39Payments towards local authority indebtednessE+W
(1)The Secretary of State may, if he thinks it appropriate, make payments to a local authority in England for application by the authority in reducing or extinguishing such debt (whether then due or not) of the authority as he thinks fit.
(2)The National Assembly for Wales may, if it thinks it appropriate, make payments to a local authority in Wales for application by the authority in reducing or extinguishing such debt (whether then due or not) of the authority as the Assembly thinks fit.
(3)The person making payments to a local authority under this section may specify how the payments are to be applied by the authority and may in particular specify—
(a)the debt or debts to be extinguished, or
(b)the debt or debts to be reduced.
(4)A payment under this section may be made subject to conditions imposed by the person making the payment.
(5)The conditions that may be imposed under subsection (4) include (in particular) conditions relating to the repayment in specified circumstances of all or part of the payment.
(6)Payments made to a local authority under this section may not be applied in reducing or extinguishing any debt of the authority to the [F1Treasury, in respect of local loans made under section 3 of the National Loans Act 1968].
(7)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
[F2(b)in relation to Wales—
(i)a county council,
(ii)a county borough council, or
(iii)a corporate joint committee established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021.]
Textual Amendments
F1Words in s. 39(6) 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. 83 (with art. 9)
F2S. 39(7)(b) substituted (25.3.2022) by The Corporate Joint Committees (General) (Wales) Regulations 2022 (S.I. 2022/372), regs. 1(2), 17
Commencement Information
I1S.39 partly in force; s. 39 in force for E. at 18.11.2003 see s. 128(2)(b)
I2S. 39 in force at 27.11.2003 for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I