Overview

This bill aims to increase control over local authority borrowing and investment in England. It restricts borrowing for non-essential activities, limits land acquisitions outside their area, and requires supermajorities for risky commercial investments.

Description

This bill introduces several key restrictions on local authorities in England:

• Borrowing Limitations: Local authorities cannot borrow from the Public Works Loan Board for commercial property or activities outside their statutory duties.
• Land Acquisition Restrictions: Acquiring land or property outside their own boundaries requires approval from both the relevant principal local authority and the Secretary of State.
• Investment Restrictions: Commercial risk-taking investments need a supermajority (over two-thirds) vote of the council at a full meeting to be approved.

The bill defines "principal local authority" as per section 69(3) of the Local Democracy, Economic Development and Construction Act 2009.

The bill will come into force two months after receiving Royal Assent and applies to England and Wales.

Government Spending

The bill is not expected to directly increase or decrease government spending. Instead, it aims to control local authority borrowing, potentially reducing the risk of future financial burdens on taxpayers.

Groups Affected

• Local Authorities in England: These will face significant restrictions on their borrowing and investment powers, potentially limiting their ability to undertake certain projects or investments.
• Developers and Landowners: The restrictions on land acquisition could impact their ability to sell land to local authorities.
• Businesses: The restrictions on local authority investment might reduce funding opportunities for some commercial ventures.
• Residents: The bill could indirectly impact local services and development depending on the authorities' response to the new restrictions.

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