Local Government Finance

HC Deb 04 July 1996 vol 280 cc500-1W

Mr. Gordon Prentice

To ask the Secretary of State for the Environment what fiduciary duties are laid on local authorities in respect of decisions concerning the investment of sums paid into an authority's collection fund which are not immediately required for making payments or transfers. [35315]

Sir Paul Beresford

Local authorities are under a general fiduciary duty to their taxpayers to act prudently in investing funds. They should also have regard to the capital finance regulations and professional treasury management codes, as appropriate. In addition, the investment of collection fund money is subject to specific regulations made under section 89(5) of the Local Government Finance Act 1988. The following regulations made under the section are still in force: the Local Authorities (Funds) (England) Regulations 1992 (SI 1992/2428).