C1C2C3C4C6C5C8C7C9C10C11Part 1Capital finance etc and accounts
Meaning of “local authority” in Pt. 1 modified (28.3.2008) by Bedfordshire (Structural Changes) Order 2008 (S.I. 2008/907), arts. 1, 20(7)(c)
Pt. 1 applied (15.1.2014) by Humber Bridge Act 2013 (c. vi), ss. 1(1), 8(4)
Pt. 1 applied in part (with modifications) by Police Reform and Social Responsibility Act 2011 (c. 13), Sch. 2 para. 7A(4)(7)(8), Sch. 4 para. 4A(4)(5) (as inserted (13.5.2014) by Anti-social Behaviour, Crime and Policing Act 2014 (c. 12), ss. 141(1)(2), 185(1))
Pt. 1 modified (25.5.2018) by The East Suffolk (Local Government Changes) Order 2018 (S.I. 2018/640), arts. 1, 17(2)(c)
Pt. 1 modified (25.5.2018) by The West Suffolk (Local Government Changes) Order 2018 (S.I. 2018/639), arts. 1, 17(2)(c)
Pt. 1 modified (26.5.2018) by The Somerset West and Taunton (Local Government Changes) Order 2018 (S.I. 2018/649), arts. 1, 17(2)(c)
Pt. 1 modified (26.5.2018) by The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 (S.I. 2018/648), arts. 1, 21(2)(c), 36(2)(c)
Pt. 1 modified (23.5.2019) by The Buckinghamshire (Structural Changes) Order 2019 (S.I. 2019/957), arts. 1, 15(2)
Pt. 1 modified (14.2.2020) by The Northamptonshire (Structural Changes) Order 2020 (S.I. 2020/156), arts. 1, 17(2)(c)
Pt. 1 applied (18.3.2022) by The Cumbria (Structural Changes) Order 2022 (S.I. 2022/331), arts. 1(1), 18(2)(c)
Chapter 1Capital finance etc
F1Risk management: England
Ss. 12A-12D and cross-heading inserted (31.1.2024) by Levelling-up and Regeneration Act 2023 (c. 55), ss. 78(2), 255(2)(p) (with s. 247); S.I. 2024/92, reg. 2(a)
12BRisk thresholds
1
For the purposes of section 12A(2)(a), a risk threshold is breached by a local authority in England if (and when) a capital risk metric for the local authority breaches the specified threshold for that metric.
2
Each of the following is a “capital risk metric”—
a
the total of a local authority’s debt (including credit arrangements) as compared to the financial resources at the disposal of the authority;
b
the proportion of the total of a local authority’s capital assets which is investments made, or held, wholly or mainly in order to generate financial return;
c
the proportion of the total of a local authority’s debt (including credit arrangements) in relation to which the counter-party is not central government or a local authority;
d
the amount of minimum revenue provision charged by a local authority to a revenue account for a financial year;
e
any other metric specified by regulations made by the Secretary of State.
3
The Secretary of State may, by regulations, make further provision—
a
specifying whether the specified threshold for a particular metric is breached by a failure to reach that threshold or by that threshold being exceeded;
b
about how the metrics specified in, or under, subsection (2) are to be calculated for the purpose of determining whether the specified threshold for that metric has been breached.
4
Before making regulations under subsection (2)(e), the Secretary of State must consult all local authorities in England.
5
In this section—
“capital asset” has the meaning given by section 9;
“minimum revenue provision” has the meaning given by regulation 27 of the Local Authorities (Capital Finance and Accounting)(England) Regulations 2003 (S.I. 2003/3146);
“specified” means specified, or determined in a manner specified, in regulations made by the Secretary of State.
6
Regulations may require a specified threshold to be determined having regard to guidance issued under section 21(1A) (accounting practices).
Meaning of “local authority” in Pt. 1 modified (5.3.2008) by Cheshire (Structural Changes) Order 2008 (S.I. 2008/634), arts. 1, 9(9)(c)