Local Government (Scotland) Act 1973

83 Power of local authorities to incur expenditure for certain purposes not otherwise authorised. S

(1) A local authority may, subject to the provisions of this section, incur expenditure which in their opinion is in the interests of [F1 and will bring direct benefit to] their area or any part of it or all or some of its inhabitants, but a local authority shall not, by virtue of this subsection, incur any expenditure.

[F2 (a)] for a purpose for which they are, either unconditionally or subject to any limitation or to the satisfaction of any condition, authorised or required to make any payment by or by virtue of any other enactment [F3 nor.

F3 (b) unless the direct benefit accruing to their area or any part of it or to all or some of the inhabitants of their area will be commensurate with the expenditure to be incurred.]

(2) It is hereby declared that [F4 , subject to subsection (3A) below,] the power of a local authority to incur expenditure under subsection (1) above includes power to do so by contributing towards the defraying of expenditure by another local authority in or in connection with the exercise of that other authority’s functions.

[F5 (2A) Without prejudice to the generality of subsection (1) above, the power of a local authority to incur expenditure under that subsection includes power to incur expenditure in giving financial assistance to persons carrying on commercial or industrial undertakings.

(2B) Financial assistance under subsection (2A) above may be given by lending or guarantee, or by making grants.]

[F6 (2C) A local authority may incur expenditure under subsection (1) above on publicity only by way of assistance to a public body or voluntary organisation where the publicity is incidental to the main purpose for which the assistance is given; but the following provisions of this section apply to expenditure incurred by a local authority under section 88 below on information as to the services provided by them under this section, or otherwise relating to their functions under this section, as they apply to expenditure incurred under this section.

(2D) In subsection (2C) above—

• “publicity” means any communication, in whatever form, addressed to the public at large or to a section of the public; and

• “voluntary organisation” means a body which is not a public body but whose activities are carried on otherwise than for profit.]

(3) A local authority may, subject as aforesaid, incur expenditure on contributions to any of the following funds, that is to say—

(a) the funds of any charitable body in furtherance of its work in the United Kingdom; or

(b) the funds of any body which provides any public service in the United Kingdom otherwise than for the purposes of gain; or

(c) any fund which is raised in connection with a particular event directly affecting persons resident in the United Kingdom on behalf of whom a public appeal for contributions has been made by a chairman of a regional, islands or district council, a chairman of a community council, a lord-lieutenant or by a body of which any of these persons is a member [F7 or by such a person or body as is referred to in section 137(3)(c) of the Local Government Act 1972].

[F8 (3A) Where one of any two local authorities is a regional council and the other a district council, neither authority shall under the foregoing provisions of this section—

(a) incur; or

(b) unless invited to do so by the other authority, contribute towards defraying,

expenditure which the other authority are, either unconditionally or subject to any limitation or to the satisfaction of any condition, expressly authorised (or required) to incur by or by virtue of any enactment other than this section.]

(4) The expenditure of a local authority under this section in any financial year shall not exceed the product of a rate of 2p in the pound for their area for [F9 the financial year 1988-89] or, if some other amount, whether higher or lower, is fixed by an order made by the Secretary of State, shall not exceed the product of a rate of that amount in the pound for their area for [F9 the financial year 1988-89].

[F10 (4A) For the purpose of determining whether a local authority have exceeded the limit set out in subsection (4) above, their expenditure in any financial year under this section shall be taken to be the difference between their gross expenditure under this section for that year and the aggregate of the amounts specified in subsection (4B) below.

(4B) The amounts mentioned in subsection (4A) above are—

(a) any grant paid to the local authority for that year under the M1 Local Government Grants (Social Need) Act 1969, in so far as the grant is in respect of an activity in relation to which the authority have incurred expenditure in that year under this section;

(b) the amount of any repayment in that year of the principal of a loan for the purpose of financing expenditure under this section in any year;

(c) so much of any amount raised by public subscription as is spent in that year for a purpose for which the authority are authorised by their section to incur expenditure;

(d) any grant received by the authority for that year out of the European Regional Development Fund or the Social Fund of the European F11 . . . Community, in so far as the grant is in respect of an activity in relation to which the authority incurred expenditure in that year under this section;

(e) the amount of any repayment in that year of a loan under this section made by the authority in any year; and

(f) the amount of any expenditure—

(i) which is incurred by the authority in that year in circumstances specified in an order made by the Secretary of State; or

(ii) which is incurred by the authority in that year and is of a description so specified; or

(iii) which is defrayed by any grant or other payment to the authority which is made in or in respect of that year and is of a description so specified.]

(5) A statutory instrument containing an order under [F12 this section] may apply to all local authorities or may make different provision in relation to local authorities of different descriptions.

(6) Any such instrument shall be subject to annulment in pursuance of a resolution of either House of Parliament.

[F13 (7) The accounts kept under section 96 of this Act by a local authority shall include a separate account of any expenditure incurred by the authority under this section.]

Textual Amendments

F1 Words in s. 83(1) inserted (1.4.1995) by 1994 c. 39, s. 164(2)(a); S.I. 1995/702, art. 3

F2 S. 83(1)(a) re numbered (1.4.1995) by 1994 c. 39, s. 164(2)(b); S.I. 1995/702, art. 3

F3 S. 83(1)(b) and the word “nor” immediately preceding it inserted (1.4.1995) by 1994 c. 39, s. 164(2)(c); S.I. 1995/702, art. 3

F4 Words inserted by Local Government and Planning (Scotland) Act 1982 (c. 43), s. 6(a)

F5 S. 83(2A), (2B) inserted by Local Government and Planning (Scotland) Act 1982 (c. 43), s. 50(a)

F6 S. 83(2C)(2D) inserted by Local Government Act 1986 (c. 10, SIF 81:1), ss. 3(3), 6

F7 Words added by Local Government and Housing Act 1989 (c. 42, SIF 81:2), s. 36(9)

F8 S. 83(3A) inserted by Local Government and Planning (Scotland) Act 1982 (c. 43), s. 6(b)

F9 Words substituted by Abolition of Domestic Rates Etc. (Scotland) Act 1987 (c. 47, SIF 103:2), s. 6, Sch. 1 Pt. III para. 27

F10 S. 83(4A), (4B) inserted by Local Government and Planning (Scotland) Act 1982 (c. 43), s. 50(b)

F11 Word in s. 83(4B)(d) repealed (1.4.1995) by 1994 c. 39, s. 180(2), Sch. 14; S.I. 1995/702, art. 3(e), Sch. 1

F12 Words substituted by Local Government and Planning (Scotland) Act 1982 (c. 43), s. 50(c)

F13 S. 83(7) inserted by Rating and Valuation (Amendment) (Scotland) Act 1984 (c. 31, SIF 103:2), s. 9

Modifications etc. (not altering text)

C1 S. 83 amended by Local Authorities (Expenditure Powers) Act 1983 (c. 52), s. 1(1)(b)

C2 S. 83 amended by Local Authorities (Expenditure Powers) Act 1983 (c. 52, SIF 81:2), s. 1(1)(b)

Marginal Citations

M1 1969 c. 2.