Local Government (Scotland) Act 1973

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 provisions of this section shall apply to the Strathclyde Passenger Transport Authority as they apply to a local authority; and the giving of approval by the Strathclyde Passenger Transport Authority to any proposal for expenditure referred to in section 15(1)(c) of the M1 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 [F4 “capital 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 or Parliament.]

[F7 (5) In exercising their functions under subsection (1) above the Scottish Ministers shall seek to ensure that the aggregate amount of relevant expenditure by virtue of this section in any financial year does not exceed the amount specified for that year for the purposes of this subsection in a Budget Act.

(6) In subsection (5) above, “relevant expenditure” means such expenditure as the Scottish Ministers may from time to time determine in writing, being expenditure resulting from the incurring of liabilities to which subsection (1) above applies.

(7) The Scottish Ministers shall lay before the Scottish Parliament every determination under subsection (6) above together with a statement of their reasons for making the determination in those terms.]

Textual Amendments

F1 S. 94(1A) substituted (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 92(24); S.I. 1996/323, art. 4(1)(c)

F2 S. 94(1B) inserted by Local Government (Miscellaneous Provisions) (Scotland) Act 1981 (c.23), s. 26(a)

F3 S. 94(1B) proviso substituted for words by Local Government and Planning (Scotland) Act 1982 (c.43), Sch. 3 para. 17(a)

F4 Definition substituted by S.I. 1987/943, reg. 2

F5 S. 94(3)(4) added by Local Government (Miscellaneous Provisions) (Scotland) Act 1981 (c. 23), s. 26(b)

F6 S. 94(3)(b) substituted by Local Government and Planning (Scotland) Act 1982 (c. 43), Sch. 3 para. 17(b)

F7 S. 94(5)-(7) inserted (1.4.2000) by 2000 asp 1, s. 8, Sch. 1 para. 1; S.S.I. 2000/10, art. 2(2)

Modifications etc. (not altering text)

C1 S. 94 modified by Transport Act 1985 (c. 67, SIF 126), ss. 77(1), 140

C2 S. 94 modified by Airports Act 1986 (c. 31, SIF 9), ss. 23(1), 85(4)

Marginal Citations

M1 1968 c. 73.