Which of the following is NOT mentioned as a source of capital for local authorities?

Local authorities typically have several established sources of capital funding that are crucial for financing their operations and projects. Among these sources, capital grants, private sector investment, and loans from the European Union are commonly acknowledged avenues for acquiring capital.

Local taxes, however, do not fit the category of capital; they are considered operational revenues rather than distinct sources of capital funding. While local authorities do rely on local taxes for their day-to-day expenditures and to fund services, this revenue model does not directly contribute to capital projects or investments in the same way capital grants or investments from private entities do. Therefore, the option that does not align with the sources of capital for local authorities is indeed local taxes. This distinction emphasizes the specific role of capital in the budgeting and funding strategies of local authorities, focusing on investment rather than operational income.