The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2026

Made: 2 March 2026

Coming into force: 27 March 2026

The Welsh Ministers make the following Regulations in exercise of the powers conferred on them by sections 21(1) and 123(1) and (2) of the Local Government Act 2003[^f00001].

Title and coming into force

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The title of these Regulations is the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2026 and they come into force on 27 March 2026.

Amendments to the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003

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• (1) The Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003[^f00002] are amended as follows.

• (2) In regulation 24K (fair value gains and losses of pooled investment funds), for paragraph (5) substitute—

(5) This regulation applies in relation to accounts prepared for financial years falling within the period— (a) beginning with 1 April 2019 and ending with 31 March 2025; (b) beginning with 1 April 2025 and ending with 31 March 2029, in respect of an investment mentioned in paragraph (2)(a) that was made before 1 April 2025.

• (3) In regulation 24L(6) (infrastructure assets)—

• (a) for “periods” substitute “period”;

• (b) for “2025” substitute “2029”.

Signed

Jayne Bryant — Cabinet Secretary for Housing and Local Government, one of the Welsh Ministers — 2 March 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 (“the 2003 Regulations”).

Regulation 24K of the 2003 Regulations provides that, in relation to financial years falling within the period beginning with 1 April 2019 and ending with 31 March 2025, a local authority must not charge an amount to its revenue account to reflect any fluctuation in the fair value of a local authority’s investment in a pooled investment fund. Instead, such amounts must be recorded in a separate account established and used solely for that purpose. Regulation 2(2) of these Regulations extends the application of regulation 24K in respect of investments made by a local authority before 1 April 2025 by an additional four financial years to 31 March 2029.

Regulation 24L of the 2003 Regulations makes provision about the accounting practices to be followed by a local authority where a component of an infrastructure asset has been replaced. Regulation 24L applies to local authorities that are required to prepare a statement of accounts in accordance with regulation 8 of the Accounts and Audit (Wales) Regulations 2014 (S.I. 2014/3362 (W. 337)). The local authority must either assume the carrying amount of the derecognised part is nil or calculate the carrying amount in line with the accounting practices identified under regulation 25 of the 2003 Regulations. Regulation 2(3) of these Regulations extends the application of regulation 24L by an additional four financial years to 31 March 2029.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from Local Government Finance Policy and Sustainability Division, Welsh Government, Cathays Park, Cardiff CF10 3NQ and is published on www.gov.wales.

Footnotes

[^f00001]: 2003 c. 26. The powers in section 21(1) of that Act are vested in the Welsh Ministers in so far as they apply to Wales by virtue of section 24 of that Act. Section 24 was amended by section 238(3) of the Local Government and Public Involvement in Health Act 2007 (c. 28) and paragraph 52 of Schedule 12 to the Local Audit and Accountability Act 2014 (c. 2).

[^f00002]: S.I. 2003/3239 (W. 319); relevant amending instruments are S.I. 2020/110 (W. 19), 2022/1254 (W. 255) and 2023/439 (W. 67).