The Local Authorities (Capital Finance) Regulations 1997

Credit ceilings of combined and superseded fire authorities

120.—(1) In this regulation, “new fire authority” means a fire authority constituted by a combination scheme under the Fire Services Act 1947(1) made in consequence of an order under Part II of the Local Government Act 1992(2) containing provision for giving effect to a structural change (within the meaning given to that expression in that Part).

(2) In relation to a new fire authority and the county council which is superseded as a fire authority by the new fire authority, in addition to the modifications made in regulations 117, 118 and 119, Schedule 3 to the Act is modified by the insertion of the following paragraphs(3)—

“10G.— (1) In this paragraph—

“combination scheme” means a combination scheme under the Fire Services Act 1947 made in consequence of an order under Part II of the Local Government Act 1992 containing provision for giving effect to a structural change (within the meaning given to that expression in that Part);

“the council”, in relation to a new fire authority, means the county council which is superseded as a fire authority by the new fire authority;

“excluded fire arrangement” means any credit arrangement which is of a description excluded by regulations made by the Secretary of State under paragraph 11(2)(4), and is transferred to a new fire authority under the provisions of a combination scheme;

“fire arrangement” means any credit arrangement, other than an excluded fire arrangement, which is transferred to a new fire authority under the provisions of a combination scheme;

“first year”, in relation to a new fire authority and the council in relation to that authority, means the financial year in which that authority is constituted; and

“new fire authority” means a fire authority constituted by a combination scheme.

(2) Where, in relation to a new fire authority, the fire services amount for the council on 31st March in the first year is a positive amount, the credit ceiling of the new fire authority on that day shall be increased by that amount, and the credit ceiling of the council on that day shall be reduced by the same amount.

(3) Where, in relation to a new fire authority, the fire services amount for the council on 31st March in the first year is a negative amount, the credit ceiling of the new fire authority on that day shall be reduced by that amount, and the credit ceiling of the council on that day shall be increased by the same amount.

(4) For the purposes of this paragraph—

(a) the fire services amount for the council for 31st March in any of the years 1991 to the first year shall be determined—

(i) by adding to the fire services amount for the council for 31st March in the immediately preceding year the amount of the fire services increase for the council for the financial year in question; and

(ii) by subtracting from the resulting sum the amount of the fire services decrease for the council for that financial year; and

(b) the fire services amount for the council for 31st March 1990 shall be nil.

(5) For the purposes of sub-paragraph (4), the amount of the fire services increase for the council for any financial year is the amount by which their credit ceiling is increased in that year by the use of credit approvals to any extent as mentioned in section 56(3)(b) in respect of their fire arrangements.

(6) For the purposes of sub-paragraph (4), the amount of the fire services decrease for the council for any financial year is the total of the following amounts—

(a) 4 per cent. of the fire services amount for the council for 31st March in the financial year immediately preceding the financial year in question;

(b) the amount which is applied or charged by the council (as an amount of credit cover) as mentioned in paragraph (b) or (c) of section 50(3) in relation to any excluded fire arrangements; and

(c) in relation to any fire arrangements and any excluded fire arrangements, the amount set aside by the council from a revenue account or from the usable part of capital receipts as provision to meet credit liabilities being an amount over and above the aggregate of—

(i) the amount referred to in sub-paragraph (b); and

(ii) the amount which, in relation to such arrangements, the council are required so to set aside by virtue of any provision of this Act or any regulations made under this Act.”.

(1)

1947 c. 41.

(2)

1992 c. 19.

(3)

Schedule 3 to the Act was modified by the insertion of paragraphs 10A, 10B, 10C, and 10D, to take account of the establishment of new police authorities, and by the insertion of paragraphs 10E, and 10F to take account of the constitution of combined fire authorities. (See regulation 21 of, and Part II of Schedule 3 to, the 1990 Regulations as amended by S.I. 1995/850, S.I. 1995/1982 and S.I. 1996/568).

(4)

See regulations 122 and 123 of these Regulations, and regulation 22 and 22A of the 1990 Regulations (regulation 22A was inserted by S.I. 1996/2539).