The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

$$A−BC$where—“A” is—in the case of a premium, the amount in respect of the premium included in the local authority’s balance sheet immediately before 1st April 2007 less the amount in respect of the premium included in the authority’s balance sheet at 1st April 2007;in the case of a discount, the amount in respect of the discount included in the local authority’s balance sheet immediately before 1st April 2007 less the amount in respect of the discount included in the authority’s balance sheet at 1st April 2007;“B” is the total of—in the case of a premium—any amounts charged to a revenue account before the current year, by virtue of this regulation, in respect of the premium; andany capital receipts used on or after 1st April 2007 to pay any part of the premium;in the case of a discount, any amounts credited to a revenue account before the current year, by virtue of this regulation, in respect of the discount; and“C” is the number of financial years from the current year to the final year inclusive.$

• (7) In this regulation, any reference to an amount included in an authority’s balance sheet shall, if no such amount was included, be construed as a reference to nil.

• (8) In this regulation—

• “current year” means the financial year for which the local authority is calculating the amount to charge or credit to its revenue account in accordance with this regulation;

• “final year” means—in the case of a premium—the financial year in which the whole or the remaining part of the loan would have been due to be fully repaid in accordance with the terms of the loan if the loan had not been repaid before that financial year; orif later, the financial year in which the whole or the remaining part of any replacement loan (or, if more than one, the replacement loan which is due to be fully repaid last) is due to be fully repaid in accordance with the terms of the replacement loan;in the case of a discount—the financial year in which the whole or the remaining part of the loan would have been due to be fully repaid in accordance with the terms of the loan if the loan had not been repaid before that financial year; orif earlier, the financial year which ends on 31st March 2016;

• “relevant year” means the financial year which begins on 1st April 2007 and each subsequent financial year until, and including, the final year; and

• “replacement loan” means any loan of money to the local authority some or all of which the authority treats, for accounting purposes, as a replacement for some or all of the loan referred to in sub-paragraph (a) of paragraph (1).

Early repayment of loans – premiums and discounts at 31st March 2007

30C

• (1) This regulation applies where—

• (a) a local authority repays a loan of money on or after 1st April 2007 but before the date on which the authority is required, in accordance with the terms of the loan, to fully repay the whole or the remaining part of it;

• (b) as a consequence of such early repayment—

• (i) the authority is required to pay a premium to the lender of the loan or is required, in accordance with proper practices, to account for an amount in respect of a premium as if it were required to pay such a premium; or

• (ii) the lender of the loan gives the authority a discount on the loan or the authority is required, in accordance with proper practices, to account for an amount in respect of a discount as if the lender had given the authority such a discount; and

• (c) the authority is not required, in accordance with proper practices, to include an amount in respect of the premium or the discount, as the case may be, in its balance sheet on or after 1st April 2007.

• (2) Subject to paragraphs (3) and (4), where this regulation applies, in the initial year and in each subsequent financial year until, and including, the final year, the amount that the authority shall charge to a revenue account for that year in respect of the premium or credit to a revenue account for that year in respect of the discount, as the case may be—

• (a) in the case of a premium, shall be an amount which is the same as or greater than the amount calculated in accordance with the formula specified in paragraph (5);

• (b) in the case of a discount, shall be an amount which is the same as or less than the amount calculated in accordance with that formula.

• (3) In the case of a premium, where, in relation to a financial year referred to in paragraph (2), the result of the calculation of the formula specified in paragraph (5) is nil, the authority shall not charge any amount to a revenue account for that year in respect of the premium.

• (4) By the end of the final year, the total amount charged by the authority to a revenue account in respect of the premium or credited by the authority to a revenue account in respect of the discount shall equal the amount of the premium or the discount, as the case may be.

• (5) The formula specified for the purposes of paragraphs (2) and (3) is—

$$D−EF$where—“D” is the amount of the premium or the amount of the discount, as the case may be;“E” is the total of—in the case of a premium—any amounts charged to a revenue account before the current year, by virtue of this regulation, in respect of the premium; andany capital receipts used to pay any part of the premium;in the case of a discount, any amounts credited to a revenue account before the current year, by virtue of this regulation, in respect of the discount; and“F” is the number of financial years from the current year to the final year inclusive.$

• (5A) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation has effect as if the references in paragraph (1)(a) and (c) to 1st April 2007 were references to 1st April 2015.

• (6) In this regulation—

• “current year” means the financial year for which the local authority is calculating the amount to charge or credit to its revenue account in accordance with this regulation;

• “final year” means—in the case of a premium—the financial year in which the whole or the remaining part of the loan would have been due to be fully repaid in accordance with the terms of the loan if the loan had not been repaid before that financial year; orif later, the financial year in which the whole or the remaining part of any replacement loan (or, if more than one, the replacement loan which is due to be fully repaid last) is due to be fully repaid in accordance with the terms of the replacement loan;in the case of a discount—the financial year in which the whole or the remaining part of the loan would have been due to be fully repaid in accordance with the terms of the loan if the loan had not been repaid before that financial year; orif earlier, the ninth financial year after the initial year (counting the financial years, immediately following the initial year, consecutively);

• “initial year” means the financial year in which the loan is repaid; and

• “replacement loan” means any loan of money to the local authority some or all of which the authority treats, for accounting purposes, as a replacement for some or all of the loan referred to in sub-paragraph (a) of paragraph (1).

Interest on loans given by local authorities

30D

• (1) Where—

• (a) on or after 1st April 2007, a local authority gives a loan to a person;

• (b) the authority, in accordance with proper practices, includes an amount in respect of that loan in its balance sheet at the end of the financial year in which the loan is given (“the loan year”); and

• (c) the amount referred to in sub-paragraph (b) is less than the amount of the loan outstanding at the end of the loan year,

paragraph (3) shall apply.

• (2) Where—

• (a) a local authority gave a loan to a person before 1st April 2007 and the whole or any remaining part of the loan is outstanding on or after 1st April 2007;

• (b) the authority, in accordance with proper practices, includes an amount in respect of that loan in its balance sheet at the end of the financial year which began on 1st April 2007 (“the 2007 financial year”); and

• (c) the amount referred to in sub-paragraph (b) is less than the amount of the loan outstanding at the end of the 2007 financial year,

paragraph (3) shall apply.

• (3) Where this paragraph applies, the amount of the interest, if any, in respect of the loan, which the local authority credits to its revenue account—

• (a)

• (i) where the loan was given on or after 1st April 2007, in the loan year; or

• (ii) where the loan was given before 1st April 2007, in the 2007 financial year; and

• (b) in each subsequent year until, and including, the financial year in which the whole or any remaining part of the loan is fully repaid,

shall be the amount of the interest, if any, which it is due to receive in that year in accordance with the loan agreement for that loan.

• (4) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation has effect as if—

• (a) the references in paragraphs (1)(a), (2)(a) and (b) and (3)(a) to “1st April 2007” were references to “1st April 2015”; and

• (b) the references in paragraphs (2)(c) and (3)(a) to “2007 financial year” were references to “2015 financial year”.

Proper practices

Loan capital

7A

• (1) Subject to paragraph (2), for the purposes of Chapter 1 of Part 1, a sum received by a local authority in respect of—

• (a) the redemption on maturity of a bond, or

• (b) the disposal of a bond,

must be treated as a capital receipt.

• (2) Paragraph (1) applies only if—

• (a) the acquisition of the bond was prior to 1st April 2012, and

• (b) expenditure on the acquisition was treated as capital expenditure.

Disposal of mortgage portfolio

Payment made to redeem landlord’s share

Social HomeBuy receipts

Determination of minimum revenue provision

Past deficiencies in minimum revenue provision

Interest on stepped interest rate loans taken out by local authorities

30E

• (1) This regulation applies where on any day before 9th November 2007 a local authority had taken out a stepped interest rate loan.

• (2) The local authority shall charge to a revenue account for each financial year beginning with the financial year ending on 31st March 2008 and ending with the last financial year in which the loan agreement subsists—

• (a) the amount of the interest, if any, which it is due to pay in that financial year in accordance with the loan agreement; or

• (b) an amount calculated in accordance with the accounting practices identified in regulation 31.

• (3) In this regulation, “stepped interest rate loan” means a loan taken out by a local authority at an interest rate which increases in one or more increments during the period for which the loan agreement subsists.

• (4) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation has effect as if the reference in paragraph (2) to 31st March 2008 were a reference to 31st March 2016.

Financial guarantees given by local authorities

30F

• (1) This regulation applies where on any day before 9th November 2007 a local authority had given a financial guarantee on behalf of another person.

• (2) The amount the local authority charges to a revenue account with respect to the guarantee for each financial year beginning with the financial year ending on 31st March 2008 and ending with the last financial year in which the risk guaranteed subsists shall be calculated either—

• (a) in accordance with proper practices for the financial year beginning on 1st April 2006; or

• (b) in accordance with the accounting practices identified in regulation 31.

• (3) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation has effect as if the reference in paragraph (2) to 31st March 2008 were a reference to 31st March 2016 and as if the reference in sub-paragraph (2)(a) to 1st April 2006 were a reference to 1st April 2015.

Proper practices

Impairment of certain investments

30G

• (1) Where, in relation to a relevant investment, in accordance with proper practices—

• (a) an impairment loss is recognised in a revenue account of the authority for the financial year beginning on 1st April 2008;

• (b) an impairment loss is recognised in a revenue account of the authority for the financial year beginning on 1st April 2009; or

• (c) the value of an impairment loss recognised in a revenue account of the authority for the financial year beginning on 1st April 2008 is increased in a revenue account of the authority for the financial year beginning on 1st April 2009,

the local authority may credit to a revenue account for the year in which the loss is recognised, or increased in value, any amount up to the amount of the loss.

• (2) A local authority which under paragraph (1) credits an amount to a revenue account for the financial year beginning on 1st April 2008 may debit an amount of up to the value of that credit to a revenue account for the financial year beginning on 1st April 2009.

• (3) Subject to paragraph (6), where—

• (a) under paragraph (1) a local authority credits an amount to a revenue account for the financial year beginning on 1st April 2008; and

• (b) in accordance with proper practices—

• (i) the value of the impairment loss that credit relates to is reduced in the financial year beginning on 1st April 2009, and

• (ii) the authority credits an amount to a revenue account for that year to recognise that reduction,

the local authority must debit to a revenue account for the financial year beginning on 1st April 2009 an amount equal to the credit mentioned in sub-paragraph (b)(ii).

• (4) Subject to paragraph (6), where—

• (a) under paragraph (1) a local authority credits an amount to a revenue account for the year beginning on 1st April 2008; and

• (b) in accordance with proper practices, the authority credits or has credited any amount to a revenue account before 1st April 2009 in respect of interest on the relevant investment not received on or before the date of the event giving rise to the impairment loss,

the local authority must debit to a revenue account for the financial year beginning on 1st April 2008 an amount equal to the total of the amounts mentioned in sub-paragraph (b).

• (5) Subject to paragraph (6), where—

• (a) under paragraph (1) a local authority credits an amount to a revenue account for the year beginning on 1st April 2008 or 1st April 2009; and

• (b) in accordance with proper practices, the authority credits or has credited any amount to a revenue account before 1st April 2010 in respect of interest on the relevant investment not received on or before the date of the event giving rise to the impairment loss,

to the extent it has not debited an amount under paragraph (4) in respect of the interest, the local authority must debit to a revenue account for the financial year beginning on 1st April 2009 an amount equal to the total of the amounts mentioned in sub-paragraph (b).

• (6) A local authority need not under paragraphs (3) to (5) debit to a revenue account a total amount that exceeds the total amount it has credited under paragraph (1).

• (7) In paragraph (6), the reference to the total amount credited under paragraph (1) is a reference to that amount as reduced by a debit under paragraph (2).

• (8) Where under paragraph (1) a local authority credits an amount to a revenue account, it must debit to a revenue account for the financial year beginning on 1st April 2010 an amount equal to the value of that credit to the extent the credit has not been reversed by debits under paragraphs (2) to (5).

• (9) In this regulation, a relevant investment is a local authority investment—

• (a) in a bank;

• (b) affected by an event in the period commencing on 1st April 2008 and ending on 26th November 2008,

other than an investment of the type described in section 17(1)(e).

Proper practices

Short-term accumulating compensated absences

30H

• (1) Where, in accordance with proper practices, a local authority includes an amount in respect of a liability for short-term accumulating compensated absences in its balance sheet, the authority must not charge to a revenue account an amount in respect of that liability until the date on which the liability ceases or is discharged.

• (2) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation only applies to an amount in respect of a liability for short-term accumulating compensated absences recorded on a balance sheet for a financial year beginning on or after 1st April 2015.

Lease classification

30I

• (1) Where, on or after 1st April 2009, a local authority receives money under an arrangement—

• (a) which is in existence on, and is not treated according to proper practices as a finance lease at, 31st March 2010, and

• (b) all or part of that arrangement will be treated according to proper practices as a finance lease on or after 1st April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31st March 2010.

• (2) Where, on or after 1st April 2009, a local authority receives money under an arrangement—

• (a) which is in existence on, and is not treated according to proper practices as an operating lease at, 31st March 2010, and

• (b) all or part of that arrangement will be treated according to proper practices as an operating lease on or after 1st April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31st March 2010.

Proper practices

TRANSACTIONS WHICH ARE CREDIT ARRANGEMENTS

Securitisation transactions

2A

A securitisation transaction must be treated as a transaction falling within section 7(2)(a).

Bonds

Securitisation transaction receipts

9B

For the purposes of Chapter 1 of Part 1, any sum received as consideration by a local authority as the result of a securitisation transaction which, apart from this regulation, would not be a capital receipt, must be treated as a capital receipt.

Pooling of receipts from housing land

Specified amount

Capital receipt treated as reduced

Available capital allowance

Total capital allowance

Provision of affordable housing

Regeneration projects

Transitional provision for calculating the buy back allowance

13

K means—

$A−E−F−G−J$

except where $A−E−F−[(L+1)×G]$ is less than zero, K means—

$[A−E−F]×[L÷(L+1)]$

.

Special accounting provision in respect of non-domestic rating liabilities

30J

• (1) In this regulation—

• “authority” means—a relevant billing authority; ora relevant precepting authority;

• “non-domestic rating income” has the same meaning as in the Non-Domestic Rating (Rates Retention) Regulations 2013;

• “relevant billing authority” means a billing authority in England within the meaning of section 1(2)(a) of the Local Government Finance Act 1992 other than a billing authority in relation to which paragraph 1A (special provision for calculation of surplus or deficit in respect of specified years) of Schedule 4 to the Non-Domestic Rating (Rates Retention) Regulations 2013 has effect;

• “relevant precepting authority” means a major precepting authority within the meaning of section 39 of the Local Government Finance Act 1992 other than a police and crime commissioner; and

• “relevant provision” means provision made by an authority to recognise amounts to be repaid to ratepayers as a consequence of an alteration to a list in accordance with regulations made under section 55 of the Local Government Finance Act 1988 in respect of a day in a financial year prior to the year beginning on 1st April 2013.

• (2) Where, in accordance with proper practices, a relevant billing authority is required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013, it may credit to a revenue account an amount equal to 80% of the amount of the relevant provision.

• (3) Where, in accordance with proper practices, a relevant precepting authority is required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013, it may credit to a revenue account an amount equal to 80% of the amount found in accordance with paragraph (4).

• (4) The amount found in accordance with this paragraph is—

• (a) the sum of the relevant provision that the relevant precepting authority is required to recognise in a revenue account for the financial year beginning on 1st April 2013; less

• (b) the sum of any amount it is required to recognise in a revenue account as part of that provision as a consequence of the share of non-domestic rating income it received from a billing authority in relation to which paragraph 1A of Schedule 4 to the Non-Domestic Rating (Rates Retention) Regulations 2013 has effect.

• (5) An authority which credits an amount to a revenue account under paragraph (2) or (3) must debit an amount equal to 25% of that amount to a revenue account in relation to each of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017.

Proper practices

Authority	Financial year 2021-22 (£)
Adur	121,501.92
Arun	154,866.00
Ashfield	223,586.81
Ashford	226,722.39
Babergh	183,694.98
Barking and Dagenham	437,460.99
Barnet	406,060.42
Barnsley	920,875.76
. . .	. . .
Basildon	445,232.82
Bassetlaw	295,007.26
Birmingham	3,177,505.20
Blackpool	218,231.83
Bolsover	321,921.94
Bournemouth Christchurch and Poole	280,828.78
Brent	326,902.80
Brentwood	133,393.70
Brighton & Hove	295,270.41
Bristol	465,342.02
Broxtowe	231,776.69
Bury	816,843.05
Cambridge	443,177.32
Camden	787,065.94
Cannock Chase	261,853.19
Canterbury	213,673.00
Castle Point	73,949.58
Central Bedfordshire	312,731.01
Charnwood	244,915.27
Cheltenham	95,303.52
Cheshire West and Chester	640,495.66
Chesterfield	433,463.76
City of London	37,679.87
City of York	446,134.60
Colchester	276,328.10
Cornwall	228,279.83
Crawley	500,994.25
Croydon	493,371.27
Dacorum	697,462.93
Darlington	264,974.47
Dartford	164,937.47
Derby	661,899.62
Doncaster	837,251.17
Dover	172,164.15
Dudley	1,293,022.83
Ealing	339,902.21
East Devon	156,993.07
East Riding	700,597.96
East Suffolk	171,928.90
Eastbourne	83,791.70
Enfield	319,155.58
Epping Forest	365,205.77
Exeter	102,772.22
Fareham	108,512.40
Folkestone and Hythe	116,558.79
Gateshead	1,358,442.25
Gosport	109,552.45
Gravesham	222,830.17
Great Yarmouth	177,431.34
Greenwich	489,596.44
Guildford	371,600.55
Hackney	238,601.47
Hammersmith and Fulham	389,597.53
Haringey	492,679.19
Harlow	421,248.80
. . .	. . .
Harrow	209,583.78
Havering	318,422.68
High Peak	190,099.89
Hillingdon	446,945.81
Hinckley and Bosworth	200,221.60
Hounslow	397,517.95
Ipswich	285,544.27
Islington	740,259.63
Kensington and Chelsea	333,813.49
Kingston upon Hull	988,413.41
Kingston upon Thames	224,335.94
Kirklees	763,213.87
Lambeth	622,385.34
Lancaster	361,077.12
Leeds	2,232,621.80
Leicester	603,374.30
Lewes	138,336.33
Lewisham	202,345.86
Lincoln	184,690.60
Luton	258,421.48
Manchester	962,910.28
Mansfield	265,824.60
Medway Towns	87,036.36
Melton	93,497.31
Mid Devon	96,747.13
Mid Suffolk	156,340.12
Milton Keynes	491,774.91
New Forest	294,767.63
Newark and Sherwood	307,475.13
Newcastle upon Tyne	1,454,616.23
Newham	377,991.90
North East Derbyshire	496,343.87
North Kesteven	216,480.80
North Northamptonshire	422,261.02
North Tyneside	1,071,143.29
North Warwickshire	188,579.70
North West Leicestershire	251,520.81
Northumberland	416,855.05
Norwich	470,484.81
Nottingham	924,230.54
Nuneaton	268,249.85
Oadby & Wigston	60,711.45
Oldham	-3,107.63
Oxford City	442,269.24
Portsmouth	343,180.46
Reading	400,823.58
Redbridge	150,455.65
Redditch	296,808.31
. . .	. . .
Rotherham	1,020,513.09
Rugby	249,810.92
Runnymede	196,165.06
Salford	56,817.91
Sandwell	1,504,657.58
. . .	. . .
. . .	. . .
Sheffield	1,207,881.23
Shropshire	274,963.07
Slough	340,266.55
Solihull	547,623.09
. . .	. . .
South Cambridgeshire	407,718.64
South Derbyshire	186,144.15
South Holland	208,059.98
South Kesteven	376,252.60
South Tyneside	1,125,930.45
Southampton	375,193.06
Southend-on-Sea	200,002.51
Southwark	891,989.48
St Albans	375,638.28
Stevenage	428,687.55
Stockport	883,258.96
Stoke-on-Trent	550,670.65
Stroud	175,802.47
Sutton	268,536.85
Swindon	306,768.45
Tamworth	236,922.62
Tandridge	137,672.93
Tendring	118,827.28
Thanet	52,208.15
Thurrock	368,682.80
Tower Hamlets	278,674.37
Uttlesford	178,281.22
Waltham Forest	288,537.06
Wandsworth	812,153.97
Warwick	449,176.82
Waverley	368,222.67
Wealden	122,106.72
Welwyn Hatfield	601,654.37
West Lancashire	561,957.76
West Northamptonshire	580,800.18
Westminster	493,992.90
Wigan	2,131,858.94
Wiltshire	220,606.38
Winchester	315,490.53
Woking	193,706.96
Wokingham	199,206.04
Wolverhampton	1,065,452.06
Authority	Financial year 2023-24 (£)
---	---
North Yorkshire	553,283.65
Somerset	326,762.96
Westmorland and Furness	220,885.97

Back payments following unequal pay – further temporary accounting treatment

30AA

• (1) For the purposes of this regulation—

• (a) a reference to an employee of a local authority (“E”) includes a reference to a former employee, an officer or a former officer of that authority;

• (b) a reference to the contract under which E was or is employed includes a reference to the terms of appointment under which an officer held or holds office; and

• (c) E received unequal pay when the amount of pay E received from the authority for work done by E during a particular period is less than the appropriate amount of pay for that work done during that period.

• (2) In this regulation—

• “appropriate amount of pay”, in relation to E, means the amount of pay to which E is entitled in accordance with any sex equality clause deemed to be included, by virtue of section 66(1) of the Equality Act 2010, in the contract under which E was or is employed;

• “back payment” means a payment of arrears of remuneration made by a local authority, for work—done by E;in respect of which E received unequal pay; anddone before E first receives any increase in pay as a result of receiving that unequal pay,which is paid to E, or part of which is paid to E (“the net payment”) and part of which is paid to another person on behalf of E (“relevant deductions”), because E received unequal pay for that work; and

• “social security costs” means any contributions by a local authority to any state social security or pension scheme, fund or arrangement.

• (3) Where a local authority—

• (a) is required by an employment tribunal or a court to make a back payment;

• (b)

• (i) considers that it is probable that an employment tribunal or a court will require it to make a back payment; and

• (ii) is able to make a reasonable estimate of the amount of such back payment;

• (c) has reached an agreement or otherwise determined to make a back payment; or

• (d)

• (i) considers that it is probable that it will reach an agreement or otherwise determine to make a back payment; and

• (ii) is able to make a reasonable estimate of the amount of such back payment,

Early repayment of loans – premiums and discounts after 31st March 2007

Interest on loans given by local authorities

Interest on stepped interest rate loans taken out by local authorities

Financial guarantees given by local authorities

Impairment of certain investments

Short-term accumulating compensated absences

Lease classification

Special accounting provision in respect of non-domestic rating liabilities

Fair value gains and losses of pooled investment funds

30K

• (1) In this regulation—

• “administering authority” means an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 2013;

• “fair value” means the fair value of an investment as determined in accordance with proper practices;

• “fair value gain or loss” means a change in the fair value of an investment;

• “pooled investment fund” means—...a collective investment scheme as defined in section 235(1) of the Financial Services and Markets Act 2000; ...an investment scheme approved by the Treasury under section 11(1) of the Trustee Investments Act 1961 (local authority investment schemes); or a relevant UCITS.

• (2) Where a local authority—

• (a) invests in a pooled investment fund (other than in its capacity as an administering authority in relation to a pension fund), and

• (b) a fair value gain or loss experienced on the authority’s investment in that pooled investment fund would otherwise be charged to a revenue account by that local authority in accordance with proper practices,

Proper practices

Deficit relating to schools budget

30L

• (1) This regulation applies in relation to accounts prepared for the financial years falling within the period beginning with 1st April 2020 and ending with 31st March 2026.

• (2) In this regulation—

• “Dedicated Schools Grant” means the grant of that name paid to a local authority by the Secretary of State under section 14 of the Education Act 2002;

• “schools budget” has the meaning given in section 45A(2) of the School Standards and Framework Act 1998;

• “sixth form grant” means a grant of that name paid to a local authority by the Secretary of State under section 14 of the Education Act 2002 in respect of sixth form pupils.

• (3) Where a local authority has a deficit in respect of its schools budget for a financial year falling within the period beginning with 1st April 2020 and ending with 31st March 2026, the authority—

• (a) must not charge to a revenue account an amount in respect of that deficit; and

• (b) must charge the amount of the deficit, calculated in accordance with paragraph (4) or (5), to an account established, charged and used solely for the purpose of recognising deficits in respect of its schools budget.

• (4) A local authority has a deficit in respect of its schools budget for the financial year beginning on 1st April 2020 if—

where—

• A is the amount of the authority’s expenditure incurred on the schools budget for the financial year beginning on 1st April 2020, recognised in accordance with proper practices;

• B is the amount of the authority’s accumulated outstanding deficit, if any, in respect of the schools budget, recognised in the authority’s accounts relating to the financial year beginning on 1st April 2019, in accordance with proper practices;

• C is the amount, if any, that the authority transfers from its general fund in respect of its schools budget expenditure in the financial year beginning on 1st April 2020;

• D is the amount of the authority’s Dedicated Schools Grant in the financial year beginning on 1st April 2020, recognised in accordance with proper practices;

• E is the amount of the authority’s accumulated surplus, if any, in respect of the schools budget, recognised in the authority’s accounts relating to the financial year beginning on 1st April 2019, in accordance with proper practices;

• F is the amount of the authority’s sixth form grant in the financial year beginning on 1st April 2020, recognised in accordance with proper practices.

• (5) An authority has a deficit in respect of its school budget for a financial year falling within the period beginning with 1st April 2021 and ending with 31st March 2026 if—

where—

• G is the amount of the authority’s expenditure incurred on the schools budget for the financial year to which the accounts relate, recognised in accordance with proper practices;

• H is the amount, if any, that the authority transfers from its general fund in respect of its schools budget expenditure in the financial year to which the accounts relate;

• I is the amount of the authority’s Dedicated Schools Grant in the financial year to which the accounts relate, recognised in accordance with proper practices;

• J is the amount of the authority’s accumulated surplus, if any, in respect of the schools budget, carried forward from the preceding financial year, recognised in accordance with proper practices;

• K is the amount of the authority’s sixth form grant in the financial year to which the accounts relate, recognised in accordance with proper practices.

Proper practices

4A

Subject to paragraph 4C, the assumed debt is—

• (a) in the financial year beginning on 1st April 2021, the amount of debt assumed to be associated with a local authority in that year as set out in Table A in this Schedule; and

• (b) in each subsequent financial year—

$N*×1.01$

4B

Subject to paragraph 4D, the local authority share cap is—

• (a) in the financial year beginning on 1st April 2021, the amount attributable to an authority set out in Table B in this Schedule; and

• (b) in each subsequent financial year—

$O*×1.01$

.

Accounting for infrastructure assets

30M

• (1) This regulation applies in relation to a statement of accounts prepared by a local authority in accordance with section 3(3) of the Local Audit and Accountability Act 2014—

• (a) which relates to a financial year beginning on or before 1st April 2028; and

• (b) in respect of which a certificate has not been entered under section 20(2)(a) of that Act.

• (2) When preparing a statement of accounts to which this regulation applies, a local authority is not required to make any prior period adjustment to the balances of that statement of accounts in respect of infrastructure assets.

• (3) Where a local authority replaces a component of an infrastructure asset, for the purposes of determining the carrying amount to be derecognised in respect of that component (“the relevant amount”) the local authority shall either—

• (a) determine the relevant amount as nil; or

• (b) calculate the relevant amount in accordance with the accounting practices identified in regulation 31.

• (4) If a local authority determines the relevant amount in accordance with paragraph (3)(a), it must include a note to that effect in its statement of accounts for the year in relation to which that determination is made.

• (5) In this regulation—

• “carrying amount” means the amount at which an asset is recognised after deducting any accumulated depreciation and impairment losses;

• “derecognised” means that all or part of an asset or liability is removed from an authority’s balance sheet;

• “infrastructure asset” means an asset owned by a local authority, which there is no prospect of the authority selling or using for any purpose other than that for which it was created, and which forms part of the infrastructure of the authority’s area;

• “prior period adjustment” means a correction of a material accounting error within a local authority’s statement of accounts for a previous financial year.

Proper practices

4C

• (1) This paragraph applies to North Yorkshire Council, Somerset Council and Westmorland and Furness Council.

• (2) The assumed debt is—

• (a) in the financial year beginning on 1st April 2023, the amount of debt assumed to be associated with a local authority in that year as set out in Table AA in this Schedule; and

• (b) in each subsequent financial year —N* × 1.01.

• (3) The local authority share cap is—

• (a) in the financial year beginning on 1st April 2023, the amount attributable to an authority set out in Table BB in this Schedule; and

• (b) in each subsequent financial year—O* × 1.01.

Authority	Financial year 2021-22 (£)
Adur	128,167.99
Arun	132,079.04
Ashfield	236,715.31
Ashford	206,977.25
Babergh	139,126.13
Barking and Dagenham	553,630.35
Barnet	745,590.60
Barnsley	709,950.38
. . .	. . .
Basildon	439,046.76
Bassetlaw	236,713.97
Birmingham	2,648,001.97
Blackpool	357,932.42
Bolsover	193,051.82
Bournemouth Christchurch and Poole	389,450.36
Brent	556,793.45
Brentwood	160,784.57
Brighton & Hove	525,932.88
Bristol	900,023.15
Broxtowe	177,698.91
Bury	601,079.44
Cambridge	483,252.66
Camden	2,019,791.79
Cannock Chase	222,897.46
Canterbury	229,893.28
Castle Point	64,288.70
Central Bedfordshire	218,359.10
Charnwood	280,621.01
Cheltenham	168,330.18
Cheshire West and Chester	502,868.20
Chesterfield	394,178.19
City of London	149,589.89
City of York	502,564.36
Colchester	215,950.48
Cornwall	464,689.29
Crawley	439,568.51
Croydon	857,823.71
Dacorum	664,427.59
Darlington	267,618.46
Dartford	172,657.05
Derby	528,146.66
Doncaster	853,986.53
Dover	125,259.63
Dudley	978,990.73
Ealing	647,909.92
East Devon	184,141.73
East Riding	558,986.84
East Suffolk	135,518.30
Eastbourne	119,862.20
Enfield	581,668.68
Epping Forest	357,685.51
Exeter	180,883.14
Fareham	83,354.09
Folkestone and Hythe	93,482.51
Gateshead	1,177,667.44
Gosport	118,434.75
Gravesham	222,692.39
Great Yarmouth	155,673.04
Greenwich	988,867.61
Guildford	294,818.67
Hackney	1,386,199.19
Hammersmith and Fulham	898,753.34
Haringey	736,148.55
Harlow	423,113.61
. . .	. . .
Harrow	330,166.53
Havering	463,375.67
High Peak	166,253.15
Hillingdon	498,778.37
Hinckley and Bosworth	177,066.65
Hounslow	839,043.23
Ipswich	240,161.65
Islington	1,611,323.41
Kensington and Chelsea	494,889.65
Kingston upon Hull	664,969.75
Kingston upon Thames	293,883.31
Kirklees	858,005.92
Lambeth	1,422,189.56
Lancaster	304,854.29
Leeds	2,450,179.39
Leicester	725,562.12
Lewes	172,309.32
Lewisham	820,611.82
Lincoln	225,591.59
Luton	277,413.42
Manchester	1,088,197.60
Mansfield	202,070.09
Medway Towns	112,486.65
Melton	64,462.05
Mid Devon	98,501.90
Mid Suffolk	134,278.55
Milton Keynes	355,448.22
New Forest	244,575.80
Newark and Sherwood	188,791.27
Newcastle upon Tyne	1,102,721.41
Newham	756,445.92
North East Derbyshire	274,422.35
North Kesteven	170,629.47
North Northamptonshire	325,764.92
North Tyneside	798,533.64
North Warwickshire	136,847.90
North West Leicestershire	252,939.42
Northumberland	594,384.95
Norwich	467,525.99
Nottingham	887,966.30
Nuneaton	249,063.00
Oadby & Wigston	65,141.12
Oldham	119,477.82
Oxford City	656,422.01
Portsmouth	395,246.44
Reading	385,564.44
Redbridge	247,590.32
Redditch	330,810.31
. . .	. . .
Rotherham	812,153.49
Rugby	209,978.15
Runnymede	185,563.65
Salford	87,250.52
Sandwell	1,149,500.98
. . .	. . .
. . .	. . .
Sheffield	1,423,534.79
Shropshire	248,747.82
Slough	351,607.38
Solihull	599,562.14
. . .	. . .
South Cambridgeshire	202,190.86
South Derbyshire	132,792.19
South Holland	183,226.03
South Kesteven	341,076.00
South Tyneside	863,711.96
Southampton	494,472.86
Southend-on-Sea	235,373.93
Southwark	1,816,559.92
St Albans	398,068.64
Stevenage	367,885.88
Stockport	917,765.35
Stoke-on-Trent	562,413.38
Stroud	196,450.29
Sutton	307,995.25
Swindon	309,416.61
Tamworth	178,165.09
Tandridge	159,330.12
Tendring	130,994.81
Thanet	83,576.03
Thurrock	439,693.01
Tower Hamlets	740,233.45
Uttlesford	181,362.89
Waltham Forest	558,187.18
Wandsworth	1,097,179.82
Warwick	409,529.79
Waverley	323,488.62
Wealden	142,467.71
Welwyn Hatfield	574,039.94
West Lancashire	345,820.52
West Northamptonshire	457,055.32
Westminster	1,241,590.14
Wigan	1,603,927.75
Wiltshire	286,863.65
Winchester	325,208.77
Woking	228,339.41
Wokingham	124,528.22
Wolverhampton	919,699.30
Authority	Financial year 2023-24 (£)
---	---
North Yorkshire	658,195.63
Somerset	285,289.81
Westmorland and Furness	184,982.56