Local Authorities (Land) Act 1963

7 Power of municipal borough to use general rate fund or borrow for non-statutory purposes

(1) The liabilities falling to be discharged by the council of a borough that may be discharged out of the general rate fund of the borough under section 185 of the Local Government Act 1933 shall include liabilities incurred by them in the exercise of any power exercisable by virtue of the charter of the municipal corporation of the borough for any of the following purposes that is to say—

(a) the acquisition of land;

(b) the erection of buildings on corporate land or the construction or carrying out of works on such land;

(c) the repair, maintenance and insurance of buildings or works on such land.

(2) The purposes for which the council of a borough may borrow under section 195 of the said Act of 1933 shall include the discharge of liabilities incurred by them as mentioned in the foregoing subsection for purposes so mentioned, other than the insurance of buildings or works.