Q&As

What is the statutory power that gives the government and local authorities the power to administer grant funding schemes such as the Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund schemes introduced in response to coronavirus (COVID-19)?

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Published on LexisPSL on 21/04/2020

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • What is the statutory power that gives the government and local authorities the power to administer grant funding schemes such as the Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund schemes introduced in response to coronavirus (COVID-19)?

What is the statutory power that gives the government and local authorities the power to administer grant funding schemes such as the Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund schemes introduced in response to coronavirus (COVID-19)?

Section 31 of the Local Government Act 2003 (LGA 2003) is a well-established statutory means by which central government may disburse funds to local authorities for them to provide grants for a specified purpose while retaining control of:

  1. the recipients

  2. the quantum of the grants, and

  3. the terms and conditions upon which the grants can be provided

LGA 2003, s 31(1) provides that ‘A Minister of the Crown may pay a grant to a local authority in England towards expenditure incurred or to be incurred by it’. A minister of the Crown is defined for these purposes as the holder of an office in Her Majesty’s government in the UK, and includes the Treasury, the Board of Trade and the Defence Council (see section 8(1) of the Ministers of the Crown Act

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