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Part VIIS Finance

Modifications etc. (not altering text)

Funds, revenue and expensesS

94 Capital expenses. S

(1)It shall not be lawful for a local authority to incur any liability to meet capital expenses except with the consent of the Secretary of State, and the Secretary of State may, if he thinks fit, give his consent for the purposes of this section—

(a)subject to such conditions as may be specified in the consent;

(b)in relation to such project, or to such programme of works, or to such class of works, or to such amount, as may be so specified;

(c)in relation to expenses to be met by the authority within such financial year as may be so specified.

[F1(1A)The giving of approval by a local authority as a Passenger Transport Authority to any proposal for expenditure referred to in section 15(1)(c) of the Transport Act 1968 shall be deemed for the purposes of this section to be an incurring of liability by the authority to meet capital expenses.]

[F2(1B)The Secretary of State may—

(a)withdraw, or vary the terms of, a consent which he has, under subsection (1) above, given; or

(b)withdraw or vary any condition to which the giving of such consent was subject,

[F3: Provided that, where the local authority have, by binding contract, incurred any liability to which the consent relates, a withdrawal or variation which would, but for this proviso, have the effect of rendering performance of an obligation under such contract impossible shall apply only to the extend (if any) that it does not have that effect.]]

(2)In this section [F4capital expenses” means any expenses which are to be charged to a capital account or which are otherwise of a capital nature irrespective of how they are financed.]

[F5(3)The Secretary of State may by order (either or both)—

(a)amend the definition of “capital expenses” in subsection (2) above;

[F6(b)provide that subsection (1) above shall, in the same manner as it applies to liabilities incurred in relation to capital expenses, apply to such other liabilities incurred in relation to a lease (or other contract, or arrangement, of a like nature) as may be specified in the order and, for the purposes of such application, prescribe a method for assigning a capital value to those other liabilities and prescribe circumstances in which such other liabilities shall be taken to arise.]

(4)An order made under subsection (3) above shall have no effect until approved by resolution of each House of Parliament.]