The Local Authorities (Capital Finance and Accounting) (Wales) (Amendments relating to Minimum Revenue Provision) Regulations 2026

Made: 19 January 2026

Coming into force: 13 February 2026

The Welsh Ministers make the following Regulations in exercise of the powers conferred on them by sections 21(1) and 123(1)(a) and (2) of the Local Government Act 2003[^f00001].

Title and coming into force

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The title of these Regulations is the Local Authorities (Capital Finance and Accounting) (Wales) (Amendments relating to Minimum Revenue Provision) Regulations 2026 and they come into force on 13 February 2026.

Amendment of the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003

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• (1) The Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003[^f00002] are amended as follows.

• (2) After regulation 21(1) insert—

(1A) But during the financial year beginning with 1 April 2026— (a) paragraph (1) does not apply in relation to county councils and county borough councils; (b) county councils and county borough councils may, in respect of the financing of capital expenditure incurred in that financial year or in any financial year prior to that year, charge the following to a revenue account— (i) minimum revenue provision; and (ii) any amount in addition to the minimum revenue provision.

• (3) In regulation 22—

• (a) the existing provision becomes paragraph (1);

• (b) after that paragraph insert—

(2) But during the financial year beginning with 1 April 2026— (a) paragraph (1) does not apply in relation to a county council or county borough council; (b) where a county council or county borough council makes minimum revenue provision under regulation 21(1A)(b)(i), it must calculate an amount of minimum revenue provision which it considers to be prudent.

Signed

Jayne Bryant — Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers — 19 January 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 (“the 2003 Regulations”).

Regulations 21 and 22 of the 2003 Regulations provide that, for each financial year, local authorities must charge a prudent amount to a revenue account to repay debt incurred from capital expenditure. This amount is the minimum revenue provision (“MRP”).

These Regulations amend regulations 21 and 22 of the 2003 Regulations to provide that, during the financial year beginning with 1 April 2026, county councils and county borough councils have discretion to make MRP but are not required to do so. The amendments provide that, where such councils make MRP, they must calculate an amount they consider prudent.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from Local Government Finance Policy and Sustainability Division, Welsh Government, Cathays Park, Cardiff CF10 3NQ and is published on www.gov.wales.

Footnotes

[^f00001]: 2003 c. 26. The powers in section 21(1) of that Act are vested in the Welsh Ministers in so far as they apply to Wales by virtue of section 24 of that Act. Section 24 was amended by section 238(3) of the Local Government and Public Involvement in Health Act 2007 (c. 28) and paragraph 52 of Schedule 12 to the Local Audit and Accountability Act 2014 (c. 2).

[^f00002]: S.I. 2003/3239 (W. 319); relevant amending instruments are S.I. 2004/1010 (W. 107) and 2008/588 (W. 59).