6(1)A local authority may borrow by the issue of bills, payable within twelve months from the date of issue—S
(a)any sum which they are authorised to borrow under a statutory borrowing power; or
(b)such sums as may be required for the purpose of defraying expenses (including those payable by them to meet the expenses of other local authorities) pending the receipt of revenues receivable by them in respect of the year in which those expenses are chargeable.
(2)The aggregate of the amount outstanding on bills issued by a local authority under sub-paragraph (1) above shall not exceed—
(a)a sum equal to such proportion of the authority’s estimated gross income from [F1rates, [F2the council tax and the council water charge]] during the current year as may be prescribed by an order made by the Treasury; or
(b)if no such proportion is so prescribed, a sum equal to one-fifth of the authority’s estimated gross income as aforesaid.
(3)A local authority shall not borrow by the issue of bills in any year during which the authority’s estimated gross income as aforesaid does not exceed £3 million or such other sum as may be prescribed by an order made by the Treasury.
(4)A statutory instrument containing an order under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Textual Amendments
F1Words substituted by Abolition of Domestic Rates Etc. (Scotland) Act 1987 (c. 47, SIF 81:2, 103:2), s. 6, Sch. 1 Pt. III para. 34
F2Words in Sch. 3 para. 6 substituted (1.4.1993) by Local Government Finance Act 1992 (c. 14), s. 117(1), Sch. 13 para. 44(a) (with s. 118(1)(2)(4)); S.I. 1993/575, art. 2(c).