ARRANGEMENT OF CLAUSES.

Clause.

1. Powers of county and large borough or urban district councils to trade or hold land.

2. Sanction of council to any proposed undertaking.

3.

4.

Borrowing powers.

Board of Trade to sanction undertakings without the area of the council.

5. Combination of councils for purposes of Act. 6. Disposal of undertaking.

7.

8.

9.

10.

Powers of smaller borough or district and parish councils.

Profits from land and undertakings to go to the
common fund. Common fund not to be used
in lieu of rates.

Accounts and application of common fund.
Definitions.

11. Saving.

12. Short title.

A

BILL

то

5

Extend the Powers of Local Authorities in matters of Finance and Municipal Trading.

E it enacted by the King's most Excellent Majesty, A.D. 1923. by and with the advice and consent of the Lords

Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

borough or

1. (1) Save as in this Act provided, it shall be Powers of lawful for the council of every county and of every county and borough and urban district, having a population according large to the last published census for the time being of twenty urban 10 thousand or over, including the city of London, and district every metropolitan borough (herein referred to as the councils to council), to establish or purchase or carry on any busi- trade or ness or undertaking within their area having for its hold land. purpose either the acquisition of gain or the promotion 15 of commerce, art, science, recreation, charity, or any other object which might lawfully be established or carried on by a company, limited or unlimited, or association duly incorporated and duly acting under the provisions of the Companies (Consolidation) Act, 1908.

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(2) Save as in this Act provided, a council may purchase or hold land within their area in such quantities and for such purposes as they think fit.

2. No council shall establish or purchase any land, Sanction of business or undertaking which they would not, save for council to 25 this Act, have been otherwise entitled to establish or any propurchase, unless it has been decided so to do by a resolution of a majority of the members of the council in

posed undertaking.

A.D. 1923. attendance at a meeting of the council, of which due notice has been given in the manner provided in section four of the Borough Funds Act, 1872, for the purposes of that Act.

Borrowing powers.

Board of
Trade to

sanction

under

takings

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3. A council may, for the purpose of defraying any costs, charges, or expenses incurred or to be incurred by them in the establishment, purchase, or carrying on of any land, business, or undertaking under this Act, from time to time borrow, in the case of a county council, as for the purposes of the Local Government Act, 1888, 10 and, in the case of a council of a county borough, borough, or urban district, as for the purposes of the Public Health Act, 1875. Provided that the sanction of the Board of Trade shall be substituted for the sanction of the Local Government Board in those Acts, and when the total 15 debt of any council, after deducting the amount of any sinking fund, exceeds, or if the proposed loan is borrowed, will exceed the amount of one quarter of the annual rateable value of the rateable property in the area of the council, ascertained according to the standard or basis 20 for the rates of the council, the amount shall not be borrowed, except in pursuance of a Provisional Order made by the Board of Trade and confirmed by Parliament.

4. The Board of Trade may, by Provisional Order, authorise any council, under such conditions as the 25 Board of Trade may prescribe, to establish or purchase or carry on any business or undertaking, or to purchase without the or hold land outside the area of any such council when, in the opinion of the Board of Trade, it is necessary or desirable in the interests of any business or under- 30 taking carried on, or to be carried on, by a council within their area that they should establish or purchase and carry on a business or undertaking or purchase or hold land without their area.

area of the council.

Combination of

5. Any two or more councils may, under such 35 conditions as may be mutually agreed upon, jointly councils for establish, purchase, or carry on a business or undertaking or purchase or hold land under this Act.

purposes

of Act.

Disposal of undertaking.

6. A council shall not, without the sanction of the Board of Trade, sell or lease for a longer period than 40 seven years, any land, business, or undertaking established or purchased or carried on under this Act.