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

The Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 contain provisions for capital finance and accounting controls, including the rules on the use of capital receipts and what is to be treated as capital expenditure. They also modify the application of some financial accounting standards to prevent adverse impacts on authorities’ revenue resources.

We are consulting on  proposed amendments that would:

• Relax current constraints and put local authorities in Wales on an equivalent footing to those in England as regards loan capital transactions, specific share capital transactions and bonds
• introduce a new regulation to ensure that the use of securitisations is on an equal footing with borrowing and other forms of credit
• extend  to April 2020, local authorities’ ability to not charge back-payments for equal pay claims to their revenues until the payments are due

This consultation also seeks views on the impact on local authorities in Wales of the proposed application of International Financial Reporting Standard 16 from January 2019.