Part 8: Development Corporations Finance Section 179: Removal of limits on borrowing of urban development corporations and new town development corporations Background
This section amends paragraph 8 of Schedule 31 to the Local Government, Planning and Land Act 1980 and section 60 of the New Towns Act 1981.
	Paragraph 8 of Schedule 31 to the Local Government, Planning and Land Act 1980 makes financial provisions for Urban Development Corporations, in England, Scotland and Wales by addressing how much money can be borrowed from HM Treasury, or any other person approved by HM Treasury and with the consent of the Secretary of State. It states that the total sum of money that all Urban Development Corporations can borrow should not exceed £30 million, or up to £100 million through an order made by the Secretary of State.
	Sections 58 to 60 of the New Towns Act 1981 makes financial provisions for New Town Development Corporations by addressing how much money can be borrowed from HM Treasury, or any other person approved by HM Treasury and with the consent of the Secretary of State. Section 60 states that the total sum of money that a New Town Development Corporation can borrow should not exceed £4,600 million, or a greater sum not exceeding £5,250 million as the Secretary of State may by order specify.
	The amendments to paragraph 8 of Schedule 31 to the Local Government, Planning and Land Act 1980 and section 60 of the New Towns Act 1981 removes the financial and borrowing limits for Urban Development Corporations and New Town Development Corporations, in England, for money borrowed after the commencement of this section.