Local Government Act 2003 (c. 26)

Part 1 E+W Capital finance etc and accounts

Modifications etc. (not altering text)

C1 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)

C2 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)

C3 Pt. 1 applied (15.1.2014) by Humber Bridge Act 2013 (c. vi), ss. 1(1), 8(4)

C4 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))

Chapter 1 E+W Capital finance etc

Borrowing E+W

2 Control of borrowing E+W

(1) A local authority may not borrow money if doing so would result in a breach of—

(a) the limit for the time being determined by or for it under section 3, or

(b) any limit for the time being applicable to it under section 4.

(2) The Secretary of State may, in relation to specific borrowing by a particular local authority, by direction disapply subsection (1)(b), so far as relating to any limit for the time being applicable under section 4(1).

(3) A local authority may not, without the consent of the Treasury, borrow otherwise than in sterling.

(4) This section applies to borrowing under any power for the time being available to a local authority under any enactment, whenever passed.

Commencement Information

I1 S. 2 in force at 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004 by S.I. 2003/3034, art. 2, Sch. 1 Pt. I (with Sch. 2 para. 3)

I2 S. 2 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)