Law

Local Government and Housing Act 1989

United Kingdom · statute

Ask the law about thisMore laws of United KingdomFor machines: Markdown

Open at the publisher →

In force since 2026-10-05, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

sha256 4603640c9b7f6480fd027ab0f644e234d203a9a5272c5cae06c06bc2ee9ca633

Contents: 215 provisions
  1. Title and introductory text
  2. 1 Disqualification and political restriction of certain officers and staff.
  3. 2 Politically restricted posts.
  4. 3 Grant and supervision of exemptions from political restriction: Scotland and Wales .
  5. 3A Grant and supervision of exemptions from political restriction: England
  6. 3B General advice as to politically restricted posts: England
  7. 4 Designation and reports of head of paid service.
  8. 5 Designation and reports of monitoring officer.
  9. 5A Reports of monitoring officer—local authorities operating executive arrangements
  10. 6 Officer responsible for financial administration of certain authorities.
  11. 7 All staff to be appointed on merit.
  12. 8 Duty to adopt standing orders with respect to staff.
  13. 9 Assistants for political groups.
  14. 10 Limit on paid leave for local authority duties.
  15. 11 Confidentiality of staff records.
  16. 12 Conflict of interest in staff negotiations.
  17. 13 Voting rights of members of certain committees: England and Wales.
  18. 14 Voting rights of members of certain committees: Scotland.
  19. 15 Duty to allocate seats to political groups.
  20. 16 Duty to give effect to allocations.
  21. 17 Exceptions to and extensions of political balance requirements.
  22. 18 Schemes for basic, attendance and special responsibility allowances for local authority members.
  23. 19 Members’ interests.
  24. 20 Duty to adopt certain procedural standing orders.
  25. 21 Interpretation of Part I.
  26. 22 Advisory Commissioners.
  27. 23 Advice and guidance by Commissions for Local Administration and ScottishCommissioner.
  28. 24 Expenses of Commissions for Local Administration.
  29. 25 Annual reports of Commissions: new provisions.
  30. 26 Implementation of recommendations of Commissioners for Local Administration in England and Wales.
  31. 27 Implementation of recommendations of Commissioner for Local Administrationin Scotland.
  32. 28 Consideration of adverse reports: England and Wales.
  33. 29 Consideration of adverse reports: Scotland.
  34. 30 Declaration of acceptance of office of councillor etc.
  35. 31 National Code of Local Government Conduct.
  36. 32 Anonymity in reports on investigations.
  37. 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  38. 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  39. 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  40. 36 Amendments of existing power to incur discretionary expenditure.
  41. 37 Conditions of provision of financial assistance.
  42. 38 Information etc. on individuals’ rights.
  43. 39 Application of Part IV.
  44. 40 Capital purposes.
  45. 41 Expenditure to be charged to revenue account.
  46. 42 Expenditure excluded from section 41(1).
  47. 43 Borrowing powers.
  48. 44 Borrowing limits etc.
  49. 45 The authority’s own limits.
  50. 46 Register of loan instruments and certain existing loans.
  51. 47 Security for money borrowed etc.
  52. 48 Credit arrangements.
  53. 49 Initial and subsequent cost of credit arrangements.
  54. 50 Limits on powers to enter into credit arrangements.
  55. 51 Variation of credit arrangements.
  56. 52 Transitional credit arrangements.
  57. 53 Basic credit approvals.
  58. 54 Supplementary credit approvals.
  59. 55 Criteria for issuing credit approvals.
  60. 56 Use of credit approvals by local authorities.
  61. 57 Effect of certain capital grants on credit approvals.
  62. 58 Capital receipts.
  63. 59 The reserved part of capital receipts.
  64. 60 The usable balance of capital receipts.
  65. 61 Capital receipts not wholly in money paid to the authority.
  66. 62 Aggregate credit limit.
  67. 63 Duty to set certain amounts aside as provision to meet credit liabilities.
  68. 64 Use of amounts set aside to meet credit liabilities.
  69. 65 Information.
  70. 66 Interpretation of Part IV.
  71. 67 Application of, and orders under, Part V.
  72. 68 Companies controlled by local authorities and arm’s length companies.
  73. 69 Companies subject to local authority influence.
  74. 70 Requirements for companies under control or subject to influence of localauthorities.
  75. 71 Control of minority interests etc. in certain companies.
  76. 72 Trusts influenced by local authorities.
  77. 73 Authorities acting jointly and by committees.
  78. 74 Duty to keep Housing Revenue Account.
  79. 75 The keeping of the Housing Revenue Account.
  80. 76 Duty to prevent debit balance on Housing Revenue Account.
  81. 77 Power to keep Housing Repairs Account.
  82. 78 Directions to secure proper accounting.
  83. 78A Directions as to treatment of service charges, &c.
  84. 78B Directions as to accounting for work subject to competitive tendering.
  85. 79 Housing Revenue Account subsidy.
  86. 80 Calculation of Housing Revenue Account subsidy.
  87. 80B Agreements to exclude certain authorities or property
  88. 80ZA Negative amounts of subsidy payable to Welsh Ministers
  89. 80A Final decision on amount of Housing Revenue Account subsidy.
  90. 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  91. 82 Residual debt subsidy for year 1989–90.
  92. 83 Calculation of residual debt subsidy.
  93. 84 Adjustment of housing subsidy for year 1989-90.
  94. 85 Power to obtain information.
  95. 86 Recoupment of subsidy in certain cases.
  96. 87 Determinations and directions.
  97. 87A Orders amending Part 6
  98. 88 Construction and application of Part VI.
  99. 89 Declaration of renewal area.
  100. 90 Conditions for declaration of renewal area.
  101. 91 Renewal area: steps to be taken after declaration or extension
  102. 92 Duty to publish information.
  103. 93 General powers of local housing authority.
  104. 94 Power to apply for orders extinguishing right to use vehicles on highway.
  105. 95 Exclusion of land from, or termination of, renewal area.
  106. 96 Contributions by the Secretary of State.
  107. 97 Powers of entry and penalty for obstruction.
  108. 98 Part VIII of Housing Act 1985.
  109. 99 Directions and guidance.
  110. 100 Interpretation of Part VII.
  111. 101 Grants for improvements and repairs.
  112. 102 Applications for grants.
  113. 103 The age of the property.
  114. 104 The interest of the applicant in the property.
  115. 105 Common parts grants: preliminary conditions.
  116. 106 Certificate as to future occupation, etc.
  117. 107 Certain dwellings and works excluded from grant aid.
  118. 108 Restriction on grants for works already begun.
  119. 109 Owner-occupiers and tenants.
  120. 110 Landlords.
  121. 111 Tenants’ common parts applications.
  122. 112 Duty to approve applications to render certain dwellings fit for humanhabitation.
  123. 113 Duty to approve applications arising out of certain statutory notices.
  124. 114 Approval of applications to provide certain facilities for the disabled.
  125. 115 Discretionary approval of certain applications.
  126. 116 Approval and refusal of applications.
  127. 117 Payment of grants.
  128. 118 Conditions as to completion of works.
  129. 119 Condition as to availability for letting.
  130. 120 Condition requiring repayment of grant in case of certain disposals wherecertificate of intended letting given.
  131. 121 Condition requiring repayment of grant in case of certain disposals whereowner-occupation certificate given.
  132. 122 Conditions relating to HMO grant.
  133. 123 Condition requiring repayment of grant on certain disposals in case oflandlord’s common parts application.
  134. 124 Meaning of relevant disposal and exempt disposal for the purposes ofsections 120 to 123.
  135. 125 Repayment of grant.
  136. 126 Renovation grants relating to two or more dwellings.
  137. 127 Group repair schemes and persons eligible to participate.
  138. 128 Qualifying buildings and external works, etc.
  139. 129 Contributions by participants and limitations on works.
  140. 130 Payment of balance of costs in case of certain disposals.
  141. 131 Assistance for provision of minor works to dwellings.
  142. 132 Contributions by the Secretary of State.
  143. 133 Persons entitled to grants.
  144. 134 Cases in which grants may be re-calculated, withheld or repaid.
  145. 135 Power of local housing authority to carry out works which would attractgrant.
  146. 136 Parsonages, charities etc.
  147. 137 Orders and regulations.
  148. 138 Interpretation of Part VIII.
  149. 139 Local Government Finance Act 1988: amendments.
  150. 140 Scottish non-domestic rates: interim provisions.
  151. 141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  152. 142 Powers to vary incidence of standard community charge: Scotland.
  153. 143 Reduced liability for personal community charges: Scotland.
  154. 145 Amendment of Abolition of Domestic Rates Etc. (Scotland) Act 1987 andother enactments: Scotland.
  155. 146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  156. 147 Adjustment of block grant.
  157. 148 Rate support grant, 1985/86.
  158. 149 Statutory references to rating.
  159. 150 Power to allow charges.
  160. 151 Power to amend provisions about charges.
  161. 152 Interpretation, consultation and commencement of ss. 150 and 151.
  162. 153 Charges: temporary traffic signs.
  163. 154 Charges: library services.
  164. 155 Emergency financial assistance to local authorities.
  165. 156 Contingency planning and co-ordination in respect of emergencies ordisasters.
  166. 157 Commutation of, and interest on, periodic payments of grants etc.
  167. 158 Electronic transfer of documents.
  168. 159 Prevention of continuance or recurrence of default of local authority: Scotland.
  169. 160 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  170. 161 Housing authorities not required to keep a housing stock.
  171. 162 Determination of rents.
  172. 163 Exchanges between secure and assured tenants.
  173. 164 Exception to the right to buy in case of certain dwelling-houses forpersons of pensionable age.
  174. 165 Unfit housing etc.
  175. 166 Amendments relating to defective housing.
  176. 167 Reports to tenants etc. on local housing authority functions.
  177. 168 Contributions towards costs of housing mobility arrangements.
  178. 169 Powers of local authorities and Secretary of State as respects services etc. for owners and occupiers of houses for work on them.
  179. 170 Powers of local authorities and Secretary of State as respects services,etc., for owners and occupiers of houses for work on them: Scotland.
  180. 171 Winding up of home purchase assistance scheme.
  181. 172 Transfer of new town housing stock.
  182. 173 Consent required for subsequent disposals.
  183. 174 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  184. 175 Repeal of the Town Development Act 1952.
  185. 176 Amendment of definition of occupation for purposes of purchase of house by secure tenant: Scotland.
  186. 177 Sale to secure tenants of houses provided for persons of pensionable age: Scotland.
  187. 178 Application of secure tenant’s right to buy to cases where landlord is lessee: Scotland.
  188. 179 Amendment of powers of Scottish Homes to dispose of land.
  189. 180 Race relations: codes of practice in housing field.
  190. 181 Duty of landlord to inform secure tenant seeking to buy house about changes in law: Scotland.
  191. 182 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  192. 183 Extension of powers of Housing Corporation and Housing for Wales to give financial assistance.
  193. 184 Extension of functions of Audit Commission.
  194. 185 Publication of reports of Controller of Audit: Scotland.
  195. 186 Security of tenure on ending of long residential tenancies.
  196. 187 Construction industry: grants and guarantees.
  197. 188 Repeal of s. 2 of the Education (Grants and Awards) Act 1984.
  198. 189 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  199. 190 Regulations.
  200. 191 Separate provisions for Wales.
  201. 192 Financial provisions.
  202. 193 Application to Isles of Scilly.
  203. 194 Amendments and repeals.
  204. 195 Short title, commencement and extent.
  205. SCHEDULE 1 Political Balance on Local Authority Committees etc.
  206. SCHEDULE 3 Provisions Supplementing Part IV
  207. SCHEDULE 4 The Keeping of the Housing Revenue Account
  208. SCHEDULE 5 Local Government Finance Act 1988: Amendments
  209. SCHEDULE 6 Amendment of Scottish Enactments
  210. SCHEDULE 7 Compensation Provisions of Landlord and Tenant Act 1954, Part II
  211. SCHEDULE 8 Welsh Language Names for Local Authorities
  212. SCHEDULE 9 Amendments of Parts VI, IX, XI, XVII and XVIII of the Housing Act 1985
  213. SCHEDULE 10 Security of Tenure on Ending of Long Residential Tenancies
  214. SCHEDULE 11 Minor And Consequential Amendments
  215. SCHEDULE 12 Enactments Repealed

Proposed changes to this act

No one has proposed a change to this act yet.

215 provisions

37 Conditions of provision of financial assistance.

After section 137 of the Local Government Act 1972 there shall be inserted the following section— Financial assistance to be conditional on provision of information. 137A (1) If in any financial year a local authority provides financial assistance— (a) to a voluntary organisation, as defined in subsection (2D) of section 137above, or (b) to a body or fund falling within subsection (3) of that section, and the total amount so provided to that organisation, body or fund in that year equals or exceeds the relevant minimum, then, as a condition of the assistance, the authority shall require the organisation, body or fund, within the period of twelve months beginning on the date when the assistance is provided, to furnish to the authority a statement in writing of the use to which that amount has been put. (2) In this section “financial assistance” means assistance by way of grant or loan or by entering into a guarantee to secure any money borrowed and, in relation to any financial assistance,— (a) any reference to the amount of the assistance is a reference to the amount of money granted or lent by the local authority or borrowed in reliance on the local authority’s guarantee; and (b) any reference to the date when the assistance is provided is a referenceto the date on which the grant or loan is made or, as the case may be, on which the guarantee is entered into. (3) The relevant minimum referred to in subsection (1) above is £2,000 or such higher sum as the Secretary of State may by order specify. (4) It shall be a sufficient compliance with a requirement imposed by virtue of subsection (1) above that there is furnished to the local authority concerned an annual report or accounts which contain the information required to be in the statement. (5) A statement (or any report or accounts) provided to a local authority in pursuance of such a requirement shall be deposited with the proper officer of the authority. (6) In this section “local authority” includes the Common Council.

Propose a change

38 Information etc. on individuals’ rights.

(1) Section 142 of the Local Government Act 1972 (provision of information, etc.) shall be amended as follows. (2) There shall be inserted after subsection (2)— (2A) A local authority may assist voluntary organisations to provide for individuals— (a) information and advice concerning those individuals’ rights and obligations; and (b) assistance, either by the making or receiving of communications or by providing representation to or before any person or body, in asserting those rights or fulfilling those obligations.

Propose a change

39 Application of Part IV.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

40 Capital purposes.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

41 Expenditure to be charged to revenue account.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

42 Expenditure excluded from section 41(1).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

43 Borrowing powers.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

44 Borrowing limits etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

45 The authority’s own limits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

46 Register of loan instruments and certain existing loans.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

47 Security for money borrowed etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

48 Credit arrangements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

49 Initial and subsequent cost of credit arrangements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

50 Limits on powers to enter into credit arrangements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

51 Variation of credit arrangements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

52 Transitional credit arrangements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

53 Basic credit approvals.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

54 Supplementary credit approvals.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

55 Criteria for issuing credit approvals.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

56 Use of credit approvals by local authorities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

57 Effect of certain capital grants on credit approvals.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

58 Capital receipts.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

59 The reserved part of capital receipts.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

60 The usable balance of capital receipts.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

61 Capital receipts not wholly in money paid to the authority.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

62 Aggregate credit limit.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

63 Duty to set certain amounts aside as provision to meet credit liabilities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

64 Use of amounts set aside to meet credit liabilities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

65 Information.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

66 Interpretation of Part IV.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

67 Application of, and orders under, Part V.

(1) Any reference in this Part to a company is a reference to a body corporate of one of the following descriptions— (a) a company limited by shares; (b) a company limited by guarantee and not having a share capital; (c) a company limited by guarantee and having a share capital; (d) an unlimited company; (da) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014; and (e) a society registered or deemed to be registered ... under the Industrial and Provident Societies Act (Northern Ireland) 1969. (2) Expressions used in paragraphs (a) to (d) of subsection (1) above have the same meaning as in the Companies Acts (see section 1174 of, and Schedule 8 to, the Companies Act 2006). (3) Any reference in this Part to a local authority is a reference to a body of one of the following descriptions— (a) a county council; (aa) a county borough council; (ab) a corporate joint committee established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021; (b) a district council; (bb) the Greater London Authority; (bc) a functional body, within the meaning of the Greater London Authority Act 1999; (c) a London borough council; (d) the Common Council of the City of London in its capacity as a local authority, police authority or port health authority; (e) the Council of the Isles of Scilly; (f) a parish council; (g) a community council; (ga) the Greater London Magistrates’ Courts Authority; (h) a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies; (ha) a mayoral combined authority (which has the same meaning as in Part 6 of the Local Democracy, Economic Development and Construction Act 2009 — see section 107A(8) of that Act) in its capacity as a fire and rescue authority by virtue of section 1(2)(f) or (g) of the Fire and Rescue Services Act 2004; (hb) a mayoral CCA (which has the same meaning as in Chapter 1 of Part 2 of the Levelling-up and Regeneration Act 2023 — see section 27(8) of that Act) in its capacity as a fire and rescue authority by virtue of section 1(2)(f) or (g) of the Fire and Rescue Services Act 2004; (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (j) an authority established under section 10 of the Local Government Act 1985 (waste disposal authorities); (k) a joint authority established by Part IV of that Act (fire and rescue services and transport); (l) any body established pursuant to an order under section 67 of that Act (successors to residuary bodies); (m) the Broads Authority; (ma) a National Park authority; (n) any joint board the constituent members of which consist of any of the bodies specified above; (o) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (oo) a joint planning board constituted for an area in Wales outside a National Park by an order under section 2(1B) of the Town and Country Planning Act 1990; and (p) a Passenger Transport Executive. (4) Any power to make an order under this Part shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and under any such power different provision maybe made for different cases and different descriptions of cases (including different provision for different areas). (5) The power under subsection (4) above to make differential provision includes, in particular, power to make different provision for different local authorities or descriptions of local authority.

Propose a change

68 Companies controlled by local authorities and arm’s length companies.

(1) For the purposes of this Part, unless the Secretary of State otherwise directs, a company is for the time being under the control of a local authority if— (a) the company is at that time a subsidiary (as defined in section 1159 of the Companies Act 2006) of the local authority; or (b) paragraph (a) above does not apply but the local authority have at that time power to control a majority of the votes at a general meeting of the company as mentioned in subsection (3) below; or (c) paragraph (a) above does not apply but the local authority have at that time power to appoint or remove a majority of the board of directors of the company; or (d) the company is under the control of another company which, by virtue of this subsection, is itself under the control of the local authority; and, for the purposes of paragraph (d) above, any question whether one company is under the control of another shall be determined by applying the preceding provisions of this subsection, substituting a reference to the other company for any reference to the local authority. (2) A direction under subsection (1) above— (a) may be limited in time and may be made conditional upon such matters as appear to the Secretary of State to be appropriate; and (b) may be made with respect to a particular company or a description of companies specified in the direction. (3) The reference in subsection (1)(b) above to a power to control a majority of votes at a general meeting of the company is a reference to a power which is exercisable— (a) in the case of a company limited by shares, through the holding of equity share capital in any one or more of the following ways, namely, by the local authority, by nominees of the local authority and by persons whose shareholding is under the control of the local authority; or (b) in the case of any company, through the holding of votes at a general meeting of the company in any one or more of the following ways, namely, by the local authority, by a group of members of the company the composition of which is controlled by the local authority and by persons who have contractually bound themselves to vote in accordance with the instructions ofthe local authority; or (c) partly in one of those ways and partly in the other. (4) Paragraph 3 of Schedule 6 to the Companies Act 2006 (right to appoint or remove a majority of a company's board of directors) and the following paragraphs of that Schedule as they have effect in relation to paragraph 3 apply for the purposes of subsection (1)(c) above with the substitution for the word “right”, wherever it occurs, of the word “power”. (5) For the purposes of subsection (3)(a) above, a person’s shareholding is under the control of a local authority if— (a) his right to hold the shares arose because of some action which the authority took, or refrained from taking, in order to enable him to have the right; and (b) the local authority, alone or jointly with one or more other persons can require him to transfer his shareholding (or any part of it) to another person. (6) Notwithstanding that, by virtue of the preceding provisions of this section, a company is for the time being under the control of a local authority, the company is for the purposes of this Part an “arm’s length company”, in relation to any financial year if, at a time before the beginning of that year, the authority resolved that the company should be an arm’s length company and, at all times from the passing of that resolution up to the end of the financial year in question, the following conditions have applied while the company has been under the control of the local authority,— (a) that each of the directors of the company was appointed for a fixed term of at least two years; (b) that, subject to subsection (7) below, no director of the company has been removed by resolution under section 168 of the Companies Act 2006; (c) that not more than one-fifth of the directors of the company have been members or officers of the authority; (d) that the company has not occupied (as tenant or otherwise) any land in which the authority have an interest otherwise than for the best consideration reasonably obtainable; (e) that the company has entered into an agreement with the authority that the company will use its best endeavours to produce a specified positive return on its assets; (f) that, except for the purpose of enabling the company to acquire fixed assets or to provide it with working capital, the authority have not lent money to the company or guaranteed any sum borrowed by it or subscribed for any securities in the company; (g) that the authority have not made any grant to the company except in pursuance of an agreement or undertaking entered into before the financial year (within the meaning of the Companies Act 2006) of the company in which the grant was made; and (h) that the authority have not made any grant to the company the amount of which is in any way related to the financial results of the company in any period. (7) If the Secretary of State so directs, the removal of a director shall be disregarded for the purposes of subsection (6)(b) above; but the Secretary of State shall not give such a direction if it appears to him that the director was removed with a view to influencing the management of the company for other than commercial reasons.

Propose a change

69 Companies subject to local authority influence.

(1) For the purposes of this Part, unless the Secretary of State otherwise directs, a company which is not at the time under the control of a local authority is for the time being subject to the influence of a local authority if it is not a banking or insurance company or a member of a banking or insurance group and at that time there is such a business relationship between the company and the authority as is referred to in subsection (3) below and either— (a) at least 20 per cent. of the total voting rights of all the members having the right to vote at a general meeting of the company are held by persons who are associated with the authority as mentioned in subsection (5) below; or (b) at least 20 per cent. of the directors of the company are persons who are so associated; or (c) at least 20 per cent. of the total voting rights at a meeting of the directors of the company are held by persons who are so associated. (2) A direction under subsection (1) above— (a) may be limited in time and may be made conditional upon such matters as appear to the Secretary of State to be appropriate; and (b) may be made with respect to a particular company or a description of companies specified in the direction. (3) For the purposes of this section there is a business relationship between a company and a local authority at any time if the condition in any one or more of the following paragraphs is fulfilled— (a) within a period of twelve months which includes that time the aggregate of the payments to the company by the authority or by another company which is under the control of the authority represents more than one-half of thecompany’s turnover, as shown in its profit and loss account for the most recent financial year for which the company’s auditors have made a report on the accounts or, if there is no such account, as estimated by the authority for the period of twelve months preceding the date of the estimate or for such part of that period as follows the formation of the company; (b) more than one-half of the company’s turnover referred to in paragraph (a) above is derived from the exploitation of assets of any description in which the local authority or a company under the control of the authority has an interest (disregarding an interest in land which is in reversion on a lease granted for more than 7 years); (c) the aggregate of— (i) grants made either by the authority and being expenditure for capital purposes or by a company under the control of the authority, and (ii) the nominal value of shares or stock in the company which is owned by the authority or by a company under the control of the authority, exceeds one-half of the net assets of the company; (d) the aggregate of— (i) grants falling within paragraph (c)(i) above, (ii) loans or other advances made or guaranteed by the authority or by a company under the control of the authority, and (iii) the nominal value referred to in paragraph (c)(ii) above, exceeds one-half of the fixed and current assets of the company; (e) the company at that time occupies land by virtue of an interest which it obtained from the local authority or a company under the control of the authority and which it so obtained at less than the best consideration reasonably obtainable; and (f) the company intends at that time to enter into (or complete) a transaction and, when that is done, there will then be a business relationship between the company and the authority by virtue of any of paragraphs (a) to (e) above. (4) In subsection (3) above— (a) the reference in paragraph (c) to the net assets of the company shall beconstrued in accordance with section 677(2) and (3) of the Companies Act 2006; and (b) “fixed assets” means assets of a company that are intended for use on a continuing basis in the company's activities, and “current assets” means assets not intended for such use; and in either case, the reference is a reference to those assets as shown in the most recent balance sheet of the company on which, at the time in question, the auditors have made a report or, if there is no such balance sheet, as estimated by the local authority for the time in question. (5) For the purposes of this section, a person is at any time associated with a local authority if— (a) he is at that time a member of the authority; (b) he is at that time an officer of the authority; (c) he is at that time both an employee and either a director, manager, secretary or other similar officer of a company which is under the control of the authority; or (d) at any time within the preceding four years he has been associated with the authority by virtue of paragraph (a) above. (6) If and to the extent that the Secretary of State by order so provides, a person is at any time associated with a local authority if— (a) at that time he is, or is employed by or by a subsidiary of, a person who for the time being has a contractual relationship with the authority to provide— (i) advice with regard to the authority’s interest in any company (whether existing or proposed to be formed), or (ii) advice with regard to the management of an undertaking or the development of land by a company (whether existing or proposed to be formed) with which it is proposed that the authority should enter into any lease, licence or other contract or to which it is proposed that the authority should make any grant or loan, or (iii) services which facilitate the exercise of the authority’s rights in any company (whether by acting as the authority’s representative at a meeting of the company or as a director appointed by the authority or otherwise); (b) at any time within the preceding four years, he has been associated with the authority by virtue of paragraph (b) or paragraph (c) of subsection (5)above; (c) he is at that time the spouse or civil partner of, or carries on business in partnership with, a person who is associated with the authority by virtue of subsection (5)(a) above; or (d) he holds a relevant office in a political association or other body which, in the nomination paper of a person who is an elected member of the authority, formed part of that person’s description. (7) For the purposes of subsection (6)(d) above, an office in a political association or body is relevant to a local authority in the following circumstances— (a) if the association or body is active only in the area of the local authority, any office in it is relevant; and (b) in any other case, an office is relevant only if it is in a branch or other part of the association or body which is active in the area of the local authority. (8) In relation to a company which is a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, any reference in this section to the directors of the company is a reference to the members of the committee of management. (9) Subject to subsections (4) and (8) and section 67 above, expressions used in this section have the same meaning as in the Companies Acts (as defined in section 2 of the Companies Act 2006).

Propose a change

70 Requirements for companies under control or subject to influence of localauthorities.

(1) In relation to companies under the control of local authorities and companies subject to the influence of local authorities, the Secretary of State may by order make provision regulating, forbidding or requiring the taking of certain actions or courses of action; and an order under this subsection may— (a) make provision in relation to those companies which are arm’s length companies different from that applicable to companies which are not; and (b) make provision in relation to companies under the control of local authorities different from that applicable in relation to companies under the influence of local authorities. (2) It shall be the duty of every local authority to ensure, so far as practicable, that any company under its control complies with any provisions made by order under subsection (1) above which are for the time being applicable to it; and if a local authority fails to perform that duty in relation to any company, any payment made by the authority to that company and any other expenditure incurred bythe authority in contravention of any such provisions shall be deemed for the purposes of the Audit Commission Act 1998 and Part 2 of the Public Audit (Wales) Act 2004 to be expenditure which is unlawful. (3) In order to secure compliance, in relation to companies subject to the influence of a local authority, with provisions made by virtue of subsection (1) above, an order under that subsection may prescribe requirements to be complied with by the local authority in relation to conditions to be included in such leases, licences, contracts, gifts, grants or loans as may be so prescribed which are made with or to a company subject to the influence of the local authority. (4) It shall be the duty of a local authority to comply with any requirements for the time being applicable to it under subsection (3) above; and if a local authority fails to perform that duty, any expenditure which is incurred by the local authority under the lease, licence, contract, gift, grant or loan in question shall be deemed for the purposes of the Audit Commission Act 1998 and Part 2 of the Public Audit (Wales) Act 2004 to be expenditure which is unlawful. (5) Without prejudice to the generality of the power conferred by subsection (1) above, an order under that subsection may make provision requiring acompany or local authority to obtain the consent of the Secretary of State, or of the Audit Commission for Local Authorities and the National Health Service in England or of the Auditor General for Wales, before taking any particular action or course of action. (6) An order under subsection (1) may be made in relation to— (a) all local authorities, (b) particular local authorities, or (c) particular descriptions of local authority.

Propose a change

71 Control of minority interests etc. in certain companies.

(1) In relation to a local authority, subsection (2) below applies to any company other than— (a) a company which is or, if the action referred to in that subsection is taken, will be under the control of the local authority; and (b) a company of a description specified for the purposes of this section by an order made by the Secretary of State; and in this section an “authorised company” means a company falling within paragraph (b) above. (2) Except with the approval of the Secretary of State, in relation to acompany to which this subsection applies, a local authority may not— (a) subscribe for, or acquire, whether in their own name or in the name of a nominee, any shares or share warrants in the company; (b) become or remain a member of the company if it is limited by guarantee; (c) exercise any power, however arising, to nominate any person to become a member of the company; (d) exercise any power to appoint directors of the company; (e) permit any officer of the authority, in the course of his employment, to make any such nomination or appointment as is referred to in paragraph (c) or paragraph (d) above; or (f) permit an officer of the authority, in the course of his employment, to become or remain a member or director of the company. (3) Any approval of the Secretary of State under subsection (2) above may be general or relate to any specific matter or company. (4) A local authority may not take any action, or refrain from exercising any right, which would have the result that a person who is disqualified from membership of the authority (otherwise than by being employed by that or any other local authority or by a company which is under the control of a local authority) becomes a member or director of an authorised company or is authorised, in accordance with section 323 of the Companies Act 2006, to act as the authority’s representative at a general meeting of an authorised company (or at meetings of an authorised company which include a general meeting). (5) In any case where,— (a) in accordance with section 323 of the Companies Act 2006, a local authority have authorised a member or officer of the authority to act as mentioned in subsection (4) above, or (b) a member or officer of a local authority has become a member or director of an authorised company as mentioned in subsection (7) below, the authority shall make arrangements (whether by standing orders or otherwise) for enabling members of the authority, in the course of proceedings of the authority (or of any committee or sub-committee thereof), or, where a local authority is operating executive arrangements under Part II of the Local Government Act 2000, for enabling members of the executive, in the course of proceedings of the executive (or of any committee of the executive), to put to the member or officer concerned questions about the activities of the company. (6) Nothing in subsection (5) above shall require the member or officer referred to in that subsection to disclose any information about the company which has been communicated to him in confidence. (7) Any member or officer of a local authority who has become a member or director of an authorised company by virtue of— (a) a nomination made by the authority, or (b) election at a meeting of the company at which voting rights were exercisable (whether or not exercised) by the authority or by a person bound to vote in accordance with the instructions of the authority, or (c) an appointment made by the directors of another company, the majority of whom became directors of that company by virtue of a nomination made by the authority or election at a meeting of the company at which voting rights were exercisable as mentioned in paragraph (b) above, shall make a declaration to the authority, in such form as they may require, of any remuneration or re-imbursement of expenses which he receives from the company as a member or director or in respect of anything done on behalf of the company. (8) Subject to section 67 above, expressions used in this section have the same meaning as in the Companies Acts (as defined in section 2 of the Companies Act 2006).

Propose a change

72 Trusts influenced by local authorities.

(1) The Secretary of State may by order made by statutory instrument adapt theprovisions of section 69 above so as to make them applicable to trusts which are not charitable; and, subject to subsection (2) below, this Part shall apply in relation to trusts which are subject to local authority influence by virtue of that section as so adapted as it applies in relation to companies which are subject to local authority influence. (2) In the exercise of the power conferred by section 70 above, as applied in relation to trusts by subsection (1) above, the Secretary of State may make different provision for trusts as compared with companies.

Propose a change

73 Authorities acting jointly and by committees.

(1) In any case where— (a) apart from this section a company would not be under the control of anyone local authority, but (b) if the actions, powers and interests of two or more local authorities were treated as those of one authority alone, the company would be under the control of that one authority, the company shall be treated for the purposes of this Part as under the control of each of the two or more local authorities mentioned in paragraph (b) above. (2) In any case where, apart from this section, a company would not be treated as being subject to the influence of any one local authority, it shall be treated as being subject to the influence of each of a number of local authorities (in this section referred to as a “group”) if the conditions in subsection (3) below are fulfilled with respect to the company and the group of authorities. (3) The conditions referred to in subsection (2) above are— (a) that at least one of the conditions in paragraphs (a) to (e) of subsection (3) of section 69 above would be fulfilled— (i) if any reference therein to the company being under the control of a local authority were a reference to its being under the control of any one of the authorities in the group or of any two or more of them taken together; and (ii) if any other reference therein to the local authority were a reference to any two or more of the authorities in the group taken together; and (b) that at least one of the conditions in paragraphs (a) to (c) of subsection(1) of section 69 above would be fulfilled if any reference therein to the local authority were a reference to those local authorities who are taken into account under sub-paragraph (i) or sub-paragraph (ii) of paragraph (a) above taken together; and (c) that if the condition (or one of the conditions) which would be fulfilled as mentioned in paragraph (b) above is that in subsection (1)(a) of section 69 above, then, so far as concerns each local authority in the group, at least one person who, in terms of subsection (5) of that section, is associated with that authority has the right to vote at a general meeting of the company; and (d) that, if paragraph (c) above does not apply, then, so far as concerns each local authority in the group, a person who, in terms of section 69(5) above, is associated with the authority is a director of the company. (4) For the purposes of this Part, anything done, and any power exercisable,by a committee or sub-committee of a local authority, or by any of the authority’s officers or, where a local authority is operating executive arrangements under Part II of the Local Government Act 2000, by the authority’s executive, any committee of the executive, or any member of the executive, shall be treated as done or, as the case may be,exercisable by the authority. (5) For the purposes of this Part, anything done, and any power exercisable,by a joint committee of two or more local authorities or by a sub-committee of such a joint committee shall be treated as done or, as the case may be, exercisable by each of the local authorities concerned.

Propose a change

74 Duty to keep Housing Revenue Account.

(1) A local housing authority shall keep, in accordance with proper practices, an account, called the “Housing Revenue Account”, of sums falling to be credited or debited in respect of— (a) houses and other buildings which have been provided under Part II of the Housing Act 1985 (provision of housing); (b) land which has been acquired or appropriated for the purposes of thatPart; (c) houses purchased under section 192 of that Act (purchase of house foundon appeal against repair notice to be unfit and beyond repair at reasonable cost); (d) dwellings in respect of which a local authority have received assistance under section 1 or section 4(2A) of the Housing (RuralWorkers) Act 1926; (e) any property which— (i) with the consent of the Secretary of State given under section 417(1) of the Housing Act 1985, (ii) with the consent of a Minister given under section 50(1)(e) of the Housing (Financial Provisions) Act 1958, or (iii) by virtue of section 50(2) of that Act (houses vesting in local authority on default of another person), was brought within the corresponding account kept under Part XIII of the Housing Act 1985 for years beginning before 1st April 1990; and (f) such land, houses or other buildings not within the preceding paragraphsas the Secretary of State may direct. (2) References in subsection (1) above and the other provisions of this Part to provisions of the Housing Act 1985 include, where the context so admits, references to the corresponding provisions of earlier enactments; and the reference in paragraph (b) of that subsection to land acquired for the purposes of Part II of that Act includes— (a) land which a local authority were deemed to have acquired under Part V of the Housing Act 1957 by virtue of section 57(6) of that Act (land acquired for re-development in pursuance of re-development plan) before the repeal of that section on 25th August 1969; and (b) any structures on such land which were made available to a local authority under section 1 of the Housing (Temporary Accommodation) Act 1944 (prefabs). (3) Paragraphs (a) to (e) of subsection (1) above shall not apply to— (a) land, houses or other buildings disposed of by the authority; (b) land acquired by the authority for the purpose of disposing of houses provided, or to be provided, on the land, or of disposing of the land to a person who intends to provide housing accommodation on it or facilities which serve a beneficial purpose in connection with the requirements of persons for whom housing accommodation is provided; (c) houses provided by the authority on land so acquired; or (d) such land, houses or other buildings as the Secretary of State may direct; and paragraph (a) of that subsection shall not apply to houses and other buildings provided on or before 6th February 1919. (4) A local housing authority not possessing property to which subsection (1)above applies shall nevertheless keep a Housing Revenue Account unless the Secretary of State consents to their not doing so and they comply with such conditions (if any) as may be specified in the consent. (5) In this Part— (a) references to the houses or other property of an authority within the authority’s Housing Revenue Account are references to the houses, dwellings or other property to which subsection (1) above for the time being applies;and (b) references (however expressed) to a disposal are references to a conveyance of the freehold, or a grant or assignment of a lease (other than a shared ownership lease) which is a long tenancy within the meaning given by section 115 of the Housing Act 1985 or which is a long tenancy within the meaning given by paragraph 8 of Schedule 2 to the Renting Homes (Wales) Act 2016 (anaw 1). (6) Sections 417 to 420 of, and Schedule 14 to, the Housing Act 1985 (which are superseded by this section, sections 75 to 78 below and Schedule 4 to this Act) shall cease to have effect.

Propose a change

75 The keeping of the Housing Revenue Account.

Schedule 4 to this Act shall have effect with respect to the keeping of a local housing authority’s Housing Revenue Account, as follows— Part I - Credits to the account. Part II - Debits to the account. Part III - Special cases. Part IV - Supplementary provisions.

Propose a change

76 Duty to prevent debit balance on Housing Revenue Account.

(1) This section applies where for any year (“the relevant year”) a local housing authority who are required to keep a Housing Revenue Account possess any houses or other property within the account. (2) The authority shall, during the months of January and February immediately preceding the relevant year, formulate proposals which satisfy the requirements of subsection (3) below and relate to— (a) the income of the authority for the year from rents and other charges in respect of houses and other property within their Housing Revenue Account; (b) the expenditure of the authority for the year in respect of the repair,maintenance, supervision and management of such property; and (c) such other matters connected with the exercise of the authority’s functions in relation to such property as the Secretary of State may direct. (3) Proposals formulated by the authority under subsection (2) above satisfy the requirements of this subsection at any time if, on the assumption that thefollowing will prove correct, namely— (a) the best assumptions that they are able to make at that time as to all matters which may affect the amounts falling to be credited or debited to their Housing Revenue Account for the relevant year; and (b) the best estimates that they are able to make at that time of the amounts which, on those assumptions, will fall to be so credited or debited, implementation of the proposals will secure that the account for that year does not show a debit balance. (4) No assumptions shall be made under subsection (3) above as to the exerciseby the Secretary of State of any power except on the basis of information published by him or on his behalf or supplied by him to the authority. (5) Subject to subsections (6) and (7) below, the authority shall implement the proposals formulated by them under subsection (2) above. (6) The authority shall from time to time determine whether the proposals formulated under subsection (2) above satisfy the requirements of subsection(3) above; and— (a) termine that question in the affirmative, they may make such revisions of the proposals as they think fit, so long as the proposals (as so revised) continue to satisfy those requirements; (b) if they determine that question in the negative, they shall make such revisions of the proposals as are reasonably practicable towards securing that the proposals (as so revised) satisfy those requirements. (7) Where the proposals formulated under subsection (2) above are revised under subsection (6) above, subsections (3) to (6) above shall apply inrelation to the proposals as so revised as they applied in relation to the proposals as originally formulated. (8) The authority shall, within one month of formulating their proposals under subsection (2) above, or of revising those proposals under subsection (6)above, prepare a statement setting out— (a) those proposals as so formulated or so revised; (b) the estimates made by them under subsection (3)(b) above on the basis of which those proposals were so formulated or so revised; and (c) such other particulars relating to those proposals and estimates as the Secretary of State may direct; and a direction under paragraph (c) above may specify the manner in which the particulars are to be set out in the statement. (9) The authority shall, until the end of the year next following the relevant year, keep copies of the statement which is for the time being the latest statement prepared by them under subsection (8) above available for inspection by the public without charge at all reasonable hours at one or more of their offices; and any person shall be entitled to take copies of, or extracts from,that statement when so made available.

Propose a change

← Find another law