Act.

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