Local Government and Housing Act 1989

Supplementary

65 Information

(1) The Secretary of State may serve on a local authority a notice requiring the authority to supply to him such information as is specified in the notice and is required by him—

(a) for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part; or

(b) for the purpose of ascertaining whether an authority have acted, or are likely to act, in accordance with this Part; or

(c) for the purpose of assisting the formulation of government economic policies;

but no information shall be required for the purpose specified in paragraph (c) above unless it relates to, or to plans or proposals about, the finances and expenditure of the authority or of any company in which the authority have an interest.

(2) If the information specified in a notice under this section is in the possession or under the control of the authority on whom the notice is served, the authority shall supply the information required in such form and manner, and at such time, as is specified in the notice and, if the notice so requires, the information shall be certified (according as is specified in the notice) in one or both of the following ways,—

(a) by the chief finance officer of the authority, within the meaning of section 5 above, or by such other person as may be specified in the notice; and

(b) under arrangements made by the Audit Commission for Local Authorities in England and Wales.

(3) If a local authority fail to comply with subsection (2) above, the Secretary of State may decide—

(a) whether to exercise his powers, and how to perform his functions, under this Part, or

(b) whether the authority have acted, or are likely to act, in accordance with this Part,

on the basis of such assumptions and estimates as he thinks fit.

(4) In deciding—

(a) whether to exercise his powers, and how to perform his functions, under this Part, or

(b) whether an authority have acted, or are likely to act, in accordance with this Part,

the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other enactment.

66 Interpretation of Part IV

(1) In this Part—

(a) “approved investments” means investments approved for the purposes of this Part by regulations made by the Secretary of State;

(b) “financial year” means the period of twelve months beginning on 1st April;

(c) “Minister of the Crown” has the same meaning as in the Ministers of the [1975 c. 26.] Crown Act 1975; and

(d) “1980 Act receipt” has the meaning given by section 58(4) above.

(2) For the purposes of this Part, a local authority—

(a) incur a liability in respect of a payment at the time when they become unconditionally liable to make the payment; and

(b) discharge a liability in respect of a payment at the time when they make the actual payment, whether or not they have at that time become unconditionally liable to do so.

(3) In relation to a credit arrangement,—

(a) any reference in this Part to consideration given or to be given by the local authority under the arrangement does not include a reference to any consideration which is given before the time the arrangement comes into being (as defined in section 48(3) above); and

(b) any reference in this Part to a liability of the local authority under the arrangement does not include a reference to a liability which is met by the making of a payment before that time.

(4) In relation to a local authority, references in this Part to proper practices are references to those accounting practices—

(a) which the authority are required to follow by virtue of any enactment; or

(b) which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned;

but, in the event of any conflict in any respect between the practices falling within paragraph (a) above and those falling within paragraph (b) above, only those falling within paragraph (a) above are to be regarded as proper practices.

(5) Subsection (4) above has effect not only for the purposes of this Act but also for the purposes of—

(a) any enactment passed after or in the same Session as this Act; and

(b) Part III of the [1982 c. 32.] Local Government Finance Act 1982 and the [1988 c. 41.] Local Government Finance Act 1988.

(6) If, under or by virtue of any enactment, all or any of the liabilities of an authority (in this subsection referred to as “the original authority”) in respect of a loan to or borrowing (or money borrowed) by the authority have become liabilities of another local authority (in this subsection referred to as “the current authority”) then, in so far as regulations made by the Secretary of State so provide,—

(a) in relation to the current authority, any reference in this Part to a loan to or borrowing (or money borrowed) by that authority includes a reference to the loan to or borrowing (or money borrowed) by the original authority; and

(b) if the original authority is a local authority for the purposes of this Part, any reference to a loan to or borrowing (or money borrowed) by that authority excludes a reference to the loan, borrowing (or money borrowed) in respect of which the liabilities have become those of the current authority.

(7) For the avoidance of doubt, except as provided by section 44(5) above, any reference in this Part to borrowing by a local authority does not include a reference to the temporary use by an authority of money forming part of a particular fund of the authority for a purpose other than that of the fund.