Overview

This bill aims to increase control over local authority borrowing and investment in England. It restricts borrowing for non-essential activities, limits land acquisition outside their areas, and requires supermajorities for high-risk investments.

Description

The bill introduces three key limitations on local authorities in England:

• Borrowing Restrictions: Local authorities are prohibited from borrowing 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 boundary requires approval from both the relevant principal local authority and the Secretary of State.
• Investment Restrictions: Investments in commercial risk-taking enterprises need a two-thirds majority vote at a full council meeting.

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

Government Spending

The bill is not expected to directly increase or decrease government spending. Instead, it aims to control local authority borrowing and investment, potentially indirectly affecting government finances by reducing the risk of financial losses by local authorities.

Groups Affected

• Local Authorities in England: These will face stricter rules on borrowing, land acquisition, and high-risk investments. This could limit their ability to undertake certain projects and initiatives.
• Developers and Landowners: The restrictions on land acquisition may affect their ability to sell land to local authorities outside their jurisdictions.
• Commercial Enterprises: Access to investment from local authorities may be reduced, particularly for high-risk ventures.
• Residents: The changes may affect the range of services and projects local authorities can provide in their areas.

Powered by nyModel