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This is an updated direction and statutory guidance to extend the freedom for local authorities to use eligible capital receipts to fund the revenue costs of projects that deliver ongoing savings or improved efficiency. This direction revokes and replaces the .

Capital receipts are the money councils receive from asset sales, the use of which is normally restricted to funding other capital expenditure or paying off debt. The receipts cannot usually be used to fund revenue costs.

The direction extends the flexible use of capital receipts to 2030. Since 2016, this direction has allowed local authorities to use the proceeds from asset sales to fund the revenue costs of projects that result in ongoing cost savings or improved efficiency.

This direction also removes the restriction with respect to redundancy costs, imposed from April 2022, that limits the use of the flexibility to statutory redundancy costs only. This will support authorities in taking forward transformation and invest-to-save projects.

This direction includes the requirement to submit the planned use of the flexibility in advance of use for each financial year. This condition can be met by sending the authority鈥檚 own strategy documents provided they contain the detail asked for in the direction. This is not an approval process, the information must be sent to ensure transparency and allow proper monitoring by central government.

Submissions of this information must be made by the DELTA system () and authorities must make sure they are able to do so. Queries on use of the DELTA system should be sent to [email protected]. In the event of technical difficulties, the information may be sent by email to [email protected].

For your reference, you can also consider the and , which may be needed for audit purposes.