Citation and commencement

1. These Regulations may be cited as the Local Government (Promotion of Economic Development) Regulations 1990 and shall come into force on 1st April 1990.

Interpretation

2.-(1) In these Regulations, except where the context otherwise requires-

"the Act" means the Local Government and Housing Act 1989;

"economic development powers" means the powers conferred by section 33(1) of the Act or any other enactment by virtue of which a relevant authority may promote the economic development of its area;

"financial assistance" means assistance of any of the descriptions specified in paragraphs (a) to (f) of section 33(3) of the Act;

"scheduled authority" means a district council in Wales and an authority specified in Schedule 1 to these Regulations.

(2) For the purposes of these Regulations, a relevant authority shall be regarded as providing financial assistance if, in the exercise of economic development powers, it agrees to provide or joins with any other person in agreeing to provide financial assistance.

Application

3.-(1) Subject to paragraph (2), these Regulations apply-

(a)where the economic development power in question is that conferred by section 33(1) of the Act, to its exercise on or after 1st April 1990;

(b)in any other case, where the power is exercised on or after 1st July 1990.

(2) Nothing in any other provision of these Regulations shall apply to preclude a relevant authority from providing financial assistance in fulfilment of an agreement entered into before 1st April 1990.

Provision of property, services and other financial benefits

4. The condition specified for the purposes of section 33(3)(f) of the Act is that the property, services or other financial benefit is provided for a consideration that is less than the best that can reasonably be obtained.

Excluded activities

5.-(1) Subject to paragraph (2), there are specified for the purposes of section 34(1) of the Act the steps listed in Schedule 2 to these Regulations.

(2) Nothing in paragraph (1) or Schedule 2 shall preclude an authority from-

(a)carrying out or participating in estate agency work-

(i)which consists solely of the publication of information about land; or

(ii)in connection with the acquisition or disposal of land that adjoins land which the authority proposes to acquire or dispose of;

(b)carrying out or participating in insurance broking in connection with policies relating to moveable property in any building or on any land of which the occupier is a tenant of the authority;

(c)publishing a newspaper where the sole or main purpose of such publication is the promotion of the economic development of the authority's area;

(d)doing anything which is-

(i)incidental to the provision by the authority of any training facility, the construction or maintenance of any building or the management of any land in which the authority has an interest; or

(ii)connected with the promotion of tourism or the provision of information to the public;

(e)doing anything on behalf of a Minister of the Crown or, in pursuance of the Local Authorities (Goods and Services) Act 1970(2), on behalf of any public body within the meaning of section 1 of that Act.

Excluded forms of financial assistance

6.-(1) Subject to paragraph (3), there are specified for the purposes of section 34(1) of the Act the steps mentioned in paragraph (2).

(2) The steps referred to in paragraph (1) are the provision of financial assistance of any of the descriptions specified in paragraphs (a) to (c) of section 33(3) of the Act to a person who conducts a business or undertaking with a view to profit where-

(a)the amount of the assistance is determinable solely by reference to the financial results of that business or undertaking over a period which at the date on which the authority considers the provision of the assistance is not wholly in the past; or

(b)it is intended that the assistance should be applied, either wholly or in part, in or towards the payment of the wages or salary of any employee of that person.

(3) Nothing in paragraph (1) or (2) shall preclude a relevant authority from providing financial assistance by way of grant which-

(a)is made for the purpose of enabling the recipient-

(i)to employ a person who, for the period of at least seven days immediately preceding the commencement of the employment, was unemployed;

(ii)to employ a person for the duration of any period in which he is undergoing training;

(iii)to employ not more than three persons who are qualified to provide some particular knowledge or skill required for the purposes of the business or undertaking; or

(b)is provided as part of a scheme to which contributions are made by a Minister of the Crown or the European Commission.

Restrictions on exercise of economic development powers

7.-(1) Subject to paragraphs (2) and (3), a relevant authority that is not a scheduled authority shall not, in the exercise of economic development powers, in any financial year provide financial assistance of any of the descriptions specified in section 33(3)(a) to (e) of the Act or by accepting or purchasing any bill of exchange within the meaning of the Bills of Exchange Act 1882(3)-

(a)to any person whose undertaking or business is conducted with a view to profit; or

(b)to any voluntary organisation for the purposes of enabling that organisation to make a grant or loan or give a guarantee to a person whose business or undertaking is conducted with a view to profit,

where the total value or amount of that assistance in that year exceeds £10,000.

(2) Nothing in paragraph (1) shall preclude an authority from providing such assistance as is mentioned in regulation 6(3).

(3) Nothing in paragraph (1) shall preclude a county council from doing anything if any scheduled authority in the county could do it.

Consultation with other authorities

8.-(1) There are specified for the purposes of section 34(1) of the Act the steps mentioned in paragraphs (2) and (3).

(2) The step mentioned in this paragraph is the provision, after 1st April 1991, by a relevant authority which is not a local education authority within the meaning of the Education Act 1944(4), to a person who is not a member, officer or other employee of the authority, of training or education services other than those included within a programme of such services which the local education authority for the area in which the services are to be provided has approved.

(3) The steps mentioned in this paragraph are-

(a)the acquisition by a relevant authority of any land outside its area; or

(b)the provision of financial assistance for the acquistion or improvement by any other person of any such land, or the acquisition or improvement of plant or machinery in, on or under, any such land,

otherwise than after consultation with such authority for the area in which the land in question is situated as is mentioned in the Table below.

Loans

9.-(1) Where a relevant authority in the exercise of economic development powers provides financial assistance in the form of a loan and the rate of interest in respect of that loan is more favourable than that reasonably obtainable on the open market, the accounts of that authority for each financial year in which an amount of principal is outstanding as respects any such loan, shall include a separate account of-

(a)the amount of any such loan;

(b)the difference between the amount of interest payable in that year in respect of that loan and the amount which would have been payable in that year if interest on that loan had been payable at the rate prevailing in the market for a loan of that nature.

(2) A copy of a statement of the account required to be kept in accordance with paragraph (1) shall be deposited with the proper officer of the authority at the time that a statement of the authority's accounts is published in accordance with regulations under section 23 of the Local Government Finance Act 1982(5).

Regulation 2(1)

SCHEDULE 1SCHEDULED AUTHORITIES

In the county of Avon

Bristol City Council

Woodspring District Council

In the county of Cambridgeshire

East Cambridgeshire District Council

Fenland District Council

Huntingdonshire District Council

In the county of Cheshire

Chester City Council

Congleton Borough Council

Crewe and Nantwich Borough Council

Ellesmere Port and Neston Borough Council

Halton Borough Council

Macclesfield Borough Council

Vale Royal Borough Council

Warrington Borough Council

In the county of Cleveland

Hartlepool Borough Council

Langbaurgh-on-Tees Borough Council

Middlesbrough Borough Council

Stockton-on-Tees Borough Council

In the county of Cornwall

Caradon District Council

Carrick District Council

Kerrier District Council

North Cornwall District Council

Penwith District Council

Restormel District Council

In the county of Cumbria

Allerdale District Council

Barrow-in-Furness Borough Council

Carlisle City Council

Copeland Borough Council

Eden District Council

South Lakeland District Council

In the county of Derbyshire

Amber Valley Borough Council

Bolsover District Council

Chesterfield Borough Council

Derby City Council

Derbyshire Dales District Council

Erewash Borough Council

High Peak Borough Council

North East Derbyshire District Council

South Derbyshire District Council

In the county of Devon

East Devon District Council

Exeter City Council

Mid-Devon District Council

North Devon District Council

Plymouth City Council

South Hams District Council

Teignbridge District Council

Torbay Borough Council

Torridge District Council

West Devon Borough Council

In the county of Dorset

West Dorset District Council

In the county of Durham

Chester-le-Street District Council

Darlington Borough Council

Derwentside District Council

Durham City Council

Easington District Council

Sedgefield District Council

Teesdale District Council

Wear Valley District Council

In the county of East Sussex

Rother District Council

In the county of Essex

Tendring District Council

In the county of Gloucestershire

Forest of Dean District Council

In Greater London

The council of the-

London Borough of Brent

London Borough of Ealing

London Borough of Greenwich

London Borough of Hackney

London Borough of Hammersmith and Fulham

London Borough of Haringey

London Borough of Islington

Royal Borough of Kensington and Chelsea

London Borough of Lambeth

London Borough of Lewisham

London Borough of Newham

London Borough of Southwark

London Borough of Tower Hamlets

London Borough of Wandsworth

In the county of Greater Manchester

Bolton Borough Council

Bury Borough Council

Manchester City Council

Oldham Borough Council

Rochdale Borough Council

Salford City Council

Stockport Borough Council

Tameside Borough Council

Trafford Borough Council

Wigan Borough Council

In the county of Hereford and Worcester

Bromsgrove District Council

Hereford City Council

Leominster District Council

Malvern Hills District Council

Redditch Borough Council

South Herefordshire District Council

Worcester City Council

Wychavon District Council

Wyre Forest District Council

In the county of Humberside

Boothferry Borough Council

Cleethorpes Borough Council

East Yorkshire Borough of Beverley Borough Council

East Yorkshire Borough Council

Glanford Borough Council

Great Grimsby Borough Council

Holderness Borough Council

Kingston upon Hull City Council

Scunthorpe Borough Council

In the county of Isle of Wight

Medina Borough Council

South Wight Borough Council

In the Isles of Scilly

The Council of the Isles of Scilly

In the county of Kent

Ashford Borough Council

Shepway District Council

Thanet District Council

In the county of Lancashire

Blackburn Borough Council

Blackpool Borough Council

Burnley Borough Council

Chorley Borough Council

Fylde Borough Council

Hyndburn Borough Council

Lancaster City Council

Pendle Borough Council

Preston Borough Council

Ribble Valley Borough Council

Rossendale Borough Council

South Ribble Borough Council

West Lancashire District Council

Wyre Borough Council

In the county of Leicestershire

Blaby District Council

Harborough District Council

Hinckley and Bosworth Borough Council

Leicester City Council

North West Leicestershire District Council

Rutland District Council

In the county of Lincolnshire

Boston Borough Council

East Lindsey District Council

Lincoln City Council

North Kesteven District Council

South Holland District Council

South Kesteven District Council

West Lindsey District Council

In the county of Merseyside

Knowsley Borough Council

Liverpool City Council

St. Helens Borough Council

Sefton Borough Council

Wirral Borough Council

In the county of Norfolk

Breckland District Council

Broadland District Council

Great Yarmouth Borough Council

King's Lynn and West Norfolk Borough Council

North Norfolk District Council

In the county of Northamptonshire

Corby District Council

East Northamptonshire District Council

In the county of Northumberland

Alnwick District Council

Berwick-upon-Tweed Borough Council

Blyth Valley Borough Council

Castle Morpeth Borough Council

Tynedale District Council

Wansbeck District Council

In the county of North Yorkshire

Craven District Council

Hambleton District Council

Harrogate Borough Council

York City Council

Richmondshire District Council

Ryedale District Council

Scarborough Borough Council

Selby District Council

In the county of Nottinghamshire

Ashfield District Council

Bassetlaw District Council

Broxtowe Borough Council

Gedling Borough Council

Mansfield District Council

Newark and Sherwood District Council

Nottingham City Council

Rushcliffe Borough Council

In the county of Shropshire

Bridgnorth District Council

North Shropshire District Council

Oswestry Borough Council

Shrewsbury and Atcham Borough Council

South Shropshire District Council

The Wrekin District Council

In the county of Somerset

Sedgemoor District Council

South Somerset District Council

Taunton Deane Borough Council

West Somerset District Council

In the county of South Yorkshire

Barnsley Borough Council

Doncaster Borough Council

Rotherham Borough Council

Sheffield City Council

In the county of Staffordshire

Cannock Chase District Council

East Staffordshire District Council

Lichfield District Council

Newcastle-under-Lyme District Council

South Staffordshire District Council

Stafford Borough Council

Staffordshire Moorlands District Council

Stoke-on-Trent City Council

Tamworth Borough Council

In the county of Suffolk

Mid-Suffolk District Council

Suffolk Coastal District Council

Waveney District Council

In the county of Tyne and Wear

Gateshead Metropolitan Borough Council

Newcastle upon Tyne City Council

North Tyneside Borough Council

South Tyneside Borough Council

Sunderland Borough Council

In the county of Warwickshire

North Warwickshire Borough Council

Nuneaton and Bedworth Borough Council

Rugby Borough Council

Stratford-on-Avon District Council

Warwick District Council

In the county of West Midlands

Birmingham City Council

Coventry City Council

Dudley Borough Council

Sandwell Borough Council

Solihull Borough Council

Walsall Borough Council

Wolverhampton Borough Council

In the county of West Yorkshire

Bradford City Council

Calderdale Borough Council

Kirklees Borough Council

Leeds City Council

Wakefield City Council

Regulation 5(1)

SCHEDULE 2EXCLUDED ACTIVITIES

For the purposes of regulation 5(1) of these Regulations, the steps are-

(a)the carrying out of, or participation in-

(i)deposit-taking business within the meaning of the Banking Act 1987(6);

(ii)investment business within the meaning of the Financial Services Act 1986(7);

(iii)insurance business that is long term business or general business within the meaning of the Insurance Companies Act 1982(8);

(iv)insurance broking in relation to any matter in respect of which no relevant authority has an insurable interest;

(v)estate agency work within the meaning of the Estate Agents Act 1979(9);

(b)the audit of, or report on, a company's accounts pursuant to sections 236 and 237 of the Companies Act 1985(10);

(c)the preparation for reward of any document which effects or is instrumental in effecting the transfer of land in respect of which no relevant authority has an interest;

(d)the giving for reward of any opinion in writing as to the value of any land in which no relevant authority has an interest;

(e)the acquisition of an interest in any undertaking which publishes any matter by television, radio transmission or by means of any newspaper as defined in section 1 of the Newspaper Libel and Registration Act 1881(11); and the publication of any newspaper as so defined;

(f)the purchase of goods for resale or hiring;

(g)the sale or hiring out of goods as the agent of another person;

(h)the acquisition of services for supply to others;

(i)he supply of services as the agent of another person;

(j)the purchase of goods or the employment of persons for the purpose of the manufacture of goods.

Explanatory Note

(This note is not part of the Regulations)

These Regulations impose restrictions on the exercise by relevant authorities in England and Wales (London borough councils, county councils, district councils, the Common Council of the City of London and the Council of the Isles of Scilly) of powers to promote the economic development of their areas.

The Regulations have effect on and after 1st April 1990 where the power is that conferred by section 33(1) of the Local Government and Housing Act 1989. In other cases they have effect from 1st July 1990 except in relation to assistance provided pursuant to arrangements concluded before 1st April 1990 (regulation 3).

Regulation 4 provides that a relevant authority is to be treated as providing financial assistance under section 33(3)(f) of the 1989 Act if it provides or agrees to provide a person with property, services or other financial benefit for consideration less than the best reasonably obtainable.

Regulation 5 and Schedule 2 specify activities which may not be carried out by a relevant authority in the exercise of its economic development powers.

Regulations 6 and 7 prohibit the provision, in the exercise of economic development powers, of certain kinds of assistance. The prohibitions contained in regulation 7 do not apply to the authorities listed in Schedule 1, district and county councils in Wales and, to a limited extent, county councils in England.

Regulation 8 imposes on a relevant authority which proposes to provide training or education services as part of a programme, a requirement that the local education authority shall have approved that programme. In relation to assistance of certain kinds the regulation imposes a requirement to consult other authorities.

Regulation 9 requires a relevant authority which makes a loan at a rate of interest that is less than the market rate to keep a separate account showing the difference between the market rate and the rate actually charged.