The Local Authorities (Capital Finance) (Amendment) (England) Regulations 2003
Section 59 of the Local Government and Housing Act 1989 requires a local authority to set aside part of a capital receipt (“the reserved part”) as provision to meet credit liabilities. The Local Authorities (Capital Finance) Regulations 1997 (“the 1997 Regulations”) provide for different descriptions of capital receipts to be treated as reduced for the purposes of determining the reserved part. Regulation 2 amends the 1997 Regulations by inserting provision for a further reduction which a local authority in England may make in capital receipts derived from a disposal of housing land. The reduction is determined by reference to the total value of the contribution which the authority makes towards the costs of the provision of affordable housing.