Committee for the Environment 2007 - 2011 Mandate Legislation

Local Government (Finance) Bill

The purpose of this Bill is:

  • to remove the requirements for district councils to gain departmental approval for the application of their funds, proceeds from sale of capital assets and borrowings
  • to introduce certain new powers, including the power to invest
  • to introduce a “prudential regime” for capital finance, along similar lines to that which operates in England and Wales
  • to clarify the nature of the General Grant by replacing the two elements of the grant (the resources element and the de-rating element) with two separate grants – a rates support grant and a de-rating grant (the de-rating element of the General Grant compensates district councils for the loss of rate income due to the statutory de-rating of industrial properties)
  • to introduce a power to allow all departments (not just the DOE) to pay grants to councils
  • to enable the DOE to establish an independent remuneration panel to advise on the level of allowances for councillors and make it a requirement that councils publish information about the remuneration of councillors

Legislation - Local Government (Finance) Bill

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