Local Government Act 2003

38[F1Local loans]E+W

This section has no associated Explanatory Notes

(1)The Secretary of State may, if he thinks it appropriate, make payments to the [F2Treasury, in respect of local loans made under section 3 of the National Loans Act 1968,] so as to reduce or extinguish such debt (whether then due or not) of a local authority in England to [F3the Treasury] as he thinks fit.

(2)The National Assembly for Wales may, if it thinks it appropriate, make payments to the [F2Treasury, in respect of local loans made under section 3 of the National Loans Act 1968,] so as to reduce or extinguish such debt (whether then due or not) of a local authority in Wales to [F3the Treasury] as the Assembly thinks fit.

(3)The amount—

(a)required to extinguish a debt, or

(b)by which a payment reduces a debt,

shall be such as may be determined by [F4the Treasury].

(4)[F5The Treasury] may refuse to accept a payment which the Secretary of State or the National Assembly for Wales proposes to make to them under this section.

(5)In this section “local authority” means—

(a)in relation to England—

(i)a district council,

(ii)a county council that is the council for a county in which there are no district councils,

(iii)a London borough council,

(iv)the Common Council of the City of London, or

(v)the Council of the Isles of Scilly; and

(b)in relation to Wales, a county council or a county borough council.

Textual Amendments

F1S. 38 heading substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(2) (with art. 9)

F2Words in s. 38 substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(3) (with art. 9)

F3Words in s. 38 substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 82(4) (with art. 9)