The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2007

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 (“the 2003 Regulations”) and apply in relation to local authorities in Wales.

Regulation 3 inserts a new regulation 24A into the 2003 Regulations, which is to be revoked on 1 April 2011. The new regulation provides that a local authority need not charge to a revenue account an amount in respect of a payment to be made to an officer or employee for work done in the past for which the officer or employee received unequal pay until the authority has to pay that amount to the officer or employee.

Regulation 4 inserts new regulations 24B to 24D into the 2003 Regulations. Regulations 24B and 24C make provision for the amount which a local authority must charge or credit to a revenue account in respect of a premium or discount arising from the authority’s early repayment of a loan. Regulation 24D requires a local authority which has given a loan to a person to credit to its revenue account the full amount of interest which it is due to receive in each financial year in accordance with the loan agreement for that loan.

A regulatory appraisal has been carried out in connection with these Regulations and is available from the Local Government Finance Division, Department of Local Government and Culture, National Assembly for Wales, Cathays Park, Cardiff CF10 3NQ (telephone [phone]; email [e-mail]).