(1)    In section 115 of the Local Government Finance Act 1988 (c 41) (which sets out the consequences for a relevant authority of the receipt of a report made by its chief finance officer under section 114(3)), in subsection (6) (which prevents an authority that has received such a report from entering into certain agreements during the prohibition period), at the end there is inserted “unless the chief finance officer of the authority authorises it to do so”.

(2)    After that subsection there is inserted—

“(6A)    The chief finance officer may only give authority for the purposes of subsection (6) above if he considers that the agreement concerned is likely to—

(a)    prevent the situation that led him to make the report from getting worse,

(b)    improve the situation, or

(c)    prevent the situation from recurring.

(6B)    Authority for the purposes of subsection (6) above shall—

(a)    be in writing,

(b)    identify the ground on which it is given, and

(c)    explain the chief finance officer's reasons for thinking that the ground applies.”

(3)    In subsection (14) of that section (which defines certain terms used in that section), after the definition of “the Assembly”, there is inserted—

““chief finance officer” has the same meaning as in section 114;”.